novation

== English == === Etymology === Borrowed from Latin novātiō (“a renewing, rennovation”), from novō, from novus (“new”). Compare novel, novelty. === Pronunciation === IPA(key): /noʊˈveɪʃən/ === Noun === novation (countable and uncountable, plural novations) (law) Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party. 1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission [1] Netting by novation will occur immediately upon registration of the transaction in the SCM's name. (law) A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted. ==== Related terms ==== novate novatio ==== Translations ==== == French == === Pronunciation === === Noun === novation f (plural novations) novation