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1. Substitution is upon the initiative or proposal of the old debtor himself by proposing to
the creditor the entry of another (third person) as the new debtor who will replace him in
payment of the obligation;
2. The creditor accepts, and the new debtor agrees to the proposal of the old debtor; and
3. The old debtor is released from the obligation with the consent of the creditor.
Requisites of expromission:
1. Substitution is upon the initiative or proposal of a third person who will step into the
shoes of the debtor;
2. Creditor must give his consent to the proposal of the third person; and
3. Old debtor must be released from the obligation with the consent of the creditor.
effective of novation
1. Extinguishment of principal also extinguishes the accessory, except:
a. Mortgagor, pledgor, surety, or guarantor agrees to be bound by the new obligation
b. The stipulation made in favor of a third person such as stipulation pours atrui unless the
beneficiary consents to the novation.
2. If the old obligation is:
a. Void – Novation is void (NCC, Art. 1298)
For The example, M agreed to give a new cellphone to N. Later on, it was agreed that M
would pay N P10,000 instead of giving a new cellphone
The novation is void because the original obligation is void.
b. Voidable – Novation is valid provided that the annulment may be claimed only by the
debtor or when ratification validates acts (NCC, Art. 1298).
suppose N was induced through fraud committed by M to sign a contract N obliged himself
to give a house to M. Subsequently, it was agreed between N and M that N would give M
4,000,000 instead of the house.
the original obligation of N is voidable. but as it has not yet been annulled at the instance of
N, the second contract is valid
c. If the old obligation was subject to a suspensive or resolutory condition, the new
obligation shall be under the same condition, unless it is otherwise stipulated. (NCC, Art.
1299).
A binds herself to deliver the car to B if B passes the board exam. but this obligation was
suspensive because of the pandemic.
Subsequently, it was agreed between A and B that she will be given another chance to take a
board exam.
In this case, The new obligation is under the same condition.