Chapter 3 Flashcards
(109 cards)
1
Q
Enumerate the reasons for obligations to be extinguished
A
- Payment or performance,
- Loss of the the due,
- The condonation or remission of debt,
- The confusion or merger of the rights of the creditor and debtor,
- Compensation,
- Novation
2
Q
Recession can extinguished the obligations of law. T/F
A
True
3
Q
It is the consummation or fulfillment of a prestation that is due, leading to the extinguishment of the obligation.
A
Concept of Payment - Art.1232
4
Q
If A is obligated to repair the computer of B, payment is made by performing the service. T/F
A
True
5
Q
This article sets out the requirement for payment in order to extinguish an obligation and this is must be complete. Therefore, if payment is not complete or if performance is only partial, there is no extinguishment of obligation.
A
Article 1233
6
Q
Partial or irregular performance will produce the extinguishment of an obligation. T/F
A
False - will not produce
7
Q
A debt to deliver a thing (including money) or to render service is not understood to have been paid unless the thing or service has been completely delivered or rendered, as the case may be.
A
Integrity of prestation
8
Q
When the existence of a debt is admitted by the debtor or established by the evidence of the creditor, the burden of proving extinguishment by payment devolves upon the debtor who claims payment. T/F
A
True
9
Q
2 Requisites for the application of Article 1234 where the obligor may recover from his obligations.
A
1) there must be substantial performance
2) the obligor must be in good faith
10
Q
S obliged himself to deliver 500 bags of cement to B for a certain price. However, despite diligent efforts on his part, S was able to deliver only 400 bags because of cement shortage. Can S recover from his obligations to B?
A
S can recover as through there had been complete delivery less the price of the 100 bags, S must show, however, that he attempted in good faith to comply with his obligation.
11
Q
Obligee cannot accept the performance knowing its incompleteness or irregularity, but without expressing any protest or objection, then obligation is not deemed fully complied with. T/F and what article?
A
False - Obligee should accept the performance even if it’s incomplete because of not expressing protest or objection and obligation will be deemed fully complied with based on Art.1235
12
Q
The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary. T/F`and what article?
A
True - Article 1236
13
Q
The creditor may not, for personal reasons, desire to have any business dealings with a third person; or the creditor may not have confidence in the honesty of the third person who might deliver a defective thing or pay with a check which may not be honored. True/False
A
True
14
Q
D owes C the sum of 1,000 but already paid the 400. If S, a stranger to the obligation, offers to pay C 1,000 and accept it but D doesn’t have the knowledge about it, can S recover 1,000 from D? Yes or No and why?
A
No, if 400 had already been paid by D, then S is entitled to be reimbursed only for the amount of 600 because it is only to that amount that D has been benefited. S can recover 400 from C who should not have accepted it.
15
Q
D owes C the sum of 1,000. If S, a stranger to the obligation, offers to pay C 1,000 and accept it and D has the knowledge about it, can S recover 1,000 from D? Yes or No and why?
A
Yes, S can recover from D 1,000 with all the rights of subrogation to the accessory obligations such as mortgage, guaranty, or penalty - Article 1237
16
Q
Whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter - what article?
A
Article 1237
17
Q
The person who pays for the debtor is put into the shoes of the creditor. The payor acquires not only the right to be reimbursed for he has paid but also all other rights which the creditor could have exercised pertaining to the credit either against the debtor or against third persons, be they guarantors or possessor of mortgages.
A
Subrogation
18
Q
D borrowed 10,000 from C. G is the guarantor. Without the knowledge or consent of D, S (stranger) paid C 10,000. If D cannot pay S, can S proceed against G the guarantor for subrogation? Y/N and why?
A
No, S is not entitled to subrogation since he paid without the consent of D.
19
Q
Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires ___________.
A
Debtor’s consent
20
Q
What article embodies the idea that no one should be compelled to accept the generosity of another?
A
Article 1238 - 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.
21
Q
D owes C 10,000. Without the intention of being reimbursed S paid D’s obligation but D did not consent to the donation, can S still recover from D? Yes/No and why?
A
Yes, S may recover from D since there has been no donation, even if originally S did not intend to be reimbursed - Art. 1238
22
Q
The creditor can still be compelled to accept payment even if the person paying has no capacity to make it. T/F
A
False - This is the exception provided in article 1427 (Creditor cannot compelled)
23
Q
X owes Y 100,000 but Y died. Can X give his payment of debt to Y’s husband who lives with her and considered paid? Y/N and why?
