A Deed of Novation is a relic from long ago when lawyers were even more inclined to cloak their knowledge in obscurity. One of the main purposes in using the deed format is that it provides the necessity for an unconnected witness to sign the document. So it is that much more difficult for one of the parties to say it was forged or signed a.. Deed of novation. by Practical Law Corporate. A deed for use when an incoming party will assume the rights, as well as the obligations and liabilities, of an outgoing party under a contract by way of novation.
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A novation requires the consent of all the parties to the original contract as well as the consent of the new party. 3 It is a tripartite agreement between the original parties and the new party. Consent of all the parties to enter into the agreement is therefore crucial. 4 A novation usually takes the form of a deed.. Novation is the process by which the original contract is extinguished and replaced with another, under which a third party takes up rights and obligations duplicating those of one of the parties to the original contract. This means that the original party transfers both the benefits and burdens under the contract.
