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Obligations: Modes of Extinguishment and Payment in Philippine Law, Lecture notes of Law

University of San Jose Recoletos (USJR)Law

A detailed explanation of the different modes of extinguishing obligations in philippine law, focusing on payment or performance, loss of the thing due, condonation or remission of debt, confusion or merger of rights, compensation, and novation. It also explores the concept of substantial performance in good faith and the role of third-party payments. The document uses examples and illustrations to clarify the legal concepts and principles.

Typology: Lecture notes

2021/2022

Uploaded on 08/31/2024

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OBLICON NOTES
Article 1231: EXPLAINES DIFFERENT MODES OF EXTINGUISHMENTS
1. By payment or performance = ang I discuss
2. By loss of the thing due:
3. By the condonation or remission of the debt
4. By the confusion or merger of the rights of the creditor and debtor
5. Compensation
6. Novation
Article 1232: Payment means not only the delivery of money but also the performance in any
other manner of an obligation.
Dapat nay pre-existing obligations, kay if walay pre-existing obligation walay need I obliged or
bayaran.
Example: Si pogi is gitagaan siyag option to buy a car for 1 week, if dili pa siya makadecide
within the time period na paliton niya ang car wala pa siyay obligation, pero if modecide na
mopalit si pogi ato na car within the given time period na mapalit niya kay naa na siyay
obligation to pay sa iyang part. Tas in order to extinguish the obligation kinahanglan ni pogi
mobayad sa car.
1232. Payment is to be done in the payment of money or delivery of a thing if real obligation
siya or obligation to give and labot pud ang obligation to do or not to do if hisgotan kay
personal obligation.
Meaning payment or the mode of extinguishment of the obligation could be giving or doing or
not doing.
Article 1233: A debt shall not be understood to have been paid unless the thing or service in
which the obligation consists has been completely delivered or rendered, as the case may be.
Ang kani na article nagatubag sa pangutana kung kanusa ma consider na nabayran na ang
obligation or na perform na ang obligation. Naa daw duha ka requisites ang kani na ar ticle
which is ang:
a. Integrity of the prestation
ang kani siya meaning niya is ang prestation or ang obligation must be fulfilled completely dili
siya pede partial/half lang ang pag deliver or irregular kay if partial ra, dili ma extinguish ang
obligation.
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OBLICON NOTES

Article 1231: EXPLAINES DIFFERENT MODES OF EXTINGUISHMENTS

  1. By payment or performance = ang I discuss
  2. By loss of the thing due:
  3. By the condonation or remission of the debt
  4. By the confusion or merger of the rights of the creditor and debtor
  5. Compensation
  6. Novation Article 1232 : Payment means not only the delivery of money but also the performance in any other manner of an obligation. Dapat nay pre-existing obligations, kay if walay pre-existing obligation walay need I obliged or bayaran. Example: Si pogi is gitagaan siyag option to buy a car for 1 week, if dili pa siya makadecide within the time period na paliton niya ang car wala pa siyay obligation, pero if modecide na mopalit si pogi ato na car within the given time period na mapalit niya kay naa na siyay obligation to pay sa iyang part. Tas in order to extinguish the obligation kinahanglan ni pogi mobayad sa car.
  7. Payment is to be done in the payment of money or delivery of a thing if real obligation siya or obligation to give and labot pud ang obligation to do or not to do if hisgotan kay personal obligation. Meaning payment or the mode of extinguishment of the obligation could be giving or doing or not doing. Article 1233: A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. Ang kani na article nagatubag sa pangutana kung kanusa ma consider na nabayran na ang obligation or na perform na ang obligation. Naa daw duha ka requisites ang kani na ar ticle which is ang: a. Integrity of the prestation ang kani siya meaning niya is ang prestation or ang obligation must be fulfilled completely dili siya pede partial/half lang ang pag deliver or irregular kay if partial ra, dili ma extinguish ang obligation.

Example: Si Pogi kay bound to pay Ganda 100 pesos tapos ang gihatag ni Pogi is 50 ra. Pede morefuse si Ganda sa kwarta na gihatag ni Pogi kay ang fulfillment wa man nahuman kay integrity of the prestation man siya, in which kinahanglan fully paid jud. Although naa ni siyay exemptions. b. Identity of the prestation kung unsa inyong gi isturyahan na prestation or obligation mao jud dapat to ang ihatag or buhaton (if performance). Example: The obligation is to give a car, dili ma extinguish ang obligation if balay imong ihatag. Burden (Dapat) of proving payment or ang dapat mo show og proof of payment. At first si creditor nay burden of showing na nay valid obligation na nag exist, si debtor ang nay burden of proof na nabayran na niya or nabuhat na niya ang obligation. Siya ang nay legal certainty to show proof na nabuhat na ang obligation or na discharge na niya ang obligation. Pede ra if magbayad sa utang then mangayo ug resibo for the proof of payment  Article 1234: If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillness, less damage suffered by the oblige. Also known as The Substatial Performance in Good Faith Rule. Usa ni siyas exception sa dapat ang payment kompleto or buo ang bayad para maextinguish ang obligation. Naa ni duha ka requisites in which are: Substantial Performance ug dapat in Good Faith. Dili siya pede na substantial ra dapat in good faith ug substantial jud siya. Example: Pogi obliged himself to sell 100 bags of cement to Ganda for a certain price dayun despite the diligent effort sa part ni Pogi, dili madeliver ni Pogi ang 100 bags of cement kay Ganda nya ang kaya ra madeliver ni Pogi ato na time is 95 bags of cement ra kay tungod nay “valid rason” si Pogi kay naay shortage sa cement. Pero si Pogi diri ganahan jud niya ma comply ang obligation ang pag deliver pero di niya mabuhat kay beyond his control kuwang or nagkashortage ang cement in which he acted in good faith kay di baya niya macontrol ang cemento lisod pug mag kawt siyag wala didto. Maka recover pa sa pag deliver niya Pogi kay naa may complete delivery pero ma kwaan ang price na bayrunon ni Ganda since 95 raman ka semento ang na deliver ni Pogi. So since Pogi acted in good faith naningkamot jud siya mo oblige sa obligation pero lagi nagkaproblema na wala niya naexpect or di niya control, mabayran gihapon siya ni Ganda pero much lesser lang kibali ang bayran ni Ganda is ang 95 lang.

