Chap 4 - Extinguishment of Obligations

Question 1

(Art. 1231) Obligations are extinguished

Answer 1

1. By payment or performance
2. By the loss of the thing due
3. By the condonation or remission of the debt
4. By the confusion or merger of the rights of creditor and debtor
5. By compensation
6. By novation

Question 2

Other causes of extinguishment of obligations

Answer 2

1. Death of a party in case of a personal obligation
2. Mutual desistance or withdrawal of parties
3. Arrival of a resolutory period
4. Compromise agreements
5. Impossibility of fulfillment
6. Happening of a fortuitous event

Question 3

are contracts, whereby the parties undertake reciprocal obligations to resolve their differences thus avoiding litigation, or put an end to one already commenced

Answer 3

Compromise agreements

Question 4

(Art. 1232) Payment does not mean only the delivery of money but

Answer 4

also the performance, in any other manner, of an obligation

Question 5

What are the requisites of payment

Answer 5

1. Identity of the prestation
2. Integrity

Question 6

(Art. 1233) A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been?

Answer 6

completely delivered or rendered, as the case may be

Question 7

(Art. 1234) If the obligation has been substantially performed in good faith, the obligor may?

Answer 7

recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee

Question 8

(Art. 1235) When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection,

Answer 8

the obligation is deemed fully complied with

Question 9

(Art. 1235) GR: A debt shall not be understood to have been paid unless the thing in service in which the obligation consists has been completely delivered or rendered, as the case may be. Except

Answer 9

1. if the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee
2. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with

Question 10

(Art. 1236) The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation unless

Answer 10

there is a stipulation to the contrary

Question 11

(Art. 1236) Whoevers pays for another may demand from the debtor what he has paid, except that if he

Answer 11

paid without the knwoledge or against the will of the debtor, he can recover only in so far as the payment has been beneficial to the debtor

Question 12

(Art. 1237) Whoever pays on behalf of the debtor without the knowledge or against the will of latter, cannot

Answer 12

compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty.

Question 13

(Art. 1238) Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor’s consent. But the payments is in any case

Answer 13

valid as to the creditor who has accepted it

Question 14

(Art. 1239) In obligations to give, payment made by the one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid, without

Answer 14

prejudice to the provisions of Article 1427 inder the Title on “Natural Obligations”

Question 15

(Art. 1239) GR: Payment by an incapacitated person is not valid, except

Answer 15

Article 1425 of the NCC provides

Question 16

(Art. 1240) Payment shall be made to the person in whose favor the obligation has been constituted, or his

Answer 16

successor in interest or any person authorized to receive it

Question 17

(Art. 1241) Payment to a person who is incapacitated to administer the property shall be valid if

Answer 17

he has kept the thing delivered, or insofar as the payment has been beneficial to him

Question 18

(Art. 1241) Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to the creditor need not be proved in the following cases:

Answer 18

1. If after the payment, the third person acquires the creditor’s rights
2. If the creditor ratifies the payment to the third person
3. If by the creditor’s conduct, the debtor has been led to believe that the third person had authority to receive the payment

Question 19

(Art. 1242) Payment made in good faith to any person in possession of the credit shall?

Answer 19

release the debtor

Question 20

(Art. 1243) Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall?

Answer 20

it shall not be valid

Question 21

is a provisional remedy issued upon order of the court where an order is pending to levy upon the property/ies of the defendant therein, the same to be held thereafter by the sheriff as security for the satisfaction of whatever judgment might be secured in said action by the attaching creditor against the defendant

Answer 21

Preliminary attachment

Question 22

It is the one that is issued to enforce a judgment that has already become final and executory

Answer 22

Final attachment

Question 23

It is an order granted at any stage of an action or proceeding prior to the judgment or final order, requiring a party or a court, agency or a person to refrain from a particular act or acts

Answer 23

Preliminary injunction

Question 24

It is one included in the judgment as the relief or part of the relief granted as a result of the action

Answer 24

Final injunction

Question 25

It is a specie of attachment in which plaintiff seeks to subject his claims properties of the debtor in the hands of a stranger

Answer 25

Garnishment

Question 26

(Art. 1244) The debtor of a thing cannot compel the creditor to receive a different on, __________________________ . In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s will.

