Novation is made by the substitution of:

1. (1) a new obligation between the same parties with intent to extinguish the old obligation;
2. (2) a new debtor in place of the old one with intent to release the latter; or
3. (3) a new creditor in place of the old one with intent to transfer the rights of the latter to the former.

History: En. Sec. 2071, Civ. C. 1895; re-en. Sec. 4959, Rev. C. 1907; re-en. Sec. 7461, R.C.M. 1921; Cal. Civ. C. Sec. 1531; Field Civ. C. Sec. 737; re-en. Sec. 7461, R.C.M. 1935; R.C.M. 1947, 58-506.