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    Commerce, or Disappears in Such A Way That Its Existence Is Unknow or It Cannot Be Recovered. (Art. 1189, NCC)

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    VIRILITER AGITE
    The document outlines various ways that obligations can be extinguished, including: 1. Loss of the thing due, such as if it perishes or disappears, extinguishing the obligation. Partial loss may also extinguish the obligation depending on how important the loss is. 2. Impossibility of performance, such as if the prestation becomes legally or physically impossible without fault of the debtor. 3. Extreme difficulty of performance due to unforeseen events that make the service manifestly beyond what was contemplated, allowing partial or full release of the obligor. 4. Condonation or remission of the debt by the creditor, an act of liberality whereby the creditor renounces

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    Commerce, or Disappears in Such A Way That Its Existence Is Unknow or It Cannot Be Recovered. (Art. 1189, NCC)

    Uploaded by

    VIRILITER AGITE
    23 views6 pages
    The document outlines various ways that obligations can be extinguished, including: 1. Loss of the thing due, such as if it perishes or disappears, extinguishing the obligation. Partial loss may also extinguish the obligation depending on how important the loss is. 2. Impossibility of performance, such as if the prestation becomes legally or physically impossible without fault of the debtor. 3. Extreme difficulty of performance due to unforeseen events that make the service manifestly beyond what was contemplated, allowing partial or full release of the obligor. 4. Condonation or remission of the debt by the creditor, an act of liberality whereby the creditor renounces

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    The document outlines various ways that obligations can be extinguished, including: 1. Loss of the thing due, such as if it perishes or disappears, extinguishing the obligation. Partial loss may also extinguish the obligation depending on how important the loss is. 2. Impossibility of performance, such as if the prestation becomes legally or physically impossible without fault of the debtor. 3. Extreme difficulty of performance due to unforeseen events that make the service manifestly beyond what was contemplated, allowing partial or full release of the obligor. 4. Condonation or remission of the debt by the creditor, an act of liberality whereby the creditor renounces

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    23 views6 pages

    Commerce, or Disappears in Such A Way That Its Existence Is Unknow or It Cannot Be Recovered. (Art. 1189, NCC)

    Uploaded by

    VIRILITER AGITE
    The document outlines various ways that obligations can be extinguished, including: 1. Loss of the thing due, such as if it perishes or disappears, extinguishing the obligation. Partial loss may also extinguish the obligation depending on how important the loss is. 2. Impossibility of performance, such as if the prestation becomes legally or physically impossible without fault of the debtor. 3. Extreme difficulty of performance due to unforeseen events that make the service manifestly beyond what was contemplated, allowing partial or full release of the obligor. 4. Condonation or remission of the debt by the creditor, an act of liberality whereby the creditor renounces

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    of 6

    MODES OF EXTINGUISHING OBLIGATIONS:

    OUTLINE NOTES
    LAW 121/OBLIGATIONS & CONTRACTS
    SECTIONS JD1A & JD1B
    By: JEN N. ASUNCION

    LOSS OF THE THING DUE (Art. 1262, NCC)

    LOSS DEFINED. It is understood that a thing is lost when it perishes, or goes out of
    commerce, or disappears in such a way that its existence is unknow or it cannot be
    recovered. (Art. 1189, NCC)

    NB: Broadly speaking, loss (as a cause for extinguishment of the


    obligation) refers to the impossibility of the performance of
    the obligation.

    ▪ The impossibility which extinguishes obligation refers to that which occurred AFTER
    the creation of the obligation. If the impossibility existed AT THE TIME of the creation
    of the obligation, it is VOID AB INITIO.

    ▪ The extinguishment of an obligation which has become impossible to perform


    follows from the principle that no person shall be liable for fortuitous event, or those
    which could not be foreseen, or which, though foreseen, were inevitable. (Art.
    1174, NCC)

    PARTIAL LOSS. Only a portion of the thing is lost or destroyed, or when it suffers
    depreciation or deterioration.

    GENERAL RULE: Partial loss of the object of the obligation does not extinguish the
    obligation.

    Example: A is obliged to deliver to B a specific car. Before the


    delivery, the wheels were destroyed by a typhoon. This is
    partial loss will not amount to extinguishment of the obligation.

