ART 1294.

If the substitution is without the knowledge or against the will of the debtor’s insolvency or
non-fulfillment of the obligation shall not give rise to any liability on the part of the original debtor.

In expromision, the new debtor’s insolvency or nonfulfillment of the obligation will not receive
the action of the creditor against the old debtor whose obligation is extinguished by the assumption of
the debt by the new debtor. Thus, in the second example above, if there is expromision, D will no longer
be liable to C in case of insolvency of T or non-fulfillment by T of his obligation.

Remember that in expromision, the replacement of the old debtor is not made at his own
initiative.

ART. 1295. The insolvency of the new debtor, who has been proposed by the original debtor and
accepted by the creditor, shall not revive the action of the latter against the original obligor, except
when said insolvency was already existing and of the public knowledge, or known to the debtor, when
he delegated his debt.

Effect of new debtor’s insolvency or non-fulfillment of the obligation in delegacion.

This article refers to delegacion. It must be noted that the article speaks only of insolvency. If
the non-fulfillment of the obligation is due to other causes, the old debtor is not liable.
The general rule is that the old debtor is not liable to the creditor in case of the insolvency of the
new debtor.

The exceptions are:

(1) The said insolvency was already existing and of public knowledge (although it was not
known to the old debtor) at the time of the delegacion; or
(2) The insolvency was already existing and known to the debtor (although it was not of public
knowledge) at the time of the delegacion.
The exceptions are intended to prevent fraud on the part of the old debtor.

ART. 1296. When the principal obligation is extinguished in consequence of a novation, accessory
obligations may subsist only insofar as they may benefit third persons who did not give their consent.

Effect of novation on accessory obligations.

The above article follows the general rule that the extinguishment of the principal obligation
carries with it that of the accessory obligations.
It provides, however, an exception in the case of an accessory obligation created in favor of a
third person which remains in force unless said third person gives his consent to the novation. This is so
because a person should not be prejudiced by the act of another without his consent.
ART. 1297. If the new obligation is void, the original one shall subsist, unless the parties intended that
the former relation should be extinguished in any event.

Effect where the new obligation void.

Article 1297 stresses one of the essential requirements of a novation, to wit: the new obligation
must be valid. The general rule is that there is no novation if the new obligation is void and, therefore,
the original one shall subsist for the reason that the second obligation being inexistent, it cannot
extinguish or modify the first.
To the rule is excepted the case where the case where the parties intended that the old
obligation should be extinguished in any event.

Effect where the new obligation voidable.

If the new obligation is only voidable, novation can take place. But the moment it is annulled,
the novation must be considered as not having taken place, and the original one can be enforced, unless
the intention of the parties is otherwise.

ART. 1298. The novation is void if the original obligation was void, except when annulment may be
claimed only by the debtor, or when ratification validates acts which are voidable.

Effect where the old obligation void or voidable.

This article has its basis also on the requisites of a valid novation.
A void obligation cannot be novated because there is nothing to novate. However, if the original
obligation is only voidable (Art. 1390; Note: a voidable obligation is valid until it is annulled in court.) or
if the voidable obligation is validated by ratification (see Arts. 1392, 1396.), the novation is valid.