Section 129

Novation of a contingent contract involves the substitution of a new contract for the existing one, with the consent of all parties involved. Section 62 of the Indian Contract Act, 1872, deals with novation, stating that a new contract may be substituted for an existing one, with the assent of all parties. For contingent contracts, novation can change the terms of the contract, including the contingency, if all parties agree. However, if the event on which the contract is contingent has already occurred, novation cannot alter the contract's enforceability. The courts have recognized that novation can be used to modify or discharge contingent contracts, provided there is clear evidence of the intention of all parties to substitute a new contract for the existing one.