This novation agreement allows one party to replace or substitute another party to an original contract, A and B, with a new contract and a new party, A and C. This document will also include the background to the novation as well as the reason for the novation. It also includes the option for indemnities which will protect the parties after the novation has occurred.
This agreement is a contract between three parties:
the outgoing party is one of the original parties to the agreement which wants to transfer its rights and obligations under it
the incoming party is the party which is coming to replace one of the original parties to the agreement
the remaining party is the other original party to the agreement, which needs to agree to the novation