1.

Loss of the thing due: If a debtor is supposed to deliver a

particular car to the creditor, but an earthquake causes the
destruction of the car while the debtor is on the way to deliver
it. The obligation to deliver the car is extinguished if the loss
occurs without the fault of the debtor.

2. Partial loss or deterioration: If a debtor is obligated to

deliver a specific racing horse to the creditor, but the horse
breaks one of its legs in an accident, rendering it unable to
race. The injury will cause the horse to be unable to race, and
thus the partial loss will be considered total loss, extinguishing
the obligation.

3. Presumption of fault of the debtor: If a debtor is obligated to

deliver a specific cell phone to the creditor, but the cell phone
was stolen while in the possession of the debtor. It is
presumed that the cell phone was lost due to the debtor's
fault, unless proven otherwise.

4. Impossibility of performance: If a contractor is unable to

repair a road because the whole mountain where the road is
located has collapsed, rendering the performance impossible.

5. Compensation: If A owes B 100 pesos, and B owes A 50

pesos, there can be partial compensation to the amount of 50
pesos only.
6. Novation: If Mary agreed to buy Linda a new pair of pants if
the latter passes her subjects, but later they agreed that
instead of a pair of pants, Mary will give Linda a new pair of
shoes. The latter obligation is still accompanied by the
condition to pass the subjects.

7. Conventional compensation: If X owes Y the sum of ten

thousand pesos, while Y is obligated to X for the delivery of a
Chihuahua puppy, they can agree to set off their obligations
and not deliver either.

8. Legal novation: If a creditor pays another creditor who is

preferred, the creditor who paid can collect the amount from
the debtor who owed the preferred creditor.

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1. Loss of the Thing Due
- Explanation: This mode of extinguishing an obligation
applies to real obligations, which are obligations to deliver a
specific thing and not a generic or indeterminate one. When
the thing due is lost, the obligation is extinguished.
- Forms of Loss:
- Physical: The thing perishes, such as a house burning
down or a car being wrecked.
- Civil: The thing cannot be located or recovered.
- Legal: The thing goes out of commerce or can no longer
be lawfully traded.
 - Requisites for Extinguishment:
- Real Obligation: The obligation must be a real one, not a
generic obligation.
- Loss Without Debtor's Fault: The loss must have
occurred without the fault of the debtor.
- Example: A debtor's obligation to deliver a specific painting
is extinguished if the painting is destroyed in a fire without the
debtor's fault.

2. Partial Loss or Deterioration

- Explanation: This concept deals with situations where
there is only a partial loss or deterioration of the thing due. In
such cases, the obligation is not extinguished unless the
partial loss renders the whole thing unfit for its purpose.
- Example: If a specific racing horse is injured and can no
longer race, the partial loss is considered total loss because
the horse can no longer fulfill its intended purpose.

3. Presumption of Fault of the Debtor

- Explanation: There is a presumption that the loss of the
thing due is due to the fault of the debtor. However, this
presumption does not apply in cases of earthquake, flood,
storm, or other natural calamities.
- Rebutting the Presumption: The debtor can rebut this
presumption by proving that the loss was not due to their fault
but was a result of a fortuitous event.

4. Impossibility of Performance
 - Explanation: This mode of extinguishment occurs when
the obligation cannot be performed due to physical, legal, or
contractual impossibility. It is important to note that the
impossibility of performance must not be due to the fault of
the debtor.
- Example: If a person agrees to sell a specific car to
another person, but the car is destroyed before the sale is
completed, the obligation to deliver the car is extinguished
due to the impossibility of performance.

5. Compensation
- Explanation: Compensation involves the total or partial
offset of debts between two persons who are creditors and
debtors of each other. For compensation to take place, the
debts must be of the same kind and both debts must be due
and demandable.
- Forms of Compensation:
- Legal Compensation: This is a form of compensation that
occurs automatically by operation of law without the need for
the consent of the parties.
- Conventional Compensation: This occurs when the
parties agree to compensate each other for their respective
debts.

6. Novation
- Explanation: Novation occurs when a new obligation
extinguishes an existing obligation by replacing it. This can
happen through different legal mechanisms and can be total
or partial, and real or personal.
- Forms of Novation:
- Express Novation: This occurs when the parties explicitly
agree to replace the existing obligation with a new one.
- Implied Novation: This occurs when the circumstances
imply that the parties intend to replace the existing obligation
with a new one.

7. Condonation or Remission
- Explanation: Condonation or remission happens when the
creditor forgives the debt without expecting anything in return.
This must be a gratuitous act on the part of the creditor, and
the debtor must accept the forgiveness of the debt.
- Requirements for Condonation:
- Gratuitous Act: The act of forgiving the debt must be
done without expecting anything in return.
- Acceptance by Debtor: The debtor must accept the
forgiveness of the debt for it to be valid.

8. Merger or Confusion
- Explanation: Merger or confusion occurs when the
qualities of creditor and debtor merge in the same person.
This typically happens when a person who owes a debt
inherits the creditor's rights.
- Example: If a person owes a debt to their parent, and then
inherits the parent's estate, the debt is extinguished due to the
merger of the qualities of creditor and debtor in the same
person.

9. Additional Notes
- Novation: Novation can be expressed or implied,
depending on whether it is clearly agreed upon or inferred
from the conduct of the parties.
- Guarantor's Obligation: If the principal obligation is
extinguished, the obligation of the guarantor is also
extinguished.
- Legal Compensation: Legal compensation does not
require the consent of the parties and happens automatically
by operation of law.

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1. Payment or Performance: The debtor fulfills the obligation

by delivering the agreed-upon payment or performing the
required action. It is the most common way to extinguish an
obligation and involves the debtor meeting their commitment
to the creditor according to the terms of the agreement.

2. Loss of the Thing Due: The thing owed is destroyed or

becomes impossible to deliver through no fault of the debtor,
such as through natural disaster. This mode applies to real
obligations or obligations to deliver specific things, not generic
or indeterminate ones.
 - Forms of Loss: Loss can take three forms: physical loss
(e.g., a house burned down), civil loss (the thing cannot be
located), or legal loss (the thing goes out of commerce).

- Requirements: For loss to extinguish the obligation, it must

occur without the fault of the debtor and involve a real
obligation.

3. Condonation or Remission: The creditor voluntarily forgives

the debt, releasing the debtor from the obligation to repay. It is
a gratuitous act on the part of the creditor and must be legally
capacitated at the time of condonation.

4. Confusion or Merger: The roles of creditor and debtor are

merged into one person, typically through inheritance or legal
transfer. For confusion to extinguish an obligation, the
merging must occur between the principal debtor and creditor.

5. Compensation: Both parties owe each other sums of

money, which are offset against each other to the extent of the
smaller debt. It can be total (both debts are extinguished) or
partial (only a portion of the debts is offset).

- Legal Compensation: Takes place by operation of law and

does not need the consent of the parties as long as certain
elements are present.
 - Voluntary Compensation: Takes place by agreement of the
parties, even if the obligations are not of the same nature.

- Judicial Compensation: Can also take place by virtue of a

court order.

- Facultative Compensation: Accrues when one of the

parties cannot set it up as the obligation consists of those not
allowed by law to be the subject of compensation.

6. Novation: A new obligation replaces the original one, either

by changing the terms or parties involved. It can be total (the
old obligation is eradicated) or partial (there are some
alterations on the old obligation).

- Real Novation: Involves changing the object or principal

conditions of the obligation.

- Personal Novation: Involves replacing the debtor with a

new debtor or replacing the creditor with a third person by
subrogation.

- Mixed Novation: Involves a combination of different kinds

of novation.