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Civil Code of the Philippines

The Civil Code of the Philippines is the product of the codification of private law in the Philippines. It is the general law that governs family and property relations in the Philippines.

History of the Civil Code

The Civil Code is strongly influenced by the Spanish Civil Code, which was first enforced in 1889 within the Philippines, then a colony of Spain. 1940, the Commonwealth Government of President Manuel Quezon had created a Commission to create a new Civil Code. The Commission was initially headed by Supreme court Chief Justice Ramon Avancea. 1945, the work of the Commission was interrupted by the Japanese invasion of the Philippines, and its records were destroyed during the Battle of Manila. 1947, President Manuel Roxas created a new Code Commission, this time headed by the former Dean of the University of the Philippines College of Law Jorge Bocobo. May 8, 1947, the work on the civil code begun and the first draft was finished on October 22, 1947. December 15, 1947, the Commission completed the final draft of the new Civil Code. January 1948 , civil code was submitted to Congress, June 18, 1949, civil code was enacted it into law through Republic Act No. 386.

Features of the Civil Code


The Civil Code is divided into 5 books,

Persons and family relations; Property; Succession; Obligations and contracts; and Special contracts.

OBLIGATIONS

OBLIGATION

The legal relation between one party and another, the latter is bound to the fulfillment of a prestation which the former may demand of him. Manresa, a

Spanish Commentator in civil Law.

A legal bond between two or more persons, by which one person, the debtor, is held liable to another, the creditor, to perform a "prestation" consisting of "doing" or "not doing" something at the risk of legal sanction. Wikipedia.org A juridical necessity to give, to do or not to do. Art.

1156

Elements of an Obligation
1. A passive subject (called debtor or obligor): the person who is bound to the fulfillment of the obligation. 2. An active subject (called creditor or obligee): the person who is entitled to demand the fulfillment of the obligation. 3. Object or prestation: subject matter of the obligation 4. A juridical or legal tie: the vinculum; the efficient cause that binds or connects the parties. Example: By virtue of contract, Sandy obliged herself to ship the goods of Che from Manila to Batangas for Php10, 000.00. Passive subject : Sandy Active subject : Che Object or Prestation : The shipping of goods to Batangas Juridical or Legal Tie : Contract between Sandy and Che.

Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts.

Art. 1157. Obligations arise from:


(1)

LAW AS A SOURCE OF OBLIGATION Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book. Art. 1158.

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

Law Governing Obligations derived from Law


Art. 1157. Obligations arise from:
(1)

Law;

Obligations derived from law shall be governed by the law which establishes them. In case of insufficiency, the same shall be supplemented by the provisions of the Civil Code. Examples: The obligation of husband and wife to support each other. Art.195, Family Code The obligation of a taxpayer to file his income tax return. Title II, Section 23, NIRC The obligation of the legitimate ascendants and descendants to support each other. Art. 195,

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

Family Code

Art. 1157. Obligations arise from:


(1)

CONTRACT AS A SOURCE OF OBLIGATION Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Art. 1159 Compliance in Good Faith means that we must interpret not by the letter that killeth but by the spirit that giveth life.

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

QUASI-CONTRACT AS A SOUCE OF OBLIGATION

Art. 1157.
Obligations arise from:
(1)

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

CONCEPT OF QUASI-CONTRACTS A quasi-contract is that juridical relation resulting from a lawful, voluntary and unilateral act, and which has for its purpose the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another. (Article 2142, NCC)

Art. 1157. Obligations arise from:


(1)

KINDS OF QUASI-CONTRACT NEGOTIORUM GESTIO the voluntary management of the property or affairs of another without the knowledge or consent of the owner. SOLUTIO INDEBITI the juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake. QUASI-CONTRACT AND CONTRACT The distinctive mark of quasi-contract from contract is that in contract, there is consent of the parties, while in quasi-contract, the obligation arises without a contract.

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

Art. 1157. Obligations arise from:


(1)

DELICT AS A SOURCE OF OBLIGATION It is an act or omission punishable by law. The principle is that: if a person committed an act or omitted to do an act and the act or omission is punishable by law, he is civilly liable. Example: Ai kills Yoe. Yoe is survived by his 3 children. Since killing is punishable by law, Ai will not only go to jail but he will also be required to indemnify the heirs of Yoe for his felonious act. The imprisonment is the criminal liability, while the indemnification is the civil liability.

