Looking for a simple novation agreement template. Can anyone help with a format?
Vasundhara Singh (Student) 11 June 2021
Novation of contract means creating a new contract while substituting the old one where the old contract is terminated and it does not have to be performed. Section 62 of the Indian Contract Act, 1872 lays down the provisions for novation of contract. It states that, if the parties to the contract agree to substitute a new contract for it or to rescind it or alter it, the original contract need not be performed”. The basic requirement of section 62 was discussed by the Supreme Court in the case Lata Construction & Ors v. Dr. Rameshchandra Ramniklal Shah, explaining the definition and essentials of novation of contract.
You can refer to sample novation at:
Nirali Nayak 13 June 2021
Hello sir, greetings of the day.
As per your query, below I am explaining you the format for a novation agreement.
You can start with, This Agreement is entered into as of ,(year), by (name of company A), a partnership, duly organized and existing under the Indian laws, with its principal office in (location of the company A) (hereinafter referred to as the “Transferor”; name of company B), a corporation duly organized and existing under the Indian laws, with its principal office in (location of company B) (hereinafter referred to as the “Transferee”); and India (hereinafter referred to as the “Government”).
Then you have to mention the points the parties have agreed upon. Then mention that the parties after considering these facts have accepted the given agreement. And finally end with both the contractors name, company’s name and certificate.
Hope this helps.