Definition of Novation

to enter into a new agreement or contract with the same or similar terms when a previous agreement has ended or fallen through

Examples of Novation in a sentence

When his contract with the construction company for his roof was up, he made a novation to a less expensive company to finish the rest of the work.  🔊

When the bride’s wedding designer went out of business before completing her dress, she made a novation to another designer for a similar cost.  🔊

As the engineer’s one year contract came to an end, he made a novation with a different company for a full time position instead of renewing.  🔊

After her publishing contract fell through, the writer made a novation with a smaller company for the same advance.  🔊

After the wedding photographer finished her contract with the happy couple, she made a second novation under new terms for their honeymoon photos.  🔊

Other words in the Business category:

Most Searched Words (with Video)