Part 7 Extinguishment of Obligation
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- Опубліковано 29 гру 2024
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Part 1 General Provisions - Law on Obligation and Contracts
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Part 2 Pure and Conditional Obligations
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Part 3 Obligations with a Period
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Part 4 Alternative Obligation
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Part 5 Joint and Solidary Obligation
• Part 5- Joint and Soli...
Part 6 Divisible and Indivisible, Obligation with a Penal Clause
• Part 6 Divisible and I...
Good day Atty!
I'm Jericho G. Bariring from 1 BSA - A in Pamantasan ng Cabuyao.
This is the summary of what I've learned in your video lecture of Extinguishment of Obligation.
Article 1231 - It talks about obligations are extinguished by payment or performance, by loss of the thing due, by the condonation or remission of the debt, by the confusion or merger of the rights of creditor and debtor, by compensation and by novation.
Article 1232 - talks about payment means not only the delivery of money but also the performance.
Article 1233 - discuss about the debt that shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered.
Article 1234 - If the obligation has been substantially performed in good faith, the obligor may
recover as though there had been a strict and complete fulfillment, less damages suffered by
the obligee.
Article 1235 - talks about the acceptance of the performance knowing its incompleteness or
irregularity, and without expressing any protest, the obligation is deemed fully complied with.
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.
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.
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.
Article 1239 - Payment made by one who does not have the free disposal of
the thing due and capacity to alienate it shall not be valid.
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.
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.
Article 1242 - It talks about the payment made in good faith to any person in possession of the credit shall release
the debtor.
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.
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.
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.
Article 1246 - Discuss that 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.
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.
Article 1248 - Unless there is an express stipulation to that effect, the creditor cannot be compelled
partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.
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.
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.
Article 1251 - Payment shall be made in the place designated in the obligation.
Thank you po Atty! God bless you po! :))
Rodas, Mary Joy B.
1BSA-B
Pamantasan ng Cabuyao
Thank you for the video lecture Atty!
Chapter 4: Extinguishment of Obligations
Article 1231: Obligations are extinguished because
1. By payment of performance
2. By the loss of the thing due
3. By the condonation or remission of the debt
4. Confusion or merger of the rights of the debtor and creditor
5. Compensation
6. Novation
Section 1: Payment of Performance
Article 1232: Payment means not only the delivery of money but also the performance. either by Ordinary Parlance which is the delivery of money or by Legal Mode which is delivery of money or giving a thing or doing an act or not.
Article 1233: A debt shall not be understood to have been paid unless the thing or service has been completely delivered or rendered.
CONCEPTS OF PAYMENT
1. Integrity of Prestation- full performance of the obligation
2. Identity of Prestation- must be delivered
Article 1234: the obligation has been substantially performed in good faith, obligor may recover it through a strict and complete fulfillment and less damages suffered by the obligee.
REQUISITES:
1.Substantial Performance- important part of the contract are already performed yet the minor are not.
2. Obligor must be in good faith
Article 1235: if the obligee accepts the performance knowing the incompleteness of it and there's no object it is considered that the obligation is deemed fully.
Article 1236: creditor is not bound to accept any payment thru a third person who has no interest in the obligation unless there is a stipulation to the contrary.
1. Debtor
2. Guarantor
3. 3rd person without interest but with stipulation he is capable
Article 1237: whoever pays on behalf of the debtor without the knowledge or against he will of the latter, cannot compel the creditor to subrogate him in his rights.
Article 1238: payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be donation, which requires the debtor's consent.
Article 1239:
SUBROGATION- gets all the right of the creditor
REIMBURSEMENT- entitled to refund to the extent without guarantees and securities
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
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
Article 1242: Payment made in good faith to any person in possession of the credit shall release the debtor. This article aims to protect the debtor to pay double to the 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.
Article 1244: Creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid.
Article 1245: Dation in payment or dacion en pago, property is alienated to the creditor in satisfaction of a debt in money, shall be governed by the law of sales.
SPECIAL FORM OF PAYMENT
1. Dacion en pago-
2. Application of payment
3. Payment by cession
4. Tender of Payment and Consignation
Article 1246: It is waived to creditor, once accepting inferior quality or by debtor delivering superior quality. Focus on the right value of amount delivered according to intention and payment.
Article 1247: does not apply to expenses incurred by the creditor in going to the debtor's domicile to collect. Extrajudicial expenses shall be account to debtor. Judicial Cost, an action to be paid by losing the partner/ party.
Article 1248: States that there should be a compete performance of prestation for the obligation to be extinguished. Wherein creditor can accept partial payment but cannot be compelled and the debtor is required to comply but not required to make partial fulfillment.
Article 1249: The payment of debts in money shall be made in the currency stipulated, and if its not possible to deliver such currency the the currency which is legal tender in the Philippines.
Legal Tender- cannot refuse to accept
- currency offered by the debtor in right amount the creditor must accept it.
PAYMENT BY MEANS OF INSTRUMENTS OF CREDITOR
Negotiable Instruments- these are the checks, promissory notes payable are not consider legal tenders so the creditor can refuse to accept them.
Article 1250: the basis of payment should be based on purchasing value at that time subject agreement to parties.
Article 1251: Payment shall be made in the place designated in the obligation.
Dacillo, Mia France
1BSA-A
Pamantasan ng Cabuyao
Thank you, Attorney. For making a video to fully understand the Extinguishment of Obligation is.
In article 1231 is that obligations are extinguished first is by payment or performance; second by the loss of the thing due; third is by the condonation or remission of the debt; By the confusion or merger of the rights of creditor and debtor; the fifth which is by compensation; and last is by novation.
In article 1232. Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.
The term "payment" does not only refer to the delivery of money. Under this section of the Civil Code, "payment" as a term of art in Obligation and Contracts also refers to the performance, in any other manner, of an obligation.
Therefore, in order to extinguish an obligation by payment, one may (1) delivery money or (2) perform, in any other manner, the obligation.
On the Article 1233 it was all about a debt may refer to an obligation to deliver money, to deliver a thing (other than money), to do an act or not to do an act. The thing delivered or service rendered must be exactly that which was the object of negotiation.
In article 1234. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
In 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.
This Article provides an express rule that an obligee is already estopped from demanding from the obligor further compliance if he accepts an incomplete or irregular compliance of the obligation, knowing fully well that such defect exists. The law deems the obligation fully complied with in this case.
In Article 1236 it says that whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter.
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.
If a third person pays in favor of the debtor with the latter's will, consent and knowledge, that third-person payor acquires all rights and actions that could have been exercised by the creditor. Such rights may arise from mortgage, guaranty, or penalty. In the Article 1238 it says that it embodies the idea that no one should be compelled to accept the generosity of another.
Article 1239, this article deals with obligation to give. The payor must have the free disposal of the thing paid, otherwise the payment is not valid.
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.
Article 1241 talks about the payment made to the powerless creditor who cannot administer his property did not benefit him or he has not kept the thing delivered, the debtor may be compelled by the creditor to pay a new when he regains capacity.
Article 1242. Payment made in good faith to any person in possession of the credit shall release the debtor.
Article 1243 is about the payment that is ordered to be retain the debt shall not be valid. The judicial order may have been prompted by an order of attachment, injunction, or garnishment.
In 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.
Article 1245 talks about the dation on payment. Dation in payment extinguished the obligation to the extent of the value of the thing delivered.
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.
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.
Article 1248 discusses that the debtor cannot make a partial payment or partial performance to the creditor unless there is an express agreement to that effect. The creditor therefore can refuse a partial payment or performance.
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 in the Philippines.
Article 1250 is when it comes if there is an inflation or deflation happens. Meaning it is not a universal trend which did not spare the country.
Article 1251 Payment shall be made in the place designated in the obligation. 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.
THANK YOU PO, ATTY.
ALINTANAHIN, JERICHO B.
PnC 1BSA-A ObliCon (A.Y. 2021)
Hello, Atty Narciso Reyes Jr.!
These are the things that i have learned from your discussion:
First, I have learned that the extinguishment of the obligation may arise in various reasons and it does not stop only on the part of the obligor. Second, I have learned that for us to extinguish the obligation, we should do such act which can end to it. Payment may serve as a primary key for its extinguishment and it can be perform in different ways.
Also, I have learned that neither inflation nor deflation can affect to the amount which is due because the original agreement should always be apply despite changes.
So that's it, thank you again Atty. I only gave the important summarization of the things that I have learned. Keep safe always, and may God bless you po!🤗❤
Francisco, Yvonne Lee R.
1 BSA - B
Here are things I’ve learned after watching this video:
• Article 1231 is about the causes of extinguishment of obligations.
• Article 1232 defines the meaning of payment.
• Article 1233 - the law compels the obligor to a complete performance and to deliver the very same thing that has been agreed upon.
• Article 1234 - allows substantial performance meaning there had been incomplete performance but the obligation was substantially performed.
• Article 1235 - The law compels the obligor to express his protest or objection in case that he accepts the performance knowing it is incomplete or knowing it is irregular.
• Article 1236 talks about persons from whom the creditor must accept payment and the effect of payment by a third person. Creditor may refuse payment by a third person.
• Article 1237 provides for a third person subrogation right.
• Under Article 1238 although the debtor may not accept the donation, payment as to him will be valid. Whether or not the debtor accepts the donation insofar as the creditor is concerned, the payment is valid.
• Article 1239 pertains to the meaning of “free disposal of thing due” and “capacity to alienate.”
• Article 1240 is about person to whom payment shall be made.
• Article 1241 applies to payments made by the debtor with the intention to extinguish his obligation.
• Article 1242 - This law is intended to protect the debtor from being required to double the payment to creditor.
• Article 1243 - When payment to creditor not valid.
• Article 1244 - The obligor is bound to perform the very prestation due and that must be complied with and that the obligee may not be compelled to receive something which has not been agreed upon.
• Article 1245 refers to special forms of payment and the meaning of dation in payment.
• Article 1246 pertains to the quality of the thing to be delivered. It states here that the creditor cannot compel the debtor to deliver superior quality while the debtor cannot compel the creditor to deliver an inferior quality. In other words, it is only the average quality.
• Article 1247 does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect.
• Article 1248 - The performance of obligation should be complete. It talks about when partial performance is allowed.
• Article 1249 provides for the kind of currency which is to be used in terms of payment. In case of default or the parties did not agree on the currency that it can only be paid in the legal tender in the Philippines which is the Philippine peso. But the parties may stipulate on a different currency depending upon the agreement of the parties.
• Article 1250 is about extraordinary inflation or deflation.
• Article 1251 talks about the place where obligation shall be paid.
Thank you for this lecture, Atty!
PACHECO, LIANNE CAMILLE A.
PAMANTASAN NG CABUYAO
1 - BSA - A
Good Day, Atty. Reyes! Here is the summary of my understanding.
Chapter 4: Extinguishment of Obligations (General Provisions)
The extinguishment of obligation means it is the end of the commitment or performance of an act to someone who has the right to demand the performance.
Art 1231
- Obligations are 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
The additional causes of Extinguishment
are because of a Fortuitous Event, Impossibility of Fulfilment (Physical Impossibility & Legal Impossibility (outlaw), Resolutory, Mutual Decision of the Party, Death of the party requiring personal services, and Compromise.
CHAPTER 4: EXTINGUISHMENT OF OBLIGATIONS
SECTION 1: PAYMENT OR PERFORMANCE
Art. 1232
This article explains the definition of payment in an ordinary situation as delivering money to a person, while in legal mode, it is not only the delivery of money to a person but also a way of giving a thing, doing an act, and not doing an act.
Art. 1233
This article talks about the different concepts of payment. The Integrity of Prestation means there must be full payment or performance of the obligation; the Identity of Prestation means that the agreed prestation must be delivered.
Art. 1234
This article allows a substantial performance which means that the insufficient performance is accepted but the essential part of the contract must be performed to allow it.
Art. 1235
This article explains that if the obligee is aware of the incompleteness of the performance of an obligation and accepts the performance of the obligor without any objection, it shall be deemed to be fully completed.
Art. 1236
This article explains that if the third person may demand reimbursement and subrogation of amount to the debtor who is truly bound to fulfill an obligation. If the third person paid the obligation of the debtor without his knowledge, the third person can only recover only if the payment has been beneficial to the debtor.
Art. 1237
This article talks about the rights of the third person to subrogation if the payment has been done with the consent of the debtor.
Art. 1238
It is considered a donation if the third person does not intend to reimburse the payment he has done on behalf of the debtor with his consent.
Art. 1239
This article explains that if the payment made by the debtor who does not have the free disposal of the thing due (the thing to be delivered must not subject to any claim of the third person) and capacity to alienate (a person is not incapacitated to enter into a contract) it shall not be valid.
Art. 1240
This article explains who shall receive the payment of the obligation by the debtor. It is the creditor/obligee, successor, and person authorized to receive it.
Art. 1241
The validity of the payment to a minor is conditional if he kept the thing delivered or if the payment has been beneficial to him. The validity of the payment to a third person is redounded to the benefit of the creditor.
Art. 1242
This article explains that if the debtor pays or completed his performance with good faith, the obligation must be extinguished by the creditor.
Art. 1243
This article explains that if the creditor is also the debtor of another creditor, then the debtor of the first creditor shall not be held liable for the payment of the obligation of its creditor.
