Explanation of Article 260
This article addresses the statement of "novation of parties," which is: the discharge of an obligation by creating a new obligation in its place, provided there is a change in one of the parties to the obligation. The article states that novation of parties occurs in two cases:
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First: "Debtor novation," which is when a new debtor replaces the old debtor, and the old debtor is no longer responsible for the obligation. For example, if a person owes another a certain amount, and then another person replaces him, and the creditor accepts this, in this case, the debtor is renewed, the obligation is discharged from the old debtor, and a new obligation arises on the new debtor.
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Second: "Creditor novation," which is when a new creditor replaces the old creditor, and the old creditor is no longer responsible for the obligation. For example, if a person owes another a certain amount, and then another person replaces him, and the debtor accepts this, in this case, the creditor is renewed, the obligation is discharged from the old creditor, and a new obligation arises for the new creditor.
It should be noted that novation of parties leads to the "discharge of the obligation," so no legal effect is imposed on the old obligation after the novation.
This article is considered one of the most important articles related to the novation of parties, as it explains how the obligation is discharged and enumerates its methods.
Related To
Article 260
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Performance shall be deemed valid if made by the owner of the thing used in the performance of the obligation.
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Performance shall not be deemed valid if made by a fully incompetent person. However, it shall be deemed valid if made by a partially incompetent person using a thing owed thereby, unless such performance causes harm to said person.