Section 6: Novation

What are 2 kinds of novation? Distinguish.

(1) Extinctive

Obligations may be altered by changing their object or principal conditions,
substituting the person of the debtor, or subrogating a third person in the rights of
the creditor

It is extinctive when the old obligation is extinguished by the creation of a new
one that takes the place of the former

(2) Modificatory

by making any change in any of the elements of an obligation

the old obligation subsists, as amended, to the extent it remains compatible with
the novatory agreement.

New agreement is intended to give life to an old agreement. Is this novation?

No novation of a contract occurs when the new agreement entered into between
the parties is intended to give life to the old one (Huibonhoa vs. Court of
Appeals, 117 SCAD 281, 320 SCRA 625).