Core contract language · Core

Novation

Also called: contract novation

ELI5

Substitution of a new party or agreement with required consent, releasing the original party as applicable.

Used in conversation

“The draft mentions novation, but the scope and jurisdiction are still unclear.”

Pitch context

You will see “Novation” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches core contract language.

Why it matters: In core contract language, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 6

Direct term-level sources and supporting source families.

OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
U.S. Acquisition.gov — Federal Acquisition Regulation Part 15 — Contracting by NegotiationDirect source · primary · checked 2026-08-16
U.S. Small Business Administration — Write your business planSupporting source family · primary · checked 2026-08-16
IFRS Foundation — IFRS GlossarySupporting source family · primary · checked 2026-08-16
U.S. Securities and Exchange Commission — EDGAR and filing resourcesSupporting source family · primary · checked 2026-08-16
National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16