Discussions

1. May an obligor recover although there has been no strict and complete fulfillment by him of his
obligation?

 Yes, the obligor may recover although there has been no strict and complete fulfillment by him
of his obligation and according to Article 1234 if the obligation has been substantially
performed by the obligor in good faith.

2. What must be delivered when the obligation consists of:

a. the delivery of a specific thing?

 In the delivery of a specific thing the debtor of a thing cannot compel the creditor to receive a
different one, real obligation to deliver a specific thing a thing different from that due cannot be
offered or demanded against the will of the creditor or debtor. As of to personal(negative or
positive) obligations the act to be performed or the act prohibited cannot be substituted against
the obligee’s will.

b. a delivery of a generic thing?

 In delivery of generic thing, substation is allowed whereby property is alienated to the creditor is
satisfaction of a debt in money, shall be governed by the law of sales.

3. When is partial performance of an obligation allowed?

a. When there is an express stipulation to that effect

b. When the debt is in part liquidated (definitely and determined or computed) and in part
unliquidated
c. When the different prestations in which the obligation consists are subject to different terms or
conditions which affect some of them. In obligations which comprehend several distinct
prestations, it is evident that the prestations need to be executed simultaneously but each
successive execution thereof must be complete.

4. What must a debtor do to be released from his obligation if the creditor refuses to accept payment
without any justifiable reason?

 If the creditor refuses to accept payment without any justifiable reason, the debtor can be
released from his obligation by the consignation of the thing.

5. Give the requisites of payment by cession. What rights are acquired by the creditor in this form of
payment as distinguished from dation on payment?

The requisites of payment by cession:

 There must be 2 or more creditors

 The debtor must be or partially insolvent
 The assignment must be involve all the properties of the debtor
 The cession must be accepted by the debtors
- In payment by cession, the creditor only acquires the right to sell the thing and apply the
proceeds to their credits proportionately while in dation of payment the creditor becomes the
owner of the thing given by the debtor.
Discussions

1. Give two cases when a person may be released from an obligation validly entered into.

- First case in Article 1266 where a person can be released from his obligation when the
prestation becomes legally or physically impossible without the fault of the obligor,
Example Arman a potter he is obliged to make small pots to Ana for giveaways for her
wedding but a week after Arman is one of the victim of booming in their area which
cause to cut his left arm In that he is released from his obligation because it is physically
impossible to make a pot with one arm
- Second, According to Article 1267, the obligor may also be released from his obligation
when the service has become so difficult as to be manifestly beyond the contemplation of
the parties example DMD a construction company will delivered a construction supply in
a mountain area in Cebu but an earthquake hit the province and a sinkhole rise on the
highway going to that mountain are therefore the DMD is released from his obligation
because it is impossible to pass by a sinkhole.

2. Give the cases when loss of the specific thing to be delivered will not exempt the obligor from
liability even in the absence of fault or delay.

 The cases when loss of the specific thing to be delivered will not exempt the obligor
from liability even in the absence of fault or delay are?
- when the law so provides
- when the stipulation so provides
- when the nature of the obligation requires the assumption of risk
- when the obligation to deliver a specific thing arises from a crime.

3. Will partial loss of the specific thing to be delivered extinguish the obligation? Explain

 According to Article 1264, the courts shall determine whether the circumstances, the
partial loss of the object of the obligation is so important as to extinguish the obligation.
If there is a partial loss when only a portion of the thing is lost or destroy or when it
suffers from depreciation. In case of partial loss the court will decide. \
Discussions

1. Give the requisites in order that a condition or remission of debt may be valid.

 The requisites are:

it must be gratuitous
it must be accepted by the obligor
the parties must have capacity
it must not be inofficious and
if made expressly, it must comply with the forms of donations.

2. When is the condonation or remission of debt considered inofficious? What is the remedy of
the party adversely affected thereby?

 Remission of debt is considered inofficious if he give more than he can give by will and
it shall be reduced by the court accordingly. The remedy of the part adversely affected
thereby shall be reduced by courts.
Discussion

1. What is the rationale behind confusion or merger as a mode of extinguishing an obligation?

 According to Article 1275 if the obligation is extinguished from the time the characters
of creditor and debtor are merged in the same person. It is extinguished because if the
debtor is his own creditor the enforcement of the obligation becomes absurd since a
person cannot claim payment from himself.

2. Give the requisites for a valid confusion or merger to take place

 The requisites for a valid confusion merger to take place are:

- it must take place between the principal debt and creditor
- it must be complete

3. Give the effect or merger when it takes place.

a. in the person of the principal debtor or creditor.

- According to Article 1276, if a merger in the person of the principal debtor or creditor
extinguishes the obligation. The accessory obligation of guaranty is also extinguished in
accordance with the principle that the accessory follows the principle.
b. in the person of the guarantor of the principal obligation.
-According to Article 1276, the effect of merger in the person of guarantor the
extinguishment of the accessory obligation does not carry with it that of the principal
obligation. Consequently, merger, which takes place in the person of the guarantor, while
it extinguishes the guaranty, leaves the principal obligation in force.
Discussions

1. What are the distinctions between confusion and compensation as modes for extinguishing an
obligation?

 The distinctions between confusion and compensation according Article 1278 are:
First in confusion there is only one person who is creditor and debtor of himself, while in
compensation there are two persons involved , each of whom is a debtor and a creditor of
other. Then, in confusion there is one obligation on the other hand in compensation,
there is indirect payment. Lastly, in confusion there is impossibility of payment while in
compensation, there is indirect payment.

2. In what way is compensation similar to payment?

compensation is similar to
payment in a way due to
the fact that application of
payments can be applied to
compensation.
 Compensation is similar to payment in a way due to the fact that application of payments
shall apply to the order of the compensation.

3. May there be compensation although the things due are not consumable? Explain

 No, because according to Article 1279, paragraph 2, compensation will take place if both
consists of sum of money or if the things due are consumable, they be of the same kind
and also the same quality.

4. When may compensation take place when only one of the debts is due?

 According to Article 1279, the compensation will not take place when the debtsare not
due on the same date.
Discussions

1. Give the requisites of novation.

 The requisites of novation are:

A previous valid obligation
Capacity and intention of the parties to modify or extinguish the obligation
The modification or extinguishment of the obligation
the creation of a new valid obligation

2. When there is subrogation, what rights are acquired by the new creditor?

 According to Article 1303, All the rights and action are transferred to the new creditor
that could have been exercised by the former creditor either against the debtor or against
third person, be they guarantors or mortgagors.

3. In novation, give the effect where:

a. the new obligation is voidable;

- According to Article 1297, if the new obligation is only voidable, novation can take
place. But the moment it is annulled, the novation must be considered as not having
taken place and the original once can be enforced unless the intention of the parties is
otherwise
b. the old obligation is voidable, explain
- if the old obligation is voidable, the novation cannot take place because there is nothing
to novate. However, if the original obligation is only voidable or if the voidable
obligation is validated by ratification, the novation is valid

4. In novation , are accessory obligation necessarily extinguished? Explain

 No, because it is stated in Article 1296, when the principal obligation is extinguished
inconsequence of a novation, accessory obligations may subsist only insofar as they may
benefit third persons who did not give their consent. But if a third person is affected by
the accessory in the original obligation, it will not be extinguished without his consent