1. to replace an old obligation or contract with a new one, typically by agreement of all parties involved
Usage: legal/formal; transitive

Examples

• The creditor agreed to novate the original loan with a new agreement that included better terms.
• When the company was sold, the new owner chose to novate all existing contracts with updated versions.
• The parties decided to novate their partnership agreement to reflect the addition of a third partner.
• To novate a contract, all original parties must consent to the substitution.
• The bank will novate your mortgage if you refinance with a different lender.