This Novation Agreement (“Agreement”) is entered into on [Date], by and between:
Original Party A (Continuing Party): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
Original Party B (Outgoing Party): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
New Party (Incoming Party): [Full Legal Name / Company Name]
Address: [Address]
Contact: [Phone, Email]
Together referred to as the “Parties.”
The Parties entered into a contract dated [Original Contract Date] (“Original Agreement”). The Parties now wish to substitute the New Party in place of the Outgoing Party, with the consent of all Parties.
The Outgoing Party is released from all obligations, liabilities, and claims under the Original Agreement as of the Effective Date.
The New Party assumes all rights, obligations, and liabilities of the Outgoing Party under the Original Agreement.
The Continuing Party consents to the substitution of the New Party in place of the Outgoing Party.
This Agreement shall take effect on [Effective Date].
Each Party represents and warrants that:
They have the authority to enter into this Agreement.
Consent is given voluntarily and without coercion.
No other agreements conflict with this novation.
This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
This Agreement constitutes the entire understanding between the Parties with respect to the novation of the Original Agreement and supersedes all prior negotiations or representations.
Original Party A (Continuing Party): __________________ Date: ________
Name/Title: [Full Name, Title]
Original Party B (Outgoing Party): __________________ Date: ________
Name/Title: [Full Name, Title]
New Party (Incoming Party): ________________________ Date: ________
Name/Title: [Full Name, Title]
Each template already follows legal structure and best practices.
The agreement is automatically filled and adapted to your inputs.
Check the generated document, make edits if needed, and download a ready-to-use agreement.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Frequently asked
A Novation Agreement is a legal contract that substitutes one party in an existing contract with a new party, transferring both rights and obligations. Unlike assignment, novation requires the consent of all original parties because it completely replaces one party.
It ensures a smooth transition of responsibilities and liabilities, prevents disputes, and maintains the enforceability of the original contract under new party arrangements. It is often used in mergers, acquisitions, financing, or restructuring.
Use it when you need to replace a party in an existing agreement — for example, when a supplier sells its business, when contracts are transferred during a merger, or when debt obligations are moved to another entity.
It should clearly identify the original contract, the outgoing party, the incoming party, the continuing party, the effective date of novation, and mutual consent to the transfer of obligations.
An assignment transfers only benefits (rights) under a contract, while novation transfers both benefits and obligations, effectively creating a new contract with the new party fully stepping into the old party’s role.
A novation benefits all three parties, each in a different way. This template releases the outgoing party from all obligations under the original agreement as of the effective date, and the new party takes over the outgoing party's rights and duties. The substitution needs the continuing party's consent, so that party keeps the contract going with a partner it has accepted. Suppose a tenant sells its shop and the landlord signs a novation of the lease. The seller then stops owing future rent, while the buyer takes over the lease as a tenant the landlord has approved. The AI Lawyer builder fills in the names of all three parties and the date of the original contract.
SPONSORSHIP AGREEMENT This Sponsorship Agreement (“Agreement”) is entered into on [Effective Date], by and between: Sponsor: [Full Legal Name], with principal business… B2B Legal Documents 
Master Service Agreement (MSA) This Master Service Agreement (“Agreement”) is entered into on [Date], by and between: • Service Provider: [Company Name], located at [Address]. • Clien… B2B Legal Documents 
This Master Supply Agreement (the “Agreement”) is entered into as of [Effective Date] by and between: Buyer: [Buyer Legal Name], with an address at… B2B Legal Documents 
Supply Agreement This Supply Agreement (“Agreement”) is entered into on [Date], by and between: • Supplier: [Company Name], with a principal place of business at… B2B Legal Documents 
Location Release Agreement Template This Location Release Agreement (“Agreement”) is entered into on [Date], by and between: Property Owner/Representative: Name: __________________________… B2B Legal Documents 
Purchase Order Terms and Conditions Template These Purchase Order Terms and Conditions (“Terms”) apply to all purchase orders (“POs”) issued by [Buyer Company Name] (“Buyer”) to suppliers… B2B Legal Documents 
Mutual Termination Agreement Template This Mutual Termination Agreement (“Agreement”) is made on [Date], by and between: Party A: [Full Legal Name / Company Name] Address: [Address] Contact… B2B Legal Documents 
This Share Transfer Agreement (“Agreement”) is made as of [Date of Agreement]. Parties Transferor (Current Shareholder) Full Legal Name: [Transferor… B2B Legal Documents 
This Exclusive Trademark License Agreement (the “Agreement”) is entered into as of [Effective Date] by and between: Licensor (Owner): [Licensor Legal… B2B Legal Documents 
This Nunc Pro Tunc Trademark Assignment (the “Agreement”) is entered into as of [Signature Date] by and between: Assignor: [Assignor Legal Name], a… B2B Legal Documents 
[Assignee Name] [Assignee Address] [City, State, ZIP] [Phone] | [Email] Date: [Date] To: [Counterparty Name] [Counterparty Address] [City, State, ZIP] Subject… B2B Legal Documents 
OEM Agreement Template This OEM Agreement (“Agreement”) is entered into on [Date], by and between: OEM Manufacturer: [Full Legal Name / Company Name] Address: [Address] Contact… B2B Legal Documents 
[Assignee Name] [Assignee Address] [City, State, ZIP] [Phone] | [Email] Date: [Date] To: [Counterparty Name] [Counterparty Address] [City, State, ZIP] Subject… B2B Legal Documents 
Officer Certificate Template Date: [Date] To: [Recipient Name / Lender / Buyer / Investor / Other Party] Address: [Address] Re: Officer Certificate I, [Officer Full Name], certify as… B2B Legal Documents 
Notice of Arbitration Template This Notice of Arbitration (“Notice”) is issued on [Date], by: Claimant: [Full Legal Name / Company Name] Address: [Address] Contact: [Phone, Email] Respo… B2B Legal Documents 
Partner Agreement This Partner Agreement (“Agreement”) is effective as of [Date], by and between: • Partner A: [Company Name], [Address]. • Partner B: [Company Name]… B2B Legal Documents 
This Non-Exclusive Agreement (“Agreement”) is made as of [Effective Date]. Parties Provider Legal Name: [Provider Legal Name] Entity Type: [Provider… B2B Legal Documents 
Partnership Agreement Template This Partnership Agreement (the “Agreement”) is made and entered into as of: Effective Date: [Date] Parties and Formation This Agreement is by and… B2B Legal Documents 
This Non-Exclusive Agency Agreement (“Agreement”) is made as of [Effective Date]. Parties and Relationship Principal Legal Name: [Principal Legal Name] En… B2B Legal Documents 
Patent License Agreement This Patent License Agreement ("Agreement") is entered into on [Date], by and between: Licensor: [Full Name / Company Name] Address: [Licensor’s… B2B Legal Documents 
This Non-Compete Addendum (this “Addendum”) is made as of [Addendum Date]. Parties and Reference to Asset Purchase Agreement Buyer: Full Legal Name… B2B Legal Documents 
Payment Bond Template Bond Number: [Bond Number] Date: [Date] Parties Principal / Contractor: [Full Legal Name] Address: [Address] Surety: [Full Legal Name] Address: [Address] Obl… B2B Legal Documents 
This Non-Circumvention Agreement (the “Agreement”) is made and entered into as of [Effective Date] (the “Effective Date”) by and between: Disclosing/In… B2B Legal Documents 
This Performance Agreement (the “Agreement”) is made and entered into as of [Effective Date] (the “Effective Date”) by and between: Organizer/Venue… B2B Legal Documents 