Obligation - Reviewer1

8/2/2019 Obligation - Reviewer1

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OBLIGATION

An obligation is the juridical necessity to give, to do or not to do. (Art 1156, CivilCode). It is a juridical necessity because, in case of non-compliance, the injured or aggrieved

party may go to the courts of justice to enforce obligation, or in case of default thereof, the

economic value that it represents. In a proper case, the debtor may be made liable for thepayment of damages cause to the creditor for the violatiuon of the latters right.

Requisites of an Obligation:

1. Passive subject, or the debtor, obligor from whom the obligation is juridicallydemandable.

2. Active Subject or the creditor, obligee, who can demand the fulfillment of the

obligation.3. Prestation, subject, or service which constitutes the object of the obligation.

4. Efficient cause or juridical tie, which binds the parties to the obligation and which

may arise either unilateral or bilateral.

SOURCES OF OBLIGATION (Art. 1157)1. Law (Art 1158)

2. Contracts (Art 1159)

3. Quasi-contracts (Art 1160)4. Acts of omissions punished by law (Art 1161)5. Quasi-delicts (Art 1162)

Art 1158 Obligations arising from law are not presumed. This means that obligations must

be clearly set forth (express) in the Civil Code or special laws.

According to Art 1158, obligation arises from law are not presumed. How can we determine

whether an obligation arises from law or other source?

It must be noted that in the generation (making, creation) of an obligation, there is

always a concurrence (harmony, agreement) between the law which establishes or recognizes

it and an act or condition upon which the obligation is based.

Art 1159 Obligations arising from contracts have the force of law between the parties and

should be complied with in good faith.

Art 1160 Obligations derived from quasi-contract are subject to the provisions of Chapter I,

Title XVII of this Book.

Quasi-contract

1. it is a juridical relation

2.which arises from certain lawful, voluntary, and unilateral acts,3. to the end that no one may be unjustly enriched or benefited at the expense of the other.

Kinds of Quasi Contract:1. Negotiorum gestio unauthorized management of others property. This takes place

when a person voluntary takes charge of the management of anothers abandoned

business or property without the latters consent. Reimbursement must be made to

the gestor for necessary and useful expenses.2. Solutio indebiti undue payment. This takes place when something is received when

there is no right to demand it, and it was unduly delivered thru mistake. The recipient

has the duty to return it.

ART 1161 OBLIGATIONS ARISING FROM DELICTS


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DELICTS (CRIME) Every person who is criminally liable is civilly liable. (Art100, RPC). This is not an absolute rule.

DISTINCTION BETWEEN CULPA CONTRACTUAL AND CULPA AQUILIANA

CULPA CONTRACTUAL CULPA AQUILIANA

There is a pre-existing contractual relation No pre-existing contractual relation

Negligence in the performance of theobligation

The negligence is substantive andindependent

Source of liability is the breach of contract Source is the defendants negligent act or

omission itself

Proof of contract and its breach is a prima

facie to warrant recovery

Negligence of defendant must be proved

Art 1162 Obligations arising from Quasi delict or tort or culpa aquiliana.

QUASI-DELICT is a fault or act of negligence (or omission of care) which causesdamages to another, there being no pre-existing contractual relations between the parties.

CULPA 0R NEGLIGENCE - is defined as the failure to observe, for the protection of

interests of another person, that degree of care, precaution, and vigilance which causes injuryto another

REQUISITES BEFORE A PERSON BE HELD LIABLE FOR QUASI-DELICT:1. there must be fault or negligence

2. there must be damage or injury

3. there must be a direct relation of cause and effect between the fault and the damageor injury.

CHAPTER 2

NATURE AND EFFECT OF OBLIGATIONS

Art 1163 DUTY TO EXERCISE DILIGENCE IN OBLIGATION TO GIVE

Every person obliged to give something is also obliged to take care of it with the

proper diligence of a good father of a family, unless the law or the stipulation of the parties

requires another standard of care.

