OBLIGATIONS & CONTRACTS

A exemplary damages are to be awarded,

Articles Summary

dft acted upon Advice of counsel

L Loss would have resulted in any way

C1 General Provisions

L since filing of action, dft has done his

1156 Prescription, concept

1157 Sources of Oblgn

best to Lessen the pfs

loss/injury

1158 Oblgn fm Law

1173 Negligence, concept/bonos pater-familia

1159 Oblgn fm Contracts

1174 Fortuitous Event, concept/exceptions (dr

1160 Oblgn fm Quasi-Contracts

liable) SADPBCFF!

1161 Oblgn fm Delicts

S expressly Stipulated

1162 Oblgn fm Quasi-Delicts

A nature of oblgn requires Assumption

C2 Nature & Effects of Oblgns

of risk

1163 Duty of Obligor (Specific)

D Obligor is in Delay 1165

1164 Real/Personal Rights/Fruits

P Obligor has Promise the same thing to

1165 Drs failure to deliver (specific)/Remedies

SRRD!

2/more persons who do not

have the

same interest

S Specific performance

B possessor is in Bad Faith

R Complaint for rescission 1380

C Obligor Contributed to the loss of the

R Complaint for resolution 1191

thing

D Complaint for damages 1170

F Obligor is guilty of FNDV

1166 Accessions/Accessories
1167 Positive Personal Oblgn/Remedies FVP!
F if dr failed to fulfill
V oblgn done in violation of the
agreement
P performance is poor
1168 Negative Personal Oblgn
1169 Legal Delay/exceptions ENDeD!

F dr failed to take steps to forestall the

possible adverse consequences of such
a loss
1175 Usurious transactions (CBP Circular 905-82)
Medel et al v. CA (Art. 21, NCC)
1176 Presumption that Interest & Prior
Installments that had been paid
1177 Remedies available to Crs to protect their

E law/oblgn Expressly declares

N Nature of the contract requires

interests ESP!
E Exhaustion of the drs properties still

assumption of risk

in his possession

De Demand would be useless

S accion Subrogatoria

D dr admits, he is in Delay

P accion Pauliana

1170 Grounds for liability FNDV/kinds of damages

AMENTL!
A Actual or Compensatory damages

1178 Transmissibility of rights/exceptions NL!

N by nature like purely personal rights
L by provision of Law

M Moral Damages

C3 Different Kinds of Oblgns

E Exemplary damages

Section 1 Pure & Conditional Oblgns

N Nominal damages

1179 Oblgns demandable at once/classifications

T Temperate or Moderate damages

L Liquidated damages

of Conditions SRPCMPIPNDICAEI!
1180 Oblgn deemed w/ a period or term (1197)

1171 Responsibility fm Fraud

1181 Suspensive & Resolutory Condition, concept

1172 Responsibility fm Negligence/mitigation of

1182 Conditions upon the will of parties/3P/Chance

damages CBALL!
C plaintiff himself Contravened the
terms of the contract
B pf derived some Benefit as a result of
the contract

Potestative or Facultative
Casual condition
Mixed condition

1183 Possible & Impossible Conditions, concept

1184 Positive Conditions (event/performance)
1185 Negative Conditions

1186 Constructive fulfillment of condition

C Certain

(voluntary prevention by the obligor

P Possible physically or legally

intentional & actual)

1194 in case of L, D or I, rules in 1189

1187 Effects of fulfillment of Suspensive

1195 Consequences of premature payment or

Condition retroactive (to give) (to

do/not to

do-courts discretion)

delivery/situations where there can

be no

1188 Preserving the Crs rights (suspensive

recovery even if conditions are

present RLB!

cond.)/remedies PASSI!

