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Current as of January 01, 2024 | Updated by Findlaw Staff
When the obligation of a third person or an order upon the third person is accepted in satisfaction, the creditor may rescind the acceptance if:
(1) the debtor prevents the third person from complying with the order or from fulfilling the obligation;
(2) at the time the obligation or order is received, the third person is insolvent and the fact is unknown to the creditor; or
(3) before the creditor can, with reasonable diligence, present the order to the third person upon whom it is given, the third person becomes insolvent.
Cite this article: FindLaw.com - Montana Title 28. Contracts and Other Obligations § 28-1-1504. When acceptance of novation may be rescinded - last updated January 01, 2024 | https://codes.findlaw.com/mt/title-28-contracts-and-other-obligations/mt-st-28-1-1504/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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