What is the difference between assignment and novation?

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Assignment and novation are both ways of moving contract rights or responsibilities, but they work differently.

An assignment usually transfers rights under a contract. Novation usually replaces one party with another and can transfer both rights and obligations. Novation normally needs consent from all parties involved.

The right process depends on the contract wording, the parties, the transaction and the law that applies.

This answer is general information, not legal advice.

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