Sections
4 entriesSection 1530Defines novation as the substitution of a new obligation for an existing obligation. The new obligation replaces the prior one rather than…Section 1531Defines novation as replacing an existing obligation with a new one between the same parties intending to extinguish the old obligation, substituting…Section 1532Requires a novation to be created by contract and subjects it to the general rules governing contracts. A substitution intended to operate…Section 1533Allows a creditor to rescind acceptance of a third person’s obligation or order as satisfaction if the debtor prevents performance, if the…