Page:United States Statutes at Large Volume 47 Part 1.djvu/1214

 1190 An te, pp. 1185,1188 ; post, p. 1293. Novation. SEC. 482. NOVATION, WHAT .-Novation is the substitution of a new obligation for a n existing one. Post, p. 1191. Modes of. Novation a contract. Rescission of. Release. Obligation extin- Sxc . 486 . OBLIGATION EXTINGUISHED BY RELEASE :An o bligation v 71R>zad by. is extin guished by a rel ease the refrom g iven to t he debto r by the creditor, upon a new consideration, or in writing, with or without new consideration. CROSS REFEBENCB Writing imports a consideration, see section 534. Post, p.1195. Ge ner al release, SEC. 487. CERTAIN CLAIMS NOT AFFECTED BY GENE RAL RFT,FASE ; claims not affected by. A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. Release o[ one o[ sev SEC. 488 . RET,FASE OF ONE OF SEVERAL JOINT DEBTORS .-.A. release of eral joint debtors, one of two or more joint debtors does not extinguish the obligations of any of the others, unless they are mere guarantors ; nor does it affect their right to contribution from him. CRO SS RE FERE NCES Guarantor's liability discharged by what dealings with debtor, see section 12T8. Rights of sureties, see section 1292. Post. p.1293. Post, p.1295. 72d C ONGRESS. SESS. II. CH. 128. F EBRUARY 27, 1933 . CROSS Ri xclr Part performance, see section 450, 454, and 1281. NOVATION CROSS R ExcEs Novation a contract, s ee section 484. Right to sue on contract made for one's benefit, see section 494. SEC. 483. MODES OF NOVATION .-Novation is made 1. By the substitution of a new obligation be twe en the sa me 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. SEC. 484. NovATION A CONTxACT .-Novation is made by contract, and is subject to all the rules concerning contracts in general. SEC. 485 . RES Ca ssI ON OF NOVATION -When the obligation of a third person, or an order upon such person is accepted in satisfaction, the creditor may rescind such acceptance if the debtor prevents su ch person from complying with the order, or from fulfilling the obliga- ti on ; or if, at the time the obligation or order is received, such person is insolvent, and this fact is unknown to the creditor, or 1f, before the creditor can with reasonable diligence present the order to the person upon whom it is given, he becomes insolvent. RELEASE