Article 1275.

The obligation is extinguished

from the time the characters of creditor and
debtor are merged in the same person.

REASON OR BASIS
FOR CONFUSION
• (1) The law treats confusion or merger as
a mode of extinguishing obligations
because if the debtor is his own creditor,
enforcement of the obligation becomes
absurd since a person cannot claim
payment from himself.

(2) Furthermore, when there is confusion of

rights, the purposes for which the
obligation may have been created are
deemed realized.
REQUISITES OF
CONFUSION

For a valid confusion or merger to take

place, it is necessary that:

• (1) It must take place between the

principal debt and creditor; and

(2) It must be complete

Example (1)
D owes C with an amount of Php 10,000 for which D executed a negotiable promissory note
in favor of C. C, indorsed the note to E who, in turn, indorsed it to F. Now, F, bought goods
from the store of D. Instead of paying cash, F indorsed the promissory note to D.
Here, D, owes himself. Consequently, his obligation is extinguished by merger.

Example (2)
X and Y are the heirs of Z. In his will, Z gave to X a parcel of land in usufruct for 10 years.
The naked ownership to the same parcel was given to Y. Later, Y, sold his interest in the
land to X.
In this case, the usufruct is naturally extinguished and now, X will now have the full
ownership of his land.