Oblicon Reviewer

(Midterms)

HOW ARE OBLIGATIONS EXTINGUISHED?

- ART 1231

 Payment or performance
 Loss of the thing due
 Condonation or remission
 Confusion or merger of rights
 Compensation
 Novation

IF PAYMENT WAS MADE BY A 3RD PERSON, IS THE OBLIGATION DEEMED

FULFILLED?
- ART 1236

 The creditor is not bound to accept payment or performance by a 3rd

person WHO HAS NO INTEREST IN FULFILLMENT OF THE
OBLIGATION

- ART 1237

 Payment on BEHALF of the debtor without knowledge or against his will

cannot compel the creditor to subrogate (substitute) him his rights

 Any rights by the debtor, such as ownership in mortgage, guaranty

or penalty cannot be transferred to the person that payed on his
behalf, without his knowledge or against his will
WHAT HAPPENS IF A 3RD PERSON WHO PAYS THE DEBT DOES NOT INTEND TO
REIMBURSE IT?

- ART 1238

 Payment made by that 3rd person is deemed to be a donation which

requires consent. But the payment is, in any case, valid to the creditor who
has accepted it
IN PAYMENT OF AN OBLIGATION, TO WHO SHALL PAYMENT BE MADE?

- ART 1240

 Payment shall be made to the person whose favor the obligation has been
constituted, or his successor in interest, or any person authorized to
receive it.

 LEGAL – conferred by law, such as guardians or representatives

 CONVENTIONAL – authority was given by the creditor himself
 PAYMENT TO A WRONG PARTY DOES NOT EXTINGUISH THE
OBLIGATION AS TO THE CREDITOR

IF PAYMENT IS MADE, DOES THAT RELEASE THE DEBTOR FROM THE

CREDITOR?
- ART 1242
 If in good faith, he is released
- ART 1243
 If it is judicially ordered to retain the debt, he is not released
- ART 1244

 The creditor cannot be compelled to receive a different payment than what

is due. In obligations to do or not to do, an act of forbearance
(enforcement) cannot be substituted by another act against the obligee’s
will
 WHAT CURRENCY SHALL PAYMENT BE MADE?

- ART 1249

 Payment of debts in money shall be made in the currency stipulated, if it is

not possible, then the currency which is legal tender in the Philippines

 A check, whether manager’s check or ordinary check, is not legal

tender
IN INSTANCES OF EXTRAORDINARY INFLATION OR DEFLATION, HOW SHALL
PAYMENT BE VALUED?
- ART 1250

 The value of the currency at the time of the establishment of the obligation
shall be the basis of payment, unless there is an agreement to the
contrary
WHAT IS PAYMENT BY CESSION AND DATION IN PAYMENT?
- ART 1255

 PAYMENT BY CESSION:
A special form of payment whereby the debtor abandons or
assigns all his property for the benefit of his creditors so that the
latter may obtain payment of their credits from the proceeds of the
property

 DATION IN PAYMENT:
A form of payment where the debtor does not abandon or assign all
his property. The debtor’s ownership of the property is transferred
to the creditor whose favor the conveyance was made
 IN WHAT INSTANCE MAY THE DEBTOR BE REALEASED IN HOLD OF
ABBEYANCE OF DEBT?
- ART 1256

 If a creditor, to whom tender of payment (held in abeyance), has been

made refuses without just cause to accept it, the debtor shall be released
from responsibility by the consignation of the thing or sum due

 TENDER OF PAYMENT
Manifestation (intent), made by the debtor to the creditor of his
desire to comply with his obligation; An act of the debtor of offering
to the creditor the thing due
 CONSIGNATION
Deposit of the object or the amount due with the proper court after
refusal or inability of the creditor to accept the tender of payment