Loss - perish, disappear/cannot be recovered, goes out of commerce of man

Requisites:

1. Loss must be specific/determinate

2. Debtor must not be guilty of delay
3. Loss must occur w/o the fault of debtor

Obligation to give generic thing

GR: Loss of anything of the same kind will not be extinguished

EXPN:

1. Delimited genus
2. Thing to be delivered is already segregated
3. Monetary obligation

(1 and 2, obligation to deliver specific thing)

III. Condonation/Remission

- gratuitous abandonment – act of liberality/generosity by virtue of which the creditor, w/o aby
equivalence

- renounces his right against the debtor

Req:

1. Due and demandable debt/s

2. Must be gratuitous
3. Must not be inofficious
4. Debtor must accept
5. Must be in the form of valid donation

Presume that the debtor voluntarily delivers the thing/private document unless proven

IV. Confusion/Merger of rights

Req:

1. Must take place between the creditor and the principal debtor
2. It must be complete

Can only take place between creditor and principal debtor, without accessories
V. Compensation/Set off

- mutually creditor and debtor of each other

Maexhaust lahat ng nasa principal editor before lumapit sa guarantor

Parehas na principal debtor at creditor

Req:

1. Each is principally bound to each other

2. Both must be money or consumable
3. Due and demandable/liquidated
4. Neither must “hindi ko alam” retention/controversy / from third person.

The balance remains

Basically, compensation is a form of payment

When is compensation not allowed, except for taxes:

Assignment of credit to compensation

1. Assignment took place after compensation

- giving the right to credit to third person
- no effect
- assigns to go after assignment for payment of damages

2. Assignment took place before compensation

- Debtor consents
- Debtor did not consent but notified
- Debtor has no knowledge et. Al

VI. Novation

Req:

1. Previous valid obligation

2. Intention to extinguish the obligation
3. Extinguishment or modification of new obligation
4. Valid new obligation

There will be novation when there are two successive and binding contracts
New obligation arises from the prev. obligation
 Types of Novation
1. Objective (real)
2. Subjective (personal)
1. Change in debtor
i. Expromission
ii. Delegacion
- the consent of the third person is required
2. Change in subrogation
i. Conventional
ii. Legal

The consent of the creditor is indispensable in all forms of novation

All the rights of the creditors can be done by the new creditors
When the creditor has been partially, the co-creditor can still go after the debtor.
The creditor must have partial payment

Legal Subrogation
Requirements:
When the third person without the interest in the obligation with the approval/consent of the
debtor can subrogate with the rights of the creditor

Effects of legal subrogation

- same with the conventional subrogation

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Contract
- meeting of minds of two persons whereby one binds himself with respect to the other to give
something or render some service

Elements
1. Essentials (consent, object, cause)
2. Natural
3. Accidental

II. Characteristics of a contract

1. Obligatory force
2. Mutuality – contract of adhesion
3. Relativity of the contract