Payment or performance:

To cover the costs of his visa application requirements, Ryan owes Justin PHP 20,000. After moving,
Ryan would give Justin PHP 20,000 when he receives his pay check.

- Ryan is the passive subject.

- Justin is the active subject.
- The debt of P20,000 is the object.
- The loan agreement is the vinculum juris.
Loss or destruction of the object due to:
Juliet, Romeo's friend, loaned him a dress. The gown was ripped and tattered due to Romeo's
involvement in an incident.

- Romeo is the passive subject.

- Juliet is the active subject.
- The gown is the object.
- The vinculum juris is the loan agreement.

Condonation or remission of the debt:

Gail received a Php 1,000 loan from Gia, but Gia decides to cancel it and tells Gail that she no longer
needs to repay it.

- Gia is the passive subject.

- Gail is the active subject.
- The object is the loan of Php 1,000,
- The vinculum juris is the agreement to repay the loan.

Confusion or merger of the characters of creditor and debtor:

Bebe owes Girl PHP 800,000 for Bebe's shopping trips, and Girl owes Bebe PHP 400,000. So, instead
of paying each other back, they settle their debts, with Bebe paying just PHP 50% of the original sum
to fulfill her obligation.

- Bebe And Girl are both passive subjects,

- Debts are the objects.
- The vinculum juris is the mutual obligation to pay the debts.

Compensation or set-off:
Ms. Lee lent Ms. Cee a PHP 10 in exchange for the car she bought. But, as Mr. Cee already owes Ms.
Lee the same amount, the debt is already paid.
- Ms. Lee and Ms. Cee are the passive and active subjects.
- PHP 10 is the object.
- The responsibility to pay for both parties is the Vinculum Juris.
Novation:
Gail decides to settle the debt with a piece of artwork that is owned by CK. They both agree is worth
PHP 10,000 instead of with cash. This novation will replace the original obligation to pay PHP 10,000
in cash with a new obligation to pay with the piece of artwork.

- Gail is the passive subject.

- CK is the active subject.
- The object is the artwork, original debt,
- The vinculum juris is the agreement to replace the original obligation with a new obligation.