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Under the Indian Contract Act, 1872, novation of a contract means:

Section 62 provides that "if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed".…

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Under the Indian Contract Act, 1872, novation of a contract means:

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Section 62 provides that "if the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed". Novation is the first of these, the substitution of a new contract; a mere alteration of terms, a rescission or a renewal is not novation.

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