A
No , Based on Art. 1240, repayment of a debt must be made in person in whose favor the obligation is constituted or to another authorized to received the payment in his name (like authorized guardian) For deceased, you have to check first if the husband is the administrator of an estate for your obligation considered to be paid.
24
Q
X owes Y 100,000 but Y died. Can you give your payment of debt to Y’s husband who lives with her and considered paid? Y/N and why?
A
No, payment made to a wrong party/not authorized does not extinguished the obligations as to the creditor.
25
Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered, or in so far as the payment has been beneficial to him. T/F
True - based on article 1241
26
Payment made to a third person shall also be valid in so far as it has redounded to the benefit of the creditor. Enumerate the benefit to the creditor need not be proved in the following cases.
1. If after the payment, the third person acquires the creditor’s right;
2. If the creditor ratifies the payment to the third person;
3. If by the creditor’s conduct the debtor has been led to believe that the third person had authority to receive the payment.
27
D delivers P1,000 to C, a minor guardianship, in payment of a debt. C loses P700 of the money in gambling or due to negligence or ignorance, will the debt of D still be considered paid?
No, since he paid it to a minor and probably not an authorized person to received the debt.
28
Article 1242. Payment made in good faith to any person in possession of the credit shall release the debtor. -
Y owes Z and made a promissory noted and it states there "I promise to pay the creditor the amount of 20,000." Then one day, the promissory note was lost by Z and found by Ms. X. Can X ask Y to pay him 20,000 since X has the promissory note? Y/No and why?
No, promissory note is only an instrument, the possession of credit means the right to receive the pay to debt whoever is the creditor.
29
D borrowed 50,000 to C and J owes D 50,000 but C finds it difficult to make D pay for his debt so C decided to file it to the court and made sure to let them know the debt of J to D. Then J decided to pay D, will be his payment valid?
No, because based in Article 1243, the court will not see it as a valid payment since there's a case filed to D regarding his debt to C so the payment of J to D will be put on hold (which can be also called as garnishment)
30
Based on Article 1244, In obligations to do or not to do, an act of ___________ cannot be substituted by another act of _________against the obligee’s will.
forbearance, forbearance
31
A special form of payment where the ownership of property is transferred to his creditor to pay a debt in
money.
Dation in Payment/ dacion en pago)
32
The debtor is given the right to render another prestation in substitution.
Facultative obligations
33
A owes 10,00 to Z but when Z asked for the payment, A does not have the money yet but he has a spare phone. Can he use this as a substitute for the payment instead? Y/N and why?
Yes, he can offer this to the creditor as per dation en pago
34
Article 1246 is a principle of equity that supplies justice in cases where there is lack of precise declaration in the obligation. As per the article, can the debtor waived by delivering a thing of superior quality that the creditor asked? Y/N
Yes, because the purpose of the obligation and other
circumstances shall be taken into consideration to determine the quality or kind of thing to be.
35
Based on article 1247 - the extrajudicial expenses required by the payment shall be for the account of the debtor. When A borrowed money from B. A and B agreed to divide the rights of everything to them equally. Can A present this stipulation to the court if B asked him to shoulder everything for the judicial expenses? Y/N and why?
Yes, because as per the Article 1247, debtor pays for extrajudicial expense but if the parties have made a stipulation as to who will bear the expenses, then their stipulation
shall be followed.
36
The creditor may accept but he cannot be compelled to accept
partial performance. The debtor has the duty to comply with the whole of the obligation and he will be required to make partial payments even if he does not wish to do so.T/F
False, In order that payment may extinguish an obligation, it is necessary that there, be complete performance of the prestation so he cannot be required to make partial payments especially if he does wish to do it.
37
State a case where a partial performance can be allowed legally by the creditor.
1. When there is an express stipulation to that effect
2. When the debt is in part liquidated (definitely and determined or computed) and in part unliquidated
3. When the different prestations in which the obligation consists are subject to different terms or conditions which affect some of them. In obligations which comprehend several
distinct prestations (obligation to pay debt in installments), it is evident that the prestations need not be executed simultaneously but each successive execution thereof
must be complete.
38
Payment by means of promissory notes or check bills does not extinguish the obligation even if they have been cashed. T/F
True - It is the right of creditor to refuse or accept – Promissory notes, checks bills of exchange and other commercial documents are not legal tender therefore, the creditor cannot be compelled to accept them but in the meantime, the demandability of the original obligation can be suspended.
39
Payment by means of mercantile documents does not extinguish the obligation unless they have been impaired through the fault of the creditor. T/F and what article?
