: to replace (an old obligation) by a new obligation.

What does it mean to novate a contract?

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.

How do you use the word novate?

Meaning of novate in English

to replace a contract (= a legal agreement) with a new contract: If you leave your present job, you can novate the car lease to your next employer, so the vehicle remains with you.