Montana § 28-1-1504 When Acceptance Of Novation May Be Rescinded

Montana Statutes

§ 28-1-1504 — When Acceptance Of Novation May Be Rescinded

Montana § 28-1-1504

Title 28CONTRACTS AND OTHER OBLIGATIONS

Ch. 1OBLIGATIONS IN GENERAL

Part 15Novation

This text of Montana § 28-1-1504 (When Acceptance Of Novation May Be Rescinded) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 28-1-1504 (2026).

Text

28-1-1504 . When acceptance of novation may be rescinded. When the obligation of a third person or an order upon the third person is accepted in satisfaction, the creditor may rescind the acceptance if:

(1)the debtor prevents the third person from complying with the order or from fulfilling the obligation;

(2)at the time the obligation or order is received, the third person is insolvent and the fact is unknown to the creditor; or

(3)before the creditor can, with reasonable diligence, present the order to the third person upon whom it is given, the third person becomes insolvent.

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28-1-1504 . When acceptance of novation may be rescinded. When the obligation of a third person or an order upon the third person is accepted in satisfaction, the creditor may rescind the acceptance if:
(1) the debtor prevents the third person from complying with the order or from fulfilling the obligation;
(2) at the time the obligation or order is received, the third person is insolvent and the fact is unknown to the creditor; or
(3) before the creditor can, with reasonable diligence, present the order to the third person upon whom it is given, the third person becomes insolvent.

Legislative History

En. Sec. 2073, Civ. C. 1895; re-en. Sec. 4961, Rev. C. 1907; re-en. Sec. 7463, R.C.M. 1921; Cal. Civ. C. Sec. 1533; Based on Field Civ. C. Sec. 740; re-en. Sec. 7463, R.C.M. 1935; R.C.M. 1947, 58-508; amd. Sec. 766, Ch. 56, L. 2009.