    EXCEPTION: If the loss is partial, the courts shall determine whether, under the
    circumstances, the partial loss is so important as to extinguish the obligation. (Art. 1264,
    NCC)

    Example: In the above example, if the engine was lost or


    destroyed by the typhoon then the courts will determine if the
    loss is so important as to extinguish the obligation.

    GENERAL RULE: An obligation to deliver a determinate thing shall be extinguished if it


    should be lost or destroyed without the fault of the debtor, and before he has incurred in
    delay.

    1
    EXCEPTIONS: The obligation is not extinguished, and the debtor is thus liable for damages,
    in any of the following cases:

    a. When, by LAW, the obligor is liable even for fortuitous events. (Arts. 1262 and 1174,
    NCC)

    Example: The bailee (Art. 1942, NCC); Depositary (Art. 1979,


    NCC); and, the officious manager (Art. 2147, NCC) are, by
    law, liable for fortuitous events under certain circumstances.
    (Please check these articles)

    b. When, by STIPULATION, the obligor is liable even for fortuitous events. (Arts. 1262
    and 1174, NCC)

    c. When the nature of the obligation requires assumption of risk. (Arts. 1262 and 1174,
    NCC)

    Example: Carnapping is a normal business risk of those


    engaged in the repair of motor vehicles. Robbery for those
    engaged in pawnshops.

    d. When the obligor is guilty of CONTRIBUTORY FAULT or NEGLIGENCE. (Arts. 1262 and
    1170, NCC)

    PRESUMPTION: Whenever the thing is lost in the possession of


    the debtor, it shall be presumed that the loss was due to his
    fault:

    (1) Unless there is proof to the contrary, and without prejudice to


    the provision of Art. 1165, NCC. (Art. 1265, NCC); or,

    (2) Except in case of earthquake, flood, storm, or other natural


    calamity. (Art. 1265, NCC)

    e. When the loss or impossibility occurred after the obligor has incurred in DELAY.
    (Arts. 1262 and 1165, NCC)

    f. When the obligor has promised to deliver the same thing to two or more persons
    who do not have the same interest. (Art. 1165, NCC)

    g. When the obligation to give the thing due arose from a CRIMINAL OFFENSE. (Art.
    1268, NCC)

    EXCEPT: Unless the thing having been offered by him to the


    person who should receive it, the latter refused without
    justification to accept it. (Art. 1268, NCC) (Mora Accipiendi)

    2
    Example: THEFT – Accused is obliged to return the object of
    the crime. In case of loss, he shall be liable for indemnity or
    value of the thing.

    h. When the obligation is to deliver a GENERIC THING. (Art. 1263, NCC)

    GENUS NUNQUAM PERIT – Genus never perishes.


    An obligation to give a generic thing never perishes;
    therefore, it is not excused by fortuitous event.

    CREDITOR’S REMEDY

    The obligation having been extinguished by the loss of the thing, the creditor shall have
    ALL the rights of action which the debtor may have against third persons by reason of the
    loss. (Art. 1269, NCC)

    Example: The creditor may seek recourse to the insurance


    indemnity for the thing lost.

    EFFECT ON RECIPROCAL OBLIGATIONS. In reciprocal obligations, the release of the debtor


    due to loss or impossibility also releases the creditor from the counter-prestation, because
    each obligation depends on the other.

    IN OBLIGATIONS TO DO

    1. IMPOSSIBILITY. The debtor in obligations to do shall also be released when the


    prestation becomes legally or physically impossible without the fault of the debtor.
    (Art. 1266, NCC)

    2. EXTREME DIFFICULTY DUE TO UNFORESEEN EVENTS. When the service has become
    so difficult as to be manifestly beyond the contemplation of the parties, the obligor
    may also be released therefrom, in whole or in part. (Art. 1267, NCC)

    This is the equivalent of partial loss in obligations to give.

    NB: Art. 1267, NCC is said to be based on the principle of REBUS SIC STANTIBUS,
    under which the parties are considered to have stipulated in the light of certain
    prevailing conditions, and once these conditions cease to exist, the contract also
    ceases to exist. However, Art. 1267 is not an absolute application of the principle
    of rebus sic stantibus, which would endanger the security of contractual relations.
    The parties to the contract must be presumed to have assumed the risks of
    unfavorable developments. It is therefore only in absolutely exceptional changes
    or circumstances that equity demands assistance for the debtor.

