This Q&A assumes that the contract proposed to be novated, and the novation contract itself, are business to business generic supply contracts, and are not subject to any specific sector or industry regulation. A novation is subject to the usual rules on contract formation, like any other contract. A novation therefore requires all parties to consent to it and to agree to the terms upon which it is made, (which will include any commercial terms as to consideration or payment of fees). See Practice Note: Novation—why and how to novate a contract, section ‘Novation of a contract—consideration and consent required’. As a novation involves both the transfer of the benefit and the burden of an underlying contract, the terms of that underlying