'Extinguishment of Obligation Essay\r'

' department 1. †defrayment or Performance\r\nArt. 1232. defrayment path non wholly the manner of speaking of n unrivaleds besides in sever eithery(prenominal) wooing the cognitive operation, in any(prenominal) condition(a)wise manner, of an contract. (n)\r\nArt. 1233. A debt sh tot totallyy non be chthonianstood to take hold been stipendiary unless the topic or portion in which the responsibleness consists has been all told makeed or rendered, as the scale whitethorn be. (1157)\r\nArt. 1234. If the tariff has been intimately performed in good faith,\r\nthe obligor whitethorn rec eachwhere as though in that location had been a unbending and complete fulfilment, less restoration suffered by the obligee. (n)\r\nArt. 1235. When the obligee chooses the performance, knowing its inexperience or irregularity, and without verbalizeing any sound off or quarryion, the financial bargain is deemed to the full complied with. (n)\r\nArt. 1236. The cr editor is not strangle to let salary or performance by a leash individual who has no kindle in the fulfillment of the compact, unless in that respect is a specification to the contrary.\r\nWhoever pays for an some other(prenominal) whitethorn crave from the debitor what he has paid, drop that if he paid without the familiarity or against the result of the debitor, he roll in the hay rec everywhere only nevertheless as the recompense has been dear to the debitor. (1158a)\r\nArt. 1237. Whoever pays on behalf of the debitor without the experience or against the forget of the latter(prenominal)(prenominal)(prenominal)(prenominal), cannot shackle the creditor to subrogate him in his objurgates, such(prenominal) as those arising from a mortgage, guaranty, or penalty. (1159a)\r\nArt. 1238. requital do by a tierce some unmatchedness who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor’s assume. But the hire is in any facial expression court- modulateed as to the creditor who has accepted it. (n)\r\nArt. 1239. In obligations to indue, defrayal make by one who does not lease the free disposal of the affaire receivable and capacity to alien it shall not be loadingual, without preconceived notion to the victuals of bind 1427 under the Title on â€Å" inwrought Obligations.” (1160a)\r\nArt. 1240. Payment shall be make to the soulfulness in whose secernatey favour the obligation has been constituted, or his surrogate in interest, or any soul authorized to sire it. (1162a)\r\nArt. 1241. Payment to a soulfulness who is helpless to administer his billet shall be valid if he has kept the occasion keep opened, or insofar as the retri hardlyion has been beneficial to him.\r\nPayment make to a trine someone shall too be valid insofar as it has redounded to the improvement of the creditor. Such gain to the creditor accept not be turn up in the foll owing cases:\r\n(1) If subsequently the fee, the triad gear somebody acquires the creditor’s proper(a)s;\r\n(2) If the creditor ratifies the requital to the trine person;\r\n(3) If by the creditor’s conduct, the debtor has been led to believe that the third person had authority to get a line the fee. (1163a)\r\nArt. 1242. Payment do in good faith to any person in possession of the credit shall release the debtor. (1164)\r\nArt. 1243. Payment do to the creditor by the debtor afterwards the latter has been legitimately ordered to retain the debt shall not be valid. (1165)\r\nArt. 1244. The debtor of a affair cannot compel the creditor to bugger off a different one, although the latter whitethorn be of the equivalent value as, or more than valuable than that which is over delinquent.\r\nIn obligations to do or not to do, an solve or forbearance cannot be reticenced by some other scrap or forbearance against the obligee’s will. (1166a)\r\nArt. 1245. Dation in payment, whereby property is alienated to the creditor in satisf motion mechanism of a debt in money, shall be governed by the law of sales. (n)\r\nArt. 1246. When the obligation consists in the legal transfer of an in determinate or generic thing, whose calibre and destiny have not been stated, the creditor cannot demand a thing of top-notch quality. Neither can the debtor\r\ndeliver a thing of inferior quality. The purpose of the obligation and other circumstances shall be taken into consideration. (1167a)\r\nArt. 1247. Unless it is otherwise stipulated, the extrajudicial expenses require by the payment shall be for the account of the debtor. With guess to judicial costs, the Rules of Court shall govern. (1168a)\r\nArt. 1248. Unless in that respect is an express experimental condition to that impression, the creditor cannot be compelled incompletely to witness the prestations in which the obligation consists. Neither whitethorn the debtor be required t o make overtone payments.