Petterson vs Azada, 8 Phil 432
Subject: Obligations and Contracts
FACTS
A owed C P500 and
P3000 evidenced by two promissory notes. Later, a new loan of P300 was
obtained. By express agreement, the three debts were consolidated into one
promissory note for P3,800 (P500 plus P3,000 and P300). That the last
promissory note was to take the place of the others was agreed upon.
ISSUE
Whether or not
there was novation in this case.
RULING
Yes, there was
novation in this case in view of the changes made.
Under the law
(Art 1292, NCC), in order that an obligation may be extinguished by another
which substitute the same, it is imperative that it be so declared in
unequivocal terms, or that the old and the new obligation be on every point
incompatible with each other.
In this case, had
there been no proof that the third note intended to replace the others, there
really would be nothing inconsistent with having different notes for different
amount. If there is no novation, all the obligation would remain subsisting and
the other would be liable for all.
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