- applies only to solidary obligations, not joint - if the thing has been lost or if the prestation
ones. has become impossible without the fault of the
solidary debtors, the obligation is extinguished.
Art 1217
- If there was fault on the part of any one of
- payment is one of the ways by which an them, all shall be responsible to the creditor, for
obligation is extinguished and consists in the the price and the payment of damages and
delivery of the thing or the rendition of the interest, without prejudice to their action
service which is the object of the obligation. against the guilty or negligent debtor. ( they can
-payment by one solidary creditor extinguishes institute action against the guilty debtor though
the obligation. they are still responsible to the creditor)
- if two or more solidary creditors offered to - If through a fortuitous event, the thing is lost
pay, creditor may choose which to accept. or the performance has become impossible
after one of the solidary debtors has incurred in
-creditor may proceed against any one of the delay through the judicial or extrajudicial
solidary creditors. demand upon him by the creditor, the
provisions of the preceding paragraph shall
-paying solidary creditor is entitled to
apply.
reimbursement from his co-debtors
Art 1218
Art 1222
- if payment is made after the obligation has
prescribed or became illegal, no reimbursement -solidary debtor may raise defenses:
from co-debtors may be made.
1. those derived from the nature of the
Art 1219 obligation
- when one co-debtor paid the debt, and 2. those personal to the debtor
afterwards his share was remitted (remission)
by the creditor, he still has to reimburse said Art 1223
debtor, to prevent fraud and give justice to the - divisibility and indivisibility refers to the nature
paying debtor. If previous, no more. of the obligation.
Art 1220 - if in doubt, resolve in favor of divisibility.
- if remission of the whole obligation is made as Article 1224:
obtained by one of the solidary debtors, no
reimbursement can be made. - object is indivisible and parties are joint
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
- if solidary and indivisible, he has to pay for the Art 1228
entire obligation, but he will be reimbursed by
his solidary debtors. -no need of actual damage, only failure to
perform the obligation on the specified period
Art 1225: or when conditions arise, penalty can be
demanded.
- definite things and not susceptible of partial
performance are deemed indivisible. Art 1229
If execution of a number of days of work, The judge may equitably reduce the penalty if
accomplishment of work by metrical units, or there is partial or irregular
analogous things which are susceptible of compliance/performance by the debtor. Even if
partial performance, are divisible obligation. no performance, if the penalty is iniquitous or
unconscionable, it can also be reduced.
- even if physically divisible, can be indivisible if
provided for by law. Art 1230
- principal and penalty cannot be demanded at Death of a party in case of personal obligation,
resolutory term, change of civil status,
the same time.
compromises, mutual dissent, impossibility of
fulfillment, and fortuitous events also
extinguish obligations.
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
Art 1232 without the knowledge or will of the debtor,
only to what the debtor has benefited upon
Payment is not only through delivery of money (not entitled to subrogation, where rights
but also performance of obligation. comes to the new creditor).
There must be acceptance, expressly or Art 1237
impliedly, for payment to properly exist.
The one who paid without the knowledge or
Art 1233 will of the debtor, cannot be subrogated in the
The payment or performance must be delivered rights of the creditor.
or rendered completely. Subrogation – the act of putting somebody into
Creditor has burden of proof that valid debt the shoes of the creditor, hence, enabling the
exists. former to exercise all the rights and actions that
could have been exercised by the latter
Debtor has the burden of proof that the same is
paid. (receipt is the best evidence) Subrogation distinguished from reimbursement
P. 355
Art 1234
Art 1238
In case of substantially performed in good faith,
obligor may recover as if there has been strict - if the third person pays the creditor and don’t
and complete fulfillment, minus the damage want a reimbursement, it is a donation, but
suffered by the obligee which he can deduct to such should be with the consent of the debtor.
what may be recovered. Why? No one should be compelled to accept
the generosity of another. But, whether with
One cannot just rescind if there is slight breach; consent or not, payment is valid for the
court can even give period for fulfillment of creditor. In any case, third person can only
obligation. recover the extent to which the debtor have
benefited from his payment.
1235
Art 1239
When the obligee, even if he knows the
incompleteness or irregularity of performance, - if lacking the free disposal of the thing and
accepts it without expressing protest or lack of capacity to pay, payment is not valid.
objection, the obligation is deemed complied
with Art 1240
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
Art 1241 Garnishment – proceeding by which a debtor's
debtor is subjected to the payment of his own
Payment to an incapacitated person debt to another is known as garnishment. But
Valid only if: payment to the 3rd person must be adjudged
that he is the creditor. Any payment made by
1 if he has kept the thing debtor to creditor is invalid.
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
2. the dation in payment will not prejudice the Art 1251
other creditors
Payment shall be in the place designated in the
3. the debtor is not judicially declared insolvent. obligation.
4. when a joint debtor pays his share or the Assignment in favor of creditors
creditor demands same
Tender of payment and consignation.
p. 377
Requirements of application of payment:
Art 1249
1. there must be two ore more debts
Payment should be made in legal currency/legal
tender. 2. the debts must be of the same kind
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
4. all debts are due 2. more than one creditor.
