Chap 4 - Extinguishment of Obligations Flashcards
(Art. 1231) Obligations are extinguished
- By payment or performance
- By the loss of the thing due
- By the condonation or remission of the debt
- By the confusion or merger of the rights of creditor and debtor
- By compensation
- By novation
Other causes of extinguishment of obligations
- Death of a party in case of a personal obligation
- Mutual desistance or withdrawal of parties
- Arrival of a resolutory period
- Compromise agreements
- Impossibility of fulfillment
- Happening of a fortuitous event
are contracts, whereby the parties undertake reciprocal obligations to resolve their differences thus avoiding litigation, or put an end to one already commenced
Compromise agreements
(Art. 1232) Payment does not mean only the delivery of money but
also the performance, in any other manner, of an obligation
What are the requisites of payment
- Identity of the prestation
- Integrity
(Art. 1233) 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
(Art. 1234) 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
(Art. 1235) 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
(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
- 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
- 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
(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
there is a stipulation to the contrary
(Art. 1236) Whoevers pays for another may demand from the debtor what he has paid, except that if he
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
(Art. 1237) Whoever pays on behalf of the debtor without the knowledge or against the will of latter, cannot
compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty.
(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
valid as to the creditor who has accepted it
(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
prejudice to the provisions of Article 1427 inder the Title on “Natural Obligations”
(Art. 1239) GR: Payment by an incapacitated person is not valid, except
Article 1425 of the NCC provides
(Art. 1240) Payment shall be made to the person in whose favor the obligation has been constituted, or his
successor in interest or any person authorized to receive it
(Art. 1241) Payment to a person who is incapacitated to administer the property shall be valid if
he has kept the thing delivered, or insofar as the payment has been beneficial to him
(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:
- If after the payment, the third person acquires the creditor’s rights
- If the creditor ratifies the payment to the third person
- If by the creditor’s conduct, the debtor has been led to believe that the third person had authority to receive the payment
(Art. 1242) Payment made in good faith to any person in possession of the credit shall?
release the debtor
(Art. 1243) Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall?
it shall not be valid
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
Preliminary attachment
It is the one that is issued to enforce a judgment that has already become final and executory
Final attachment
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
Preliminary injunction
It is one included in the judgment as the relief or part of the relief granted as a result of the action
Final injunction
It is a specie of attachment in which plaintiff seeks to subject his claims properties of the debtor in the hands of a stranger
Garnishment
(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.
although the latter may be of the same value as, or more valuable that that which is due
(Art. 1245) Dation in payment, whereby property is alienated to the creditor in satisfaction of a debt in money, shall be
governed by the law of sales
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
Dacion en pago
Requisites for dacion en pago
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
(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
deliver a thing of inferior quality. The purpose of the obligation and other circumstances shall be taken into consideration.
(Art. 1247) GR: Extrajudicial expenses incurred during payment are for the account of the debtor. Except,
when it is otherwise stipulated
(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
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
(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,
then in the currency in which is legal tender in the Philippines
(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
they have been cashed, or when through the fault of the creditor they have been impaired.
(Art. 1250) In case of extraordinary inflation or deflation of the currency stipulated should supervene,
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.
(Art. 1251) Place of payment of the obligation
- Payment shall be made in the place stipulated by the parties
- 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
- 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
(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.
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.
(Art. 1253) If the debt produces interest, payment of the principal shall not be deemed to have been made until
the interests have been covered
(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
deemed to have been satisfied
(Art. 1254) If the debts due are of the same nature and burden, the payment shall be applied to
all of them proportionately
(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
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
