novation n[Late Latin novatio renewal, legal novation, from Latin novare to make new, from novus new]
: the substitution by mutual agreement of one obligation for another with or without a change of parties and with the intent to extinguish the old obligation [no evidence that the contract was assigned, or that there was a "Boccardi v. Horn Constr. Corp. , 612 N.Y.S.2d 180 (1994)"] compare accord substituted contract at contract
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.