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SECTION 6 – NOVATION

STUDY GUIDE
II. PROBLEMS
I. DEFINITIONS
Define or give the meaning of the following: Explain or state briefly the rule or reason for your
answer.
1. Novation – It is the extinction of an obligation
through the creation of a new one which 1. T (third person) tells C (creditor) that T is will
substitutes it. to pay the debt of D (debtor). C agrees. Is D
released from his obligation to C?
2. Mixed novation – when the object and / or - Yes, according to article 1293. There is
principal conditions of the obligation and the expromission only if D is released from his
debtor or the creditor, or both the parties, are obligation to C. If T and C didn’t agree as to
changed is a combination of real and personal such. D is not liable because T paid without
novations. his knowledge or consent.

3. Expromission – that which takes place when a 2. Suppose in the above problem, D proposed
third person of his own initiative and without the to C that T would substitute D as the new
knowledge or against the will of the original debtor to which C agreed. Is D still liable to C
debtor assumes the obligation of the latter with in case of solvency of T?
the consent of the creditor. - No, according to article 1295, the insolvency
of the new debtor will not revive the
4. Delegation – that which takes place when the creditor’s actions against the original one.
creditor accepts a third person to take place of
the debtor at the instance of the latter. 3. T paid C the debt of D without objection from
the latter. What are the rights of T?
I. DISCUSSIONS - According to article 1302, T has all the
1. Give the requisites of novation. previous rights that C had.
- According to article 1292, the requisites of
novation are,
- (1) a previous valid obligation 4. Illustrate a mixed novation.
- (2) capacity and intention of the parties to - Ana will deliver to Marie a birthday cake, in
modify or extinguish the obligation the agreement of the parties, Ana will
- (3) the modification or extinguishment of the instead deliver a dozen of balloons to Karen.
obligation; and
- (4) the creation of a new valid obligation.

2. When there is subrogation, what rights are


acquired by the new creditor?
- According to article 1303, subrogation
transfers all the rights, either against the
debtor of against third persons, subject to
stipulation in a conventional subrogation.

3. In novation, give the effect where:


(a) The new obligation is voidable;
- According to article 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.
(b) The old obligation is voidable. Explain
- According to article 1298, the novation is
void if the original obligation is void, except
when annulment may be claimed only by the
debtor or when ratification validates acts
which are voidable.

4. In novation are accessory obligations


necessarily extinguished? Explain
- According to article 1296, when the principal
obligation is extinguished in consequence of
a novation, accessory obligations may
subsist only in so far as they may benefit
third persons who did not give their consent.
Thus if a third person is affected by the
accessory in the original obligation, it will not
be extinguished without his consent.

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