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

Art. 1157. Obligations arise from:


(1)

MAY A PERSON WHO COMMITTED AN ACT CONSTITUTING A CRIME BE EXEMPTED FROM CRIMINAL LIABILITY? Yes, this is provided for in Article 12 of the Revised Penal Code. The following persons are exempted from criminal liability even if the act committed constitutes a crime. An imbecile or insane person, unless he acted during a lucid interval A person under 9 years old A person over 9 years old but below 15, unless he acted with discernment. Persons acting under the compulsion of an irresistible force. Persons acting under the impulse of an uncontrollable fear of an equal or greater injury.

Law;

(2) Contracts;

(3) Quasicontracts;
(4) Acts or omissions punished by law; and (5) Quasi-delicts

NOTE: These persons are exempted from criminal liability but not from civil liability. This civil liability shall devolve upon their guardians or persons whose control or authority they under.

Art. 1162 Obligations derived from quasidelicts shall be governed by the Obligations provisions of Chapter 2, Title XVII of this arise from: Book, and by special laws. Art. 1157.
(1)

Law;

(2) Contracts; (3) Quasicontracts; (4) Acts or omissions punished by law; and (5) Quasidelicts

QUASI-DELICTS (Tort or Culpa Acquiliana) A quasi-delict is a fault or act of negligence (or omission of care) which causes damages to another, there being no pre-existing contractual relations between the parties. Culpa Acquiliana (Quasi-Delicts) can refer to acts which are criminal in character, whether the same be voluntary or negligent. Example: Atty. Luz, while driving her car negligently hit a pedestrian, inflicting upon the latter bodily injury. In here, Atty. Luz is liable because of her negligent act and this is called quasidelict.

Art. 1157. Obligations arise from:


(1)

QUASI-DELICT AS A SOURCE OF OBLIGATION One which caused damaged to another, there being fault or negligence, but there is no preexisting contractual relation between the parties, is obliged to pay for the damage done. Art. 2176

Law;

(2) Contracts; (3) Quasicontracts; (4) Acts or omissions punished by law; and (5) Quasidelicts

NEGLIGENCE The failure to observe, for the protection of the interests of another person, that degree of care, precaution, and vigilance which the circumstances justly demand, whereby such other person suffers injury.

Art. 1157. Obligations arise from:


(1)

Continuation As defined in the Civil Code, negligence is the omission of the diligence which is required by the circumstances of person, place, and time. Thus, negligence is a question of fact KINDS OF NEGLIGENCE Culpa Acquiliana or quasi-delict. The negligence as a source of obligation. Culpa Contractual. The negligence in the performance of an obligation.

Law;

(2) Contracts; (3) Quasicontracts; (4) Acts or omissions punished by law; and (5) Quasidelicts

DIFFIRENT KINDS OF OBLIGATION

DIFFERENT KINDS OF OBLIGATIONS


Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1179 Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event.

PURE OBLIGATION Pure and Conditional One without a condition or a term; hence, Obligation with a demandable at once, provided there will Period or Term be absurdity. Alternative or Facultative CONDITIONAL OBLIGATION Obligation and Conjunctive When the obligation has a condition. Joint Obligation VOID CONDITION and Solidary I will pay you after I receive a loan from a Obligation bank. Divisible I will pay you after I have harvested fish. Obligation and I will pay you upon the sale of the house Indivisible Obligation in which I live. Obligation with a Penal Clause and Without a Penal Clause

Pure and Art. 1193 Conditional Obligation with Obligations for whose fulfillment a day a Period or Term certain has been fixed, shall be Alternative or demandable only when that day comes. Facultative Obligation and Obligations with a resolutory period take Conjunctive effect at once, but terminate upon arrival Joint of the day certain. Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1193
A day certain is understood to be that which must necessarily come, although it may not be known when.

If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be regulated by the rules of the preceding Section.

