Podcast
Questions and Answers
Which of the following is NOT a principal mode of extinguishing obligations?
Which of the following is NOT a principal mode of extinguishing obligations?
- Condonation or remission
- Payment
- Inspection of the product (correct)
- Confusion or merger of rights
What distinguishes 'mutual dissent' from 'rescission'?
What distinguishes 'mutual dissent' from 'rescission'?
- Rescission can benefit third parties.
- Mutual dissent requires grounds like lesion or fraud.
- Rescission can only happen through a court order.
- Mutual dissent is based on the agreement of both parties. (correct)
In terms of payment classification, which of the following is considered a specific performance?
In terms of payment classification, which of the following is considered a specific performance?
- The delivery of goods equivalent in value
- The performance of a unique service (correct)
- Any type of voluntary payment made by the debtor
- The payment of a specific sum of money
Which of the following is a requisite for a valid payment?
Which of the following is a requisite for a valid payment?
Who among the following can compel the creditor to accept payment?
Who among the following can compel the creditor to accept payment?
What happens when a debtor dies in relation to obligations?
What happens when a debtor dies in relation to obligations?
Which type of payment occurs when the obligor is compelled to pay?
Which type of payment occurs when the obligor is compelled to pay?
In which scenario would rescission be applicable?
In which scenario would rescission be applicable?
What is a consequence of confusion or merger of rights?
What is a consequence of confusion or merger of rights?
Which of the following best describes 'compensation' in the context of extinguishing obligations?
Which of the following best describes 'compensation' in the context of extinguishing obligations?
Flashcards
Extinguishment of Obligations
Extinguishment of Obligations
Methods to end a contractual agreement between parties.
Payment (as a form of extinction)
Payment (as a form of extinction)
Satisfying an obligation, not just money but fulfilling the terms.
Loss of the Thing Due
Loss of the Thing Due
Extinction of the obligation if the object is lost.
Condonation/Remission
Condonation/Remission
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Confusion/Merger of rights
Confusion/Merger of rights
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Compensation
Compensation
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Novation
Novation
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Valid Payment Requirements
Valid Payment Requirements
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Abnormal Payment
Abnormal Payment
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Who can make a valid payment?
Who can make a valid payment?
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Study Notes
Extinction of Obligations
- Enumeration of methods is not exclusive
- Principal methods of extinguishing obligations between parties: Payment, Loss of the thing due, Condonation or remission, Confusion or merger of rights of creditor and debtor, Compensation, and Novation
- Other modes: Annulment of the contract, Rescission of the obligation, Fulfillment of the resolutory condition, Prescription
Death of Debtor
- Not absolute - applies only if obligation is personal to the debtor
- Estate of the deceased debtor includes all rights and obligations not extinguished by death
Mutual Dissent
- Agreement between parties to withdraw from the contract
- Not confused with rescission (requires lesion or fraud, mutual consent required none)
Rescission
- Results in abrogation and usually mutual restitution
- Law does not allow restitution in some cases
- Effect of mutual dissent is abrogation (reversal of prior agreement); restitution dependent on agreement of parties
Payment
- Includes not only delivery of money but performance of any other obligation
- Must be made to the creditor generally; may also be made to heirs, successors-in-interest, or agent
Kinds of Payment (Performance)
- Normal/Voluntary: Debtor pays on their own volition
- Abnormal/Involuntary: Obligor is compelled to pay
- Classification:
- Specific: Obligor performs a specific act
- Substitute: Third party replaces debtor (if obligation not personal to debtor)
- Equivalent: Economic equivalent provided
- Classification:
Requirements for Valid Payment
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Parties: Debtor and Creditor (at least two parties; a person representing a party may act for the entire party)
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Thing to be paid: Relevant item being paid
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Time, Place, and Manner: Specifics on when, where, and how to fulfill payment
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Anyone can make payment (even a third party)
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Only those with interest in fulfillment can compel acceptance by the creditor (debtor, heirs, successors, assignee, authorized party) including co-debtors, guarantors, and sureties.
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Description
Explore the essential methods of extinguishing obligations, including payment and mutual dissent. This quiz covers various aspects such as the death of the debtor, rescission, and the implications for the estate. Test your knowledge on these fundamental legal concepts and principles.
