Direct answer
What does Novation mean?
A new agreement that substitutes a new party or obligation and releases the replaced party or obligation.
Exam cue: Look for consent and a clear release, not merely a transfer of duties.
What does it look like in a question?
New York example
A landlord agrees to replace the original tenant with a new tenant and release the original tenant.
Common exam trap
What should you not confuse it with?
Assignment alone does not automatically create a novation.
Related contracts and leases terms
AssignmentA transfer of a party's contractual rights or leasehold interest to another person, subject to the agreement and law.ConsiderationSomething of legal value exchanged as part of a contract.ContingencyA contract condition that must be satisfied or waived for a stated obligation to become final or continue.CounterofferA response that rejects an offer and proposes different terms.Executed contractA contract in which the parties have completed the promised performance.Executory contractA contract under which one or more material obligations remain to be performed.
Sources used1 reference with section locators
The curriculum citation confirms exam scope. Definition and rule citations support the explanation itself. Links and locators were checked on August 26, 2026.
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