MODULE I-WEEK 3

CHAPTER 4-EXTINGUISHMENT OF OBLIGATIONS

SECTION 1-Confusion or Merger of Rights
Article 1275-1277

Mindanao State University-Iligan Institute

of Technology
Class: HTM108

Topic: Law on Obligations and Contracts

CHAPTER 4- EXTINGUISHMENT OF OBLIGATIONS

General Provisions Article 1231
SECTION 1 Payment or Performance Articles 1232-1251
SUBSECTION 1. Application of Payments Article 1252-1254
SUBSECTION 2. Payment by Cession Article 1255
SUBSECTION 3. Tender of Payment and Consignation Article 1256-1261
SECTION 2 Loss of the Thing Due Article 1262- 1269
SECTION 3 Condonation or Remission of the Debt Article 1270-1274
SECTION 4 Confusion or Merger of Rights Article 1275-1277
SECTION 5 Compensation Article 1278-1290
SECTION 6 Novation Article 1291-1304
II.Learning Objectives
At the end of the Chapter, the student should be able to:

1. Master the different modes of extinguishing obligations, as well as the respective requisites;

2. Understand their effects and consequences on the rights of the debtor.

SECTION 4. - Confusion or Merger of Rights

Art. 1275. The obligation is extinguished from the time the characters of creditor and debtor are merged in
the same person. (1192a)

CONFUSION is the meeting in one person of the qualities of creditor and debtor with respect to the same
obligation. (4Sanchez Roman 421)
Requisites of A Valid Confusion
1. The merger of the qualities of creditor and debtor must be in the same person;
2. It must take place in the person of either the principal debtor and principal creditor; and
3. It must be complete, clear and definite; and
4. The very obligation must be the same.

Ex. LACY issued a promissory note for P10, 000 in favor of EMERALD payable 30 days after sight. Before
the maturity of the note, EMERALD indorsed it to RAYA; RAYA indorsed it to JUSTIN; JUSTIN indorsed it to
LACY. The obligation of LACY to EMERALD is extinguished because there is here a merger of the qualities
of the debtor and creditor in one and the same person with respect to one and the same obligation cannot
 demand and collect payment from himself.

Art. 1276. Merger which takes place in the person of the principal debtor or creditor benefits the
guarantors. Confusion which takes place in the person of any of the latter does not extinguish the
obligation. (1193)

Effect of Merger
This article reiterates the principles established in Articles 1176, 1274, NCC, that accessory follows the principal.

The extinguishment of the principal obligation extinguishes the accessory obligation; but the extinguishment of the
accessory does not extinguish the principal obligation

Ex. RYAN obtains P10, 000 loans from LEXXY which loan was guaranteed by RHONA. Later,
LEXXY assigned the credit to TRAIN, who in turn assigned it to RYAN. The principal debt is
extinguished and RHONA is released from his obligation as guarantor.
If, in this same example, the credit was assigned by LEXXY to TRAIN and TRAIN to RHONA. The
contract of guaranty is extinguished but the principal obligations remains. RYAN has now the
obligation to pay RHONA.

Art. 1277. Confusion does not extinguish a joint obligation except as regards the share corresponding to the
creditor or debtor in whom the two characters concur. (1194)

Effect of Merger in Joint Obligation

In a joint obligation, the debts are distinct and separate from each other. In case there is merger in a joint
obligation, it affects only the share corresponding to the creditor or debtor in whom the two characters concur.
The co-debtor will not owe his corresponding share to this former joint co-debtor.

Ex. JACKSON, SKYLER and TOFFER are jointly indebted to LANDER in the amount of P15, 000. LANDER
assigns his credit to TRAIN who in turn assigned it to JACKSON. There is here a merger between
JACKSON and LANDER but SKYLER and TOFFER would now owe JACKSON P5, 000 each.

1. Cabulay, D. and Carpio, C. (2014). Philippine Tourism Laws, (2nd ed.). Philippines. Rex Bookstore, Inc
2. Javier, Nancy Joan M.,(2012).Tourism Laws, 3rd ed.Philippines. Central Bookstore
3. Soriano, Fidelito R.(2011).Obligations and Contracts.GIC Enterprises
4. www.lawphil.net
5. www.supremecourt.gov.ph