Novation

^ The substitution of one debtor for another, or of a new for an old obligation, which is thereby extinguished.^ The doctrine is of civil-law origin. The commonlaw equivalent is " assignment " or " merger." The requisites are: a previous valid obligation; agreement of all parties to the new contract; extinr guishment of the old contract; and a valid new contract.* In the civil law, the substitution may be in the debt, the debtor, or the creditor.^ The new creditor may maintain an action in his own name, founded upon the assignment and the express promise of the debtor to pay him. Without this promise, the assignee m ust sue in the name of the assignor. ^ See Assignment, 2; Delegation, 2.