Podcast Beta
Questions and Answers
What is one way obligations can be extinguished?
Which of the following is classified as an involuntary cause of extinguishment of obligations?
Which of these causes of extinguishment of obligations is related to the creditor and debtor's rights merging?
Which of the following is NOT a cause for the extinguishment of an obligation as per Article 1231?
Signup and view all the answers
Under which category do both compensation and novation fall?
Signup and view all the answers
What is meant by 'condonation or remission of the debt' in terms of obligations?
Signup and view all the answers
Which of the following is considered a 'fortuitous event' that may extinguish an obligation?
Signup and view all the answers
Which of the following is NOT a cause of extinguishment of obligations listed in this chapter?
Signup and view all the answers
Which cause of extinguishment occurs due to the death of a personal obligation party?
Signup and view all the answers
What does 'confusion or merger of the rights of creditor and debtor' refer to?
Signup and view all the answers
Which of the following is NOT a type of substitution of performance?
Signup and view all the answers
What does the term 'natural waiver' refer to in relation to agreement to release?
Signup and view all the answers
Which of the following is an example of an involuntary cause for releasing an obligation?
Signup and view all the answers
What causes an obligation to cease due to 'change of civil status'?
Signup and view all the answers
What is a 'resolutory condition' in the context of obligations?
Signup and view all the answers
What does 'payment' in Article 1232 include?
Signup and view all the answers
When is there technically no payment according to Article 1232?
Signup and view all the answers
Which of the following scenarios best illustrates a pre-existing obligation?
Signup and view all the answers
What must a creditor do for a payment to be considered valid?
Signup and view all the answers
In what case can a payment be properly rejected by the creditor?
Signup and view all the answers
What is the effect of payment made under a void judgment?
Signup and view all the answers
Which of the following is NOT a requisite for a valid payment?
Signup and view all the answers
How should a monetary obligation be settled?
Signup and view all the answers
If the debt consists of a personal undertaking, how should payment be made?
Signup and view all the answers
What must occur if the debt is the delivery of things?
Signup and view all the answers
Who has the burden of proving the existence of a valid debt?
Signup and view all the answers
What is one acceptable form of proof for a debtor to show payment?
Signup and view all the answers
What can be inferred if a promissory note is still held by the creditor?
Signup and view all the answers
In the case of Javier v. Brinas, what was the main issue A faced?
Signup and view all the answers
What conclusion was reached regarding A's testimony in Javier v. Brinas?
Signup and view all the answers
What is a key aspect of substantial performance in good faith as outlined in Article 1234?
Signup and view all the answers
According to the commentaries, how does substantial performance benefit the obligee?
Signup and view all the answers
Which of the following statements is correct regarding the court's consideration under substantial performance?
Signup and view all the answers
What liability does a debtor have when there is substantial performance in good faith?
Signup and view all the answers
What principle underlies the rule of substantial performance in terms of fairness?
Signup and view all the answers
What happens when an obligee accepts incomplete performance without protest?
Signup and view all the answers
What is the effect of qualified acceptance on a creditor's obligations?
Signup and view all the answers
What role does estoppel play in the acceptance of performance?
Signup and view all the answers
What does accepting partial payment signify in terms of obligation?
Signup and view all the answers
In which case is the importance of clear acceptance highlighted?
Signup and view all the answers
Under what condition can a creditor refuse payment from a third party?
Signup and view all the answers
What can a person who pays a debt for another demand?
Signup and view all the answers
What is one reason the Code Commission prefers that creditors can refuse third-party payments?
Signup and view all the answers
What is a condition under which reimbursement is allowed for a third-party payment?
Signup and view all the answers
In which situation would a creditor accept a third-party payment?
Signup and view all the answers
What must occur for a third person to be entitled to reimbursement and subrogation after making a payment for a debtor?
Signup and view all the answers
What is the primary limitation on a third person's right to reimbursement if the payment was made against the debtor's will?
Signup and view all the answers
Which situation allows a third person to recover from the creditor rather than the innocent debtor?
