novation
noun
no·va·tion nō-ˈvā-shən 
: the substitution of a new legal obligation for an old one
Example Sentences
Recent Examples on the Web The contract novation will be subject to the consent of FSA. 
Adam S. Minsky, Forbes, 28 Sep. 2021 That new student loan servicer — which collects student loan payments and manages customer service for student loans — may be a company called Maximus, with whom Navient signed a novation agreement to transfer servicing. Zack Friedman, Forbes, 29 Sep. 2021 Under the rules in six large EU member states analysed by the International Swaps and Derivatives Association (ISDA), a global trade body, novations and compressions would be considered regulated activities. The Economist, 12 Oct. 2017
Adam S. Minsky, Forbes, 28 Sep. 2021 That new student loan servicer — which collects student loan payments and manages customer service for student loans — may be a company called Maximus, with whom Navient signed a novation agreement to transfer servicing. Zack Friedman, Forbes, 29 Sep. 2021 Under the rules in six large EU member states analysed by the International Swaps and Derivatives Association (ISDA), a global trade body, novations and compressions would be considered regulated activities. The Economist, 12 Oct. 2017 Word History
Etymology
borrowed from Latin novātiōn-, novātiō, from novāre "to make new, renew, replace an existing legal obligation with a new one" (derivative of novus "new") + -tiōn-, -tiō, suffix of verbal action — more at new entry 1
First Known Use
1682, in the meaning defined above
Legal Definition
novation
noun
no·va·tion nō-ˈvā-shən
: the substitution by mutual agreement of one obligation for another with or without a change of parties and with the intent to extinguish the old obligation
no evidence that the contract was assigned, or that there was a novation Boccardi v. Horn Constr. Corp., 612 N.Y.S.2d 180 (1994)
compare accord sense 3, substituted contract at contract Boccardi v. Horn Constr. Corp., 612 N.Y.S.2d 180 (1994)