Law on Obligation and Contracts Reviewer
CAUSES OF EXTINGUISHMENT OF OBLIGATION
1. Payment or performance
2. Loss of the thing due
3. Condonation or remission of the debt
4. Confusion or merger of rights of creditor and debtor
5. Compensation
6. Novation
I - PAYMENT OR PERFORMANCE
PAYMENT means not only the delivery of money but also the performance, in any other manner of an obligation.
How must the payment be made?
1. There must be delivery of the thing or rendition of the service that was contemplated.
a. The debtor of a thing cannot compel the creditor to accept a different one although the latter may be of the same value as, or more valuable than that which is due.
b. In obligation to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the creditor's will.
c. In obligation to give generic thing whose quality and circumstance have not been stated, the creditor cannot demand a thing of superior quality neither can the debtor deliver a thing of inferior quality. The purpose of the obligation must be taken into consideration.
d. If the obligation is a monetary obligation, the payment must be in legal tender.
2. The payment or performance must be complete. Exceptions: 1. If the obligation has been substantially performed in good faith, the debtor may recover as though there had been complete fulfillment less damages suffered by the creditor. 2. When the creditor accepts the performance knowing its incompleteness or irregularity and without expressing any protest or objection.
Who must make the payment?
Payment must be made by the debtor who must possess the following:
1. the free disposal of the thing due; and - the property must not be subject of any claim by third person.
2. the capacity to alienate the thing. - debtor must not be incapable of giving consent otherwise the payment is void.
Payment by a third person
The creditor is not bound to accept payment or performance by a third person EXCEPT in the following cases:
1. when there is a
1. Payment or performance
2. Loss of the thing due
3. Condonation or remission of the debt
4. Confusion or merger of rights of creditor and debtor
5. Compensation
6. Novation
I - PAYMENT OR PERFORMANCE
PAYMENT means not only the delivery of money but also the performance, in any other manner of an obligation.
How must the payment be made?
1. There must be delivery of the thing or rendition of the service that was contemplated.
a. The debtor of a thing cannot compel the creditor to accept a different one although the latter may be of the same value as, or more valuable than that which is due.
b. In obligation to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the creditor's will.
c. In obligation to give generic thing whose quality and circumstance have not been stated, the creditor cannot demand a thing of superior quality neither can the debtor deliver a thing of inferior quality. The purpose of the obligation must be taken into consideration.
d. If the obligation is a monetary obligation, the payment must be in legal tender.
2. The payment or performance must be complete. Exceptions: 1. If the obligation has been substantially performed in good faith, the debtor may recover as though there had been complete fulfillment less damages suffered by the creditor. 2. When the creditor accepts the performance knowing its incompleteness or irregularity and without expressing any protest or objection.
Who must make the payment?
Payment must be made by the debtor who must possess the following:
1. the free disposal of the thing due; and - the property must not be subject of any claim by third person.
2. the capacity to alienate the thing. - debtor must not be incapable of giving consent otherwise the payment is void.
Payment by a third person
The creditor is not bound to accept payment or performance by a third person EXCEPT in the following cases:
1. when there is a