Practice question
A loan amendment changes only the payment venue, expressly retains the existing debt and security, and introduces no incompatible duty. Does the new document alone establish extinctive novation?
- Yes, every later document replaces the whole obligation.
- No, its compatible terms and express preservation do not establish extinction of the original debt.
- Yes, a change of venue always cancels security.
- Yes, a document entitled amendment necessarily means complete replacement.
- No, because obligations can never be modified.
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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