Contracts Project on Novation
CONTRACTS PROJECT
ON
NOVATION
INDEX
INTRODUCTION ………………………………………. 4
DEFINITION IN INDIAN CONTRACT ACT …… 5
ELEMENTS OF VALID NOVATION …………….. 5
KINDS OF NOVATION ……………………………… 5
CHANGE OF PARTIES ………………………………. 6
SUBSTITUTION OF NEW AGREEMENT …….. 7
NOVATION AGREEMENT IN BUSINESS ……. 8
MATERIAL ALTERATIONS ……………………….. 10
ASSIGNMENT VS NOVATION UNDER ENGLISH LAW…………………………………………................ 11
STATUTORY SUBSTITUTION OF PARTIES…. 12
NOVATION UNDER INDIAN STAMP PAD
ACT………………………………………………………… 13
CANADA’S SUPREME COURT CASE ………… 14
CONTINUING CONTRACTS …………………….. 15
ANALYSIS.................................................. 16
CONCLUSION…………………………………………. 16
BIBLIORAPHY…………………………………………. 17
INTRODUCTION:
NOVATION:
When parties to the contract agrees to substitute the existing contract with a new contract that is called Novation. When, by an agreement between the parties to a contract, a new contract replaces the existing one, the already existing contract is thereby discharged, and in its place the obligation of the parties in respect of the new contract comes into existence. It consists in the suppression of one contract by fresh contract or new contract may arise between one of them and a third person.
“Novation” is defined by the Black’s Law Dictionary, 8th Edn., 2004 as “The act of substituting for an old obligation a new one that either replaces an existing obligation with a new obligation or replaces an original party with a new party.”
In Wharton’s Law Lexicon, 15th Edition, 2009 at p.1174, the meaning of the term ‘Novation’ is stated as “the substitution, with the creditor’s consent, of a new debtor for an old one.”
In Nolo’s Plain-English Law Dictionary: “The voluntary substitution of a new contract for an old one, usually to change the parties, duties, or payment terms.”
In P.S. Atiyah’s An Introduction to the Law of Contract, 3rd
ON
NOVATION
INDEX
INTRODUCTION ………………………………………. 4
DEFINITION IN INDIAN CONTRACT ACT …… 5
ELEMENTS OF VALID NOVATION …………….. 5
KINDS OF NOVATION ……………………………… 5
CHANGE OF PARTIES ………………………………. 6
SUBSTITUTION OF NEW AGREEMENT …….. 7
NOVATION AGREEMENT IN BUSINESS ……. 8
MATERIAL ALTERATIONS ……………………….. 10
ASSIGNMENT VS NOVATION UNDER ENGLISH LAW…………………………………………................ 11
STATUTORY SUBSTITUTION OF PARTIES…. 12
NOVATION UNDER INDIAN STAMP PAD
ACT………………………………………………………… 13
CANADA’S SUPREME COURT CASE ………… 14
CONTINUING CONTRACTS …………………….. 15
ANALYSIS.................................................. 16
CONCLUSION…………………………………………. 16
BIBLIORAPHY…………………………………………. 17
INTRODUCTION:
NOVATION:
When parties to the contract agrees to substitute the existing contract with a new contract that is called Novation. When, by an agreement between the parties to a contract, a new contract replaces the existing one, the already existing contract is thereby discharged, and in its place the obligation of the parties in respect of the new contract comes into existence. It consists in the suppression of one contract by fresh contract or new contract may arise between one of them and a third person.
“Novation” is defined by the Black’s Law Dictionary, 8th Edn., 2004 as “The act of substituting for an old obligation a new one that either replaces an existing obligation with a new obligation or replaces an original party with a new party.”
In Wharton’s Law Lexicon, 15th Edition, 2009 at p.1174, the meaning of the term ‘Novation’ is stated as “the substitution, with the creditor’s consent, of a new debtor for an old one.”
In Nolo’s Plain-English Law Dictionary: “The voluntary substitution of a new contract for an old one, usually to change the parties, duties, or payment terms.”
In P.S. Atiyah’s An Introduction to the Law of Contract, 3rd
Bibliography: BOOK SOURCES: AVATAR SINGH, “CONTRACT & SPECIFIC RELIEF”, 10TH EDITION, EASTERN BOOK COMPANY, LUCKNOW, 2010. G.C.V. SUBBA RAO, “LAW OF CONTRACTS”, 10TH EDITION, 2009-2010. R.K BANGIA, “CONTRACTS-1”, 6TH EDITION, ALLAHABAD LAW AGENCY, 2009. DR.V.KRISHNAMACHARI, “TREATIES ON LAW OF CONTRACT”, 6TH EDITION, S.GOGIA & COMPANY, 1997. V KESAVA RAO, “CONTRACTS 1 CASES AND MATERIALS”, LEXIS NEXIS, 2004. BARE ACTS: INDIAN CONTRACT ACT 1872, PROFFESIONAL BOOK PUBLISHERS, 2011.