Novation

Question 1

What are the functions of novation?

Answer 1

1. To extinguish an existing obligation
2. To substitute a new one in it’s place

Question 2

Requisites of novation

Answer 2

1. There must be a previous valid obligation.
2. There must be an agreement between the parties to extinguish the obligation.
3. There must be the extinguishment of the old obligation.
4. There must be validity of new obligation

Question 3

What are the kinds of novation according to object or purpose?

Answer 3

1. Real or objective
2. Personal or subjective
3. Mixed or changed of object and parties of the obligation

Question 4

Novation by changing the object or principal condition

Answer 4

Real or Obejctive

Question 5

Novation by change of the parties

Answer 5

Personal or subjective

Question 6

When a third person initiates the substitution and assumes the obligation even without the knowledge or against the will of the debtor.

Answer 6

Expromision

Question 7

True or False. Substituting the person of the debtor is always with the creditor’s consent

Answer 7

True

Question 8

Im case of expromision, the new debtor has the rights to_____

a. All the rights of the creditor
b. Only the right to recover as much as the payment has been beneficial to the debtor
c. What he has paid for including the damages

Answer 8

B

Question 9

In the expromision, if the new debtor is insolvent or does not fulfill his obligation, which of the following is true:

A. The creditor has the right to demand payment from the original debtor.
B. The original debtor is partially liable and shall pay at least half of his debt to the debtor.
C. The original debtor is released from the liability whether the obligation is without the debtor’s knowledge or against his will or it was consented to him

Answer 9

C

Question 10

The debtor initiates the substitution.

Answer 10

Delegacion

Question 11

When the debtor initiates the substitution, there should be a consent from all the parties. True or False?

Answer 11

True

Question 12

In case of delegacion, the new debtor, if he makes payment, can _____.

a. Recover what he has paid
b. Be entitled to subrogation
c. Both A and B

Answer 12

C

Question 13

In delegacion, when the new debtor is insolvent, the creditors right is not revived except:

I. When the substitution among the debtors are against the will of the original debtor.
II. When the insolvency of the new debtor was already existing and of public knowledge at the time the debtor delegated his debt.
III. When the insolvency of the new debtor was already existing and known to the original debtor at the time he delegated his debt.

A. I only
B. I, II, III
C. II and III
D. I and II

Answer 13

C

Question 14

Transfers to the third person the credit with all the rights appertaining thereto.

Answer 14

Subrogation

Question 15

What are the 2 kinds of subrogation

Answer 15

Conventional and legal subrogation

Question 16

A kind of subrogation where there is a change of creditor by the agreement of the parties

Answer 16

Conventional

Question 17

Subrogation by the operation of the law

Answer 17

Legal subrogation

Question 18

Legal or Conventional Subrogation?

A creditor pays another creditor who is preferred even without the debtor’s knowledge.

Answer 18

Legal

Question 19

Legal or Conventional?

When a third person, not interested in the obligation pays with the express or tacit approval of the debtor

Answer 19

Legal

Question 20

Legal or Conventional Subrogation

The original parties and the new creditor agreed to change the creditor

Answer 20

Conventional

Question 21

Legal or conventional?

A person interested in the fulfillment of the obligation pays without prejudice to the effects of the confusion as to the letter’s share even without the knowledge of the debtor

Answer 21

Legal

Question 22

Kind of novation wherein there is a change of object and parties to the obligation

Answer 22

Mixed Novation

Question 23

What are the types of novation according to form?

Answer 23

Express and implied

Question 24

This novation is declared in unequivocal terms. The parties incontrovertibly disclose that their object in executing the new contract is to extinguish the old one.

Answer 24

Express

Question 25

When the old and new obligation are on every point incompatible with each other

Answer 25

Implied Novation

Question 26

The obligation is totally extinguished. Example is when an obligation to pay a sum of money is replaced by an obligation to give a diamond ring

Answer 26

Total or Extinctive Novation

Question 27

The old obligation still remain in force except as it has been modified

Answer 27

Partial or modificatory

Question 28

True or Flase. In Novation, when the principal obligation is extinguished so is the accessory obligations

Answer 28

True

Question 29

The following are the exceptions on the extinguishment of the accessory obligation when the principal obligation is extinguished except: A. When the accessory is for the benefit of the third person who did not give their consent. B. When there is a stipulation that the accessory obligation will subsist. C. When the novation is one where a third person is subrogated in the rights of the creditor. D. When the creditor pays another creditor who is preferred even without the knowledge of the debtor.

Answer 29

D.

Question 30

True or False. If the new obligation is void, the novation subsist.

Answer 30

False. The novation is also void

Question 31

When the original obligation is void, the novation is void

Answer 31

True. There's nothing to novate

Question 32

If the original obligation is subject to a suspensive or resolutory condition, the new obligation will also be subject to the condition imposed to the original obligation unless otherwise stipulated by the parties

Answer 32

True