Practice question
A creditor accepts an additional collateral undertaking that expressly preserves the original debt. No incompatible term or express extinction is established. The debtor argues the original debt has been novated out of existence. Resolve the argument.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, articles 1291–1292 and 1296–1299.
- https://lawphil.net/judjuris/juri2024/aug2024/gr_217368_2024.html — Ruby Shelter Builders and Realty Development Corporation v Tan, GR 217368, August 5 2024, main opinion: extinctive novation is not presumed.
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