novation

American Heritage® Dictionary of the English Language, Fourth Edition

1. n. Law Substitution of a new obligation for an old one.

Century Dictionary and Cyclopedia

1. n. The introduction of something new; innovation.
2. n. A revolution.
3. n. In law, the substitution of a new obligation for an old one, usually by the substitution of a new debtor or of a new creditor. The term, however, is sometimes used of the substitution of a new obligation between the original parties, as the substitution of a bill of exchange for a right of action arising out of a contract of sale, though this is more commonly called merger or extinguishment. While in an assignment the old claim merely passes into other hands, in a novation there is a new claim substituted for it. The term is derived from the Roman law, where it was of great importance, because assignment of claims did not exist. It is possible by one novation to extinguish several obligations: as, if A owes a debt to B, B to C, and C to D, and it is agreed that A shall pay D in satisfaction of all, this promise, if consented to by all parties, extinguishes all the other claims, even though not performed.

Wiktionary

1. n. law 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.
2. n. law A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.

GNU Webster's 1913

1. n. obsolete Innovation.
2. n. (Law) A substitution of a new debt for an old one; also, the remodeling of an old obligation; debt restructuring.

WordNet 3.0

1. n. (law) the replacement of one obligation by another by mutual agreement of both parties; usually the replacement of one of the original parties to a contract with the consent of the remaining party