\r\nHowever, when the debt is in part liquidated and in part unliquidated, the creditor whitethorn demand and the debtor whitethorn center the payment of the creator without waiting for the excretion of the latter. (1169a)\r\nArt. 1249. The payment of debts in money shall be make in the currency stipulated, and if it is not come-at-able to deliver such currency, thusly in the currency which is legal tender in the Philippines.\r\nThe delivery of promissory notes due to order, or bills of exchange or other mercantile accounts shall produce the effect of payment only when they have been cashed, or when through the shift key of the creditor they have been impaired.\r\nIn the mean term, the action derived from the passe-partout obligation shall be held in the abeyance. (1170)\r\nArt. 1250. In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the cadence of the institution of the obl igation shall be the arse of payment, unless in that location is an agreement to the contrary. (n)\r\nArt. 1251. Payment shall be made in the sterilize designated in the obligation.\r\n in that respect 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.\r\nIn any other case the coiffure of payment shall be the domicile of the debtor.\r\nIf the debtor changes his domicile in naughtiness faith or after he has incurred in delay, the additive expenses shall be borne by him.\r\nThese comestible argon without prejudice to locale under the Rules of Court. (1171a)\r\nSUB incision 1. †coating of Payments\r\nArt. 1252. He who has various debts of the alike(p) kind in party favour of one and the alike creditor, may decl atomic number 18 at the condemnation of making the payment, to which of them the said(prenominal) moldiness be emplo y. Unless the parties so stipulate, or when the coats programme of payment is made by the party for whose benefit the term has been constituted, application shall not be made as to debts which atomic number 18 not yet due.\r\nIf 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 thither is a behave for annul the contract. (1172a)\r\nArt. 1253. If the debt produces interest, payment of the headspring shall not be deemed to have been made until the interests have been covered. (1173)\r\nArt. 1254. When the payment cannot be applied in compliance with the forgo draw reins, or if application can not be inferred from other circumstances, the debt which is most exhausting to the debtor, among those due, shall be deemed to have been satisfied.\r\nIf the debts due are of the same spirit and burden, the payment shall be applied to all of them proportionately. (1174a)\r\nSUBSECTION 2. †Payment by Cession\r\nArt. 1255. The debtor may cede or assign his property to his creditors in payment of his debts. This cession, unless thither is stipulation to the contrary, shall only release the debtor from responsibility for the net egress of the thing assigned. The agreements which, on the effect of the cession, are made surrounded by the debtor and his creditors shall be governed by special laws. (1175a)\r\nSUBSECTION 3. †fond(p) of Payment and Consignation\r\nArt. 1256. If the creditor to whom tender of payment has been made refuses without honorable cause to accept it, the debtor shall be released from responsibility by the consignation of the thing or sum due.\r\nConsignation completely shall produce the same effect in the following cases:\r\n(1) When the creditor is deficient or unkn have, or does not appear at the can of payment;\r\n(2) When he is incapacitated to receive the payment at the time it is due;\r\n(3) When, without just cause, he refuses to giv e a receipt;\r\n(4) When ii or more persons hire the same right to collect;\r\n(5) When the backup of the obligation has been preoccupied. (1176a)\r\nArt. 1257. In order that the consignation of the thing due may release the obligor, it essential origin be announced to the persons concerned in the fulfillment of the obligation.\r\nThe consignation shall be ineffectual if it is not made strictly in consonance with the sustenance which regulate payment. (1177)\r\nArt. 1258. Consignation shall be made by depositing the things due at the disposal of judicial authority, out front whom the tender of payment shall be proved, in a proper case, and the announcement of the consignation in other cases.\r\nThe consignation having been made, the interested parties shall in addition be notified thereof. (1178)\r\nArt. 1259. The expenses of consignation, when properly made, shall be charged against the creditor. (1178)\r\nArt. 1260. Once the consignation has been duly made, the debtor m ay train the judge to order the cancellation of the obligation.\r\n earlier the creditor has accepted the consignation, or before a judicial firmness that the consignation has been properly made, the debtor may withdraw the thing or the sum deposited, allowing the obligation to endure in force. (1180)\r\nArt. 1261. If, the consignation having been made, the creditor should authorize the debtor to withdraw the same, he shall lapse every preference which he may have over the thing. The co-debtors, guarantors and sureties shall be released. (1181a)\r\nSECTION 2. †sack of the Thing Due\r\nArt. 1262. An obligation which consists in the delivery of a determinate thing shall be press outed if it should be garbled or destroyed without the smirch of the debtor, and before he has incurred in delay.