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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Rucha rajesh shingvekar
A novation is an agreement made between two contracting parties to allow for the substitution of a new party for an existing one. Both original contracting parties must agree to the novation. For example, a person as a seller agrees with the buyer to pay the price to a third party, as new creditor of its debt. In this case, the debtor will be freed by the initial creditor, being bound to the new one, as effect of novation.