Obligations - Finals Flashcards
Obligations are extinguished in?
- By payment or performance;
- By loss of the thing due;
- By the condonation or remission of the debt;
- By the confusion or merger of the rights of creditor and
debtor; - By compensation;
- By novation.
Other causes of extinguishment of obligations:
- annulment
- rescission
- fulfillment of resolutory condition 4. prescription
Other causes:
1. Death of a party for obligations requiring personal service
2. Mutual desistance or withdrawal
3. Arrival of resolutory period
4. Compromise
5. Impossibility of fulfillment
6. Happening of a fortuitous event
Payment or Performance
____ means not only the delivery of money but also the
______, in any other manner, of an obligation.
Payment
Used synonymously with performance
Payment does not only refer to the delivery of money, may also
include:
● Giving of a thing
● Doing of an act
● Not doing of act
DEBT - can mean any of the following obligation:
● Delivery of money
● Giving of a thing
● Doing of an act
● Not doing of ac
General rule: Payment or Performance
partial or irregular performance will not extinguish
an obligation
› Exception to Article 1233.
Rationale: creditor benefited
Requisites:
Substantial compliance - 50%
Obligor is in good faith - always presumed
oblige accepts the performance, knowing its
incompleteness or irregularity, and without expressing any protest
or objection, the obligation is?
deemed fully complied with.
prevents someone from
arguing about something previously agreed upon or by law
Founded on the principle of estoppel
- Requisites:
● Performance by the debtor is incomplete or irregular
● Creditor accepts without any protest or objection to the
incompleteness or irregularity
creditor is not bound to accept payment or performance by a
______ who has no interest in the fulfillment of the obligation,
unless?
third person, there is a stipulation to the contrary.
As a general rule, From whom can a creditor accept payment?
Debtor
Any person with interest in the fulfillment of the
obligation, i.e. guarantor
A 3rd person without interest in the obligation but there
was a stipulation that he can make the payment.
Effect of payment by a 3rd person:
- Without the knowledge or against the will of the debtor
- 3rd person can recover from the debtor only insofar as
the latter was benefitted
Effect of payment by a 3rd person:
- With knowledge of the debtor
3rd person shall have the right to be reimbursed and
subrogation (to recover the amount he has paid)
3rd person shall acquire all the rights of the creditor
mortgage, guaranty, penalt
Change of creditor, Payor can exercise the rights which the creditor had
subrogation
Payor merely acquires the bare right to be refunded
REIMBURSEMENT
Nobody should be compelled to accept the generosity of
another
debt of gratitude
not subject to any claim or
encumbrance or lien
free disposal of the thing due
not incapacitated to enter into contracts (minor, insane, etc.)
capacity to alienate
To whom should payment be made?
● Person in whose favor the obligation was made -
creditor/obligee
● His successor in interest - heir, assignee (pinagsalinan ng
karapatan)
● Any authorized person - authorized by the creditor or by law
(guardianship)
4 special forms of payment under the Civil Code:
● Dation in payment
● Application of payment
● Payment by cession
● Tender of payment of consignation
- conveyance of ownership of a thing as an accepted equivalent of performance
- It is a special form of payment because an existing monetary debt
is not paid in money but by alienation of property
DATION IN PAYMENT
Obligation to deliver a generic or indeterminate thing
principle of equity