Pure and Conditional PERIOD Obligation It is a certain length of time which with a Period or Term determines the effectivity or the extinguishment of an obligation. Alternative or Facultative Obligation and A period or term consists in a Conjunctive space of time which has an Joint influence on obligations as a result Obligation and Solidary of a juridical act and either Obligation suspends their demandableness or Divisible produces their extinguishment. Obligation and Manresca Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

KINDS OF PERIOD According to source Legal Voluntary Judicial

According to effect Suspensive period a period which must lapse before the obligations can be demanded. Resolutory period a period after which the obligation is extinguished.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

KINDS OF PERIOD According to definiteness Definite refers to a fixed known date or time. Indefinite refers to an event which will necessarily happen but the date of its happening is not known.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Illustrative Case Mr. Jones obliges himself to pay Mr. Bart P10,000 as soon as possible. Three months after, Mr. Bart demanded payment from Mr. Jones but latter refuses to pay. Q: Can Mr. Bart file an action in court compelling Mr. Jones to pay the obligation? A: NO. This obligation is subject to a period. Mr. Barts right is to go to court so that the court will fix the date of payment.

When my means permit me to do so. I will pay you little by little. As soon as I have money In partial payment

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1197 If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that a period was intended, the courts may fix the duration thereof. The courts shall also fix the duration of the period when it depends upon the will of the debtor. In every case, the courts shall determine such period as may under the circumstances have been probably contemplated by the parties. Once fixed by the courts, the period cannot be changed by them.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1199 A person alternatively bound by different prestations shall completely perform one of them. The creditor cannot be compelled to receive part of one and part of the other undertaking. ALTERNATIVE OBLIGATIONS One where out of two or more prestations which may be given, only one is due. In short, there are several things due but the delivery of one is sufficient to extinguish the obligation.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1200 The right of choice belongs to the debtor, unless it has been expressly granted to the creditor. The debtor shall have no right to choose those prestations which are impossible, unlawful or which could not have been the object of the obligation.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

RULES, OBLIGATIONS AND RIGHT


CHOICE BELONGS TO THE DEBTOR

A. Loss is due to fortuitous event


If all are lost, obligation is extinguished. If 2 or more of the objects remains, the debtor can deliver any of the two remaining. If only one remains, theres no alternative obligation. What he should deliver is the remaining object.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

RULES, OBLIGATIONS AND RIGHT


CHOICE BELONGS TO THE DEBTOR

B. Loss due to debtors fault


If all are lost, the obligation is converted into monetary consideration. If 2 or more of the objects remains, the debtor can choose which one to deliver but no damages. If only one remains, theres no alternative obligation. What he should deliver is the remaining object but no damage.

Pure and Conditional RULES, OBLIGATIONS AND RIGHT Obligation with a Period or Term CHOICE BELONGS TO THE CREDITOR Alternative or Facultative A. Loss is due to fortuitous event Obligation and Conjunctive The effects are the same as where Joint Obligation the right of choice belongs to the and Solidary debtor. Obligation Divisible B. Loss due to debtors fault Obligation and Indivisible If all are lost, the obligation is Obligation converted into monetary consideration Obligation with a plus damage. Penal Clause and Without a Penal Clause

Pure and Conditional RULES, OBLIGATIONS AND RIGHT Obligation with a Period or Term CHOICE BELONGS TO THE CREDITOR Alternative or Facultative B. Loss due to debtors fault Obligation and Conjunctive If 2 or more of the objects remains, Joint Obligation the creditor can choose which one to 2 and Solidary remaining objects with damages. If he chooses the lost object, the debtor is Obligation liable for the value plus damage. Divisible If only one remains, The creditor may Obligation and choose the remaining object with Indivisible damages. If he chooses anyone of the Obligation two which were lost, the debtor must pay the value plus damages. Obligation with a Penal Clause and Without a Penal Clause

Pure and FACULTATIVE OBLIGATION Conditional It is one where only one Obligation prestation has been agreed upon but with a Period or the debtor may give another object Term as substitute. Alternative or Facultative Obligation and Conjunctive RULES, OBLIGATIONS AND RIGHT Joint Obligation and Solidary Before Substitution Obligation Divisible Obligation and If the principal thing was lost due Indivisible to fortuitous event, obligation is Obligation extinguished. If lost due to debtors Obligation fault , he is liable for damages. with a Penal Clause and Without a Penal Clause

