Contract novation wording
A novation clause will usually provide that a party cannot novate a contract without the prior written consent of existing parties. Including a novation clause in an agreement is designed to prevent oral consent to a novation, or consent being inferred from a continuing party’s conduct. In the case of a name change, a novation agreement might be needed in order to make a new contract with the newly named business. Assignment is a transfer of some right or duty to someone else. For example, some employment contracts state that the duties of the employee can't be transferred to someone else. A loan novation agreement is a contract between parties in which one of the parties is replaced with another, or one of the obligations under the contract is replaced with another requirement. This is the exact definition of novation. It is similar to the concept of an assignment; however, there are some key differences between the two.