English law does not permit the assignment (transfer) of contractual obligations (as opposed to rights) without the consent of the other contracting party. So, where a third party wants to "step into the shoes" of one party to a contract, it may be necessary to novate the contract using a novation agreement.

There are three parties to a novation agreement: the person who wishes to be released from the contract, the person wishing to take on the contractual rights and obligations, and the counterparty to the contract.

This template assumes that the transfer of rights and obligations will take effect at some point after the coming into force of the contract being novated.

This template novation agreement contains the following provisions:

> Definitions
> Transferee's obligations
> Counterparty's obligations
> Release
> Pre-existing claims
> Indemnity
> Third party rights
> Counterparts
> Law and jurisdiction

The template is 4 pages long (including the cover page) and is provided in Word (.doc) format.

Click here to see the first page of this document.