Art. 1244
The obligation must be fulfilled following the agreement of the parties which means that the debtor shall only deliver a thing which they agreed upon.
Art. 1245
There is dation if there's an alienation of the property to satisfy the creditor's demand for the debt owed to him. A dation is a form of special payment of an obligation.
Art. 1246
This article explains that the creditor cannot demand a specific quality of a thing to the debtor if the obligation is to deliver a specific thing; the debtor cannot deliver an inferior thing. The thing to be delivered if it is a generic thing must be of average quality.
Art. 1247
This article explains that the debtor pays for extrajudicial expenses and that the losing party generally pays judicial costs. Judicial Costs are the statutory amounts allowed to a party to an action for his expenses incurred in the action.
Art. 1248
The partial payment is accepted if it is expressed in the stipulation, the debt is in part liquidated and unliquidated, and when the prestation of obligation has different terms of conditions.
Art. 1249
This article talks about the currency to be used in the payment of the debts in money. If the payment has been made in a legal tender, the creditor cannot refuse to accept the payment. Legal Tenders do not include checks and promissory notes payable for payment of an obligation.
Art. 1250
This article explains that inflation or deflation, in this case, must be extraordinary, meaning it is not a universal trend that did not spare the country.
Art. 1251
This article talks about the rules regarding the place for the payment of an obligation without prejudice to venue under the Rules of Court.
Thank you so much! Stay safe and God bless!
Dela Chica, Beniline D.
1BSA-B
Pamantasan ng Cabuyao
Good day, Atty! Here are my takeaways from this lecture video.
Chapter 4 is all about the extinguishment of obligations. In Article 1231, an obligation is extinguished or can be terminated by payment or performance, loss of the thing due, condonation or remission of the debt, confusion, compensation, and by novation. Annulment, rescission, fulfillment of a resolutory condition, and prescription are also causes of extinguishment of obligation.
Section 1: Payment or Performance
Article 1232 explains payment as a legal mode which is not only the delivery of money but also the giving of a thing, doing an act, or not doing an act.
Article 1233 describes the concepts of payment or debt is considered as paid if it has these two concepts, the integrity of prestation and the identity of the prestation. Integrity of prestation - the obligation must be performed completely or in full. Identity of prestation - the agreed and very prestation must be delivered.
Article 1234 If the obligation has been substantially performed in compliance with the stipulation or in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. However, there is an exception in 1233 found in 1234. When there is substantial performance, it means although incomplete is still acceptable to the creditor and will be considered fulfilled, only compensation for a breach of obligation must be paid.
Article 1235 is another exception to Article 1233 which is founded on the principle of estoppel. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is considered as fulfilled.
Article 1236 tackles about to whom can the creditor accept payment. The creditor is not bound to accept or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary. Effects of payment by a third person is also included in this article.
Article 1237 explains the rights of a third person to subrogation. Whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter. But, if it is against or unknown to the debtor, the third person cannot compel the creditor to subrogate him in the latter's accessory rights of mortgage, guaranty, and penalty. The difference between subrogation and reimbursement is also included in this article.
Article 1238 describes a donation in which it is considered as a payment made by a third person who does not intend to be reimbursed by the debtor. It depicts the idea that no one should be compelled to accept the generosity of another.
Article 1239 contains the free disposal of the thing due and the capacity to alienate. As a general rule, payment by one who does not have the free disposition of the thing due and the capacity to alienate is not considered as valid meaning the thing paid can be recovered.
Article 1240 describes persons to whom payment shall be made which are the creditor or the obligee, his successor, and any person authorized to receive it.
Article 1241 is the effects of payment to an incapacitated person and a third person. Payment to a person incapacitated to administer it is not valid unless the person kept the thing paid or delivered. Payment to a third person is not valid except insofar as it has redounded to the benefit of the creditor.
Article 1242 explains that a payment to a third person in possession of credit is considered as valid.
Article 1243 refers to the payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244 pertains to a real obligation to deliver a specific thing and a positive obligation in which the act to be performed or prohibited cannot be substituted against the obligee's will.
Article 1245 provides the special forms of payment and meaning of dation in payment (dacion en pago). 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.
Article 1246 refers to the rule of medium quality or the principle of equity. The general rule in this article is that if the obligation consists in the delivery of a specific thing, the very thing due must be delivered.
Article 1247 contains the payment of the debtor for extrajudicial expenses while the losing party generally pays judicial costs.
Article 1248 explains that as a general rule, in order that the payment may extinguish an obligation, the performance of obligation should be complete.
Article 1249 refers to the kind of currency to be used for payment or that the debts in money shall be made in the currency stipulated.
Article 1250 contains the basis of payment in case of extraordinary inflation or deflation.
Article 1251 gives us the idea that the payment shall be made in the place designated in the obligation which provides situations like if there is a stipulation, there is a stipulation and the thing to be delivered is specific, and if there is no stipulation and the thing to be delivered is generic.
Danica Leene Gabarda
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. Reyes! These are my takeaways in your discussion.
Extinguishment means that it is an end to an obligation. Extinguishment is manner or ways by which an obligation is terminated.
Article 1231 stated that obligation are extinguished by (1) payment or performance, (2) loss of the thing due, (3) condonation or emission of the debt, (4) confusion or merger of the rights of creditor and debtor, (5) compensation, (6) novation.
Additional cause of extinguishment of Obligations are fortuitous events, impossibility of fulfillment either legal or physical, mutual decision of the party, death of the party requiring personal service and compromise.
Article 1232 discusses the meaning of payment. Ordinary Parlance is the delivery of money while legal mode is delivery of money, giving a thing, doing an act, not doing an act.
Article 1233 discusses the concept of payment. Integrity of prestations refers to full performance of an obligation, if the thing delivered is not the thing or is incomplete under the stipulation, he can refuse to pay. Identity prestation, the object that is agreed by the agreement must be the same thing to be delivered.
Article 1234 is an exception of article 1233.It allows the debtor to perform a substantial performance in good faith, as a substitute to a strict and complete fulfillment of the obligation.
Article 1235, the law compels the obligor to express his objection incase that he accepts the performance knowing it is irregular. If there was irregularities in the part of the performance obligation, the obligee must interpost his objection, otheerwise if there was no objections and the obligee knowingly accepts irregular performance, then the law will presumed deemed completely complied with.
Article 1236 stated that the creditor is not bound to accept payment or perdormance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation on the contrary.
Article 1237 discusses a third party subrogation rights. It's stated that whoever pays on behalf of the debtor with consent is entitled to subrogation, but if there is no consent, the third person cannot compel.
Article 1238, if the payment made by a third person who does not intend to be reimbursed by the debtor is considered by law as donations. It requires acceptance of the debtor or consent of the debtor for it to be perfected. Although the debtor does not accept the donation, the payment is still valid.
Article 1239 stated that in obligation to give, payment made by one who does not have the free disposal of the thing due and the capacity to alienate it, shall not be valid.
Article 1240 discusses who are the persons whom the payment shall be made.
Article 1241 discusses the validity of payment to the person who is incapacitated to administer his property. This article applies to payments made by the debtor with the intention to extinguish his obligations.
Article 1242 stated that payment made in good faith to any person in possession of the credit shall release the debtor. This law is intended to protect the debtor from being required to double the payment to the creditor.
Article 1243 stated that payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244 discusses that the obligor is bound to perform the very prestation due and that must be complied with.
Article 1245 discusses the special forms of payment including the dation if payment.
Article 1246 pertains to the quality of the thing to be delivered.
Article 1247 stated that unless it is otherwise stipulated, the extra judicial expenses required by the payment shall be for the account of the debtor.
Article 1248 stated that there should be a complete performance of prestation for the obligation to be extinguished. This provision only contemplates one creditor and debtor.
Article 1249 provides for the kind of currency which is to be used for the payment, incase of default or the parties did not agree on the currency, it can only be paid by the legal tender of the Philippines which is the Philippine Peso.
Article 1250 talks about extraordinary inflation and deflation.
Article 1251 discusses the place where the obligation shall be paid.
Bumatay, Ma. Leah B.
1 BSA-A (Pamantasan ng Cabuyao)
Good day Atty. Reyes. Here are my key takeaways for the part 7 discussion of Obligations and Contracts.
Chapter 4 discusses the extinguishment of an obligation. Section 1 is about the payment or performance. In article 1232, the meaning of payment in ordinary parlance is the delivery of money. In legal mode, it has a wider meaning where it is the delivery of money and the giving, the doing of an act, or not doing of an act. Payment and performance in law are synonymous.
Article 1233. A debt is considered paid if the thing or service has been completely delivered or rendered. A decent way to confirm payment is the presentation of the receipt. There is an exemption in Article 1233 that is found in Article 1234. When there is a substantial performance and will be considered fulfilled, only compensation about the breach of obligor must be paid. The only reimbursement for breaches of obligor must be charged where there is a substantial performance that will be considered fulfilled. The 2 requisites of Article 1234 are substantial performance and obligor must be in good faith.
In application of Article 1235, the 2 requisites are: the obligee knows that the performance is incomplete or irregular, and he accepts the performance without expressing any protest or objection.
Article 1236 talks about the persons from whom they must accept payment: the debtor, any person who has an interest in the obligation like a guarantor, and a third person who has no interest in the obligation when there is a stipulation that he can make payment.
Article 1237. The 3rd party subrogation rights are: whoever pays on behalf of the debtors with consent is entitled to subrogation; if no consent, 3rd person cannot compel; and even if the creditor gives right, article 1237 focuses on the right of a debtor.
Article 1239. This article talks about obligations to give. Free disposal of the thing due means that the thing to be delivered is not subject to any claim of a 3rd person while the capacity to alienate means that the person is not incapacitated to enter into contracts.
Under Article 1240, the payment shall be made to the creditor/oblige, successor, or any person authorized to receive it. When it is authorized by creditor and law, the payment should be made to him when that person is subrogated, and payment in good faith to any person is valid although a person may not be authorized to receive the payment.
Article 1241 is known as an exemption to the rule found in Article 1240. “Payment to a 3rd person may still be valid as when the creditor is benefitted. The validity of the payment is co-extensive to the benefit the creditor receives. These benefits require evidence to establish to the extent it was enjoyed.”
Article 1242. It is discussed here that this law is intended to protect the debtor from being required to double the payment to the creditor.
Article 1245. It shows the 4 special forms of payment under the Civil Code: dation of payment/adjudication/dacion en pago (the conveyance of ownership of a thing as an accepted equivalent; application of payments (Art. 1253); payment by cession (Art. 1255); and tender of payment and consignation. (Art. 1256-1261)
Article 1249. “The legal tender is the currency in which is offered by the debtor in the right amount, the creditor must accept the payment of the debt in money.” Promissory notes, checks, bills of exchange, and other commercial documents are not legal tender, and the creditor has the right to refuse to accept it. And as an effect of its obligation, the payment using mercantile documents does not extinguish the obligation until they have been cashed or it is impaired by creditors.
Article 1250 gives the meaning of inflation and deflation. Inflation means the sudden increase of money or credit or both without a corresponding increase in the business transaction while deflation is the reduction in volume and circulation of the available money or credit that results in declining of the general price level.
Article 1251, it gives the rules regarding the place for the payment of obligation without prejudice to venue under the Rules of Court.
Thank you, Atty. Reyes. May God bless you.
Misa, Jannah Aliah
1BSA-A
Good day, Atty! Stated below are my learnings from this video.
Chapter 4 which is the extinguishment of obligations tackles about the manners or ways an obligation is extinguished.
According to Article 1231, an obligation can be terminated or extinguished by payment or performance, by the loss of the thing due, by the condonation or remission of debt, by the confusion or merger of the rights of creditor and debtor, by compensation, and by novation. It also includes the additional causes of extinguishment such as fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise.
Section 1: Payment or Performance
Article 1232 discusses about payment in its legal definition. It is not only the delivery of money but also giving a thing, doing or not doing an act.
Article 1233 speaks about the concepts of payment. The first one is Integrity of Prestation which is the full performance of the obligation. If the thing delivered is not the thing or incomplete under stipulation, he can refuse to pay. In Identity of Prestation, the very and agreed prestation must be delivered. Prestation of receipt is a decent confirmation of payment.
Article 1234. If the obligation has been performed in compliance with the stipulation or in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. But there is an exception in 1233 found in 1234. When there is a substantial performance, meaning although incomplete is still acceptable, and will considered fulfilled, only compensation about breach of obligation must be paid.
Article 1235. The obligation is deemed to be fully complied with if the obligee knows the incompleteness or irregularity of the performance, and accept the performance without expressing a protest or objection.
Article 1236. The creditor cannot accept payment from a third party who has no interest with the fulfillment of the obligation unless the parties agreed to do so. If the creditor accepts payment from a third person who has no interest, the third person may acquire a right to demand to the debtor as long as he is knowledgeable about the payment made. The persons from whom the creditor must accept payment are debtor, guarantor, and 3rd person, even without interest, but with stipulation that he is capable.
Article 1237 explains a third party's subrogation rights. Whoever pays on behalf of the debtor is entitle to subrogation if the payment is with the consent of the latter. If it is against or unknown to the debtor, the 3rd person cannot compel the creditor to subrogate him in the latter's accessory rights of mortgage, guaranty, and penalty.
