Question

Difference between novation and alteration

Answer 1

The difference between novation and alteration is there in the pic. Please refer to it

Answer 2

Answer:

In novation, the fresh contract is between new parties or exact old parties or one new and one old party. In alteration, there is no difference between the parties to the contract.

Explanation:

Difference between novation and alteration

1. Novation is when all the parties to the agreement give their consent for the substitution of the existing agreement for a novel contract. On the other hand, alteration suggests altering the terms and conditions of the contract, after all the parties consent to such changes.
2. In novation, the fresh contract is between new parties or exact old parties or one new and one old party. As against, in case of alteration, there is no difference in the parties to the contract.
3. In case of novation, the terms and conditions of the contract may or may not be modified. However, alteration of the contract is always due to the differences in the terms and conditions of the contract. Further, alteration exists as a part of novation.
4. Novation involves the substitution of the new contract with the existing one, whereas alteration does not always concern the substitution of the new contract with the old one as there may be some modifications in the terms and conditions of the principal agreement only.

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