Montana § 28-1-1504 When Acceptance Of Novation May Be Rescinded

Montana Statutes

§ 28-1-1504 — When Acceptance Of Novation May Be Rescinded

Montana·Title 28 CONTRACTS AND OTHER OBLIGATIONS·Ch. 1 OBLIGATIONS IN GENERAL·Part 15 Novation

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 When acceptance of novation may be rescinded.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 When acceptance of novation may be rescinded.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.

Montana § 28-1-1504 (When Acceptance Of Novation May Be Rescinded) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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.