Extinguishment

Question 1

Five modes of extinguishment

Answer 1

1. Loss of the thing due
2. Condonation or remission of a debt
3. Confusion or merger
4. Compensation
5. Novation

Question 2

Controlling provision on ‘loss of thing due”

Answer 2

Article 1189

Question 3

Three definitions of “loss”

Answer 3

1. It perishes
2. It goes out of commerce
3. It disappears in such a way that its existence is unknown or it cannot be recovered.

Question 4

Requisites to invoke extinguishment of obligation pursuant to “loss of the thing”

Answer 4

1. Obligation is to deliver a determinate thing
2. Lost without fault of debtor
3. Lost before delay

Question 5

Eight exceptions to “loss of a thing”

Answer 5

1. Unless law so provides
2. Unless stipulation so provides
3. Nature of obligation requires assumption of risk
4. After incurring delay
5. Lost because of debtor’s fault
6. Debtor promised to deliver the same thing to two or more persons who do not have the same interest.
7. Delivery of generic thing
8. Obligation to deliver a thing arises from crime

Question 6

Controlling provision for the exception “debtor promised to deliver the same thing to two or more persons who do not have the same interest.”

Answer 6

Article 1165

Question 7

Controlling provision for the exception “obligation is to deliver a generic thing

Answer 7

Article 1263

Question 8

Controlling provision for the exception “obligation to deliver a thing arises from a crime”

Answer 8

Article 1268

Question 9

Controlling provision “partial loss of a specific thing”

Answer 9

Article 1264

Question 10

Two definitions of “partial loss of a specific thinng”

Answer 10

1. A portion of the thing is lost or destroyed or suffers depreciation or deterioration
2. Difficulty in obligations to do

Question 11

Controlling provisions equating “partial loss of a specific thing” to “difficulty in [performance of] obligations to do”

Answer 11

Article 1267

Question 12

General Rule of “partial loss of a specific thing”

Answer 12

Partial loss of the object of the obligation does not extinguish the obligation

Question 13

Controlling provision of “presumption of fault”

Answer 13

Article 1265

Question 14

General rule of “presumption of fault”

Answer 14

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

Question 15

Exception to the general rule of “presumption of fault”

Answer 15

The general rule does not apply in case of earthquake, flood, storm or other natural calamity

Question 16

Controlling provision on “impossibility of performance” (obligations to do)

Answer 16

Article 1266

Question 17

General rule on “impossibility of performance”

Answer 17

The debtor be released when the prestation becomes legally or physically impossible without the fault of the obligor

Question 18

Controlling provision on “difficulty of performance” and “doctrine of unforeseen events”

Answer 18

Article 1267

Question 19

Four requisites of Article 1267

Answer 19

1. The event or change in circumstances could not have been foreseen at the time of the execution of the contract
2. It makes the performance of the contract extremely difficult but not impossible.
3. It must not be due to the act of any of the parties
4. The contract is for a future prestation.

Question 20

General rule on “difficulty of performance” and “doctrine of unforeseen events”

Answer 20

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.

Question 21

Exception on “difficulty of performance” and “doctrine of unforeseen events” a.k.a. mora accipiendi

Answer 21

The thing having been offered by the debtor to the person who should receive it, the creditor refused without justification to accept it

Question 22

Controlling provision on “the right of the creditor to proceed against third persons”

Answer 22

Article 1269

Question 23

General rule on “the right of the creditor to proceed against third persons”

Answer 23

The creditor shall have all the rights of action which the debtor may have against third persons by reason of the loss

Question 24

Controlling provision on “ remission of a debt”

Answer 24

Article 1270

Question 25

Definition of “condonation or remission”

Answer 25

Act of liberality. The gratuitous abandonment by the creditor of his right against the debtor

Question 26

Five Requisites of condonation

Answer 26

1. Gratuitous
2. Accepted by the obligor
3. Parties have capacity
4. Condonation must be officious
5. Comply with the forms of donation, if it is an express condonation

Question 27

Controlling provision to “Presumption in case of voluntary delivery of the document of indebtedness by the creditor

Answer 27

Article 1271

Question 28

Article 1271(1)

Answer 28

1. Prima facie presumption of condonation
2. May be rebutted by contrary evidence
3. Presumption is applicable only to private documents

Question 29

Article 1271(2)

Answer 29

Remission becomes null and void upon proof that it is inofficious

Question 30

Controlling provision on “Presumption in case document is found in possession of the debtor

Answer 30

Article 1272

Question 31

T/F. Presumption of voluntary deliver. Rebuttable. Not inconclusive.

Answer 31

True.

Question 32

T/F. Presumptions in joint or solidary obligations

Answer 32

True.

Question 33

Controlling provisions on “condonation when it comes to principal and accessory obligations”

Answer 33

Arts. 1273-1274

Question 34

General rule on “condonation when it comes to principal and accessory obligations”

Answer 34

If the condonation refers to the principal obligation, all the accessory obligations are extinguished.

Question 35

Exception on “condonation when it comes to principal and accessory obligations”

Answer 35

If the condonation refers only to the accessory obligations, the principal obligation continues to subsists

Question 36

Controlling provision on confusion or merger of rights

Answer 36

Arts. 1275 & 1276

Question 37

Definition of confusion or merger

Answer 37

the meeting in the same person of the qualities of creditor and debtor with respect to one and the same obligation

Question 38

Three requisites of confusion or merger

Answer 38

1. Must be the same person
2. Must be principal creditor or debtor
3. Merger must be complete and definitive

Question 39

Effect of confusion or merger as to joint obligations

Answer 39

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

Question 40

Effect of confusion or merger as to solidary obligations

Answer 40

Entire obligation is extinguished subject to reimbursement