Explanation of Article 298
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 298
A claim shall not be heard upon the lapse of the specified periods with respect to the rights stipulated in Article 296(a) and Article 297 of this Law, even if the same type of dealing continues between the holders of such rights and obligees. If a document of any such right is executed, a claim for such right shall not be barred until the lapse of 10 years from the document execution date.