California Codes

Cal. Civil Code § 1532 (2026)

✓ current as of May 2026

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Novation is made by contract, and is subject to all the rules concerning contracts in general.

Notes of Decisions

Cited in 9 cases (1 in the last 5 years), 1946–2022 · 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 2× “" (Civ. Code, § 1532.) (2) A novation thus amounts to a new contract which supplants the original agreement and "completely extinguishes the original obligation.”

Paykar Constr. Inc. v. Spilat Constr. Corp., 2001 Cal. Daily Op. Serv. 8345 (Cal. Ct. App. 2001). “(Civ. Code, § 1532.) Spilat contends Paykar’s settlement with the owners, acceptance of the promissory note in lieu of the owners’ original debt, and release of the mechanic’s lien compel the conclusion as a matter of law that Paykar intended to substitute the promissory note…”

Klepper v. Hoover, 21 Cal. App. 3d 460 (Cal. Ct. App. 1971). “) A novation is subject to the general rules governing contracts (Civ. Code, § 1532) and requires an intent to discharge the old contract, a mutual assent, and a consideration.”

Garthofner v. Edmonds, 167 P.2d 789 (Cal. Ct. App. 1946). · cites it 2× “(Civ. Code, § 1532.) This suit is not founded on the original oral agreement to pay the debt.”

Trans-World Int'l, Inc. v. Smith-Hemion Prods., Inc., 972 F. Supp. 1275 (C.D. Cal. 1997). “Novation is the substitution by agreement of a new obligation for an existing one.”

Grand Avenue Partners, L.P. v. Goodan, 25 F. Supp. 2d 1064 (C.D. Cal. 1996). “” Cal.Civ.Code § 1532. 5 . In Wells Fargo Bank, the court noted that the lease "expressly provided that the lessee 'shall be relieved of all liability accruing under this lease from and after the date of any assignment.”

JP Morgan Chase Bank v. Lisandros, LLC CA2/8 (Cal. Ct. App. 2016). “) Parties may achieve novation “[b]y the substitution of a new obligation between the same parties, with intent to extinguish the old obligation.”

Velasquez v. Northgate Gonzalez Markets CA2/2 (Cal. Ct. App. 2022). “rescission (namely, and under Civil Code section 1689, that the agreement to be rescinded was agreed to by virtue of mistake, duress, menace, fraud or undue influence in consenting to the contract; that it lacked consideration or there was a failure of consideration; that it was…”

Dragnea v. Dragnea (Bankr. E.D. Cal. 2019). “CAL. CIV. CODE § 1532. 23 24 e 25 Finally, an obligation is extinguished by a release in 26 writing, with or without new consideration.”

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