R Obligation is reciprocal

P action for Prohibition restraining the

L Oblgn is a Loan on w/c dr is bound to

alienation of the thing

pay interest

A petition for the Annotation of the Crs

B period is exclusively for the Benefit of

right (Reg. of Property-real property)

the cr (dr by paying in advance losses

S action to demand security if dr

nothing)

becomes insolvent

1196 Presumption when a period is designated

S action to Set aside alienation made by

benefit of dr & cr

dr to defraud the cr

1197 Situations when the court will fix a period

I action against adverse possessors to

ND!

Interrupt the running of the

N No period is mentioned

prescriptive period

D dependent upon the will of the Dr

1189 Rules in case of I, L, or D during the

1198 Loss of the right to use the period/term (dr)

suspension of the efficacy of an

IFIVA!

oblgn to give

I Insolvency of the dr, unless he gives a

Improvement by the dr usufractuary

guaranty/security for the debt

rights only & not indemnification for the

improvements.

Removal

of

F does not Furnish the

allowed

provided will not cause damage to the

guaranties / securities
promised

property.

I he Impaired said

1190 Rule in case of I, L or D during the resolutory

period

guaranties/securities, unless
he gives

To give shall return to each other what

they have received.

To do/not to do Art. 1187 is applicable

1191 Rescission in reciprocal oblgns

new ones equally

satisfactory
V he violates any undertaking, in
consideration of w/c the cr
agreed to

the period

(resolution)/remedies of the aggrieved

party S

or R!

A he Attempts to abscond
Section 3 Alternative Obligations (AO)

S Specific performance w/ damages

1199 AO/Cr cannot be compelled to receive parts

R Rescission of the contract w/ damages

Breach of faith

1192 Effect when both parties are guilty of breach

of

C Conjunctive (perform all)

1193 Oblgn w/ a period/effect/general

A Alternative (complete 1 performance)

1200 Right to choose the prestation dr, unless

E Ex Die (suspensive effect)

I In Diem (resolutory effect)

expressly given to cr
1201 the choice shall have no effect except fm the

L Legal (by law)

time it has been communicated

V Voluntary (by the parties)

J Judicial (by
Requisites of a valid period/term FCP!

different
Oblgn as to

plurity of prestations CA!

Section 2 Oblgns w/ a Period

classification EILVJ!

the

prestations/Classification of

Consent of cr not required

1202 Rule when only one prestation is practicable

Becomes a simple oblgn

F Future

1203 When dr cannot make a choice bcoz of crs

1215 Effect of execution of N,C,C, or R of

acts

extinguishing oblgn by a solidary cr

Perform other prestation or rescind the

N Novation

contract w/ damages if theres any.

C Compensation

1204 When all the objects have become impossible

C Confusion or Merger of rights

bcoz of the dr

R Remission or Condonation

Cr is entitled to indemnity of damages

1216 Against whom will the crs action be

addressed?

(basis is the value of the last thing lost)

1205 Right of choice is expressly given to the
cr/rules

Any, some, or all of the Sol. Drs

Extrajudicial demand - not a bar to

1206 Facultative Oblgn, concept

subsequent demands

Section 4 Joint & Solidary Oblgns

Judicial demands:

1207 Presumption in Collective Oblgn-Joint/

1.

Classification as to no. of parties IC-

Favorable

oblgn

extinguished

JS-PA!

2.
I Individual Oblgn

Favorable

but

dr

insolvent a new action is

C - Collective Oblgn

necessary

J Joint Oblgn

3.

S Solidary Oblgn

Unfavorable

res

judicata

P Passive Oblgn

1217 Effect of payment (full/partial) by a solidary

A Active Oblgn

dr

Exceptions CLRJ! (Solidary Oblgn)

C Conventional solidarity (agreement)

Payor may be substituted as Party Pf not

subrogation

L Legal solidarity (Law)

R Real solidarity (nature)

Intervening period = date of payment

date of maturity

J Judicial solidarity (FJ by a court)

1218 Payment by a solidary dr when:

1208 Joint Oblgn, concept

Oblgn had already prescribed

1209 Effect of breach of a Joint Indivisible Oblgn

Oblgn or prestation has become illegal b4

1210 Indivisibility & Solidarity of Oblgn not

it could be performed

identical/Kinds of indivisibility LCS!

