Obligation and Contracts(chapter4)
Chapter 4:
MODES OF EXTINGUISHING OBLIGATIONS
a) By payment or performance
b) Loss of the thing due
c) Condonation or remission of the debt
d) Confusion or merger
e) Compensation
f) Novation
In addition:
g) Annulment
h) Rescission
i) Fulfillment of a resolutory condition
j) Prescription
k) Death of a party in case the obligation is personal
l) Mutual desistance
m) Compromise
n) Impossibility of fulfillment
o) Happening of fortuitous events
PAYMENT or PERFORMANCE
Payment or fulfillment consists in the delivery of a sum of money or a thing, or doing a thing or not doing something.
How payment or performance is made:
a. If the obligation is monetary, by delivery of the money in full.
b. If it is a thing or an object, by delivery of the thing or object.
c. If to do something, by the performance of the same undertaking.
d. If not doing a thing, to desist or refrain from doing the thing.
Requisites of payment
a) The thing or service must be delivered or rendered.
b) Payment should be complete.
Incomplete compliance or partial performance considered payment
a) Substantial performance in good faith, minus or less the damages suffered by the obligee.
b) Acceptance by the creditor of an incomplete or irregular performance, without any protest or objection.
*There is no right to rescind under this article because there is only slight breach in the obligation. The court may even grant a term or a period for the performance of the obligation.
Effects of payment by a third person
a) If made without the consent or against the will of the debtor, the payor can recover only insofar as the payment was beneficial to the debtor. The recovery is only up to the extent or amount of the debt at the time of payment.
b) If made with the consent of the debtor, the payor shall have the right of reimbursement and subrogation, that is, to recover what he has paid and to acquire all the rights of the creditor. Effect of the
MODES OF EXTINGUISHING OBLIGATIONS
a) By payment or performance
b) Loss of the thing due
c) Condonation or remission of the debt
d) Confusion or merger
e) Compensation
f) Novation
In addition:
g) Annulment
h) Rescission
i) Fulfillment of a resolutory condition
j) Prescription
k) Death of a party in case the obligation is personal
l) Mutual desistance
m) Compromise
n) Impossibility of fulfillment
o) Happening of fortuitous events
PAYMENT or PERFORMANCE
Payment or fulfillment consists in the delivery of a sum of money or a thing, or doing a thing or not doing something.
How payment or performance is made:
a. If the obligation is monetary, by delivery of the money in full.
b. If it is a thing or an object, by delivery of the thing or object.
c. If to do something, by the performance of the same undertaking.
d. If not doing a thing, to desist or refrain from doing the thing.
Requisites of payment
a) The thing or service must be delivered or rendered.
b) Payment should be complete.
Incomplete compliance or partial performance considered payment
a) Substantial performance in good faith, minus or less the damages suffered by the obligee.
b) Acceptance by the creditor of an incomplete or irregular performance, without any protest or objection.
*There is no right to rescind under this article because there is only slight breach in the obligation. The court may even grant a term or a period for the performance of the obligation.
Effects of payment by a third person
a) If made without the consent or against the will of the debtor, the payor can recover only insofar as the payment was beneficial to the debtor. The recovery is only up to the extent or amount of the debt at the time of payment.
b) If made with the consent of the debtor, the payor shall have the right of reimbursement and subrogation, that is, to recover what he has paid and to acquire all the rights of the creditor. Effect of the