Diligence required:

1. Diligence of a good father of a family2. Required by Law

3. stipulated by the parties

Art 1164


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The creditor has a right to the fruits of the thing from the time the obligation to

deliver it arises. However, he shall acquire no real right over it until the same has deliveredto him

In obligation to give, when does the creditor acquire the right to the thing and its fruits?We must distinguish between the time when the creditor acquires a personal right to

the thing and the fruits thereof and the time when he acquires a real right thereto.

According to Art 1164, a creditor acquires a right to the fruits of the thing from themoment the obligation to deliver it arises. However, he shall acquire no real right over it

until the same has been delivered to him. Therefore, from the moment the obligation to

deliver the thing arises, the creditor has merely a personal right (jus in personam)over itincluding its fruits - the right to demand delivery of the thing and its fruits from the debtor.

Once the thing including its fruits are delivered, he shall acquire real rights (jus in re) over it

- a right that is enforceable against the whole world.

As a consequence of certain contracts, it is not agreement but tradition or delivery that

transfer ownership.

KINDS OF DELIVERY:1. Actual delivery (tradition) physical transfer of ownership

2. Constructive delivery physical transfer is implieda. Traditio simbolica (symbolical tradition) - as when key is given

b. Traditio longa manu (delivery by mere pointing of the object)

c. Tradition brevi manu possessor of the thing becomes the possessor ownerd. Tradition constitutum possessorium - opposite of brevi manu, thus the

possessor owner of a thing retains possession but not ownership

e. Tradition by execution of public documents

When does the obligation to deliver arises?

1. When the obligation is no term or condition, From the time the obligation to deliver itarises

2. If there is a term or a condition, then from the moment the term arrives of the

condition happens.

Art 1165 -

In obligations to give, what are the different rights available to the creditor?

To give a determinate thing:

1. To compel specific performance. (Art 1165)

2. To ask damages in case of breach of the obligation (Art 1170)

To give indeterminate thing:1. to ask performance ( Art 1246)

2. to ask that the obligation be complied with at the expense of the debtor ( Art 1165 par

2)3. to recover damages in case of breach ( Art 1170)

OBLIGATIONS OF THE DEBTOR:


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Determinate thing

1. To deliver the thing2. To take care of it with the proper diligence ( aRt 1163)

3. to deliver all accessions and accessories (Art 1166)

4. To pay damages in case of breach (Art 1170)

Indeterminate thing:

1. to deliver a thing which must be neither of superior or inferior in quality ( Art 1246)

2. To pay damages in case of breach of the obligation ( Art 1170)

EFFECT OF FORTUITOUS EVEN

1. If the object is determinate, the obligation extinguished. If the object is indeterminateit is not.

EXCEPTIONS:1.when the debtor is in default

2. when he is in bad faith ( promise dto deliver the same thing to two or more persons who

do not have the same interest.

Art 1166 The obligation to give a determinate thing includes that of delivering all itsaccessions and accessories, even though they may not have been mentioned.

Accessories those joined to the principal for the latters better useAccessions additions or improvements

Art 1167 If a person obliged to do something fails to do it, the same shall be executed at his

cost.

This same rule shall be observed if he does it in contravention of the tenor of the

obligation. Furthermore, it may be decreed that what has been poorly done be undone.

POSITIVE PERSONAL OBLIGATION:

Remedies of the creditor in case of non-compliance1. ask specific compliance from the dbtor or ask another person to do the same at the

formers expense

2. Ask for damages

Art 1168 Negative personal Obligaiton

When the obligation consists in not doing, and the obligor does what has beenforbidden, it shall also be undone at his expense.

Art 1169 NO DEMAND, NO DELAY

Those obliged to deliver of to do something incur in delay from the time the oblige

judicially or extra judicially demands from them the fulfillment of their obligation.However, the demand by the creditor shall not be necessary in order that delay may

exist:

1. When the obligation or the law so provides

2. When time is the controlling motive for the establishment of the obligation3. When the demand would be useless, as when the oblior has renderednit beyond his

power to perform.


