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) B is not released from his obligation to S on the ground of substitution by debtor, since there has been no consent coming from S, the creditor. In novation there must be consent from the creditor, there was no consent stated in the facts So therefore, there was no novation. Novation cannot be presumed. 2. )ARLENE AND MICHELLE entered into an agreement of agency. Arlene failed to return the rings. She was sued for estafa. She made partial payment for the amount of the rings. Is her criminal liability extinguished? - criminal liability cannot be extinguished even if there is a payment or by any mere agreement by the parties. -Contract of agency Criminal case – the plaintiff is the state. -civil obligations in obligations and contract - When we talk about obligations we are pertaining about civil obligations. - nature of relationship between ARLENE and MICHELLE is that Arlene have to return to michelle if incase Arlene will not be able to sell the rings. What can be arlene’s defense? That there was no contract of agency between them. 3.) Requisites for Legal Compensation. a.) That both the creditor and debtor are principally liable to each other. b.) That both object of compensation must be a sum of money or a thing which is of the same kind and of the same quality c.) That the debts are both due. d.) That both debts must be demandable and liquidated. e.) That it has not prejudice third person who has communicated his rights before compensation was made.

- The treasurer/stockholder owes the corporation, corporation owes the stockholder in excess of the payment of the value of share. Compensation can be made. Since there is creditor-debtor relationship. -voluntary or conventional compensation – agreement of the parties, even w/o legal compensation requisites. 4.) Payment to right persons. -creditor -successors in interest [heirs or assignees] Note: The son can only be considered as a successor in interest if Carlos is dead. - any person authorized to receive/accept payment Partial payment – creditor cannot be compelled to receive Can creditor be compelled to accept payment by check? NO. Payment should be in legal tender. Legal tender- IT IS THAT MONEY THAT OF WHICH THE DEBTOR CAN COMPEL THE CREDITOR TO RECEIVE PAYMENT TO THE EXTINGUISHMENT OF AN OBLIGATION . What constitutes legal tender? Bills and coins issued by the Central Bank of the Phil. The acceptance of the check does not amount to extinguishment of obligation. Dation in pago [ pre-existing contract - contract of loan] – is the alienation of property of the debtor in favor of the creditor, for the satisfaction of monetary debt. Debtor instead of paying the amount gives a thing. [ check is not a thing] -law on sales, a sale transaction where the debtor gives/delivers a thing and the payment made by the creditor is the value of the thing .. . 9876543210 Art. 1249. [payment of check to extinguish obligation] -When its value has been impaired while it is in the position of the creditor - payment by check if accepted will only extinguish the obligation at the time it is encashed. 5.) Defense of Compensation by guarantor. -compensation as against what the creditor owes the debtor -compensation as against what the creditor owes him the guarantor. 6.) payment made to the heirs of the creditor. PROPER PARTY. -successor in interest 7. ) D owes C , with X as guarantor. C owes X. Can D claim compensation against C for the amount C owed to X? Logically, D cannot claim compensation. D and C are not principal creditors and debtors of each other. There are two obligations here as that D to C and that C to X. 8. ) Conditional Obligation.[ My answer] -obligation does not exist since condition was not complied.

9.) The chattel mortgage problem. Syvels nga problem. Additional Condition to the obligation only. No novation only a little modification. Novation – first obligation should be extinguished. Requisites for Novation: -there is a valid contract - there is an agreement by the parties - to extinguish the existing contract -and make a New contract

We can only have an implied novation if the two obligations are incompatible to each other. 10.) Novation jpon. Incompatibility of Obligation. Extention is only a modification not a novation. 11.) Impossibility of obligation. Dangerous to one’s life in the act of complying the obligation it can already extinguish obligation. 12.) Protection of your claims against the property. It can be made by making an annotation in the title of the land in the registry of deeds. If annotated in the title who ever acquires the property subsequent to the annotation will be held liable to the mortgage. MERGER- confusion in the person of creditor and debtor. 13. )in an alternative obligation the debtor has the right to choose what consideration he would comply. - if the problem or obligation is silent then it is the debtor who can choose. ALTERNATIVE OBLIGATION- when there are two or more prestations in which the any fulfillment or delivery of the thing already creates the extinguishment of an obligation. [ the house which is broke down by fire] 14.) contract of sale where B is buyer and C as seller. Remedies of buyer in contract of sale if seller was not able to comply what is incumbent upon him. Buyer – seller RECIPROCAL OBLIGATIONS! a.) b.) Specific performance – the buyer can compel the seller to do what he is ought to do. Rescission with damages

15.) What if debtor can produce the receipt of the last installment? - then there can be a presumption that the whole obligation has already been paid. Burden of proof is on the creditor to show that it is still not paid [debt] 16. ) the tenant-collector case ; Tenant ousted by the owner for the reason that the collector failed in collecting payments. The payment must be made on the domicile of the debtor. Default exist if there was demand! CONSIGNATION- happened if there is a valid tender of payment but there is undue refusal from the creditor.