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The Letter of Novation is a essential legal instrument in Australian business practice, used when one party wishes to transfer their entire role in a contract to a new party. This document is particularly relevant in scenarios such as business acquisitions, corporate restructuring, or project reassignments. The letter must clearly identify the original agreement, specify the effective date of the novation, and include explicit consent from all parties. Unlike an assignment, which only transfers rights, a Letter of Novation transfers both rights and obligations, creating a new contractual relationship while terminating the original party's involvement. This document is governed by Australian contract law principles and may also need to comply with specific state legislation depending on the subject matter of the original agreement.

1. Letter Date and Addresses: Full names and addresses of all parties involved - the original parties and the incoming party

2. Reference to Original Agreement: Clear identification of the original agreement being novated, including its date and parties

3. Purpose Statement: Brief statement explaining the intention to novate the original agreement

4. Effective Date: Specification of when the novation takes effect

5. Transfer Statement: Clear statement of the rights and obligations being transferred

6. Consent and Agreement: Express consent of all parties to the novation

7. Execution Block: Signature blocks for all three parties