EXTINGUISHMENT OF OBLIGATIONS

Layman’s Terms – End of obligations/Death of

Obligations/Cessation of
Obligations

Mnemonics
Art. 1231 - PaLoRMeCoNoFRAP

1. Arts. 1232-1261
Pa-Payment – means: (1) the delivery of money-Art. 1232; and
(2) the performance in any other manner of an
obligation-Arts. 1232/1233/1234

Persons who may pay the obligation:

a. debtor himself or his legal representative – Arts.
1242/1236 2nd par/1239/1448/1247/1246
b. any 3rd person – Arts.. 1237/1236 2nd par/1238

Persons bound to accept payment:

a. the creditor himself – Arts. 1240/1241 1st
par/1235/1236 1 st
par/1243/1244/1248/1246
b. his successor/s-in-interest
c. his assigns – Art. 1242
d. any person authorized to receive/accept the obligation
– Art. 1240/1241 2nd par

Rules on Forms of Payment

a. Payment in cash-currency stipulated/legal tender in
RP (see also Art. 1177)
b. Payment in check or other negotiable instruments
c. Special Forms

1. Application of payment- priority in payment –

Arts. 1252-54
2. Dacion en pago (payment in property)- Art.
1245 (see also Art. 1177)
3. Payment by cession- Art. 1255
4. Tender of payment (to the person authorized to
accept) AND consignation (judicial-in a
competent court)- Arts. 1256-61
5. Art. 1176
2. Arts. 1262-69
Lo-Loss –Definition of Legal Loss
Art. 1189 (2) – It is understood that the thing is
lost when it: (1) perishes; or (2) goes out of commerce; or
(3) disappears in such a way that its existence is
unknown or it cannot be recovered

Kinds:

Complete/Total loss
Partial loss – Art. 1264

Rules:
1. In determinate obligations to give

GR – Obligation is extinguished – Art. 1262 1st

par
Exceptions –OBLIGATION IS NOT
EXTINGUISHED
Menmonics - SLN si FM D 2
(SumaLangitNawa si Ferdinand Marcos D 2)

S – stipulation-liable for FE – Art. 2652 1st par

L - Law-liable for FE – Art. 1262 1st par
N - Nature of obligation requires assumption of
risk-Art. 1262 2nd par
F - Fault (partly) of the Dr – Art. 1265
M-debtor is in Mora – Art. 1262 1st par/Art.
1165 3rd par
D-thing proceeds from delict – Art. 1269
2- Dr promised to deliver same thing to 2 or
more persons with different interests – Art.
1165
rd
3 par

2. In Generic Obligations to Give

GR – Obligation is NOT extinguished under the

principle “GENUS NUNQUAM PERUIT” –
generic thing does not perish – Art. 1263

Ex- Limited Generic Obligations

 3. Obligations to Do

GR – Obligation IS extinguished WHEN

PRESTATION BECOMES
LEGALLY/PHYSICALLY IMPOSSIBLE –
Arts. 1266/1267

3. Arts. 1270-74
R- Remission
Layman’s Term – Forgiveness of debt/
Condonation/Renunciation

Requisites: (GAD) – Art. 1270

1. gratuitous- free
2. acceptance by debtor
3. demandable obligation

Kinds:
Expressed – Art. 1270 2nd par
Implied – Arts. 1271/1272

4. Arts. 1275-77
Me-Merger/Confusion
Layman’s Term – Fusion (characters of Dr and CR are fused in
one person)/Mixed Personality (the former Dr
is now the present Cr at the same time) – Art.
1275
5. Arts. 1278-1290
Co-Compensation
Layman’s Term – “Quits”/ Set-off/ “AMANOS” – Arts.
1278/1286/1290

Requisites: (PriMo DuLiR) – Art. 1279

1. Pri-both are principally bound

2. Mo-sum of money (also Art. 1281)
3. Du- both debts are due (also Art. 1282)
4. Li- both debts are liquidated and demandable
5. R-No retention or controversy commenced by 3 rd
persons (also Arts. 1283/1284)

Debts Not Subject to Compensation (GoDS CoDe)

Go – obligations in favor of government like taxes -
NIRC
D – debts arising from delicts – Art. 1288
S – claims for support by gratuitous title- Art. 1287 2nd
par
Co- debts arising from contract of commodatum
(borrowing) – Art. 1287
De- debts arising from deposit – Art. 1287 1st par

Kinds: (Art. 1281)

Total vs. Partial

Art. 1289
6. Arts. 1291-1304
No-Novation
Layman’s Term – Substitution/Modification/Change – Arts.

1291/1292/1296/1297/1298/1299

Forms of Change/Modification

1. Changing the prestation/principal conditions

2. Substitution of the Dr – (always with consent of Cr)

a. EXPROMISSION –Art. 1293

– initiative for change does not come from the
old/orig dr and may be made without his
knowledge
-since a 3rd person/new debtor would substitute
for the orig/old debtor and assume the
obligations of the latter
-2 CONSENTS-NEW DR AND CR
(see also Arts. 1294/1295)
-E2 (mnemonics)

b. DELEGACION – substitution of the old/orig

dr (DELEGANTE) with a new dr (DELEGADO)
-OLD/ORIG DR offers the substitution to CR
(DELEGATORIO), and the latter accepts the 3 RD
PAX/NEW DR who consents to the
substitution/delegation and assumes obligation of
OLD/ORIG DR
- 3 CONSENTS-OLD DR, NEW DR AND CR
-D3 (mnemonics)

3. SUBROGACION – Art. 1300 – subrogation (the 3rd

person/NEW CR will step into the shoes of the OLD
CR and assumes the obligations of the latter – see also
Art. 1303

a. Legal Subrogation – expressly provided by

Civil Code – Art. 1302
b. Conventional Subrogation- as expressly
stipulated – Art.1301
-3 CONSENTS-DR AND OLD CR AND
NEW CR
7. F – Fulfillment of Resolutory Condition – refer to Module on Kinds
of Obligations-Conditional
Obligations)

8. R- Rescission – refer to rescissible contracts – Art. 1191 (discussed

in Law on
Contracts

9. A – Annulment – refer to voidable contracts – discussed in Law on

Contracts

10. Arts. 1106-1155

P-Prescription
Layman’s Term – “Nagpaso”/ nawala “sa tagal ng panahon”
-LOST BY PASSAGE OF TIME/
-TIME HAS ELAPSED/EXPIRED

Art. 1106 – One acquires ownership and other legal rights

through the lapse of time in the manner and under the
conditions laid down by law.

NOTE: INCLUDE: Arts. 1178/1192

“AS LONG AS WE KEEP ON SEEKING,

THERE ARE NEW WORLDS TO BE
FOUND!”

Prepared by:

ATTY. GENE B. CALONGE

Assistant Professor