OBLIGATIONS AND CONTRACTS

EXTINGUISHMENT OF OBLIGATIONS
PART II

A.
LOSS OF THE THING DUE

B.
CONDONATION OR REMISSION OF THE DEBT

C.
CONFUSION OR MERGER OF RIGHTS

D.
COMPENSATION

E.
NOVATION

ARTICLE 1262 TO ARTICLE 1304 OF THE

NEW CIVIL CODE OF THE PHILIPPINES

BY:

ATTY. REX CRIS N. ANGELES, CPA

 LOSS OF THE THING DUE

General rule; exceptions; definition

of fortuitous event; elements
thereof

In case of loss of the thing due, the general rule is that such loss
extinguishes an obligation provided that the same is without fault of the
debtor1. In other words, for an obligation to be extinguished, the cause of
the loss must be a fortuitous event. Resultantly, the debtor is exempted from
any liability and the creditor suffers the loss.

Fortuitous event, otherwise known as force majeure, has been defined,

in the context of extinguishing an obligation, as an event, independent of the
will of the debtor, which is unforeseen, or although foreseen is inevitable,
and which bars the normal fulfillment of the obligation by the debtor as
originally contemplated by the parties. An event which merely makes it
difficult for the debtor to perform the obligation is not considered a
fortuitous event.

The following are the elements of a fortuitous event:

1. The cause of the unforeseen and unexpected occurrence or of the

failure of the debtor to comply with obligations must be
independent of human will;

2. It must be impossible to foresee the event or, if it can be foreseen, it

must be impossible to avoid;

3. The occurrence must be such as to render it impossible for the

debtor to fulfill obligations in a normal manner; and

4. The obligor must be free from any participation in the aggravation

of the injury or loss.

However, it must be noted early on that not all losses of things by

reason of a fortuitous event extinguish an obligation. There are eight (8)

1 Article 1262, 1st par. An obligation which consists in the delivery of a determinate thing shall be
extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in
delay.

Page 2 of 16
exceptions collectively provided by the law and jurisprudence (Supreme
Court decisions), as follows:

1. If the law so provides2;

2. If the parties so stipulate3;

3. If the nature of the obligation requires the assumption of risk4

(e.g. property insurance policies);

4. If the debtor is in default (legal delay) prior to the loss of the

thing due5;

5. If the debtor has promised to deliver the same thing to two (2) or
more persons who do not have the same interests6;

6. If the thing due is a generic thing or indeterminate object7;

It is because the thing lost is capable of substitution.

7. If the thing lost is for an obligation arising from a criminal

offense8;

8. If the debtor is guilty of contributory negligence, although the

proximate cause of the loss is a fortuitous event;

In the case of Sicam vs. Jorge9, the Supreme Court ruled as

follows:

2 Article 1262, 2nd par. When by law or stipulation, the obligor is liable even for fortuitous events, the loss
of the thing does not extinguish the obligation, and he shall be responsible for damages. The same rule
applies when the nature of the obligation requires the assumption of risk.
3 Footnote no. 2, Ibid.

4 Footnote no. 2, Ibid.

5 Article 1165, 3rd par. If the obligor delays, or has promised to deliver the same thing to two or more persons

who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the
delivery.
6 Footnote no. 5, Ibid.

7 Article 1263. In an obligation to deliver a generic thing, the loss or destruction of anything of the same

kind does not extinguish the obligation.

8 Article 1268. When the debt of a thing certain and determinate proceeds from a criminal offense, the debtor

shall not be exempted from the payment of its price, whatever may be the cause for the loss, unless the
thing having been offered by him to the person who should receive it, the latter refused without justification
to accept it.
9 G.R. No. 159617, 08 August 2007.

Page 3 of 16
 “It has been held that an act of God cannot be invoked to protect
a person who has failed to take steps to forestall the possible
adverse consequences of such a loss. One's negligence may have
concurred with an act of God in producing damage and injury
to another; nonetheless, showing that the immediate or
proximate cause of the damage or injury was a fortuitous event
would not exempt one from liability. When the effect is found
to be partly the result of a person's participation — whether by
active intervention, neglect or failure to act — the whole
occurrence is humanized and removed from the rules
applicable to acts of God.”

