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The term “novation” is also used in derivatives markets. It refers to the agreement where by which security holders transfer their securities to a clearing house that then sells the transferred securities to buyers. The clearing house acts as an intermediary in the transaction and assumes the counterparty risk associated with the default of part of its obligations. These are indeed sales or transfer contracts under which certain rights are held by the seller (e.g. .B. for the purchase of the awarded work or the use of the work in specific places only). The parties to a novation will generally be the same parties as those who would be parties to a mandate. But in a novation, by definition, there are at least three parts; three parts that, most likely, are not related and each of them has its own interest. So you can be sure that the agreement has not been manipulated. A witness cannot fix that. So you don`t need an act. There are three ways to make a novation, and each one is different.

When consulting a customer, you must be aware of the conditions of a valid novation and the consequences for the incoming part and the outgoing novation part if a novation takes place, which can be avoided at the time of novation. A precedent: novation agreement – long form is provided. In real estate law, for example, there are novations when a tenant shouts a lease to another person. This new tenant is then responsible for paying the rent and is responsible for property damage. Novation is also common in the construction industry when a contractor entrusts a contract to another contractor, as long as he or she has the customer`s agreement. The novation criteria include acceptance of the new debtor by the debtor, assumption of responsibility by the new debtor and acceptance of the new contract by the former debtor as full performance of the old contract. Novation is not a unilateral contractual mechanism, but, in the new circumstances, it leaves room for negotiation on the new GTC. This is how we can read “the acceptance of the new contract as a complete execution of the old contract” in connection with the phenomenon of “mutual consent of the GTC”.

[4] When a contract is novice, the other (initial) party must remain in the same position as before the novation. Novation therefore requires the agreement of all three parties. While it is easy to obtain the agreement of the contemptuous and the purchaser, it may be more difficult to obtain the agreement of the other party of origin: the consequence of a novation is the termination of the initial contract and its replacement by a new contract that aims to benefit from and fulfill the same rights and obligations, but by different parties. the outgoing party being exempted from any future debt of the contract. . . .