Chapter 4 Section 4 (Confusion or Merger of Rights) Flashcards
Art. 1275: The obligation is extinguished from the time the characters of creditor and debtor are ______
merged in the same person
Requisites of Confusion:
1.) It must take place between the principal debt and creditor 2.) It must be complete
Examples of Merger:
1.) Where there are 2 inheritors then the testator gave one inheritor usufruct of an asset for a period of time, while the ownership of the same asset was given to the other inheritor. The inheritor to obtain ownership of the asset subsequently sells the asset to the other inheritor. In essence, since X now has full ownership of the land, the usufruct is naturally extinguished. 2.) If a debtor mortgaged an asset to his creditor then subsequently sold the mortgaged asset to the same creditor, the mortgage is extinguished since the creditor already owns the asset.
Art. 1276: Merger which takes place in the person of the principal debtor or creditor benefits the ____. Confusion which takes place in the person of any of the latter does _____
guarantors, not extinguish the obligation
T/F: Merger which takes place in the person of the guarantor also extinguishes the principal obligation.
False. While the merger extinguishes the guaranty, it leaves the principal obligation in force.
Art. 1277: Confusion does not extinguish a joint obligation except _____.
as regards the share corresponding to the creditor or debtor in whom the two characters concur.
T/F: In a joint obligation, confusion will extinguish the entire obligation.
False. It will extinguish only the share corresponding to the creditor or debtor in whom the two characaters concur.
T/F: In a solidary obligation, confusion will extinguish the entire obligation.
TRUE
Reason/Basis for Confusion or Merger:
1.) A person cannot claim payment from himself. 2.) When there is a confusion of rights, the purposes for which the obligation may have been created are deemed realized