= payor not entitled to reimbursement

L Legal indivisibility
C Conventional indivisibility

1219 Act of belated remission by a solidary cr

S Solidary Oblgn

Indivisibility character of the object

Solidarity vinculum, tie, or relationship

reimbursing the dr-payor of the entire

obligation

w/n the group

1220 Total remission of the oblgn

1211 Solidarity not affected by differences in

terms & conditions/forms of

prestation

U Uniform solidarity

V Varied solidarity

1222 Defenses w/c a solidary dr may avail of

Relationship of mutual agency

himself NPO!

1213 Solidary cr cannot assign his rights w/o the

N defenses arising fm the Nature of the

consent of the others

oblgn (paymen, prescription, etc.)

Based on mutual trust & confidence

P defenses personal to him (minority)

1214 To whom payment shall be made?

Reiteration of other Articles (1174, 1262

& 1266)

1212 Beneficial (not prejudicial) acts of solidary cr

No reimbursement

1221 Effect of Loss of thing or impossibility of

solidarity UV!

Dr belatedly remitted is not released fm

O personal to other solidary drs as

Demanding solidary cr

regards that part of debt w/c

they

are liable

Section 5 Divisible & Indivisible Oblgns

B Both parties are guilty of breach of

1223 Effect of divisibility or indivisibility of the

prestations to Chapter 2 none

contract
N None of the parties committed willful

Test of divisibility: WON the prestation is

susceptible of partial performance

Kinds of Division of Things QQI!

or culpable violation of the

agreement
C breach of the contract is committed

Q Qualitative division

by the Cr

Q Quantitative division

1230 Effect of nullity of Principal Oblgn & the

I Ideal division

Penal Clause

Kinds of Indivisibility LCN!

L Legal indivisibility

C4 Extinguishment of Obligations

C Conventional Indivisibility

1231 Causes of Extinguishment PLC3N-ARRP-

N Natural indivisibility (nature of

WaMCEPDUA!

object/subject matter)
1224 Effect of non-compliance w/ the undertaking
of a Joint Indivisible Oblgn
1225 Presumptions of divisibility/indivisibility of
Oblgns

P Payment or performance
L Loss of the thing due
C Condonation or remission of the debt
C Confusion or merger of the rights of
cr & dr

Section 6 Oblgns w/ a Penal Clause

C Compensation

1226 Concept of Penal Clause: accessory oblgn

Nature: substitute for damages & payment of

interests in case of breach of the

oblgn
obligor of his oblgn, & in
breach, to stand as the

substitute

A Annulment
R Rescission
R fulfillment of Resolutory Condition

Purpose: to insure faithful compliance by the

case of

N Novation

for damages &

payment of interests

w/o need

of proving damages.

P Prescription
Wa Waiver or renunciation by the cr
M Mutual Agreement or mutual Dissent
C Compromise 2028
E Expiration of Resolutory Term 1193
P Death of the dr when the oblgn is

Exceptions: (addtl damages are recoverable)

Purely Personal

R - Obligor Refuses to pay the penalty

D Decision or will of one of the parties in

F - Obligor guilty of fraud (dolo) in the

certain contracts like Agency, partnership

fulfillment of the oblgn

& lease of services

S - There is Stipulation

U happening of Unforeseen events 1174

1227 General rule on penalty/exceptions

A Abandonment of the property charged

1228 Proof of actual damages suffered not

w/ an oblgn like the abandonment of an

necessary
1229 Judicial reduction of penalty, when proper
PNI!

interest in a party wall 662

Section 1 Payment or Performance
1232 Payment, define/Kinds VI!

