Definition of 'Novation'
Novation can also be used in other business contexts, such as when a new tenant takes over a lease from an existing tenant. In this case, the original tenant is released from all liability under the lease agreement, and the new tenant becomes the sole party responsible for fulfilling the terms of the lease.
Novation is a complex legal concept, and it is important to consult with an attorney before entering into any novation agreement.
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