Q&As

Is there any benefit to be gained by executing a novation agreement as a deed?

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Published by a LexisNexis Commercial expert
Published on: 21 September 2018
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There are two key features of deeds that distinguish them from simple contracts:

  1. •

    deeds are enforceable irrespective of the lack of consideration (in contrast with simple contracts, which are formed pursuant to the contract law principle that requires valuable consideration to be given for the promises being made), and

  2. •

    the Limitation period for claims made in connection with deeds is 12 years (compared

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Jurisdiction(s):
United Kingdom
Key definition:
Novation definition
What does Novation mean?

Novation is the method by which the parties to an existing contract 'transfer' the rights and obligations of that contract to a third party. 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. A novation requires consideration and consent.

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