P principal oblgn is Partly complied w/

V Voluntary

N compliance Not in accordance w/the

I - Involuntary

tenor of the agreement

I no performance, the penalty is
Iniquitous or unconscionable
When penalty is not enforceable: CIP-BNC!

Requisites of valid payment PRDPA!

P capacity of the payor Paying
R capacity of the person Receiving
D Delivery of the full amt or the full

C Contrary to morals or good customs

performance of the prestation

I principal oblgn becomes Impossible of

P propriety of the time, place & manner

performance due to FE
P dr is Prevented by the cr

of Payment
A Acceptance of the payment by the cr

1233 When indebtedness is deemed paid?

Upon

Full

&

Complete

S Satisfaction of the money oblgn

Delivery

of

prestation

1246

Rule

when

oblgn

1234 Substantial Compliance of an Oblgn, concept

the thing & not w/ quantity

& effect

1247

1235

is

to

deliver

an

Indeterminate/Generic thing only to Quality of

Incomplete

payment/performance

is

Who

bears

the

extrajudicial

expenses

attendant to the payment?

considered as full compliance

The debtor

1236 Right of the 3P who paid the Oblgn

1248 Partial performance of oblgn is not generally

1237 Consequences of payment made by a 3P w/o

allowed

knowledge or against the will of the dr BS!

1249 No more legal impediment to agree on

B Beneficial reimbursement

payment by foreign currency (RA 8183)/Legal

S cannot compel cr to Subrogate him in

tender, concept

his rights

1250

1238 Payment by 3P who does not intend to be

reimbursed deemed to be donation

Rule

of

Extraordinary

Value of the currency at the time of the

establishment of the oblgn

1239 Capacity to freely dispose of/alienate the

1251 Venue of payment

1240 Persons to whom payment shall be made CSA!

C Cr himself

1241

case

Inflation/Deflation

thing due necessary for validity of payment

in

1.

Place specifically designated

2.

(No agreement) if determinate thing,

S Successor (s) in interest

where the thing might be at the time the

A Any person duly authorized (agent)

oblgn was constituted.

Payment

made

to

the

incapacitated

person/presumption of benefit (no proof needed)

ARC!

3.

(No agreement) domicile of the dr

Subsection 1 Application of payments (AOP)

1252 Right to make Appln of payments belongs

A after payment, the 3P acquires the

primarily to the dr/requisites for a valid AOP by

crs rights (merger of the rights)

the dr DONT!

R Cr Ratifies the payment (ratification)

D all debts are Due & demandable,

C by the crs conduct, the dr has been

except:

led to believe that the 3P had authority to

1.

receive (estoppel)

to the contrary

Dr is also released fm his oblgn AGO!

2.

the appln is made by the

A there was Assignment of rights w/o

party for whose benefit

notice to him

the

G he paid in GF to the legal possessor

term

has

been

constituted 1252(1)

O he made payment to the Original dr

O - theres only 1 dr & 1 cr

1242 Payment in Good Faith

when theres stipulation

payment

is

Not

sufficient

to

True possession of credit vs. Mere

cover/settle all the debts

possession of Document representing the

T dr owes the cr 2/more debts w/c are

credit

of the same kind/identical specie

1243 Writ of garnishment served against the dr of

Requisites for a valid AOP by the cr DARe!

the dr is a bar of payment to the latter

D dr Did not make any designation

1244 No payment or delivery of a different thing,

A dr Assented to the appln made by the

unless cr consents

cr

1245

Dation

pago/adjudication

in
en

payment
pago/datio

(dation
en

en

solutum),

concept/elements MAS!
M existence of Monetary Oblgn

Re cr issued Receipt expressing the AOP

to a particular debt
Limitations on the preferential right of the dr to
choose the debt to be paid DISC-B!

