What is this Novation Agreement template for?
It is for use when a company is transferring its business to another company and, as part of the sale, it is transferring its customer contracts to the buyer.
What are the main issues?
A novation agreement, as the name suggests, creates a new contract between the customer and the buyer which is essentially the same as the previous contract between the customer and the seller. As a result, all three parties – seller, buyer and customer will sign the novation agreement.
Most novation agreements, like ours, are very short and briefly state that:
- the buyer and the customer will be bound by the terms of the existing seller/customer contract
- the seller is released from its obligations by the customer and those obligations are taken on by the buyer
Sometimes there is an extra clause which confirms the financial position between seller and customer at the date of the novation.
For more information on each of these sections, see our Explanatory Notes which you will receive when you download the document from our website.
For information on signing documents see our Contract Signing page
When I download the document, can I change it and/or use it more than once?
Yes, all ContractStore’s templates are in MS Word and you can use the contract on more than one project. For more information, watch the video on this page of our website or see our FAQs
ContractStore supplies templates and is not a law firm. But all our templates are written by experienced lawyers so we can arrange legal assistance for customers who need special terms in one of our documents or a bespoke template. . For more information see our Legal Services page.
And if you want to contact us see our Contacts page.
If you have any questions about a contract and/or want to see the Explanatory Notes before you buy, please let us know by using our contact form
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