MODULE 3, EPISODE 1  Article 1234.

If the obligation has been

Extinguishment of Obligations
 Article 1231. Obligations
extinguished:
(1) By payment or performance;
(2) By the loss of the thing due;
(3) By the condonation or remission of
the debt;
(4) By the confusion or merger of the
rights of creditor and debtor;
(5) By compensation;
(6) By novation.
(1)Payment or Performance
 Article 1232. Payment means not only
the delivery of money but also the
performance, in any other manner, of an
obligation.
 Macoconsidemoduler na bayad ka
na kapag nagawa mo na yung
kailangan mong gawin.
 Example: Kapag yung obligation
kunyari is pagpintura ng bahay.
Macoconsider lang na bayad na
kapag nagawa at natapos na yung
dapat mong gawin.
 Article 1233. A debt shall not be
understood to have been paid unless the
thing or service in which the obligation
consists have been completely delivered
or rendered, as the case may be.
 Hindi ka macoconsider na bayad
talaga unless the obligation has
been completely delivered or
rendered.
 Example: May restaurant ako and
nagpadeliver ako ng sampung case
ng Coke. Walong case lang ang
deliver kaya considered as hindi pa
bayad yung obligation.
 Example: Kapag kunyari
nangutang ako ng 100,000 tapos
70,000 pa lang binayaran ko so
hindi pa ako completely bayad.
substantially performed in good faith, the
obligor may recover as though there had
are
been a strict and complete fulfillment, less
damages suffered by the obligee.
 Example: Noong nag-erupt ang
Taal volcano at kumalat ang news
about sa unang covid case sa
Pilipinas, nagkaroon ng high
demand sa face masks which led to
the increase ng price. Kapag
umorder ako ng 10 boxes of face
mask and 9 lang yung nadeliver
dahil meron na talagang shortage
ng mga face masks, it will be
considered a substantial
performance in good faith.
 Article 1235. When the obligee accepts
the performance, knowing its
incompleteness or irregularity, and
without expressing any protest or
objection, the obligation is deemed fully
complied with.
 Sinasabi na yung isang party na
tumatanggap ng isang product or
service knowing na hindi kumpleto
yung binigay sa kanya and hindi
ganun ang usapan, tapos hindi siya
nagprotesta, tapos na yung
obligation.
 Example: Nag-order ng 10 na Class
A t-shirts pero 8 na Class B na t-
shirt ang dumating so kailangan
ibring up yung issue and mag-
object agad kasi pag hindi ka nag
object at kinuha mo agad, sign yun
na kuntento ka na sa binigay sayo.
 Article 1236. The creditor is not bound
to accept payment or performance by a
third person who has no interest in the
fulfillment of the obligation, unless there
is a stipulation to the contrary.
 Example: Umutang si debtor ng
20,000 kay creditor. Si X, third
 person, sinabi niya na gusto niya
daw na siya yung magbabayad ng
20,000. The creditor is not bound
to accept payment or performance
kasi hindi niya naman kilala si X
unless may pinag-usapan si debtor
at creditor dati na okay lang na
ibang tao ang magbayad ng utang
ni debtor kay creditor.
Whoever pays for another may
demand from the debtor what he has
paid, except that if he paid without the
knowledge or against the will of the
debtor, he can recover only insofar as the
payment has been beneficial to the
debtor.
 Example: (First Scenario)
Kailangan makuha muna ni X yung
consent ni debtor bago niya
bayaran yung utang kay creditor.
Pag pumayag si debtor, ang effect
is pag nakabayad na si X kay
creditor, magkakaroon na ng
karapatan si X na maningil ng
20,000 kay debtor.
 Example: (Second Scenario)
Nagpunta si X kay debtor tapos
nagtanong siya kung pwedeng siya
ang magbayad ng utang ni creditor
kay debtor. Hindi pumayag si
debtor pero makulit si X at
nagbayad pa rin ng 20,000 kay
creditor. (Applicable din dito yung
hindi nagpaalam si X kay creditor
tapos binayaran niya pa rin.) Ang
mangyayari is pwedeng marecover
ni X ang amount na binayaran niya
kay debtor which is 20,000 for the
reason na dahil kay X, nawalan ng
utang na 20,000 si debtor kay
creditor which is yung benefit ni
debtor. Under solutio indebiti,
kaialngan ibalik ni debtor ang
20,000 kay X dahil nagbenefit siya.
 Example: (Third Scenario)
Nagbayad na ng 5,000 si debtor
kay creditor. Alam ni X na may
utang na 20,000 si debtor kay
creditor without knowing na
nabayaran na pala ni debtor yung
5,000. Without asking for the
debtor’s consent, nagpunta siya
kay creditor para magbayad ng
20,000. Ang magiging effect is pag
siningil ni X si debtor, 15,000 na
lang ang pwede niyang marecover.
15,000 lang kasi ang naitulong ni X
kay debtor.
 Article 1237. Whoever pays on behalf of
the debtor without the knowledge or
against the will of the latter, cannot
compel the creditor to subrogate him in
his rights, such as those arising from a
mortgage, guaranty, or penalty.
 Example: (First Scenario) Umutang
si Debtor ng 50,000 kay Creditor.
In this case, meron silang nilagay
na collateral na car. Ang effect
kapag biglang pumasok si X at
pinayagan siya ni Debtor na
magbayad ng utang niyang 50,000
kay Creditor, pwedeng habulin ni X
yung kotse ni Debtor dahil
nasubrogate siya sa karapatan ni
Creditor.
