How is novation done, that is, does it require a separate contract ?
Novation requires that the parties enter into a novation agreement, usually in the form of a deed whereby the outgoing party (ie., the Principal) obtains a release from the other party to the original contract and the incoming party (ie., the Contractor) assumes the rights and obligations of the outgoing party. The contractor or consultant consents to the transfer of rights and obligations from the outgoing party to the incoming party on particular terms and conditions.
