LAW OF OBLIGATION AND CONTRACT

ART. 1156 -1304

Chapter 1: General Provisions Article 1156 - 1162

Define the following:

1. OBLIGATION - is a juridical necessity to give, to do or not to do.

2. QUASI - CONTRACT - when they arise from lawful, voluntary and unilateral acts and which are
enforceable to the end that no one shall be unjustly enriched or benefited at the expense of
another, the obligation to return money paid by mistake or which is not due. In a sense, these
obligations may be considered as arising from law

3. COMPLIANCE IN GOOD FAITH - It means compliance or performance in accordance with the

stipulations or terms of the contract or agreement.

4. WRONG - according to its legal meaning, is an act or omission of one party in violation of the
legal right or rights of another, causing injury to the latter

5. SOLUTIO INDEBITI - is the juridical relation which is created when something is received
when there is no right to demand it and it was unduly delivered through mistake. The
obligation to pay money mistakenly paid arises from the moment said payment was made, and
not from the time the payee admits the obligation to reimburse.
1. Yes, According Article 2164 states that when without the knowledgeof the person obliged to
give support is given by a stranger, the lattershall have the right to demand reimbursement
from the former, unlessthe latter gave it without the intention of being repaid. In this case, Xis
entitled to be reimbursed by Y with or without knowledge orconsent of the latter for
the amount of P150 because the child whomX took care of is within the custody of Y who acted
in negligence. Theobligation of Y to reimburse X’s expense arises from quasi-contract.

2. Yes, Y is liable to X for the damage because according to Article 2176, it is stated
whoever acted in negligence and has causeddamage to another shall pay for the
damages. The general rule isthat driver that hit the parked car is at fault due to the parked car
notmoving and can't avoid the bumping of the jeep. However, using thegeneral rule of
comparative negligence, if the car of X being illegallyparked has contributed to the
accident, civil liabilities might bemitigated.

3. No, X doesn't have a right to ask for indemnity from R because there is no law that requires
this.

4. No, because when D loaned from C, he entered a voluntary agreement and he was willing
and the contract is valid. Thus, D should comply with their agreement in good faith and does
not have a legal justification to refuse payment to C.
 Chapter 2 Nature and Effect of Obligations Article 1163-1178

Define the following:

1. Generic or indeterminate thing - when it refers only to a class or genus to which it pertains and
cannot be pointed out with particularity.
2. Personal right - is the right or power of a person (creditor) to demand from another (debtor), as a
definite passive subject, the fulfillment of the latter’s obligation to give, to do, or not to do.
3. Legal delay or default - is the failure to perform an obligation on time which failure, constitutes a
breach of the obligation.
4. Fortuitous event - is any extraordinary event which cannot be foreseen, or which, though foreseen,
is inevitable. In other words, it is an event which is either impossible to foresee or impossible to avoid.
5. Diligence of a good father of a family - In obligations to give (real obligations), the obligor has the
incidental duty to take care of the thing due with the diligence of a good father of a family pending
delivery. The phrase has been equated with ordinary care or that diligence which an average (a
reasonably prudent) person exercises over his own property.

Explain and answer the following:

1. T has a better right to Silver than B because Article 1496 states thatone shall possess a real
right once the object due has been deliveredto him. In this case, S delivered the horse, Silver to
T on July 15 before the delivery date to B on July 20 which gave T a real right over Silver. B on
the other hand has a personal right to demand from S thedamage the latter has caused.

2. No, S is not guilty of legal delay but of ordinary delay. According toArticle 1169, the general
rule is that until there’s a demand, there’s nodelay. S will only be guilty of legal delay
if B demanded, if theobligation so provides, if the law provides, if time is the essence and
ifthe demand would be useless.

3. (a) What are the obligations of S?

The obligation of S would be to deliver the thing itself, to take care of the horse due before
delivery, to pay damages if proven guilty of delay ,fraud, negligence, or contravention of
the terms of the obligation.

(b) Who has a right to the colt?