 Example: (Second Scenario)
Umutang si Debtor ng 50,000 kay
Creditor. Without the consent of
Debtor, binayaran ni X ang utang
ni Debtor na 50,000 kay Creditor.
Ang effect is hindi niya pwedeng
habulin yung kotse ni Debtor kasi
wala naman silang napag-usapan
na ganun.
 Article 1238. Payment made by a third
person who does not intend to be
reimbursed by the debtor is deemed to be
a donation, which requires the debtor's
 consent. But the payment is in any case
valid as to the creditor who has accepted
it.
 Example: May utang na 20,000 si
Debtor kay Creditor. Pumasok si X
at sinabi niya na siya na daw ang
magbabayad ng utang ni Debtor
kay Creditor pero wala daw
intention si X para maningil kay
Debtor. So parang nagreregalo
lang si X kay Debtor.
 Importante pa rin ang
consent ni Debtor kasi hindi
ka pwedeng magdonate,
directly or indirectly, ng
walang consent. This is for
the reason na kasama sa
karapatan natin na
tumanggi sa mga inaalok sa
atin. Hindi ka pwedeng
pwersahin ng ibang tao na
magkaroon ka ng utang na
loob sa kanila.
 Pag pumayag si Debtor,
valid yun pero kung hindi,
void yun. Material yung
pagiging valid or void kasi
pwedeng later on, if valid
yung pagbayad ni X, hindi
niya pwedeng singilin si
Debtor. Kapag naman void,
pwede pa ring singilin ni X
si Debtor.
 Kahit sa anong case, valid
pa rin ang payment sa part
ni Creditor.
 Article 1239. In obligations to give,
payment made by one who does not have
the free disposal of the thing due and
capacity to alienate it shall not be valid,
without prejudice to the provisions of
Article 1427 under the Title on “Natural
Obligations”.
 Yung payment or pagbibigay ng
isang bagay na ineexpect mo ay
magkakaroon lang ng bisa kapag
ang taong magbibigay ay sa kanya
talaga yun, may free disposal siya
of the thing, and at the same time,
may capacity siya to alienate.
 Example: May bibili sa akin ng
isang cellphone. Hindi valid na
performance kapag yung binenta
kong phone ay hindi naman sa
akin. Wala akong free disposal kasi
hindi naman sa akin yung phone
na yun in the first place.
 Walang free disposal of the
thing means walang
karapatan para ibenta yung
bagay na yun dahil hindi
sayo
 Walang capacity to alienate
the thing kasi either sila ay
minor or may mental
incapacity
 Article 1240. Payment shall be made to
the person in whose favor the obligation
has been constituted, or his successor in
interest, or any person authorized to
receive it.
 Sinasabi na dapat mag-ingat sa
kung kanino ibibigay yung bayad.
Hindi pwedeng kung sino na lang
yung mapag-abutan mo ng bayad
yung bibigyan mo ng bayad mo.
Kapag hindi mo inabot yung bayad
mo sa mismong tao na
pinagkakautangan mo or sa tao na
inauthorize niya na tumanggap ng
bayad mo, hindi macoconsider na
valid yung payment.
 Example: Pumunta si Debtor sa
bahay ni Creditor tapos wala doon
si Creditor. May nakitang lalaki si
Debtor sa labas ng bahay ni
Creditor tapos inabot ni Debtor
 yung bayad sa kanya. Hindi valid
yung payment at may karapatan pa
ring singilin ni Creditor si Debtor.
 Article 1241. Payment to a person who is
incapacitated to administer his property
shall be valid if he has kept the thing
delivered, or insofar as the payment has
been beneficial to him.
 Pinag-uusapan dito yung
incapacity ng taong babayaran.
 Pag may utang si Debtor sa isang
taong may mental health problem
or pag nabaliw siya, magiging valid
lang ang payment ni Debtor kapag
kineep ng Creditor yung binigay sa
kanya.
 This reminds us na wag dapat
magbayad kapag wala sa tamang
pag-iisip yung pinagkakautangan
mo.
 Example: Nangutang si Debtor ng
10,000 kay Creditor. Binayaran na
ni Debtor yung utang niya kay
Creditor habang baliw pa si
Creditor. Sinunog ni Creditor yung
8,000 tapos noong nakita ng mga
kasambahay si Creditor, 2,000 na
lang ang natira sa pera niya. Noong
bumalik na si Creditor sa katinuan,
pwede niyang singilin ulit si
Debtor ng 8,000. Yung 2,000 na
hindi nasunog yung valid na
payment.
Payment made to a third person shall also
be valid insofar as it has redounded to the
benefit of the creditor. Such benefit to the
creditor need not be proved in the
following cases:
(1) If after the payment, the third person
acquires the creditor's rights;
(2) If the creditor ratifies the payment to
the third person;
(3) If by the creditor's conduct, the debtor
has been led to believe that the third
person had authority to receive the
payment.
 Article 1242. Payment made in good
faith to any person in possession of the
credit shall release the debtor.
 Para makautang ka sa ibang tao,
nag-iissue ka ng negotiable
instrument like promissory note.
