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Warning
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Simple English definitions for legal terms
innovation
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A quick definition of innovation:
Innovation means replacing an old obligation with a new one. This can happen when a new party takes over an old obligation or when a new obligation is created to replace an existing one. It's like getting a new toy to replace an old one that you don't want anymore. This is called novation. It's important to get everyone's agreement before making this change. There are two types of novation: objective novation, which is when a new obligation replaces an old one, and subjective novation, which is when a new person takes over an old obligation.
A more thorough explanation:
Innovation is a legal term that refers to the act of replacing an old obligation with a new one. This can involve replacing an existing obligation with a new one or replacing an original party with a new party.
For example, if person A owes person B $100, but person C agrees to pay the debt instead, this is an example of novation. The old obligation between person A and person B is replaced with a new obligation between person C and person B.
Novation can also involve creating a new contractual duty and including a party who was not originally involved in the contract. This requires the consent of all parties involved.
Overall, novation is a way to transfer obligations from one party to another, but it requires the agreement of all parties involved and the creation of a new obligation to replace the old one.