Art. 1291.

Obligations may be modified by:

• (1)Changingtheirobjectorprincipalconditions;
• (2)Substitutingthepersonofthedebtor;
• (3)Subrogatingathirdpersonintherightofthecredit.
Novation - the substitution or change of an obligation by another, which extinguishes or modifies
the first, either changing its object or principal condition, or substituting another in place of the
debtor, or subrogating a third person in the right of the creditor.
Principal Conditions - a change in the period to comply with the obligation, which change in the
period would only be partial novation, since the period merely affects the performance, not the
creation of the obligation.
• Purpose or Function of Novation - juridical act of dual function in that at the time it
extinguishes an obligation, it creates a new one in lieu of the old. Proper novation extinguishes
an obligation, a partial, modificatory imperfect novation merely modifies the old obligation.
•
Kinds of Novation –
• (a)AccordingtoItsObjectorPurpose
 1) Real or Objective — (changing the object or the principal conditions of the
obligation). (Art. 1291, par. 1).
 2) Personal or Subjective — (Change of Persons)
 A) Substituting the person of the debtor (Expromision or Delegacion)
 B) Subrogating a third person in the rights of the creditor (change of creditor may be by
agreement — “conventional subrogation,” or by operation of law — “legal subrogation”)
• 3)Mixed(ChangeofObjectandParties)
• (b)AccordingtotheFormofItsConstitution
• 1)express
• 2)implied(whenthetwoobligationsareessentiallyincompatiblewitheachother) •
(c)AccordingtoItsExtentorEffect
• 1)totalorextinctivenovation—(whentheoldobligationiscompletelyextinguished) •
2)partialormodificatory—(imperfectorimpropernovation)
• Requisites for Novation
• (a) The existence of a VALID old obligation.
 1) If the old obligation is VOID or NON-EXISTENT, nothing to novate.
  2) If the old obligation is VOIDABLE, novation is still possible provided the obligation
has not yet been annulled. (Art. 1298, Civil Code).
 (b) The intent to extinguish or to modify the old obligation by a substantial difference.
 (c) The capacity and consent of all the parties.
 (d) The validity of the new obligation.

NovationIsNotOneoftheMeansRecognizedbytheRevisedPenalCodeWherebyCriminal Liability
can be Extinguished.