 Example: Umutang si Debtor kay
Creditor sa pamamagitan ng isang
promissory note which states na “I
promise to pay Mr. Creditor”. So
nabigay na yung note kay Creditor
pero biglang nahulog yung
instrument at napunta kay X. On
the due date, nagpunta si X kay
Debtor para singilin siya. Hindi
yun pwede kasi yung papel na yun
is not necessarily yung credit, but
instrument only. Si Creditor lang
ang may karapatan para maningil
kay Debtor kasi pangalan niya
yung nakalagay doon sa
promissory note. Kapag binayaran
ni Debtor si X, hindi valid yung
payment niya na yun.
 Example: Pag bearer instrument
ang ginamit at nawala ni Creditor
yung instrument tapos napulot ni
X, magkakaroon na ng karapatan si
X para singilin si Debtor and
mawawala na yung utang ni
Debtor kay Creditor.
 Article 1243. Payment made to the
creditor by the debtor after the latter has
been judicially ordered to retain the debt
shall not be valid.
 Example: Si Debtor ay may utang
na 50,000 kay Creditor. Si J, may
utang din kay Debtor na 50,000.
Nahihirapan na maningil si
Creditor kay Debtor kaya pag
nalaman niya na may receivables
si Debtor at 50,000 ang utang ni J
 kay Debtor ang pwedeng irequest
ni Creditor sa korte na sabihan kay
judge na sabihan niya si J na wag
munang bayaran si Debtor at ihold
muna ito, and later on, pwedeng
idiretso na ang bayad ni J kay
Creditor.
 For the protection of the
Creditor, pinapayagan siya
na ipahold kay J ang bayad
niya kay Debtor which is
called garnishment.
 Kapag makulit si J at kay
Debtor pa rin binigay yung
bayad at hindi pinakinggan
ang sinabi ng korte na ihold
niya ang bayad, hindi
magiging valid ang payment
na ginawa niya kay Debtor.
 Article 1244. The debtor of a thing
cannot compel the creditor to receive a
different one, although the latter may be
of the same value as, or more valuable
than that which is due.
 Nag-aapply sa mga specific object.
 Example: Nangako si A na ibigay si
Casper the dog kay B. Hindi
pwedeng ibang aso ang ibigay ni A
kay B. Kahit pa mas mahal yung
isang aso kesa kay Casper, hindi
pwedeng pilitin ni A si B na
tanggapin yung isang aso. Hindi
pwedeng ijustify ni A na porket
mas mahal yung bagong inaalok na
aso kesa kay Casper ay required
niya nang tanggapin. At the end of
the day, si Creditor ang masusunod
kung tatanggapin niya ba o hindi
yung inalok sa kanya na kapalit.
Hindi justification kung same lang
ba ng value yung bagong aso kay
Casper or kahit pa mas mataas pa
value ng bagong aso kesa kay
Casper.
In obligations to do or not to do an act or
forbearance cannot be substituted by
another act or forbearance against the
obligee's will.
 Hindi lang sa object applicable
yung article, but it is also
applicable sa mga obligations to do
or not to do.
 Example: May kasal tapos hinire
ng ikakasal si A para kumanta. Sabi
ng manager ni A, mas magaling
naman daw si B kaya si B na lang
daw ang kapalit ni A. This does not
mean na dapat na agad palitan ni B
si A. Ang masusunod pa rin dapat
ay ang ikakasal since in the first
place, si A ang hinire nila at sila
ang masusunod.
Dation in Payment
 dacion en pago
*example ng novation
 A special form of payment where the
ownership of property is transferred to
his creditor to pay a debt in money. It is
important that both debtor and creditor
consent to such arrangement.
 Article 1245. Dation in payment,
whereby property is alienated to the
creditor in satisfaction of a debt in money,
shall be governed by the law of sales.
 Isang way para maka-extinguish
ng utang is through dacion en pago.
 Example: May utang si Debtor kay
Creditor na 10,000. Noong
sinisingil na ni Creditor si Debtor,
walang ganung amount si Debtor
pero merong iPhone si Debtor.
Kapag talagang nahihiya na si
Debtor kay Creditor dahil hindi pa
siya nakakapagbayad, pwedeng
alukin ni Debtor si Creditor na
instead of paying 10,000, yung
iPhone yung magseserve as
payment niya.
 Article 1246. When the obligation
consists in the delivery of an
indeterminate or generic thing, whose
quality and circumstances have not been
stated, the creditor cannot demand a
thing of superior quality. Neither can the
debtor deliver a thing of inferior quality.
The purpose of the obligation and other
circumstances shall be taken into
consideration.
 Example: Sa farm, nag-order si A
ng sampung chicken kay B. Hindi
pwedeng magdemand si A ng
manok na pang sabong kasi
masyadong mataas yung quality ng
ganung klase ng manok. Hindi rin
pwedeng ibigay ni B kay A yung
mga manok na may sakit.
 Article 1247. Unless it is otherwise
stipulated, the extrajudicial expenses
required by the payment shall be for the
account of the debtor. With regard to
judicial costs, the Rules of Court shall
govern.
 Extrajudicial expenses are
expenses outside the court.
 Article 1248. Unless there is stipulation
to that effect, the creditor cannot be
compelled to partially receive the
prestations in which the obligations
consists. Neither may the debtor be
required to make partial payments.
 Hindi pwedeng part ng isang
prestation and part ng second
prestation ang marerceive niya. To
be fair, hindi rin pwede na partial
payment.
However, when the debt is in part
liquidated and in part unliquidated, the
creditor may demand and the debtor may
effect the payment of the former without
waiting for the liquidation of the latter.
