The extinction of the old obligation extends to all its accessories. As an exception, the original collateral may be reserved to secure the new obligation with the consent of the third-party guarantors.
Novation agreed between the creditor and one of the joint and several debtors discharges the others. A novation agreed between the creditor and a guarantor does not release the principal debtor. It releases the other sureties to the extent of the contributory share of the one whose obligation has been novated.
Delegation is a transaction by which one person, the delegator, obtains from another, the delegate, an obligation to a third, the delegatee, who accepts it as a debtor. The delegate may not, unless otherwise stipulated, set up against the delegatee any exception drawn from its relationship with the delegator or from the relationship between the delegator and the delegatee.
Where the delegator is a debtor of the delegatee and the delegatee’s intention to discharge the delegator is expressly stated in the deed, the delegation constitutes novation. However, the delegator remains bound if it has expressly undertaken to guarantee the future solvency of the delegate or if the delegate is subject to a procedure for the discharge of its debts at the time of the delegation.
Where the delegator is indebted to the delegatee but the delegatee has not discharged him of his debt, the delegation gives the delegatee a second debtor. Payment made by one of the two debtors discharges the other, to the same extent.
Where the delegating party is a creditor of the delegatee, its claim is extinguished only by the performance of the delegatee’s obligation to the delegatee and in due proportion.
The mere indication by the debtor of a person designated to pay in his place does not entail novation or delegation. The same applies to the mere indication made by the creditor of a person designated to receive payment on his behalf.
The creditor is entitled to the performance of the obligation; he may compel the debtor to do so under the conditions laid down by law.
Where the failure of the debtor to exercise his rights and actions of a proprietary nature compromises the rights of his creditor, the latter may exercise them on behalf of his debtor, with the exception of those which relate exclusively to his person.
The creditor may also act in his own name to have acts performed by his debtor in fraud of his rights declared unenforceable against him, provided that he establishes, in the case of an act for valuable consideration, that the third party contracting with him had knowledge of the fraud.
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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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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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