NOVATION , a legal
See also:term derived from the
See also:law, in which novatio was of three kinds-substitution of a new debtor (expromissio or delegatio), of a new creditor (cessio nominum vel actionum), or of a new contract . In
See also:English law the term (though it occurs as early as
See also:Bracton) is scarcely naturalized, the substitution of a new debtor or creditor being generally called an
See also:assignment, and of a new contract a
See also:merger . It is doubtful, however, whether merger applies except where the substituted contract is one of a higher nature, as where a contract under seal supersedes a
See also:simple contract . Where one contract is replaced by another, it is of course necessary that the new contract should be a valid contract, founded upon sufficient
See also:consideration (see CONTRACT) . The extinction of the previous contract is sufficient consideration . The question whether there is a novation most frequently arises in the course of dealing between a customer and a new
See also:partnership, and on the assignment of the business of a
See also:life assurance
See also:company with reference to the assent of the policyholders to the transfer of their policies . The points on which novation turns are whether the new
See also:firm or company has assumed the liability of the old, and whether, the creditor has consented to accept the liability of the new debtors and
See also:discharge the old . The question is one of fact in each case . See especially the Life Assurance Companies
See also:Act 1872, s . 7, where the word " novations " occurs in the marginal note to the section, and so has quasi-statutory sanction . Scots law seems to be more stringent than English law in the application of the
See also:doctrine of novation, and to need stronger evidence of the creditor's consent to the transfer of liability . In
See also:American law, as in English, the term is something of a novelty, except in
See also:Louisiana, where much of the
See also:civil law is retained .
NOVAYA ZEMLYA (Nova Zembla, " new land ")
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