Q&As

Can a deed of novation have only the outgoing and incoming parties as executing parties to it, if, for example, consent has been obtained from the remaining party in the form of, say, email correspondence?

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Published on LexisPSL on 06/07/2016

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Can a deed of novation have only the outgoing and incoming parties as executing parties to it, if, for example, consent has been obtained from the remaining party in the form of, say, email correspondence?

Novation is not strictly a transfer of rights and obligations but a discharge of the rights and obligations between contracting parties and a recreation of them with a third party (replacing an original contracting party) and one (or more) of the contracting parties to the original contract. The requirements of novation are:

  1. consideration, and

  2. consent

A novation can be distinguished from an assignment which transfers the benefits of a party to another party without extinguishing the original contract which remains

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