Posted by ESC on September 29, 2003
In Reply to: Novation novated (meaning or Spanish translation) posted by Mauricio Segura on September 29, 2003
: Does the word novate exist? Why is not in the dictionary yet the terms novated contract and novated lease are so commonly seen in business contexts?
: Can anyone give me light at to what they mean and if possible their possible equivanlent in Spanish, (or Italian or Portuguese or French)
: Thank you
From an online legal dictionary:
n. agreement of parties to a contract to substitute a new contract for the old one. It extinguishes (cancels) the old agreement. A novation is often used when the parties find that payments or performance cannot be made under the terms of the original agreement, or the debtor will be forced to default or go into bankruptcy unless the debt is restructured. While voluntary, a novation is often the only way any funds can be paid.
See also: accord and satisfaction