Upon the proposal of a third person, a new debt or substituted the original debtor without the latter’s consent. The creditor accepted the substitution. Later, however, the new debtor became insolvent and defaulted in his obligation. What is the effect of the new debtor’s default upon the original debtor?
A. The original debtor is freed of liability since novation took place and this relieved him of his obligation.
B. The original debtor shall pay or perform the obligation with recourse to the new debtor.
C. The original debtor remains liable since he gave no consent to the substitution.
D. The original debtor shall pay or perform 50% of the obligation to avoid unjust enrichment on his part.
Civil Law Bar exam reviewer, Answer is letter A. To find our the supreme court bar exam result, follow that link.