Novation - Affirmative Defense to Breach of Contract Claim -
A novation is the mutual agreement between the parties, to an existing
contract, for its discharge by the substitution of a new valid obligation.
To prove a novation, four elements must be shown: (1) the existence of a
previously valid contract; (2) the agreement of the parties to cancel the
first contract; (3) the agreement of the parties that the second contract
replace the first; and (4) the validity of the second contract.
From a legal standpoint, a novation is a form of affirmative defense, and the party who advocates a novation has the burden of proving it by clear, satisfactory evidence.
If you are involved in a contract dispute and need the assistance of an experienced novation expert in attempting to negotiate a resolution thereof or in instituting or defending an action arising therefrom, please Contact Us for an initial free consultation.
Please keep in mind that the above information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice.