I. Define the 6 modes of extinguishing obligations.

II. Extinguish the obligation.

A. Kathryn borrowed P50,000.00 from DJ with Karla as

guarantor. Kathryn pays DJ P10,000.00. Marites, a
third person, pays DJ P50,000.00 believing that
Kathryn still owed DJ P50,000.00. The payment is
without the consent of Kathryn. ---- Payment without
the knowledge or against the will of the debtor - He
can recover only insofar as the payment has been
beneficial to the debtor. He is not entitled to
subrogation. (Arts. 1236 and 1237) Example: D
borrowed P20,000.00 from C with G as guarantor. D
pays C P2,000.00. T, a third person, pays C
P20,000.00 believing that D still owed C P20,000.00.
The payment is without the consent of D. In this case,
T can only recover P18,000.00 from D, the amount
that was beneficial to D. If D cannot pay, T, cannot go
after G because he is not entitled to be subrogated in
the rights of C.

B. Nadine owes James P10,000. On due date, James

demands payment but Nadine cannot pay. James
discovers that Nadine has a receivable from Beau so
he files a court action against Nadine and asks the
court to order Beau not to make any payment to
Nadine. ----- Payment made by the debtor after court
has ordered him to retain debt. Payment made to the
creditor by the debtor after the debtor has been
judicially ordered to retain the debt shall not be valid.
(Art. 1243) The court order is known as garnishment.

Example: D owes C P50,000.00. On due date, C

demands payment but D cannot pay. C, however,
learns that D has a receivable from X so he files a
court action against D and asks the court to order X
 not to make any payment to D. The court issues the
order. If X pays D, the payment will not be valid
because there is an order of retention from the court.
Should the court favor C in its judgment in the case
filed by C against D, X can be required to pay again,
this time to C.

C. Debbie owes Xaxa P10,000.00; Yenyen, P30,000.00;

and Zuzu, P50,000.00. All the obligations are due but
Debbie has P40,000.00 only. ----- Payment by cession
- the abandonment or assignment by the debtor of all
his property in favor of his creditors so that the latter
may sell them and recover their claims out of the
proceeds. (Art. 1255) The cession or assignment
operates only to authorize the creditors to sell the
debtor's property, hence, ownership is not transferred
to them. Unless agreed upon, the cession releases the
debtor from his responsibility only to the extent of the
net proceeds of the things assigned. (Art. 1255)
Illustration: D owes X, P50,000.00; Y, P20,000.00; and
Z, P30,000.00. All the obligations are due but D has
assets worth P80,000.00 only. D offers to assign his
assets to X,Y and Z so that they may sell themand
apply the proceeds to their respective claims. X, Y and
Z accept the offer. If the assets are sold P70,000.00.
then D will be released from his obligations only up to
amount, unless the creditors agreed to release him
completely of his debts.

III. Raymund owes John the following debts:

1. P3,000 due on May 5;

2. P3,000 due on May 10;
3. P3,000 due on May 18 and
4. P3,000 due on May 20.

All the debts are secured by a pledge of Raymund’s luxury watch.

They agreed that the benefit of the term on the debts was granted to John.
On May 18, Raymund has P3,000 and is ready to pay John. Raymund ask for your help to
extinguish his obligation to John. What will be your advice?
 IV. D executed a promissory note for P50,000.00 representing
the price of a car that C, by means of violence, sold to D.
Later, when the violence has ceased, D proposed to C that
he would give his ring instead of P50,000.00. C accepted
the proposal. The novation here is valid. Whatever defect in
the consent present in the original one is deemed cured by
the new obligation to give the ring. ------ Effect if the
original obligation is voidable

The novation is provided that annulment may be claimed only by

the debtor or when ratification extinguishes acts which are
voidable. (Art. 1298) The novation here cures whatever defects
present in the original obligation.

Example: D executed a promissory note for P50,000.00 representing

the price of a car that C, by means of violence, sold to D. Later,
when the violence has ceased, D proposed to C that he would give
his ring instead of P50,000.00. C accepted the proposal. The
novation here is valid. Whatever defect in the consent present in the
original one is deemed cured by the new obligation to give the ring.

Violence