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Primary Legal Basis for Novation in the Philippines

 Civil Code of the Philippines (Republic Act 386)

Novation is primarily defined and regulated under the Civil Code of the Philippines. The key provisions are:

  • Article 1291: Outlines the concept of novation and its methods:
    • "Obligations may be modified by: (1) Changing their object or principal conditions; (2) Substituting the person of the debtor; (3) Subrogating a third person in the rights of the creditor."
  • Article 1292: Establishes the four essential requirements of novation.
  • Article 1293: Deals with novation by substituting a new debtor.
  • Article 1294: Addresses the effects of novation on accessory obligations.
  • Article 1295: Discusses when novation takes place.
  • Article 1296: Covers the presumption against novation.

Relevant Jurisprudence

In addition to the Civil Code provisions, there have been significant Supreme Court decisions that have further interpreted and shaped the application of novation in the Philippines. Some notable cases include:

  • Antonio Garcia, Jr. v. Court of Appeals, et al. (G.R. No. 80201, November 20, 1990)
  • Sps. Francisco and Ruby Reyes v. BPI Family Savings Bank, Inc. (G.R. NOS. 149840-41)
  • Arco Pulp and Paper Co., Inc. and Candida A. Santos v. Dan T. Lim (G.R. No. 206806, June 25, 2014)

Remember: Consulting a Philippine attorney is crucial for case-specific advice and to understand the full interplay between the Civil Code and how court decisions have shaped the practical application of novation in the country.

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Location: Davao City, Davao del Sur, Philippines

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