- the assignee in an assignment does not become a party to the initial contract between the debtor and the assignor. This is comparable to a novation in so far that the parties of the novation do not become parties to the initial contract because a new contract is created whereas in an assignment the underlying contract remains on foot.
- Because in a novation the novation results in a new contract the rights are not subject to equities. In an assignment the assignee takes subject to equities.
- Novation comprises a discharge of existing obligations where consent is required whereas consent is not required in an assignment at common law.
- Consideration is required for novation whereas an assignments does not strictly require consideration.
William A.J. Higgs PhD