Novation vs Alteration - What's the difference?
novation | alteration |
(legal) Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.
* Netting by novation will occur immediately upon registration of the transaction in the SCM's name. — London Clearing House submission to the CFTC [http://www.cftc.gov/opa/press98/opa4163-98-att.htm]
(legal) A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
* An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments.
The act of altering or making different.
* 1594 , , Of the Laws of Ecclesiastical Polity ,
The state of being altered; a change made in the form or nature of a thing; changed condition.
* 1892 , ,
As nouns the difference between novation and alteration
is that novation is (legal) replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party while alteration is alteration.novation
English
(wikipedia novation)Noun
(-)alteration
English
Noun
(en noun)- …alteration , though it be from worse to better, hath in it inconveniences…
- …and I saw by the alteration in your face that a train of thought had been started.