41.4 Novation

If both rights and obligations are transferred with the consent of the other party, there will be, in effect, a novation of the contract. Novations require the agreement of all three parties: the transferor, the transferee and the other contracting party1. There would seem to be nothing to prevent the parties to a contract agreeing, as a term of the contract, that it will be possible to transfer rights and obligations under a contract to a third party in the future.

It is possible to novate only part of an agreement2. It is also possible for

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