Williams v. Rowe Banking Company

Atkinson, Presiding Justice.

(After stating the foregoing facts.) Williams insists that, when he executed his note to the bank and received in return therefor the note Thomas had given the bank with the notation “Paid by new note by C. F. Williams,” this was a novation, and precluded the bank from exercising the power of sale contained in the security deed.

A novation is a complete contract within itself, and has four essential requisites: (1) a previous valid obligation, (2) the agreement of all the parties to.the new contract, (3) the ex-tinguishment of the old contract, (4) the validity of…