What is needed for a valid novation to occur?

A valid novation requires that the original contract ceases to exist, as this is fundamental to the concept of novation. Novation is a legal process where one party to a contract is replaced by another party with the consent of all involved. This replacement of parties creates a new contract, effectively extinguishing the old one, which is why the original contract must cease to exist for a novation to be valid.

The requirement of the original contract ceasing aligns with the essence of novation—there can't be two valid contracts regarding the same obligation at the same time. This ensures clarity and prevents confusion in contractual relations, as the parties must be aware that the previous obligations have been fully discharged and replaced by new terms involving the new party.

In contrast, while notifying the parties may be essential for effective communication, it is not a formal requirement for a novation itself. Additionally, the obligation involved in the new contract typically does change because it is now with a new party, and simply having the agreement of the original obligor alone does not suffice, as all original parties must consent to the novation.