EXTINGUISHMENT OF OBLIGATION Flashcards
Article. 1231. Obligations are extinguished in???
- By payment of 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
may consist of not only in the delivery of money but also the giving of a thing, the doing of an act, or not doing of an act.
Payment
Two requisites for payment
- Integrity of Prestation
- Identity of Prestation
The very prestation due must be delivered and released
Identity Prestation
the prestation must be fulfilled and complete otherwise, obligation would not be extinguished.
Integrity Prestation
General Rule: There is no valid payment if there is no complete performance
Exceptions:
- Substantial compliance in good faith
- Waiver
- Application of payments if the debts are equally onerous
fulfilment of the obligations agreed to in a contract, with only slight variances from the exact terms and/or performance unimportance omission or minor defects
Substantial Performance
True or False : If the third person pays for the obligation of the debtor with the knowledge and consent of the latter, the payor is entitled to be reimbursed for the full amount.
True
True or False :
If the payment was made without the knowledge of or against the will of the debtor, the reimbursement shall only be up to the amount or extent by which the debtor was benefited.
True
The creditor is bound to accept payment from ?
- The debtor
- Any person who has an interest in the obligation Ex. Guarantor
- Third person who has no interest in the obligation when there is stipulation that he can make payment.
What if the stranger paid with the knowledge and consent of the debtor?
In such a case, he may demand reimbursement and subrogation covering even rights as guaranty, penalty clause, mortgage and the like.
What if the stranger paid without the debtor’s knowledge and consent?
In this case, subrogation cannot be availed of. Also, what can be demanded only is beneficial reimbursement because he (the stranger) was at fault in not seeking first the consent of the debtor.
Payment shall be made to the following:
- To the person whose favor the obligation has been constituted such as the creditor.
- To the successor-in-interest (heirs)
- To any person authorized to received it.
True or False:
he deposit of an obligation by the debtor in a bank in the name of the creditor (without authorization of the Creditor) does not constitute payment
True
True or False:
Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered, or insofar as the payment has been beneficial to him.
TRUE
The proceeding by which a debtor’s creditor is subjected to the payment of his own debt to another
Garnishment
True or False:
Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall be valid.
False.
Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall NOT be valid.
whereby propionerty is allienated to the creditor is satisfaction of a debt in money, shall be governed by the law of sales.
Dation in payment
Implied forgiveness (pagpapatawad)
Condonation
A release from debt or claim (pagpapatawad sa pagkakautang o pananagutan)
Remission
an agreement made between two contracting parties to allow for the substitution of a new party for an existing one.
Novation
consists in the abandonment of all property of the debtor for the benefit of his creditors in order that the latter (creditors) may apply the proceeds thereof to the satisfaction of their credit.
Cession
