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A bank extended PHP 25,000,000 to Delta Builders, Inc. to purchase a titled parcel of land, the loan secured by a mortgage. Delta Builders asked its subsidiary, Delta Real Properties, Ltd., to assume the debt and continue payments on the same terms. The bank and the parties executed a written instrument titled a Novation Agreement wherein Delta Builders is expressly released from the obligation; Delta Real Properties signs to pay the loan on the same terms; a new promissory note is issued in Delta Real Properties’ name; and the old note is canceled. After six months, Delta Real Properties defaults. The bank continues to send statements to Delta Builders and accepts occasional payments from Delta Builders, even though the novation document purports to release Delta Builders. (a)Identify the doctrine governing this arrangement and classify it as express novation or otherwise; explain the essential elements that must be present for the classification to hold. (b)Suppose there is no written novation and no express release of Delta Builders. Instead, Delta Real Properties and Delta Builders sign a separate Assumption of Debt, and the bank accepts Delta Builders’ payments without releasing Delta Builders in writing. Is there implied novation in this scenario? Explain the controlling factors and apply them to the facts.