(Emphasis and underscoring supplied.)

Other important principles under

loss of the thing due

A thing is considered lost when it perishes, goes out of commerce, or

disappears in such a way that its existence is unknown or cannot be
recovered.10 Normally, when we speak of loss and extinguishment of
obligations it is presumed that the whole object was lost, but there can
likewise be an extinguishment of the entire obligation in case of partial loss
provided that the part that was lost was so important and substantial in
fulfilling the entire obligation.11

Whenever the thing is lost in the possession of the debtor, it shall be

presumed that the loss was due to his fault, unless there is proof to the
contrary. This presumption does not apply in case of earthquake, flood,
storm, or other natural calamity.12

Generally, loss of the thing due only applies to prestations “to give”
because it is only in this kind of prestation that we speak of a “thing” or
“object”. However, by analogy, the law made it likewise applicable to
prestations “to do” by stating that the debtor in obligations to do shall also
be released when the prestation becomes legally or physically impossible
without the fault of the obligor.13 Moreover, the law adds that when the
service has become so difficult as to be manifestly beyond the contemplation

10 Article 1189 (2) xxx; it is understood that the thing is 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;
11 Article 1264. The courts shall determine whether, under the circumstances, the partial loss of the object

of the obligation is so important as to extinguish the obligation.

12 Article 1265.

13 Article 1266.

Page 4 of 16
of the parties, the obligor may also be released therefrom, in whole or in
part.14

In the event that the fortuitous event was caused by a third person (not
a party to the obligation) and the same does not fall under any of the
exceptions mentioned above, the creditor shall have the right of recourse
against the third person for the damage or injury he suffered by reason of
the extinguishment of obligation.15

CONDONATION OR REMISSION OF THE DEBT

This mode of extinguishing an obligation simply means waiver or

forgiveness of debt. It can be made expressly or impliedly. Moreover, it can
either be total or partial. This is the only extinguishment of obligation
considered to be gratuitous16 – free of charge – by reason of the liberality and
goodwill of the creditor.

Express and implied condonation

Express condonation is the deliberate act of the creditor of making

known to the debtor that his obligation toward the former is extinguished,
either totally or partially. On the other hand, implied condonation is a
voluntary act of the creditor which indirectly leads to a reasonable
conclusion that the obligation of the debtor toward him is extinguished.

An example of implied condonation is the delivery of a private

document evidencing a credit, made voluntarily by the creditor to the
debtor, which implies the renunciation of the action which the former had
against the latter.17 Another example is when the thing pledged, after its
delivery to the creditor, is found in the possession of the debtor, or of a third
person who owns the thing.18

14 Article 1267.
15 Article 1269. The obligation having been extinguished by the loss of the thing, the creditor shall have all
the rights of action which the debtor may have against third persons by reason of the loss.
16 Article 1270, 1st par. Condonation or remission is essentially gratuitous, and requires the acceptance by

the obligor. It may be made expressly or impliedly.

17 Article 1271, 1st par.; and

Article 1272. Whenever the private document in which the debt appears is found in the possession of the
debtor, it shall be presumed that the creditor delivered it voluntarily, unless the contrary is proved.
18 Article 1274. It is presumed that the accessory obligation of pledge has been remitted when the thing

pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who
owns the thing.

Page 5 of 16
 In addition, condonation of a principal obligation carries with it the
extinguishment of the accessory obligation because of the principle in law
that the accessory follows the principal. However, condonation of the
accessory obligation does not extinguish the principal obligation.19

Condonation vis-à-vis donation;

when must it comply with the
forms of donation

The law considers condonation akin to a donation. Hence, express and

implied condonations are governed by the Law on Donations. The
following are its legal implications:

1. The creditor is the donor while the debtor is the donee;

2. For express or implied condonation to be valid, the debtor-donee

must accept the condonation;

3. Express or implied condonation can be totally or partially

nullified if such condonation is considered to be an inofficious
donation on the part of the creditor-donor;

Inofficious donations are donations made by the creditor-donor

which deteriorates or depreciates the legitime (fixed and
compulsory share of the heirs in the estate of the creditor-donor,
in case of his death) of his legal heirs. In other words, a person
can donate to another provided that the legitime will not be
affected.20

4. Express condonation shall comply with the forms of donation.

a. The object of the condonation is a personal property:

i. If the value of the personal property is Five Thousand

Pesos (Php5,000.00) or below – the condonation of the

19 Article 1273. The renunciation of the principal debt shall extinguish the accessory obligations; but the
waiver of the latter shall leave the former in force.
20 Article 1271, par. 2. If in order to nullify this waiver it should be claimed to be inofficious, the debtor and

his heirs may uphold it by proving that the delivery of the document was made in virtue of payment of the
debt.

Page 6 of 16
 creditor-donor and the acceptance of the debtor-donee
can be made orally21;

ii. If the value of the personal property exceeds Five

Thousand Pesos (Php5,000.00) – the condonation of the
creditor-donor and the acceptance of the debtor-donee
must be in writing, even in a private instrument22;

b. The object of the condonation is a real property, regardless

of its value, the condonation of the creditor-donor and the
acceptance of the debtor-donee must be in a public
instrument, whether in the same or separate public
instrument.23

CONFUSION OR MERGER OF RIGHTS

This mode of extinguishing an obligation occurs when the characters

of the creditor and debtor of one and the same obligation are merged in the
same person.24 Reading the law alone makes this mode a bit difficult to
understand. Hence, the example below best illustrates it:

“A owes B. As evidence of his debt, A executed a promissory

note in favor of B. Thereafter, B used the promissory note of A as
payment to C for the services he rendered towards B. C, on the other
hand, purchased A’s cellphone and used as payment the promissory
note that A issued. Since the promissory note executed by A returned

21 Article 748. The donation of a movable may be made orally or in writing.

An oral donation requires the simultaneous delivery of the thing or of the document representing the right
donated.

If the value of the personal property donated exceeds five thousand pesos, the donation and the acceptance
shall be made in writing. Otherwise, the donation shall be void.
22 Footnote no. 18, Ibid.

23 Article 749. In order that the donation of an immovable may be valid, it must be made in a public

document, specifying therein the property donated and the value of the charges which the donee must
satisfy.

The acceptance may be made in the same deed of donation or in a separate public document, but it shall
not take effect unless it is done during the lifetime of the donor.

If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form,
and this step shall be noted in both instruments.
24 Article 1275. The obligation is extinguished from the time the characters of creditor and debtor are merged

in the same person.

Page 7 of 16
 to him, the obligation is extinguished. A became the debtor and creditor
of his own promissory note.”25

If the confusion occurred with respect to the principal obligation, all

accessory obligations attached thereto are likewise extinguished. However,
in case the confusion took place only with respect to the accessory obligation,
the principal obligation will remain.26

Finally, confusion in joint obligations only extinguishes the share

corresponding to the creditor or debtor in whom the two (2) characters
concur.27

COMPENSATION

Compensation, or otherwise known as “set-off”, takes place when two

(2) persons, in their own right, are debtors and creditors of each other.28

This mode is different with confusion as, in the former, there are at
least two (2) obligations where each party is both a debtor and creditor of
each of the two obligations, while in the latter, there is only one obligation
where one person became the debtor and creditor at the same time.

There are two (2) kinds of compensation – the legal compensation and
the conventional compensation. Legal compensation is compensation by
operation of law, while conventional compensation is compensation by
agreement of the parties.

Legal compensation; requisites;

when not applicable

In order for legal compensation to take place, the following requisites

must concur29:

25 Note: promissory notes are mercantile documents considered as substitutes of money.

26 Article 1276. Merger which takes place in the person of the principal debtor or creditor benefits the
guarantors. Confusion which takes place in the person of any of the latter does not extinguish the
obligation.
27 Article 1277. Confusion does not extinguish a joint obligation except as regards the share corresponding

to the creditor or debtor in whom the two characters concur.

28 Article 1278. Compensation shall take place when two persons, in their own right, are creditors and

debtors of each other.

29 Article 1279.

Page 8 of 16
 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 persons and communicated in due time to
the debtor.

