A novation is an AGREEMENT to EXTINGUISH or replace one or more existing obligations with a new obligation. Accessory obligations to the original debt, such as a pledge or suretyship, are EXTINGUISHED by an agreement to novate the debt. The parties may agree to replace the debtor with a third party, provided of COURSE that the third party agrees to such novation.

Replacement of a debtor by novation is called delegation. If an original obligation is void, a novation of the obligation will ALSO be void. But if the novation itself is void, the original obligation will continue to exist.

A novation is an agreement to extinguish or replace one or more existing obligations with a new obligation. Accessory obligations to the original debt, such as a pledge or suretyship, are extinguished by an agreement to novate the debt. The parties may agree to replace the debtor with a third party, provided of course that the third party agrees to such novation.

Replacement of a debtor by novation is called delegation. If an original obligation is void, a novation of the obligation will also be void. But if the novation itself is void, the original obligation will continue to exist.