Novation and advance consent

• Main Author: LAU, Kwan Ho
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: contract; novation; commercial law; common law.; Commercial Law; Contracts
• Online Access: https://ink.library.smu.edu.sg/sol_research/3979; https://ink.library.smu.edu.sg/context/sol_research/article/5937/viewcontent/novation_and_advance_consent.pdf
• Institution: Singapore Management University

Professor Goode once observed that “Novation need not be left to ad hoc agreement; it is open to the parties to provide for it in advance and in particular to establish a contractual mechanism by which novation takes place automatically on the occurrence of a designated act or event”. This deceptively straightforward proposition is examined in the present article. It explores the legal footing for, and the risks in adopting a pristine version of, the proposition, and considers possible safeguards that may be incorporated within the process of scrutiny, if in any case there arises concern over the effectiveness of a novation that is undertaken pursuant to consent given in advance.