Novation Agreement
(Short Form) (PA)

Summary

This short form novation agreement may be used when parties to a commercial agreement governed by Pennsylvania law mutually agree to discharge and release one party by substituting a new party in its place. This template includes practical guidance and drafting notes. In a novation, the discharged and released party transfers all of its rights and obligations to a new (i.e., substitute) party. The substitute party agrees to perform all of the original party's contractual obligations. The non-transferring party assents to such substitution and fully discharges and releases the original party, agreeing to fulfill all of its obligations for the benefit of the new, substitute party. For information regarding novation, see Novation, Accord and Satisfaction, and Substituted Contracts, Commercial Contract Assignment (PA), and Assignment and Assumption Agreement (Novation) (PA).