HRM Module 1 Week 3 Page 4
HRM Module 1 Week 3 Page 4
HRM Module 1 Week 3 Page 4
I.Coverage
CHAPTER 4- EXTINGUISHMENT OF OBLIGATIONS
General Provisions Article 1231
SECTION 1 Payment or Performance Articles 1232-1251
SUBSECTION 1. Application of Payments Article 1252-1254
SUBSECTION 2. Payment by Cession Article 1255
SUBSECTION 3. Tender of Payment and Consignation Article 1256-1261
SECTION 2 Loss of the Thing Due Article 1262- 1269
SECTION 3 Condonation or Remission of the Debt Article 1270-1274
SECTION 4 Confusion or Merger of Rights Article 1275-1277
SECTION 5 Compensation Article 1278-1290
SECTION 6 Novation Article 1291-1304
II.Learning Objectives
At the end of the Chapter, the student should be able to:
1. Master the different modes of extinguishing obligations, as well as the respective requisites;
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. (1187)
REMISSION- is an act of liberality by which the obligee, without receiving any price or equivalent, renounces the
enforcement of the obligation, as a result his right against the debtor. (4 Sanchez Roman 422)
While a person may make donations, no one can give more than that which he can give by a testamentary will,
otherwise, the excess shall be inofficious and shall be reduced by the Court accordingly.
Like for example, a part of the testator’s property called legitimate cannot be disposed of because the law has
reserved it from certain heirs called the compulsory heirs.
Ex. RIC owes LEN P1, 000.00. When the debt matured LEN told RIC that he not pay the debt since he was
condoning it. RIC, in turn, expressed his gratitude. Here, the debt has been extinguished by remission.
Art. 1271. The delivery of a private document evidencing a credit, made voluntarily by the creditor to the
debtor, implies the renunciation of the action which the former had against the latter.
If in order to nullify this waiver it should be claimed to be inofficious, the debtor and his heirs may uphold it
by proving that the delivery of the document was made in virtue of payment of the debt. (1188)
Art. 1272. Whenever the private document in which the debt appears is found in the possession of the
debtor, it shall be presumed that the creditor delivered it voluntarily, unless the contrary is proved. (1189)
Ex. RIC owes LEN P10, 000 evidenced by a promissory note. The note as signed by RIC was given to LEN.
If the promissory note is voluntarily delivered to RIC, the presumption is that the debt must have been paid
by RIC.
It is known that RIC has not yet paid LEN; it must be presumed that the obligation has been remitted.
Suppose it is not known how RIC came into possession of the promissory note, the presumption is that it
was voluntarily delivered by LEN unless LEN proves to the contrary.
Art. 1273. The renunciation of the principal debt shall extinguish the accessory obligations; but the waiver
of the latter shall leave the former in force. (1190)
Ex. JUNGKOK owes SKYE P10, 000 with TOMMY as guarantor. The principal debt here is the P10,
000 while the accessory obligation is the guaranty of TOMMY. The remission of the debt of
JUNGKOK by SKYE extinguishes the guaranty of TOMMY. But if only the guaranty of TOMMY is
condoned, the obligation of JUNGKOK shall remain in force.
Art. 1274. It is presumed that the accessory obligation of pledge has been remitted when the thing pledged,
after its delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the
thing. (1191a)
PLEDGED- is a contract by virtue of which the debtor delivers to the creditor or to a third person a movable or
instrument evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with
the understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fruits and
accessions.
If the thing pledged is found in the hands of debtor or the third person, only the accessory obligation of pledge is
presumed remitted, not the obligation itself.
Ex. SILVER delivers to IRISH his diamond ring in pledge to guarantee the payment of loan. If later on the
ring is found in the possession of SILVER, the presumption is that IRISH has agreed to the loan without the
pledge. IRISH may prove that she returned the ring to SILVER upon the latter’s request to be delivered back
to him.
1. Cabulay, D. and Carpio, C. (2014). Philippine Tourism Laws, (2nd ed.). Philippines. Rex Bookstore, Inc
2. Javier, Nancy Joan M.,(2012).Tourism Laws, 3rd ed.Philippines. Central Bookstore
3. Soriano, Fidelito R.(2011).Obligations and Contracts.GIC Enterprises
4. www.lawphil.net
5. www.supremecourt.gov.ph