12 Questions
What is the dual function of novation as described in the text?
To extinguish or modify an existing obligation and substitute a new one
What distinguishes novation from other modes of extinguishing obligations?
It substitutes a new obligation in place of an existing one
Which kind of novation takes place by operation of law?
Legal novation
In novation, what does conventional novation refer to?
Novation that arises through agreement of the parties
What characterizes implied novation?
The old and new obligations are essentially incompatible
According to extent or effect, what does total or extinctive novation mean?
The original obligation is completely extinguished
What are the essential requisites of novation?
Existence of a previous valid obligation, intention or agreement to modify, extinguishment or modification of the obligation, creation of a new obligation
In what situation is real or objective novation said to have occurred?
When the object or principal conditions of the obligation are changed
How can novation be declared according to Art. 1292?
In unequivocal terms or by having old and new obligations incompatible with each other
When can novation be presumed?
Never, novation must be clearly and unmistakably established
What is required for novation which involves substituting a new debtor for the original one according to Art. 1293?
Consent of the creditor
What type of novation is a combination of real and personal novations?
Mixed novation
Study Notes
Novation
- Novation is the total or partial extinction of an obligation through the creation of a new one which substitutes it.
- Novation is a contract containing two stipulations: one to extinguish or modify an existing obligation, and the other to substitute a new one in its place.
Kinds of Novation
- According to origin:
- Legal novation: takes place by operation of law
- Conventional novation: takes place by agreement of the parties
- According to how it is constituted:
- Express novation: declared in unequivocal terms
- Implied novation: old and new obligations are essentially incompatible with each other
- According to extent or effect:
- Total or extinctive novation: old obligation is completely extinguished
- Partial or modificatory novation: old obligation is merely modified
- According to the subject:
- Real or objective novation: object or principal conditions of the obligation are changed
- Personal or subjective novation: person of the debtor is substituted and/or a third person is subrogated in the rights of the creditor
- Mixed novation: combination of real and personal novations
Requisites of Novation
- Existence of a previous valid obligation
- Intention or agreement and capacity of the parties to extinguish or modify the obligation
- Extinguishment or modification of the obligation
- Creation or birth of a valid new obligation
Characteristics of Novation
- Novation is never presumed and must be clearly and unmistakably established by express agreement or by the acts of the parties
- No form of words or writing is necessary to give effect to a novation
Test your knowledge of novation according to Article 1291 of the Philippine Civil Code. This quiz covers the definitions and examples of novation as a legal concept in obligations.
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