Chapter 3 Flashcards
Enumerate the reasons for obligations to be extinguished
- Payment or performance,
- Loss of the the due,
- The condonation or remission of debt,
- The confusion or merger of the rights of the creditor and debtor,
- Compensation,
- Novation
Recession can extinguished the obligations of law. T/F
True
It is the consummation or fulfillment of a prestation that is due, leading to the extinguishment of the obligation.
Concept of Payment - Art.1232
If A is obligated to repair the computer of B, payment is made by performing the service. T/F
True
This article sets out the requirement for payment in order to extinguish an obligation and this is must be complete. Therefore, if payment is not complete or if performance is only partial, there is no extinguishment of obligation.
Article 1233
Partial or irregular performance will produce the extinguishment of an obligation. T/F
False - will not produce
A debt to deliver a thing (including money) or to render service is not understood to have been paid unless the thing or service has been completely delivered or rendered, as the case may be.
Integrity of prestation
When the existence of a debt is admitted by the debtor or established by the evidence of the creditor, the burden of proving extinguishment by payment devolves upon the debtor who claims payment. T/F
True
2 Requisites for the application of Article 1234 where the obligor may recover from his obligations.
1) there must be substantial performance
2) the obligor must be in good faith
S obliged himself to deliver 500 bags of cement to B for a certain price. However, despite diligent efforts on his part, S was able to deliver only 400 bags because of cement shortage. Can S recover from his obligations to B?
S can recover as through there had been complete delivery less the price of the 100 bags, S must show, however, that he attempted in good faith to comply with his obligation.
Obligee cannot accept the performance knowing its incompleteness or irregularity, but without expressing any protest or objection, then obligation is not deemed fully complied with. T/F and what article?
False - Obligee should accept the performance even if it’s incomplete because of not expressing protest or objection and obligation will be deemed fully complied with based on Art.1235
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. T/F`and what article?
True - Article 1236
The creditor may not, for personal reasons, desire to have any business dealings with a third person; or the creditor may not have confidence in the honesty of the third person who might deliver a defective thing or pay with a check which may not be honored. True/False
True
D owes C the sum of 1,000 but already paid the 400. If S, a stranger to the obligation, offers to pay C 1,000 and accept it but D doesn’t have the knowledge about it, can S recover 1,000 from D? Yes or No and why?
No, if 400 had already been paid by D, then S is entitled to be reimbursed only for the amount of 600 because it is only to that amount that D has been benefited. S can recover 400 from C who should not have accepted it.
D owes C the sum of 1,000. If S, a stranger to the obligation, offers to pay C 1,000 and accept it and D has the knowledge about it, can S recover 1,000 from D? Yes or No and why?
Yes, S can recover from D 1,000 with all the rights of subrogation to the accessory obligations such as mortgage, guaranty, or penalty - Article 1237
Whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter - what article?
Article 1237
The person who pays for the debtor is put into the shoes of the creditor. The payor acquires not only the right to be reimbursed for he has paid but also all other rights which the creditor could have exercised pertaining to the credit either against the debtor or against third persons, be they guarantors or possessor of mortgages.
Subrogation
D borrowed 10,000 from C. G is the guarantor. Without the knowledge or consent of D, S (stranger) paid C 10,000. If D cannot pay S, can S proceed against G the guarantor for subrogation? Y/N and why?
No, S is not entitled to subrogation since he paid without the consent of D.
Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires ___________.
Debtor’s consent
What article embodies the idea that no one should be compelled to accept the generosity of another?
Article 1238 - If the paying third person does not intend to be reimbursed, the payment is deemed a donation which requires the debtor’s consent to be valid.
D owes C 10,000. Without the intention of being reimbursed S paid D’s obligation but D did not consent to the donation, can S still recover from D? Yes/No and why?
Yes, S may recover from D since there has been no donation, even if originally S did not intend to be reimbursed - Art. 1238
The creditor can still be compelled to accept payment even if the person paying has no capacity to make it. T/F
False - This is the exception provided in article 1427 (Creditor cannot compelled)
X owes Y 100,000 but Y died. Can X give his payment of debt to Y’s husband who lives with her and considered paid? Y/N and why?
No , Based on Art. 1240, repayment of a debt must be made in person in whose favor the obligation is constituted or to another authorized to received the payment in his name (like authorized guardian) For deceased, you have to check first if the husband is the administrator of an estate for your obligation considered to be paid.
X owes Y 100,000 but Y died. Can you give your payment of debt to Y’s husband who lives with her and considered paid? Y/N and why?
No, payment made to a wrong party/not authorized does not extinguished the obligations as to the creditor.
Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered, or in so far as the payment has been beneficial to him. T/F
True - based on article 1241
Payment made to a third person shall also be valid in so far as it has redounded to the benefit of the creditor. Enumerate the benefit to the creditor need not be proved in the following cases.
- If after the payment, the third person acquires the creditor’s right;
- 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.
D delivers P1,000 to C, a minor guardianship, in payment of a debt. C loses P700 of the money in gambling or due to negligence or ignorance, will the debt of D still be considered paid?
No, since he paid it to a minor and probably not an authorized person to received the debt.
Article 1242. Payment made in good faith to any person in possession of the credit shall release the debtor. -
Y owes Z and made a promissory noted and it states there “I promise to pay the creditor the amount of 20,000.” Then one day, the promissory note was lost by Z and found by Ms. X. Can X ask Y to pay him 20,000 since X has the promissory note? Y/No and why?
No, promissory note is only an instrument, the possession of credit means the right to receive the pay to debt whoever is the creditor.
D borrowed 50,000 to C and J owes D 50,000 but C finds it difficult to make D pay for his debt so C decided to file it to the court and made sure to let them know the debt of J to D. Then J decided to pay D, will be his payment valid?
No, because based in Article 1243, the court will not see it as a valid payment since there’s a case filed to D regarding his debt to C so the payment of J to D will be put on hold (which can be also called as garnishment)
Based on Article 1244, In obligations to do or not to do, an act of ___________ cannot be substituted by another act of _________against the obligee’s will.
forbearance, forbearance
A special form of payment where the ownership of property is transferred to his creditor to pay a debt in
money.
Dation in Payment/ dacion en pago)
The debtor is given the right to render another prestation in substitution.
Facultative obligations
A owes 10,00 to Z but when Z asked for the payment, A does not have the money yet but he has a spare phone. Can he use this as a substitute for the payment instead? Y/N and why?
Yes, he can offer this to the creditor as per dation en pago
Article 1246 is a principle of equity that supplies justice in cases where there is lack of precise declaration in the obligation. As per the article, can the debtor waived by delivering a thing of superior quality that the creditor asked? Y/N
Yes, because the purpose of the obligation and other
circumstances shall be taken into consideration to determine the quality or kind of thing to be.
Based on article 1247 - the extrajudicial expenses required by the payment shall be for the account of the debtor. When A borrowed money from B. A and B agreed to divide the rights of everything to them equally. Can A present this stipulation to the court if B asked him to shoulder everything for the judicial expenses? Y/N and why?
Yes, because as per the Article 1247, debtor pays for extrajudicial expense but if the parties have made a stipulation as to who will bear the expenses, then their stipulation
shall be followed.
The creditor may accept but he cannot be compelled to accept
partial performance. The debtor has the duty to comply with the whole of the obligation and he will be required to make partial payments even if he does not wish to do so.T/F
False, In order that payment may extinguish an obligation, it is necessary that there, be complete performance of the prestation so he cannot be required to make partial payments especially if he does wish to do it.
State a case where a partial performance can be allowed legally by the creditor.
- When there is an express stipulation to that effect
- When the debt is in part liquidated (definitely and determined or computed) and in part unliquidated
- When the different prestations in which the obligation consists are subject to different terms or conditions which affect some of them. In obligations which comprehend several
distinct prestations (obligation to pay debt in installments), it is evident that the prestations need not be executed simultaneously but each successive execution thereof
must be complete.
Payment by means of promissory notes or check bills does not extinguish the obligation even if they have been cashed. T/F
True - It is the right of creditor to refuse or accept – Promissory notes, checks bills of exchange and other commercial documents are not legal tender therefore, the creditor cannot be compelled to accept them but in the meantime, the demandability of the original obligation can be suspended.
Payment by means of mercantile documents does not extinguish the obligation unless they have been impaired through the fault of the creditor. T/F and what article?
True - Art 1249
Philippine currency notes have no limit to their legal tender power. T/F
True
B went to a store and buy sandals cost of 1,005 then she has a purse full of 5 pesos so she used this to pay for the slippers. Is the cashier allowed to not accept this payment? Y/N and why
Yes, because based on the legal tender law 1-, 5-, and 10-Piso shall not exceed to Php 1,000. - Art 1250
B went to a store and buy candies cost of 98.50 pesos then he has a piggy bank full of 25 centavo so he used this to pay for the candies. Is the cashier allowed to not accept this payment? Y/N and why?
No, because based on the legal tender law -, 5-,10-, and 25-Sentimo shall be legal tender in amounts not exceeding Php 100. - Art 1250
Based on Article 1251, Payment shall be made in the place designated in the obligation. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expense shall be borne by him. True/False?
True
