20-7-9. Rescission of satisfaction by substitution of debtor.
When the obligation of a third person on an order upon such person is accepted in satisfaction, the creditor may rescind such acceptance if the debtor prevents such person from complying with the order, or from fulfilling the obligation; or if, at the time the obligation or order is received, such person is insolvent, and this fact is unknown to the creditor; or if, before the creditor can with reasonable diligence present the order to the person upon whom it is given, he becomes insolvent.
Source: CivC 1877, §866; CL 1887, §3490; RCivC 1903, §1184; RC 1919, §791; SDC 1939, §47.0239.
Structure South Dakota Codified Laws
Title 20 - Personal Rights and Obligations
Chapter 07 - Accord And Satisfaction, Novation And Release Of Obligations
Section 20-7-1 - Accord defined.
Section 20-7-2 - Execution of accord required to extinguish obligation.
Section 20-7-3 - Acceptance of accord as satisfaction--Obligation extinguished.
Section 20-7-4 - Obligation extinguished by part performance accepted in writing as satisfaction.
Section 20-7-5 - Novation defined.
Section 20-7-6 - Novation by substitution of obligation.
Section 20-7-7 - Novation by substitution of debtor.
Section 20-7-8 - Novation by substitution of creditor.
Section 20-7-9 - Rescission of satisfaction by substitution of debtor.
Section 20-7-10 - Obligation extinguished by release on new consideration or in writing.
Section 20-7-11 - Unknown claims not released by general release.
Section 20-7-12 - Joint debtors not released by release of one--Right of contribution.