Signup and view all the answers
If a third party pays $500 instead of the actual $1,000 due without debtor consent, what can they recover?
Signup and view all the answers
Which scenario does NOT qualify as valid grounds for a third person to recover payment from the creditor?
Signup and view all the answers
Study Notes
Extinguishment of Obligations
- Obligations can be extinguished in numerous ways, with some being voluntary and others involuntary.
- Voluntary Causes: These involve conscious actions by the parties involved.
- Performance is the primary method of extinguishment, involving the delivery of money or fulfillment of the agreed-upon service.
-
Substitution of Performance involves alternative methods of fulfilling the obligation, including:
- Compensation: When two people owe each other money and their debts cancel each other out.
- Novation: Replacing an old obligation with a new one, either changing the object, the creditor, or the debtor.
- Dacion en pago (datio in solutum): Paying a debt with something other than money, agreed upon by the parties.
-
Agreement to Release involves both parties agreeing to end the obligation:
- Subsequent to the obligation:
- Unilateral waiver: The creditor voluntarily releases the debtor from the obligation.
- Natural waiver: When the debt is extinguished due to a legal reason like prescription.
- Remission: The creditor formally forgives the debt, usually in writing.
- Mutual dissent: Both parties agree to terminate the obligation.
- Compromise: The parties reach an agreement to modify or extinguish the obligation.
- Simultaneous with the creation of the obligation:
- Resolutory condition: The obligation ends upon the occurrence of a future event.
- Resolutory term: The obligation ends on a specific date or after a certain period.
- Subsequent to the obligation:
- Involuntary Causes occur outside of the parties' control.
- Failure to bring an action: The right to claim the obligation is lost due to limitations imposed by law. This is often referred to as the statute of limitations.
- Resolutory condition or condition subsequent: An event that terminates the obligation, such as a merger of the creditor and debtor's rights.
-
By reason of the object:
- Impossibilty of performance: The agreed-upon action becomes impossible to perform.
- Loss of the thing due: The object of the obligation is lost or destroyed.
Payment or Performance
- Payment is a key method for extinguishing an obligation.
- Payment refers to delivery of money or fulfillment of the obligation in another way.
- Payment requires acceptance by the creditor, whether explicit or implicit.
- Payment made under a void judgment is considered null and void.
- Completeness of Payment: Payment is valid only when the entire object or service is delivered or rendered.
- Burden of Proof: The creditor must first prove the existence of a valid debt, and then the debtor must prove they have paid it.
- Receipts are strong evidence of payment.
Substantial Performance in Good Faith
- This principle allows recovery for substantial completion of an obligation, less damages incurred by the obligee.
- It is based on fairness, aiming to compensate the obligor for their good faith efforts.
- The court might grant a period for the debtor to complete the remaining obligation, rather than rescinding the contract altogether.
Creditor's Right to Refuse Payment
- Generally, a creditor is not obligated to accept payment from a third party who has no interest in the obligation.
- Exceptions include cases where the creditor agrees to accept third-party payments or if the third party is a guarantor or co-debtor.
- This rule aims to protect the creditor's right to choose who they deal with.
Payment by a Third Person
- A third party can pay with the knowledge and consent of the debtor, which entitles them to reimbursement and subrogation (assuming rights like a guarantee or mortgage).
- If the third party pays without the debtor's knowledge or consent, they only receive beneficial reimbursement, the amount that actually benefited the debtor.
- Third parties can also recover from the creditor in certain situations:
- When the debt has already been paid.
- When the debt has been remitted.
- When the debt has prescribed.
- When legal compensation has already taken place.
Lazaro v. Sagun Case
- Charges against a deceased lawyer were deemed moot and academic, indicating that the death of a party can extinguish certain legal obligations.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores the various ways obligations can be extinguished, focusing on both voluntary and involuntary methods. It covers essential concepts like performance, substitution of performance, and agreements to release. Test your understanding of these legal principles and their applications.