Extinguishment of Obligations

Payment Requisites of a Valid Payment

1. Capacity of the person paying;

2. Capacity of the person receiving the payment;
3. Delivery of the full amount or the full
performance
of the prestation;
4. Propriety of time, place and manner of
payment;
5. Acceptance of the payment by the creditor.
Dation en Pago Concept:
Property is alienated to the creditor in
satisfaction of a debt in money. At the time of the
constitution of the obligation what is due is
money, but at the time of the fulfillment, the
debtor could no longer deliver the money.
Tender of Payment Requisites of a Valid Tender of Payment:

a. Must be in legal tender (lawful currency)

not a check but if there is consent valid;
b. It must include whatever interest is due;
c. It must be unconditional; but if made with
conditions and not protest on the creditors part,
he cannot later on prescribe the terms for the
validity
of the acceptance which he had already made
complete payment;
d. The obligation must be due.
Consignation Requisites of Consignation:

a. Existence of a valid debt;

Application of Payments
b. Valid prior tender of payment, unless tender is
excused;
c. Prior notice of consignation (before deposit);
d. Actual consignation (deposit);
e. Subsequent notice of consignation;
f. Hearing;
g. Judgment.
Requisites for Application of Payment:

1. There must be two or more debts (severalty of

debts);
2. Debts must be of the same kind;

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 3. Debts are owed by the same debtor in favor of
the
same creditor;
4. All debts must be due unless the contrary is
provided
eg. Stipulated by the parties;
5. Payment is not enough to extinguish all debts.
Loss When is a thing considered lost:

a. When it perishes;
b. When it goes out of commerce;
c. When it disappears in such a way that:
Its existence is unknown; or
It cannot be recovered

Condonation Essential Requisites for Remission

1. There must be an agreement;

2. Parties must be capacitated and must consent;
3. There must be subject matter
(object/prestation);
4. The cause or consideration must be liberality
essentially gratuitous;
5. Obligation remitted must be demandable at
the time
of the remission;
6. The remission must not be inofficious not
excessive;
7. Formalities of a donation are required in case
of an
express remission;
8. Waiver/remissions are not to be presumed
generally
it must be expressed or implied;
9. The debtor must accept the remission
Confusion Requisites:

1. It should take place between principal debtor

and
creditor.
No confusion if Debtor and Creditor represent
different judicial entities even if both are the
same.
2. Merger must be clear and definite
3. The very obligation involved must be the same
or
identical

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 4. The confusion must be total or as regards the
entire
obligation (exception Art. 1277)
Compensation Art. 1279. In order that compensation may be
proper, it is
necessary:
(1) That each one of the obligors be bound
principally, and
that he be at the same time a principal creditor of
the other;
(2) That both debts consist in a sum of money, or
if the
things due are consumable, they be of the same
kind, and
also of the same quality if the latter has been
stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any
retention or
controversy, commenced by third perso
Novation Requisites of Novation

a. The existence of a valid old obligation

If valid nothing to novate
If voidable possible novation before
annulment
b. Intent to extinguish or to modify the old
obligation
by substantial difference
c. The capacity and consent of all the parties
except in
case of expromision old debtor does not
participate
d. Validity of new obligation
Expromission Requisites:

1. Initiative from third person

2. New debtor and creditor must consent
3. Old debtor
Delegacion Requisites:
1. Initiative from old debtor
2. All parties concerned must consent
Subrogation Art. 1302. It is presumed that there is legal
subrogation:
(1) When a creditor pays another creditor who is
preferred,

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 even without the debtor's knowledge;

(2) When a third person, not interested in the

obligation,
pays with the express or tacit approval of the
debtor;

(3) When, even without the knowledge of the

debtor, a person interested in the fulfillment of
the obligation pays, without prejudice to the
effects of confusion as to the latter's share.
Assignment/cesion Requisites for Voluntary Assignment:

1. More than one debt

2. More than one creditor
3. Complete or partial insolvency of the debtor
4. Abandonment of all debtors property not
exempt
from execution to the creditors
5. Acceptance or consent on creditors part

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