Answer 26

although the latter may be of the same value as, or more valuable that that which is due

Question 27

(Art. 1245) Dation in payment, whereby property is alienated to the creditor in satisfaction of a debt in money, shall be

Answer 27

governed by the law of sales

Question 28

the debtor gives the creditor the property as a substitute for paying the debt. The creditor then sells the property at auction to settle the debt. The debtor is no longer responsible for the debt, and the lender will not pursue the debtor for the remaining balance. The lender will also not affect the debtor’s credit report

Answer 28

Dacion en pago

Question 29

Requisites for dacion en pago

Answer 29

1 There must be a performance of the prestation in lieu of payment which may consist in the delivery of a corporeal thing or a real right or a credit against the third person;
2. There must be some difference between the prestation due and that which is given is substitution; and
3. There must be an agreement between the creditor and debtor that the obligations is immediately extinguished by reason of the performance of a prestation different from that due

Question 30

(Art. 1246) When the obligation consists in the delivery of an indeterminate or generic thing, whose quality and circumstances have not been stated, the creditor cannot demand a thing or superior quality. Neither can the debtor

Answer 30

deliver a thing of inferior quality. The purpose of the obligation and other circumstances shall be taken into consideration.

Question 31

(Art. 1247) GR: Extrajudicial expenses incurred during payment are for the account of the debtor. Except,

Answer 31

when it is otherwise stipulated

Question 32

(Art. 1248) GR: A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be, except

Answer 32

Exceptions:
Partial payments are allowed in the following cases:
1. When there is an express stipulation to that effect; and
2. When the debt is in part liquidated and in in part unliquidated

Question 33

(Art. 1249) The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency,

Answer 33

then in the currency in which is legal tender in the Philippines

Question 34

(Art. 1249) The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when

Answer 34

they have been cashed, or when through the fault of the creditor they have been impaired.

Question 35

(Art. 1250) In case of extraordinary inflation or deflation of the currency stipulated should supervene,

Answer 35

the value of the currency at the time of the establishment of the obligation shall be the basis of the payment, unless there is an agreement to the contrary.

Question 36

(Art. 1251) Place of payment of the obligation

Answer 36

1. Payment shall be made in the place stipulated by the parties
2. If there is no stipulation and the obligation is to deliver a determinate thing, payment shall be made wherever the thing might be at the moment the obligation was constituted
3. In any other case the place of payment shall be the domicile of the debtor. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him

Question 37

(Art. 1252) He who has various debts of the same kind in favor of one and the same creditor, may declare at the time of making the payment, to which of them the same must be applied. Unless the parties _______________________________________________. If the debtor accepts from the creditor a receipt in which an application of the payment is made, the former cannot complain of the same, unless there is a cause for invalidating the contract.

Answer 37

so stipulate, or when the application of payment is made by the party for whose benefit the term has been constituted, application shall not be made as to debts which are not yet due.

Question 38

(Art. 1253) If the debt produces interest, payment of the principal shall not be deemed to have been made until

Answer 38

the interests have been covered

Question 39

(Art. 1254) When the payment cannot be applied in accordance with the preceding rules, or if application cannot be inferred from other circumstances, the debt which is most onerous to the debtor, among those due, shall be

Answer 39

deemed to have been satisfied

Question 40

(Art. 1254) If the debts due are of the same nature and burden, the payment shall be applied to

Answer 40

all of them proportionately

Question 41

(Art. 1255) The debtor mat cede or assign his property to his creditors in payment of his debts. This cession, unless there is stipulation to the contrary, shall only release the debtor from the responsibility for the

Answer 41

net proceeds of the thing assigned. The agreements which, on the effect of the cession, are made between the debtor and his creditors shall be governed by special laws