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4. In reciprocal obligations, neither party incurs delay if the aother doest not comply or

not ready to comply in a proper manner with what is incumbent upon him, From themoment one of the parties fulfills his obligation, delay by the other begins.

Art 1170 Sources of damages

Those who in performance of their obligation are guilty of fraud, negligence, or delaythose who in any manner contravene the tenor thereof, are liable for damages.

Art 1171 Liability for fraud or dolo

Responsibility arising from fraud is demandable in all obligations. Any waiver for

future fraud is void.

Art 1172 Responsibility arising from negligence in the performance of every kind of

obligation is also demandable, but such liability may be regulated by the courts, according tothe circumstances.

FRAUD DISTINGUISHED FROM NEGLIGENCE:

DOLO OR FRAUD CULPA OR NEGLIGENCE

THERE IS DELIBERATE INTENT NO MALICE, ALTHOUGH VOLUNTARY

CANNOT BE MITIGATED MAY BE MITAIGATED

WAIVER FOR FUTURE FRAUD IS VOID WAIVER FOR FUTURE CULPA MAY BE

ALLOWED

KINDS OF CULPA1. Culpa Contractual contractual negligence

2. culpa aquiliana ( civil negligence or tort or quasi delict

3. culpa criminal ( delict) criminal negligence

Culpa contractual Culpa aquiliana Culpa criminal

Negligence is incidental to

the performance of the

obligation

Negligence is direct,

substantive and independent

Negligence is direct,

substantive and independent

of the contract

There is pre-existing contract No pre-existing contract No pre-existing obligation

Proof needed

preponderance of evidence

Proof needed

preponderance of evidence

Proof needed guilt beyond

reasonable doubt

The debtor has the duty to

prove that there is no

negligence

Victim has to prove

negligence of the defendat

Accused is presumed to be

innocent until the contrary is

roved, prosecution has theburden of proving the

negligence of the accused.

Art 1173 - Degrees of Culpa under Roman Law:

1. culpa lata grave negliogence2. culpa levis ordinary negligence

3. culpa levissina slight negligence


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Art 1174 fortuitous event - the thing perishes with its owner ( res perit domino)

General Rule - no liability for a fortuitous event

Exceptions:1. provided by law

2. stipulated by the parties

3. when the nature of the obligation requires the assumption of risk

Art 1175 - usurious transaction shall be governed by special laws:

Art 1176 - The receipt of the principal without reservation of the interest shall give rise to a

presumption that said interest has been paid.

The receipt of later installment without reservation as to prior installment shall

likewise raise the presumption that such installment have been paid.

Art 1177 The creditors, after having pursued the property in possession of the debtor tosatisfy their claims, may exercise all the rights and bring all the actions of the latter for the

same purpose, save those whicha re inherent in his person; they may also impugn the acts

which the debtor may have done to defraud them.

Rights of the Creditor:

1. exact payment

2. exhaust debtors properties, generally by attachment (except properties exempt bylaw)

3. accion subrogatoria (subrogatory action) exercise all rights and actions except those

inherent in person4. Accion pauliana ( impugn or rescind acts or contracts done by the debtor to dfraud

the creditors.

Art 1178 - transmissibility of rights

1. General rule rights are transmissible

2. Exceptions:a. If the law provides

b. Contract provides

c. If the obligation is purely personal


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KINDS OF OBLIGATIONS

A. According to the Primary (main or basic) Classification in Civil Code

(PCPASIDFPJ)

1. Pure

2. Conditional

3. Period

4. Alternative

5. Facultative6. Joint

7. Solidary

8. Divisible

9. Indivisible

10. Penal Clause

B. Secondary Classification by the Civil Code:

1. Unilateral vs. bilateral

2. Real Personal

3. Determinate generic

4. Positive negative

5. Legal vs conventional vs penal6. Civil vs natural

Art 1179 - Pure obligations without condition or term. Demandable at once.

CONDITION uncertain events which wields (exercises) on a legal

relationship. Characterize by uncertainty and futurity.

