Party Substitution

Party substitution is the replacement of one contracting party with another, requiring consent and formal documentation through assignment or novation.


Substitution MethodMechanism
AssignmentRights transferred, obligations may remain
NovationComplete replacement with release
JoinderAdditional party added
SuccessionDeath or corporate restructuring
RequirementsProcess
Written agreementFormal documentation
All parties consentOriginal parties must approve
ConsiderationValue exchange if applicable
RegistrationUpdate with authorities

Related Terms

Novation AgreementAssignmentContract TransferJoinder Agreement

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