    NB: If the performance has become impossible altogether, Art. 1266 should be
    applied.

    3
    CONDONATION OR REMISSION OF THE DEBT

    A. IN GENERAL:

    1. CONDONATION OR REMISSION DEFINED. An act of liberality whereby the creditor,


    without receiving any equivalent, renounces the enforcement of the obligation,
    which is accordingly extinguished in its entirety or in that part remitted.

    2. GRATUITOUS. Condonation or remission is essentially gratuitous and requires the


    ACCEPTANCE of the obligor. (Art. 1270, NCC)

    It is an essential characteristic of remission that it be


    gratuitous, that there is no equivalent received for the benefit
    given; once such equivalent exists, the nature of the act
    changes.

    (a) It may become dation in payment when the creditor receives


    a thing different from that stipulated; or,

    (b) It may become novation, when the object or principal


    conditions of the obligation should change; or,

    (c) It may become a compromise, when the matter renounced


    is in litigation or dispute and in exchange of some concession
    which the creditor receives.

    3. GOVERNING LAW. Condonation is essentially donation of the credit to the debtor


    and is thus subject to the rule on donations with respect to acceptance, amount,
    and revocation.

    (a) Condonation must be accepted by the debtor.

    QUESTION1: How can a debt condoned by the creditor but refused


    acceptance by the debtor be extinguished eventually?

    (b) The condonation is subject to the rule on inofficious donations (the amount
    condoned cannot be more than what the creditor may give by will. (Art. 1270
    in rel. to Art. 752, NCC)

    4. REQUISITES OF CONDONATION OR REMISSION.

    (a) It must be gratuitous;


    (b) It must be accepted by the obligor;
    (c) The parties must have capacity;
    (d) The condition must not be inofficious; and,
    (e) The condonation must comply with the forms of donation, if it is an express
    condonation.

    4
    5. KINDS OF CONDONATION.

    A. As to form:

    o Express – made in accordance with the formalities prescribed by law


    for donations;
    o Implied – It is not made in accordance with the formalities prescribed
    by law for donations, but it can be deduced from the act of the obligee
    or creditor.

    B. As to extent:

    o Total – entire obligation is extinguished.


    o Partial – refers only to the principal or to the accessory obligation or to
    an aspect thereof which affects the debtor.

    C. As to constitution:

    o Inter Vivos – when it will take effect during the lifetime of the donor;
    o Mortis Causa – when it will take effect upon the death of the donor. It
    must comply with the formalities of a will.

    6. EFFECT ON ACCESSORY OBLIGATION. The renunciation of the principal debt shall


    extinguish the accessory obligations. (Art. 1273, NCC)

    (a) The waiver of the accessory obligations shall leave the


    principal obligation in force. (Art. 1273, NCC) Thus, the
    accessory obligation of pledge may be waived without
    affecting the principal debt previously secured by the
    pledge.

    (b) 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. (Art. 1274,
    NCC)

    NB: Read Art. 2093, NCC, it is necessary that the thing


    pledged be placed in the possession of the creditor or of
    a third person by a common agreement.

    B. MANNER OF CONDONATION: Condonation may be made expressly or impliedly.


    (Art. 1270, NCC)

    1. EXPRESS CONDONATION – shall comply with the forms of donation. (Art. 1271,
    NCC)

    5
    NB: If the condonation is made mortis causa, the forms of a will must be
    followed.

    2. IMPLIED CONDONATION. The New Civil Code provides two instances where
    condonation is implied:

    (a) 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.

    i. 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. (Art. 1272,
    NCC)

    ii. The waiver may be nullified if inofficious, but the debtor and his heirs
    may uphold it if they can prove that the delivery of the document
    was made in virtue of payment of the debt. (Art. 1271, NCC)

    QUESTION2: What is the effect of this presumption to joint and solidary


    obligations?

    (b) An implied condonation may also result from the presumption 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. (Art. 1274, NCC)

    IMPORTANT: Being a mere PRESUMPTION, it may be overcome by proof that


    no condonation was intended.

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