TERM or PERIOD - that which necessarily must come (certainty) whether

the parties know when it will happen or not.

When an obligation is demandable at once?

- when it is pure- When it is subject to a resolutory condition or period

PAST EVENTS UNKNOWN TO THE PARTIES it does not exactly a condition. This

means, future knowledge of a past event will determine whether or not an obligation willarise.

CLASSIFICATION OF CONDITIONS

1. Suspensive the happening of the condition will give rise to the obligation

2. Resolutory the happening of the condition extinguishes the condition

3. potestative depends upon the will of either one of the parties

4. casual depends on chance or hazard of the will of the 3rd

person5. Divisible capable of partial performance

6. Indivisible not capable of partial performance because of the nature the thing or the

intention of the parties7. positive an act is to be performed

8. negative -

9. express10. implied

11. possible

12. impossible13. conjunctive or compound if all conditions must be performed


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14. alternative if only a few of the conditions have to be performed

Art 1180 When my means permit me to do so - with a period subject to the discretion

of the court of the period.

Art 1181 Conditional Oligations There is a condition

a. Suspensive Condition (conditions precedent or antecedent) fulfillment will

give rise to obligation (rights will only be acquired upon the happening of the

condition)b. Resolutory condition (conditions subsequent) fulfillment will extinguish

obligation. Demandable at once. (rights already acquired are lost once the

condition is fulfilled)

CONDITIONAL PERFECTION OF THE CONTRACT If the perfection of a contract

depends on a condition, non-fulfillment thereof means the non-perfection of the contract.

Art 1182 - Potestative, casual, mixed conditions

1. Potestative suspensive on the part of the debtor VOID (I will give u P1.0M nextmonth if I go to Boracay)

2. Potestative resolutory on the part of the debtor3. Potestative on the part of the creditor VALID

Art 1183 Effects of Impossible, unlawful conditions

1. To do an impossible or illegal thing- condition and obligation are VOID

2. Not to do an impossible or illegal thing Valid disregard the condition but obligationsubsist

Art 1184 Positive conditions

The following extinguishes the obligation with a positive (to do an act) condition

1. Upon expiration of the time provided

2. when it become indubitable (evident) that the event will not take place

Art 1185 - Negative Conditions

The following will give rise to an obligation with a negative (not to do) condition

1. From the moment the indicated time has elapsed2. when it become evident that the event cannot occur.

Art 1186 Rule when debtor voluntary prevents fulfillment (constructive or presumed)The condition deemed fulfilled because one must not profit by his own fault

REQUISITES:

1. voluntarily made either maliciously or not, as long as the intent to prevent is

present. If done voluntarily for another purpose, this requisite is not present2. Actually prevents the happening of the condition

Art 1187 Effects of Fulfillment of Suspensive ConditionUpon the happening of the suspensive condition the obligation becomes effective.

1. Retroactively but not with reference with fruits and interest and period of prescription

2. Therefore any the creditor can alienate thing from the day the agreement instituted bythe parties. On the other hand, the debtor cannot alienate the thing, if he do so, it is

invalid

FRUITS AND INTEREST

1. In unilateral obligation, debtor gets the fruits and interest unless stipulated


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2. In reciprocal Obligation fruits and interest during the pendency of the condition

shall be deemed to compensate each other, even though they really be unequal

NATURAL FRUITS Spontaneous products of the soil; and the young and other products

of animals

CIVIL FRUITS are the rents of buildings, the price of leases of land and other property

and the amount of perpetual or life annuities or other similar income.

INDUSTRIAL FRUITS are those produced by lands of any kind through cultivation or

labor.