A Alienation to the cr the property by

D dr cannot AOP to a debt not yet

the dr w/ the crs consent

liquidated/Due

I theres a principal oblgn w/c bears

A cr is Absent/unknown, or does not

Interest 1253

appear at the place of payment

S theres a Specific agreement

I cr is Incapacitated to receive the

C the Cr is given the benefit of the

payment at the time it is due

period/term

L title of the oblgn has been Lost

B dr cannot choose to pay a Bigger debt

1257 Consignation must be first announced to the

partially, when payment made can be

cr

applied as full payment to a smaller debt

1258

1253 Directory requirement that if debt produces

Consignation,

concept/requisites

of

consignation EVRPDS!

interest, payment of the principal shall not be

E theres an Existing valid w/c is already

deemed to have been paid until the interests have

due

been covered.

V prior Valid TOP

1254 Guides in determining w/c of the outstanding

R Refusal to accept the payment w/o any

debts is more Onerous or Burdensome

valid reason

1.

Debt w/c bears interest

P theres a Prior Notice of consignation

2.

Oldest ones

D amt of the thing due is Deposited w/

3.

Mortgage oblgn vs. fm current account

the court or competent authority

4.

Mortgage debt vs. Unsecured debt

S Subsequent notice of consignation

5.

Debts covered by guaranty

6.

Any payment by the dr must first be

C property placed in Custodia Legis

applied to the portion Not covered by the

A dr becomes the Agent of the court

suretyship

R consignation has a Retroactive effect

Advances made by the employer for the

E Property is exempted fm attachment

7.

Consequences of the Deposit CARE!

laborers subsistence

or execution

8.

Debts subject to penal clause

1259 Expenses of consignation charged to the cr

9.

Exlusive debt vs. solidary debt

1260 Effect of valid consignation/withdrawal of

10. When Principal debt is guaranted

the thing due or sum deposited, when allowable:

Subsection 2 Payment by Cession

1255

Payment

by

1.

Cession

or

Assignment,

concept/Classes VI!

The

cr

has

not

yet

accepted

the

thing/sum deposited
2.

V Voluntary

The court had not yet made a judicial

declaration that the consignation had been

I Involuntary

properly made

Requisites of voluntary Cession/Assignment P-

1261

CANT!

deposited after acceptance/judicial approval of

P there is plurality of debts

Effect

of

w/drawal

of

the

thing/sum

consignation.

C Complete & partial insolvency on the

Section 2 Loss of the thing Due

part of the dr

1262 Loss of the thing due, concept/Situations

A theres Acceptance by the crs

when the law makes the obligor liable even if the

Property

ceded/assigned

is

not

loss is due to FE:

exempt frm execution

1.

Liability of bailee 1942

T there are at least 2 crs

2.

Liability of depositary 1979

Subsection 3 Tender of Payment & Consignation (TOP&C)

3.

Liability of officious manager 2147

1256 TOP&C, Concept/Situations when Tender is

4.

Acceptance in BF of undue payment

dispensable TRAIL!

5.

Oblgn to deliver a determinate object

T 2/more persons claim the same right

to collect

arising fm criminal act 1268

6.

When dr promised to deliver the same

R w/o just cause, cr Refuses to give a

thing to 2/more persons w/ different

receipt

interests

7.

The

nature

of

the

oblgn

requires

assumption of risk 1174

8.
9.

Presumptions are rebuttable by strong,

clear and convincing evidence

When the oblgn consists in the delivery of

1273 Effect of Remission of principal debt &

a generic thing 1263

accessory debt

When the dr is in default 1165

1274 Presumption when thing pledged is found in

1263

Loss

of

generic

thing,

the possession of the dr or 3P who owns the thing

consequences/exception: generic thing is delimited

1264 Partial loss of the object of the oblgn, may

Pledge (an accessory oblgn) is remitted

Section 4 Confusion or Merger of Rights

extinguish the oblgn as determined by the court

1275

1265 Presumption of negligence on the part of the

concept/requisites SPD!

