Document background
A Novation Of Promissory Note is used when parties wish to transfer the rights or obligations under an existing promissory note to a new party under English and Welsh law. This might occur during business restructuring, debt assignments, or corporate acquisitions. The document formally records the agreement of all parties to the transfer, extinguishes the original legal relationship, and establishes a new one with the incoming party. It includes details of the original note, the parties involved, the terms being transferred, and any modifications to the original arrangements. This type of novation ensures legal certainty and maintains the enforceability of the underlying financial obligation.
