§ 1531 Debt Obligation Substitution

Civil Code·California

AI SummaryVerified

This law explains when a contract can be changed by swapping in a new person or obligation instead of the old one, making the old one disappear.

Key Takeaways

•A novation replaces an old promise or debt with a new one.
•The old promise is completely erased when the swap happens.
•All parties must agree to the change for it to be valid.

Example

Imagine you owe your friend $10, but you and your friend agree that your cousin will pay the $10 for you, and you both want the original debt to go away.

The law says this kind of swap is called a 'novation' and it works when everyone agrees that the old debt is finished and the new person now has to pay instead.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 1531 Debt Obligation Substitution

Novation is made: 1. By the substitution of a new obligation between the same parties, with intent to extinguish the old obligation; 2. By the substitution of a new debtor in place of the old one, with intent to release the latter; or, 3. By the substitution of a new creditor in place of the old one, with intent to transfer the rights of the latter to the former. (Enacted 1872.)

Last verified: January 9, 2026

Key Terms

Novation substitution obligation debtor creditor

References

Official text at leginfo.legislature.ca.gov
California Legislature. Civil Code. Section 1531.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References