MODULE XI

CONDONATION OR REMISSION OF DEBT

(Arts. 1270 – 1274)

CONDONATION OR REMISSION, CONCEPT

Condonation or remission is the gratuitous abandonment by the creditor
of his right against the debtor. In plain language, this refers to the forgiveness
of an indebtedness. To extinguish the obligation, it requires the debtor's
consent (Art. 1270).
Example:
D owes C P3,000.00. The debt is evidenced by a promissory note. C
informs D that he will no longer collect the debt and delivers the promissory
note to D. D accepts C’s generosity. D's obligation is extinguished by
condonation or remission.

REQUISITES OF CONDONATION OR REMISSION

1. It must be gratuitous;
2. It must be accepted by the obligor;
3. The parties must have capacity;
4. It must not be inofficious; and
5. If made expressly, it must comply with the forms of donations.

KINDS OF CONDONATION OR REMISSION

1. As to amount or extent
A. Total - When the total obligation (both principal and accessory
obligations) is remitted.
B. Partial - When only a part of the obligation, or only the
accessory obligation is remitted.
 2. As to form
A. Express - One made orally or in writing. It must, to be valid,
comply with the formalities of donation as follows:
i. When the remission involves an immovable property, the
remission and the acceptance must be in a public instrument. The
public document must specify the remitted and the value of the
charges that the debtor (donee) must satisfy (Art. 749).
ii. When the remission involves a movable/personal property
a. If the value of the property exceeds P5,000.00, the
remission and the acceptance must be in writing
(public or private).
b. If the value of the property is P5,000.00 or less, the
remission and the acceptance may be in any form,
i.e., oral or in writing (public or private). The
remission, however, if made orally, requires the
simultaneous delivery of the thing or the document
representing the right remitted (Art. 748).
B. Implied - One inferred from the conduct of the parties, such as
when the creditor voluntarily delivers the private document evidencing
the credit to the debtor (Art. 1271).

EFFECT OF INOFFICIOUS REMISSION

While a person may make donations, no one can give more than that
which he can give by will; otherwise, the excess shall be inofficious and shall
be reduced by the court accordingly.

PRESUMPTION WHEN PRIVATE DOCUMENT EVIDENCING DEBT IS FOUND

IN THE POSSESSION OF THE DEBTOR
When the private document evidencing the debt is found in the
possession of the debtor, the same is presumed the have been delivered
voluntarily by the creditor to the debtor (so us to remit the obligation) unless
the contrary is proved (Art. 1272). Thus, there is no such presumption if the
document is a public document which is easily available being a public record.
ILLUSTRATIONS:
D owes C P1,000 evidenced by a promissory note. The note, signed by D,
is given to C.
If the promissory note is voluntarily delivered to D, the presumption is
that the debt must have been paid by D. There is the presumption of payment.
If it is known that D has not yet paid C, it must be presumed that the
obligation has been remitted by C. There is the presumption of remission.
Suppose it is not known how D came into possession of the promissory
note. The presumption is that it was voluntarily delivered by C, unless C proves
the contrary. There is the presumption of voluntary delivery.

PRESUMPTION WHEN THING PLEDGED AFTER ITS DELIVERY TO THE

CREDITOR IS FOUND IN THE POSSESSION OF THE DEBTOR OR OF A
THIRD PERSON WHO OWNS THE THING
When the thing pledged after its delivery to the creditor is found in the
possession of the debtor, the accessory obligation of pledge is presumed
remitted but not the principal obligation (Art. 1274).
EXAMPLE:
D delivers to C his diamond ring in pledge to guarantee the payment of a
loan. If later on the ring is found in the possession of D, the presumption is
that C agreed to the loan without the pledge.
C may prove that he returned the ring to D upon the latter’s request to
be delivered back to him.

EFFECT OF REMISSION / RENUNCIATION OF PRINCIPAL OBLIGATION ON

THE ACCESSORY OBLIGATION AND VICE-VERSA
1. The remission of the principal debt extinguishes the accessory
obligation (based on the accessory follows the principal rule).
2. The remission of the accessory obligation does not carry with it that of
the principal debt (Art. 1273).
EXAMPLE:
 D owes C P1,000 with G as guarantor. The principal debt here is the
P1,000, while the accessory obligation is the guaranty of G.
The remission of the debt of D by C shall extinguish the guaranty of G.
But if only the guaranty of G is condoned, the obligation of D shall remain in
force.