Contract Law - Difference between an assignment and novation

Many people confuse the concept of assignment and novation. Assignment merely transfers the benefits while novation transfers both the benefits and the obligations.
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[@lilychang3916]

This video beats my 4 hour lectures, thanks! :)

[@ariobarzan6025]

Amazing thank you ❤

[@shanenetshidzini5980]

simple and clear,thanks

[@Angel-gn2on]

Very helpful, thanks for sharing!

[@phillipfoster4580]

Thank you, this was very helpful

[@paidagam4396]

So helpful. Thank you

[@lavocatlawsingapore1807]

where are you from ?

[@timothystarks5053]

Thank you....

[@Become.corporate.lawyer]

Thanks a lot

[@muhammedvujoothi2407]

assumption: party A and part B bound with contract. if party C bound with party A by replacing party B through novation agreement, contractual relationship still alive between part A & part B? plz calrify

[@mybigdiary7332]

very very very good !!!!!

[@lavocatlawsingapore1807]

Thanks where are you from ?

[@MgtowRubicon]

What if the contract has specific assignment clauses, such as this lease example: "ASSIGNMENT BY LESSEE: Lessee may assign or pledge this Lease, or obtain a replacement for Lessee with the written consent of Lessor. Lessor shall not unreasonably withhold or delay consent. Upon allowable assignment under this clause, Lessee is released from liabilities and obligations, and assignee assumes those liabilities and obligations. The rights and obligations of Lessor under this Lease shall survive assignment by Lessee. ASSIGNMENT BY LESSOR: Lessor may assign or pledge this Lease without the written approval of Lessee. Said approval is not required when assignment is implied by conveyance of Property title or by assignment of beneficial interest in a Land Trust that holds legal and equitable title to Property (e.g., sale of Property). Upon allowable assignment under this clause, Lessor is entirely released from liabilities and obligations, and assignee assumes those liabilities and obligations. The rights and obligations of Lessee under this Lease shall survive assignment by Lessor." Is something like that sufficient to transfer the assignor's liabilities and obligations to the assignee?

[@nazeerahamed3497]

Thank you

[@caiphasmutata9837]

Very helpful. How about cession agreements, how do they differ from assignment and novation?

[@anubhutigupta1123]

Don’t know if you are still looking for an answer but… cessation or termination agreements are a different concept than assignment and notation. As in termination may involve/ lead to assignment but not necessarily so. So, take for example, a company (A) was providing some services (say, software maintenance service) to another company (B). Then, A decides to appoint its subsidiary (S) to do the job instead of doing the job. Then, A, B and S may sign a novation agreement wherein all software maintenance services will be provided by S instead of A and B consents for the same. This novation will be pursuant to a cessation/ termination agreement between A and B wherein A will cease to provide the services to B from a certain date. The termination and novation agreement can be clubbed under one agreement which says that A will cease its services to B from a particular date and that S will start providing services from that date. Also, all obligations pursuant to the services before the date are I be fulfilled by A and thereafter (from the date onwards), all rights and obligations will be undertaken by B. Hope this helps!

[@caiphasmutata9837]

@@anubhutigupta1123 Thank you so much for the detailed response. However my question was on the difference of CESSION (from the word cede) from novation and assignment, NOT CESSATION.

[@russcali4138]

great video

[@seabreaze4243]

What is a "Blanket" assignment ?

[@sookkhuan1587]

Hi , How To prepare Assign The TA to new owner?

[@MikeRivers23]

Can you draft a novation agreement for me?

[@MA-hn2jb]

😊