Hargadine McKittrick Dry Goods Co. v. Goodman

Citations

• 55 Fla. 361

Syllabus

<p>Novation Distinguished From ^ Collateral Obligation—Collateral Obligation Does Not Release Principal Debtor.</p> <p>1. Novation takes place by agreement of all the parties concerned, and, therefore, depends entirely upon-the intention of the . parties. It is matter of proof, and not matter of law. When A. undertakes to pay B’s debt, the obligation assumed may be collateral, to B’s obligation rather than substituted therefor. If intended as collateral, B’sdebtcontinues toexist, and thisserves to distinguish such a case from one of novation, in which B’s debt would be extinguished.</p> <p>2. A collateral obligation may be validly assumed by one party, to pay the debt of another party and may be enforced without effecting a discharge of the original obligor.</p>