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

RULES, OBLIGATIONS AND RIGHT

If the thing intended as a substitute is the one which was lost, with or without debtors fault, the obligation to deliver the substitute is extinguished because what is to be delivered is the principal object and not the substitute,

After Substitution If the principal thing was lost, the debtor is no longer liable whatever be the cause of the loss, because it is no longer due. If the substitute is lost due to fortuitous event, obligation is extinguished. If due to debtors fault, he is liable for damages.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1207 The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that each one of the former has a right to demand, or that each one of the latter is bound to render, entire compliance with the prestation. There is a solidary liability only when the obligation expressly so states, or when the law or the nature of the obligation requires solidarity.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

JOINT OBLIGATION It is one where the whole liability is to be paid or fulfilled proportionately by the different debtors and/ or is to be demanded also proportionately by the different creditors. SOLIDARY OBLIGATION It is one where each one of the debtors is bound to render compliance of the entire obligation and/or each one of the creditors has a right to demand entire compliance of the prestation.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1223 The divisibility or indivisibility of the things that are the object of obligations in which there is only one debtor and only one creditor does not alter or modify the provisions of Chapter 2 of this Title. DIVISIBLE OBLIGATION Capable of division or capable of partial performance. INDIVISIBLE OBLIGATION Not capable of division or nor capable of partial performance.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

KINDS OF INDIVISIBLE OBLIGATION Conventional agreed by the parties to be indivisible, although by nature is divisible Natural o absolute indivisility by nature the object does not admit of division. Legal Indivisibility The indivisibility is provided by law.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

Art. 1226 In obligations with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interests in case of noncompliance, if there is no stipulation to the contrary. Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is guilty of fraud in the fulfillment of the obligation. The penalty may be enforced only when it is demandable in accordance with the provisions of this Code.

Pure and Conditional Obligation with a Period or Term Alternative or Facultative Obligation and Conjunctive Joint Obligation and Solidary Obligation Divisible Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

In an obligation with a penal clause, the penalty shall substitute the indemnity for damages and the payment of interest in case of noncompliance, if there is no stipulation to the contrary. A penal clause is an accessory undertaking to assume greater liability in case of breach. It is attached to an obligation to ensure their performance, to substitute for the indemnity of damages and the payment of interest in case of non-compliance and to punish the debtor for the nonfulfillment of his obligation.

Pure and Conditional EXCEPTIONS WHERE ASIDE FROM Obligation with PENALTY, DAMAGES AND a Period or Term INTEREST MAY DEMANDABLE BY Alternative or Facultative THE CREDITOR. Obligation and Conjunctive Joint When it is stipulated Obligation and Solidary When the debtor is guilty fraud Obligation When the debtor refuses to pay Divisible the penalty Obligation and Indivisible Obligation Obligation with a Penal Clause and Without a Penal Clause

EXTINGUISHMENT OF OBLIGATIONS

Art. 1231. Obligations are extinguished by: 1. Payment or performance; 2. Loss of the thing due 3. Condonation or remission of the debt; 4. Confusion or merger of rights of the creditor and debtor; 5. Compensation; 6. Novation

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

Payment or fulfillment consists in the delivery of money or a thing, or doing a thing, or not d going something. HOW PAYMENT OR PERFORMANCE IS MADE? A. If obligation is monetary, by delivery of the money in full. ART. 1249 The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

HOW PAYMENT OR PERFORMANCE IS MADE? Legal Tender in the Philippines (PD No. 82, Nov. 29, 1972) as amended

The 5 centavo coin up to P20.00 Other coins (P0.10, P0.25, P0.50, P1.00) are valid legal tender up to P50.00 All bills are valid legal tender for any amount.

Art. 1231 HOW PAYMENT OR Obligations are PERFORMANCE IS MADE? extinguished by: Payment or Dation in payment (payment in performance; kind) is the mode of extinguishing Loss of the an obligation where by the debtor thing due alienates property in favor of the Condonation or creditor for a satisfaction of remission of monetary obligation. In short, the the debt; obligation is money, the payment is Confusion or property. merger of rights of the creditor and ART. 1245. Dation in payment, whereby debtor; property is alienated to the creditor in Compensation; satisfaction of a debt in money, shall be Novation governed by the law of sales.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

HOW PAYMENT OR PERFORMANCE IS MADE? B. If it is a thing or an object, by delivery of the thing or object. If to do something, by the performance of the same undertaking.