Article 1238 speaks about the idea that no one should be compelled to accept generosity of another. It is considered a donation if the paying third person does not intend to be reimbursed which requires the debtor's consent to be valid.
Article 1239. As a general rule, in obligations to give, payment by one who does not have the free disposition of the thing due and capacity to alienate it is not valid. The thing paid can be recovered.
Article 1240 talks about the person whom payment shall be made. Payment shall be made to the creditor, his successor in interest like heir, or any person authorized to receive it. By means of any person authorized to receive it, it pertains to a person authorized by law to receive the payment such as guardian.
Article 1241 is the effects when a payment is done to a minor and a third person.
Article 1242 gives another instance when there is a valid payment to a third person.
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.
Article 1244 refers to a real obligation to deliver a specific thing and personal obligations. Substitution can be made only if the obligee consented it.
Article 1245 talks about dation in payment or the conveyance of ownership of a thing as an accepted equivalent of performance. There are 4 special forms of payment under the Civil Code which are dation in payment, application of payments, payments by cession, and tender of payment and consignation.
Article 1246 discusses the obligation of delivering a generic thing. The creditor cannot demand a superior or inferior quality if the quality and circumstances have not been stated.
Article 1247. The debtor shall pay extrajudicial expenses required by the payment.
Article 1248 contemplates obligation where there is only 1 creditor and only 1 debtor. There should be complete performance of the prestation in order that the payment may extinguish an obligation. The debtor has the duty to fulfill the whole obligation and he cannot be compelled by the creditor to make partial payment if he does not want to.
Article 1249 discusses that debts in money shall be paid in the currency stipulated.
Article 1250. The purchasing value of the currency at the time of the establishment of the obligation shall be the basis of the payment, in case of any extraordinary increase or decrease in the purchasing power of the currency which the parties did not foreseen.
Article 1251 gives the rules regarding the place for the payment of an obligation without prejudice to venue under the Rules of Court.
Malayo, Christine B.
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. After watching your video lecture here are my takeaways:
In Article 1231, obligations are 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.
Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code. (1156)
Article 1232 define payment was not only the delivery of money but also the performance, in any other manner, of an obligation.Article 1233 clearly stated that A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. (1157)
Article 1234 explained that If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. Article 1235 stated that 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. In 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. 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. (1158a)
Article 1237 explained that 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. (1159a)
In 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. Article 1239 stated that 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.”
In 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 received it. Article 1241 stated that 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. (1163a)
Article 1242 explained that payment made in good faith to any person in possession of the credit shall release the debtor. In 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. 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. In Article 1245, dation in payment, whereby propionerty is allinated to the creditor is satifaction of a debt in money, shall be governed by the law of sales. Payment is delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of obligation. Article 1246 stated that 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. In 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. (1168a)
Article 1248, Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments. Article 1249, 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. 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.Article 1251, payment shall be made in the place designated in the obligation. 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.
Thank you Atty.
Good day Atty! This is the summary of the learnings I have gather after this video lecture of Chapter 4 Extinguishment of Obligations.
Article 1231 states that obligations are extinguished by payment or performance, by the loss of the thing due, and by the condonation or remission of the debt.
Article 1232 talks about payment and performance, which refers to the fulfillment of the prestations to give.
Article 1233 discuss about the concept of payment, first is integrity of prestation refers to the full performance of an obligation. Second is the identity of prestation which refers to the payment that must be delivered.
Article 1234 is an exception to art. 1233, as it allows the debtor to perform a substancial performance in good faith, as a substitute for strict fulfillment of the obligation.
Article 1235 discusses about the acceptance of an obligation by the obligee even though the obligation is incomplete, as long as the creditor accepts the performance given by the debtor the obligation will be deemed completely complied with.
Article 1236 states that the creditor is not bound to accept by the third person who has no interest in the obligation. And the person from whom the creditor must accept the payment form the debtor and third person without interest but with stipulation he is capable of.
Article 1237 talks about the subrogation right of the third person. It states that if only the debtor has knowledge about the third party's payment to the creditor, then the latter is entitled to subrogation.
Article 1238 talks about the payment made by the third person who does not intend to be reimbursed by the obligor, that is considered as a donation.
Article 1239 refers to non validation of the payment by the one who does not have the free disposal of thbe thing due and capacity to alienate.
Article 1240 states that payment shall be made to he person in whose favor the obligation has been constituted
Only the creditor,successor and person authorized to receive have the right to receive the payment
Article 1241 discusses about payment of the debtor to a person who is incapacitated shall be valid if that person has kept the thing delivered as the payment jas been beneficial to him.
Article 1242 Payment made in good faith to any person in possession of the credit shall release the debtor.
Article 1243 discusses about considering an invalid payment when debtor has been judicially ordered by the court to retain the debt but he has paid to a creditor which is a bad faith.
Article 1244 discusses on how obligor should perform the very obligation that was stipulated if it is a real obligation or not.
Article 1245 talks about the delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation.
Article 1246 refers to obligations to deliver an indeterminate or generic thing which quality and circumstances has not been stated and therefore,must be taken into consideration to determine the quality of the thing to be delivered.
Article 1247 States that unless it is otherwise stipulated the extra judicial expenses is required by the payment that shall be fo the account of the debtor.
Article 1248 states that there should be a complete performance of prestation for the obligation to be extinguished.
Article 1249 states that legal tender in the Philippines are all coins and notes issued by BSP. Addition the creditor can refuse to accept any payment by means of instruments of credits.
Article 1250 states thay in case of inflation or deflation, the basis of payment must be based on purchasing value at the time of the establishment of the obligation,unless there is a contrary agreement by parties.
Article 1251 states that obligation shall be paid in the stipulated place, in case of the delivery of determinate thing, the thing should be delivered on where the obligation was constituted.
Thank you Atty!
Anorico, Jhemina Gwyneth N.
1BSA-B
Good Day Atty!
Here are my takeaways from this video:
I learned from this video starting from Article 1231 is that obligations are extinguished first is by payment or performance; second by the loss of the thing due; third is by the condonation or remission of the debt; By the confusion or merger of the rights of creditor and debtor; the fifth which is by compensation; and last is by novation. In the case of Article 1232 this says that if you're paying for something it is not about the delivery of money it is that the payment is the fulfillment of a prestation that is due, leading to the extiguishment of the obligation. On the Article 1233 it was all about a debt may refer to an obligation to deliver money, to deliver a thing (other than money), to do an act or not to do an act.The thing delivered or service rendered must be exactly that which was the object of negotiation.
In Article 1234, there is substantial compliance by the debtor when in good faith that he has attempted to perform the contract but through the reasonable neglict or oversight, he failed to make full and complete performance for which the other party may be indemnified. Next, is the Article 1235 that discusses about the acceptance of obligation whether it is incomplete or there is a irregularity and no one objects to it that means the obligation is already fulfilled.
In Article 1236 it says that whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter. Another article is the Article 1237, if the payment is without the knowledge or against on will of the debtor, the third person cannot compel the creditor to subrogate him in the former’s accessory rights of mortgage, guaranty, or penalty. In the Article 1238 it says that it embodies the idea that no one should be compelled to accept the generosity of another. Article 1239, this article deals with obligation to give. The payor must have the free disposal of the thing paid, otherwise the payment is not valid. On the Article 1140 the payment shall be made if a person is in favor of the obligation, the successor in interest and another is the person whose authorized to receive it.
Article 1141 talks about the payment made to the powerless creditor who cannot administer his property did not benefit him or he has not kept the thing delivered, the debtor may be compelled by the creditor to pay a new when he regains capacity.
Article 1142 deal with the good faith when it comes to payment and with that the possession of the credit shall release the debtor.
Article 1143 is about the payment that is ordered to be retain the debt shall not be valid. The judicial order may have been prompted by an order of attachment, injunction or garnishment. In article 1144 talks about the payment that should not be compel by the debtor to give an exchange of a thing even though it is the same as its value if the creditor does not agreed on it.
Article 1145 talks about the dation on payment. Dation in payment extinguished the obligation to the extent of the value of the thing delivered. For article 1146 it discusses the principle of equity in that it supplies justice in cases where there is lack of precise declaration in the obligation of the quality or kind of thing to be delivered. It is always hard to find one thing that is exactly similar to another. Article 1147 says that the debtor has to pay for the extrajudicial expenses incurred during the payment. It is the debtor who benefits primarily, since his obligation is extinguished.
Article 1148 discusses that the debtor cannot make a partial payment or partial performance to the creditor unless there is an express agreement to that effect. The creditor therefore can refuse a partial payment or performance
Article 1149 is about the delivery of promissory notes payable to order, or bills of exchange shall produce the effect of payment only when they have been paid in cash, or when though the fault of the creditor they have been impaired. Article 1150 is when it comes if there is an inflation or deflation happens. Meaning it is not a universal trend which did not spare the country. Article 1151 states that there should be a specific place when it comes to do the obligation even the payment or transactions. It can be on the place of the debtor or performance must be made at the place where the thing was situated at the time the obligation was created.
Thank you very much atty!
Velasco, Jeffrey F.
1BSA-A, Pamantasan ng Cabuyao
Good day Atty., I thank you for your video lecture. Below are my takeaways from this lesson.
General Provisions
Art.1231. Obligations are 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.
There also other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription.
Additional causes: fortuitous event, impossibility of fulfillment, resolutory, mutual decision of party, death of the party requiring personal service, compromise.
The first mode of extinguishment that is treated is Payment or Performance (Section 1, Art.1232-1251)
The term “Payment” used in this context is not only limited to the conventional understanding or the “ordinary parlance” that delivery of money. Article 1232 defined Payment not only as the delivery of money “but also the Performance, in any other manner, of an obligation.” The former and the latter definition form the legal parlance/mode which is delivery of money, or giving a thing, doing an act, not doing an act. Based on my observation between the definition of obligation and the definition of payment (legal mode), it can be seen that it is the extinguishment of obligation through fulfillment of prestations of real or personal obligations, or delivery of money, in whuch this prestations defines and are one of the causes that an obligation to subsist.
On the manner the how payment is performed, it is to be noted that it cannot be understood that a payment ended a debt unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. (Art. 1233). There are two concepts to be understood in Art.1233 which are: integrity of prestation concept which means that the performance or the thing to be delivered is complete; and “identity of payment” which states that a payment must have or delivered the agreed prestation, if not been observed, an obligee can refuse a payment. An exception of Art.1233 is Art.1234 which considers the “performance in good faith” of an obligor for in cases that he delivered incomplete payment but has delivered an essential part of the obligation and motive to deliver full payment. In case “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” (Art.1235). Another rule related to Art.1233 on how payment is made is Art.1248, “Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments. 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.
On who will make the payment, ideally the debtor is the one who will pay the obligation, however, there are situations when a debtor proposes to creditor a third person that will pay his debt. In such case, the creditor cannot be compelled to accept payment if that third person is someone who is not interested in the fulfillment of obligation, unless if there is stipulation (Art.1236). If ever the creditor accepts the payment of the third person that is not interested in fulfillment of the obligation, the payment deemed to be valid. But in respect to the debtor’s right, that third person may demand only from the debtor what he has paid, except that if he paid without the knowledge consent of the debtor, he can only receive reimbursement that is beneficial to the debtor (Art.1236) and cannot receive subrogation of creditor’s rights (Art.1237). On the other hand, if the third person who made the payment is an interested party, he can be reimbursed what he had paid and can compel creditor to subrogate rights. In case, a 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 (Art.1238). It is to be noted that according to Art.1239 “payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid.”
On who will receive the payment, Art.1240 states to the person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it. It could also be made validly to incapacitated person provided that he kept the thing that is delivered and is benefits him (Art.1241). Moreover, Art.1241 validates debtor’s payment to third persons if it benefited the creditor. Art.1241 applies if the debtor paid in good faith. Furthermore, Art.1242 protects debtor for double payment in case of honest mistake or due to creditor’s conduct by allowing Payment made in good faith to any person in possession of the credit shall release the debtor. But a payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid (Art.1243).
On what thing or prestation to be delivered, the concept of identity of payment (refer to note in Art.1233) is observed in Art.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. 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.” While according to Art.1246 “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.”
-Art. 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.
-Art. 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.
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 abeyance.
-Art.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.
On where the payment will be made, Art.1251 "Payment shall be made in the place designated in the obligation.
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.
If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him."
Ramos, Olivia Melissa P.
1 BSA - A
Pamantasan ng Cabuyao
Good day Atty!
Below are the summary of my understanding of Law of Obligations and Contracts: Chapter 4 (Extinguishment of Obligations), with the help of your video.
Article 1232
Payment includes not just the transfer of money but also the fulfillments of a duty in some other way. Payment refers to the giving of money or a thing (in obligation to give), the doing of a thing (in obligation to do), or to refusal to do anything (in obligations to refrain).
Article 1233
A debt is not considered paid until the item or service that forms the basis of the obligation has been delivered or made in it’s entirely, as the case may be.
Article 1234
If the duty has been substantially performed in good faith, the obligator could recover as though there had been a strict and full fulfilment, minus damages incurred by the obligee, it is from the civil code.
