259. Effect of novation.

The introduction of a new party into a contract, either by substitution or by addition, is termed novation1. When a new party is substituted for the original party, the original party is, to an extent depending on the terms of the new contract, released from further performance of the original contract, and the new party will take the benefit of any period of limitation that has accrued to the advantage of the original party2. Where a new contractor is substituted for the original one and takes over the work on the terms of the original contract, he will be

Popular documents