 Article 1249. The payment of debts in
money shall be made in the currency
stipulated, and if it is not possible to
deliver such currency, then in the
currency which is legal tender in the
Philippines.
 General rule is kung ano ang
currency na napag-usapan, yun
dapat ang gamitin. Kung hindi
possible or wala yung currency na
napag-usapan, yung currency
which is legal tender sa Pilipinas
ang gagamitin which is Philippine
Peso.
The delivery of promissory notes payable
to order, or bills of exchange or other
mercantile documents shall produce the
effect of payment only when they have
been cashed, or when through the fault of
the creditor they have been impaired.
In the meantime, the action derived from
the original obligation shall be held in the
abeyance.
 Article 1250. In case an extraordinary
inflation or deflation of the currency
stipulated should supervene, the value of
the currency at the time of the
establishment of the obligation shall be
the basis of payment, unless there is an
agreement to the contrary.
Legal Tender Law
 Kapag nagbabayad ng utang
ang isang tao, hindi siya
pwedeng tanggihan kapag
Philippine Peso ang inaalok
niyang bayad. Hindi pwedeng
irefuse ang pagtanggap ng
Philippine Peso.
o Philippine currency notes have no
limit to their legal tender power. In
particular, all notes and coins issued
by the BSP shall be fully guaranteed by
the Government of the Republic of the
Philippines and shall be legal tender in
the Philippines for all debts, both
 public and private, as stipulated under
Section 52 of R.A. No. 7653.
 Walang limit kapag papel na
pera ang gamit.
o However, in the case of coins in
denomination of 1- (piso), 5-(limang
piso), and 10-Piso(sampung piso) they
shall be legal tender in amounts not
exceeding Php1,000, while coins in
denomination of 1-, 5-, 10-, and 25-
Sentimo shall be legal tender in
amounts not exceeding Php100,
pursuant to BSP Circular No. 537,
Series of 2008.
 Example: Nagpunta si A sa
Uniqlo at bibili siya ng damit na
worth 1,000. Isang libong
piraso ng piso ang
ipangbabayad niya, hindi siya
pwedeng tanggihan.
 Example: Pinangbayad mo sa
tricycle ay 40 na piraso ng
benchingko. With this, hindi
pwedeng tumanggi yung
tricycle driver sa binayad mo.
 Article 1251. Payment shall be made in
the place designated in the obligation.
 Kung saan napag-usapan, doon
dapat magbayad.
There being no express stipulation and if
the undertaking is to deliver a
determinate thing, the payment shall be
made wherever the thing might be at the
moment the obligation was constituted.
In any other case the place of payment
shall be the domicile of the debtor.
 Sa bahay daw dapat ng umutang
magkikita ang debtor at ang
creditor.
If the debtor changes his domicile in bad
faith or after he has incurred in delay, the
additional expenses shall be borne by
him.
 Kapag si debtor ay palipat-lipat
nang bahay, yung magiging gastos
ng creditor ay machacharge kay
debtor.
These provisions are without prejudice to
venue under the Rules of Court.
Application of Payment
 It is the designation of the debt to which
payment shall be applied when the debtor
owes several debts in favor of the same
creditor.
 Applicable lang ito kapag
madaming iba’t ibang utang si
debtor kay creditor.
 Requisites of application of payment:
a. There must be two or more debts
b. The debts must be of the same kind
c. The debts are owed by the same debtor
to the same creditor
d. All debts are due, except:
i. When the parties have stipulated
that payment may be applied to a
debt not yet due or
ii. When the application is made by
the party for whose benefit the
term has been constituted.
 Article 1252. He who has various debts
of the same kind in favor of one and the
same creditor, may declare at the time of
making the payment, to which of them the
same must be applied. Unless the parties
so stipulate, or when the application of
payment is made by the party for whose
benefit the term has been constituted,
application shall not be made as to debts
which are not yet due.
 Hindi pwedeng gamitin yung
inabot na pera pambayad sa mga
utang na hindi pa naman due.
If the debtor accepts from the creditor a
receipt in which an application of the
payment is made, the former cannot
complain of the same, unless there is a
cause for invalidating the contract.
  Example: Si Debtor ay may utang
kay Creditor na 10,000 and then
later on, nangutang ulit siya ng
5,000. With this, dalawa na yung
utang ni Debtor kay Creditor.
Noong magbabayad na si Debtor,
3,000 lang ang naabot niya.
Kailangan pag-usapan nila kung
saan dapat ibabawas yung binayad
na yun.
 Article 1253. If the debtor accepts from
the creditor a receipt in which an
application of the payment is made, the
former cannot complain of the same,
unless there is a cause for invalidating the
contract.
 Any time na may utang ka, yung
interest muna ang unang
babawasan na babayaran.
 Article 1254. When the payment cannot
be applied in accordance with the
preceding rules, or if application can not
be inferred from other circumstances, the
debt which is most onerous to the debtor,
among those due, shall be deemed to have
been satisfied.
 Example: Si Debtor ay may utang
na 10,000 interest bearing note at
5,000 kay Creditor. Noong
magbabayad na siya, 3,000 lang
ang kaya niyang ibigay. Ang
hierarchy kung sino ang dapat
masunod kung saan maaapply
yung 3,000 ay:
1. Choice ni Debtor –
tatanungin dapat si
Debtor kung ano yung
gusto niyang bawasan
2. Choice ni Creditor – siya
ang pipili kapag hindi
makapili si Debtor
3. Article 1254 wherein
sinasabi na ibabawas daw
dapat yung payment sa
utang na mabigat or sa
utang na onerous.
