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welcome to docpros channel docpro has all the documents you need at your fingertips Innovation agreement is a three-way contract where all parties consent to transfer one of the original partys contractual rights and obligations to a new third party this is different from an assignment where contractual rights are transferred but the obligations of a contract cannot be transferred under an assignment rights can generally be assigned by one party to another by giving notice to the obliger without consent however to transfer contractual obligations all parties under the original contract must consent to such innovation rights or benefits refer to the entitlements of a party under a contract common examples of rights include the right to sue or to seek compensation obligations or burdens refer to the duties a party must fulfill under a contract common examples include making payments or delivering Goods this makes Novation particularly common in the sale of business transactions in such