EXTINGUISHMENT OF OBLIGATIONS

Q1: Will I be freed from my obligations if I would substitute by a new debtor without
the consent of the creditor?

A: No. According to Article 1293 of the Civil Code, novation of an obligation by substituting the
person of the debtor, entails the replacement of the person by a third person. When validly
made, it releases the debtor from obligation which is then assumed by the third person as the
new debtor. To validly effect such kind of novation, the consent of the creditor to the
substitution of the debtor is essential and must be had.

Q2: Will my obligations be extinguished if I delivered a determinate thing after I have

incurred in delay, but was destroyed and without my fault?

A: No. According to Article 1262 of the Civil Code, an obligation 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. Otherwise, if the thing is lost through the fault of
the debtor or after he has incurred in delay, he shall be liable for damages.

Q3: Will my obligations be extinguished when a thing is lost in my possession even if

it is not my fault?

A: Yes. According to Article 1265 of the Civil Code, whenever a thing is lost in the possession
of the debtor, it shall be presumed that the loss was due to his fault, unless there is proof to
the contrary. Such presumption is reasonable since he who has the custody and care of the
thing can easily explain the circumstances of the loss.

Q4: Suppose a thing is in my possession, is destroyed because of an earthquake,

would I still be liable?

A: No. According to Article 1265 of the Civil Code, the presumption that the loss was due to
debtor’s fault does not apply in case of earthquake, flood, storm, or other natural calamity.

Q5: Will my obligations be extinguished when I failed to perform my obligation,

without my fault, since it is physically impossible for me to do so?

A: Yes. According to Article 1266 of the Civil Code, the debtor in obligations to do shall be
released when the prestation becomes legally or physically impossible without the fault of the
obligor. However, it only applies to personal obligations, i.e. obligations to do. However, if
you (obligor) have already incurred in delay, the obligation shall be converted into an
obligation to pay damages.