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The Legal Basis for the Requisites of Novation in the Philippines

 The legal basis for the requisites of novation in the Philippines is primarily found in the Civil Code of the Philippines (Republic Act 386). Here's the specific provision:

  • Article 1292 of the Civil Code of the Philippines: "In order that an obligation may be extinguished by another which substitutes the same, it is imperative that it be so declared in unequivocal terms, or that the old and the new obligations be on every point incompatible with each other."

Explanation

This article outlines the four essential elements required for a valid novation:

  1. A previous valid obligation: The original contract needs to be legally binding.
  2. Agreement of all the parties to the new contract: Explicit or implied intention to create a new contract is needed.
  3. Extinguishment of the old contract: The old contract ceases to exist.
  4. Validity of the new one: The new contract must meet all requirements for enforceability.

Important Note: Remember that court decisions (jurisprudence) have significantly shaped how these code provisions are interpreted and applied in specific cases. Consulting a Philippine lawyer is always recommended for a full understanding of novation.

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Location: Davao City, Davao del Sur, Philippines

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