Commentary

61 Novation a complete release

CHOSES IN ACTION vol 7
| Commentary

61 Novation a complete release

| Commentary

61 Novation a complete release

Novation operates as a complete release and extinguishes the liabilities, obligations and interests of all the parties under the original contract, which is determined and replaced by the new contract. It follows that there is no right of recourse to the retiring party who has been released in consideration, inter alia, of his providing another person who is willing to undertake the liability formerly borne by him1.

Where the liability for an old debt is transferred to a new debtor, the promise by the new debtor to pay the amount due to

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