Contracts Law.  Novation is the substitution of a new obligation for an existing one.  No particular form is required; it may be written, oral, or implied from conduct.  A novation requires an intent to discharge the old contract, mutual assent, and consideration.  Intent does not require an express statement; courts look to context, examining the evidence, conduct, and the surrounding circumstances. Changing the subject matter of a contract, or a material term, evinces the required intent.  The mutual surrender of rights under the original agreement constitutes consideration.

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