condonation or remission of debt

merger or confusion of rights

compensation
novation

Requisites:

gratuitous VS. onerous

acceptance by the obligor

parties must have capacity

not inofficious

express condonation must comply with the

forms of donation.

On condonation/remission of the debt

Rules regarding inofficious donations:
(1)All present property of the donor (reserves
sufficient means of support of himself and
family)
(2)Donations cannot comprehend future
property

Forms of donations
Movables below P5,000- oral or in writing
Movables P5,000 and above- writing
Immovables- public instrument with
acceptance during the lifetime of the donor
Statute of Frauds
usufruct= usufructuary vs. naked owner

Extent
- complete
- partial

Form
- express
- implied (Art. 1271)

Date of effectivity
- inter vivos
- mortis causa

Presumption of implied remission: the

delivery of a private document evidencing a
credit, made voluntarily by the creditor to the
debtor

Presumption of delivery: private document in

which the debt appears is found in the
possession of the debtor

Remission of principal is remission of

accessory

Remission of accessory shall leave the

principal

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

Meeting in 1 person of the qualities of the

creditor and debtor with respect to the same
obligation.

Requisites:

1. it must take place between the principal

debt and creditor;
2. it must be complete.

Merger which takes place in the person of the

principal debtor or creditor benefits the
guarantors

Confusion which takes place in the person of

guarantor does not extinguish the obligation

Confusion does not extinguish a joint

obligation except as regards the share
corresponding to the creditor or debtor in
whom the two characters concur

The extinguishment to the concurrent amount

of the debts of 2 persons who, in their own
right, are debtors and creditors of each other

Confusion

Compensation

Only one person who is a creditor and 2 persons are involved, each of whom
debtor of himself

is a creditor and a debtor of the other

One obligation

2 obligations

There is impossibility of payment

There is indirect payment

Extent/effect
1. total (Art. 1281)
2. partial (Art. 1281)

Cause/origin
1. legal (Art. 1279) ipso jure= by operation of

law

2. voluntary (Art. 1282)

3. judicial (Art. 1283)
4. facultative

(1) Each one of the obligors be bound principally, and

that he be at the same time a principal creditor of the
other;
(2) Both debts consist in a sum of money, or if the things
due are consumable, they be of the same kind, and also
of the same quality if the latter has been stated;
(3) The two debts be due;
(4) They be liquidated and demandable;
(5) Over neither of them there be any retention or
controversy, commenced by third persons and
communicated in due time to the debtor

guarantor may set up compensation as

regards what the creditor may owe the
principal debtor

With consent of the debtor:

Debtor who has consented to the assignment of rights made by a creditor in

favor of a third person, cannot set up against the assignee the compensation
which would pertain to him against the assignor

Assignment with the knowledge but without the consent of the debtor :

Debtor may set up the compensation of debts previous to the cession, but not
of subsequent ones.

Assignment without the knowledge of the debtor;

Debtor may set up the compensation of all credits prior to the assignment
and also later ones until he had knowledge of the assignment

payable at different places

Indemnity for expenses of exchange or

transportation to the place of payment

Depositum (Art. 1287)

Commodatum (Art. 1287)

support due by gratuitous title (Art. 1287)

civil liability arising from a penal offense (Art.

1288)

(1) Changing their object or principal

conditions;

(2) Substituting the person of the debtor;

(3) Subrogating a third person in the rights of

the creditor

Form

express or implied

Origin

legal or conventional

Object
real, personal or mixed

Effect
total or partial

Express: declared in unequivocal terms

Implied: the old and the new obligations be

on every point incompatible with each other

Test of incompatibility

Previous valid obligation

Agreement of the parties to the new contract

Extinguishment of the old contract

Validity of the new one

Intent to novate (animus novandi)

may be made even without the knowledge or against

the will of original debtor

not without the consent of the creditor

Kinds:

(a)Expromision-

with the consent of the creditor at the

instance of the new debtor even without the consent/against

the will of old debtor
(b)Delegacion

-with the consent of the creditor at the instance

of the old debtor with the concurrence of the new debtor.

Rule 1: If substitution is without the knowledge or

against the will of the debtor, the new debtor's

insolvency or non-fulfillment of the obligations shall not

give rise to any liability on the part of the original debtor

(expromision)

Rule 2: Proposed by the original debtor and accepted

by the creditor, shall not revive the action of the latter

against the original obligor, except when said insolvency

was already existing and of public knowledge, or known

to the debtor, when he delegated his debt. (delegacion)

accessory obligations may subsist only insofar

as they may benefit third persons who did not
give their consent

Rule 1:If the new obligation is void, the

original one shall subsist

EXCEPTION: Agreement of the parties

Rule 2: The novation is void if the original

obligation was void

EXCEPTION: when annulment may be claimed

only by the debtor or when ratification
validates acts which are voidable

clearly established

requires the consent of the original parties

and of the third person

(1) When a creditor pays another creditor who is

preferred, even without the debtor's knowledge;

(2) When a third person, not interested in the

obligation, pays with the express or tacit approval
of the debtor;

(3) When, even without the knowledge of the

debtor, a person interested in the fulfillment of
the obligation pays, without prejudice to the
effects of confusion as to the latter's share

Art. 1303. Subrogation transfers to the persons subrogated

the credit with all the rights thereto appertaining, either
against the debtor or against third person, be they

guarantors or possessors of mortgages, subject to

stipulation in a conventional subrogation. TOTAL

SUBROGATION

Art. 1304. A creditor, to whom partial payment has been

made, may exercise his right for the remainder, and he shall

be preferred to the person who has been subrogated in his

place in virtue of the partial payment of the same credit.
PARTIAL SUBROGATION