Novation

Novation, in contract law and business law,[1] is the act of –

  1. replacing an obligation to perform with another obligation; or
  2. adding an obligation to perform; or
  3. replacing a party to an agreement with a new party.

In international law, novation is the acquisition of territory by a sovereign state through "the gradual transformation of a right in territorio alieno [in foreign territory] into full sovereignty without any formal and unequivocal instrument to that effect intervening".[2]

  1. ^ Richard Heckinger and David Mengle. "Derivatives Overview" (PDF). Chicago Fed.
  2. ^ John P. Grant and J. Craig Barker (eds.), "Novation", in Perry & Grant Encyclopaedic Dictionary of International Law, 3rd ed. (Oxford University Press, 2009).