Exercise 3

1. How a valid payment is made to extinguish an obligation?

- In order to make a valid payment, according to Article 1232, Payment means not only
the delivery of money but also the performance, in any other manner, of an obligation.
Meaning to say that payment doesn’t only involve the giving of money to compensate for
something but also in order to give something in regards by the means of giving a thing
(generic or specific) or by the means of doing something, or not doing something.
- Also according to Article 1233, A debt shall not be understood to have been paid unless
the thing or service in which the obligation consists has been completely delivered or
rendered, as the case may be. A debt will not be considered paid if the obligation to pay
has not been completed according to the debt that was made in the first place
- For example, If A borrowed 2,000 pesos from B and promised to pay it the next day. If A
only pays 1,500 pesos to B, it is not considered a valid payment to extinguish an
obligation because A did not pay the complete debt to B.
- In Article 1234, an exemption here is that there is one substantial compliance and good
faith.

2. X is indebted to Y for Php1,000.00. X then alienated to Y his brand new bag as

payment. Will this alienation immediately takes effect of payment?

- According to Article 1245, under this is a a special type of payment which is called
Daccion en pago (dation in payment) Whereby a single property is alienated to the
creditor in satisfaction of a debt in money. This is governed by the law of sales.
- In this case it is said here in this case that X alienated his brand new bag as a mode of
discharging or extinguishing his obligation instead of the 1,000 pesos. (but of course
must have the consent of Y to accept this to cover for the full satisfaction of the
obligation. Then the alienation here will immediately take effect the moment that it is
accepted by the creditor which is Y. But if there is no consent or agreement with Y, then
the alienation cannot immediately take effect.

3. X obliges himself to give Y a particular car on January 5, 2020. However, the said car
was totally wrecked in an accident involving X on January 2, 2020. What is the
implication of the total loss of the car as to the obligation of X?

- According to article 1262, 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. When by law or stipulation, the obligor is
liable even for fortuitous events, the loss of the thing does not extinguish the obligation,
 and he shall be responsible for damages. The same rule applies when the nature of
the obligation requires the assumption of risk.
- In this case. It is seen that the said car was totally wrecked in an accident INVOLVING X
on January 2, 2020 before the delivery happened. Despite the accident, X must be able
to take care of the object with the diligence of a good father of a family (article 1163) and
is still liable for the damages because it X knows that there might be the possible RISK
of an accident. With the total loss of the car by negligence must be liable for damages
(Article 1170)

4. X is indebted to Y for Php1 Million. Y, being a good friend, informed X that he is

condoning the debt of X. Will this unilateral offer of condonation of Y immediately result
in the extinguishment of obligation of X?

- According to article 1270, Condonation or remission is essentially gratuitous, and

requires the acceptance by the obligor. It may be made expressly or impliedly. One and
the other kind shall be subject to the rules which govern inofficious donations. Express
condonation shall, furthermore, comply with the forms of donation.
- In the unilateral offer of X, Y must be accepting the condonation of X in order for it to
take effect. It will not be immediate because there is no accepting in the part of Y. X only
informed Y of the condonation but in this case it did not show that Y had any response to
the offer of X.

5. Is death a mode of extinguishing obligation?

- According to article 1231 in relation to article 1311, a death may be possible of

extinguishing obligation if there has been a death to a party which requires personal
service.
- According to article 1311, death does not extinguish the obligation but transferred to the
heirs and assigns because generally the rights and obligations are transmissible to
them. Except in case where the rights and obligations arising from the contract are not
transmissible by their nature, or by stipulation or by provision of law. So there are
possibilities that an obligation may not be transmissible to the heir,
- An example for if an obligation is transmissible would be, if X owes 10,000 pesos to Y,
then X dies, his daugher/son has the obligation to pay Y but not beyond the value of the
property that she inherited from X.