C.

D. If not doing a thing, to desist or refrain from doing the thing.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

HOW PAYMENT OR PERFORMANCE IS MADE? ART. 1244 The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value as, or more valuable than that which is due. In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee's will.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

HOW PAYMENT OR PERFORMANCE IS MADE? Art. 1235 When the obligee accepts the performance, knowing its incompleteness or irregularity and without expressing any protest or objection, the obligation is deemed fully complied with.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Concept of Loss Condonation The concept of loss is called or remission of impossibility of performance, the debt; and this must be subsequent to Confusion or the execution of the contract in merger of rights of the order to extinguished the creditor and obligation, for if the impossibility debtor; existed at the time the contract is Compensation executed, the result is not ; extinguishment, but inefficacy of Novation the obligation

There is loss when; the thing perishes goes out of commerce when it disappears in such away that its existence is unknown or cannot be recovered

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

ART. 1263 In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation. DELIVERY OF DELIMITED GENERIC THING When there is a limitation of the generic object to a particular existing mass or a particular group of thing, the obligation is extinguished by the loss of a particular mass or group or limited quantity from which the prestation has to be taken.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation; Novation

Obligation is extinguished It means that the obligation to deliver the same thing is no longer possible because there is no more thing to deliver. Hence, if there is default on the part of the debtor, the debtors obligation to deliver the same thing is extinguished but the same is converted into monetary consideration for damages. The same holds true if the debtor is at fault the obligation is converted into its monetary value.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

ART. 1270 Condonation or remission is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly. One and the other kind shall be subject to the rules which govern inofficious donations. Express condonation shall, furthermore, comply with the forms of donation

Art. 1231 Classes of Remission Obligations are extinguished As to effect o extent by: Total Payment or Partial performance; Date of Effectivity Loss of the thing due Lifetime Condonation After death or remission of the debt; As to Form Confusion or Implied o tacit merger of Express or Fomal rights of the creditor and debtor; Compensatio n; Novation

Art. 1231 Obligations are extinguished by: ART. 1275 Payment or The obligation is extinguished from performance; the time the characters of creditor Loss of the and debtor are merged in the same thing due person. Condonation or remission of the debt; CONFUSION IN JOINT AND SOLIDARY Confusion or OBLIGATION. merger of If the obligation is joint, only the rights of the share corresponding to the creditor creditor and or debtor in whom the debtor; two characters concur. Compensation ; If the obligation is solidary, the obligation is totally extinguished. Novation

It is the meeting in one person of the qualities of creditor and debtor with respect to the same obligation.

ILLUSTRATIVE CASE: Art. 1231 April owes June Php10,000.00 with her Obligations mothers land given as a security (with are Aprils mother consent). Later, Aprils extinguished mother donated the same land to June. by: Q: Is the mortage valid even if April does not Payment or own the land mortage? performance; Loss of the A: Yes, this is provided in ART. 2085.That the thing due persons constituting the pledge or mortgage have the free disposal of their Condonation or remission of property and in the absence thereof, that the debt; they be legally authorized for the purpose. Confusion or Q: Is the contract of mortgage extinguished? merger of How about the principal obligation? rights of the A: Yes, the contract of mortgage is also creditor and extinguished but not the principal obligation debtor; to pay Php10,000.00. In short, the Compensation obligation to pay June still subsist, only the ; loan of Php10,000.00 is now without Novation security.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

It is the extinguishment to the concurrent amount of the debts of two persons who, in their own rights are debtors and creditors of each other. Also called abbreviated or simplified payment because the two debts are extinguished without the transfer of money or property from one party to the other. ART. 1278 Compensation shall take place when two persons, in their own right, are creditors and debtors of each other.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

KINDS OF COMPENSATION a. As to their effects: 1. Total same amount 2. Partial not equal ART. 1281 Compensation may be total or partial. When the two debts are of the same amount, there is a total compensation.

