NOVATION

Novatlon is the substitution of a new debt or obligation for an existing one. Clv. Code Cal. § 1530; Civ. Code Dak. § 863; Hard v. Burton, 62 Vt. 314, 20 At!. 269; McCartney v. Kipp, 171 Pa. 644, 33 Atl. 233; McDonnell v. Alabama Gold L. Ins. Co., 85 Ala. 401, 5 South. 120; Shafer's Appeal, 99 Pa. 246. Novation is a contract, consisting of two stipulat1ons,--0ne to extinguish an existing obligation; the other to substitute a new one In its place. Civ. Code La. art. 2185. The term was originally a technical term of the civil law, but is now In very general use In English and American jurisprudence. In the civil law, there are three kinds of novation: (1) Where the debtor and creditor remain the same, but a new debt takes the place of the old one; (2) where the debt remains the same, but a new debtor is substituted; (3) where the debt and debtor remain, but a new creditor Is substituted. Adams v. Power, 48 Mi . 451. [s. 839]