S has the right to the colt. S must deliver the horse Suzie to B from the time obligationto
deliver arises. In this case, Suzie gave birth to a cold inJuly 5, five days prior as to when the
obligation to deliver willarise, thus, S shall have the right to the colt.

(c) Who is the lawful owner of Suzie in case it was sold and delivered by S to T on July 8?

T is the lawful owner of Suzie. According to the provisions ofArticle 1164, one shall possess a
real right once the thingdue has been delivered to him. In this case, Suzie has beendelivered to
T, 2 days before the delivery date to B, giving Ta real right over Suzie.

4. Art. 1175 uncurious transactions shall be governed by special laws. D is liable to pay interest
to C if:

1.) They have expressly stipulated that a certain amount of interest may be recovered by C,

2.) There is a written agreement between D and C about the interest. The payment of the
interest is invalid if there is no agreement on the interest per year.

5. Art. 1176.The receipt of the principal by the creditor without reservation with respect to the
interest, shall give rise to the presumption that said interest has been paid. Yes, R can still
collect the rents for January and February 2008 from E.

Chapter 3 Different Kinds of Obligations Article 1179-1192

Define the following:

1. Condition - is a future and uncertain event, upon the happening of which, the effectivity or
extinguishment of an obligation (or rights) subject to it depends.
2. Civil loss - when a thing disappears in such a way that its existence is unknown or even if
known, it cannot be recovered, whether as a matter of fact or of law. Rules in case of loss, etc.
of thing during pendency of suspensive condition.
3. Reciprocal obligations - are those which arise from the same cause and in which each party is
a debtor and creditor of the other, such that the performance of one is designed to be the
equivalent and the condition for the performance of the other.
4. Pure obligation - is one which is not subject to any condition and no specific date is
mentioned for its fulfillment and is, therefore, immediately demandable.
5. Potestative condition - is a condition suspensive in nature and which depends upon the sole
will of one of the contracting parties. Where suspensive condition depends upon the will of
debtor.

Explain and answer the following:

1. No. C cannot insist to pay him not later than August 30. In accordance with Article 1182
which states that “when the fulfilment of the condition depends upon the will of the debtor,
the conditional obligation shall be valid. If it depends upon chance or upon the will of a third
person the obligation shall take effect on the conformity with provisions of this code.
Considering the fact that B is the third person and it was agreed by C that he will only pay the
creditor if he (B) wants to. Therefore, C cannot insist B to pay him if the due date is not yet
passed.

2.The condition in this case is considered as suspensive wherein the obligation will arise upon
the fulfilment of the condition. Under Article 1182, the rule states that when the fulfilment of
the condition depends upon the sole will of the debtor, the conditional obligation itself shall be
void. However, as an exception, it is only applicable when the obligation shall depend for its
perfection upon the fulfilment of the condition and not when the obligation is a pre-existing
one. On the given situation, only the condition is void since the obligation is pre-existing one.
Since D obliges himself to pay D after he has paid his obligation to T; therefore, thepre-existing
obligation of D to pay C for his indebtedness is still valid and won’t be affected by the
potestative condition.

3. In this case, both parties are debtors and creditors to each other. Seller is the creditor as to
the price and a debtor as to deliver the thing. While buyer is a creditor as to the thing and
debtor as to the payment of the price Therefore, the obligation is considered as reciprocal.
However, as stated in the situation, the buyer failed to comply with his obligation. In that case,
under Article 1191, the injured party may choose between the fulfilment and rescission of the
obligation, with payment of damages in either case. He may also seek rescission even after he
has chosen fulfilment, if the latter should become impossible. In this case, the seller has the
privilege to choose only one of the remedies, and not both. If the creditor has chosen rescission,
he cannot demand the fulfilment of obligation to the buyer. Same as, if he chosen the buyer to
fulfil the obligation, he cannot practice the rescission later on.