Article 1235
The duty is considered completely fulfilled when the obligee acknowledges the performance despite its incompleteness or irregularity and without complaint or opposition.
Article 1236
The general rules for payment by a third party are defined in Article 1236 of the Civil Code: A joint debtor or a surety may discharge an obligation if they have a financial interest in doing so.
Article 1237
No one may force a borrower to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty, if they pay on behalf of the debtor without the debtor’s consent or against his will.
Article 1238
A payment received by a third party who does not wish to be reimbursed by the debtor is considered a gift, and the debtor must agree. However, the payment is legitimate as far as the creditor who approved it is concerned.
Article 1239
Payment by someone who does not have the three disposition of the item due and the capacity to alienate is generally invalid in obligations to give.
Article 1240
Payment must be made to the person in whose favor the study was created, his successor in interest, or any other person allowed to receive it. Payment will be made to this individual.
Article 1241
Payment to a person who is unable to manage his own property is legitimate if he has kept the item delivered or if the payment is advantageous to him. Payments made to a third party are also valid if they have redounded to the creditor’s advantages.
Article 1242
The debtor is released if payment is made in good faith to any person in possession of the credit.
Article 1243
Payment made by the debtor to the creditor after the latter has been ordered by a court to keep the debt is void. An order of attachment, injunction, or garnishment may have caused the judicial order.
Article 1244
The debtor of an item cannot force the creditor to receive anything else, even though it is of equal or greater value. An act or forbearance cannot against the will the oblige in obligations to do or not to do.
Article 1245
The law on sales governs a dation of payment, in which property is alienated to creditor in fulfilment of a monetary debt. It is a type of payment in which the owner of property transfers to his creditor in exchange for payment of a debt in cash.
Article 1246
The creditor cannot claim a superior quality item where the duty is to supply an indeterminate or generic item whose quality and circumstances are unknown.
Article 1247
The extra-judicial expenses required by the payment shall be for the account of the debtor unless otherwise stipulated.
Article 1248
Prestation should be completely performed and not partially unless the stipulation says so. In some cases, debtor may pay latter without waiting for the liquidation of others.
Article 1249
It states that the payment should be in the currency agreed by the parties. If unachievable, then a currency legal tender in the Philippines will be allowed.
Article 1250
It explains that, in case of inflation or deflation of currency, the basis shall be the value of it at the time of the establishment of the obligation.
Article 1251
Payment shall be made in the place designated by the obligation. If debtor incurs delay, then he will bear the expenses.
With the help of your provided video, it helps me to understand the difficulty of some concepts in the Chapter 4: Extinguishment of Obligations. Thank you, Atty.
Kian John Ace Turico
1BSA-A
Pamantasan ng Cabuyao
Good Day, Atty.! Here are my key takeaways for part 7 of video lecture in Obligations and Contracts.
Extinguishment of obligation- way obligation is ended.
Article 1231 says that obligation may extinguish though the following.
1. By payment
2. By the loss of the thing due
3. By condonation or remission of debt
4. By confusion or merger of the rights or creditor and debtor
5. By compensation
6. By novation
Aside from this, obligation may extinguish through FIR, fortuitous event, Impossibility of fulfillment, and Resolutory. It may also occur through MDC or Mutual decision of party, Death of the party requiring personal services, and Compromise.
Extinguishment of Obligation: Section 1: Payment or Performance
Article 1232 speaks about the legal definition of PAYMENT. The legal definition of payment is consisting of the delivery of money, giving of a thing, doing or not doing of an act.
Article 1233 speaks about the concept of payment.
1. Integrity of Prestation- refers to full performance of obligation.
2. Identity of prestation- the very and agreed prestation must be delivered.
Article 1234 allows a substantial performance of the debtor as long as it is complied within good faith. It is an exception is the Article 1233. It has two requisites.
1. Substantial performance- the important part of contract must be performed, and it is the minor details that are not performed.
2. Obligor must be in good faith- there is absence of bad faith and performed with sincerity.
Article 1235 says that if the obligee accepts the performance with knowledge that the performance is incomplete or there is irregularity, then the obligation is assumed to be complete or fully performed. Unless the obligee protest or object to the performance. It has two requisites.
1. Obligee knows that irregularity or incomplete of performance.
2. Obligee accepted the performance without objection.
Article 1236 speaks about to whom the creditor may accept payment. It is said that the creditor may accept payment to the debtor, any person who has interest in obligation, and any third person who has no interest, but the stipulation says so. But, if the creditor accepts payment to the third person who has no interest in the obligation, the third person may acquire a right to demand to the debtor as long as the debtor have a knowledge about the payment of the third person. If the third person pay the creditor without the knowledge of the debtor then, he may only recover what is beneficial to the debtor. If payment is made with the knowledge of the debtor, then the third person will acquire a right to reimburse and will acquire the rights of a creditor.
Article 1237 speaks about Third Party Subrogation Rights
1. Whoever pays on behalf of the debtor with consent is entitled to subrogation
2. If no consent, then third person cannot compel.
Article 1238 If the payment made by a third person did not intended to be reimbursed by the debtor, then it is considered as donation. But the debtor should know about the donation as it requires the debtor’s consent.
Article 1239 obligations to give. Free disposal of the thing due means that the thing of the obligation should not be subject to any claim of third person. While the capacity to alienate means that the person is not incapacitated to enter to contracts. He should be in his right mind or not under the influence of drugs or alcohol. He should be in his legal age or has a right to enter a contract. This article tells us that for a payment to be valid, the payer should have the capacity as the creditor cannot be compelled to accept payment from a person who is incapacitated.
Article 1240 tells us about whom the debtor should make the payment. It is said that the payment should be made to 1) the creditor, 2) his successor, 3) a person authorizes to receive payment. “Any person authorizes to receive it” means that a person authorizes by a creditor and by law (guardian, executor, or administrator)
Article 1241: The first paragraph of this provision said that the payment made to the creditor who is incapacitated is still valid as along as it is beneficial to him. Meanwhile the second paragraph said that the payment of the third person should also be valid given that it should not need to be proved in the following cases.
1. If after payment, third person acquires rights of a creditor.
2. If creditor ratifies or give consent to the third person
3. If because of the creditor, the debtor believes that the third person has the authority to received payment.
Effects of payment to an incapacitated person
1. Payment is not valid unless that person has kept the thing paid or delivered or it was beneficial to him. Debtor can also pay the guardian or pay again incase of the absence of the benefit.
Article 1242 protects the debtor in doubling his payment to the 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."
Article 1244 says that the debtor should deliver the thing due and cannot compel the creditor to receive a substitute even it is more valuable than the thing due.
Article 1245 speaks about dation in payment, it is a special form of payment. The payment here is not money but property equivalent to the money. It happens when the property is alienated to the creditor for the satisfaction of the debt.
Article 1246 speaks about the delivery of indeterminate or generic thing. It is said that if the quality is not stated, the creditor cannot demand superior quality neither the debtor cannot give an inferior quality.
Article 1247 said that the expenses should be shouldered by the debtor unless otherwise stated by the stipulations.
Article 1248 said that the prestation should be completely performed and not partially unless the stipulations say so. But in case of the debt is in part of liquidated and in part unliquidated, the debtor may pay latter without waiting for the liquidation of the other.
Article 1249: The first paragraph states that the payment should be in the currency agreed by the parties. If not possible, then a currency legal tender in the Philippines will be allowed. Legal tender means that a currency a creditor cannot refuse to accept. Creditor may refuse to accept checks and notes.
Article 1250 says that in case of inflation or deflation, the value of currency at the time where the obligation is established should be the basis of the payment unless there is stipulation stated.
Article 1251 simply says that payment should be made in the place designated in the obligation. If debtor incurs delay, then he will bear the expenses.
Thank you so much, Atty.!
Melendrez, Ella Grace G.
1BSA-A
Below are the summary of my learnings:
Article 1231. Obligations are distinguished by payment or performance, loss of the thing due, condonation or remission of the debt, confusion, compensation and novation.
Article 1232. Ordinary parlance means delivery of money while in legal parlance payment means the delivery of money or giving a thing, doing an act or not doing an act.
Article 1233. There are two concepts of payment, integrity and identity of prestation. Integrity means full performance of the obligation. On the other hand, in identity, the agreed prestation must be the one to be delivered.
Article 1234. Allows the debtor to perform a substantial performance in good faith as a substitute for a strict and complete fulfillment of the obligation.
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.
Article 1236. In case a third person will pay the creditor and the creditor will accept the payment, the third person has the right to demand to the debtor what he has paid. If it is against the will of the debtor, there is only beneficial reimbursement.
Article 1237. In subrogation, the person who pays for the debtor is put into the shoes of the creditor. However, in reimbursement, the third person is entitled by reason of payment has merely the bare right to be refunded.
Article 1238. If the paying third person does not intend to be reimbursed, the payment is deemed a donation which requires the debtor’s consent to be considered as valid.
Article 1239. Free disposal of the thing due means that a thing to be delivered must not subject to any claim of third person while the capacity to alienate refers to when a person is not incapacitated to enter into contracts.
Article 1240. Persons to whom the payment shall be made: creditor/obligee, successor, authorized person.
Article 1241. The validity of the payment to a minor is conditional meaning it depends if the minor has kept the thing delivered or if the payment has been beneficial to him.
Article1242. Payment made in good faith to any person in possession of the credit shall release the debtor because the law is intended to protect the debtor from being required to double the payment to the 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.
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.
Article 1245. There is dation in payment when property is alienated to the creditor in satisfaction of his debt.
Article 1246. The creditor cannot demand a thing of superior quality. Neither can the debtor deliver a thing of inferior quality.
Article 1247. The extrajudicial expenses of payment are for the account of the debtor because the obligation is extinguished when payment is made. Thus, debtors are primary beneficial.
Article 1248. There should be a complete performance of prestation for the obligation to be extinguished.
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.
Article 1250. The basis of payment should be based on purchasing value at that time, subject to agreement by parties.
Article 1251. Obligation shall be paid on stipulated place and in delivery of determinate things the place is where obligation was constituted.
Thank you, Atty. for the video lecture.
Arlantico, Mary Rose C.
1 BSA- A
Pamantasan ng Cabuyao
Good day, Atty. Here are my takeaways from the video discussion.
Chapter 4: Extinguishments of Obligations, talks about the manners or ways which an obligation is extinguished and ended or terminated.
Article 1231, talks about the obligation being extinguished if the things loss, by novation, compensation, payment, condonation of debt and merger of the rights of creditor and debtor. As an additional obligation may also extinguished if it is impossible, the thigs is loss due to a fortuitous event, resolutory, compromise, if the decision is mutual in both parties, and if the obligor dies in a personal obligation.
Article 1232, talks about the meaning of payment which refers to the fulfillment of prestation, delivery of money and giving a specific thing.
Article 1233, talks about the concepts of payment. Integrity of prestation that talks about the full performance of the obligation which means that obligation must be completely performed. On the other hand, identity of prestation or identity of payment means that the agreed prestation must be delivered and the object that has been agreed upon by the parties should be the same object that will be delivered.
Article 1234, allows the debtor to a substantial performance as long as the performance must be complied in good faith. In addition, Art.1234 is an exception to the Article 1233 because in Art.1233 the law compels the debtor to a complete performance while in Article 1234 allows an incomplete performance of the debtor. It has two requisites: (1) substantial performance and (2) obligor must be in good faith.
Article 1235, talks about the obligee accepts and acknowledge an incomplete performance without expressing an objection, then the obligation is deemed completely or fully complied with. It has two requisites, (1) oblige knows about the incompleteness and irregularity of the performance and (2) oblige accept the performance of the obligor without expressing an objection.
Article 1236, talks about whom the creditor accept payment. Creditor may accept payment to the debtor, guarantor, and a third person who is not interested in the fulfillment of the obligation but if he is capable if there is an agreement or stipulation. If the payment by the third person is done, then he/she will have a right of reimbursement.
Article 1237, talks about the subrogation rights of the third person, who pays on behalf of the debtor and the third person cannot compel if there is no consent.
Article 1238, talks about the payment made by a third person who does not intend to be reimbursed by the obligor, then it is considered as a donation. Payment shall acknowledge as valid if the creditor accepted the payment.
Article 1239, talks about obligation to give, payment cannot be accepted and not valid if the person who has the capacity to alienate or no capacity to enter into a contract.
Article 1240, refers to the person whom payment shall be made. Payment shall be made to the creditor, successor, or any person authorized to receive it meaning a person who is authorized by law to receive the payment.
Article 1241, talks about the effect of payment is done by a minor or a person who is incapacitated for the payment.
Article 1242, talks about the protection of the debtor if there is a double payment.
Article 1243, talks about the payment of the debtor made to the creditor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244, talks about the fulfillment of the debtor to perform the prestation due and that must be complied with. If it has not been agreed upon, creditor cannot compel to receive something or a substitute even if it is more valuable than the thing due.
Article 1245, talks about a special form of payment which is the dation payment. It is governed by law of sales. The payment is not the money but the property, debtor will surrender or transfer the ownership of the property in favor of the creditor.
Article 1246, talks about the quality of the thing to be delivered. Creditor cannot compel or demand for a superior quality to the debtor, on the other hand, debtor cannot compel for an inferior quality to the creditor.
