Extinguishment of Obligations (Continuation)

What is novation?

The modification or extinguishment of an obligation by substituting it with another

In novation, what is one of the functions of the process?

Extinction of the old obligation and creation of a new one

Which of the following is a requisite for novation to exist?

Substantial difference between the old and new obligations leading to the extinction of the former

How is the test of incompatibility used in relation to novation?

To identify if the two obligations can coexist separately without conflict Signup and view all the answers

What role does the consent of the creditor play in changing the identity of the debtor?

The consent is essential and must be obtained Signup and view all the answers

Can novation occur if there is no substantial difference between the old and new obligations?

No, novation requires a substantial difference Signup and view all the answers

If the new debtor becomes insolvent and it was already existing and of public knowledge when the debt was delegated, what liability does the original debtor incur?

Full liability Signup and view all the answers

In the context of novation, what happens if the original obligation was void?

The novation becomes void Signup and view all the answers

How are accessory obligations affected by novation?

They are extinguished Signup and view all the answers

When there is a change in the identity of the creditor, how can it be legal?

By operation of law Signup and view all the answers

How can a change in the identity of the creditor occur under a conventional arrangement?

By agreement of all parties Signup and view all the answers

What court action applies to obligations that are void from the beginning?

Annulment Signup and view all the answers

What is the primary basis for the extinguishment of obligations?

Article 1231 of the Civil Code Signup and view all the answers

What is compensation in the context of obligations?

A situation where two persons owe each other a sum of money Signup and view all the answers

What is a requisite for compensation to take place?

Both debts must be liquidated Signup and view all the answers

Can a debtor set up compensation against a new creditor if the original creditor assigns their rights to another person?

Only if the debtor reserves their right to compensation Signup and view all the answers

What happens when two persons are creditors and debtors of each other?

They can offset their debts through compensation Signup and view all the answers

What is the effect of compensation on the debts of two persons?

Both debts are reduced by the smaller amount Signup and view all the answers