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A debtor can validly transfer, by novation, his debt obligations without the written consent of the creditor.

 

Crushing Dragon (Nig.) Ltd & Anor. v. Skye Bank Plc & Anor. Suit No. LD/ADR/534/2013, page 9, per Animahun J.:

“In Pat Onegbedan, Esq. v. Unity Bank Plc (2014) LPELR-22186 (CA), novation was described thus: “Contract by novation is a form of assignment in which by consent of all parties thereto, a new contract is made and substituted for an existing contract. Hence one of the essentials of the new contract, that is, novation, is that the consent of all the parties must be obtained. However, such consent need not be in writing; it may be inferred from the conduct of the parties, without express words…” See also African Continental Bank Ltd & Anor v. Ifeanyi Ajugwo (2011) LPELR – 3637 (CA). So, the issue is not (as argued by Counsel for the 1st Defendant) that the novation is invalid because the 1st Defendant did not consent to it. Rather, it is whether the 1st Defendant can be heard to deny the validity of the novation having taken benefit thereunder. The additional benefit gotten by the 1st Defendant is the property of the deceased used as a collateral for the debt.”

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