NO KURYENTE, NO BATTERY SA iPAD NOTES

FRAMEWORK
1. 1236-1252 he thinks daw -> PAYMENT
1. concepts
2. fundamentals
2. SPECIAL FORMS OF PAYMENT (1245-1261)
3. APPLICATION OF PAYMENT (1252-1254)

PAYMENT
1232 - performance
● legal sense - performance of the obligation; not limited to money
○ see: 1156 - to give, to do, or not to do
essential requisites (guide: who makes, who receives, what is payment where,
when, how do you pay,)
● paid by the debtor (who makes)
● paid to the creditor (to whom)
● must correspond to the prestation
○ all other circumstances surrounding the prestation, depends on the
agreements/stipulations of the parties must also correspond to the
requisites
Debtor
1. Art 37-39: juridical capacity/capacity to act -> there is a legal effect
(extinguishment)
1. you can do things with legal effects
2. capacity to alienate - capacity to transfer ownership
○ Capacity to alienate means that the person is not incapacitated to enter
into contracts and for that matter, to make a disposition of the thing due.
○ “sayo yan, you can dispose it”
○ INTERNAL
3. free disposal of the thing - no liens, claims or encumbrance (e.g. title has a
mortgage)
○ Free disposal of the thing due means that the thing to be delivered must
not be subject to any claim or lien or encumbrance of a third person (e.g.
mortgage, pledge)
○ nature of transfer of ownership -> ATTENDED BY GOOD FAITH
◆ take note of the special rules to be discussed; this is only the general
rule
○ EXTERNAL
Do the three always concur?
● capacity to act only - legal age
 ● you have capacity to act but no capacity to dispose - insolvency

1239 doesn’t specify if it’s void or voidable; depends on the SC daw??? (JDS,
2020)

GR: no acts with legal effects

XPN: 1427 - When a minor 18-21 entered into a contract without the consent of
the parent or guardian, voluntarily pays a sum of money or delivers a fungible
thing in fulfillment of an obligation, there shall be no right to recover the same
from the oblige who has spent or consumed it in good faith.
● 1427 was IMPLIEDLY REPEALED by emancipation law; lowered to 18.

Is it only the debtor who can make a valid basis?

NO. Check 1236, 1238
● guarantors (subsidiary obligation anchored on debtor’s primary obligation)
● surety (subsidiary obligation anchored on debtor’s primary obligation)
● authorized agent (1868)
● successors in interest

Not a party, with interest (as in Good Samaritan)

1156, 1423 - Creditor is only interested in the fulfillment of the obligation
● Does the third person want to charge the payment against the debtor?
○ If he wants to, shit goes downhill from there. Would you run that risk??
● When can you validly make a payment
○ That payment is such payment that can make/compel the creditor as valid
◆ GR: Only the payment by the debtor may be accepted by the Creditor

● Is the creditor compelled to accept the payment by the third person?

○ Is there interest [YES if there’s interest]
◆ When can the third person compel to pay the debtor?
◆ Third person must interest (damages, interest, rights) -> DO YOU
HAVE AN INTEREST IN THAT OBLIGATION
◆ rights emanate from the debtor
◆ connect with Consti: When you have legal standing
◆ Why would a guarantor pay right away? -> AVOID INTEREST
◆ May the surety and guarantor pay without the creditor coming
after them? [YES]
◆ in performing the obli, may the guarantor/surety have the right
to reimburse?
◆ If you don’t have interest (as in pa-Good Samaritan without any
interest), what’s the rule?
◆ Third party cannot compel the creditor to pay, so there is no
valid payment. No mora accipiendi
 ◆ Creditor accepts - novation -> SUBROGATION
○ Is there a stipulation?
◆ Creditor may still be compelled even if no interest

● Is the third person seeking reimbursement from the debtor?

