1) What is it?
2) Who must agree to it?
3) What is its impact?
DEFINED: An agreement to substitute a new party for an existing one
WHO MUST AGREE: All parties must agree to the novation (i.e., both original parties, and the substituted party), otherwise its a mere delegation
IMPACT: The new party takes over the rights and obligations of the old party (i.e., the old party is excused from performance)