pede si Stranger na way labot sa kontrata or way interest sa kontrata na pede siya mobayad, in which pede modawat si creditor gikan niya. End of Article 1236 Paragraph one Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor. Unsay epekto sa payment sa us aka third person or stranger nya wa siyay labot or interest sa kontrata pero ganahan siya magbayad so unsay epek ani? So ibahin nato ni siyag 2 ka concept

  1. With the Debtors’ Knowledge and Consent. I. Reimbursement If nibayad si Stranger or Third Person tas kahibaw si Debtor ug nisugot siya pede makademand si Stranger sa iyang gibayad in reimbursement ba ron. II. Subrogation The Stranger steps into the shoes of the creditor, ug sa bisaya pa siyay mahimong bago nga creditor kay debtor after gibayaran ni Stranger ang utang ni Debtor sa usa pa ka Creditor si stranger na ang mahimong bagong Creditor.
  2. Without the Debtors’ Knowledge and Consent.
  3. Beneficial Reimbursement: Walay subrogation (subrogation meaning is ang stranger or ang nag bayad na ang mahimong creditor) or unsa paman. Ang ma recover ra ni Stranger is ang na benefit ra ni Debtor sa gibayad ni Stranger. Example: Pogi nay utang kay Ganda na 100 pesos tas naa pud si Beauty which is ang stranger sa obligation, si Beauty ni offer na siyay mobayad sa 100 pesos. Sa diri si Ganda kay nay right na dawaton or di dawaton ang bayad ni Beauty. Nya kay gidawat man ni Ganda ang payment ni Beauty. Example/Question: Can Beauty recover from Pogi? Wa kahibaw si Pogi na gibayran ni Beauty: Unknown to beauty nag bayad na deay pag una si Pogi ug katunga which is 50 pesos pede ra pangayuon ni Beauty ang 50 pesos na gibayad ni Beauty kay mao ramay na benefit ni benefit ni Pogi kang Beauty. Kahibaw si Pogi na gibayran ni Beauty: Pede mangayo si Beauty sa full payment sa utang kang Pogi or kibali si Beauty na ang bago na creditor ni Pogi instead ni Ganda. Pede makarecover with the rights of subrogation or ang gibayad + subrogation ang ihatag ni Pogi.

Sample Problem: a. answer: X cannot foreclose mortgaged property kay wala man siyay consent, wala siyay legal subrogation, ang kaya ra unta niyang buhaton is mangayo ug reimbursement pero insolvent naman si D kay insolvent man siya so wala na. b. answer: Diri pede na ma foreclose ni X ang mortgage ni D kay kahibaw man si D ug nisugot man si D na mobayad si X sa utang ni D tapos na insolvent man siya nya kay naa may subrogation pede ma foreclose ni X ang mortgage ni D. Article 1237: Whoever pays on behalf of the debtor without the knowledge or against the will of the latter, cannot compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty. Recourse – pede lain ang gamiton or pangayuon sa fulfillment or pede kwaon niya imong mortgage as a substitute or kwarta jud. ^ SUBROGATION PLUS PEDE NIYA ILISAN ANG OBLIGATION PEDE SIYA MANGAYO FOR ^ MORTGAGING ASIDE FROM PAG PANGAYO SA AMOUNT SA UTANG ANG UTANG RAJUD IYANG MAPANGAYO

  1. Answer: Yes since donation man lage, nya nidawat si Ganda in behalf of Pogi pud bisag way intention si Pogi na ulian ang ihatag ni Beauty nya kahibaw si Beauty na di siya ulian ni Pogi, in which dontation nani. So yes extinguished na ang obligation.
  2. Answer: No since kahibaw naman si Beauty na di siya ulian ni Pogi nya nibayad gihapon si Beauty. Article 1239: In obligations to give, payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid, without prejudice to the provisions of Article 1427 under the Title on “Natural Obligations.” Ang kani na article talks about the effect of payment made by a incapacitated person. Free disposal - Free disposal of the thing due means that the thing to be delivered must not be subject to any claim or lien or encumbrance of a third person Capacity to alienate – the person is not incapacitated to enter a contract or to make a disposition of a thing Ang pasabot ra ani is ang bayad sa incapacitated person kay dili siya valid dili kadawat ang creditor sa bayad sa usa ka incapacitated person dili pud siya compelled na modawat.