○ What if he intends to reimburse
◆ Depends if the debtor consented
◆ Consents - debtor must reimburse in full
◆ No knowledge/against the will - debtor reimburses only as to the
amount that he benefits lang (beneficial reimbursement)
◆ arises out of equity. may it be a complete defense? [NO]
◆ Debtor raises the defense against right to reimbursement
(why is there a defense? he doesn’t know eh)
◆ complete defense - could not have been beneficial
because unaware or against his will of the debtor
◆ partial defense - the debtor was able to benefit as to
the amount
○ What if he does not want to be reimbursed
◆ Cannot be reimbursed since it is in the nature of the donation
◆ Issue with Art. 725 - consent of the debtor
◆ kapag may utang ka there is no way for that utang to be extinguished
in thin air. ang utang ay laging may nagbabayad (either ibang tao or a
loan or an obligation is paid by the creditor himself if condonation cos
forgiveness)
◆ (ok carried away na si sir sa condonation)
◆ Condonation the creditor nagwala ng 1M, walang pambayad si
debtor
◆ Is it in condonation na maglabas siya kay debtor ng 1M?
◆ waiver of right to enforce the claim agains the debtor
◆ payment - absorb by creditor/fulfillment by third person
◆ condonation - absorb by the creditor himself
◆ insert hugot. basta the point is that there will
always be a person who will absorb the effects of
the obligation
◆ How do you know if it’s accepted?
◆ Formalities of the contract of donation (depends if movable or
immovable)

◆ “Acceptance” (ok pang-midterms nalang yan HAHA FUCK

NAMAN PO)
◆ 1236 - reimbursement
◆ 1237 subrogation
◆ 1238 in rel. 725 - third person does not want to be reimbursed
 ◆ in rel. 734 perfected if third person knows of the
acceptance of the debtor
◆ Absent to the acceptance, what happens?
◆ payment would still be valid as to the creditor.
extinguished as to the creditor
◆ all three need awareness, consent, acceptance

● Who receives payment?

○ GR: Creditor or his successor in interest, or any person authorized to
receive it (1240)
◆ see: 1178 (rights are transmissible)
○ Requisites
◆ Capacity to act
◆ Art. 1241 - incapacitated
◆ valid if
◆ kept the thing
◆ benefit
◆ capacity to administer the property
◆ “administer property” - right to use the property
◆ can an incapacitated creditor that will make such payment valid?
◆ incapacitated person kept the thing
◆ Why is the keeping of the thing valid?
◆ Can still be used by the legal representative of the
incapacitated person
◆ Can you pay to the third party?
◆ GR: Not valid
◆ Payment to a third person is valid only insofar as it
has redounded to the benefit of the creditor. As a
general rule, there must be conclusive proof of the
benefit to the creditor
◆ acquires the rights the credtior’s right (creditor
either acknowledges/transfer)
◆ ratifies the payment to the third person (creditor
either acknowledges/transfer)
◆ If by the creditor’s conduct the debtor has been
led to believe that the third person had to
authority to receive the payment (kasalanan ni
creditor)
◆ 1241: No possession of credit
◆ 1242: Payment made in good faith to any person in
possession of the credit shall release the debtor.
◆ Who is the possessor of the credit?
◆ The one who appears to be the creditor (e.g.
 ◆
possession of a check)
◆ can’t invoke good faith because it’s clear
on the face of the value that the payor
must be paid
◆ [Negotin: bearer, order)
◆ Good faith + evidence
◆ “possessor of credit” - person who appears
to be the creditor
◆ “possession of the evidence of credit” - he
has the evidence that he is the creditor

● Where should the payment be made? (1251)

○ e.g. delivery ng jaguar HAHAH
◆ Sabi mo gusto mo sa bahay - sa bahay
◆ No stipulation - go to the dealer (where the thing was)
○ Domicile - “habitual residence”
◆ bad faith - new domicile; additional expenses

● When is payment made?

○ When the payment becomes due.
○ Why not demandable? (dont tell me isasama to sa creditor???)
◆ Looks at the POV of the debtor; debtor has the duty to perform the
obligation
◆ “juridical necessity” - POV of the debtor only; if you don’t pay, there’s
a threat of sanctions
○ When do you pay?
◆ Ordinary obligation pero sarado yung bank? -> YES LOL because
that’s the due date
◆ XPN: Nego: Next following business day
◆ Order that says don’t pay the creditor yet
◆ NO. Court order takes precedence but if you want to avoid
interest, consign it to the court.
◆ paid na because consignation is a form of valid payment

NEXT WEEK
● What constitutes payment
● How do you pay
● If may time pa, special forms (dacion, cession, consignation)