Nagiging mabigat ang
isang debt kapag ito ay
may interest, kapag may
penalty, or kapag may
nakalagay na collateral.
4. Article 1254 wherein
sinasabi na kung same
lang ng bigat, hahatiin
yung payment sa mga
utang proportionately
 Sa 10,000 ibabawas kasi mas
mabigat yung 10,000 since
interest-bearing note siya.
If the debts due are of the same nature
and burden, the payment shall be applied
to all of them proportionately.
 Kapag parehas lang ng bigat yung
dalawang utang ni Debtor kay
Creditor, hahatiin daw ang
payment proportionately.
 Example: Pag nagbayad si Debtor
ng 3,000 at meron siyang
dalawang utang na 10,000 at
5,000, mababawasan ng 2,000
yung 10,000 na utang niya while
mababawasan ng 1,000 yung 5,000
na utang niya.
Payment by Cession
 cede = to give up
 to give up all your properties for
the payment of your obligation
 dacion en pago/Dation in Payment:
ineextinguish mo yung utang
 It is the abandonment or assignment by
the debtor of all his property in favor of
his creditors so that the latter may sell
them and recover their claims out of
the proceeds.
 Kailangan nang ibenta ni Debtor
lahat ng property niya para
mabayaran niya lahat ng utang
niya.
 The cession or assignment operated only
to authorize the creditors to sell the
debtor’s property, hence, ownership is
not transferred to them.
 Article 1255. The debtor may cede or
assign his property to his creditors in
payment of his debts. This cession, unless
there is stipulation to the contrary, shall
only release the debtor from
responsibility for the net proceeds of the
thing assigned. The agreements which, on
the effect of the cession, are made
between the debtor and his creditors shall
be governed by special laws.
Tender of Payment and Consignation
 Tender of Payment is the act of the
debtor offering to his creditor the
performance of an obligation.
 Ito yung pag-aabot ng bayad ng
debtor sa creditor.
Consignation is the act of depositing
the sum or the thing due in court
whenever the creditor unjustly
refuses or in cases when the creditor
cannot accept it.
 Ito yung ipapaconsign mo sa korte
kasi yung creditor ay ayaw
tanggapin ang bayad ni debtor.
 Sequence of events in Tender of
Payment and Consignation
i. There must be a valid tender of
payment. It must possess all
the elements of a valid
payment.
 Dapat yung
binabayarang utang ay
due na kasi baka gusto
pa ni creditor na kumita
pa ng mas malaking
interest. With this, hindi
pwedeng pilitin ni
debtor na tanggapin ni
creditor ang bayad.
ii. The creditor unjustly refuses to
receive payment.
 Kapag ayaw tanggapin
kahit kumpleto naman
ang bayad mo
iii. The debtor shall notify the
creditor or any person
interested in the fulfillment of
the obligation of his (the
debtor’s) intention to deposit
the sum or thing due with the
judicial authorities.
 first notice – one last
chance para tanggapin
ni creditor ang payment
iv. The sum or thing due is
deposited in court/judicial
authorities.
 Ipapa-consign sa korte
v. The debtor shall AGAIN notify
the persons interested in the
fulfillment of the obligation
that consignation has been
made.
 second notice –
sasabihin na kay
creditor na hindi niya
na pwedeng kulitin si
debtor dahil nasa korte
na ang bayad sa kanya
 Article 1256. If the creditor to whom
tender of payment has been made
refuses without just cause to accept it,
the debtor shall be released from
responsibility by the consignation of
the thing or sum due.
 Bago magpa-consignation sa korte,
kailangan muna dumaan sa
proseso ng tender of payment.
Wag mun dapat magpunta sa korte
hangga’t hindi pa inaalok si
creditor.
Consignation alone shall produce the
same effect in the following cases:
 When the creditor is absent or
unknown, or does not appear
at the place of payment;
 Pumunta si Debtor sa  Article 1257. In order that the
bahay ni Creditor pero
wala siya or lumipat na
siya ng bahay. Pwede
nang ipa-consign sa
korte.
 When he is incapacitated to
receive the payment at the time
it is due;
 Baliw si creditor so
instead na ibigay ni
debtor sa kanya, ipa-  Article 1258. Consignation shall be
consign na lang muna
habang hindi pa siya
okay.
 When, without just cause, he
refuses to give a receipt;
 Kapag walang resibo,
pwedeng in the future,
baliktarin niya yung
situation, so pwede
niyang singilin si debtor
and if sinabi ni debtor  Article 1259. The expenses of
na bayad na siya,
hahanapin ni creditor
yung proof of payment
kay debtor.
 When two or more persons
claim the same right to collect;  Article 1260. Once the consignation
 Kapag namatay si
Creditor tapos may
dalawang nag-aaway
kung sino kukuha nun,
ipa-consign na lang sa
korte.
 When the title of the obligation
has been lost.
 Kapag gumamit ng
promissory note tapos
noong magbabayad na si
debtor, nawala daw ni
creditor yung note. Ang
dapat gawin is ipa-
consign na lang sa korte.
consignation of the thing due may
release the obligor, it must first be
announced to the persons interested
in the fulfillment of the obligation.
