Chapter 4 Flashcards
Extinguishment of Contract (17 cards)
Preparatory Contracts
It is needed for the formation of a subsequent contract. (Ex: agency, partnership)
Aleatory Contracts
It depends on an uncertain event or contingency both as to benefit or loss.
Commutative Contracts
When the undertaking or the promise to give, to do, or not to do is equal to the value of the other. (Ex: Sale)
Formal or solemn
Consent, object, cause (COC) + formalities by law
Recovery in substantial performance
what he delivered less damages.
What is to be paid?
a.) Specific thing
b.) Generic thing
a.) Only the specific thing.
b.) As stipulated, neither inferior/superior.
What happens when a not interested person fulfilled the obligation?
a.) The creditor may refused.
b.) The person may be subrogated to the rights of creditor if debtor permit
* if not, the debtor may only reimburse (no subrogation)
Subrogation - the 3rd person will become the new creditor (the rights will go to him)
When payment to creditor is not valid?
When the creditor in a pending litigation
Can a partial performance be accepted?
The creditor may not be compelled to accept it (must be complete) unless it is stipulated
Effect of substantial performance of debt in good faith
Debtor may recover less damages.
Where to pay the obligation, generally?
Stipulation of parties
Where to pay the obligation, if no stipulation?
Obligation to give specific thing - whenever the thing was when the obligation was constituted.
Other obligation - domicile of debtor
Who pays the extrajudicial expenses when paying the obligation?
The debtor since it is for the benefit of him that it is extinguished.
Who pay for judicial cost?
The losing party unless the court decide to.
Legal tender
currency at which the creditor must accept the payment of debt.
Consignation
Act of depositing the amount due to a proper court because of refusal by the creditor.
