This document discusses how obligations are extinguished under Philippine law. It lists the main ways obligations can be extinguished as payment or performance, loss of the thing due, condonation or remission of the debt, confusion or merger of creditor and debtor rights, compensation, and novation. It also lists additional ways such as compromise, fortuitous events, death of a party in personal obligations, impossibility of fulfillment, and mutual desistance. It defines payment as including delivery of money, performance of obligations in other manners, and desistance from prohibited actions. Payment can be made through money delivery, thing or object delivery, or performance of an undertaking.
This document discusses how obligations are extinguished under Philippine law. It lists the main ways obligations can be extinguished as payment or performance, loss of the thing due, condonation or remission of the debt, confusion or merger of creditor and debtor rights, compensation, and novation. It also lists additional ways such as compromise, fortuitous events, death of a party in personal obligations, impossibility of fulfillment, and mutual desistance. It defines payment as including delivery of money, performance of obligations in other manners, and desistance from prohibited actions. Payment can be made through money delivery, thing or object delivery, or performance of an undertaking.
This document discusses how obligations are extinguished under Philippine law. It lists the main ways obligations can be extinguished as payment or performance, loss of the thing due, condonation or remission of the debt, confusion or merger of creditor and debtor rights, compensation, and novation. It also lists additional ways such as compromise, fortuitous events, death of a party in personal obligations, impossibility of fulfillment, and mutual desistance. It defines payment as including delivery of money, performance of obligations in other manners, and desistance from prohibited actions. Payment can be made through money delivery, thing or object delivery, or performance of an undertaking.
desisting or refraining from doing the forbidden undertaking. Article 1231. Obligations are extinguished:
(1) By payment or by performance
(2) By the loss of the thing due (3) By the condonation or remission of the debt; (4) By the confusion or merger of the rights of creditor and debtor; (5) By compensation (6) By novation
In addition, the following also extinguish
obligations:
1. Compromise 2. Happening of a fortuitous event 3. Death of a party in personal obligations 4. Impossibility of fulfillment 5. Mutual desistance
Section 1 : Payment or Performance
Article 1232. Payment means not only the delivery
of money but also the performance, in any other manner, of an obligation
Payment means the delivery of money or thing (in
obligations to give), the doing of a thing (in obligations to do) or the desistance from doing something (in obligations not to do).
Performance means that the parties to the contact
have done that which they agreed to do. The possibility of non-performance should be anticipated when drawing up contract terms and conditions.
How payment is made
1. In a monetary obligation, by the delivery of
the money in full. 2. In an obligation to deliver a thing or an object, by the delivery of the thing or object 3. In an obligation to do something, by the performance of the supposed undertaking