Document background
A Letter of Novation is a crucial document in Hong Kong's commercial landscape, used when one party to a contract needs to be replaced by another while keeping the original contract's structure intact. This document is particularly relevant in scenarios such as corporate restructuring, business acquisitions, or project reassignments. The letter must comply with Hong Kong's common law system and relevant ordinances, including the Contract and Rights of Third Parties Ordinance (Cap. 623). It typically includes details of the original agreement, the effective date of novation, clear statements of the parties' consent, and specific provisions regarding the transfer of rights and obligations. Given Hong Kong's status as a major business hub, these letters often feature in complex commercial transactions and must be carefully drafted to ensure enforceability.