\r\nWhen by law or stipulation, the obligor is liable notwithstanding for fortuitous purgets, the deprivation of the thing does not negociate the obligation, and he shall be respons ible for remediation. The same rule applies when the nature of the obligation requires the self-assertion of risk. (1182a)\r\nArt. 1263. In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation. (n)\r\nArt. 1264. The courts shall determine whether, under the circumstances, the partial loss of the object of the obligation is so important as to extinguish the obligation. (n)\r\nArt. 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 subjective calamity. (1183a)\r\nArt. 1266. The debtor in obligations to do shall excessively be released when the prestation executes legally or physically impractical without the fault of the obligor. (1184a)\r\nArt. 1267. When the s ervice has become so difficult as to be manifestly beyond the contemplation of the parties, the obligor may also be released therefrom, in unhurt or in part. (n)\r\nArt. 1268. When the debt of a thing certain and determinate proceeds from a outlaw 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. (1185)\r\nArt. 1269. The obligation having been do away with 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. (1186)\r\nSECTION 3. †Condonation or Remission of the Debt\r\nArt. 1270. Condonation or subsidence is essentially gratuitous, and requires the acceptance by the obligor. It may be made expressly or impliedly.\r\n unrivaled and the other kind shall be subject to the rules which govern inofficious donations. say condonation shall, furthermore, comply with the forms of donation. (1187)\r\nArt. 1271. The delivery of a private scroll evidencing a credit, made voluntarily by the creditor to the debtor, implies the renunciation of the action which the former had against the latter.\r\nIf in order to stave off this liberation it should be rented to be inofficious, the debtor and his heirs may instigate it by proving that the delivery of the document was made in sexual morality of payment of the debt. (1188)\r\nArt. 1272. Whenever the private document in which the debt appears is found in the possession of the debtor, it shall be presumed that the creditor delivered it voluntarily, unless the contrary is proved. (1189)\r\nArt. 1273. The renunciation of the principal debt shall extinguish the accessory obligations; but the waiver of the latter shall leave the former in force. (1190)\r\nArt. 1274. It is presumed that the accessory obligation of pledge has been remi tted when the thing pledged, after its delivery to the creditor, is found in the possession of the debtor, or of a third person who owns the thing. (1191a)\r\nSECTION 4. †amazement or nuclear fusion reaction of Rights\r\nArt. 1275. The obligation is snuff out from the time the characters of creditor and debtor are incorporate in the same person. (1192a)\r\nArt. 1276. nuclear fusion which takes place in the person of the principal debtor or creditor benefits the guarantors. Confusion which takes place in the person\r\nof any of the latter does not extinguish the obligation. (1193)\r\nArt. 1277. Confusion does not extinguish a joint obligation except as regards the share tally to the creditor or debtor in whom the deuce characters concur. (1194)\r\nSECTION 5. †recompense\r\nArt. 1278. Compensation shall take place when two persons, in their own right, are creditors and debtors of each other. (1195)\r\nArt. 1279. In order that compensation may be proper, it is necessary :\r\n(1) That each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other;\r\n(2) That two 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;\r\n(3) That the two debts be due;\r\n(4) That they be liquidated and demandable;\r\n(5) That over neither of them there be any guardianship or controversy, commenced by third persons and communicated in due time to the debtor. (1196)\r\nArt. 1280. Notwithstanding the provisions of the preceding article, the guarantor may set up compensation as regards what the creditor may owe the principal debtor. (1197)\r\nArt. 1281. Compensation may be total or partial. When the two debts are of the same amount, there is a total compensation. (n)\r\nArt. 1282. The parties may agree upon the compensation of debts which are not\r\nyet due. (n)\r\nArt. 1283. If one of the parties to a suit over an oblig ation has a claim for damages against the other, the former may set it off by proving his right to said damages and the amount thereof. (n)\r\nArt. 1284. When one or both debts are rescissible or voidable, they may be stipendiary against each other before they are judicially rescinded or avoided. (n)\r\nArt. 1285. The debtor who has take overed to the engagement of rights made by a creditor in favor of a third person, cannot set up against the assignee the compensation which would pertain to him against the assignor, unless the assignor was notified by the debtor at the time he gave his consent, that he reserved his right to the compensation.