QUIZ FOR OCTOBER 28, 2022

I. Write true if the statement is accurate. If the statement is false , cite the reason/s .

1. Payment does not signify the effective performance of the agreed prestation.
2. One of the essential elements of payment as a mode of extinguishing obligation is
integrity, that is, the payment can either be partial or full.
3. As a rule, the creditor can be compelled to accept partial payment.
4. By way of exceptions, the creditor can be compelled to accept, and the debtor can be
required to make partial performance even there is no stipulation to that effect.
5. An obligation is extinguished by way of payment only when the thing or service in which
the obligation consists has been completely delivered or rendered and the rule admits no
exceptions.
6. The obligation is deemed extinguished under the principle of substantial performance
when the obligation has been substantially performed and the debtor performed the
obligation in good faith.
7. In order that the obligation be considered substantially performed in good faith, there
must have been an honest attempt to perform, without any willful or intentional departure
therefrom.
8. Under the principle of substantial compliance, the debtor is completely released from the
obligation despite his failure to completely perform the obligation and he may recover as
though there had been a strict and complete fulfillment.
9. The obligation is deemed fully complied with when the obligee accepts the performance,
knowing the incompleteness or irregularity , and without expressing any protest or
objection. This is based on the principle of waiver and estoppel.
10. If the debtor's obligation is paid by another person, the third person is generally entitled
to recover from the debtor what he has paid.
11. If a third person's payment is not beneficial to the debtor because the debt has been
previously remitted, paid, or compensated or prescribed, the third person may still
recover from the debtor what he has paid to the creditor.
12. The right to subrogation is the same with the right to reimbursement.
13. If the third person who pays the obligation has interest in the fulfillment, he is not
subrogated in the rights of the creditor, when the payment is made without debtor's
consent.
14. The payor need not be the owner of the thing which he delivers in payment.
15. Payment made to the creditor by the debtor after the latter has been judicially ordered to
retain the debt shall be valid.
16. In order that payment may be valid, the person to whom it is made must have the capacity
to receive it, meaning he must have the capacity to manage or administer his property.
17. One of the essential ingredients of payment as a mode of extinguishing obligations is the
identity of the protestation, which means that the very thing due must be delivered or
released.
18. In obligations to do or not to do, an act or forbearance cannot be substituted by another
act or forbearance against the creditor's will.
19. The parties may agree that the obligation or transaction shall be settled in a currency
other than Philippine currency at the time of payment.
20. A check whether a manager's check or ordinary check is not a legal tender, and an offer
of a check in payment of a debt is not a valid tender of payment and may be refused
receipt by the obligee or creditor.
21. Dation in payment involves non-alienation of property but just transfer of possession over
the property by the debtor in favor of the creditor in satisfaction of a debt in money.
22. Dation in payment is exactly the same with payment by cession.
23. Dation in payment involves plurality of creditors.
24. In payment by cession, there is no plurality of creditors.
25. Payment by cession does not contemplate a situation where the debtor is indebted to
several creditors and not under state of insolvency.
26. Dation in payment extinguishes the obligation to the extent of the value of the thing
delivered , either as agreed upon by the parties or as may be proved, unless the parties by
agreement - express or implied , or by their silence - consider the thing as equivalent to
the obligation, in which case the obligation is totally extinguished.
27. In Dation in payment, it does not necessarily mean total extinguishment of the obligation.
The obligation is totally extinguished only when the parties by agreement , express or
implied , or by their silence, consider the thing as equivalent of the obligation.
28. Payment by cession contemplates of a situation where the debtor is indebted to several
creditors but he is under a state of insolvency, or that the debtor is generally unable to pay
his liabilities as they fall due in the ordinary course of business or has liabilities that are
greater than his assets.
29. The creditor 's unjust refusal to accept payment does not produce the effect of payment
that will extinguish the debtor's obligation.
30. A refusal to accept payment without just cause is not equivalent to payment; to have the
effect of payment and the consequent extinguishment of the obligation to pay,
considering that the law requires the companion acts of tender of payment and
consignation.
31. Sending a letter by the vendee expressing the intention to pay without the accompanying
payment is considered a valid tender of payment.
32. Consignation is not an available remedy for an unjust refusal to accept payment by the
obligee,
33. In instances where no debt is due and owing, consignation is proper.
34. When the payment was accepted by the creditor , there is still need for consignation.
35. In an obligation to deliver a generic thing, the loss or destruction of anything of the same
kind extinguishes the obligation.
36. In order for the obligation to be extinguished by reason of loss of the determinate thing,
what is essential is that the loss be without the fault of the debtor.
37. To be exempt from liability by reason of fortuitous event, it is also essential that the
debtor must be free from any participation in or aggravation of the injury to the creditor.
38. Remission is an act of liberality by which the creditor , who receives no price or
equivalent thereof, releases the debtor from the obligation , either in whole or part, upon
he latter's consent .
39. Remission oof debt is essentially gratuitous.
40. The remission of debt can be done either by way of an act inter vivos or an act mortis
causa.
41. The remission of the principal debt does not result in the extinguishment of the
accessory obligation/s.
42. Merger which takes place in the person of the principal debtor or creditor does not benefit
the guarantors.
43. Confusion which takes place in the person of the guarantors extinguishes the obligation.
44. Any merger involving the persons of the guarantor and the principal creditor will result
in the extinguishment of the accessory obligation and the principal obligation.
45. Compensation , be it legal or conventional, does not require confluence in the parties the
characteristics of mutual debtors and creditors.
46. Unlike other modes of extinction of obligations, novation is a juridical act with a dual
function - it extinguishes an obligation and create a new one in lieu of the old.
47. Subrogation is another form of extinctive subjective novation which takes place when
there is a change in the person of the creditor.
48. Conventional subrogation is that which takes place by agreement of the parties.
49. Legal subrogation is that which takes place without agreement but by operation of law
because of certain acts.
50. Subrogation has the effect of extinguishing the old obligation and giving rise to a new
one.
51. Fulfillment of a resolutory condition causes extinguishment of obligations.
52. Dation in payment is the same as dacion en pago.
53. Death of a party in personal obligations extinguishes obligation.
54. Compensation shall take place when two persons in their own right , are creditors
and debtors of each other.
55. An assignment of credit has been defined as an agreement by virtue of which the
owner of a credit (known as the assignor), by a legal cause - such was sale,
Dation in payment or exchange or donation - and without need of the debtor's
consent, transfers that credit and its accessory rights to another ( known as the
assignee) who acquires the power to enforce it, to the same extent as the
assignor would have enforce it against the debtor.