Article 1247, states that obligor must pay for extrajudicial payment unless if there is a stipulation.
Article 1248, states that obligation is extinguish if there should be a complete performance of the prestation. It only contemplates one debtor and one creditor. Creditor cannot compel if he accepted the partial performance of the debtor however, debtor is required to comply but if is not required to make a partial fulfillment if he doesn’t want.
Article 1249, talks about the debt of the money that should be on a currency agreed by the parties and that the payment shall be made. In case if the parties did not agree upon to what kind of currency to be use, then the currency can only be paid on the legal tender of the Philippines. A legal tender is a payment that the creditor may refuse to accept. Promissory note as a negotiable instrument that is not considered as legal tenders and creditor may refuse to accept it.
Article 1250, talks about the extraordinary inflation which is the rising of prices and deflation is the sudden drop of inflation. The value of the currency at the time of the establishment of the obligation, then it will be the basis of payment. If there is a sudden drop or inflate of a currency, payment will be made.
Article 1251, talks about the designated or the agreed place by the parties where the obligation shall be paid.
Thank you po for the video lecture, Atty. God Bless po.
Leann Rain E. Meriño
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. here is my summary of what I’ve learned from the video lecture.
Chapter 4: Extinguishment of Obligations (Pertains of the manners or ways by which obligations terminated or ended.
(Article 1231) An obligation can be extinguished by: payment of performance; loss of the thing due; condonation of the debt; confusion or merger of the rights of creditor and debtor; by compensation and by novation. It also tackles the additional causes of extinguishment such as a fortuitous event, impossibility of fulfillment (either physical and legal impossibility), resolutory, mutual decision of both parties, death of the party requiring personal services, and compromise.
SECTION 1: Payment or Performance
(Article 1232) Payments can be either delivery of the money and performance.
(Article 1233) Tackles about the concepts of payment. There are two (2) concepts of payment: Integrity of Prestation and Identity of Prestation. The first one talks about full performance and complete under the stipulation. The latter one, the very and agreed object or prestation by the parties must be delivered. Presentation of receipt is a decent confirmation of payment.
(Article 1234) If the obligation was substantially fulfilled in good faith, the obligor could be entitled to compensation as if it had been strictly and completely fulfilled, with fewer damages suffered by the obligee.The law presumes that every performance is done in good faith.
(Article 1235) If the obligee knows the incompleteness or irregularity of the performance and accepts the performance without expressing a protest or objection, the obligation is deemed to be fully complied with. Article 1235 will not be applied if the oblige is unaware of incompleteness or irregularity of the performance.
(Article 1236) The creditor is not bound to accept payment or performance from a third party who has no interest in the fulfillment of the obligation unless there is a stipulation. It also talks about from whom the creditor must accept the payment such as debtor, guarantor, and 3rd person who has no interest but with the stipulation he is capable.
(Article 1237) Tackles about third-party subrogation rights. Whoever pays on behalf of the debtor with consent is entitled to subrogation but if no consent, 3rd person cannot compel.
(Article 1238) No one is compelled to accept the generosity of another. If the person does not intend to be reimbursed, it is considered as a donation and requires debtor consent to be valid. And if the debtor accepts payment, it is considered valid.
(Article 1239) Based on the general rule, payments by one who cannot alienate or free disposal of the things due is not valid.
(Article 1240) It talks about whom the payment shall be made. According to this video, there are three (3): creditor or oblige; successor and person authorized to receive it such as the guardian.
(Article 1241) Talks about payments to a person who is incapacity such as minor.
(Article 1242) If the payment is made in good faith to any person in possession of the credit, the debtor is released.
(Article 1243) Payment made by the debtor to the Creditor after the latter has judicially order to retain the debt shall not be valid.
(Article 1244) As a general rule, the creditor shall be paid only what has been stipulated upon the contract. The contract shall be followed and valid.
(Article 1245) Talks about the dation in payment, where the property is alienated to the creditor. There is four (4) special form of payments such as dation in payments, application of payment, payment by cession and tender of payment and consignation.
(Article 1246) Pertains to the quality of the thing to be delivered.
(Article 1247) Unless it is otherwise stipulated, the debtor is responsible for any extrajudicial expenditures incurred as a result of the payment. In the case of judicial costs, the laws of the court will apply.
(Article 1248) The provision only contemplates one creditor and debtor. There should be a complete performance of the prestation for the obligation to be extinguished. The creditor can accept partial performance but cannot be compelled (voluntary on its part). The debtor is required to comply but not required to make partial fulfillment if he does not wish.
(Article 1249) The payments of debts in money shall be made in the currency stipulated.
(Article 1250) Talks about extraordinary inflation or deflation.
(Article 1251) Gives the rules regarding the place for the payment of Obligation without prejudice to venue under the Rules of Court.
Thank you, Atty.
Capillo, Aiberlyn C.
IBSA-A (PNC)
Good day atty! Here are the summary of what I learned from this video:
CHAPTER 4: EXTINGUISHMENT OF OBLIGATION (General Provisions)
Article 1231- Discussed that obligation extinguishes by payment/performance, loss of thing due, condonation or remission of the debt, confusion, or merger of the rights of creditor and debtor, compensation and by novation.
Article 1232- Payment and performance are synonymous. Payment/Performance (in legal mode of extinguishing an obligation) means that it does not only consist of giving money but also giving a thing, doing an act, or not doing an act.
Article 1233- Tells that debt is considered paid only if it is completely delivered or rendered. Also, debtor has the burden of proving the extinguishment by payment.
Article 1234- Tells that recovery is allowed when there is a substantial performance( essential part of the contract has been performed) made in good faith known as the "Doctrine of Substantial Performance". This article is applicable only if there is a substantial performance and if the debtor is in good faith.
Article 1235- Refers to another exception of allowed recovery, when incomplete or irregular performance is waiver. It means that the creditor still accepted the payment even if it is incomplete which also gives rise to the debtor's right to recover.
Article 1236- Creditor must only accept payment from the debtor, any person who has interest in the obligation and from the third person who has no interest in the obligation when there is stipulation that he can make payment. Also, the creditor can refuse payment from a third person when he dislikes the person, he has personal reasons for refusal, he does not have the intention to have any business with the third person, when the creditor doesn't trust the third person and when the third person is an enemy of the creditor.
Article 1237- Discussed that the third person has the right to subrogate only when there is a consent of the debtor for the payment he made. Even if the creditor is willing to subrogation, still the third person is not entitled of the right.
Article 1238- Donation is the term used for the payment of the third person who does not intend to be reimbursed. "No one should be compelled to accept the generosity of another" thus, the debtor may still refuse to accept the donation which remains his obligation to reimburse the third person.
Article 1239- Refers to non-validation of the payment by the one who does not have the free disposal of the thing due(means that the thing to be delivered is not subject to any claims or lien or encumbrance of a third person) and capacity to alienate (person is not incapacitated to enter contacts and to make disposition of the thing due).
Article 1240- Refers to the persons whom the payment shall be made (creditor, his successor and any person who is authorized to receive payment).
Article 1241- Discussed that the payment of debtor to an incapacitated person is not valid unless such person kept the thing paid/delivered or used it for his own benefit. Also, the benefit of the creditor by payment of the debtor to a wrong person/third person is not presumed and therefore, must be proved by the debtor.
Article 1242- Shows another instance when there is a valid payment to a third person, and it is when the debtor's payment is made in good faith to any person in possession of the credit.
Article 1243- Refers to non-validation of payment when the debtor-stranger has been judicially ordered to retain the debt. In addition, the pendency of payment of the debtor-stranger is subject to "garnished" (payment to creditor in main litigation).
Article 1244- Refers to real obligation to deliver a specific thing (where the debtor cannot compel the creditor to receive a different one, although the latter may be of the same value or more valuable) without the consent of the creditor. Same is applied to personal obligations (where the act to be performed or prohibited cannot be substitute) against the creditor's will.
Article 1245- Introduced the special forms of payment (Dation, Payment by cession and Tender of payment and consignation) but specifically discussed the definition of "Dation of payment". Dation of payment means, conveyance of ownership of a thing as an accepted equivalent of performance.
Article 1246- Refers to obligations to deliver an indeterminate or generic thing which quality and circumstance has not been stated and therefore, must be taken into considerations to determine the kind/quality of the thing to be delivered.
Article 1247- Unless otherwise stipulated, the extra judicial expense required by payment shall be paid by the debtor.
Article 1248- Payment of the obligation must be complete and the creditor cannot be compelled to accept incomplete payment/performance.
Article 1249- Refers to legal tender(the currency which is offered by the debtor in the right amount). Legal tender in the Philippines are all coins and notes issued by "Banko Sentral ng Pilipinas" (BSP). In addition, the creditor can refuse to accept any payment by means of instruments of credits.
Article 1250- Discussed the basis of payment in case of extra ordinary inflation or deflation.
Thank you Atty.
Salvador, Patrick Neilwen E.
1BSA-B
Good Day, Atty.!
These are my takeaways from this video lecture:
Extinguishment of Obligation
- it is an end to an obligation
- these are the manners or ways by which an obligation is being extinguished or is being ended or terminated
Art. 1231: Obligations are 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 the creditor
5) By compensation
6) By novation
Other causes of extinguishment such as annulment, rescission, fulfillment of a resolutory condition, and prescription, condition, and prescription are governed elsewhere in this Code.
Chapter 4: Extinguishment of Obligation
Section 1: Payment or Performance
Additional Causes of Extinguishment
1. Fortuitous event
2. Impossibility of fulfillment
Legal Impossibility
- The performance of the obligation is prohibited by law
- Ex: selling of illegal drugs or dangerous drugs
Physical Impossibility
- The undertaking or the obligation is physically impossible or is incapable of performance through human limitations
- Ex: a man to fly without the aid of technology or any other help from a tool
3. Resolutory
4. Mutual decision of the party
5. Death of the party requiring personal services
6. Compromise
Art. 1233
1. Integrity of Prestation
- Full performance of the obligation
- If the thing that has delivered is not a thing or incomplete under the stipulation, he can refuse to pay
2. Identity of the Payment
- Must be delivered
- The very and agreed prestation must be delivered
Presentation of receipt is a decent confirmation of payment. In this way, a debtor can request a receipt from the creditor once his obligation is paid.
Art. 1234
“If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, fewer damages suffered by the obligee.”
1. Substantial Performance
- essential or important part of a contract have been performed while minor are not yet
- doctrine of substantial performance
2. Obligor must be in good faith
- presume in the absence of proof of the contrary
If not performed completely but the seller acted in good faith, the buyer is compelled to pay but less those that are not yet delivered
Art. 1235
Requisites
1. Obligee knows the incompleteness or irregularity of the performance
2. Accept the performance without expressing a protest or objection
Payment
1. Regular Payments
- complying on what stipulation
2. Irregular Payments
- incomplete to what stipulation
Art. 1236
Person’s from whom the creditor must accept payment
1. Debtor
2. Guarantor
3. 3rd person without an interest, but with stipulation, he is capable
Art. 1237
Third-Party Subrogation Rights
1. Whoever pays on behalf of the debtor with consent is entitled to subrogation
2. If no consent, 3rd person cannot compel
3. Even if the creditor giver right Art. 1237 focus on the right of debtor
Art. 1238
- no one is compelled to accept generosity of another
- if the person does not intend to be reimbursed, it is considered as donation and requires debtor consent to be valid
- if the debtor accepts payment, it is valid
Art. 1239
- free disposal of the thing due - thing to be delivered must not subject to any claim of 3rd person
- capacity to alienate - a person is not incapacitated to enter into contracts
Subrogation
- gets all the right of the creditor, change of the creditor
Reimbursement
- entitled to refund to the extent without guarantees and securities
Art. 1240
Persons from whom the payment shall be made
1. Creditor/Obligee
2. Successor
3. Person authorized to receive it
Art. 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.”
Art. 1242
“Payment made in good faith to any person in possession of the credit shall release the debtor.”
Art. 1243
“Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.”
Art. 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.
An obligation to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s will.”
Art. 1245
A special form of Payment
1. Dation in Payment
2. Application of Payment
3. Payment by Cession
4. Tender of Payment and Consignation
Art. 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.”
Art. 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.”
Art. 1248
“Unless there is stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.
However, when the debt is in part liquidated and in part unliquidated, the creditor may demand and the debtor may affect the payment of the former without waiting for the liquidation of the latter.”
Partial Peroformance is allowed if
- expressed in stipulation
- debt is liquidated and unliquidated
- prestation of obligation have diff. terms of conditions which affect some of them, prestations cannot executed simultaneously but should be complete.
Art. 1249
“The payments 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.
The delivery of promissory notes payable to order, or bills of exchange or other mercantile.”
Legal Tender
- cannot refuse to accept
- currency offered by the debtor in right amount, creditor must accept it
- currency which may be used for payments of debts whether public or private, and which the creditor cannot refuse to accept.
Art. 1250
“In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishments of the obligation shall be the basis of payment, unless there is an agreement to the contrary.”
Art. 1251
“Payment shall be made in the place designated in the obligation.
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.
Melendrez, Jonalyn C.
1 BSA-B
Good day Atty! Here are some of my key takeaways from this video lecture:
Chapter 4 - Extinguishment of Obligation
∆Extinguisment of obligation means that it is an end to an obligation.
