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Questions and Answers
What is the essential effect of novation on an existing obligation?
What is the essential effect of novation on an existing obligation?
- Temporary suspension of the obligation's enforceability.
- Partial reduction of the debt owed under the obligation.
- Modification of interest rates.
- Total or partial extinction of an obligation through the creation of a new one. (correct)
Which of the following best describes the role of 'unequivocal terms' in the process of novation?
Which of the following best describes the role of 'unequivocal terms' in the process of novation?
- They determine the monetary value of the old obligation.
- They permit implied agreements.
- They are only used when debtors don't agree.
- They clarify the intentions of the parties and ensure the old and new obligations are incompatible. (correct)
Which action constitutes a modification of obligation as per Article 1291?
Which action constitutes a modification of obligation as per Article 1291?
- Extending the payment deadline by few days.
- Changing the goods to be delivered under the contract. (correct)
- Negotiating a different currency for debt payment.
- Changing the address where payments should be sent.
What is the legal position on presuming novation?
What is the legal position on presuming novation?
In what way is implied novation determined?
In what way is implied novation determined?
Which scenario exemplifies total or extinctive novation?
Which scenario exemplifies total or extinctive novation?
Which element is crucial for a valid novation to occur?
Which element is crucial for a valid novation to occur?
How do 'capacity' and 'intention' relate to the requisites of novation?
How do 'capacity' and 'intention' relate to the requisites of novation?
In what context would the 'extinguishment of the obligation' be a requisite?
In what context would the 'extinguishment of the obligation' be a requisite?
What constitutes a 'creation of new valid obligation' as a requisite of novation?
What constitutes a 'creation of new valid obligation' as a requisite of novation?
Which of the following actions does not modify obligations?
Which of the following actions does not modify obligations?
Which type of novation is determined by the law?
Which type of novation is determined by the law?
What distinguishes express novation from other forms of novation?
What distinguishes express novation from other forms of novation?
Which situation would most clearly demonstrate implied novation?
Which situation would most clearly demonstrate implied novation?
Why is 'intention of the parties' important in understanding novation?
Why is 'intention of the parties' important in understanding novation?
Which scenario aligns with subrogating a third person in the rights of the creditor?
Which scenario aligns with subrogating a third person in the rights of the creditor?
Considering total or extinctive novation, what happens to the original obligation?
Considering total or extinctive novation, what happens to the original obligation?
How does changing principal conditions lead to a modified obligation?
How does changing principal conditions lead to a modified obligation?
In what circumstance could the incompatibility of two obligations be most conclusively determined?
In what circumstance could the incompatibility of two obligations be most conclusively determined?
How can one distinguish between legal and conventional novation?
How can one distinguish between legal and conventional novation?
Flashcards
What is novation?
What is novation?
Total or partial extinction of an obligation by creating a new one that substitutes it.
How are obligations modified?
How are obligations modified?
Obligations can be modified by changing their object/conditions, substituting the debtor, or subrogating a third party.
Requisites of novation
Requisites of novation
Existing valid obligation; capacity and intention of parties; extinguishment of old obligation; and creation of new valid obligation.
Is novation presumed?
Is novation presumed?
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Kinds of Novation: Origin
Kinds of Novation: Origin
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Kinds of Novation: Constitution
Kinds of Novation: Constitution
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Kinds of Novation: Extent/Effect
Kinds of Novation: Extent/Effect
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Express Novation
Express Novation
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Implied Novation
Implied Novation
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Total or Extinctive Novation
Total or Extinctive Novation
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Study Notes
- Novation is the total or partial extinction of an obligation via the creation of a new one that substitutes the old.
- Obligations can be modified by:
- Changing their object or principal conditions.
- Substituting the debtor.
- Subrogating a third person in the creditor's rights.
- For an obligation to be extinguished by another, the substitution must be declared in unequivocal terms.
- The old and new obligations must be incompatible on every point.
Requisites of Novation
- Existing valid obligation.
- Capacity and intention of the parties to modify the obligation.
- Extinguishment of the obligation.
- Creation of a new valid obligation.
- Novation is never presumed; it must be clearly and unmistakably established.
- Establishment occurs through express agreement or incompatibility of the two obligations in every material aspect.
Kinds of Novation
- As to origin:
- Legal
- Conventional
- As to constitution:
- Express: when the new obligation declares in unequivocal terms that the old obligation is extinguished.
- Implied: when the new obligation is essentially incompatible with the old one on every point.
- As to extent or effect:
- Total or extinctive: when an old obligation is terminated by creating a new one that takes its place.
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