Novation Agreement - Definition

Novation Agreement

A legal instrument executed by

• (1) Contractor (transferor),

• (2) Successor in interest (transferee), and

• (3) Government, and, by which, among other things, the transferor guarantees performance of the contract, the transferee assumes all obligations under the contract, and the Government recognizes the transfer of the contract and related assets in accordance with FAR 2.1.