•Article 1231 simply mentioned the causes of extinguishment of obligations.
•Impossibility of Fulfillment
-Legal impossibility wherein the performance of the obligation is prohibited by law.
-Physical impossibility is the undertaking or obligation is incapable of performance through human limitations.
∆Section 1 - Payment or Performance
•Article 1232 states that payment doesn't only mean the delivery of money yet the performance of an obligation.
-Ordinary Parlance refers to the delivery of money.
-Payment is not only about delivery of money but also the giving of a thing, the doing of an act, or not doing of an act.
•Article 1233 pertains to when will be the debt considered as paid. In this article, a debt is understood to have been paid when the thing or service has been completely delivered or rendered.
-Concepts of Payment
•Integrity of Prestation - the obligation must be performed completely or in full.
-The creditor can refuse to accept the payment when what has been delivered is incomplete or not the thing stipulated.
•Identity of the Prestation - the agreed and very prestation must be delivered.
-Prestation of receipt is a decent confirmation of payment.
•Article 1234 allows the debtor to perform substantial performance in good faith.
•Substantial Performance is an incomplete performance but the obligation was substantial performed.
•In this article, the buyer is compelled to pay but less those that are not yet delivered when the obligation was not performed completely.
•Article 1235 talks about how the obligation is deemed to be fully complied with. When the obligee accepts the performance knowing its incompleteness and without expressing any object, the obligation is deemed completely. However, the creditor may reject the payment or if it is incomplete.
•Article 1236 pertains to whom the creditor must accept payment.
•Article 1237 provides a third person subrogation rights.
•Article 1238 refers to the payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation. It requires the debtor's consent and it will be considered valid if the creditor accepted it.
•Article 1239 states that payment made by one who does not have the free disposal of the thing due and capacity to alienate in obligations to give shall not be valid.
•Free disposal of the thing due means that the thing to be delivered must not subject to any claim of a third person.
•Capacity to alienate refers to the capability to enter into a contract.
•Article 1240 pertains to whom payment shall be made.
•Article 1241 explains the effect of payment to an incapacitated person and to a third person.
-Payment to a person incapacitated to manage his property is not valid unless the incapacitated person kept the thing paid or delivered or was benefited by the payment.
-Payment by a third person is valid if it has redounded to the benefit of the creditor.
•Article 1242 gives another case when there is valid payment to a third person. This article intends to protect the debtor from being required to double the payment to creditor.
•Article 1243 states that the payment by debtor-stranger shall not be valid if plaintiff wins the case and cannot collect from the debtor to whom the payment is made.
•Article 1244 refers to a real obligation to deliver a specific thing. Thus, a thing different from that due cannot be offered or demanded against the will of the debtor or creditor. It also pertains to personal obligations which cannot be substituted against the creditor's will. However, substitution can be made if the creditor consents.
•Article 1245 speaks about dation in payment.
•Dation in payment is a special form of payment since it is not an ordinary way of extinguishment of an obligation. It is a conveyance of ownership of a thing as an accepted equivalent.
•Article 1246 pertains to the quality of the thing to be delivered. It states here that debtor and creditor should focus on the right value of amount delivered according to intention and payment.
•Article 1247 states that the debtor shall bear the extrajudicial expenses required by the payment unless its is otherwise stipulated. However, this article does not apply to expenses incurred by the creditor in going to the debtor's residence to collect.
•Article 1248 explains that in order to extinguish the obligation, it is necessary that there is a complete performance of the prestation.
•Article 1249 pertains the kind of currency which is to be used in terms of payment.
•Article 1250 talks about the extraordinary inflation and deflation.
•Inflation is the rising of prices while deflation is the sudden drop of prices.
•Article 1251 states that payment shall be made in the place designated in the obligation.
Thank you for this video lecture, Atty!
Lagera, Rinalyn A.
PNC
1BSA-A
These are my learning from this video.
Chapter 4 Extinguishment of obligations
Article 1231- obligation are extinguish by performance, loss of thing due , condonation or remission of debt, confusion or merger of rights, compensation and novation. Here there are two kinds of impossibility fulfillment one is Physical and the other is legal impossibility.
Article 1232- Payment of performance. Ordinary parlance is the delivery of money while the legal mode is giving or doing a things.
Article 1233 - There are concept of payments here first is the integrity of prestation , it is the full performance of the obligation and second is identity of prestation it must be delivered the same object.
Article 1234- it allows the debtor or obligor to perform a substantial performance in good faith. Substantial performance is essential or important part of a contract that have been performed. Also it states here that obligor must be in good faith.
Article 1235- Law compels the obligor to express his protest.
Article 1236- Debtor will not have to settle exeption to this, if he paid without the knowledge or against the will of the debtor he can recover it only. They can reimburse only if the payment is beneficial to debtor.
Article 1237- Third party subrogation rights, it is whoever pays in behalf of the debtor with consent is entitled to subrogation . If there is no consent the 3rd person cannot compel
Article 1238- no one can be compelled to accept generosity of generosity of another, if the debtor accepts payment then it is valid. Moreover on
Article 1239- Subrogation is differ with reimbursement. Subrogation gets all the rights of the creditor change of creditor. While reimbursement entitled to refund to the extent without the guarantees and securities.
Article 1240-Payment shall be made to he person in whose favor the obligation has been constituted. Only the creditor, successor and person authorized to receive it have the right to receive the payment.
Article 1241- Payments made to a third party are also valid if they have redounded to the creditor’s advantages.
Article 1242- This la is intended to protect the debtor from being required to dole the payment to creditor.
Article 1243- It states here that, Payment made by the debtor to the creditor after the latter has been ordered by a court to keep the debt is void. An order of attachment, injunction, or garnishment may have caused the judicial order.
Article 1245- There is dation in payment when property is alienated to the creditor in satisfaction of his debt
Article 1246- Here there is no stipulation between parties regarding the delivery of a generic thing; then the debtor must deliver a thing that still satisfies the creditor.
Article 1247- JUdicial cost, losing party generally pays judicial cost
Article 1248- The creditor can accept the partial performance and should be complete performance of prestation.
Thanks po atty.
Candido, Hannah Mae P.
PNC- 1BSA-A
Good Day Atty!
This is the summary under Chapter 4: Extinguishment of Obligation
*Article 1231 states that obligations can extinguished by the ff: payment of performance, loss of the thing due, condonation or remission of debt, confusion or merger of the rights of creditor and debtor, compensation, and novation. This part also tackle the other causes and additional causes of extinguishment.
*Article 1232 states that payment can be the performance not only the money, which refers to the fulfillment to give.
*Article 1233 shows the concept of payments: (1) Integrity of prestation- obligation must be performed completely; (2) Identity of prestation- must be delivered.
*Article 1234 allows the debtor/obligor to perform a substantially performance in good faith as a substitute in strict and complete fulfillment of the obligation.
*Article 1235 states that law compels the obligor to express his protest or objection in case that he accepts the performance knowing it is incomplete or irregular.
*Article 1236 tackles that creditor is not bound to accept payment or performance by a third person who are not interested in the fulfillment of the obligation unless there is a contrary stipulation.
*Article 1237 provides for a third party subrogation rights.
*Article 1238 states that if the payment made by a third person is made without intention of reimbursement from the debtor then that payment is considered by law as a donation-- requires consent.
*Article 1239 talks about free disposal of the thing due- must not subject to any claim of 3rd person, and capacity to alienate- fitness to enter into a contract.
*Article 1240 talks about whom the payment shall be made and authorized by creditor and law.
*Article 1241 stated that if the incapacitated person has kept the thing delivered the payment will be valid.
*Article 1242 intended to protect the debtor from being required to double the payment to creditor.
*Article 1243 discuss that it shall not be valid if the payment made to the creditor by the debtor after the latter has been juridically ordered to retain the debt.
*Article 1244 means that obligor is bound to perform the very prestation due that must be complied with and that the creditor or obligee may not be compelled to receive something which has not been agreed upon.
*Article 1245 provides four (4) special form of payment: (1) Dation in payment; (2) application of payment; (3) payment of cession' (4) tender of payment and consignation.
*Article 1246 pertains to the quality of the thing to be delivered. Creditor cannot compel the debtor to deliver a superior quality while the debtor cannot compel the creditor to deliver an inferior quality-- only average quality.
*Article 1247 shows that the debtor will have to pay for expenses out of court which is required when collecting the debt. this article does not apply to expenses incurred by the creditor in going to the debtor's domicile to collect.
*Article 1248 states there should be performance of prestation for the obligation to be extinguished. It is also enumerate when the partial payment is allowed.
*Article 1249 provides for the kind of currency which is to be used in terms of payment in case of default or in case that the parties did not agree on the currency that it can only be paid in the legal tendered in the Philippines.
*Article 1250 dictates that the basis of payment should be based on purchasing value at that time, subject to agreement by parties.
*Article 1251 states that payment shall be made in place designated in the obligation.
Thank you and God Bless Atty!
Danica May J. Pajac
1BSA-A (PNC)
Good day Atty. ! After I watched your lecture here is my some ideas that learn from it.
So, the Chapter 4 entitled the extinguishment of obligation and it means that an end to obligation. These are ways by which an obligation will be ended or extuinguish.
The first Article that mention is Article 1231
Here are the first three additional causes of extinguishment of oblihation mentioned: Fortuitous event, Impossibility of fulfilment and Resulotory. When you say impossibility of fulfilment it can be either Legal impossibility or physical imposibility.
Legal impossibility simply mean prohibited by the government and commonly known as outlaw while physical impossibility is when obligation are impossible due to human limitations.
Next is the first mode of extinguishment of obligation which is Section 1: Payment or performance.
Article 1232 means that paymrent is not only the delivery of money but the performance of an obligation.
In Ordinary Parlance simple says that it is the delivery of money while in the legal mode is with the act of giving a thing, doing an act or not doing it.
Article 1233 means that when is the debt will be paid. It says that dept is already paid when the thing or service are completely delevered or received.
Concept of payment
Integrity of presentation means having a complete performance of obligation. If the agreement are incomplete or not the thing stimulated thus the creditor can refuse it.
Identity of payment means the agreement of two parties must be delivered.
Article 1234 means the debtor allows to perform a substantial in good faith.
Article 1235 when the oblee accept it without any complain despite it was incomplete then the agreement is done.
Article 1236 means that the creditor are not able to accpet the payment by a third person who doesn't have interest to fullfilment the payment, unless there is a stipulation to the contrary. It means that the third person ha sno gaurantee to replace it.
Article 1237 states that whoever pays behalf of the debtor without knowing or against the will of latter then he cannot compel the debtor to subrogates him on his rights.
Thank you Atty.
Serrano, kaela B
1BSA-A (PNC)
Good day, Atty! Here are my takeaways in this video
Article 1231- an obligation is extinguished due to the following reasons:
- payment or performance,
- loss of the thing due,
- condonation or remission of debt,
- confusion or merger of the rights of creditor and debtor,
- by compensation,
-by novation.
It also includes the additional causes of extinguishment of the obligation such as fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise.
Article 1232 talks about payment in its legal definition. Ordinary parlance which is the giving of money and legal mode which includes to give, to do, or not to do.
Article 1233 discusses the concepts of payment.
-Integrity of Prestation - full performance of the obligation. If the thing delivered is not the thing or incomplete under stipulation, he can refuse to pay.
-In Identity of Prestation - agreed prestation must be delivered.
Article 1234- If the obligation has been substantially performed in compliance with the stipulation or in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
Article 1235-The obligation is deemed to be fully complied if the obligee knows the irregularity of the performance, and without expressing a protest or objection. He accepts the performance.
Article 1236-The creditor cannot accept payment from a third party who has no interest with the fulfillment of the obligation unless the parties agreed to do so. if the debtor is aware that third person paid the creditor in his behalf, the third person may acquire a right to demand about the payment made.
Article 1237-discusses a third party's subrogation rights. if a third person pays on behalf of the debtor and the debtor is aware, the third person is entitled to subrogation. If it is against or unknown to the debtor, the 3rd person is only entitled for reimbursement of the payment that has been beneficial to the debtor and he cannot compel the creditor to subrogate him in the latter's accessory rights of mortgage, guaranty, and penalty.
Article 1238-speaks about the idea that no one should be compelled to accept generosity of another. It is considered a donation if the paying third person does not intend to be reimbursed which requires the debtor's consent to be valid.
Article 1239- General rule- in obligations to give, payment by one who does not have the free disposition of the thing due and capacity to alienate it is not valid.
Article 1240-states the person whom payment shall be made.
Payment shall be made to the following:
-creditor,
-his successor in interest
-any person authorized to receive it.
Article 1241-discusses what effects could happen when a payment is done to a minor and a third person.
Article 1242-discusses how does payment to a third person becomes valid.
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.
Article 1244- talks about real obligation to deliver a specific thing and personal obligations. Substitution is only possible if the obligee consented to it.
Article 1245- talks about dation in payment. This is where property is offered as a payment to the creditor
There are 4 special forms of payment under the Civil Code
-dation in payment
-application of payments
-payments by cession
-tender of payment and consignation.
Article 1246- obligation of delivering a generic thing. If the quality and circumstances is not stated, the creditor cannot demand a superior or inferior quality.
