Podcast
Questions and Answers
What is novation?
What is novation?
- The payment of a debt despite changes in the identity of the debtor
- The creation of a new debt without involving any old obligations
- The compensation that takes place automatically regardless of the debtor's consent
- The modification or extinguishment of an obligation by substituting it with another (correct)
In novation, what is one of the functions of the process?
In novation, what is one of the functions of the process?
- Incrimination of the debtor's actions
- Reduction of the total amount owed
- Extinction of the old obligation and creation of a new one (correct)
- Transfer of the creditor's rights to a third party
Which of the following is a requisite for novation to exist?
Which of the following is a requisite for novation to exist?
- Agreement of only one party to the new obligation
- Completion of the old obligation without any modifications
- Intent to maintain the old obligation unchanged
- Substantial difference between the old and new obligations leading to the extinction of the former (correct)
How is the test of incompatibility used in relation to novation?
How is the test of incompatibility used in relation to novation?
What role does the consent of the creditor play in changing the identity of the debtor?
What role does the consent of the creditor play in changing the identity of the debtor?
Can novation occur if there is no substantial difference between the old and new obligations?
Can novation occur if there is no substantial difference between the old and new obligations?
If the new debtor becomes insolvent and it was already existing and of public knowledge when the debt was delegated, what liability does the original debtor incur?
If the new debtor becomes insolvent and it was already existing and of public knowledge when the debt was delegated, what liability does the original debtor incur?
In the context of novation, what happens if the original obligation was void?
In the context of novation, what happens if the original obligation was void?
How are accessory obligations affected by novation?
How are accessory obligations affected by novation?
When there is a change in the identity of the creditor, how can it be legal?
When there is a change in the identity of the creditor, how can it be legal?
How can a change in the identity of the creditor occur under a conventional arrangement?
How can a change in the identity of the creditor occur under a conventional arrangement?
What court action applies to obligations that are void from the beginning?
What court action applies to obligations that are void from the beginning?
What is the primary basis for the extinguishment of obligations?
What is the primary basis for the extinguishment of obligations?
What is compensation in the context of obligations?
What is compensation in the context of obligations?
What is a requisite for compensation to take place?
What is a requisite for compensation to take place?
Can a debtor set up compensation against a new creditor if the original creditor assigns their rights to another person?
Can a debtor set up compensation against a new creditor if the original creditor assigns their rights to another person?
What happens when two persons are creditors and debtors of each other?
What happens when two persons are creditors and debtors of each other?
What is the effect of compensation on the debts of two persons?
What is the effect of compensation on the debts of two persons?
