1. Differentiate Payment by Cession to Dation in Payment.

 *
The difference of Payment by Cession to Dation in payment, the Payment by Cession
is the abandonment by the debtor of all his properties for the benefit of the creditors,
so that, from their proceeds, the latter may obtain satisfaction of their credits. The
cession of property made by the debtor must be voluntary.,while the Dation in
Payment is when the debtor will deliver to the creditor a different thing where the latter
accepts it as an equivalent of the performance of the obligation.
2. Enumerate the essential elements of Legal Compensation. *
The following are the essential elements of legal compensation: 1) Each of the
debtors and creditors are bound principally to each other. 2) That both debts
are of the same consumable (fungible things). 3) That the debts are due. 4)
That the debts are due and demandable. 5) That neither of the debts are
subject to any case or controversy or has been ordered to be retained by the
court.

3. A owes B P200,000.00. A does not have the money to pay B, so he asked C,

his brother, to pay for the loan instead. Is the agreement between A and C valid
as against B? Explain your answer fully. *
Yes, it’s valid because A made an agreement with C which is his brother to pay the
money that he owes to B and a person may have the right to make payment.

4. A owes B P 1,000,000.00 by way of loan, P 2,000,000.00 for a car he bought

from the, and P500,000.00 for unpaid medical services. At this date, A only has
properties amounting to P3,000,000.00. All debts are due and demandable at
this date. If A pays B the whole P3,000,000.00, how will payment be applied to
the debts? Explain your answer fully. *
It’s in line of the burdensome for the payment of Php. 3,000,000.00. In this case the
car is secured and loan is in line to interest so it’s more burdensome. The payment of
Php. 3,000,000.00 must be applied first to the loan cost Php. 1,000,000.00 and to the
car that cost Php. 2,000,000.00.

5. A owes B P500,000.00 due on March 10, 2020, however, when A tried to pay
B, the latter cannot be located. A is afraid that he may accidentally spend the
money that he will use to pay B. What can A do to relieve himself from the
obligation? Explain your answer fully. *
A can tender the money, that will offer the creditors payment and consign it for him to
relieve himself form obligation in order for the debtor must deposit it in the court. In
order to constitute the payment, there should be a tender and consignation.

6. A owes B P150,000.00 secured by C, B’s sister, as guarantor. A and C fell in love and
subsequently got married. B is now demanding payment from A. A argues that he no
longer has to pay B, because when C and him got married the obligation was already
extinguished by way of confusion or merger of the personalities of the debtor. Is A
correct? Explain your answer fully. *
No, because in Confusion or merger of rights may be defined as the ground of extinguishment
of the obligation which takes place from the time the personalities of the principal debtor and
the principal creditor are merged into one entity. In the Article 1276 the obligation is
extinguished if the merger or confusion takes place in the person of the principal of the debtor
or creditor. However, if the confusion involves any guarantor there is no extinguishment of the
principal obligation.

7. B owes A P400,000.00. A stated N if he dies before B pays, then B no longer

has to pay for the obligation. Upon the death of A, the debt remains to be
unpaid. Is the condonation of the debt valid? Explain your answer fully. *
Yes, condonation is valid in this case. In kinds of condonation as to its date of
effectivity under Mortis Causa which is takes effect after the death of the donor,
that is made by A, it may happen the will upon the death of creditor.

8. A bought a painting made by the painter Ben Cab. Before Ben Cab could
deliver the painting to A, an earthquake occurred which caused Ben Cab’s
studio where the painting was stored to collapse. What are the liabilities if Ben
Cab if any? Explain your answer fully. *
In this case Ben Cab don’t have any liabilities to A, and the obligation is extinguished
because the loss of the painting that is determinate thing which was caused by
fortuitous events. In the Article 1262, it stated that an obligation which consists in the
delivery of a determinate thing shall be extinguished if it should be lost or destroyed
without the fault of the debtor, and before he has incurred in delay.

9. What are the kinds of novation? Explain each briefly. *

Kinds of Novation are as follows: As to Subject, 1) Real it is the change of object or principal
conditions., 2) Personal it’s the substituting the person of the debtor., 3) Mixed is the change of
objects and parties., As to Constitution, 1) Express it’s the express of new obligation declares
unequivocal that old obligation extinguished., 2) Implied is the incompatibility of two
obligations., As to Extent or Effect, 1) Total or Extinctive its’s the old obligation is totally
extinquished., 2) Partial or Modificatory it’s imperfect or improper., and As to Origin, 1) Legal
that is takes place by operation., 2) Conventional that is takes place by stipulation of the parties.