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Questions and Answers
What is the primary meaning of payment according to Article 1232?
What is the primary meaning of payment according to Article 1232?
What is necessary to consider a debt as paid?
What is necessary to consider a debt as paid?
What is the burden of proving payment on?
What is the burden of proving payment on?
What is the difference between substantial performance and partial performance?
What is the difference between substantial performance and partial performance?
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What is the effect of substantial performance in good faith on the obligor?
What is the effect of substantial performance in good faith on the obligor?
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What is the effect of the obligee accepting the performance knowing its incompleteness without objection?
What is the effect of the obligee accepting the performance knowing its incompleteness without objection?
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What right does the creditor have in relation to payment from a 3rd person?
What right does the creditor have in relation to payment from a 3rd person?
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What is the effect of a 3rd party paying the debt of the debtor without his consent?
What is the effect of a 3rd party paying the debt of the debtor without his consent?
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What is required for a payment made by a 3rd person to be valid?
What is required for a payment made by a 3rd person to be valid?
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What is the effect of payment made to a creditor who is incapacitated?
What is the effect of payment made to a creditor who is incapacitated?
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Study Notes
Obligations and Payment
- Obligations are extinguished through 6 means: payment or performance, loss of the thing due, remission or condonation, confusion or merger of rights, compensation, and novation.
- Other means of extinguishing obligations include death of a party, mutual withdrawal, arrival of a resolutory period, compromise, impossibility of fulfillment, and fortuitous events.
Payment
- Payment refers to the fulfillment of an obligation, which can be giving, doing, or not doing something.
- Payment is not limited to delivering money, but also includes giving a thing, doing an act, or not doing an act.
Debt and Payment
- A debt is considered paid only when the payment is completely delivered or rendered.
- Requisites for payment include integrity of prestation and identity of prestation.
- The burden of proving payment lies with the debtor.
Substantial Performance
- Substantial performance in good faith by the obligor can entitle them to the benefits of the contract.
- Requisites for substantial performance include substantial performance and good faith.
- The amount can be reduced by any damages suffered by the other party due to incomplete performance.
Doctrine of Substantial Performance
- Substantial performance occurs when the essential part of the contract has been performed.
- It allows for a proportionate reduction in the amount recoverable by the obligor.
- It is different from partial performance, which involves performing a minor part of the obligation.
Acceptance of Incomplete Performance
- If the obligee accepts the performance knowing its incompleteness without objection, the obligation is deemed fulfilled.
- Requisites for acceptance of incomplete performance include the obligee knowing the performance is incomplete and accepting it despite its incompleteness.
Payment by Third Party
- A creditor can refuse to accept payment from a third party.
- A third party who pays the creditor can demand reimbursement from the debtor.
- Exceptions to reimbursement include when the debtor is without knowledge, where they can only recover the payment that was beneficial to them.
Payment without Debtor's Consent
- A third party who pays the debt without the debtor's consent cannot compel the creditor to subrogate them in their rights.
- Payment by a third party without the intention to be reimbursed may be deemed a donation, requiring the debtor's consent.
Validity of Payment
- Payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid.
- Payment shall be made to the creditor, their heirs and successors, or any person authorized to receive it.
Payment to Incapacitated Creditor
- Payment to a creditor who is incapacitated is only valid if they kept the thing delivered or if it was beneficial to them.
- Payment made by a third person is also valid if the payment was beneficial for the creditor.
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Description
Test your knowledge of obligations and contracts with this quiz! Learn about the different ways obligations can be extinguished, including payment, remission, and compensation. Understand the concepts of novation, confusion, and merger of rights.