Confusion

or

merger

of

rights,

dr in possession of the thing, except in case of

S theres merger in the Same person of

natural calamity

the characters of a cr & a dr

1266 Effect of impossibility in oblgn to do/Kinds

P in the characters of a Principal cr & a

of impossibility LP!

Principal dr

L Legal impossibility

D merger is Definite & complete

P Physical impossibility

concurrent amount or value.

1267 Difficulty of service as to be manifest

beyond the contemplation of the parties obligor
is released

1276 Kinds of merger

1.
2.

The dr shall pay for the value of the

1277 Joint oblgn, concept; distinguished frm

solidary oblgn in relation to Confusion/merger

thing for whatever reason, including FE.

1269 Consequences of extinguishment of oblgn by

Joint

oblgn

oblgn

is

partially

extinguished.

loss of the thing sort of subrogation on the part

of the cr to the person of the dr on the latters

rights.

Merger in the person of the guarantor

guaranty is not extinguished.

1268 Oblgn to deliver a certain thing in criminal

offense committed by the dr, & the thing is lost

Merger in the person of the Principal dr or

Principal cr guaranty is extinguished.

Principle of Unforeseen Difficulty of

Service (principle of rebus sic stantibus)

Partial merger up to the extent of the

Solidary

oblgn

oblgn

is

entirely

extinguished.
Section 5 Compensation

Section 3 Condonation or Remission of Debt

1278

1270 Condonation or Remission, concept/kinds EI!

Compensation,

concept

(off-setting

oblgns)/Kinds (origin) CLJF!

E express (formalities reqd on ordinary

C Conventional/voluntary

donation 748 & 749)

L Legal

I implied/tacit

J - Judicial

Requisites PEFAN!
P

renunciation

of

F Facultative (reciprocal oblgns)

of

debt

is

Purely

(extent) TP!

gratuitous

T Total

E Existence of a demandable debt

P Partial

F Formalities reqd by Law on Donation

1279 Requisites of legal compensation PSDLN!

must be complied w/

P each one of the parties is a Principal dr

A Acceptance by the dr

& cr of the other

N what has been condoned/remitted

S both debts consist in a Sum of money,

must Not be inofficious

or if they are consumables, they be of the

1271 Coverage, delivery of private doc evidencing a

Same kind & quality if stated

credit by the cr & defense of dr & his heirs when

D the 2 debts are Due

waiver of action is challenged.

L they be Liquidated & Demandable

1272 Presumption of voluntary delivery of the

N over Neither of them there be any

private doc

retention/controversy, commenced by 3P
& communicated in due time to the dr

1280 Exception to the general rule; Right of the

P there must be Previous valid oblgn

Guarantor to invoke compensation against the cr if

A an Agreement by the parties

the latter demanded payment to the former:

V Validity of the new oblgn

For what the cr owes the principal dr

For what the cr owes the guarantor

Kinds (essence) OSM!

O Objective or real novation

himself

S Subjective or personal novation

P Passive (new dr)

1281 Classes of compensation TP!

A Active (new cr)

T total

M Mixed novation

P partial
1282 Voluntary compensation of Mututal Debts not

(form of their constitution) EI!

E Express

yet due

I Implied

1283 Judicial compensation based on Judgment

1284 Compensation in rescissible or voidable debts

(extent/broad concept) TP!

T Total or Extinctive (requisites) PAVE!

b4 judicially rescinded & annulled

P Previous valid oblgn

1285 Assignment of debts subject to compensation

w/ consent of the debtor

A Agreement of all parties

w/ knowledge but w/o consent of the dr

V Validity of the new one

w/o knowledge of the debtor

E Extinguishment of the old

1286 Compensation takes place Ipso Jure (by

operation of Law & retoacts to the date when all

P Partial or Modificatory
(origin) LC!
L Legal novation

its requisites are fulfilled.

C Conventional novation

1287 Debts or Oblgns not subject to Compensation

BCOG-PG!

(presence or absence of condition) PC!

