There is a similarity and difference between novation and compromise as following[1]:
1. Both a contract of compromise and novation is a contract which the parties contract to change an original obligation.
2. Both a contract of compromise and novation is extinguished an original obligation and the parties is bond by a new contract.
3. Novation is the parties concerned have concluded a contract changing the essential element of obligation[2], on the other hand, a compromise is a contract whereby the parties settle a dispute by mutual concession.
4. A contract of compromise is not enforceable by action unless there is some written evidence signed by the party liable or his agent [Civil and Commercial Code Section 851] but there is no need written evidence for a novation . However, If a novation which the law regulate a form of juristic act,the enforcement of obligation require form or written evidence.
5. If the obligation of a compromise contract is not made performance, a security of original obligation [suretyship or mortgage] is not extinguished. On the other side, a security of novation shall still alive only if the parties contract to transfer it.[3]
ไม่มีความคิดเห็น:
แสดงความคิดเห็น