Article 1247 - debtor is the one who must pay extrajudicial expenses required by the payment.
Article 1250. The purchasing value of the currency at the time of the establishment of the obligation shall be the basis of the payment, in case of any extraordinary increase or decrease in the purchasing power of the currency which the parties did not foreseen.
Thank you Atty!
Manalo, Kristine Jeanette T.
1BSA-B PNC
Thank you for this video lecture Atty. Here are my take aways from this video.
Article 1231
Obligations are 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.
Article 1232
Payment may consist of not only in the delivery of money but also the giving of a thing (other than money), the doing of an act, or not doing of an act. When a debtor pays damages or penalty in lieu of the fulfillment of an obligation.
Article 1233
A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be.
A debt may refer to an obligation to deliver money, to deliver a thing (other than money), to do an act, or not to do an act. (supra.)
Article 1234
If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
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.
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.
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.
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
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.
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.’’
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.
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.
Article 1242
Payment made in good faith to any person in possession of the credit shall release the debtor.
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.
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
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.
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.
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.
Article 1248
Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments
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
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
Article 1251
Payment shall be made in the place designated in the obligation. 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
Cayabyab, Syra Ellaine B.
1 BSA -B
PNC
Good day atty! Here are some of my takeaways after watching the video lecture. First things first, thank you!
The video discusses the extinguishment of an obligation. Article 1231 gives us the summary of how an obligation is extinguished. And aside from the ones listed under the said provision, there are also a few additional causes of how an obligation is extinguished. Firstly is a Fortuitous event, next Impossibility of fulfillment, Resolutory, Mutual decision of the party, Death of a party requiring a personal service, and lastly, Compromise. FIRMDC for short.
Moving on, the following provisions further elaborate art. 1231. Section 1 of Chapter 4, for instance, discusses payment or performance. Now, art. 1232 tackles that payment doesn't only mean delivery of money, but could also mean, giving a thing, doing or not doing an act. Article 1233 on the other hand, when debt is being considered as paid. It involves integrity of prestation which full payment or complete delivery must be present, and then identity of prestation which means that the very prestation must be delivered. Art. 1234 is an exception to art. 1233. (I noted that the law assumes that every obligation is performed in good faith.) Meanwhile, Art. 1235 discusses when an obligation is considered as waived. Art. 1236 discusses that the creditor can only accept payment to the obligor and not to a third party who has no interest in the obligation. In other words, third party who pays in place of debtor can demand from him the amount he has paid. But if the debtor has/no knowledge about it, third person can only ask for reimbursement if the payment is beneficial to the debtor. Note that subrogation means that a third person acquires the rights of a creditor. Art. 1237 expounds a third party's subrogation rights. Art. 1238 states that a payment done by a third person is considered as donation if no reimbursement that's intended. If the debtor though did not gave his consent, the donation is still valid. Art. 1239 discusses the people who are authorized to give payment. Art. 1240 explains the people who has the right to receive payment. Art. 1241 elaborates when a payment is done to a minor and a third person. Art. 1242 protects the debtor from being required to pay the creditor in double. On the other hand, Art. 1243 states that a payment is not valid if done after the debtor has been judicially ordered to retain the debt. Art. 1244 simply explains that the debtor needs to do the very perstation.
(...continuation)
Article 1245 discusses the different special form of payment. Ome of them is Dation or dacion en pago, which is a special form of payment because it is property that's being transfered as a payment itself instead of money. It is the conveyance of ownership as an accepted equivalent or performance. Other example of a special form of payment are; application of payments, payment by cession, and tender of payment and consignation. Artiicle 1246 pertains to the quality of a generic thing to be delivered. It states that a debtor cannot demand of superior quality, neither a debtor can deliver an inferior quality. Moving forward, Article 1247 states that the debtor is to pay extrajudicial expenses required by the payment. Then, Article 1248's key points. One, it contemplates one debtor and one creditor. Next, there should be a complete performance of prestation for the obligation to be extinguished and, the creditor can accept the partial performance but cannot be compelled. Although partial performance is allowed if it is expressed in the stipulation. If the debtor is liquidated and unliquidated, and if some terms of the prestation could affect the performance of one. Article 1249 discusses that the payment of an obligation needs to be in accordance to the stipulated currency. If it is not possible, then it should be the currency which is legal tender in the Philippines, which is peso. Article 1250, simply explains that in case of inflation or deflation of the currency, the basis shall be the value of it at the time of the establishment of the obligation.
This is all, thank you so much once again atty. Stay safe and God bless!
Azada, Leonardo Daniel T.
1BSA-A
PNC
Good day Atty. Here is an explanation of what I have learned in this video lecture.
Article 1231.
- Obligation is extinguished by the following means, first by payment or performance, second by the loss of the thing due, third by the condonation or remission of the debt, fourth by the confusion or merger of the rights of the creditor and debtor, fifth by compensation and sixth is by novation. Aside from that, there are other additional causes of extinguishment that had been discussed in this article like the impossibility of fulfillment of the obligation.
Article 1232.
- Payment is not only about giving money but could also be about doing things depending on the prestation that needed to comply with an obligation.
Article 1233.
- This tells us about the concept of payment, first integrity of prestation that refers to the full performance of the obligation, second the identity of prestation and it means that the very and agreed prestation must be delivered.
Article 1234.
- This article allows the debtor or obligor to perform a substantial performance in good faith, as a substitute for a strict and complete fulfillment of the obligation.
Article 1235.
- This is about the acceptance of an obligation by the obligee even though the obligation is incomplete, as long as the creditor accepts the performance given by the debtor the obligation will be deemed completely complied with.
Article 1236.
- The creditor may not accept the payment of performance by a third person who has no interest in the fulfillment of the obligation unless there is a contrary stipulation.
Article 1237.
- Whoever pays on behalf of the debtor with consent is entitled to subrogation, if no consent, the 3rd person cannot compel.
Article 1238.
- It talks about the payment being a donation if the third person that paid the debt of the obligor does not want to be reimbursed.
Article 1239.
- This article tells that once a thing is consumable a person cannot recover the same because it has been consumed, it also tells that minor has no power to alienate a contract.
Article 1240.
- In this article persons from whom the payment shall be made were the creditor/obligee, successor, and the person he authorized to received it.
Article 1241.
- Payment to a person who is incapacitated to manage his property shall be valid as long as it is beneficial to him, or he has kept the thing delivered.
Article 1242
- This article is intended to protect the debtor from being required to double payment to the creditor.
Article 1243
- In this article payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244.
- The obligor of a thing cannot force the creditor to receive a different one, even though that thing has the same value as the thing that he needs to give to the creditor.
Article 1245.
- This talks about a special form of payment, specifically the dation in payment which is the conveyance of ownership of a thing as an accepted equivalent. The application of payment, payment by cession, and tender of payment and consignation were also belonged to this article.
Article 1246.
- This article pertains to the quality of a thing to be delivered.
Article 1247
- This article states that the extrajudicial expenses required by the payment shall be for the account of the debtor unless it is otherwise stipulated.
Article 1248
- Debtor is required to comply but not required to make partial fulfillment if he does not wish. Partial performance is allowed if expressed in the stipulation, debt is liquidated and unliquidated, and if prestation of obligation have different terms of conditions which affect some of them.
Article 1249
- This article provides for the kind of currency to be used in payment, in case of default or in case the parties do not agree to the currency, then the currency will be paid in the currency that is legal tender in the Philippines which is the Philippine Peso.
Article 1250
- This article talks about the extraordinary inflation or deflation of the currency, 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.
Article 1251
- Obligation shall be paid in the stipulated place, and in case of the delivery of the determinate thing, the thing should be delivered on where the obligation was constituted.
Zarate, Hannah Ryzl C.
1BSA-A
Pamantasan ng Cabuyao
Good day Atty! Here are the summary of what I've learned in this video
Article 1231 - This tackles about the obligations tha tare extinguished by payment or performance; By loss of the thing due; by condonation or remission of the debt; by compensation; by novation and by the confusion of the rights of creditor and debtor. If the thing was lost without the fault of the debtor then the obligation should be distinguished. If the skills of a person has been qualified to be taken as a consideration then the obligation can also be extinguished.
Article 1232 - Payment means not only the delivery of the money but also the delivery of performance in any other manner of an obligation. There are two stipulations for this article t he first one is the Ordinary Parlance where money is and option to be delivered and the next one is also delivering a money but there is another option that giving a thing, doing an act or not doing an act.
Article 1233 - a debt is considered paid when a thing or the service has been paid through payments or through actions. Showing a receipt is one of the best way to prove that you are paid and a confirmation.
Article 1234 - This article is somehow opposite to the first article that we have, the Article 1233. This one considers an action in good faith and willingness as a payment as an obligor, by this action and a substantial performance this can be considered fulfilled. And there are two stipulations in his article the first one is the obligor must be in good faith and the substantial performance.
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. There are two requisites in this article, the first one is the obligee knows the incompleteness or irregularity of performance and the second one is by accepting the performance without expressing a protest or objection. Payment can be in Regular Payment where you will be complying on what stipulation and the other one is the Irregular Payment is the opposite.
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 on the contrary. 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 insofar as the payment has been beneficial to the debtor. People from whom the creditor accept payments are the debtor, guarantor and the 3rd person without interest but with stipulations is capable.
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, guarant or penalty. If the 3rd party has no consent they cannot compel that is according to our subrogation rights.
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 consent. But the payment is in any case valid as to the creditor who has accepted it.
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". Subrogation gets all the right of the creditor; change of creditor while the Reimbursement is entitled to refund to the extent without guarantees and securities.
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. Persons from whom the payment shall be made; Creditor/Obligee , Successor and the person that is authorized to receive it.
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. 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: If after the payment, the third person acquires the creditor's rights; if the creditor ratifies the payment to the third person; 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. This law is intended to protect the debtor from being required to double the payment to 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.
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 that that which is due. 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. The General Rule is the Creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid.
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. But there is dation in payment when property is alienated to the creditor in satisfaction of his debt.
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.
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.
Article 1248 - Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments. 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 the 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.
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 cased, or when through the fault of the creditor they have been impaired. In the meantime, the action derived from the original obligation shall be help in 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 obligations shall be the basis of payment, unless there is an agreement to the contrary. Residence requires a bodily presence and actual presence while the Domicile requires bodily presence and intention to actual make it one's domicile and it is Legal.
Article 1251 - Payment shall be made in the place designated in the obligation. 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 contituted.
Pedrigosa, Patricia Jhoana R.
1BSA-B
Good day atty.
These are my takeaways form this video lecture:
Chapter 4 is all about extinguishment of obligations. When you say extinguishment of obligation, it is an end to an obligation.
Article 1231, obligations are extinguished by payment or performance, by the loss of the thing due, by the condonation or remission of the debt, by the confusion or merger of the rights of creditor and debtor, by compensation and by novation.
Additional causes of extinguishment:
°fortuitous event
°impossibility of fulfillment
°resolutory
°mutual decision of the party requiring personal services
°compromise
Article 1232
° Ordinary Parlance is the delivery of money
°Legal Parlance is delivery of money or giving a thing, doing an act or not doing an act
Article 1233 gives the concepts of payment
1. Integrity of Prestation- full performance of the obligation
2. Identity of Prestation- the very and agreed prestation must be delivered
Article 1234 allows the debtor or the to perform a substantial performance in good faith as a for a strict and complete fulfillment of the the obligation.
Article 1235 says that if there was no protest or objection and the obligee knowingly and intelligently accepts an incomplete performance, the the law will presume the obligation is deemed fully complied with.
Article 1236 talks about persons from whom the creditor must accept payment: (a) debtor (b) Guarantor (c) third person without interest but with stipulation he is capable.
Article 1237 tackles about the third party subrogation rights where whoever pays on behalf of the debtor with consent is entitled to subrogation but if no consent third person cannot compel.
Article 1238 says that if the payment by a third person who does not seeking for reimbursement by the debtor, it is called donation but it requires the debtor's consent.
Article 1239 defines free disposal and capacity to alienate. When you say free disposal of the thing due, the thing to be delivered must not subject to any claim of third person while capacity to alienate is a person who is not incapacitated to enter into contracts
Article 1240 talks about the persons from whom the payment shall be made which are the creditor or obligee, successor, or person who authorized to receive it.
Article 1241 gives the effects of payment to an incapacitated person. It said that this is valid unless the thing is kept or benefited by the payment. They can pay to the guardian and also absence of benefit can result on pay again.
Article 1242 where the law intends to protect the debtor from being required to double the payment to creditor.
Article 1243 says if the debtors payment made after the latter, it has been judicial ordered to retain the dept shall not be valid
Article 1244, the creditor or the obligee may not be compel to receive something which has not been agreed-upon.
Article 1245 talks about dation in payment, this is a special form of payment whereby property is alienated to the creditor in satisfaction of a debt.
Article 1246 pertains to the quality of the thing to be delivered. The creditor cannot compel the debtor to deliver in superior quality while the debtor cannot compel the to deliver an inferior quality.
Article 1247 says the debtor have to pay for the expenses out of court which is required when collecting the debt.
Article 1248, the partial performance is allowed if; expressed in stipulation, debt is liquidated and unliquidated, and the prestation of obligation have different terms of conditions.