5. the payment is not enough to extinguish all 3. complete or partial insolvency of debtor
the debts
4. abandonment of all debtor's property not
How application of payment is made: exempt from execution ( unless validly waived)
in favor of creditors.
1. debtor makes the designation
5. acceptance or consent on the part of the
2. if not, creditor makes it, stating in the receipt creditors.
that he issues.
Creditors are not owners but mere assignees
3. by operation of law. with authority to sell. It is dation in payment
If creditor makes application without where there is transfer of rights and ownership.
knowledge and consent of the debtor, not valid. Distinguish dation in payment from cession
Art 1253 P.412
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
2. he is incapacitated to receive payment at the (there is a pending case/suit to compel creditor
time payment is due. to accept. Without it, no consignation can be
made.)
3. without just cause, he refuses to give a
receipt. Art 1258
4. when two or more persons claim the same Things due are deposited in court. Can be done
right to collect. (interpleader action) only if with valid tender and notification of
creditor.
5. when the title of the obligation is lost.
Art 1259
Consignation without tender of payment – debt
is not extinguished. Expenses of a proper consignation shall be
charged against the creditor/
Creditor justified in refusing tender:
Art 1260
1. tender of payment is not valid.
After consignation, debtor can ask for
Requisites: cancellation of obligation. The thing can be
1. must be in legal tender withdrawn however before acceptance of
consignation or before judicial decision of
2. it must include whatever interest is due cancellation of obligation.
Interests run until principal is paid if Withdrawal of the thing after consignation but
consignation after tender of payment is with consent of the creditor, he loses
delayed. preference over such, and co-debtors,
guarantors and sureties are released. But
Art 1257
obligation still remains.
Consignation must be first announced to those
Loss – impossibility of performance.
interested in the fulfillment of the obligation
before it releases the debtor. Art 1262
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
Art 1263 Art 1270
For generic thing, loss or destruction does not Condonation or remission is essentially
extinguish obligation. gratuitous and requires acceptance by obligor,
expressly or impliedly.
Art 1264
Inofficious donations – involuntary. Express
Courts will determine whether partial loss donations must comply with forms of donation.
tantamounts to extinguishment of obligation.
Requisites of remission
Art 1265
1. there must be an agreement
When the thing is lost in the possession of the
debtor, he is presumed at fault unless contrary 2. parties must be capacitated and must
is proved. But will not apply if through natural consent
calamities.
3. there must be subject matter
Art 1266
4. the cause or consideration must be liberality
Debtor shall be released of obligation if it
becomes legally or physically impossible, 5. obligation remitted must have been
without his fault. demandable at the time of remission
When the service has become so difficult, 7. formalities of a donation are required in the
obligor can be released, in whole or in part. case of an express remission
Personal obligation only, for real obligation, this 8. waivers or remissions are not to be presumed
does not apply. generally, but must be convincingly shown.
Art 1268 Art 1271
When debt of a determinate thing is from a Delivery of a private document evidencing a
criminal offense, debtor is not exempted from credit made voluntarily by the creditor to the
payment of its price regardless of cause of loss, debtor, presumes renunciation of action which
unless when payment had been given, it was creditor had against debtor. Remission is
refused without justification (mora accipiendi) presumed here.
Art 1269 In order to nullify these, it should be claimed as
Creditor has rights of action against third inofficious, but debtor may uphold it by proving
persons who is the cause of the loss of the thing that delivery of document was made in virtue of
of the obligation. payment of the debt.
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
Art 1272 Confusion does not extinguish a joint obligation
except the share corresponding to the debtor or
If a private document containing debt is found creditor.
in debtor's possession, it is presumed that the
creditor delivered it voluntary, unless contrary Article 1278
is proved.
Compensation happens when to persons are
- presumption of voluntary delivery. To rebut it, debtor and creditor of each other.
only receipt of payment must be presented to
prove debt is already paid. - it is the extinguishment in the concurrent
amount of the obligations of those persons who
Art 1273 are debtor and creditor of one another.
Merger benefits the guarantor. But confusion Presupposes two debts and two credits.
does not extinguish the obligation.
Art 1277
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
Art 1280 Cases covered:
Guarantor may set up compensation as regards 1. assignment made with the consent of the
what the creditor may owe the principal debtor. debtor
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
the other, a balance still subsists. Also debt, and thus excuses himself. Here, the
extinguishes accessory obligations. creditor and the new and old debtor must
agree.
Art 1291
Old debtor must be released from obligation,
Obligation may be modified by: otherwise no expromision.
1. changing their object or principal conditions Expromision requisites:
2. substituting the person of the debtor 1. the initiative must come from a third person
3. subrogating a third person in the right of the 2. the new debtor and the creditor must
creditor.
consent.
novation requisites: 3. the old debtor must be excused or released
1. existence of a valid old obligation. from his obligation.
2. intent to extinguish or to modify the old Debtor upon his payment gives him rights under
obligation by substantial difference 1236 and 1237.
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Reviewer in Obligations and Contracts
Nestor Jeremy B. Moreno
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