4. If I were the Judge, I would grant the rescission claimed by the seller. Under Article 1191,
“The court shall decree the rescission claimed, unless there be just Cause authorizing the fixing
period.” In this case, the buyer is willing to comply with his obligation to pay the maintaining
balance of 40,000. But he needs time to do so in view of his financial reverses. This is an
exception in relation with article 1191, wherein the guilty party is willing to comply but needs
more time and not where he refuses to perform. Therefore, the rescission in reciprocal
obligation claimed by the seller, he, in effect treats the non-fulfilment of the other party of his
obligation as a resolutory condition.

5. An obligation is demandable at once –(1) When it is pure Under “every obligation, whose
performance does not depend upon a future on uncertain event, or upon past event unknown
to the parties, is demandable at once. In this case, the obligation is considered as pure
obligation wherein there was no condition and specific date that was mentioned as for the
fulfilment of the obligation. Therefore the obligation of C the sum of money is immediately
demandable.(2) When it is subject to resolutory condition In accordance with Article 1179
wherein every obligation which contain a resolutory condition shall also be demandable,
without prejudice to the effects of the happening of the event. On the situation, B has an
obligation to pay C a sum of money and his bligation is subject to a resolutary condition
wherein the condition will extinguished once the obligation was fulfilled. Therefore, the
obligation is demandable at once and the creditor may demand to the debtor while in the
proceced of fulfilling it. After fulfilment of the agreed condition, the obligation will be
extinguished or terminated. (3) When it is subject to a resolutory periodAn obligation is
demandable at once if it is subject to resolutory period wherein the obligation is valid up to a
day certain and terminates upon arrival of the period. This statement is under Article 1193.
Same as with the case above, the validity of the obligation is until a certain date and it is
terminated or extinguished upon the arrival of the period and, or upon the fulfilmentof the
condition. In this sense, if the two parties (the debtor and the creditor) agreed to a certain
period, and the condition was fulfilled within the period, the obligation will extinguished.

Chapter 3 Different Kinds of Obligations Article 1193-1198

Define the following:

1. Obligation with a period - is one whose consequences are subjected in one way or another
to the expiration of said period or term.

2. Period - A period is a future and certain event upon the arrival of which the obligation
subject to it either arises or is terminated.

3. Indefinite period - that its duration cannot or has not been determined. Thus, if a contract
doesn't specify its validity period, it is generally valid for a “reasonable amount of time”.

Explain and answer the following:

1. D can require C to accept payment before December 31 as it is allowed by the law. It is
stated in Article 1196 that whenever in an obligation a period is designated, it is presumed to
have been established for the benefit of both the creditor and the debtor, unless from the
tenor of the same or other circumstances it should appear that the period has been established
in favor of one or of the other. This is only if D pays C the 10,000 plus the full interest it would
have accrued by December 31. D should request C to allow him or her make early payments
before the agreed date. C however can refuse payment ifthe binding agreement does not have
provisions for early payments.

2. It is stated in Article 1193 that obligations for whose fulfillment a day certain has been fixed,
shall be demandable only when that day comes. And obligations with a resolutory period take
effect at once, but terminate upon arrival of the day certain. A day certain is understood to be
that which must necessarily come, although it may not be known when. If the uncertainty
consists in whether the day will come or not, the obligation is conditional, andit shall be
regulated by the rules of the preceding Section. Therefore, the obligation of D is conditional to
give 10,000 to C because it is based upon the death of the father of D.

3. According to Article 1193, under the “obligation with a period", an obligation with a period is
a kind of obligation where the performance of obligation is subject to a period, and could be
demandable whenever that period would expire. Such a period is 'a day certain' that must
come in future. A period should be fixed by the parties and should be established for the
benefit of boththe debtor and the creditor. On analysis it is to be noted that even though it was
not D's fault, still C can demand the amount from D immediately. But if D provides a reasonable
equal security to C, then C cannot exercis

Chapter 3 Different Kinds of Obligations Article 1199-1206

Define the following:

1. Alternative obligation - is one wherein various prestations are due but the performance of
one of them is sufficiently determined by the choice which, as a general rule, belongs to the
debtor.