Art. 1231 Obligations b. As to origin are 1. Legal by operation of law extinguished by: The requisites mentioned apply Payment or to compensation by performance; operation of law. Even if Loss of the there is no agreement thing due voluntarily and validity entered Condonation or remission of into there is compensation the debt; by operation of law. Confusion or merger of rights of the 2. Facultative one party can creditor and claim compensation, the other debtor; cannot Compensation ; Novation

KINDS OF COMPENSATION

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

KINDS OF COMPENSATION b. As to origin 3. Conventional by agreement of the parties Debts which are not demandable cannot be compensated, but the parties may compensate them voluntarily. ART. 1282. The parties may agree upon the compensation of debts which are not yet due.

Art. 1231 Obligations b. As to origin are extinguished 4. Judicial decreed by the court, by: in case where there is Payment or performance; counterclaim Loss of the thing due In judicial compensation or set Condonation or remission of off, the parties must prove his the debt; right on the damages claimed at Confusion or the time of pleading. The claim merger of must be unliquidated because rights of the creditor and the fixing or liquidation must be debtor; made in the proceeding itself. Compensation ; Novation

KINDS OF COMPENSATION

Art. 1231 through the creation of a new one Obligations are which substitutes the old one. extinguished by: Payment or MODIFICATION OF OBLIGATION performance; a. Changing their object or principal Loss of the condition thing due Condonation b. Substituting the person of the or remission of debtor the debt; c. Subrogating a third person in the Confusion or merger of rights of the creditor rights of the creditor and debtor; DUAL PURPOSE OF NOVATION Compensation a. Original obligation is extinguished ; b. A new obligation is created Novation

It is the extinction of an obligation

Art. 1231 Obligations are As to form extinguished by: Express declared in an Payment or unequivocal term performance; Implied both obligations are Loss of the thing due incompatible with each Condonation other or remission of ART. 1292. In order that an obligation the debt; may be extinguished by another Confusion or merger of which substitutes the same, it is rights of the imperative that it be so declared in creditor and unequivocal terms, or that the old debtor; and the new obligations be on every Compensation ; point incompatible with each other. Novation

KINDS OF NOVATION

Art. 1231 Obligations are As to object or purpose extinguished by: Personal of subjective person Payment or of the debtor is substituted performance; or the rights of the creditor Loss of the is subrogated. thing due Condonation Real or Objective change of or remission of the object or principal the debt; condition Confusion or merger of Mixed change of the parties rights of the and object or principal creditor and condition debtor; Compensation ; Novation

KINDS OF NOVATION

Art. 1231 Obligations are a. If the original obligation is void, the extinguished novating is also void. If the by: Payment or novating contract is the one which performance; is void, the original one shall Loss of the subsist. thing due Condonation or remission of ART. 1298. the debt; The novation is void if the original Confusion or merger of obligation was void, except when rights of the annulment may be claimed only by creditor and the debtor or when ratification debtor; validates acts which are voidable. Compensation ; Novation

NOVATION IN VOID OBLIGATION

Art. 1231 IS VOIDABLE Obligations are If the original is voidable only, a extinguished valid novation can take place by: because voidable contracts are Payment or performance; valid until annulled by proper action Loss of the in court. thing due Condonation or remission of NOVATION IF THE NEW the debt; OBLIGATION IS VOIDABLE Confusion or If the new obligation is voidable, merger of rights of the not void, the old one is xtinguished creditor and and the new one shall be given debtor; force and effect until it is annulled. Compensation Take note that voidable contracts ; are subject to ratification to give Novation

NOVATION IF OLD OBLIGATION

them a lasting effect.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

NOVATION IF THE ORIGINAL OBLIGATION IS SUBJECT TO A CONDITION If the original obligation was subject to a suspensive or resolutory condition, the new obligation shall be under the same condition, unless it is otherwise stipulated. ART.1299 SUBROGATION The transfer to a third person of all the rights appertaining to the creditor, including the right to proceed against the guarantor, possessor of mortgages, subject to any legal provision or any modification that may be agreed upon.

Art. 1231 Obligations are extinguished by: Payment or performance; Loss of the thing due Condonation or remission of the debt; Confusion or merger of rights of the creditor and debtor; Compensation ; Novation

Art. 1302

It is presumed that there is legal subrogation: a. When a creditor pays another creditor who is preferred, even without the debtor's knowledge; b. When a third person, not interested in the obligation, pays with the express or tacit approval of the debtor; c. When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter's share. (1210a)