novation
/noʊˈveɪʃən/
novation noun: 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.
Noun
novation (countable and uncountable, plural novations)
- 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.
- Netting by novation will occur immediately upon registration of the transaction in the SCM's name.1998, London Clearing House, submission to the U.S. Commodity Futures Trading Commission http://www.cftc.gov/opa/press98/opa4163-98-att.htm
- A similar novation of infrastructure ownership was seen as a logical development for the operation of Merseyrail services. But this has remained with Network Rail, […].2024 September 18, 'Industry Insider', “GBR starts to take form”, in RAIL, number 1018, page 84
- A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
- An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments.
novation meaning in Tamil, Urdu and Indonesian
novation in Tamil
- புத்தீடு, புதிதாக சேர்த்தல்
novation in Urdu
- تجدید
novation in Indonesian
- replacement contract
- novasi
- new contract
- novasi
Forms of novation
| plural | novations |
|---|
Origin of novation
Borrowed from Latin novātiō (“a renewing, rennovation”), from novō, from novus (“new”). Compare novel, novelty.
Questions about novation
- What does novation mean?
- Novation means 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.
- What is novation in Tamil?
- Novation in Tamil is புத்தீடு, புதிதாக சேர்த்தல். See Novation meaning in Tamil.
- What part of speech is novation?
- Novation is a noun.
- How do you pronounce novation?
- Novation is pronounced /noʊˈveɪʃən/.
- What is the plural of novation?
- The plural of novation is novations.
Words near novation in the dictionary
Source and license
Adapted from Wiktionary: novation (page history and authors); novation (Tamil Wiktionary) (page history and authors); novation (Urdu Wiktionary) (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.
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Pronunciation audio from Wikimedia Commons, each file under its own free license: LL-Q1860 (eng)-Neøn-novation.wav.
Cite this entry: “novation.” Word.ws, https://word.ws/novation. Based on Wiktionary, CC BY-SA 4.0.