Rara, Kiana Joy F.

ACT186
BALOBCOX ASSIGNMENT#2

1) Lemon Joe owes Jerry Yin P8,000, while Jerry Yin owes Lemon Joe 6 sacks of rice worth almost the same
amount. Is compensation applicable?

The compensation will not be applicable, because according to the Article 1279 number (2) both debts
consist in a sum of money, or consumable things of the same kind and quality. Since money owed by Lemon
Joe and sacks of rice owed by Jerry Yin were not in the same kind and quality.

2) Coco Pemiento (third person) tells Imee Poppins (creditor) that Pemiento will pay the debt of Scary Roque
(debtor) of Php275,000. Poppins agrees. Is Roque released from the obligation to pay Poppins?

Yes, because novation can be applied. Pemiento is the one who initiated to pay for Roque’s debt, that is
why there is a substitution wherein Pemiento will be the new debtor. As stated in the Article 1294, If the
substitution is without the knowledge or against the will of the debtor, the new debtor’s insolvency or non-
fulfillment of the obligation shall not give rise to any liability on the part of the original debtor. Under the
substitution, the expromision will be practiced because the replacement of Pemiento was made at his own
initiative.