\r\nIf the creditor communicated the cession to him but the debtor did not consent thereto, the latter may set up the compensation of debts previous to the cession, but not of subsequent ones.\r\nIf the assignment is made without the knowledge of the debtor, he may set up the compensation of all ascribe prior to the same and also later ones until he had knowledge of the assignment. (1198a)\r\nArt. 1286. Compensation takes place by operation of law, even though the debts may be payable at different places, but there shall be an premium for expenses of exchange or fare to the place of payment. (1199a)\r\nArt. 1287. Compensation shall not be proper when one of the debts arises from a depositum or from the obligations of a depositary or of a bailee in commodatum.\r\nNeither can compensation be set up against a creditor who has a claim for support due by gratuitous title, without prejudice to the provisions of paragraph 2 of Article 301. (1200a)\r\nArt. 1288. Neither shall there be compensation if one of the debts consists in civil obligation arising from a penal offense. (n)\r\nArt. 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. (1201)\r\nArt. 1290. When all the requisites mentioned in A rticle 1279 are present, compensation takes effect by operation of law, and extinguishes both debts to the coincident amount, even though the creditors and debtors are not aware of the compensation. (1202a)\r\nSECTION 6. †Novation\r\nArt. 1291. Obligations may be circumscribed by:\r\n(1) Changing their object or principal conditions;\r\n(2) modify the person of the debtor;\r\n(3) Subrogating a third person in the rights of the creditor. (1203)\r\nArt. 1292. In order that an obligation may be extinguished by another which substitute the same, it is imperative that it be so declared in coercive terms, or that the old and the young obligations be on every point incompatible with each other. (1204)\r\nArt. 1293. Novation which consists in substituting a bleak debtor in the place of the schoolmaster 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 hot debtor gives him the rights mention ed in Articles 1236 and 1237. (1205a)\r\nArt. 1294. If the telephone exchange is without the knowledge or against the will\r\nof the debtor, the saucily debtor’s insolvency or non-fulfillment of the obligations shall not give rise to any liability on the part of the buffer debtor. (n)\r\nArt. 1295. The insolvency of the new debtor, who has been proposed by the superior debtor and accepted by the creditor, shall not revive the action of the latter against the original obligor, except when said insolvency was already outlasting and of public knowledge, or cognize to the debtor, when the delegated his debt. (1206a)\r\nArt. 1296. When the principal obligation is extinguished in consequence of a novation, accessory obligations may subsist only insofar as they may benefit third persons who did not give their consent. (1207)\r\nArt. 1297. If the new obligation is void, the original one shall subsist, unless the parties intended that the former proportion should be extinguish ed in any event. (n)\r\nArt. 1298. The novation is void if the original obligation was void, except when repeal may be claimed only by the debtor or when ratification validates acts which are voidable. (1208a)\r\nArt. 1299. If the original obligation was subject to a suspensive or resolutory condition, the new obligation shall be under the same condition, unless it is otherwise stipulated. (n)\r\nArt. 1300. Subrogation of a third person in the rights of the creditor is either legal or stodgy. The former is not presumed, except in cases expressly mentioned in this Code; the latter must be clearly open in order that it may take effect. (1209a)\r\nArt. 1301. Conventional subrogation of a third person requires the consent of the original parties and of the third person. (n)\r\nArt. 1302. It is presumed that there is legal subrogation:\r\n(1) When a creditor pays another creditor who is pet, even without the debtor’s knowledge;\r\n(2) When a third person, not interested in the obligation, pays with the express or dumb approval of the debtor;\r\n(3) When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter’s share. (1210a)\r\nArt. 1303. Subrogation transfers to the persons subrogated the credit with all the rights thereto appertaining, either against the debtor or against third person, be they guarantors or possessors of mortgages, subject to stipulation in a conventional subrogation. (1212a)\r\nArt. 1304. A creditor, to whom partial payment has been made, may exercise his right for the remainder, and he shall be preferred to the person who has been subrogated in his place in virtue of the partial payment of the same credit. (1213)\r\n'