This case has been cited 1 times or more.
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2013-10-14 |
BERSAMIN, J. |
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| Novation is the extinguishment of an obligation by the substitution or change of the obligation by a subsequent one that terminates the first, either by (a) changing the object or principal conditions; or (b) substituting the person of the debtor; or (c) subrogating a third person in the rights of the creditor. In order that an obligation may be extinguished by another that substitutes the former, it is imperative that the extinguishment be so declared in unequivocal terms, or that the old and the new obligations be on every point incompatible with each other.[11] Obviously, in case of only slight modifications, the old obligation still prevails.[12] | |||||