Assignment of Liability
(b) A owes B 10,000 rupees. A enters into an agreement with B, and gives B a mortgage of his (A’s), estate for 5,000 rupees in place of the debt of 10,000 rupees. This is a new contract and extinguishes the old.
(1) A previous valid obligation;
(2) the agreement of all the parties to the new contract;
(3) the extinguishment of old contract; and
(4) the validity of the new one.