 Importante daw na i-announce
 Ito yung first notice
The consignation shall be ineffectual if
it is not made strictly in consonance
with the provisions which regulate
payment.
made by depositing the things due at
the disposal of judicial authority,
before whom the tender of payment
shall be proved, in a proper case, and
the announcement of the consignation
in other cases.
The consignation having been made,
the interested parties shall also be
notified thereof.
 Ito yung second notice
consignation, when properly made,
shall be charged against the creditor.
 Si creditor dapat ang magbabayad
kasi hindi niya na lang tinanggap
agad yung bayad sa kanya
has been duly made, the debtor may
ask the judge to order the cancellation
of the obligation.
Before the creditor has accepted the
consignation, or before a judicial
declaration that the consignation has
been properly made, the debtor may
withdraw the thing or the sum
deposited, allowing the obligation to
remain in force.
 Pwedeng icancel ni debtor yung
consignation at siya na lang ang
 mag-aabot ng payment kay
creditor.
 Article 1261. If, the consignation
having been made, the creditor should
authorize the debtor to withdraw the
same, he shall lose every preference
which he may have over the thing. The
co-debtors, guarantors and sureties
shall be released.
 Pinapayagan ni creditor na bawiin
ni debtor yung naiwang payment
sa korte.
MODULE 3, EPISODE 2
(2)Loss of the thing due
 A thing is considered lost when it
perishes or goes out of commerce or
disappears in such a way that its
existence is unknown or it cannot be
recovered.
 Article 1262. An obligation which
consists in the delivery of a
determinate thing shall
extinguished if it should be lost or
destroyed without the fault of the
debtor, and before he has incurred in
delay.
 Tinutukoy dito pag without the
fault of the debtor which is called
fortuitous event.
 Legal delay
 Naeextinguish ang obligation
kapag may fortuitous event.
When by law or stipulation, the
obligor is liable even for fortuitous
events, the loss of the thing does not
extinguish the obligation, and he shall
be responsible for damages. The same
rule applies when the nature of the
obligation requires the assumption of
risk.
 Kapag napag-usapan ng parties na
kapag may fortuitous events ay
may magiging liable at responsible
for the damages, pwede nilang i-
stipulate na maging liable and
debtor.
 Example: Pag nasira ang bahay ng
isang tao dahil sa lindol, magiging
liable ang insurance company
since yun ang nature ng kanilang
obligation.
 Article 1263. In an obligation to deliver a
generic thing, the loss or destruction of
anything of the same kind does not
extinguish the obligation.
 Genus nunquam perit which means
genus never perishes or a generic
thing never perishes
 Example: Pag nangako si A ng aso
kay B at namatay yung aso na
ibibigay sana ni A kay B, hindi pa
rin maeextinguish ang obligation
since ang pinangako naman ni A ay
isang generic thing which means
na pwede pa itong mapalitan.
 Article 1264. The courts shall determine
be
whether, under the circumstances, the
partial loss of the object of the obligation
is so important as to extinguish the
obligation.
 Minsan hindi kailangan totally
masira ang isang bagay or hindi
completely mamatay ang subject
matter para masabi na may loss.
Kahit partial lang ang effect, it may
be so important na maeextinguish
na ang obligation.
 Example: Bumili si A ng manok
panabong. Umiika-ika na yung
manok at pwede yun maging
dahilan para macancel and
contract of sale dahil magkakaroon
ng malaking effect yun kapag
kunyari pinanglaban na ni A yung
iika-ika na manok, malaki yung
possibility na matalo siya.
 Article 1265. Whenever the thing is lost
in the possession of the debtor, it shall be
presumed that the loss was due to his
fault, unless there is proof to the contrary,
and without prejudice to the provisions of
Article 1165. This presumption does not
apply in case of earthquake, flood, storm,
or other natural calamity.
 Kapag yung pinangako ng
nagbebenta na subject matter ay
bigla na lang namatay at wala
siyang mapakita na dahilan kung
bakit o paano nangyari yun,
iprepresume agad na kasalanan
yun ng nagbebenta.
 Hindi nag-aapply kapag may
sakuna pero pag wala namang
sakuna at bigla na lang kunyari
namatay yung subject matter, for
example is yung aso, then there
must be a reason for the dog’s
death.
 Article 1266. The debtor in obligations to
do shall also be released when the
prestation becomes legally or physically
impossible without the fault of the
obligor.
 Example: Si A ay isang singer and
may kontrata siya para kumanta sa
isang debut. Nagkasakit siya at
kailangan operahan ang lalamunan
niya kaya sasabihin niya sa
debutant na physically impossible
na kumanta siya sa debut.
 Example: May contract artist ang
isang tv network. Siya ay 9 years
old. Required siya na
makapagtaking in 50 days. Ngayon
with Covid, kahit gusto ng bata
magwork, hindi siya pwedeng
magwork. It will be legally
impossible kasi ngayon, 21 years
old pataas lang ang pwedeng
magtrabaho.
 Article 1267. When the service has
become so difficult as to be manifestly
beyond the contemplation of the parties,
the obligor may also be released
therefrom, in whole or in part.
 Example: Ngayong may pandemic,
madaming obligation na hindi na
ganun kdaling i-comply. May
contractor na nangako na tapusin
ang isang bahay in three months
pero biglang nagkaroon ng
pandemic. It will be impossible to
complete the house withing three
months kasi kailangan sundin ang
social distancing na pinapatupad
para hindi magkahawaan ng virus.
Magiging limited ang tao and time
dahil sa curfew.