2. Facultative obligation - is one where only one prestation has been agreed upon but the
obligor may render another in substitution.

3. Conjunctive obligation - one where there are several prestations and all of them are due.

Explain and answer the following:

1. Yes, according to the Article 1201, the choice shall produce no effect except fromthe time it
has been communicated. Meaning, D can choose from the alternatives aslong as he gains
consent to C.

2.(a.) According to Article 1205, if the thing is lost or destroyed through X’sfault, Y can choose
from other items together with damages, or the price ofthe item two also with damages.
(b ) Article 1262. An obligation which consists in the delivery of 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. When by law or stipulation, the obligor is liable even for fortuitous events,
the loss of the thing does not extinguish the obligation, and he shall be responsible for damages.
The same rule applies when the nature of the obligation requires the assumption of risk.

3. No, since B already gave S the option. What I do not understand is what is the purpose of a
refrigerator and what article is this? I am also not sure of my answer and am still figuring out
how to understand and study obligations and contracts please forgive my ignorance in the
subject.

Chapter 3 Different Kinds of Obligations Article 1207- 1222

Define the following:

1. Joint obligation - is one where the whole obligation is to be paid or fulfilled proportionately
by the different debtors and/or is to be demanded proportionately by the different creditors.

2. Solidary obligation - is one where each one of the debtors is bound to render, and/or each
one of the creditors has a right to demand entire compliance with the prestation.

3. Active solidarity - on the part of the creditors, where anyone of them can demand the
fulfillment of the entire obligation. Its essential feature is that of mutual representation among
the solidary creditors with powers to exercise the rights of others in the same manner as their
rights.

4. Joint indivisible obligation - gives rise to indemnity for damages from the time anyone of the
debtors does not comply with his undertaking. The debtors who may have been ready to fulfill
their promises shall not contribute to the indemnity beyond the corresponding portion of the
price of the thing or of the value of the service in which the obligation consists.

5. Solidary divisible obligation - does not necessarily mean that the obligation is also indivisible.
the subject matter of which is indivisible. In case of breach, even the innocent debtors are liable
for the entire indemnity without prejudice to their right of action against the guilty one.

Explain and answer the following:

1. All we know is that X, Y, and Z are liable to W in the amount of 30,000. Now under Art. 1207,
there is solidary liability only when: (1) the obligation expressly so states; or (2) the law requires
solidarity; or (3) the nature of obligation requires solidary. Assuming they have agreed upon a
contract that expressly states that they are bound together to payor solidary liable to pay
30,000 to W then we could say that this Art. 1207 gives the W the right to demand the full
amount to either of them regardless on whatever agreement the debtors have.

2. (a) According to Article 1217, X can collect from Y and Z only the share which corresponds to
them, which is 10,000 each

b) X cannot collect interest because payment was made before the debt was due

c) If Z becomes insolvent, X can collect from Y his share plus half of Zs share, which is 15,000

3(.a) According to Article 1212, C can condone the debt without Bs consent, however, he shall
be liable to B and has to reimburse Bs share

b) According to Article 1213, C cannot assign his rights to another person without Bs consent.
However, if there are 3 creditors, (B, C,and D) C can assign his rights to D even without Bs
consent.(condone - accept and allow to continue/to approve)Art. 1212. Each one of the solidary
creditors may do whatever may be useful to the others, but not anything which may be
prejudicial to the latter. (1141a)Art. 1213. A solidary creditor cannot assign his rightswithout
the consent of the others.

