California Codes

Cal. Civil Code § 1531 (2026)

✓ current as of May 2026

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Novation is made:

1.By the substitution of a new obligation between the same parties, with intent to extinguish the old obligation;

2.By the substitution of a new debtor in place of the old one, with intent to release the latter; or,

3.By the substitution of a new creditor in place of the old one, with intent to transfer the rights of the latter to the former.

Notes of Decisions

Cited in 30 cases (5 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).

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Wells Fargo Bank, N.A. v. Bank of Am. NT&SA, 95 Cal. Daily Op. Serv. 1213 (Cal. Ct. App. 1995). · cites it 4× “) The substitution of a new obligation for an existing one may be either (1) a new obligation between the same parties, or (2) a new obligation arising because of new parties, either a new debtor or new creditor.”

Cione v. Foresters Equity Servs., Inc., 97 Cal. Daily Op. Serv. 8091 (Cal. Ct. App. 1997). · cites it 2× “) Since the Form U-4 agreement was not otherwise rescinded or extinguished by Cione or NASD (Civ. Code, §§ 1531, subd. 1, 1689; Malmstrom v.”

Meadows v. Lee, 175 Cal. App. 3d 475 (Cal. Ct. App. 1985). · cites it 4× “STATUS AS AN ORIGINAL PARTY DOES NOT PRECLUDE A NOVATION OF THE ORIGINAL AGREEMENT Civil Code section 1531 expressly contemplates the two original parties can create a novation.”

Paykar Constr. Inc. v. Spilat Constr. Corp., 2001 Cal. Daily Op. Serv. 8345 (Cal. Ct. App. 2001). “(Civ. Code, § 1531.) A novation is made by contract and is governed by contract law.”

Fanucchi & Limi Farms v. United Agri Prods., 414 F.3d 1075 (9th Cir. 2005). · cites it 6× “The California Supreme Court held that the changed agree- ment between the Alexanders and the Hawses was a novation, extinguishing the old obligation “by the substitution of a new debtor in place of the old one” under Cal.”

Grand Avenue Partners, L.P. v. Goodan, 25 F. Supp. 2d 1064 (C.D. Cal. 1996). · cites it 3× “4 Pursuant to Cal.Civ.Code § 1531, a novation can occur by one of three methods: 1.”

Leonard v. Gallagher, 235 Cal. App. 2d 362 (Cal. Ct. App. 1965). · cites it 2× “(Civ. Code, § 1531.) The trial court apparently thought it was merely an accord.”

Alexander v. Angel, 236 P.2d 561 (Cal. 1951). “’ ’ Accordingly, judgment was entered denying the Alexanders recovery from Angel.”

Weber v. Marine Cooks' & Stewards' Ass'n, 208 P.2d 1009 (Cal. Ct. App. 1949). “” There is a change in designation of title from “Marine Cooks’ and Stewards’ Association of the Pacific Coast” to “National Union of Marine Cooks and Stewards.”

Garthofner v. Edmonds, 167 P.2d 789 (Cal. Ct. App. 1946). · cites it 3× “(Civ. Code, § 1531.) Novation is made by contract, and is subject to all the rules, including the necessity for a consideration, which apply to contracts in general.”

Transp. Clearings-Bay Area v. Simmonds, 226 Cal. App. 2d 405 (Cal. Ct. App. 1964). “’ (Civ. Code, §1531.) Novation must be pleaded either expressly or ‘by unequivocal implication, ’ and the burden of proof is ‘upon the party asserting its existence.”

Horacek v. Smith, 199 P.2d 929 (Cal. 1948). “” The objection is grounded upon the premise that the modifying agreement “whatever its effect, would have superseded the original contract .”

Show all 30 citing cases →

— Cal. Civil Code § 1531(1) — 4 cases

Grand Avenue Partners, L.P. v. Goodan, 25 F. Supp. 2d 1064 (C.D. Cal. 1996). “4 Pursuant to Cal.Civ.Code § 1531, a novation can occur by one of three methods: 1.”

Horacek v. Smith, 199 P.2d 929 (Cal. 1948). “” The objection is grounded upon the premise that the modifying agreement “whatever its effect, would have superseded the original contract .”

Flynn v. Sun Life Assurance Co., 809 F. Supp. 2d 1175 (C.D. Cal. 2011).

Dragnea v. Dragnea (Bankr. E.D. Cal. 2019).

— Cal. Civil Code § 1531(2) — 1 case

Fanucchi & Limi Farms v. United Agri Prods., 414 F.3d 1075 (9th Cir. 2005). “The California Supreme Court held that the changed agree- ment between the Alexanders and the Hawses was a novation, extinguishing the old obligation “by the substitution of a new debtor in place of the old one” under Cal.”

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