Section 6

NOVATION
Presented by:
Dela Rea, Kimmi
Navales, Reihnier

Definition of Terms
Novation - the act of either, replacing an obligation to
perform with a new obligation or replacing a party to an
agreement with a new party.
Incurred - To become liable or subject to through ones own
action.
Unequivocal - Expressed in a clear and certain way

Article 1291
Obligations may be modified by:
(1) Changing their object or principal conditions;
(2) Substituting the person of the debtor;
(3) Subrogating a third person in the rights of the
creditor. (1203)

Article 1292
In order that an obligation may be extinguished by
another which substitutes the same, it is imperative that
it be so declared in unequivocal terms, or that the old
and the new obligations be on every point incompatible
with each other. (1204)

Article 1293
Novation which consists in substituting a new debtor
in the place of the original one, may be made even
without the knowledge or against the will of the latter,
but not without the consent of the creditor. Payment by
the new debtor gives him the rights mentioned in articles
1236 and 1237. (1205a)

Article 1294
If the substitution is without the knowledge or against
the will of the debtor, the new debtors insolvency or nonfulfillment of the obligation shall not give rise to any
liability on the part of the original debtor.

Problems
1. T (third person) tells C (creditor) that T will pay the
debt of D (debtor). C agrees. Is D released from his
obligation to C?
2. Suppose in the above problem, D proposed to C that T
would substitute D as the new debtor to which C
agreed. Is D still liable to C in case of insolvency of
T?

*Insolvency- the state of being unable to pay the money owed, by a person or
company, on time

Answer to Problem 1

Answer to Problem 2