What Are The Causes of Extinguishment of Obligation?
What Are The Causes of Extinguishment of Obligation?
What Are The Causes of Extinguishment of Obligation?
a. Payment or performance
b. Loss of the thing due
c. Condonation or remission of the debt
d. Confusion or merger of the rights of creditor and debtor
e. Compensation
f. Novation
(1) Death of a party in case of an obligation requiring personal service (Art. 1311,
par. 1);
Article 1232 provides that payment means not only the delivery of money but also the
performance, in any other manner, of an obligation.
What is the effect of substantial performance by the debtor, without entirely completing
his obligation?
“The above rule (Art. 1234.) is adopted from American Law. Its fairness is evident. In
case of substantial performance, the obligee is benefited. So the obligor should be allowed to
recover as if there had been a strict and complete fulfillment less damages suffered by the
obligee. This last condition affords a just compensation for the relative breach committed by the
obligor.” (Report of the Code Commission, p. 131.)
If a person pays the obligation of the debtor without the latter's consent, will there be
subrogation?
None. If the payment is without the knowledge or against the will of the debtor, the third
person cannot compel the creditor to subrogate him in the latter’s accessory rights of mortgage,
guaranty, or penalty. Since the provision of Article1237 is for the benefit of the debtor, the
subrogation can only take place with his consent. The third person who without necessity paid
under such condition is amply protected by his right to reimbursement.
What is the effect of the payment to person who is incapacitated to administer his
property?
In the absence of this benefit, the debtor may be made to pay again by the creditor’s
guardian or by the incapacitated person himself when he acquires or recovers his capacity. Proof
of such benefit is incumbent upon the debtor who paid.
The four special forms of payment under the Civil Code are: