Extinguishment of Obligations (2) Flashcards
Grounds for Extinguishment of Obligation
- Payment or Performance
[[2. Loss of the Thing Due]]
- Condonation or Remission
- Confusion or Merger of Rights
- Compensation
- Novation
- Others (farm dat pig)
1262
“Art. 1262. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, [and] before he has incurred in DELAY.
When by law [or] stipulation, the obligor is liable even for fortuitous events, the loss of the thing does not extinguish the obligation, and he shall be responsible for DAMAGES.
The same rule applies when the nature of the obligation requires the assumption of risk. (1182a)”
LOSS OF THE THING DUE 1262
(2nd mode of extinguishing obligation) IOW, what are the elements in order an obligation be extinguished by the loss of the thing due
“An obligation which consists in the delivery of a DETERMINATE THING shall be extinguished if:
- it should be lost or destroyed WITHOUT THE FAULT of the debtor, [and]
- before he has incurred in DELAY.”
note
The debtor, when already in default, not ordinary delay but default, cannot also avail of fortuitous event as an excuse. Same thing here, you cannot avail of, the loss of the thing due, if the debtor is already being in default.
Meaning of “loss” of the thing
(1189)
- the thing perishes
- goes out of commerce
- existence became unknown (and) cannot be recovered
Legal or Physical Impossibility (1266)
question note
- aka factual impossibility
The debtor in obligations TO DO shall also be released when the prestation becomes legally or physically impossible without the fault of the obligor.
note
- obligation TO DO
- personal obligation
- after constitution of obgliation
1267
latin version
or called doctrine of
“When the SERVICE has become so difficult as to be manifestly beyond the contemplation of the parties, the obligor may also be released therefrom, in whole or in part”
Rebus Sic Stantibus
doctrine of Frustration of Commercial Object
doctrine of Unforeseen Events
A sells his land on the condition that it must be a residential building that must be placed. B agreed.
after, Resolution 27 s-1960 converted that residential lot to commercial.
B built a commercial lot. A filed an action in court
ISSUE
Whether or not Resolution No. 27 s-1960 can nullify or supersede the contractual obligations assumed by the defendant.
Yes, resolution No. 27 can nullify or supersede the contractual obligations.
In the case of Ortigas v. Feati Bank
While non-impairment of contracts is constitutionally guaranteed, the rule is not absolute, since it has to be reconciled with the legitimate exercise of police power
This is an example of Legal Impossibility, meaning; an impossibility to perform an obligation stipulated in a contract because the residential area had already been converted into a commercial zone
If 1267 of Rebus Sic Stantibus is explained in Ortigas v Feati Bank
How can one INVOKE that doctrine
how is it explained in the case of Naga Telephone v. CA?
(a) the event or change in circumstances could not have been foreseen at the time of the execution of the contract;
(b) it makes the performance of the contract extremely difficult but not impossible;
(c) it must not be due to the act of ANY of the parties; and
(d) the contract is for a future prestation.
knowledge check: exceptions to invoking Fortuitous Events
- Law
- Stipulation
- Nature of Obligation requires assumption of risk
- Debtor is in bad faith (promises to deliver the same object to two or more persons)
- When the thing proceeds from a criminal offense (unless creditor is in mora accepiendi)
Grounds for Extinguishment of Obligations
- Payment or Performance
- Loss of the Thing Due
3. Condonation or Remission
- Confusion or Merger of Rights
- Compensation
- Novation
- Others
Grounds for Extinguishment of Obligations
- Payment or Performance
- Loss of the Thing Due
3. Condonation or Remission - Confusion or Merger of Rights
- Compensation
- Novation
- Others
1270
“Art. 1270. Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly.
One and the other kind shall be subject to the rules which govern inofficious (contra bonos mores) donations. Express condonation shall, furthermore, comply with the forms of donation. (1187)”
Define Condonation/Remission
An act of liberality where the C
- renounces the enforcement of obligation, and
- extinguishes the obligation in whole or in part
Elements of Remission/Condonation
- Gratuitous
- nothing in return or any other consideration - Accepted by Obligor
- C forgetting the debt is akin to donating to the D
- no person can be compelled to accept the generosity of another - ## Demandable Obligation
What are the limitations on the Law of Donation insofar as FORMALITIES are concerned?
[a]
Donation of real property required to be in a PUBLIC INSTRUMENT in order to be valid
[b] donation of personal property may be ORALLY provided SIMULTANEOUS DELIVERY of the thing/document representing the right donated, UNLESS the value of the thing donated is more than 5k, in which case it must be in WRITING.
What are other limitations of donations?
(1) Donation Mortis Causa shall observe the Rules on Testamentary Disposition (through last will and testament) [748]
(2) Acceptance should be made and communicated to donor DURING THE LIFETIME of donor and donee. [746]
(3) Donor must reserve means for support [750]
(4) Must not be inofficious [751]
- must NOT exceed free portion PORTION of the estate of the donor
note
Donation Mortis Causa - gift made in contemplation of death
free portion - legitime is 3/4 for compulsory heirs and 1/4 is the free portion that can be donated persons who are NOT compulsory heirs . If more than or excessive, then it is considered inofficious
If the donatino would take effect after the death of the donor, what shall apply ?
Rules on Testamentary Disposition
- aka rules on last will & testament
- so if CONDONATION of the creditor would have to take effect after his death (becomes mortis causa) must be complied with last will & testament.