4. According to Article 1216, C has no right to demand from D to includeA and B as party
defendants because C, as a solidary debtor can be compelled to pay for the entire
obligation.Art. 1216. The creditor may proceed against any one of the solidary debtors or some
or all of them simultaneously. The demand made against one of them shall not be an obstacle
to those which may subsequently be directed against the others, so long as the debt has not
been fully collected

5. According to Article 1221, as far as D is concerned, A, B and C are all liable for the price of the
printing equipment as well as damages. A and B can recover from C since it was through his
fault that the object was destroyed. If C paid for the price and damages, he cannot ask for
reimbursement from A or B.Art. 1221. If the thing has been lost or if the prestation has become
impossible without the fault of the solidary debtors, the obligation shall be extinguished.If there
was fault on the partof any one of them, all shall be responsible to the creditor, for the price
and the payment of damages and interest, without prejudice to their action against the guilty
or negligent debtor.If through a fortuitous event, the thing is lost or the performance has
become impossible after one of the solidary debtors has incurred in delay through the judicial
or extrajudicial demand upon him by the creditor, the provisions of the preceding paragraph
shall apply.
 Chapter 3 Different Kinds of Obligations Article 1223-1225

Define the following:

1. Divisible obligation - is one the object of which, in its delivery or performance, is capable of
partial fulfillment.

2. Indivisible obligation - is one the object of which, in its delivery or performance, is not
capable of partial fulfillment.

3. Legal indivisibility - where a specific provision of law declares as indivisible, obligations which,
by their nature, are divisible.

Explain and answer the following:

1. According to Art. 1225, Indivisible, as stated on the contract that A and B bind themselves to
pay C their loan P10,000 on a certain date.
2. According to Art. 1224, The obligation to deliver the horse is converted into money obligation,
meaning, A, B and C will contribute the amount in buying the horse. A and C are liable to give
their shares. But, A and C are not liable for the share of B. On the other hand, B is now indebted
to D. Damages may be imposed against “B” the erring debtor ifwarranted by the circumstances.

3. According to Art. 1225, loans to be paid by installments are deemed divisible obligations.
However, each installment of P2,500 is indivisible

Chapter 3 Different Kinds of Obligations Article 1226-1230

Define the following:

1. Obligation with a penal clause - is one which contains an accessory undertaking to pay a
previously stipulated indemnity in case of breach of the principal prestation intended primarily
to induce its fulfillment.

2. Penal clause - is an accessory undertaking attached to an obligation to assume greater

liability on the part of the obligor in case of breach of the obligation, i.e., the obligation is not
fulfilled, or is partly or irregularly complied with.

3. Joint penal clause - joint when both the principal obligation and the penalty can be collected.

Explain and answer the following:

1. For the first problem, instead of delivering the horse, X just wants to pay the penalty of P10,
000 to his seller to exempt himself from the obligation of delivering the horse. The obligation
has a penal clause to ensure fulfilment in the obligation and it is not intended to exempt the
obligor from his obligation. In this case, Y has the right to refuse to accept the penalty in lieu of
the horse. According to Article 1227. The debtor cannot exempt himself from the performance
of the obligation by paying the penalty. This statement clearly say that the action made by X is
prohibited. Moreover, penalty is a type of accessory obligation which comes with the principal
obligation, it cannot stand alone. From the problem, the principal obligation is to deliver the
horse and the accessory obligation is the penalty of P10,000 thus, X is not allowed to do the
accessory obligation since it is not the main obligation and he is using penalty the wrong way,
again penalty is used to urge the debtor to the performance of the main obligation and not to
free himself from his main obligation.

2. X’s violation and this is proved by X. Well, according to Article 1228. Proof of actual damages
suffered by the creditor is not necessary in order that the penalty may be demanded. In an
obligation with a penal clause all that the creditor has to prove in order for him to enforce
penalty is to show that the debtor has violated his obligation. It is not necessary for the creditor,
Y, to show physical evidences for the damages and losses that he suffered instead he just needs
to prove that the debtor, X, has violated his obligation. Whether the creditor has suffered or
not he has the right to enforce the penalty if debtor X, has been proven to violate his obligation.

3. No, X will only be liable fir damages if the stipulation so states if X refuse to pay the penalty
or when there is fraud on X part. Since there is only negligence and not fraud. Y cannot demand
for damages in addition to the penalty and X is only liable for the penalty.

