Guarantor's Promise vs. Novation of Debt

The case concerned a dispute over whether a promise made by a guarantor to a third party, subsequent to the principal debtor's failure to perform, constituted a novation of the original obligation, thereby releasing the principal debtor. The court held that a mere promise by a guarantor to assume the debt of the principal debtor, without the explicit agreement of the creditor to release the original debtor, does not automatically effect a novation of the debt, as novation requires the clear and unequivocal intention of all parties to extinguish the original obligation and replace it with a new one.