B oblgns of a Bailee in commodatum

P Pure

C arising fm Contracts of depositum

C Conditional

O fm Oblgns of a depositary
G debts/claims for support due by

1292 Form in the Constitution of novation

Test of incompatibility WON the 2 oblgns can

stand together.

gratuitous title
P consisting in civil liability arising fm

1293 Consent of old dr not necessary; consent of the cr is

Penal offense 1288

mandatory/Forms of Passive subjective novation DE!

D Delegacion (initiative of old dr)

G due to the Govt like taxes, fees, etc.

1288 No compensation in civil liability arising fm

Requisites OAR!

Penal offense

O initiative/proposal of the old dr

satisfaction of oblgn arising fm crime is

A cr Accepts & new dr Agrees

imperative

R old dr is Released fm the oblgn

E Expromision (initiative of 3P)

1289 AOP in Compensation (1252 to 1254 applies)

Requisites TCR!

1290 Time when Compensation takes effect:

Legal by operation of law, even though

T initiative/proposal of the 3P

the parties are not aware thereof

C cr gave his Consent

Voluntary fm the time/day agreed upon

R old cr must be Released

by the parties

1294 Effect of lack of consent on the part of the old dr

Judicial the moment the judgment

1295 Effect of Insolvency of new dr (Delegacion) old dr

becomes final & executor

not liable anymore, except:

Section 6 Novation (animus novandi)

The insolvency was existing

& is of public

1291 General classification of novation OPS!

knowledge when the debt was delegated to the new

O changing of Objects or principal oblgn

dr

P substituting the Person of the dr

S Subrogating a 3P in the rights of the dr
Requisites of valid novation PAV!

The insolvency of the new dr was already existing

& known to the old dr at the time of the delegation
of the debt 1295

Circumstances w/c do not give rise to novation by

delegacion (extinctive novation) JAS!

appurtenant thereto like guaranty are

J when the new dr merely agreed to

transferred to the 3P. However, in

assume a Joint responsibility for the

conventional

oblgn

stipulate.

may

Effect when credit transferred is subject to a

S 3P acted merely as Surety or

condition (suspensive)

1296 Extinction of Principal Oblgn by Novation &

effect on the Accessory Oblgns (AO)

Credit cannot be collected until after the

fulfillment of the said condition

1304 Rule of preference in case of Partial

AO subsists only insofar as they benefit

3Ps who did not give their consent

Subrogation

1297 Effect of invalidity of New Oblgn

subrogation, parties

A 3P is merely an Agent of the old dr

guarantor for the original dr

Credit of the cr as well as all the rights

The original cr shall be preferred to the

new cr

Old one subsists, unless the parties

intended otherwise

Preference applies only to assets still in

the hands of the dr

1298 Effect of invalidity of the Old Oblgn

New one is void, except when annulment

GOD BLESS!

may be claimed only by the dr or when

ratification

validates

acts

w/c

are

voidable.
1299 Effect of the existence of conditions in the
original oblgns on the new oblgns

New one shall also be subject to the same

condition, unless otherwise agreed upon

1300 Subrogation, concept (Active Subjective

Novation)/Kinds of subrogation (their creation) LV!
L Legal (never presumed) 1302
V Voluntary or Conventional subrogation
(extent) TP!
T Total subrogation
P Partial subrogation
1301 Conventional Subrogation

Requires consent of all the parties

Assignment

of

rights/credits

is

not

subrogation consent of the dr is not

necessary 1626
1302 Presumptions of Legal subrogation expressly
provided by the law CTI!
C Cr pays another preferred cr, even
w/o the drs knowledge
T 3P (not interested in the fulfillment)
pays w/ the express/tacit approval of the
dr
I (even w/o knowledge of the dr) person
Interested in the fulfillment of the oblgn
pays, w/o prejudice to the effects of
confusion as to the payors share
1303 Effect of Subrogation