Page 44 - Obligations & Contracts Module 1-2

PERSONAL/SUBJECTIVE NOVATION

1. Substituting person of debtor ( passive )

EXPROMISION; initiative is from 3rd person or new debtor; new debtor & creditor to

consent; old debtor released from obligation; subject to fullreimbursement & subrogation

if made w/ consent of old debtor; if w/o consent or against will , only beneficial

reimbursement; if new debtor is insolvent, not responsible since w/o his consent

DELEGACION; initiative of old debtor; all parties to consent; full reimbursement; if insolvent

new debtor – not responsible old debtor because obligation extinguished by valid

novation unless: insolvency already existing & of public knowledge or know to him at time

of delegacion

a. Delegante – old debtor

b. Delegatario - creditor

c. Delegado – new debtor

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

a. conventional- agreement & consent of all parties; clearly established

b. legal- takes place by operation of law; no need for consent; not presumed except as

provided for in law: presumed when-

1. creditor pays another preferred creditor even w/o debtor’s knowledge

2. 3rd person not interested in obligation pays w/ approval of debtor

3. person interested in fulfillment of obligation pays debt even w/o knowledge of debtor