Q&As

Can part of an original agreement (eg a schedule to the original agreement) be novated to the incoming party so that the outgoing party is released and discharged from all liabilities related to that schedule of the original agreement?

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Produced in partnership with XXIV Old Buildings
Published on LexisPSL on 11/04/2019

The following Commercial Q&A Produced in partnership with XXIV Old Buildings provides comprehensive and up to date legal information covering:

  • Can part of an original agreement (eg a schedule to the original agreement) be novated to the incoming party so that the outgoing party is released and discharged from all liabilities related to that schedule of the original agreement?

This Q&A addresses a scenario where only the schedule is novated and the rest of the original agreement is not novated (and remains an agreement between the original parties).

The essence of a novation is that it is a fresh agreement between the parties to the original agreement (A and B) and a third party (C) that C will replace one of the original parties (eg B) so that the agreement is now between A and C, with the result that B is completely released from its obligations under the original contract. Novation requires the agreement of A, B and C

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