Page 43 - Obligations & Contracts Module 1-2

*EFFECT OF NOVATION:

a. extinguishment of principal carries accessory, except:

- stipulation to contrary

- stipulation pour autri unless beneficiary consents

- modificatory novation only; obliged to w/c is less onerous

- old obligation is void

b. old obligation subsists if:

- new obligation is void or voidable but annulled already ( except: intention of parties )

c. if old obligation has condition

- if Resolutory & it occurred –old obligation already extinguished; no new obligation since

nothing to novate

- if suspensive & it never occurred –as if no obligation; also nothing to novate

d. if old obligation has condition, must be compatible with the new obligation; if new is w/o

condition – deemed attached to new

e. if new obligation has condition

- if resolutory: valid

- if suspensive & did not materialize: old obligation is enforced

*KINDS:

a. REAL/OBJECTIVE – change object, cause/consideration or principal condition

b. PERSONAL/SUBJECTIVE -

1. substituting person of debtor ( passive )

2. subrogating 3rd person to rights of creditor ( active )