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Sep 30
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NOVATION AS A METHOD OF TERMINATION OF OBLIGATIONS

Marko Perović

10.5937/AnaliPFB1703167P
ABSTRACT /

The paper presents an analysis of the issue of novation in contract law. Novation is a contract between the creditor and debtor in order to replace its existing obligation with a new one. Unlike the other methods of termination of obligations (e.g. fulfillment, compensation, remission of debt), novation extinguishes existing contractual relationship between the creditor and the debtor, so that among them arise a new contractual relationship, which in relation to the previous one, differs on the case or legal basis.

In most of the modern codifications of civil law, novation obtained a particular use in relation to the classical Roman law, which included a change of persons in obligations. In Serbian law, novation also has took the particular use and it takes an important place among many other termination methods of obligations. The analysis made in this paper, focused to the theoretical arguments and practical significance of the novation, brings the author to the conclusions and recommendations relevant to the novation in the theory and pracices of contract law.

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