Document background
A Deed of Novation is used when there is a need to completely transfer all rights and obligations under an existing contract to a new party, often during corporate restructuring, mergers, acquisitions, or business transfers. Unlike an assignment, which only transfers rights, a Deed of Novation under Singapore law transfers both rights and obligations, effectively creating a new contractual relationship. This document requires careful drafting to ensure compliance with Singapore's legal framework, particularly regarding execution requirements and the clear expression of all parties' consent. The deed typically includes details of the original agreement, the effective date of transfer, and comprehensive provisions for the release of the outgoing party.