True - Art 1249
40
Philippine currency notes have no limit to their legal tender power. T/F
True
41
B went to a store and buy sandals cost of 1,005 then she has a purse full of 5 pesos so she used this to pay for the slippers. Is the cashier allowed to not accept this payment? Y/N and why
Yes, because based on the legal tender law 1-, 5-, and 10-Piso shall not exceed to Php 1,000. - Art 1250
42
B went to a store and buy candies cost of 98.50 pesos then he has a piggy bank full of 25 centavo so he used this to pay for the candies. Is the cashier allowed to not accept this payment? Y/N and why?
No, because based on the legal tender law -, 5-,10-, and 25-Sentimo shall be legal tender in amounts not exceeding Php 100. - Art 1250
43
Based on Article 1251, Payment shall be made in the place designated in the obligation. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expense shall be borne by him. True/False?
True
44
Sandra obliged himself to deliver to Carlos a specific refrigerator. There was no contract agreed that the refrigerator shall be delivered at Carlo’s house. The refrigerator is in a ship in transit, the place of delivery shall be the domicile of Carlos. True/False and why?
False, it should be in the domicile of Sandra because based on Art.1250 The obligation is to deliver a specific thing, payment shall be made at the place where the thing might be, usually or habitually. If merely temporarily there, as when the object is being shipped or is already in the ocean, payment should be at the domicile of the debtor.
45
It is the designation of the debt to which payment shall be applied when the debtor owes several debts in
favor of the same creditor.
Application of Payment
46
Enumerate the requisites of application of payment
a. There must be two or more debts
b. The debts must be of the same kind (ex. both monetary)
c. The debts are owed by the same debtor to the same creditor
47
D borrowed 10,000 from C and later on D additionally borrowed 5,000 from C. Then after 2 days, D paid C 3,000 and asked if this can be deducted to the 5,000 since he wants to pay 10,000 in a full amount. Can C allows him to decide on this?
Yes because as per the Art. 1252 if the Debtor has the same kind in favor of one and the same creditor, he/she may declare at the time of making the payment, to which of them the same must be applied. He has the right to decide on where the payment should be deducted as long as it's not stipulated.
48
If the debt produces interest, payment of the principal shall be deemed first. True/False?
False, Based on Art 1253 - The debtor cannot choose to credit his payment to the principal before the interest is paid hence the payment must be applied first to the interest
49
When the payment cannot be applied in accordance with the preceding rules, or if application cannot be inferred from other circumstances, the debt which is most ______ to the
debtor
onerous
50
D borrowed 5,000 to C and later on borrowed another 3,000. C agreed not to put any interest to both debts. D decided to pay 1,000 to C. C asked D where it will deducted but D cannot decide. Legally, where should C deduct the 1,000? To his debt of 5,000 or to the 3,000?
C should applied to all of them proportionately so 5,000 minus 500 and 3,000 minus 500 - based on Article 1254
51
It is the abandonment or assignment by the debtor of all his property in favor of his creditors so that the latter may sell them and recover their claims out of the proceeds.
Payment by Cession
52
Dation en pago and payment by cession both involve property to pay for debt. In dation en pago, you give up all of your properties to pay for your debt. True/False
False - In dation en pago, you give up one of your property to pay for your debt.
53
Dation en pago and payment by cession both involve property to pay for debt. In payment by cession, you give all of your properties to pay for your debts to one creditor. True/False
False - In payment by cession, there should be two or more creditors and you give up all properties to pay for your debts
54
It is the act of the debtor offering to his creditor the performance of an obligation.
Tender of payment
55
It is the act of depositing the sum or the thing due in court whenever the creditor unjustly refuses or in cases when the creditor cannot accept it.
Consignation
56
When a debtor gave a valid tender of payment but the creditor refuse to accept it without any valid reason. What should be the next step to the debtor following the article of 1255?
The debtor shall notify the creditor or any person interested in the fulfillment of the obligation of his (the debtor’s) intention to deposit the sum or thing due with the judicial authorities. (Consignation to court)
57
How many times does the debtor needs to notify the creditor when he consign his payment to court/judicial authorities?
2 times as per the due process
58
When the creditor is incapacitated to receive the payment at the time it is due, the debtor is allowed to consign his payment to court even without tender of payment. True/False
True
59
If the creditor to whom tender of payment has been made refuses without just cause to accept it, the debtor shall be released from responsibility by the consignation of the thing or sum due. True/False and what article?
True - Article 1256
60
C returned the money to D as a valid tender of payment but D refused to accept it without any valid reason and C decided to consign it to court without the awareness of D, will the obligation of C extinguished? Y/N and why?
No, because based on Art. 1257, In order that the consignation of the thing due may release the obligor, debtor should announce/notify his creditor first.
