This document is a template novation of contracts.
This document should be used where a new contract is being formed and one or more parties have been substituted for another party to the contract, with the terms of the original contract otherwise remaining the same.
A novation transfers, rather than assigns, the benefit and burden of a contract to the new party. Therefore, to be effective and enforceable, the consent of all parties to the original contract is required.
Use of this document
The conditions precedent in clause 4 are designed for the situation where the retiring party and the substitute party are corporations, and where the instrument is executed under the power of attorney. It should be amended as necessary.
Representations and warranties
The representations and warranties in clause 5 are designed for the situation where the retiring party and the substitute party are corporations. It should be amended as necessary.
This document has been authored for Lexis Nexis by K I N Rose BA, BCom, LLB (Hons) (Sydney) Barrister-At-Law and updated by Megan Sweetlove, Sweetlove Family Law.