Article 1327 of the French Civil Code
November 7, 2023
A debtor may, with the agreement of the creditor, assign his debt. The assignment must be evidenced in writing, on pain of nullity.
A debtor may, with the agreement of the creditor, assign his debt. The assignment must be evidenced in writing, on pain of nullity.
If the creditor has agreed to the assignment in advance and has not intervened in it, he may only invoke it or rely on it from the day on which it was notified to him or as soon as he has taken note of it.
If the creditor expressly consents, the original debtor is discharged for the future. Failing this, and unless otherwise agreed, they are jointly and severally liable for payment of the debt.
The substituted debtor, and the original debtor if he remains liable, may raise against the creditor the defences inherent in the debt, such as nullity, the defence of non-performance, resolution or set-off of related debts. Each party may also raise exceptions that are personal to him.
Where the original debtor is not discharged by the creditor, the security interests survive. Otherwise, the securities granted by the original debtor or by third parties only survive with their agreement. If the assignor is discharged, his joint and several co-debtors remain liable after deducting their share of the debt.
Novation is a contract whose purpose is to substitute for an obligation, which it extinguishes, a new obligation which it creates. It can take place by substitution of obligation between the same parties, by change of debtor or by change of creditor.
Novation cannot be presumed; the intention to effect it must be clear from the instrument.
Novation takes place only if both the old obligation and the new obligation are valid, unless its declared object is to substitute a valid undertaking for an undertaking which is vitiated by a defect.
Novation by change of debtor may be effected without the involvement of the first debtor.
Novation by change of creditor requires the debtor’s consent. The latter may, in advance, agree to the new creditor being designated by the first creditor.
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182, rue de Rivoli
75001, Paris France
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is a Registered Trademark of
PETROFF LAW FIRM (SELARL LEGASTRAT)
182, rue de Rivoli
75001, Paris France
RCS Paris n°814433470
Paris Bar Registration n° (Toque) C2396
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