ENUMERATION 1. Extinguishment of obligations a. By payment or performance b. By the loss of the thing due c.

By the condonation or remission of the debt d. By confusio or merger of the rights of the creditor and debtor e. By compensation f. By novation 2. Other causes of extinguishment a. Death of a party in case the obligation is personal b. Mutual desistance or withdrawal c. Arrival of resolutory period d. Compromise e. Impossibility of fulfillment f. Happening of a fortuitous event 3. Requisites of Article 1234 a. There must be a substantial performance b. The obligor must be in good faith 4. Requisites of Article 1235 a. The obligee knows that the performance is incomplete or irregular b. He accepts the performance without expressing any protest or objection 5. Persons who can make payment a. The debtor b. Iany person who has an interest in the obligation c. Any person who has no interest in the obligatio when there is stipulation that he can make payment 6. Effect of payment by third person a. If made without the knowledge or against the will of the debtor b. If made with the knowledge of the debtor 7. Persons whom payment shall be made a. Creditor b. His successor in interest c. Any person authorized to received it

8. Cases where the debtor is releived from proving the benefit to the creditor a. Subrogation of the payer in the creditors rights b. Ratification of the creditor c. Estoppel on the part of the creditor 9. Special forms of payment a. Dation in payment b. Application of payments c. Payment by cession d. Tender of payment and consignation 10. When is partial performance allowed a. When there is stipulation to that effect b. When the debt is part liquidated and partly unliquidated c. When the different prestations in which the obligation consists are subject to different terms or conditions which affect some of them 11. Places where obligation shall be paid a. If there is a stipulation, the payment shall be made in the place designated b. If there is a stipulation and the thing to be delivered is specific, the payment shall be made at the place where the thing was, at the perfection of the contract c. If there is no stipulation and the thing to be delivered is generic, the place of payment shall be the domicile of the debtor 12. Requisites of application of payment a. There must be one creditor and one debtor b. There must be two or more debts c. The debts must be of the same kind d. The debts to which the payment made by the debtor has been applied must be due e. The payment must not be sufficient to cover all debts

13. Application of payments to debts not yet due a. There is a stipulation that the debtor must so apply b. It is made by the debtor or creditor, as the case maybe, for whose benefit of the period has been constituted 14. Rules on application of payments a. The debtor has the first choice; he must indicate at teh time of making payment, and not afterwards, which particular debt is being paid b. If the debtor does not apply paymeny, the creditor may make the designation by specifying in the receipt which the debt is being paid c. If the creditor has not also made the application, or if theapplication is not valid, the debt, which is most onerous to the debtor among those due, shall be deemed to have been satisfied d. If the debts due are of the same nature and burden, the payment shall be applied to all of them proportionately 15. When a debtis more onerous than another a. An interest bearing is more onerous than a non-interest bearing debt even if the latter is an older one b. A debt as a sole debtor is more onerous than as a solidary debtor c. Debts decured by a mortgage or by pledge are more onerous than unsecured debts d. Of two inerest bearing debts, the one with a highr rate is more onerous e. An obligation with a penalty clause is more onerous than one without penalty clause 16. Requisites of payment by cession a. There must be two or more creditors

b. The debtor must be (partially) insolvent c. The cession must be accepted by the creditors 17. Dation vs. Cession a. One creditor; several creditors b. Does not presuppose the insolvency of the debtor; the debtor is insolvent at the time of assignment c. Does not involve all the property of the debtor; extends to all the property of the debtor subject to execution d. The creditor becomes the owner of the thing given by the debtor; the creditor only acquire the right to sell the thing and apply the proceeds to their credits proportionately e. Act of novation; not an act of novation 18. Requisites of valid consignation a. Existence of a valid debt which is due b. Tender of payment by the debtorand refusal without justifiable reason by the creditor to accept c. Previous notice of consignation to persons interested in the fulfillment of the obligation d. Consignation of the thing or sum due e. Subsequent notice of consignation made to the interested parties 19. Requisites of valid tender of payment a. Tender of payment must comply with the rules on payment. The tender, even if valid, does not by itself produce legal payment, unless it is contemplated by consignation b. It must be unconditional and for the whole amount c. It must be acually made

