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FRANKLIN L. FLORES
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AQUINTEY VS TIBONG
* The court herein held that there was no novation.
Court proceeded to differentiate novation from dacion in
payment which is one of the legal causes to which an
assignment of credit may be effected. Court referred to art.
1292 which proves that in order for an obligation to be
extinguished by another which substitutes the same, it is
imperative that it be declared in unequivocal terms or that the
new and old obligation on every point be incompatible with
one another. Further, court cited the case of Iloilo Traders v
Heirs of Soriano in which it discussed the two types of
novation: extinctive and modificatory. Under an extinctive
novation, there is a complete extinguishment of the original
obligation which shall be effected upon concurrence of these
four requisites: 1.) that there is a previous valid obligation, 2.)
that there is agreement of all the parties concerned to a new
contract 3.) that there is extinguishment of the old obligation,
and 4.) that there is birth of a new valid obligation.
On the other hand, a modificatory novation is one in which the
subsequent change in the agreement is incidental to the main
obligation such as a change in the rate of interest or the
extension of time to pay.
Court then further cited art. 1293 which provides for novation
by virtue of delegacion. Said article states that novation which
consists in substituting a new debtor in the place of the
original one may be made even without the knowledge of the
latter, but not without the consent of the creditor. Further
citing the case of City National Bank v Fuller, court herein
stated that in delegacion, the new debtor contracts with the
old debtor that he will pay the debt while the creditor agrees
to accept the new debtor for the old. Hence, for there to be
extinguishment of the old obligation by delegacion, it is
necessary that the old debtor is relieved of the obligation and
that third person or new debtor takes his place.
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