61
What is the purpose of the second notice in the process of consignation of debt to court?
The purpose of the second notice is to enable the creditor to withdraw the thing or sum deposited in case he accepts the consignation.
62
The expenses of consignation, when properly made, shall be charged against the debtor or creditor?
Creditor bears expenses of consignation based on Article 1259
63
The debtor does not have a choice to withdraw the thing or the sum deposited even if the creditor has not accepted the consignation, or even before a judicial declaration that the consignation has been properly done. True/False
False, the debtor may withdraw as a matter of right the thing or sum deposited (1) before the creditor has accepted the
consignation or (2) before a judicial declaration that the consignation has been properly made, as he is still the owner of the same
64
If, the consignation having been made, the creditor should authorize the debtor to withdraw the same, he shall lose every preference which he may have over the thing. True/False
True - based on article 1260
65
A thing is considered lost when it perishes or goes out of commerce or disappears in such a way that its existence is unknown or it cannot be recovered.
LOSS OF THE THING DUE
66
In order that an obligation may be extinguished by the loss of thing, enumerate the following requisites that must be present.
1. The obligation is to deliver a specific or determinate thing
2. The loss of the thing occurs without the fault a the debtor
3. The debtor is not guilty of delay
67
When the obligation to deliver a specific thing arises from a crime, the debtor will be exempted from liability. True/False?
False, the debtor will still not be exempt from liabilty based on Art. 1262
68
In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation.
Article 1263 - genus nunquam perit
69
The debtor loss the generic thing in a fortuitous event and will still be compelled to deliver a thing of the same kind.. The creditor, however, cannot demand a thing of superior quality and neither can the debtor deliver a thing of inferior
quality.
True
70
A gave his car to B for payment of his debt but later on A found out that the car was not legally imported. Can we say that since A already paid B by giving his car, the obligation is already extinguished? Y/N and why?
No, because the partial loss of the object should still be determine by the court for the obligation to be extinguished. -Art. 1264
71
Art. 1265 establishes a disputable presumption of fault whenever the thing to be delivered is lost in the possession of the debtor but when this presumptions does not apply when?
In case of earthquake, flood, storm or other natural calamity.
72
A is a comic artist and Company Z approached her to collaborate with them for a meet and greet with poster signing. Company Z already prepared for the event including the venue and the host but 1 week before the event, A encountered an emergency and had a surgery in her left hand, will A be still obligated to Company Z? Y/N and what article?
No, The debtor in obligations to do shall also be released when the prestation becomes legally or physically impossible without the fault of the obligor. - Art. 1266
73
Contractor Y has an obligation to build a house for X within 4 months but suddenly there's a pandemic in the country. Will Contractor Y will be release from his obligation? Y/N and why?
Article 1267 - The general rule is that impossibility of performance releases the obligor.
74
F snatched a phone from E and when a lot of people chased him, F suddenly wants to return it to E but E rejected it without saying the reason why. Will F be released from his obligation?
This is an exemption from the liability of the debtor since it had been offered to E already but still needs to follow due process - Article 1268
75
Z won an appliance set in a contest hosted by X then Z kept the prize in one corner of the room. While playing games Y accidentally kicked one of the appliances and got broken. Does X still obligated to repair/replace it for Z?
No, since X already gave the price to Z, Z should proceed against Y for the loss since the rights of action of the debtor are transferred to the creditor from the moment the obligation is extinguished. Art. 1269
76
It is known as the gratuitous abandonment by the creditor of his right to go after the debtor for the fulfillment of the latter’s obligation to the former.
CONDONATION OR REMISSION
77
Kinds of condonation under as to amount or to extent
Total and Partial
78
While a person may make donations, no one can give more than that which he can give by will.
True - donations must not be inofficious
79
What are the requisites of condonation or remission?
It must be gratuitous
It must be accepted by the obligor
The parties must have capacity; it must not be inofficious; and if made expressly, it must comply with the forms of donations.
80
A made a document to enforce the payment of debt to B then A voluntarily delivers it to the house of B. Can B nullify the waiver/document?
No, because If in order to nullify this waiver it should be claimed to be inofficious and only logical inference is that A is renouncing his rights to B. - art.1271
81
If the document regarding the debt is found in the hands of the debtor and it is not known how he came into possession of the same, the presumption is that it was voluntarily delivered by the creditor. This presumption of voluntary delivery, in turn, gives rise to the presumption of remission.
True
82
D borrowed 50,000 from E but months after D lost his job so he decided to us his sari-sari store as a collateral. Then one day, H went to E to get the sari-sari store since H is the real owner of it. Can E go after D since he is not the owner of it?
if the 50,000 is not yet paid, yes since the sari sari store is only a collateral or accessory obligation
83
The accessory obligations cannot exist without the principal obligation, the latter may exist without the former. T/F and why?