20. When consignation deemed properly made a. When the creditor accepts the thing or sum deposited, without objection, as payment of the obligation. b. Whenthe creditor questions the validity of the consignation, and the court, after hearing, declares that it has been properly made c. When the creditor neither accepts nor questions the validity of the consignation, and the court after hearing, orders cancellation of the obligation. 21. When loss of the thing due will not extinguish liability a. When the law so provides b. When the stipulation so provides c. When the nature of the obligation requires the assumption of risk d. When the obligation to deliver the specific thing arises from a crime 22. Kinds of impossibility a. Physical b. Legal 23. Requisites of condonation or remission a. It must be gratuitous b. It must be accepted by the obligor c. The parties must have the capacity d. It must not be inofficious e. If made expressly, it must comply with the forms of donations 24. Kinds of remission a. As to extent i. Complete ii. Partial b. As to its form i. Express ii. Implied c. As to its date of effectivity i. Inter vivos ii. Mortis causa

25. Requisites o confusion a. It must take place between the principal debt and creditor b. It must be complete 26. Confusion vs. Compensation a. There is only one person who is a creditor and the debtor; ther eare two persons involved, each of whom is a debtor and a creditor of the other b. One obligation; two obligations c. Impossibility of payment; indirect payment 27. Kinds of compensation a. By its effect or extent i. Total ii. Partial b. By cause or origin i. Legal ii. Voluntary iii. Judicial iv. Facultative 28. Requisites of legal compensation a. The parties are principal creditor and debtor of each other b. Both debts consist in a sum of moner, or of consumable things of the same kind and quality c. Two debts are due and demandable d. Two debts are liquidated e. No retention or controvercy commenced by a third person 29. Where compensation has taken place after assignment a. Assignment with the consent of the debtor b. Assignment with the knowledge but without the consent of the debtor c. Assignment without the knowledge of the debtor

30. Instances where legal compensation is not allowed by law a. Where one of the debts arises from a dipositum b. Where one of the debts arises from a commodatum c. Where one of the debts arises from a claim for support due by gratuitous title d. Where one of the debts consists in civil liability arising from a penal offense 31. Kinds of novation a. According to origin i. Legal ii. Conventional b. According to how it is constituted i. Express ii. Implied c. According to extent or effect i. Total or extinctive ii. Partial or modificatory d. According to the subject i. Real or objective ii. Personal or subjective iii. Mixed 32. Requisites of novation a. A previous valid obligation b. Capacity and intention of the parties to modify or extinguish the obligation c. The modification or extinguishment of the obligation d. The creation of a new and valid obligation 33. Kinds of personal novation a. Substitution b. Subrogation 34. Kinds of substitution a. Expromission b. Delegacion 35. Right of new debtor who pays a. In expromission, payment of the new debtor gives him the right to beneficial reimbursement under the second paragraph of Article 1236

36.

37.

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39.

40.

41.

b. If the payment was made with the consent of the original debtor or on his own initiaive (delegacion), the new debtor is entitled to reimbursement and subrogation under Article 1237 Kinds of subrogation a. Conventional b. Legal Cases of legal subrogation a. When a creditor pays another creditor who is preferred b. When a third person without interest in the obligation pays with the approval of the debtor c. When a third person with interesr in the obligation pays even without the knowledge of the debtor Classifications of contracts according to its name or designation a. Nominate contract b. Innominate contract Kinds of innominate contract a. Do ut des ( I give you that you may give) b. Do ut facias ( I give you that you may do) c. Facto ut des ( I do that you may give) d. Facto ut facias ( I do that you may do) Rules on governing innominate contracts a. The agreement of the parties b. The provisions of the civil code on obligations and contratcs c. The rules governing the most analogous contracts d. The customs of the place Cases when strangers or third persons affected by a contract a. In contracts containing a stipulation in favor of a third person ( stipulation pour autrui) b. In contracts creating real rights c. In contracts entered into a defraud creditors d. In contracts which have been violated at the inducement of a third person 4

42. Requisites of stipulation of pour autrui a. The contracting parties by their stipulation must have clearly and deliberately conferres a favor upon a third person b. The third person must have communicated his acceptance to the obligor before its revocation by the obligee or the original parties c. The stipulation in favor of the third person should be a part, not the whole, of the contract d. The favorable stipulation should not be conditioned or compensated by any kind of obligation whatever e. Neither of the contracting parties bears the legal representation or authorization of the third party for otherwise, the rules on agency will apply 43. Classification of contracts according to perfection a. Consensual b. Real c. Solemn 44. Stages in the life of a contract a. Preparation or negotiation b. Perfection or birth c. Consummation or termination 45. Effect of perfection of the contract a. To the fulfillment of what has been expressly stipulated b. To all the consequences which according to their nature. 46. Requisites of a contract a. Consent of the contracting parties b. Object certain which is the subject matter of the contract c. Cause of the obligation which is established 47. Classes of elements of a contract a. Essential elements i. Common ii. Special 1. As regards to form 2. As regards the subject matter

3. As regards the consideration or cause b. Natural elements c. Accidental elements