As long as all the requisites mentioned above are present,

compensation occurs, thus, the obligation is extinguished even if both
parties are not aware of the compensation.30 Likewise, compensation shall
take place even though the debts are payable at different places, but there
shall be an indemnity for expenses of exchange or transportation to the place
of payment.31

The extinguishment can either be total or partial. When both

obligations are of the same amount, there is total extinguishment for both
obligations. Otherwise, there is only total extinguishment for one obligation
and partial extinguishment for the other.32

Compensation can likewise take place with respect to valid obligations

with some defects, as long as they have not yet been annulled or rescinded.33

In addition, the law provides that if one of the parties should have
against him several obligations which are susceptible of compensation, then

30 Article 1290. When all the requisites mentioned in article 1279 are present, compensation takes effect by
operation of law, and extinguishes both debts to the concurrent amount, even though the creditors and
debtors are not aware of the compensation.
31 Article 1286. Compensation takes place by operation of law, even though the debts may be payable at

different places, but there shall be an indemnity for expenses of exchange or transportation to the place of
payment.
32 Article 1281. Compensation may be total or partial. When the two debts are of the same amount, there is

a total compensation.
33 Article 1284. When one or both debts are rescissible or voidable, they may be compensated against each

other before they are judicially rescinded or avoided.

Page 9 of 16
the rules on the application of payments shall apply to the order of
compensation.34

However, no legal compensation can take place, even if all the

requisites therefor are present, in the following instances:

1. If one of the obligations is void;

2. If one of the obligations arises from a depositum or from the

obligations of a depositary or of a bailee in commodatum35;

3. If one of the obligations is for support by gratuitous title36; and

4. If one of the obligations is a civil liability arising from a criminal

offense37.

Assignment of credit prior to

compensation; rules

There are instances whereby one of the parties in an obligation has

assigned his credit to another person. For example:

“A owes B Three Thousand Pesos (Php3,000.00) that is already

due and demandable. In a separate transaction, B owes A Five
Thousand Pesos (Php5,000.00) that is not yet due and demandable.
The next day, A assigned his credit of Five Thousand Pesos
(Php5,000.00) to C. After the assignment, all the requisites for legal
compensation have taken place.”

Now, the question is: can C collect from B? If yes, how much? If no,
why not? To answer these questions, the law provides for the following
guidelines38:

34 Article 1289. If a person should have against him several debts which are susceptible of compensation,
the rules on the application of payments shall apply to the order of the compensation.
35 Article 1287, 1st par. Compensation shall not be proper when one of the debts arises from a depositum

or from the obligations of a depositary or of a bailee in commodatum.

36 Article 1287, 2nd par. Neither can compensation be set up against a creditor who has a claim for support

due by gratuitous title, without prejudice to the provisions of paragraph 2 of article 301.
37 Article 1288. Neither shall there be compensation if one of the debts consists in civil liability arising from

a penal offense.
38 Article 1285. The debtor who has consented to the assignment of rights made by a creditor in favor of a

third person, cannot set up against the assignee the compensation which would pertain to him against the
assignor, unless the assignor was notified by the debtor at the time he gave his consent, that he reserved
his right to the compensation.

Page 10 of 16
 1. If the debtor consented to the assignment of rights made by a
creditor in favor of a third person, the debtor cannot set up
against the assignee the compensation which would pertain to
him against the assignor, unless the assignor was notified by
the debtor at the time he gave his consent that he reserved his
right to the compensation;

In this case, if B consented to the assignment of rights by A to C,

then B cannot raise compensation. Hence, he is still required to
pay C Five Thousand Pesos (Php5,000.00). At the same time, B’s
recourse is to collect from A his credit of Three Thousand Pesos
(Php3,000.00).

The only exception is when there has been a reservation of the

right of compensation prior to the assignment.

2. If the debtor was notified of the assignment of rights in favor

of a third person but did not agree thereto, the debtor can set
up compensation of his credits from the old creditor prior to the
assignment.

In this scenario, if A communicated to B his desire to assign his

rights to C, but B did not agree thereto, B can set up
compensation of his credit from A against C.

