Novation agreement: transfer of service contract
Transfer a service contract between customers using this easy to use and effective novation contract. Although this novation agreement can be used to transfer any service contract, we have used the example of a transfer of website hosting services between hosting providers. Changes for other types of service agreement are very simple to make. The most common use for this agreement would be to change the parties to service contracts on the purchase of a business.
About this novation agreement
Use this document to transfer one party’s rights and obligations under a service contract to another party.
This is a simple yet comprehensive agreement that can be used to novate any service contract with only minimal editing. It ensures continuity of service when the party receiving the service changes. For the purposes of providing a working example, this document has been edited to allow the transfer of a website hosting service agreement between the customers of an Internet service provider (ISP).
The consent of all three parties - the transferee, the transferor and the other contracting party - is required to effect the novation. Unless you specifically require the consent of the other contracting party (perhaps because your contract has a non-assignment clause), our assignment agreement may be an even simpler way of transferring your contract to someone else.
Why not a deed of novation?
We have a longer article titled Deeds: clearing the confusion on what a deed is, when to use one and why that explains why a deed of novation is unlikely to be required in practice.
To summarise the article, the deed format is used where one party to a contract receives no consideration. However, a novation is invariably "for value", and as such, a deed of novation confers little additional advantage.
In the unlikely event that a party agrees to novation out of pure kindness, the consideration can be entered as “one pound”, or a "peppercorn". The sum does not need to have any relation to the value of the debt being novated.
When to use this novation agreement
This document can be used to transfer any service contract to another party.
There are, of course, many uses for this agreement. Examples of when this document might be used include:
- On the sale/purchase of a business that depends on the continuation of certain services (e.g. website hosting)
- On the sale of an asset in the process of being produced or amended
The buyer of this document might be:
- The service provider, looking to make sure that the buyer of the business keeps his business with the service provider
- The buyer of the business, keen to sort out the smooth transfer of day to day operations
- The seller of the business, who wishes to make a sale as easy and therefore as attractive to a prospective buyer as possible
You should use this novation agreement, rather than an assignment agreement if all parties to the contract will agree to the change and sign the contract. Its usually easier just to get the transferring parties to sign an assignment agreement, but some contracts have non-assignment clauses that mean that novation is the only valid way of transferring the contract to someone else. If in doubt, use this agreement and obtain consent from all involved.
Agreement features and contents
- Suitable for transferring service contracts;
- Suitable when either party is resident outside the UK;
- Ensures a legal transfer as it is drawn as an agreement between all parties;
- Comprehensive provisions provide ideas for you to mould.
The novation agreement contains the following sections:
- Details of the parties;
- Indemintity clause to protect both parties from loss, damage or legal liability once the contract is transferred;
- The novation;
- Existing claims: sets out how outstanding claims against the transferor will be dealt with;
- Other usual legal provisions in plain English.
This document is drawn by Net Lawman lawyers to comply with current English law.
Buy from Net Lawman
Read what other customers thought about this document.
Reasons to buy from Net Lawman
Guaranteed to be the right document
This document comes with a full money back guarantee. You take no risk that it might not be right for your situation. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason it's not right, just e-mail us and we’ll refund your money in full immediately. Read more about our guarantee policy.
Every document is drawn by an experienced, qualified lawyer and reviewed by another - just as in any law practice. We incorporate changes to the law quickly so that our documents are up to date. Read more about how we draw our documents.
Real world experience added
As much as possible, our documents and guidance notes incorporate practical angles that only lawyers with commercial experience could include. Our drafting team have not just many years experience advising clients in practice, but also have the experience owning and managing businesses in a wide variety of industries. Our documents aim to give you an edge as well as achieving a legal outcome. Read more about the Net Lawman team.
We write our documents in language that everyone (and not just lawyers) can understand. Not only does this make your task of editing the document easier, but it also decreases the likelihood of another party breaking or disputing the agreement on the grounds of not having understood the terms. Read more about why plain English is important in legal documents.
Easy to use, even if you have no legal knowledge
Many of our customers are lawyers, but our documents don't require you to be one. Wherever it may be needed, our guidance notes explain the purpose of each paragraph, whether we recommend changing it, and what you might like to consider before you do so.
Our view is that, when editing our documents, you shouldn't have to worry about how to add legal wording. So our documents consider a far greater range of issues than our average customer will need, and because we avoid cross referencing paragraphs, we make it easy for you simply to delete what you don't need without affecting the rest of the document.
Support from lawyers if you need it
Our legal team is on hand to help customise a document in an unusual circumstances, or even to draft a document from scratch. Read more about our contract drafting service.
Buy once and reuse
When you buy a document from us, we grant you a licence to use it again. Keep the master copy safe and create new child documents from it whenever you need them. This applies to lawyers in practice as well as individuals and businesses.
Document download and delivery
Immediately after payment, you can download your document from our website. We also deliver immediately by email, but delivery is out of our hands and may take a few minutes.
Contact us about this document
If you have any questions about this document that we don't answer in the text above, please contact us and let us know how we can help. We aim to reply within 24 hours.
Leave feedback about this page
If you have noticed a bug or a mistake on this page, or just want to give us feedback, we'd love to know. Nothing is too small or too big. Send your message on this feedback page.
"If only everything was as reliable as NetLawman. We have used them on numerous occasions & they deliver without fail. Whether we require off the shelf legal documents, bespoke contracts or even ad hoc advice they are there for us. It is like having our own legal team but without the costs that this would entail. Pickaweb has no hesitation in recommending NetLawman as one of our best suppliers."Pilar Torres Wahlberg
"Efficient & fast way to create legal docs."Infobahn
"Simply you are easy to work with and reasonably priced. I could edit the document . This word version was exactly what I was looking for. We were easily able to replace old out of date forms."Brett Wilson