BUSINESS LAW 1

CHAPTER 4 SECTION 6 - 1 ASSIGNMENT

KAREN AGUINALDO LUBA
kareeeenluba@gmail.com
OUBA – Marketing Management
1312157

DEFINITIONS

1. NOVATION – Is the act of replacing an obligation to perform with another obligation; or adding an
obligation to perform; or replacing a party to an agreement with a new party.
2. MIXED NOVATION – When the object and/or principal conditions of the obligation and the
debtor or the credit, or both the parties, are changed. It’s a combination of real and personal
novations.
3. EXPROMISSION – The act by which a creditor accepts a new debtor, who becomes bound
instead of the old, the latter being released.
4. DELAGACION – is substitution made at the instance of old debtor.

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DISCUSSIONS

o.
1. Give the requisites of novation.rs e
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ANSWER:
A previous valid obligation, capacity and intention of the parties to modify or extinguish the
obligation, modification or extinguishment of the obligation and creation of a new obligation.
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2. When there is subrogation, what rights are acquired by the new creditor?
vi y re

ANSWER:
According to Art. 1293, states that subrogation with new debtor with original one may be
made even without the knowledge or against the will of the latter but not without the consent fo the
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creditor.
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3. In novation, give the effect where:

a. The new obligation is violable
ANSWER:
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Novation can take place. But if annulled, the novation must be considered as not having taken
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place and the original one can be enforced, unless the intention of the parties is otherwise.

b. The old obligation is voidable

ANSWER:
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Novation cannot take place because there is nothing to novate. However, if the original is only
voidable or validated by ratification, the novation is valid.

4. In novation, are accessory obligations necessarily extinguished? Explain.

ANSWER:
No. Only the principal obligations unless otherwise agreed upon by parties.

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 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?
ANSWER:
Yes.

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?
ANSWER:
No. Because C consented that T will substitute for D even if T is insolvent.

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3. T paid C the debt of D without objection from the latter. What are the

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rights of T?

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ANSWER:

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The rights of T are he can go after D in case there is an agreement of both parties to reimburse

o.
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4. Illustrate a mixed novation. When T or third party assumes the liability of
D and C the creditor agrees to it. Or when C designates T to be the
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recipient of payment of the debt of D because C owes T similar amount.

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ANSWER:
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