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Renovation vs Novation - What's the difference?

renovation | novation |

As nouns the difference between renovation and novation

is that renovation is renovation while 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.

renovation

English

Noun

(en noun)
  • An act, or the process, of renovating.

    • novation

    English

    (wikipedia novation)

    Noun

    (-)
  • (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.

    • Related terms

    * novate * novatio