 Article 1268. When the debt of a thing
certain and determinate proceeds from a
criminal offense, the debtor shall not be
exempted from the payment of its price,
whatever may be the cause for the loss,
unless the thing having been offered by
him to the person who should receive it,
the latter refused without justification to
accept it.
 Example: May snatcher at ninakaw
niya yung cellphone ni A na worth
10,000. Habang nasa possession ng
snatcher yung cellphone ay bigla
itong nasira dahil habang
tumatakas siya sa mga pulis,
biglang nahulog yung phone.
Magiging liable yung snatcher sa
damages.
 Example: Kapag kunyari nasa
presinto na yung snatcher tas
biglang tinamaan ng kidlat yung
phone. Kapag ganun, liable pa rin
ang snatcher kasi ninakaw niya
yung phone in the first place. Kung
hindi naman ninakaw ng snatcher
 yung phone, hindi naman
mangyayari yung event na yun.
 Example: Binalik na ng snatcher
yung phone at nakulong na siya.
Ayaw tanggapin ng biktima tapos
biglang tinamaan ng kidlat yung
phone. Pag ganto, hindi justified
ang pagrefuse niya at mawawala
ang liabilty ng magnanakaw kasi
binabalik niya na yung phone.
 Magkakaroon lang ng
justification ang
pagtatanggi kapag may
hinihinging kapalit yung
snatcher like ibabalik
daw phone pero sana
daw i-atras ang kaso.
Since desidido si A na
ipakulong yung
snatcher, hindi niya
kukunin yung phone.
 Article 1269. The obligation having been
extinguished by the loss of the thing, the
creditor shall have all the rights of action
which the debtor may have against third
persons by reason of the loss.
 Example: Bumili si A ng cellphone
kay B. Nasira ni X yung phone na
ibibigay dapat kay A. Pag
nakabayad na si A, pwedeng si A
na ang maghabol kay X.
(3)Condonation or Remission of Debt
 It is known as the gratuitous
abandonment by the creditor of his right
to go after the debtor for the fulfillment of
the latter’s obligation to the former.
 Ito yung pagpapatawad.
 Walang kapalit
 hindi na hahabulin
Kinds of Condonation
 As to amount or extent:
 Total – When the entire obligation
is remitted;
 Lahat na ay patatawarin.
 Partial – When only a part of the
obligation or an accessory
obligation is remitted.
 Partial lang ang
patatawarin.
 Article 1270. Condonation or remission
is essentially gratuitous, and requires the
acceptance by the obligor. It may be made
expressly or impliedly.
 Hindi tayo required tumanggap ng
kabaitan o generosity ng ibang tao.
Kailangan may acceptance para
maging valid which can be made
expressly like mag-thank you ka or
impliedly wherein kinuha mo agad
yung bagay na binigay sayo.
One and the other kind shall be subject to
the rules which govern inofficious
donations. Express condonation shall,
furthermore, comply with the forms of
donation.
 Article 1271. The delivery of a private
document evidencing a credit, made
voluntarily by the creditor to the debtor,
implies the renunciation of the action
which the former had against the latter.
 Example: May utang si Debtor kay
Creditor at kailangan ni Creditor
ng extra assurance, nagpa-issue si
Creditor ng promissory note kay
Debtor. Kung hindi pa nagbabayad
si Debtor at binalik na ni Creditor
ang promissory note kay Debtor,
this implies na hindi ka na
interesadong maningil or
mangolekta ng utang.
 Hindi ito absolute presumption. It
is disputable presumption.
If in order to nullify this waiver it should
be claimed to be inofficious, the debtor
and his heirs may uphold it by proving
that the delivery of the document was
made in virtue of payment of the debt.
 Article 1272. Whenever the private  As to form:
document in which the debt appears is  Express – Expressly made by the
found in the possession of the debtor, it creditor either orally or in writing
shall be presumed that the creditor although the required formalities
delivered it voluntarily, unless the for donation must be observed:
contrary is proved.  When the condonation
 The presumption created is that si involves the
Creditor ang nagbigay kay Debtor immovable/real
unless iprove ni Creditor na property, the
ninakaw ito ni Debtor. condonation and the
 Article 1273. The renunciation of the acceptance must be in a
principal debt shall extinguish the public instrument.
accessory obligations; but the waiver of Acceptance can be made
the latter shall leave the former in force. in the deed of donation
(1190) itself or in a separate
 Example: Umutang si A kay B ng public document.
1,000,000 and para additional  When the condonation
assurance, humingi ng collateral na involves
bahay si B. Yung loan na 1,000,000 movable/personal
is the principal obligation while property:
yung bahay naman is the accessory  If the value of the
obligation. Kapag pinatawad na property EXCEEDS
yung principal debt na 1,000,000, P5,000, the
so yung Real Estate Mortgage na condonation and the
bahay ay mawawala na rin. Pero acceptance must be
kapag ang collateral lang ang in writing (public or
inextinguish, maiiwan pa rin ang private)
1,000,000 na loan.  If the value of the
 Article 1274. It is presumed that the property is P5,000
accessory obligation of pledge has been or less, the
remitted when the thing pledged, after its condonation and the
delivery to the creditor, is found in the acceptance may be
possession of the debtor, or of a third in any form. If the
person who owns the thing condonation is made
 Example: Umutang si A ng 5,000 sa orally, it would
pawn shop at iniwan niya ang require the
kanyang singsing para sa contract simultaneous
of pledge. It is presumed na yung delivery of the
accessory obligation ay nawala na document
kapag ang singsing ay bumalik na representing the
kay A. It does not necessarily mean debt and the
na bayad na si A sa utang niya, acceptance.
rather may tiwala na yung pawn
shop na magbabayad si A sa kanila.
