AIR 1957 ANDHRA PRADESH 784

Andhra Pradesh High Court

Hon'ble Judge(s): Syed Qamar Hasan, N. Kumarayya , JJ

(A) Contract Act (9 of 1872) , S.62— 'Novation' - Meaning of - To constitute novation substituted contract must be valid and enforceable. Words and Phrases. The term 'novation' implies that there being a contract in existence some new contract has been substituted for it resulting in discharge of the old contract. Substitution of a new contract is the core of novation. Its essential feature is that a right under the original contract is relinquished and new rights referable to new contract are created. The substituted contract, therefore, must be a valid and enforceable contract to be effective as novation. If the new agreement or contract suffers from legal flaw such as want of registration, stamp etc., on account of which it becomes unenforceable, the original contract will not be extinguished and the rights and liabilities of the parties will be determined on that basis.(Para 6) Anno: C. J. I. Contract Act, S. 62, N. 2. (B) Contract Act (9 of 1872) , S.62— Material alteration. Deed - Material alteration. It is well settled that a party who has the custody of any instrument for his benefit is bound to preserve it in its original state. If any alteration is made which affects the substance of the ....