Murray J. relied on the judgment of Begbie C.J. inPolson v. Wulffsohn (1890), 2 B.C.R. 39 at 43. There these three principles are set out as being necessary to establish and complete the novation: (1) The new debtor must assume complete liability; (2) The creditor must accept the new debtor as a principal debtor and not merely as an agent or guarantor; (3) The creditor must accept the new contract in full satisfaction and substitution for the old contract.
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