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Timestamp: 2019-01-17 00:06:16
Document Index: 564109152

Matched Legal Cases: ['Art. 1231', 'Art. 1232', 'Art. 1233', 'Art. 1234', 'Art. 1235', 'Art. 1291', 'Arts 1278', 'Art. 1278', 'Art. 1275', 'Art. 1156', 'Art. 1157', 'Art. 1158', 'Art. 1159', 'Art. 1160', 'Art. 1161', 'Art. 1162']

Essay about Extinguishment of Obligations - 3042 Words
Home Essays Extinguishment of Obligations
Topics: Debt, Money, Debtor Pages: 12 (3042 words) Published: October 13, 2013
Section 1 – PAYMENT OR PERFORMANCE
It is the fulfillment of a promise; the performance of an agreement. This consists of: a. the delivery of money or its equivalent in specific property or services, or b. doing a certain act or not doing a certain act.
a. The thing or service contemplated must be delivered or rendered. 1. The debtor of the thing cannot compel the creditor to accept a different one although the latter maybe of the same value as, or more valuable than that which is due. 2. In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s will. 3. In obligations to give a generic thing whose quality and circumstances have not been stated, the debtor cannot deliver a thing of inferior quality. 4. In monetary obligations, the payment must be in the legal tender although the parties may stipulate that payment may be made in currency other than Philippine legal tender at the time of payment.
b. Fulfillment of the obligation must be complete.
1. If the obligation has been substantially performed in good faith. 2. When the obligee accepts the performance knowing its incompleteness or irregularity, and without expressing any protest or objection.
Substantial performance in good faith
If the obligation has been substantially performed in good faith, it is considered as though there had been strict and complete fulfillment. The debtor is allowed to recover from the creditor less damages suffered by the latter. Requisites:
1. There must be a substantial performance.
2. The obligor must be in good faith.
Acceptance of incomplete or irregular payment
If the obligee accepts the payment knowing that it is incomplete or irregular and without expressing any protest, the obligation is considered fulfilled and the whole debt is extinguished. Requisites:
1. The obligee knows that the performance is incomplete or irregular. 2. He accepts the performance without expressing any protest or objection.
Payment made by third person
The obligee cannot be compelled to accept payment from a third person because the obligee may not have the confidence in the honesty of the third person who might deliver a defective thing or pay with a check which may not be honored.
2. When the third person has an interest in the fulfilment of the obligation (guarantor or co-debtor). Persons from whom the creditor must accept payment
2. Person who has an interest in the obligation
3. From a third person who has no interest in the obligation but there is a stipulation that he can make payment.
Rights of the third person making the payment
a. Payment without the knowledge or against the will of the debtor 1. The payer can ask for reimbursement. He can recover from the debtor but only insofar as the payment was beneficial to the latter. 2. He is not entitled to be subrogated in the rights of the creditor. b. Payment with the consent of the debtor
1. He can recover from the debtor what he has paid.
2. He shall be entitled to be subrogated in the rights of the creditor.
When payment by third person considered a donation
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. However, if the creditor accepts the payment, it shall be valid as to him and the payer although the debtor did not give his consent to the donation. a. Rights of the third person making the payment
1. If the debtor consented to the non-reimbursement, the third person cannot recover anything from the debtor. This is so because in donation, the cause is liberality of the donor. 2. If the debtor consented to the payment but not to the non-reimbursement, the third person can recover what he has paid and he shall be entitled to the subrogation....
...Book 4: Obligations & Contracts Title. I. – OBLIGATIONS CHAPTER 4 > EXTINGUISHMENT OF OBLIGATIONS GENERAL PROVISIONS Art. 1231. Obligations are extinguished: (1) By payment or performance: (2) By the loss of the thing due: (3) By the condonation or remission of the debt; (4) By the confusion or merger of the rights of creditor and debtor; (5) By compensation; (6) By novation. Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code. (1156a) SECTION 1. – Payment or Performance Art. 1232. Payment means not only the delivery of money but also the performance, in any other manner, of an obligation. (n) Art. 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. (1157) Art. 1234. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. (n) Art. 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully...
...NOVATION (Article 1291) * The extinction of an obligation through the creation of a new one which substitutes it * The substi or change of an oblig by another, which extinguishes or modifies the first, either: * by changing its object or principal conditions * by substi another in place of the debtor * by subrogating a third person in the rights of the creditor (Subrogate - Take over a legal claim or right against a third party from another party who previously owned that right or claim) Art. 1291 Obligations may be modified by: (1) Changing their object or principal conditions; (2) Substituting the person of the debtor; (3) Subrogating a third person in the rights of the creditor. (1203) COMPENSATION (Article 1278) * the extinguishment to the concurrent amount of the debts of the two persons who, in their own right, are debtors and creditors of each other (Arts 1278, 1290) * involved the simultaneous balancing of 2 oblig in order to exting them to the extent in which the amt of one is covered by that of the other Art. 1278. Compensation shall take place when two persons, in their own right, are creditors and debtors of each other. (1195) CONFUSION (or merger) (Article 1275) * the meeting in one person of the qualities of creditor and debtor with respect to the same obligation Art. 1275. The obligation is extinguished from the time the...
... | |II. |Course Title |: |OBLIGATION AND CONTRACTS | |III. |Course Credit |: |3 units | |IV. |Course Description |: |This course deals with the basic principles of law in relation to contracts and obligations. It involves discussion of the nature, sources, kinds and extinguishments of contracts and | | | | |other miscellaneous topics relevant to the course. Topics include general legal concepts of enforceable rights of obligation: types of laws and national legal systems: nature, purpose,| | | | |scope and key principles of national legislation; sources of obligations; kinds of obligations under the Civil Code; specific circumstances affecting obligations in general (fortuitous| | | | |events, frauds, negligence, delay and breach of contract); duties of obligor to do or not to do;...
...CODE OF THE PHILIPPINES BOOK IV OBLIGATIONS AND CONTRACTS Title. I. - OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book. (1090) Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (1091a) Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. (n) Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of Title XVIII of this Book, regulating damages. (1092a) Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title...