Meadows v. Lee

—I respectfully dissent.

The majority correctly points out the controlling factor in a novation contest is the intent of the parties. The question here was whether the parties to the original agreement, the seller Lee and the buyers Grimsgaards, intended to cancel that agreement and substitute a new agreement.

“‘Novation is the substitution of a new obligation for an existing one.’ (Civ. Code, § 1530.) ‘Novation is made: 1. By the substitution of a new obligation between the same parties, with intent to extinguish the old obligation. ...’(§ 1531.)”1 (Hunt v. Smyth (1972) 25 Cal.App.3d 807, 818…