Novation

Definition in English: Novation extinguishes or modifies an existing obligation by replacing it with a new one through a change in the object or principal conditions, substitution of the debtor, or subrogation of a third person in the creditor’s rights.

Paliwanag sa Filipino: Pagpapalit o mahalagang pagbabago ng obligasyon — Pagpatay o pagbabago sa dating obligasyon sa pamamagitan ng bago at malinaw na hindi magkatugmang obligasyon o pagpapalit ng partido.

Legal basis

Civil Code Articles 1291 to 1304. The rule must be read together with applicable amendments and controlling Supreme Court decisions.

What this term means

  • Novation is never presumed; the intent to extinguish the old obligation must be clear or the old and new obligations must be incompatible in every point.
  • A simple change in payment arrangements does not automatically constitute extinctive novation.
  • The validity of the new obligation and the consent required for substitution or subrogation must be examined.

Example

A creditor merely extends the due date of a loan. Unless the parties clearly extinguish and replace the original obligation, that extension alone may not amount to novation.

Related civil law terms

Solidary Obligation · Default Or Delay · Contract Of Sale

What to read next

When a new agreement replaces an old obligation · Browse obligations content · Return to the Civil Law Glossary

Important note

This glossary entry is an educational explanation of Philippine civil law. The English definition states the primary legal concept. The Filipino explanation is provided to make the concept easier to understand and is not an official translation of the Civil Code, Rules of Court or Supreme Court decisions. Consult the controlling legal text and qualified counsel for a specific dispute.

Jurisdiction: Philippines
Last reviewed: September 2026