Hence, if C demands from B the payment of Five Thousand

Pesos (Php5,000.00), then B can raise that he is not obliged to pay
the whole amount to C because A is indebted to him in the
amount of Three Thousand Pesos (Php3,000.00). Therefore, B is
only obliged to pay C Two Thousand Pesos (Php2,000.00).

C’s recourse is to go after A for the remaining balance of Three

Thousand Pesos (Php3,000.00).

3. If the debtor has no knowledge of the assignment of rights, the

debtor can set up compensation of his credits from the old

If the creditor communicated the cession to him but the debtor did not consent thereto, the latter may set
up the compensation of debts previous to the cession, but not of subsequent ones.

If the assignment is made without the knowledge of the debtor, he may set up the compensation of all
credits prior to the same and also later ones until he had knowledge of the assignment.

Page 11 of 16
 creditor prior and subsequent to the assignment until he obtains
knowledge of the assignment.

In the example above, assuming that A has also been indebted to

B subsequent to the assignment in the amount of One Thousand
Pesos (Php1,000.00), then B, aside from the Three Thousand
Pesos (Php3,000.00) which he can set up as compensation, can
likewise add thereon the subsequent One Thousand Peso
(Php1,000.00)-credit that he has against A. Hence, B is only
required to pay C the amount of One Thousand Pesos
(Php1,000.00) [Php5,000.00 less (Php3,000.00 plus Php1,000.00)].

C’s recourse is to go after A for the remaining balance of Four

Thousand Pesos (Php4,000.00).

Conventional compensation

This is a kind of compensation where not all the elements for legal
compensation are present, yet, by agreement of the parties, compensation is
set up. The best example of conventional compensation is when parties
agree to compensate obligations which are not yet due.39

Although parties are given a leeway as to which obligations to

compensate despite the lack of some of the requisites of legal compensation,
the parties are not allowed to compensate those obligations expressly
prohibited by law, as mentioned and enumerated above.

NOVATION

As distinguished from the other modes, novation is not an absolute

mode of extinguishing an obligation. Extinguishment is merely a part of
novation. This mode has two (2) parts. The first part is the extinguishment,
and the second part is the birth of the new obligation.

There are three (3) methods by which novation is effected40:

39 Article 1282. The parties may agree upon the compensation of debts which are not yet due.
40 Article 1291. Obligations may be modified by:

(1) Changing their object or principal conditions;

(2) Substituting the person of the debtor;

Page 12 of 16
 1. Change in the object of the obligation or principal conditions;

2. Change in the person of the debtor (substitution); and

3. Change in the person of the creditor (subrogation).

The first method is called “real novation” or “objective novation”. The

second and third methods are called “personal novation” or “subjective
novation”.

Requisites of a valid novation

1. The old obligation must be valid41, even if defective;

2. The new obligation must be valid42, even if defective;

3. There must be a substantial difference between the old and new

obligations;

In order that an obligation may be extinguished by another

which substituted the same, it is imperative that it be so declared
in unequivocal terms, or that the old and new obligations be on
every point incompatible with each other.43

4. The parties to the old and new obligations must be legally

capacitated;

Legal capacity of the parties to the old and new obligations shall
be reckoned at the time of constitution of the old and new
obligations, respectively.

5. The intent to novate must be present at the time novation takes

place.

When the principal obligation is extinguished as a consequence of

novation, accessory obligations may subsist only insofar as they may benefit

(3) Subrogating a third person in the rights of the creditor.

41 Article 1298. The novation is void if the original obligation was void, except when annulment may be

claimed only by the debtor or when ratification validates acts which are voidable.
42 Article 1297. If the new obligation is void, the original one shall subsist, unless the parties intended that

the former relation should be extinguished in any event.

43 Article 1292.

Page 13 of 16
third persons who did not give their consent.44 More so, if the original
obligation was subject to a suspensive or resolutory condition, the new
obligation shall be under the same condition, unless otherwise stipulated.45

Substitution; kinds; general

principles applicable

Substitution is the change in the person of the debtor. The change must
always be with the consent of the creditor. There are two (2) kinds of
substitution:

1. Expromission – when a third person, of his own volition and

initiative, with or without the conformity or knowledge of the
old debtor, assumes the obligation; and

2. Delegacion – when the old debtor, through his own initiative,

introduces to the creditor a third person to be the new debtor.

