California Codes
Cal. Civil Code § 1530 (2026)
✓ current as of May 2026
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Novation is the substitution of a new obligation for an existing one.
Notes of Decisions
Cited in 42
cases (6 in the last 5 years), 1927–2025 · leading case: Wells Fargo Bank, N.A. v. Bank of Am. NT&SA, 95 Cal. Daily Op. Serv. 1213 (Cal. Ct. App. 1995).
Wells Fargo Bank, N.A. v. Bank of Am. NT&SA, 95 Cal. Daily Op. Serv. 1213 (Cal. Ct. App. 1995). “" (Civ. Code, § 1530.) The substitution is by agreement and with the intent to extinguish the prior obligation.”
Mountain Air Enters., LLC v. Sundowner Towers, LLC, 398 P.3d 556 (Cal. 2017). “, Civ. Code, §§ 1530, 1531, subd. 1 ; compare IMO Development Corp.”
Paykar Constr. Inc. v. Spilat Constr. Corp., 2001 Cal. Daily Op. Serv. 8345 (Cal. Ct. App. 2001). “) It involves either the substitution of a new obligation between the same parties with the intent to extinguish the old obligation, substitution of a new debtor for the old debtor with the intent to release the old debtor, or substitution of a new creditor for the old creditor…”
Meadows v. Lee, 175 Cal. App. 3d 475 (Cal. Ct. App. 1985). “' (Civ. Code, § 1530.) `Novation is made: 1.”
Howard v. Cnty. of Amador, 220 Cal. App. 3d 962 (Cal. Ct. App. 1990). “In general the parties to a contract are free to determine for themselves their respective rights and liabilities so long as the purposes and effects of their agreement are lawful.”
Kwok v. Bergren, 130 Cal. App. 3d 596 (Cal. Ct. App. 1982). “(Civ. Code, §§ 1530, 1531.) Respondent, prior to the default in the April 1979 rent payment, recognized appellants, along with others, as “tenants in possession.”
Morgan Tire of Sacramento, Inc. v. Goodyear Tire & Rubber Co., 60 F. Supp. 3d 1109 (E.D. Cal. 2014). “807 (1990) (citing Cal. Civ.Code § 1530). . Defendants also rely on National Union Fire Ins.”
Fanucchi & Limi Farms v. United Agri Prods., 414 F.3d 1075 (9th Cir. 2005). “1995) (quoting Cal. Civ. Code § 1530 ). Novation may be accomplished either by the substi- tution of a new debtor or a new creditor, California Civil Code § 1531(2)-(3), or “[b]y the substitution of a new obliga- tion between the same parties, with intent to extinguish the old…”
Alexander v. Angel, 236 P.2d 561 (Cal. 1951). “Angel which arose by virtue of the agreements of January 2, 1947,” between Angel and the Alexanders; that “the effect of such novation was the substitution, of a new debtor, namely, [the Hawses], in the place and stead of the old debtor, namely, John B. Angel,” that “as a result…”
Hunt v. Smyth, 25 Cal. App. 3d 807 (Cal. Ct. App. 1972). “Plaintiffs have confused conduct which may serve to prevent an obligee from exercising rights which might otherwise rise upon a default by the obligor, which is discussed below (see part II, infra), and a consensual agreement to modify an existing contract.”
Airs Int'l, Inc. v. Perfect Scents Distributions, Ltd., 902 F. Supp. 1141 (N.D. Cal. 1995). “denied (1995), quoting Cal.Civ.Code § 1530. “A novation ... amounts to a new contract which supplants the original agreement and ‘completely extinguishes the original obligation .”
Transp. Clearings-Bay Area v. Simmonds, 226 Cal. App. 2d 405 (Cal. Ct. App. 1964). “’ (Civ. Code, § 1530.) One of the ways a novation may be consummated is ‘by the substitution of a new debtor in place of the old one, with intent to release the latter.”
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