EXTRACTS FROM

THE NEW CIVIL

CODE ON
OBLIGATIONS
AND CONTRACTS
Presented by Group 2 (BSCE 3-3)
 Title I
01. OBLIGATIO
NS
CHAPTER 4: Extinguishment of Obligation
Obligations are extinguished:
(1) By payment or performance;
(2) By the loss of the thing due;
Art. (3) By the Condonation or remission of the debt;
1231 (4) By the confusion or merger of the rights of creditor and
debtor;
(5) By compensation;
(6) By novation.

Payment means not only the delivery of money but also the
Art. performance, in any other manner, of an obligations. (n)
1232
CHAPTER 4: Extinguishment of Obligation

A debt shall not be understood to have been paid unless the

Art.
thing or service in which the obligation consists has been
1233 completely delivered or rendered, as the case may be. (1157)

If the obligation has been substantially performed in good

Art. faith the obligor may recover as though there had been a strict
1234 and complete fulfillment, less damages suffered by the
obligee. (n)
CHAPTER 4: Extinguishment of Obligation
When the obligee accepts the performance,knowing its
Art. incompleteness or irregularity, and without expressing any
1235 protest or objection, the obligation is deemed fully complied
with. (n)

The Creditor is not bound to accepts the payment or

performance by a third person who has no interest in the
fulfillment of the obligation, unless there is a stipulation to the
Art.
contrary.
1236 Whoever pays for another may deman from the debtor what he
has paid, except that if he paid without knowledge or against
the will of the debtor, he can recover only insofar as the
payment has been beneficial to the debtor. ( 1158a)
CHAPTER 4: Extinguishment of Obligation
Whoever pays on behalf of the debtor without the knowledge
Art. or against the will of the latter, cannot compel the creditor to
1237 subrogate him in his rights such as those arising from a
mortgage, guaranty, or penalty. (1159a)

Payment made by a third person who does not intend to be

Art. reimbursed by the debtor is deemed to be a donation, which
1238 requires the debtor’s consent. But the payment is in any case
valid as to the creditor who has accepted it.
CHAPTER 4: Extinguishment of Obligation
In obligation to give, payment made by one who does not have
Art. the free disposal of the thing due and capacity to alienate it
1239 shall not be valid, without prejudice to the provisions of the
article 1427 under the Title on “Natural Obligations.” (1160a)

Payment shall be made to the person in whose favor the

Art.
obligation has been constituted, or his successor in interest, or
1240 any person authorized to received it. (1162a)
CHAPTER 4: Extinguishment of Obligation
Payment to a person who is incapacitated to administer his property shall be valid if
he has kept the thing delivered, or insofar as the payment has been beneficial to
him.
Payment made to a third person shall also be valid insofar as it has redounded to
the benefit of the creditor. Such benefit to the creditor need not be proved in the
Art. following cases.
1241 (1) If after the payment, the third person acquires the creditor’s right;
(2) If the creditor ratifies the payment to the third person;
(3) if by the creditor’s conduct, the debtor has been led to believe that the third
person had authority

Art. Payment made in good faith to any person in

1242 possession of the credit shall release the debtor. (1164)
CHAPTER 4: Extinguishment of Obligation

Payment made to the creditor by the debtor in after the latter

Art.
has been judicially ordered to retain the debt shall not be valid.
1243 (1165)

The debtor of a thing cannot compel the creditor to receive a different

one, although the latter may be of the same value as, or more valuable
Art. than that which is due.
1244 In obligations to do or not do, an act of forbearance cannot be
substituted by another act or forbearamce against the oblige’s will.
(1166a)
CHAPTER 4: Extinguishment of Obligation

Dation in payment, whereby property is alienated to the

Art.
creditor in satisfaction of a debt in money, shall be governed
1245 by the law of sales. (n)

When the obligation consists in the delivery of an inderminate

or generic thing, whose quality and circumstances have not
Art.
been stated, the creditor cannot demand a thing of superior
1246 quality. Neither can the debtor deliver shall be taken into
consideration. (1167a)
CHAPTER 4: Extinguishment of Obligation

Unless it is otherwise stipulated, the extrajudicial expenses

Art.
required by the payment shall be for the account of the debtor.
1247 With regard to judicial costs, the Rules of Court shall govern.