  Implied – one where it can
be inferred from the
conduct of the parties.
(4)Confusion or Merger
 Confusion or merger is the meeting in one
person of the characters of the creditor
and debtor.
 Article 1275. The obligation is
extinguished from the time the characters
of creditor and debtor are merged in the
same person.
 Example: Nag-issue ng promissory
note si Debtor kay Creditor na
10,000. Si Creditor hindi na
makapaghintay kaya ninegotiate  Facultative
niya na yung note kay A habang si - Ito yung klase ng
A naman ay ginamit yung para compensation na can be
bayaran si B, then si B claimed by only one of the
pinangbayad niya kay Debtor yun. parties.
So bumalik sa kanya yung payment - Example: Si Debtor ay
niya. Nagmerge yung pagiging may utang na 100,000 kay
debtor at creditor niya. Creditor tapos si Creditor,
 Article 1276. Merger which takes place sinira niya yung kotse ni
in the person of the principal debtor or Debtor. Nagkataon na
creditor benefits the guarantors. 100,000 ang damage sa
Confusion which takes place in the person kotse ni Debtor.
of any of the latter does not extinguish the  Under the law, pag
obligation. siningil ni Creditor
 Article 1277. Confusion does not si Debtor ng
extinguish a joint obligation except as 100,000, pwedeng
regards the share corresponding to the sabihin ni Debtor
creditor or debtor in whom the two na hindi niya
characters concur. kailangan
(5)Compensation magbayad dahil
 Compensation shall take place when two may utang si
persons, in their own right are creditors Creditor dahil sa
and debtors of each other. pagsira niya ng
 Ito yung offsetting sa accounting kotse which is
wherein imbes na magbayaran valid.
sina A at B ng utang nila sa isa’t isa,  Kapag si Debtor
iooffset na lang nila yung utang ang naningil, hindi
nila. pwede isumbat ni
Creditor na may
utang din si Debtor
 sa kanya na
100,000.
 Article 1279. In order that compensation
may be proper, it is necessary:
o That each one of the obligors be
bound principally, and that he be
at the same time a principal
creditor of the other;
o That both debts consist in a sum of
money, or if the things due are
consumable, they be of the same
kind, and also of the same quality if
the latter has been stated;
o That the two debts be due;
o That they be liquidated and
demandable;
o That over neither of them there be
any retention or controversy,
commenced by third persons and
communicated in due time to the
debtor.
 Article 1286. Compensation takes place
by operation of law, even though the
debts may be payable at different places,
but there shall be an indemnity for
expenses of exchange or transportation to
the place of payment.
 Article 1290. When all the requisites
mentioned in article 1279 are present,
compensation takes effect by operation of
law, and extinguishes both debts to the
concurrent amount, even though the
creditors and debtors are not aware of the
compensation.
 Article 1289. If a person should have
against him several debts which are
susceptible of compensation, the rules on
the application of payments shall apply to
the order of the compensation.
(6)Novation
 Novation is the modification or
extinguishment of an obligation by
another, either by changing the object of
the obligation or by substituting the
person of the debtor or subrogating a
third person in the rights of the creditor.
Novation has two functions, one is to
extinguish an existing obligation and the
other is to substitute a new one in its
place.
 dacion en pago or dation in
payment in which na kunyari
imbes na pera ang ipangbabayad
like 10,000 for example, yung
phone yung gagamiting payment.
 Article 1292. In order that an obligation
may be extinguished by another which
substitute the same, it is imperative that it
be so declared in unequivocal terms, or
that the old and the new obligations be on
every point incompatible with each other.
 Article 1293. Novation which consists in
substituting a new debtor in the place of
the original one, may be made even
without the knowledge or against the will
of the latter, but not without the consent
of the creditor. Payment by the new
debtor gives him the rights mentioned in
articles 1236 and 1237.
 1236 and 1237
 The creditor is not bound to
accept payment or
performance by a third
person who has no interest
in the fulfillment of the
obligation, unless there is a
stipulation to the contrary.
 Whoever pays on behalf of
the debtor without the
knowledge or against the
will of the latter, cannot
compel the creditor to
subrogate him in his rights,
such as those arising from a
mortgage, guaranty, or
penalty.
 Article 1294. If the substitution is
without the knowledge or against the will
 of the debtor, the new debtor's insolvency
or non-fulfillment of the obligations shall
not give rise to any liability on the part of
the original debtor.
 Article 1295. The insolvency of the new
debtor, who has been proposed by the
original debtor and accepted by the
creditor, shall not revive the action of the
latter against the original obligor, except
when said insolvency was already
existing and of public knowledge, or
known to the debtor, when the delegated
his debt.



 Expromision – pinasok lang ni X sarili
niya sa story dahil sa sarili niyang
desisyon; and initiative ay
nanggagaling kay X
a. Pwede makuha ni X yung consent ni
Debtor.
b. Pwede din na walang consent yung
isa.
 Delegacion – kaya napasok si X sa
eksena dahil kay Debtor; the initiative
na maipasok si X was initiated by
Debtor
LAGI MAY CONSENT