Extinguishment Flashcards
Five modes of extinguishment
- Loss of the thing due
- Condonation or remission of a debt
- Confusion or merger
- Compensation
- Novation
Controlling provision on ‘loss of thing due”
Article 1189
Three definitions of “loss”
- It perishes
- It goes out of commerce
- It disappears in such a way that its existence is unknown or it cannot be recovered.
Requisites to invoke extinguishment of obligation pursuant to “loss of the thing”
- Obligation is to deliver a determinate thing
- Lost without fault of debtor
- Lost before delay
Eight exceptions to “loss of a thing”
- Unless law so provides
- Unless stipulation so provides
- Nature of obligation requires assumption of risk
- After incurring delay
- Lost because of debtor’s fault
- Debtor promised to deliver the same thing to two or more persons who do not have the same interest.
- Delivery of generic thing
- Obligation to deliver a thing arises from crime
Controlling provision for the exception “debtor promised to deliver the same thing to two or more persons who do not have the same interest.”
Article 1165
Controlling provision for the exception “obligation is to deliver a generic thing
Article 1263
Controlling provision for the exception “obligation to deliver a thing arises from a crime”
Article 1268
Controlling provision “partial loss of a specific thing”
Article 1264
Two definitions of “partial loss of a specific thinng”
- A portion of the thing is lost or destroyed or suffers depreciation or deterioration
- Difficulty in obligations to do
Controlling provisions equating “partial loss of a specific thing” to “difficulty in [performance of] obligations to do”
Article 1267
General Rule of “partial loss of a specific thing”
Partial loss of the object of the obligation does not extinguish the obligation
Controlling provision of “presumption of fault”
Article 1265
General rule of “presumption of fault”
If the thing is lost while in the possession of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to the contrary
Exception to the general rule of “presumption of fault”
The general rule does not apply in case of earthquake, flood, storm or other natural calamity
Controlling provision on “impossibility of performance” (obligations to do)
Article 1266
General rule on “impossibility of performance”
The debtor be released when the prestation becomes legally or physically impossible without the fault of the obligor
Controlling provision on “difficulty of performance” and “doctrine of unforeseen events”
Article 1267
Four requisites of Article 1267
- The event or change in circumstances could not have been foreseen at the time of the execution of the contract
- It makes the performance of the contract extremely difficult but not impossible.
- It must not be due to the act of any of the parties
- The contract is for a future prestation.
General rule on “difficulty of performance” and “doctrine of unforeseen events”
The debtor shall not be exempted from the payment of the price of the determinate thing, whatever may be the cause for loss. Thus, even if the cause for the loss of the determinate thing is through fortuitous event.
Exception on “difficulty of performance” and “doctrine of unforeseen events” a.k.a. mora accipiendi
The thing having been offered by the debtor to the person who should receive it, the creditor refused without justification to accept it
Controlling provision on “the right of the creditor to proceed against third persons”
Article 1269
General rule on “the right of the creditor to proceed against third persons”
The creditor shall have all the rights of action which the debtor may have against third persons by reason of the loss
Controlling provision on “ remission of a debt”
Article 1270
Definition of “condonation or remission”
Act of liberality. The gratuitous abandonment by the creditor of his right against the debtor
Five Requisites of condonation
- Gratuitous
- Accepted by the obligor
- Parties have capacity
- Condonation must be officious
- Comply with the forms of donation, if it is an express condonation
Controlling provision to “Presumption in case of voluntary delivery of the document of indebtedness by the creditor
Article 1271
Article 1271(1)
- Prima facie presumption of condonation
- May be rebutted by contrary evidence
- Presumption is applicable only to private documents
Article 1271(2)
Remission becomes null and void upon proof that it is inofficious
Controlling provision on “Presumption in case document is found in possession of the debtor
Article 1272
T/F. Presumption of voluntary deliver. Rebuttable. Not inconclusive.
True.
T/F. Presumptions in joint or solidary obligations
True.
Controlling provisions on “condonation when it comes to principal and accessory obligations”
Arts. 1273-1274
General rule on “condonation when it comes to principal and accessory obligations”
If the condonation refers to the principal obligation, all the accessory obligations are extinguished.
Exception on “condonation when it comes to principal and accessory obligations”
If the condonation refers only to the accessory obligations, the principal obligation continues to subsists
Controlling provision on confusion or merger of rights
Arts. 1275 & 1276
Definition of confusion or merger
the meeting in the same person of the qualities of creditor and debtor with respect to one and the same obligation
Three requisites of confusion or merger
- Must be the same person
- Must be principal creditor or debtor
- Merger must be complete and definitive
Effect of confusion or merger as to joint obligations
If the confusion takes place in one of the joint debtors, the principal obligation is partially extinguished up to the share which corresponds to him
Effect of confusion or merger as to solidary obligations
Entire obligation is extinguished subject to reimbursement
