28-1-1502. Kinds of novation. Novation is made by the substitution of:

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Terms Used In Montana Code 28-1-1502

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

(1)a new obligation between the same parties with intent to extinguish the old obligation;

(2)a new debtor in place of the old one with intent to release the latter; or

(3)a new creditor in place of the old one with intent to transfer the rights of the latter to the former.