Unless there is an express stipulation to that effect, the creditor cannot

be compelled partially to receive the prestations in which the
Art. obligation consists. Neither may the debtor be required to make partial
1248 payments.
However, when the debt is in part liquidated and in part unliquidated,
the creditor may demand and the debtor may effect the payment of the
former without waiting for the liquidation of the latter. (1169a)
CHAPTER 4: Extinguishment of Obligation
The payment of the debts in money shall be made in the currency
stipulated, and if it is possible to deliver such currency, then in the
Art. currency which is legal tender in the Philippines.
1249 The delivery of promissory notes payable to order, or bills of exchange
or other mercantile documents shall produce the effect of payment
only when they have been cashed, or when through the fault of the
creditor they have been impaired.
In the meantime, the action derived from the original obligation shall
be in abeyance. (1170)

In case an extraordinary inflation or deflation of the currency

stipulated should supervene, the value of the currency at the
Art.
same time of the establishment of the obligation shall be the
1250 basis of the payment, unless there is an agreement to the
contrary. (n)
CHAPTER 4: Extinguishment of Obligation
Payment shall be made in the place designated in the obligation.
Art. There being no express stipulation and if the undertaking is to deliver the thing
might be at the moment the obligation was constituted.
1251 In any other case the place of payment shall be domicile of the debtor.
If the debtor changes his domicile in bad faith or after he has incurred in delay, the
addition shall be borne by him
These provisions are without prejudice to venue under Rules of Court. (1171a)

He who has various debts of the same kind in favor of one and
the same creditor, may declare at the time of making the
payment, to which of them the same must be applied. Unless the
parties so stipulate, or when the application of payment is made
Art. by the party for whose benefit the term has been constituted,
application shall not be made as to debts which are not yet due.
1252 If the debtor accepts from the creditor a receipt in which an
application of the payment is made, the former cannot complain
of the same, unless there is a cause for invalidation the contract.
(1172a)
CHAPTER 4: Extinguishment of Obligation

If the debt produces interest,payment of the principal shall not

Art.
be deemed to have been made until the interests have been
1253 covered. (1173)

When the payment cannot be applied in accordance with the preceding

rules, or if application can not be inferred from other circumstances,
Art. the debt which is most onerous to the debtor, among those due, shall be
1254 deemed to have been satisfied.
If the debts due are of the same nature and burden, the payment shall
be applied to all of them proportionately. (1174a)
CHAPTER 4: Extinguishment of Obligation
The debtor may cede or assisgn his property his creditors in
payment of his debts. This cession, unless there is stipulation
to the contrary, shall only release the debtor from
Art.
responsibility for the net proceeds of the thing assigned. The
1255 agreements which, on the effect of the cession, are made
between the debtor and his creditors shall be governed by
special laws. (1175a)
 Title II
02. CONTRACT
S
CHAPTER 2: Nature and Effect of Obligations

Art. An obligation is a juridical necessity to give, to do or not to

1156 do. (n)

Obligations derived from law are not presumed. Only those

expressly determined in this Code or in special laws are
Art.
demandable, and shall be regulated by the precepts of the law
1156 which establishes them; and as to what has not been foreseen,
by the provisions of this Book. (1090)
CHAPTER 2: Nature and Effect of Obligations

Art. An obligation is a juridical necessity to give, to do or not to

1156 do. (n)

Obligations derived from law are not presumed. Only those

expressly determined in this Code or in special laws are
Art.
demandable, and shall be regulated by the precepts of the law
1156 which establishes them; and as to what has not been foreseen,
by the provisions of this Book. (1090)
CHAPTER 2: Nature and Effect of Obligations
Section 1. Consent
Art. An obligation is a juridical necessity to give, to do or not to
1156 do. (n)

Obligations derived from law are not presumed. Only those

expressly determined in this Code or in special laws are
Art.
demandable, and shall be regulated by the precepts of the law
1156 which establishes them; and as to what has not been foreseen,
by the provisions of this Book. (1090)
Meeting Objectives

