DEED OF NOVATION

DEED OF NOVATION

What happens when a party to a contract no longer wants to continue with the contract but the deal itself must go on? The answer is a Deed of Novation.

In property and business law, contracts bind parties together with both rights and duties. But life and business change, companies are sold, tenants relocate, investors withdraw.

Instead of canceling an Agreement and writing a new one, a Deed of Novation allows a person to the contract to step aside and a new person to step in, take over and carry both his benefits and burdens in the agreement.

It is the legal handover note that keeps the contract alive.

A Deed of Novation identifies the original contract, states that one person is being replaced by another person, transfers rights and duties and confirms that all terms are binding on the new person.

From the moment it is signed, the new party becomes a part of the contract while the outgoing party is fully released from future obligations.

It saves time and cost, ensures continuity, helps you avoid the disruption of drafting a fresh contract. For companies, investors, landlords and tenants, novation is the clean way to swap parties without killing the deal.

One wrong clause could leave the original party still liable or leave the new party without enforceable rights.

So only an experienced Property Lawyer should prepare a Deed of Novation. The wrong handover can cost you too much.

__________________

APEX CHAMBERS, Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors Advocates, Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls & Whatsapp)

Email: info@apexchambersglobal.com

Website: www.apexchambersglobal.com