Where  an  agreement  had  been  made  between  a  mortgagor
and  mortgagee  for  the  former  to  give  up  possession  and
release  all  his  interest  to  the  mortgagee,  which  was  not  acted
upon,  and  twelve  years  afterwards  the  mortgagee  sold  under
his  power  as  mortgagee,  it  was  held  that  the  agreement  had
been  abandoned  and  that  the  mortgagor  retained  the  equity
of  redemption  and  was  entitled  to  the  surplus  of  the  purchase
money  {p).  Where  land  had  been  sold  in  lots,  subject  to
covenants  with  the  vendor  not  to  carry  on  the  trade  of  a
beershop,  and  the  vendor  afterwards  suffered  beershops  to  be
opened  and  himself  supplied  them  with  beer,  he  was  held  to
have  waived  and  rescinded  the  covenants  over  all  the  lots  [q).
Where  a  buyer  of  goods  for  future  delivery  gave  notice  to
the  seller  of  his  insolvency,  it  was  held  that  the  seller  was
justified  in  presuming  an  offer  to  abandon  the  contract  and
in  accepting  the  abandonment,  in  the  absence  of  any  notice
by  the  buyer  of  his  intention  to  maintain  the  contract  (r).
NoTation         The  discharge  of  a  contract  by  a  new  agreement  may  occur
anceofnew  with  the  intervention  of  a  third  party,  who  undertakes  the
debtor.        liability  of  the  contract  and  is  accepted  by  the  creditor  in
place  of  the  original  debtor ;  a  mode  of  discharge  which  is
Transfer  of  designated  by  the  term  novation  [s). — Questions  of  novation
insurance,    have  arisen  upon  the  transfer  of  business  between  insurance
companies,  with  reference  to  the  assent  of  the  policy-holders.