True, Based on Article 1273, the accessory follows the principal only
84
It is a type of form where made by the creditor either orally or in writing although the required formalities for donation must be observed.
Express
85
If the value of the property exceeds P5,000, the condonation and the acceptance must be in any form.
No, it must be in writing (public or private)
86
It is the meeting in one person of the characters of the creditor and debtor.
CONFUSION OR MERGER
87
The law treats confusion or merger as a mode of extinguishing obligations. True/False
True - if a debtor is his own creditor, enforcement of the obligation becomes absurd since a person cannot claim payment from himself
88
Merger, which takes place in the person of the guarantor, while it extinguishes the guaranty and the principal obligation. True/False
False - The principal obligation will still be in force
89
Each debtor has his own creditor to whom he is liable and confusion taking place in the person of any debtor or creditor does not affect the other. True/False
True
90
In a solidary obligation there is multiple obligations and every debtor is individually responsible for the payment of the obligation. True/False
False - remember that in a solidary obligation there is only one obligation for different debtors
91
It shall take place when two persons, in their own right are creditors and debtors of each other.
COMPENSATION
92
Kinds of compensation under as to cause or origin
Legal, Voluntary or conventional, Judicial, facultative
93
Judicial - this is compensation that may be claimed by only one of the parties. True/False
False, Facultative
94
Voluntary or conventional - when the parties agree to compensation when debts are not yet due. True/False
True
95
Based on Article 1279. In order that compensation may be proper, either of them can be any retention or controversy, commenced by third persons and communicated in due time to the debtor. True/False
False - neither of them can be any retention or controversy
96
Based on Article 1279. In order that compensation may be proper, each one of the obligors be bound principally, and that he is a guarantor of the other. True/False
False - they should be both principal creditor
97
It is the modification or extinguishment of an obligation by another, either by changing the object of the obligation or by substituting the person of the debtor or subrogating a third person in the rights of the creditor.
Novation
98
What are the two functions of Novation?
one is to extinguish an existing obligation and the other is to
substitute a new one in its place.
99
Dation en pago is an example of changing the object of the obligation. True/False
True
100
Initially, A gave his Honda sedan to Z for payment but A decided to replace the car to Toyota sedan so he told Z that he will get the Honda sedan to her house on Monday. But Z found out that the Toyota sedan of A is currently in repair. Should Z allow A to recover his Honda sedan?
No, In order that an obligation may be extinguished by another which substitutes the same, it is imperative that it be so declared in unequivocal terms.
101
Z volunteered to pay for his husband's debt so Y proposed to X that Z will now pay the debt and accepted it. But, when X tried to collect the money from Z, she had an emergency so she failed to pay for it. Can X compelled Y for this? Y/N and why?
No. because the insolvency of the new debtor, who has been proposed by the original debtor and accepted by the creditor, shall not revive the action of the latter against the original obligor. Art. 1295
102
That which takes place when a third person of his own initiative and without the knowledge or against the will of the original debtor assumes the latter’s obligation with the consent of the creditor, The original debtor may or may not give consent.
Expromission
103
Expromission - That which takes place when the creditor accepts a third to take place of the debtor at the instance of the latter. All of the parties must give consent. True/False
False - Delegacion
104
X decided to pay for his husband's debt and initiates the obligation. Expromission or Delegacion
Expromission
105
There should always be a consent from the debtor to allow a third person to get the obligation from him. Expromission or Delegacion
Delegacion
106
A relative or a friend can get the obligation from the debtor without his/her consent. Expromission or Delegacion
Expromission
107
X is now the new debtor instead of Y and she will pay 10,000 to Z (creditor). Then X decided that its not a donation so she decided to ask Y for payment in return.
How much can X demand from Y? It depends if there is a consent or not from the original debtor. - Is this scenario a sample of Expromission or Delegacion
Expromission
108
X is now the new debtor instead of Y and she will pay 10,000 to Z (creditor). Then X became insolvent. Can Z still go back to Y for the payment? Answer based on the rules of Expromission
Nope, because based on Expromission, with or without the original debtors consent, the insolvency of the new debtor will not give rise to the liability of the old debtor
109
X is now the new debtor instead of Y and she will pay 10,000 to Z (creditor). Then X became insolvent. Can Z still go back to Y for the payment? Yes, if the insolvency of X was already existing and of public knowledge.
Is this scenario a sample of Expromission or Delegacion
Delegacion
