STUDY GUIDE 11

Condonation or Remission of Debt

I. Definitions
1. Condonation or remission of debt;
Condonation or remission of debt is the gratuitous abandonment by the creditor
of his right against the debtor. (Article 1270).
2. Inofficious remission.
Inofficious remission is when remission given is more than that which the creditor
can give by will. (Article 1270).
II. Discussions
1. Give the requisites in order that a condition or remission of debt may be valid.
According to Article 1270, the requisites in order that a condition or remission of
debt may be valid is that it must be gratuitous, it must be accepted by the obligor,
the parties must have the capacity, it must not be inofficious, and if it made
expressly, it must comply with the forms of donation.
2. When is the condonation or remission of debt considered inofficious? What is
the remedy of the party adversely affected thereby?
According to Article 1270:

 A condonation or remission of debt considered inofficious when the

remissiongiven is more than that which the creditor can give by will.
 The remedy of the party is that the excess shall be reduced by the court
accordingly.

III. Problems
1. D (debtor) borrowed money from C (creditor) evidenced by a promissory note
signed by D.
(a) what presumption arises if:
1) The promissory note is voluntarily given by C to D?
If the promissory note is voluntarily given by the creditor to the debtor, the
presumption of implied remission arises. This implies that the creditor is
renouncing his right against the debtor.
2) It is found in the possession of D?
If the promissory note is found in the possession of the debtor and it is not known
how it came into possession of the debtor, the presumption is that it was
voluntarily delivered by the creditor. In turn, the presumption of voluntary delivery
gives rise to the presumption of remission.
(b) when will the presumption of remission arise?
According to the Article 1271, the presumption of voluntary delivery gives rise to
the presumption of remission; or according to Article 1274, when after its delivery
to the creditor the thing pledged is found in the hands of the debtor or the third
party, but only the accessory obligation of the pledge is presumed remitted.
2. Suppose in the same problem, the debt of D, aside from being guaranteed by G,
is secured by a pledge of a certificate of shares of stock delivered by D to C. What
presumption arises if:
a) the debt of D is condoned by C?
Based on Article 1273, when the debt of D is condoned by C, it was presumed
that the accessory both the principal and the accessory obligation will be both
extinguished.
b) the certificate is later found in the possession of D?
As stated on Article 1274, when the certificate is later found in the possession od
D, it is presumed that only the accessory obligation of pledge is remitted, not the
obligation itself. D shall continue to be liable but does not have to return the thing
pledged.