A novation ordinarily arises when a new obligor agrees to pay or do that which was agreed to by the original party to the contract.

Name: A novation ordinarily arises when a new obligor agrees to pay or do that which was agreed to by the original party to the contract.
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A novation occurs when a new party takes on the obligations of the original party in a contract, effectively replacing the original party. This usually occurs with the agreement of all parties involved.

A Novation Ordinarily Arises When a New Obligor Agrees to Pay