1.

Definitions:

a. Loss of a thing

- when a thing presishes or goes out of commerece or disappears in such a way that its existence is
unknown or it cannot be recovered.

b. Condonation or remission

- Is the gratuitous abandonment by the creditor of his right against the debtor.

c. Confusion

- Where the qualities of creditor and debtor are united in the same person, confusion is effected,
extinguishing the obligation. Nevertheless, in certain cases where confusion ceases to exist, the effects
cease also.

d. Merger

- Where the capacities of creditor and debtor are united in the same person, a merger is made as of
right which extinguishes both claims

e. Compensation

- The extinguishment to the concurrent amount of the debtors of two persons who, in their own right,
are debtors of two persons who, in their own right, are debtors and creditors of each other.

f. Novation

- The total or partial extinction ofa n obligation through the creation ofa new one which substitutes it.

2. Discussion

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

- Cases that when loss of a specific things will not exempt the obligor from liability is when the law so
provides; when the stipulation so provides; when the nature of the obligation requires the assumption
of risk; and when the obligation to deliver a specific thing arises from a crime.

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

- When one makes a donation in excess of that what he can give. The remedy for this is that the court
will reduce it accordingly.

c. What are the distinctions between confusion and compensation as modes for extinguishing an
obligation?
- The difference between the both is that confusion, there is only one person who is the creditor and
debtor of himself, while in compensation, there are two perosns involved. Second, is that in confusion
there is but one obligation, while in compensation, there are two. Third, is that confusion there is
impossibility of payment, while in commpensation, there is indirect payment.

d. In what way is compensation similar to payment?

- It is similar because when a debtor has various debts which are susceptible of compensation, then it
would arise the responsibility of him informing the creditor which of them shall be the object of
compensation. Then the compensation shall be applied to the most onerous obligation,

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

- In order that a compensation may be proper, it is necessary that both debts consist in a sum of money,
or if the things due are consumable. Therefore, there is no compensation when things due are not
consumable

f. In novation, give the effect where:

i. The new obligation is voidable

- When the new obligation is voidable, then novation will be possible but the moment it is anulled, the
novation must be considered as not having taken place and the original one can be enforced, unless the
intention of the parties is otherwise.

ii. The old obligation is voidable. Explain.

- If it is a voidable obligation it is valid until it is annulled in court. Or if the the obligation is

validated by execution then the novation is valid.