Lawyer lingo: What is the meaning of novation?

 
CONTRACT LAW: NOVATION DEFINED
   
What is novation?
 
“Novation is the creation of a new obligation in the place of an old one, by which the parties agree that a new obligor will be substituted to perform the duties agreed upon by the old contract, while the original obligor is released from performing those duties.” Vandeventer v. All Am. Life & Cas. Co., 101 S.W.3d 703, 712 (Tex. App.-Fort Worth 2003, no pet.).
 
Elements of novation as a defense
  
A party that raises the affirmative defense of novation must prove (1) the validity of a previous obligation; (2) an agreement among all parties to accept a new contract; (3) the extinguishment of the previous obligation; and (4) the validity of the new agreement. Vickery v. Vickery, 999 S.W.2d 342, 356 (Tex. 1999).

SOURCE: Dallas Court of Appeals - 05-10-00234-CV - 7/29/11