Simple, effective novation agreement for use where one
party transfers its rights and obligations under a contract to
another party. Whether you are selling a business,
transferring a construction contract or any other
responsibilities under any contract, this template novation
agreement will suit
About this document
This is a deed of novation for use where one party transfers its rights and obligations under a contract to another party. Thus, a new party is substituted for one of the original parties. It is a simple, yet comprehensive agreement, drawn as a deed simply because at law, a contract requires consideration (something in return for the novation). As there may not be in your case, a deed allows the novation to go ahead without. The consent of all three parties - the transferee, the transferor and the other contracting party - is required to effect the novation.
A novation usually happens when the seller of a business transfers the contracts with his customers to the buyer. It is also common where a substitute employer, for example, a design and build contractor is taking over the employment of a contractor or consultant. He will assume the employer's obligations under the building contract or consultancy agreement. There are of course many uses for this document – it has been drawn to fit all. If your situation is very specific, it may require small editing. Of course you can instruct us to do this for you if required.
As drawn, the contracts are assigned and the buyer takes over the seller’s responsibilities for performing the contracts of the customers, and with the agreement of the customers.
Application
and features
Suitable for sale of goods or adaptable for services
Drawn as an agreement between all parties, therefore ensures a legal transfer
Includes letter to customers (where the third party is customers) if required
Comprehensive provisions provide ideas for you to mould
Real law in plain English
Contents
Details of the parties
Hold harmless
The novation
Existing claims
Costs
Letter to the other party providing them with detail of the novation and confirming that their legal position remains unchanged
Other usual legal provisions in plain English
Word
Count (approximate):
Document: 1570
words
Explanatory notes:
300
words
Draftsman
This document is drawn and maintained by Net Lawman. It is real law in plain English.