Art 1188 Actions to preserve creditors right to recover what was paid by mistake

Reason for the above article if creditor is not allowed to take appropriate actions, there

is a danger that he will receive nothing, as when the objed\ct is deliberately destroyed,hidden or alienated

Other appropriate actions:

1. ask for security if the debtor is about to be insolvent2. ask the court to prevent alienation or concealment

Art 1189 Rules on Loss, Deterioration, and Improvement During the Pendency of

ConditionThis article applies only if: a. the suspensive condition is fulfilled and b.) object is

specific

3 Scenarios of the Object:

1. may be lost

2. may be deteriorate3. may be improved

LOST1. without the fault of the debtor. (obligation is extinguish under Art 1174 and Art

1189)

2. with fault of the debtor (debtor is liable for damages under Art 1170 and Art 1189)

3. Partly with and partly without fault of the debtor

DEFINITION OF LOSS: PGDeuDcr

1. When it perishes2. when it goes out of commerce (object becomes prohibited)

3. when it disappears in such a way that its existence is unknown

4. When it disappears in such a way that it cannot be recovered

DETERIORATE (the original value was depreciated)

1. without fault of the debtor impairment is to be borne by the creditor2. with fault of the debtor creditor has to option

a. Rescission plus damages

b. Fulfillment plus damages

3 Partly with or partly without fault of the debtor


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IMPROVEMENT the debtor may remove the improvements without damage the principal,

or may set off improvements against any damage.1. by nature or by time - shall inure to the benefit of the creditor

2. through the expense of the debtor debtor shall have no other right but of that of

usufruct.

USUFRUCT gives the right to enjoy the property of another with the obligation of

preserving its form and substance, unless the title constituting it or the law otherwise

provides.The right of enjoyment to use of the things and the fruits of the thing

Art 1190 Effects when resolutory Condition is Fulfilled1. Obligation is extinguished. (as if there was never an obligation at all)

2. Parties should restore to each other what they have received.

3. Plus fruits or interest less expenses for production, gathering and preservation.4. In case of loss, deterioration and improvement art 1189 shall apply.

5. the courts are given the power to determine the retroactivity of the fulfillment of the

resolutory condition.

Art 1191- Right to Rescind or Cancel in Reciprocal ObligationsThe right to rescind or cancel an obligation is applicable only to a reciprocal obligation,

in case the non-fulfillment on the part of one.

Remedies of the injured party: (alternative and not conjunctive)

1. fulfillment plus damages2. rescission plus damages

3. Injured party who has elected performance or fulfillment, may if fulfillment is

impossible still ask for rescission and vice versa.4. If an action is brought for specific performance, the damages sought must be asked in

the same action; otherwise, damages are deemed waived.

Characteristics of the Right to rescind under this article:

1. exist only in reciprocal obligation

2. can only be demanded if one of the parties incur delay.

3. Right to rescind is not ABSOLUTE: Because:3.a Trivial causes or slight breaches will not cause rescission

3.b If there be just cause for fixing the period within which the debtor can comply

3.c If the object of the obligation is now in the hands of an innocent third party whohas lawful possession of the same (Possession under Art.523 means the holding of a thing or

enjoyment of the right)

4. Right to Rescind:1. Judicially if there has been delivery of the object

2. Extra-judicially no delivery yet

5. Implied or presumed to exist need not be expressly stipulated upon.

6. May be waived expressly, or impliedly

Art 1192 Rule if both parties committed a breach1. Liability of the first infractor shall be equitably tempered by the courts


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2. If cannot be determined, the same shall be deemed extinguished.

3. Each shall bear his own damages.

OBLIGATIONS WITH A PERIOD

Art 1193 Obligation with a period Requisites:

PERIOD is a certain length of time which determines the effectivity or the

extinguishments of obligations.

MANRESAS DEFINITION A term or a period consists in a space of time which has

influence on obligations as a result of a judicial act, and either suspends theirdemandableness or produces their estinguishment.

OBLIGATION WITH A PERIOD those consequences are subjected in one way oranother to the expiration of the said term.

DISTINCTION OF PERIOD AND CONDITION1. As to fulfillment - A condition is an uncertain event, but a period is a certain event

2. with reference to time A period always refer to the future; a condition under the lawmay refer even to the past.

3. As to influence on the obligation - A condition causes an obligation to arise or to cease,but a period merely fixes the time or the efficaciousness of an obligation.

