What is the effect of a novation of a contract?

A novation of a contract in Mississippi is a process used to transfer an existing contract from one party to another. It is essentially a form of assignment or delegation. This means that the responsibility and obligations under the contract are transferred from one contracting party to another. The effect of a novation is that the original contract is extinguished and replaced with a new contract between the two new parties. In addition, any prior contractual obligations are transferred from the original parties to the new parties. While the novation of a contract in Mississippi is a way to replace an existing contract with a new one, it does not mean that it terminates the agreement completely. The original agreement remains in effect throughout the novation process, unless the parties agree otherwise in writing. This means that any promises or obligations that were originally established still remain binding. In essence, novation of a contract in Mississippi creates a new contract between the same two parties but with different terms and conditions. It also transfers the responsibilities and obligations from the original contract to the new parties. This offers both parties the chance to renegotiate the contract and create more favorable terms.

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