nounDownload🔗ShareReplacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.Examples:"The complex swap agreement was simplified through a series of novations, where the original counterparty was replaced by a more secure clearinghouse for each participant. "businessfinancelaweconomyChat with AIVocabulary GamePractice Reading
nounDownload🔗ShareA new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.Examples:"The parents made a novation with the school, replacing the original agreement for their son's tutoring with a new one focused on improving his math skills. "lawbusinessfinancecommerceChat with AIVocabulary GamePractice Reading