Novation means the replacement of an old contract with a new one. This may play out where a bank enters into an agreement with another bank so as to off-set a customer's indebtedness to the other bank in order to win the customer over to its own side. What this means is that a new contract now exists between the two banks while the individual customer is no longer a party to it.
Join the community and submit your own definition.
Join the Community!

+ Define a Word