California CodesCivil Code - CIVDivision 3 — ObligationsPart 1 — Obligations in GeneralTitle 4 — Extinction of ObligationsChapter 5 — Novation [1530 – 1533]Section 1533
Section Fifteen Hundred and Thirty-three. When the obligation of a third person, or an order upon such person is accepted in satisfaction, the creditor may rescind such (such) acceptance if the debtor prevents such person from complying with the order, or from fulfilling the obligation; or if, at the time the obligation or order is received, such person is insolvent, and this fact is unknown to the creditor, or if, before the creditor can with reasonable diligence present the order to the person upon whom it is given, he becomes insolvent.
Notes
Allows a creditor to rescind acceptance of a third person’s obligation or order as satisfaction if the debtor prevents performance, if the third person was insolvent when accepted and the creditor did not know it, or if that person becomes insolvent before the creditor can present the order with reasonable diligence.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § [1533.] | https://laws.lexinter.net/codes/california/civil-code/division-3/part-1/title-4/chapter-5/section-1533