Novation

The video tutorial explains how two parties in a contract can involve a third party by assigning rights or delegating responsibilities. It introduces the concept of novation, where a new agreement replaces the old one, potentially involving new parties and releasing the original party from obligations. The process of novation renews obligations under a pre-existing agreement with a new one.

What is the process called when two parties to a contract want to bring in a third party?

Can the original party delegate their responsibilities to a third party?

What does a new agreement in a novation typically do?

What happens to the original party's obligations when a novation occurs?

How does a novation differ from simply assigning rights under an agreement?