Chapter 4 Extinguishment of Obligations Article 1232-1261

Define the following:

1. Payment - may consist of not only in the delivery of money but also the giving of a thing
(other than money), the doing of an act, or not doing of an act.

2. Dation in payment - is the conveyance of ownership of a thing by the debtor to creditor as an

accepted equivalent of performance of a monetary obligation. It is a special form of payment
because it is not the ordinary way of extinguishing an obligation.

3. Application of payment - is the designation of the debt to which should be applied the
payment made by a debtor who has various debts of the same kind in favor of one and the
same creditor.

4. Payment by cession - is another special form of payment. It is the assignment or

abandonment of all the properties of the debtor for the benefit of his creditors in order that the
latter may sell the same and apply the proceeds thereof to the satisfaction of their credits.

5. Consignation - is the act of depositing the thing or amount due with the proper court when
the creditor does not desire, or refuses to accept payment, or cannot receive it, after complying
with the formalities required by law.
Explain and answer the following:

1. Yes, C can refuse to legally accept the payment. Article 1236. The creditor is not bound to
accept payment or performance by a third person who has no interest in the fulfillment of the
obligation.-Yes, C can accept the payment from G. As G being the guarantor, which is a person
who has an interest in the obligation.

Chapter 4 Extinguishment of Obligations Article 1262- 1269

Define the following:

1. Legal impossibility - occurs when the obligation cannot be performed because it is rendered
impossible by provision of law, although physically it may be possible of performance.

2. Loss of thing - sum consigned. Where all the requisites for a valid consignation have been
complied with, the loss of the thing or amount consigned occurring without the fault of the
debtor before the acceptance of the consignation by the creditor or its approval by the court is
for the account of the creditor.

3. Difficulty of performance - performance has become so difficult as to be manifestly beyond

the contemplation of both parties.

Explain and answer the following:

1. Yes, according to Article 1265, when the thing is lost in the possession of thedebtor, it was
presumed that the loss was his fault unless he shows proof. In this case,even though Y were not
able to show proof that X was negligent, it was presumed thatit was X’s fault since it was in his
possession when the specific carabao died, unlesshe proves the contrary to the presumption of
Y.

2. Yes, X is already exempt from liability. According to Article 1262, when a determinate
thing is lost or destroyed without the fault of the debtor, and before heincurred delay, the
obligation shall be extinguished. In this case, even though X lostthe specific thing, he is not
liable since the specific thing lost without his fault and hehas not yet incurred delay.

3. According to Article 1269, the creditor shall have the all the rights of actionwhich the
debtor may have against third persons by reason of the loss. In this case, Xwill be extinguished
in the obligation and he will not be held liable, but he cannot goafter Z also. However, Y which
is the creditor, will have the right to bring an action.

Chapter 4 Extinguishment of Obligations Article 1270-1274

Define the following:

1. Condonation or remission of debt- is a mode of extinguishment of obligation wherein the
creditor gratuitously renounced his right against the debtor with the latter's acceptance.

2. In officious remission - No one can give more than that which he can give by will; otherwise
the excess shall be inofficious and shall be reduced by the court accordingly.

Explain and answer the following:

1. (a) 1. The presumption is that C is renouncing his right from the credit.

2. The presumption is that it was voluntarily delivered by C.

(b) The presumption of remission arise if the documents were found in possession of D
without her giving the payment.

2. (a) When the debt of D is condoned by C the accessory obligation together with the principal
will both be extinguished.

(b) It is pressumed that only the accessory obligation of pledge, which is the certificate, is
remitted, not the obligation itself. D shall continue to be indebted but does not have to return
the thing pledge.
 Chapter 4 Extinguishment of Obligations Article 1275-1277

Define the following:

1. Confusion - does not extinguish a joint obligation except as regards the share corresponding
to the creditor or debtor in whom the two characters concur.