REQUISITES OF A PERIODa.) it must refer to the future

b.) it must be certain

c.) it must be possible

Kinds of Period

a.) Suspensive (ex die) obligation is demandable at the arrival of period

b.) Resolutory (in diem) obligation is extinguished at the arrival of periodc.) Definite exact date is known and given

d.) Indefinite something that will surely happen, but the date of happening is

unknown (ex. Death)

e.) Legal period granted under the provisions of the law

f.) Conventional or voluntary stipulated

g.) Judicial fixed by court

PERIOD OF PRESCRIPTION commences from the time the term in the obligation arrives.

MOARATORIUM LAWS Purpose is to obtain postponement of the period within which to

pay off obligations. A suspension of payment and an act of grace.

Art 1194 rules in case of Loss, deterioration or Improvement - governed by Art 1189

Art 1195 Payment or delivery made before the Arrival of the period

1. Obligor may be recovered what he has paid, plus fruits and interests

When? Before the maturity of the obligation. With regard to the interest, even after maturity.

Prescription is 5 years after premature payment.


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Art 1196 Benefit of the period is for both debtor and creditor

1.. General rule for the benefit of debtor and creditor (means the debtor cannot pay

prematurely or the creditor cannot demand payment prematurely)

Exceptions: from the tenor of the same or other circumstances it appears that the period hasbeen established in favor of one or the other.

BENEFIT OF THE DEBTOR meaning, he is required to pay only at the end of the term,

but he may pay even before.- D will pay C Within 6 years

BENEFIT OF THE CREDITOR

Art 1197 When the court may fix a Period

- When the duration depends upon the will of the debtor- When there is no period, but it can be inferred that a period was intended

WHEN THE COURT MAY NOT FIX THE PERIOD?

1. No term was specified because no term was intented2. obligation is payable on demand

3.

Art 1198 When the debtor losses the benefit of the period. (SAFIG)

a.) when the debtor becomes insolventb.) when debtor tries to abscond (run away or escape)

c.) when he fails to perform undertakings

d.) when he fails to give securities/collateral/guarantiese.) when collateral/guaranties given have been impaired or disappeared

Section 3

ALTERNATIVE OBLIGATIONS


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Art 1199 A person alternatively bound by different prestations ahll completely perform one

of themThe creditor cannot be compelled to accept part of one and part of the other.

Alternative obligations- one which has several prestations, but compliance of one shallextinguish the obligation

Art 1200 Right of choice general rule debtor unless stipulatedLimitations:

1. impossible2. unlawful

3. not the object of the obligation

Right of choice:

Generally, the debtor has the right of choice

Summarize the rules, obligations,& rights if the debtor binds himself alternatively to

deliver 3 objects:

IF CHOICE BELONGS TO DEBTOR:

-Loss is due to fortuitous Event--If all are loss, OBLIGATION IS EXTINGUISHED-If two or more objects remain, the debtor can deliver any two of the remaining

-If one remain converted to pure obligation

-Loss due to obligors fault-all lost debtor will pay the value of last thing lost

-2 remain debtor can choose between them but with no damages

-one remain, converted to pure obligation but no damages.

IF CHOICE BELONGS TO CREDITOR

-Loss due to fortuitous event-

- effects are the same with that if choice belongs to creditor

-Loss due debtors fault-- if all loss, the obligation converted to monetary obligation. The debtor will

pay the value of any of the objects loss plus damages choose by creditor

- If two remain, the creditor may choose any of the remaining object plusdamages, or he can choose the object lost, debtor is liable for the value plus

damages

- if one remains, the obligation is simple, the creditor may choose the remainingobject plus damages. If he chooses anyone of the two lost, the debtor must pay

the value plus damages.

Loss of objects of Alternative ObligationsFortuitous event Extinguished

Fault of the debtor obliged to pay the amt. Of last object lost.

Art 1201 The choice shall produce no effect except from the time it has been

communicated.

Art 1202 The debtor shall lose the right of choice when among the prestatons whereby he

is bound only one is practicable.


