If you have ever purchased a home, you have probably noticed that the bank that you started writing your monthly check to is not the same bank a few months after the loan is closed. This is because you signed an "Assignment" to the note that says the bank can sell your loan so long as the terms remain the same. This "Assignment" is just that, an agreement, usually beforehand and in the contract that allows one party to "Assign" the right to take someone's place in the transaction, again, so long as the terms of the contract remain the same.
A Novation is a little different. In a Novation, ALL parties must agree to the person taking someone's place. Again, all terms remain the same in the contract, but by replacing someone by novation, the other party as the right to object for any reason.
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