2. Merger - It is the meeting of one person of the qualities of creditor and debtor with respect
to the same obligation.

Explain and answer the following:

1. C share in the joint obligation is extinguished by confusion but the indebtness of A and B in the
amoynt of 5, 000 each remains because as to them payment by confusion will not apply since
the nature of the obligation is joint. A and B would also be liable to C now instead of D for 5,000.

2. C has no right to demand from D to include A and B as partly defendant because C as a

solidary debtor can be compelled to pay for the entire obligation.

Chapter 4 Extinguishment of Obligations Article 1278- 1290

Define the following:

1. Compensation - is the extinguishment to the concurrent amount of the debts of two persons
who, in their own right, are reciprocally principal debtors and creditors of each other.
2. Legal compensation - when it takes place by operation of law even without the knowledge of
the parties.

3. Facultative compensation - when it can be set up only by one of the parties.

Explain and answer the following:

1. Yes, the bank has the right to set off D saving deposit with his character loan that is already due and
demandable. General law state that a bank has the right to set aside deposits for payment by a
depositors loan and similarly depositors has also the right to set off his bank money deposit against the
loans that he had received from the bank, in this case, it has been applied correctly.

2. No compensation may take place, according to Article 1279, compensation cannottake place when
the debts are not due on the same date. However, if C are not yet ableto pay D on the due date of D’s
obligation which is on November 20, a compensationwill take place on that date.

3. Where one of the debts consists in civil liability arising from a penal offense:Franky owed Nami
P50,000. Nami stole the shoes of Franky worth P50,000. In here,the compensation by Nami is not proper.
But Franky, the offended party can claim theright to compensation. In the Article 1288, the prohibition
only pertains only to theaccused but not do the victim of the crime.

4. There is no effect to D as the two debts should not be compensated against each other. The
obligation of C is already annulled because even from the beginning C obligation is voidable. Annulment
of an obligation has the effect of retroactivity. D is still liable and must pay C the amount due plus
damanges if applicable

Chapter 4 Extinguishment of Obligations Article 1291-1304

Define the following:

1. Novation - is the total or partial extinction of an obligation through the creation of a new one
which substitutes it. It is the substitution or change of an obligation by another, which
extinguishes or modifies the first, either by changing its object or principal conditions, by or
substituting another in place of the debtor, or by subrogating a third person in the rights of the
creditor.

2. Mixed novation - Mixed novation is when the object and/or principal conditions of the
obligation and the. debtor or the creditor, or both parties, are changed. It is a combination of
real and. personal novations.

3. Expromission - which, when a third person initiatively takes place the obligation even without
the consent or against the will of the original debtor but with the consent of the creditor.

4. Delegacion - Is when the debtor offers and the creditor accept a third person to take place
for the satisfaction of the original debtors obligation. In this agreement they are called as a
Delegante(debtor) ,Delegatario(creditor) and delegado(third person).

Explain and answer the following:

1. Yes, D will be released from his obligation to C, since according to Article 1293,novation which
consists in substituting a new debtor in the place of the original one,can be made even without the
debtor’s consent as long as with creditor’s consent. And in this case, C and D agreed that T will be the
one who will pay D’s debt. Therefore,D will be released from his obligation as debtor.

2. Yes, D still liable to C in case of insolvency of T. This case C and D agree that T will pay the debt of D. D
is still liable and must pay C the amount due plus damanges if applicable.

3. None, There was no legally binding contract between T and C, the latter who was the Creditor for the
contract of D. The fact that C paid (apparently, but not qualified in your question) D for completion of
the contract between C & D satisfied the completion of the transaction, whether the money had come
for C (and there was no knowledge by D of T’s involvement, or indeed actually paid in cash and
therefore untraceable and could only be assumed the money came from and paid on D’s behalf,

4. In this case the mix novation say that when the object and/or principal conditions of the obligation
and the. debtor or the creditor, or both parties, are changed. It is a combination of real and personal
novations. So about this is give a real and personal novation in this problem and that is the obligation of
two parties.