§ 1530 Contract Obligation Substitution
This law explains that a contract can be changed by replacing the old duty with a new one, called novation.
A borrower wants to replace an old loan with a new loan that has different terms.
If the borrower and lender agree to cancel the old loan and start a new one, the new loan takes the place of the old one, and the old loan is no longer enforceable.
AI-generated — May contain errors. Not legal advice. Always verify source.
§ 1530 Contract Obligation Substitution
Last verified: January 9, 2026