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Art 1203 - If through the creditors acts the debtor cannot make a choice according to theterms of the obligation, the latter may rescind the contract with damages.

Art 1204 RULE IN CASE OF LOSSThe creditor shall have a right to indemnity for damages when, through the fault of the

debtor, all the things whicha re alternatively the object of the obligation have been lost, or the

compliance of the obligation has become impossible.

The indemnity shall be fixed taking as a basis the value of the last thing whichdisappeared

Damages may also awarded

Art 1205 Rules when choice is given to the creditor

IF CHOICE BELONGS TO CREDITOR

-Loss due to fortuitous event-

- effects are the same with that if choice belongs to creditor

-Loss due debtors fault-

- if all loss, the obligation converted to monetary obligation. The debtor will

pay the value of any of the objects loss plus damages choose by creditor- If two remain, the creditor may choose any of the remaining object plus

damages, or he can choose the object lost, debtor is liable for the value plusdamages

- if one remains, the obligation is simple, the creditor may choose the remainingobject plus damages. If he chooses anyone of the two lost, the debtor must pay

the value plus damages.

Facultative Obligation only one prestation has been agreed upon, but the debtor may renderanother in substitution.

Art 1206 - Facultative Rule in case of loss

EFFECT OF LOSS: FORTUITOUS EVENTS

B4 SUBSTTN AFTER SUBS

Principal extinguished Not extinguish

Substituted not extinguished extinguished

EFFECT OF LOSS: DEBTORS FAULT

B4 SUBSTTN AFTER SUBS

Principal liable for damages No liability

Substituted no liability not extinguish

Section 4JOINT AND SOLIDARY

Art 1207 - 1230

CHAPTER 4

Extinguishment of Obligation

Art 1231 Obligations are extinguished:


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1. By payment or performance

2. By the loss of the thing due3. By condonation or remission of the debt

4. By the confusion or merger of the rights of creditor and debtor

5. By compensation6. By Novation

Other causes of extinguishment of obligations:

1. annulment2. rescission

3. fulfillment of resolutory condition

4. prescription

Still other causes:

1. Death in case of personal obligation2. arrival of resolutory term

3. change of civil status

4. compromises5. mutual desistance

6. impossibility of fulfillment7. fortuitous event

Art 1232 Payment means not only the delivery of money but also the performance, in any

other name, of an obligation.

Payment defined: mode of extinguishing obligations which consists of

1. delivery of money2. performance as required by the obligation

Requisites of payment:

1. there must be pre-existing obligation2. acceptance by the creditor which is either impliedly or explicitly

RULE IN PAYMENT MADE UNDER VOID JUDGMENT:- Payment is null and void.

SPECIAL MODES OF PAYMENT

a.)Cession in payment selling of debtors property for the benefits of his creditors

Requisites of Cession in payment:

-more than one debt-more than one creditor-complete or partial insolvency of debtor

-abandonment of all properties not exempt from execution.

b.)tender of payment & consignation creditor refused to accept payment by thedebtors without just cause, latter shall released from responsibility by consignation.

Tender of Payment- it is the act of debtor offering to the creditor the things due or

amount due. The debtor must show that he has in his possession the thing or money to bedelivered at the time of the offer.


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Consignation the act of depositing the things or amount due with the proper court,

when the creditor does not desire or cannot receive it, after complying with the formalitiesrequired by law.

CONSIGNATION ALONE shall provide the same effect in the ff cases:

-when the creditor is absent or unknown, or does not appear at the place of payment

-creditor is incapacitated to receive the payment at the time it is due.

-when without just cause, he refuses to give a receipt

-when two or more person claim the right to collect

-when the title of the obligation has been lost.c.) Dation in payment debtor give property in lieu of his monetary debt.

d.) Application of payment debtor has several debts of the same kind to one

creditor.

Requisites:

- two or more debts

- of the same kind- all debts must be due

- tendered payment is not sufficient to extinguish all obligations.

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Obligation - Reviewer1