Novate (Verb)
Meaning
Replace with something new, especially an old obligation by a new one.
Classification
Verbs of size, temperature change, intensifying, etc..
Examples
- The company decided to novate its outdated contract and replace it with a new, more competitive agreement.
- The lender agreed to novate the loan, swapping the original debtor for a new guarantor with better credit.
- The insurance company chose to novate its policy, cancelling the old one and issuing a new policy with updated terms and conditions.
- The supplier novated its contract, terminating the original agreement and entering into a new one with more favorable terms.
- The government novated its treaty, replacing the original obligations with new ones that reflected the changed circumstances.