CHAPTER 4, SEC. 4 Confusion or Merger (Articles 12751277!

SECTION 4 - CONFUSION OR MERGER

(Arts. 1275-1277)
STUDY GUIDE :
1. "efine confusion or #erger.
$t is t%e #eeting in one &erson of t%e 'u(lities of cre)itor (n) )e*tor +it%
res&ect to t%e s(#e o*lig(tion. (Art. 1275)
2. ,%(t (re t%e re'uisites of confusion-
(a) $t #ust t(.e &l(ce *et+een t%e &rinci&(l )e*tor (n) cre)itor/ (n)
(b) $t #ust *e co#&lete.
Example0 D o+es C P1,111 e2i)ence) *3 ( negoti(*le &ro#issor3 note in f(2our of C. C
in)orse) t%e note to E +%o, in turn, in)orse) it to F. 4o+ F *oug%t goo)s fro# t%e store
of D. $nste() of &(3ing c(s%, F 5ust in)orse) t%e note to D. T%e result is t%(t D, +%o is
t%e &rinci&(l )e*tor un)er t%e &ro#issor3 note, (lso *eco#es t%e cre)itor un)er t%e s(i)
note/ in ot%er +or)s, D o+es %i#self. Conse'uentl3, %is o*lig(tion is e6tinguis%e).
3. ,%(t is t%e effect of #erger in t%e &erson of t%e &rinci&(l )e*tor or cre)itor-
(Art. 1276, par. 1)
$t e6tinguis%es t%e &rinci&(l o*lig(tion.
$t *enefits t%e gu(r(ntors *ec(use t%e (ccessor3 o*lig(tion of gu(r(nt3 is (lso
e6tinguis%e). Accessory follows the principal.
Example 0 D o+es C P111,111 +it% G (s gu(r(ntor. C (ssigns %is cre)it to E. E (ssigns
t%e cre)it to F. F (ssigns t%e cre)it to D. Ds o*lig(tion is e6tinguis%e), (n) G is t%en
rele(se) fro# %is o*lig(tion (s gu(r(ntor.
4. ,%(t is t%e effect of #erger in t%e &erson of t%e gu(r(ntor- (Art. 1276, par. 2)
$t e6tinguis%es t%e gu(r(nt3 *ut le(2es t%e &rinci&(l o*lig(tion in force.
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CHAPTER 4, SEC. 4 Confusion or Merger (Articles 12751277!
Example 0 D o+es C P111,111 +it% G (s gu(r(ntor. C (ssigns %is cre)it to E. E (ssigns
t%e cre)it to F. F (ssigns t%e cre)it to G. Here, G *eco#es t%e ne+ cre)itor of D. $n t%is
c(se, t%e contr(ct of gu(r(nt3 is e6tinguis%e). Ho+e2er, Ds o*lig(tion to &(3 t%e
&rinci&(l o*lig(tion su*sists. G no+, (s t%e ne+ cre)itor, c(n )e#(n) &(3#ent of t%e
P111,111 fro# D.
5. ,%(t is t%e effect of confusion in ( 5oint o*lig(tion- (Art. 1277)
Confusion +ill e6tinguis% ( 5oint o*lig(tion onl3 +it% res&ect to t%e s%(re of t%e
cre)itor or )e*tor in +%o# t%e #erger t(.es &l(ce.
Example 0 D1 (n) D2 5ointl3 o+e C P111,111. $f C (ssigns t%e entire cre)it to D1, D1s
s%(re is e6tinguis%e), *ut D2s s%(re re#(ins. $n ot%er +or)s, D2 +ill still o+e C t%e su#
of P51,111. $n ( 5oint o*lig(tion, t%e )e*ts (re )istinct (n) se&(r(te fro# e(c% ot%er.
6. ,%(t is t%e effect of confusion in ( soli)(r3 o*lig(tion-
Merger in t%e &erson of one of t%e soli)(r3 )e*tors s%(ll e6tinguis% t%e entire
o*lig(tion, *ec(use it is (lso ( #erger in t%e ot%er soli)(r3 )e*tors. (Art. 1215)
Ho+e2er, t%e soli)(r3 )e*tor (in +%ose &erson t%e #erger too. &l(ce! #(3
cl(i# rei#*urse#ent fro# %is co)e*tors for t%e s%(res +%ic% corres&on) to t%e#.
(Art. 1217, par. 2)
Example 0 Pursu(nt to ( &ro#issor3 note, D1 (n) D2 (re soli)(ril3 li(*le to C for
P111,111. C en)orse) t%e note to E. E en)orse) t%e note to F. F en)orse) t%e note
*(c. to D1. T%e o*lig(tion %ere is tot(ll3 e6tinguis%e). Ho+e2er, D1 %(s t%e rig%t to
&rocee) (g(inst D2, (n) collect P51,111 *3 +(3 of rei#*urse#ent *ec(use it is (s if D1
&(i) t%e entire )e*t.
APPLICATION/PROBLEMS :
1. 7n 8(nu(r3 91, 2112, Pr(ncer *orro+e) P211,111 fro# :i6en. Ru)olf
gu(r(ntee) t%(t if Pr(ncer is not (*le to &(3 %is o*lig(tion on 8(nu(r3 91, 2119, Ru)olf
+ill (ns+er for t%e entire o*lig(tion of P211,111 to :i6en. 7n 8une 12, 2112, :i6en
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CHAPTER 4, SEC. 4 Confusion or Merger (Articles 12751277!
(ssigne) %is cre)it to "on(l). 7n August 15, 2112, "on(l) (ssigne) t%e cre)it to ;lori(.
7n 4o2e#*er 12, 2112, ;lori( (ssigne) t%e cre)it to Ru)olf. 7n 8(nu(r3 91, 2119,
Ru)olf +(nts to collect t%e P211,111 fro# Pr(ncer. Pr(ncer, %o+e2er, refuses to &(3.
Pr(ncer (lleges t%(t +%en t%e cre)it +(s en)orse) to t%e gu(r(ntor of t%e o*lig(tion,
Ru)olf, t%is co#&letel3 e6tinguis%e) t%e o*lig(tion of Pr(ncer. "o 3ou (gree +it%
Pr(ncer<s (rgu#ent- Art. 127=
2. Ar#(n)o (n) 4icol(s 5ointl3 o+e "(niel( P411,111 &(3(*le on M(rc% 15, 2119.
7n 8(nu(r3 9, 2119, "(niel( *oug%t so#e &ieces of 5e+elr3 fro# t%e store of Ar#(n)o.
As &(3#ent, (n) inste() of &(3ing c(s%, "(niel( (ssigns %er entire P411,111 cre)it to
Ar#(n)o. ,%en t%e )e*t fell )ue on M(rc% 15, 2119, Ar#(n)o +ent to 4icol(s collecting
t%e (#ount of P211,111 (s 4icol(s< &ro&ortion(te s%(re in t%e in)e*te)ness. 4icol(s,
%o+e2er, refuse) to #(.e &(3#ent, (n) cl(i#e) t%(t +%en "(niel( (ssigne) t%e cre)it to
Ar#(n)o, t%e &rinci&(l o*lig(tion %() (lre()3 *een e6tinguis%e) *3 confusion or #erger.
Hence, 4icol(s is (lso rele(se) fro# li(*ilit3. "oes 4icol(s< (rgu#ent %(2e leg(l *(sis-
Art. 1277
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