1. the substitution of a new contract, debt, or obligation for an existing one
Usage: legal
2. the act of introducing something new or making changes
Usage: formal

Examples

• The bank agreed to a novation of the loan terms.
• The novation replaced the original contract with updated conditions.
• Both parties must consent to the novation for it to be legally binding.
• The company’s novation of its business model proved successful.
• Legal novation requires the agreement of all involved parties.
• The debt novation transferred the obligation to a new debtor.