This distinction is important in determining the legal implications in

case of insolvency of the new debtor.

1. In case of expromission, the insolvency of the new debtor shall not

give rise to any liability on the part of the old debtor. This rule
is absolute46;

2. In case of delegacion, the insolvency of the new debtor shall not

also give rise to any liability on the part of the old debtor,
EXCEPT in the following circumstances47:

a. When the substitution took place, the insolvency of the

new debtor was already existing and of public knowledge;
or

44 Article 1296.
45 Article 1299
46 Article 1294. If the substitution is without the knowledge or against the will of the debtor, the new debtor's

insolvency or non-fulfillment of the obligations shall not give rise to any liability on the part of the original
debtor.
47 Article 1295. 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, except when
said insolvency was already existing and of public knowledge, or known to the debtor, when the delegated
his debt.

Page 14 of 16
 b. When the substitution took place, the old debtor already
knew as a fact the insolvency of the new debtor.

In these exceptions, the creditor can go after the old debtor on

the basis of bad faith on the part of the latter for recommending
a new debtor who is already insolvent at the time of the
substitution.

In case of payment by the new debtor, the following rules shall

govern48:

1. Payment made with the consent (knowledge and approval) of

the old debtor – the new debtor, by operation of law, is now
subrogated in the shoes of the creditor for the full amount of his
payment (otherwise known as the “Right of Absolute
Reimbursement”) and can exercise rights of the creditor such as
those arising from mortgage, guaranty, or penalty.

2. Payment made with the knowledge but against the will of the
old debtor – the new debtor, by operation of law, is now
subrogated in the shoes of the creditor subject to two (2)
conditions, namely (a) he can only recover from the debtor only
insofar as payment has been beneficial to the latter49 (otherwise
known as the “Right of Conditional/Beneficial
Reimbursement”); and (b) he cannot compel the creditor to
subrogate him in his rights such as those arising from mortgage,
guaranty, or penalty.50

3. Payment made without the knowledge of the old debtor – same

legal effect as item no. 2.

Subrogation; kinds; general

principles applicable

48 Article 1293. Novation which consists in substituting a new debtor in the place of the original one, may
be made even without the knowledge or against the will of the latter, but not without the consent of the
creditor. Payment by the new debtor gives him the rights mentioned in articles 1236 and 1237.
49 Art. 1236, 2nd par. x x x

Whoever pays for another may demand from the debtor what he has paid, except that if he paid without
the knowledge or against the will of the debtor, he can recover only insofar as the payment has been
beneficial to the debtor.
50 Art. 1237. Whoever pays on behalf of the debtor without the knowledge or against the will of the latter,

cannot compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty,
or penalty

Page 15 of 16
 Subrogation is the change in the person of the creditor. There are two
(2) kinds of subrogation:

1. Legal subrogation – change in the person of the creditor as

provided under the law.

This kind of subrogation is not presumed and must be clearly

established before it could take effect51 EXCEPT in the following
instances when legal subrogation is presumed52:

a. When a creditor pays another creditor who is preferred,

even without the debtor's knowledge;

b. When a third person, not interested in the obligation, pays

with the express or tacit approval of the debtor;

c. 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.

2. Conventional subrogation – change in the person of the creditor

by agreement of the parties. This requires the consent of the
original parties and of the new creditor.53

Subrogation transfers to the persons subrogated the credit with all the
rights thereto appertaining, either against the debtor or against third person,
be they guarantors or possessors of mortgages, subject to stipulation in a
conventional subrogation.54 A creditor, to whom partial payment has been
made, may exercise his right for the remainder, and he shall be preferred to
the person who has been subrogated in his place in virtue of the partial
payment of the same credit.55

x x x Nothing follows x x x

51 Article 1300. Subrogation of a third person in the rights of the creditor is either legal or conventional. The
former is not presumed, except in cases expressly mentioned in this Code; the latter must be clearly
established in order that it may take effect.
52 Article 1302.

53 Article 1301. Conventional subrogation of a third person requires the consent of the original parties and

of the third person.

54 Article 1303.

55 Article 1304.

Page 16 of 16