MARS NEPTUNE VENUS

Despite being red, Mars is Neptune is the fourth- Venus has a beautiful
a cold place full of iron largest planet in the Solar name, but also a
oxide dust System poisonous atmosphere
Our Company
Mercury is the closest planet to the Sun
and also the smallest one in the Solar
System—it’s only a bit larger than the
Moon
About the Project

SATURN JUPITER
Saturn is the ringed one. It’s Jupiter is a gas giant and the
composed mostly of biggest planet in the Solar
hydrogen and helium System
 “This is a quote,
words full of wisdom
that someone important said
and can make the reader
get inspired.”

—Someone Famous
Project Schedule
JAN FEB MAR APR MAY JUN

Phase 1 Jan 1 - Mar 5

Task 1 Jan 1 - Feb 15

Phase 2 Apr 1 - Jun 30

Task 1 Apr 1 - May 15

Checklist
STRATEGY 1 STRATEGY 2 STRATEGY 3

Describe here your task 1 ✖ ✓ ✓

Describe here your task 2 ✓ ✖ ✖

Describe here your task 3 ✓ ✓ ✖

Describe here your task 4 ✖ ✖ ✓

Describe here your task 5 ✓ ✓ ✓

Awesome
Words
Because key words are great for
catching your audience’s attention
Project Timeline
MERCURY VENUS
Mercury is the Venus has a
smallest planet beautiful name

01 02 03 04

MARS NEPTUNE
Despite being red, Neptune is the
Mars is cold fourth-largest
KPI Dashboard
2018 2019 2020 *Modify it!

50% Mars

60% Venus

40% Earth

30 DAYS 45 SHOPS 77 UNITS

Days on market Retailers Inventory
Status Report
SCHEDULE The project schedule is on track

RESOURCING Resourcing is adequate

BUDGET Project is not within budget

RISKS Most of the project risks are under control

ISSUES There are no major issues

BENEFITS Project benefits exceed the expectations

RAID Summary
RISKS ASSUMPTIONS
Despite being red, Mars is Venus has a beautiful
a cold place full of iron name, but also a
oxide dust poisonous atmosphere

ISSUES DEPENDENCIES
Jupiter is a gas giant and Neptune is the fourth-
the biggest planet in the largest planet in the Solar
Solar System System
How About This Timeline?

01 02 03

MERCURY NEPTUNE VENUS

Mercury is the Neptune is the Venus has a
smallest planet fourth-largest beautiful name
Review of Concepts

MERCURY VENUS MARS

Mercury is the closest Venus is the second planet Despite being red, Mars is
planet to the Sun from the Sun a cold place

JUPITER SATURN NEPTUNE

Jupiter is the biggest It’s composed of hydrogen Neptune is the farthest
planet of them all and helium planet from the Sun
 Where We Are
Mercury is the closest planet to the Sun and the
smallest one in the Solar System—it’s only a bit larger
than the Moon. The planet’s name has nothing to do
with the liquid metal
Where We Want to Be
Jupiter is a gas giant, the biggest planet in the Solar
System and the fourth-brightest object in the night sky.
It was named after the Roman god of the skies and
lightning
A Picture Is
Worth a
Thousand
Words
This Is an Infographic
VENUS

JUPITER NEPTUNE SATURN

Jupiter is the biggest Neptune is the farthest It’s composed of hydrogen
planet of them all planet from the Sun and helium
This Is a Map

VENUS
Venus has a
beautiful name

NEPTUNE
Neptune is the
fourth-largest
Upcoming Events
JANUARY FEBRUARY MARCH
Monday Tuesday Friday

15 20 28

MARS JUPITER SATURN

Despite being red, Mars Saturn is the ringed one.
Jupiter is a gas giant and
is actually a cold place It’s a gas giant,
also the fourth-brightest
full of composed mostly of
object in the sky
iron oxide dust hydrogen and helium
4,498,300
Big numbers catch your audience’s attention
 80%
Venus has a beautiful name
30%
Jupiter is a gas giant

87h
Mercury is the smallest planet