Article 1249 provides the kinds of which is to be used in terms of in case if the parties did not agree on the currency that it can only be paid in the legal tender in the philippines or the philippine peso.
Article 1250 talks about the extraordinary inflation or deflation. It says that if the currency suddenly drops or inflates, then the value of the currency at the time of the establishment of the obligation and not at the time of payment.
Article 1251 states that obligation shall be paid on stipulated place and in delivery of determinate thing the place is where obligation was constituted.
Thank you atty. :)
Olaivar, Jayvee D.
1BSA-A
Pamantasan ng Cabuyao
CHAPTER 4: EXTINGUISHMENT OF OBLIGATIONS
Article 1231: Obligation are extinguished by payments of performance, loss of the thing due, condonation or remission of the debt , confusion or merger of the right of creditors and debtor, compensation , novation.
SECTION : PAYMENT OF PERFORMANCE
Article1232: Payment means not only the delivery of money but also the performance in any other manner of an obligation
Article 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered as the case may be.
Article 1234-In recovery allowed in case of substantial performance there had been incomplete performance but the obligation was substantially performed) only compensation about breach of obligor must be paid.
Article 1235-When the oblige accepts the performance, knowing its completeness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.
Article 1236-Discussed that the creditor is not bound to accept by the third person who has no interest in the obligation. And the persons from whom the creditor must accept the payment are from the debtor, guarantor and third person w/o interest but with stipulation he is capable.
Article 1237- The creditor cannot be compelled by the third party who will pay on behalf of the debtor without the consent or will of the latter.
Article 1238- Payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation.
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.
Article 1240-Payment shall be made to he person in whose favor the obligation has been constituted. Only the creditor, successor and person authorized to receive it have the right to receive the payment.
Article 1241- Payment to a person whos i 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.
Article 1242- Payment made in good faith to any person in possession of the credit shall release the debtor.
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.
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.
Article 1245-The four special forms of payment are dation in payment, application of payments, payment by cession and tender of payment and consignation.
Article 1246-If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Article 1247-Judicial costs are the expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation. In article 1247, the extrajudicial expenses required by the payment shall be for the account of the debtor unless otherwise stipulated.
Article 1248-Unless there is an express stipulation to that effect, the creditor cannot b compelled partially to receive the prestation in which the obligation consists. Partial performance are allowed only when there is an express stipulation that effect, when the debt is in part liquidated and in part unliquidated and when the different prestation in which the obligation consists are subject to different terms or conditions which affect some of them.
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 in the Philippines or simply the currency offered by the debtor in the right amount, the creditor must accept in payment of debt in money.
Article 1250- In case an extraordinary inflation of 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.
Article 1251- Payment shall be made in the place designated in the obligation
Aggabao, Princess Joy B.
1BSA-A
PNC
Good day Atty. Here are some of my take away after reading the book and watching your video lecture. Thank you for helping me understand it more. Chapter 4 talks about the extinguishment of an obligation where is serves as the end to the obligation and the manner by which the obligation is extinguished. Section 1 includes the payment or performance. Payment is synonymous to the performance where it is not only the delivery of the money but also the giving of a thing, doing of an act and not doing of an act (Art. 1232) The debt is considered paid only if the thing to be delivered or service to be rendered has been completely rendered/delivered. There are two concept of payment first is the integrity of prestation where there must be a full performance and delivery must be complete second is the identity of the prestation where the very thing and the agreed prestation must be delivered. (Art 1233) There is an exception to the article 1233 where the debtor is allowed to perform through substantial performance in good faith, Obligor is not liable for damages that may suffered by the obligee the reason is that performance is considered complete or regular. There are requisites in this provision first there must be a substantial performance where the important and essential part of the prestation is performed and only the small or minor part is carried out and second there must be good faith. (Art 1234) Obligation is deemed to be fully complied with if the creditor accepts the performance w/o expressing any objection to the incomplete performance of the debtor. (Art 1235) To whom the creditor must accept payment 1. Debtor 2. Guarantor 3. Third Person - in third person, there must be a stipulation whether it is allowed by both parties. If the payment is made with the knowledge of the debtor, the obligation to the first creditor is extinguished transferring all the rights of the latter to the person who pay and entitle to reimbursement and subrogation. If without the knowledge, only reimbursement, he can recover only the one who benefited the debtor. (Art 1236) Subrogation is made only to the consent of the debtor and it is change of the creditor transferring all the rights of the former creditor to the third person. Reimbursement is the refund to the extent w/o guarantees and securities. (Art 1237) The payment of third person without the intention of being reimburse is deemed to be a donation which requires the consent of the debtor. Even if without the knowledge of the debtor and the creditor accepts it it will extinguished the obligation. (Art 1238) Payment is not valid if the payment that is made is a person who do not have the free disposal of the thing due and the capacity to alienate therefore is recoverable. (Art 1239) Person to whom the payment shall be made 1. creditor 2. successor 3. any person authorize by the creditor or by the law. (Art 1240) General Rule: The debtor who paid by mistake shall prove that the payment was beneficial to the incapacitated person or it has redounded to the benefit of the creditor. The general rule has its exceptions if there is a subrogation, the creditor ratifies it and there is estopel on the part of the creditor. (Art 1241) The word "possessor" means the credit itself and not merely a document or consent. After the extinguishment, the right of the creditor will be against the one who received the payment made in good faith (Art 1242) If the payment of the debtor has been made even after the court orders not to pay or hold the debt in a meantime but still pays, that payment is not valid (Art 1243) The delivery of a specific thing, the very thing due must be delivered but the prestation may be substituted if there has been a consent by the creditor. (Art 1244) Dation in payment is a special payment in which it is the conveyance or transferring of ownership of a property instead of paying money. (Art 1245) In the delivery of an indeterminate thing the creditor cannot demand a thing of a superior quality neither the debtor can deliver a thing with an inferior quality (Art 1246) the general rule in this provisions is that he debtor will bear the extrajudicial expenses exceptions are those in terms of the expenses incurred by the creditor when going to the property of the debtor to collect. (Art 1247) If it is stipulated to make a whole obligation, them creditor may demand only the whole performance of the obligation and debtor may performed only the whole obligation at once. (Art 1248) The legal tender is the currency in which is offered by the debtor in the right amount, creditor must accept the payment of the debt in money. But the creditor ma refuse to accept is the debtor offer to pay in not legal tendency where it is a mercantile document only, those documents can be considered only as a legal tender when they are good as cash or has been encash (Art 1249) The value of the currency at the time of the establishment of the obligation shall be the basic when in case of inflation or deflation (Art 1250) And lastly According to article 1251 payment shall be made in the place designated in the obligation.
Ericka Jane G. Baal
1BSA-A
PnC
Good Day Atty. Here are the summary of my takeaways as I've watched your video, Part 7: Extinguishment of Obligation.
Under Chapter 4 which is the Extinguishment if Obligation it is stated in Article 1231 that obligation are extinguished by payment or performance, loss of the thing due, condonation or remission of the debt, confusion or merger of the right of creditor and debtor, compensation, and last is by Novation.
Section 1: Payment by Performance
In Article 1232, Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.
Article 1233 talks about the Conditions for payment in order to extinguish obligation. And also, when does debt considered as paid.
Article 1234. If the Obligation has been performed in compliance of good faith, the Obligor make recover as though had been a strict and complete fulfilment, less damages suffered by the Obligee.
Article 1235. The Obligation is completely complied with when the Obligee accept the performance, recognizing it's incompleteness and irregularities, and without protesting or objecting.
Article 1236. Unless the is a stipulation to the contrary, the creditor is not obliged to accept payment or performance from the third party who has no interest in the obligation 's fulfilment. Whoever pays for another will recover what he has paid but there is a conditions.
Article 1237. If they pay on behalf of the debtor without his consent or against his will, no one may force a creditor to subrogate him in his rights,such as those arising from a mortgage, guaranty, or penalty.
Article 1238. It talks about that no one should be forced to embrace other's generosity. It is considered as a donation if a payment made by a third party who does not wish to be reimbursed by the debtor. However, the payment is valid as far as the Creditor who has approved it is concerned.
Article 1239. In general, payments made by one who does not have free disposal of the things due or the capacity to alienate it are not valid.
Article 1240. It discuss about to whom the payment to be made. Payment must be made to the person in whose favor the duty was created, his successor in interest, or any person that is allowed to accept it.
Article 1241. Governs payments received by a debtor with the purpose of paying off his debts. And also the effect of payment to an incapacitated and third person.
Article 1242. If the payment is made in good faith to any person in possession of the credit, the debtor is released.
Article 1243. Payment made by the debtor to the Creditor after the latter has judicially required to keep the debt are not valid.
Article 1244. The Debtor of a thing cannot force the creditor to accept a different one, even though the latter is the same amount or has a greater value than original one. A substitution can be made if the Obligee consents
Article 1245. Provides that the law on sales shall apply since the law of sales governs a dation under payment, in which property is alienated to a creditor in payment of a debt in money.
Article 1246. Talks about a Debtor who is required to deliver a generic item which is cannot be forced to deliver a higher- quality item. A debtor cannot force the creditor to accept a substandard item.
Article 1247. The Debtor is responsible for any extrajudicial expenditures incurred as a result of the payment.
Article 1248. Unless there is an explicit stipulation, the borrower cannot be required to receive only part of the prestations of which the duty consists. The Debtor will not be forced to make partial payments.
Article 1249. Talks about the payment of debts in money must be made in the currency specified or legal tender in the Philippines if that currency cannot be delivered.
Article 1250. It discuss about the inflation or deflation must be exceptional, indicating that it is not universal trend that did not spare the world.
Article 1251. Gives the rules regarding the place for the payment of Obligation without prejudice to venue under the Rules of Court.
Thank you Atty. Reyes !
Vincent N. Abella 1BSA-B
Good day Atty., These are some takeaways I learned from your video
in Article 1231, it states that obligation are extinguished by payments of performance, loss of the thing due, condonation or remission of the debt , confusion or merger of the right of creditors and debtor, compensation , novation.
in Article 1232, it stress that payment means not only the delivery of money but also the performance in any other manner of an obligation.
in Article 1233, I learned that debt is considered paid only if it is completely delivered or rendered. Also, debtor has the burden of proving the extinguishment by payment.
in Article 1234, it states that the obligor can still recover payments from the obligee less damages even if the obligation to deliver is done substantially. Its important to take that only if its just the minor part of the obligation is not fulfilled and the obligor acted in good faith, then obligation will be extinguished.
in Article 1235, it states that the obligation is considered completely fulfilled when the creditor acknowledges the performance despite its incompleteness or irregularity and without complaint or opposition. If the defect of the performance is hidden in nature, meaning it is not obvious to the eye of the obligee, the article 1235 do not apply.
in Article 1236, it states that the persons from whom the creditor must accept paymen are the debtor, guarantor, and third person without interest but stipulated in the agreement.
in Article 1237, it states that no one may force a borrower to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty, if they pay on behalf of the debtor without the debtor’s consent or against his will.
in Article 1238, I learned that payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation.
in 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.
in Article 1240, it is about the persons from whom the payment shall be made which are the creditor/oblige, successor, and person authorized to receive it.
in Article 1241, it states that 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.
in Article 1242, the protection to the debtor from double payment.
in Article 1243, it states that payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
in Article 1244, it states that the general rule in this article is that the creditor shall be paid only what has been stipulated upon.
in Article 1245, it states that dation in payment is alienated to the creditor in satisfaction of a debt in money shall be governed by law of sales. Dation is considered as special form of payment. There is dation in payment when property is alienated to the creditor in satisfaction of his debt.
in Article 1246, it emphasize that there is no stipulation between parties regarding the delivery of a generic thing; then the debtor must deliver a thing that still satisfies the creditor.
in Article 1247, the Article does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect.
in Article 1248, states that there should be a complete performance of prestation for the obligation to be extinguished however, the creditor can accept partial payment or performance just as to what had been discussed by previous articles but the creditor cannot be compelled to accept such delivery or performance.
Miranda, Ranegel Anne R.
PNC
1BSA - B
My takeaways in this video lecture is the Chapter 4: Extinguishment of Obligations. This lecture is composed of General Provision (Article 1231) and Section 1 of Extinguishment of Obligations (Articles 1232 to 1251).
Article 1231 is about the causes of the extinguishment of the obligation which are by payment or performance, by the loss of the thing due, by the condonation or remission of the debt, by the confusion or merger of the rights of the creditor and debtor, by compensation and by novation. The additional causes of the extinguishment of the obligations are Fortuitous event, Impossibility of fulfillment, Resolutory, Mutual decision of the party, Death of the party requiring personal services, and Compromise.
Under Article 1232 talks about the meaning of payment (means not only the delivery of money but also the performance of an obligation). In Ordinary Parlance, payment means deliver of money, while in Legal Mode, it not only consists of giving money but also giving a thing, doing an act, or not doing an act.
Under Article 1233 is the concepts of payment: (1) Integrity of prestation - means the full performance of the obligation, if the thing delivered is not the thing or incomplete under stipulation, he can refuse to pay; and (2) Identity of the prestation - the prestation must be delivered.
Article 1234 is the first exception to the rule of the Article 1233. When there is substantial performance and will considered fulfilled, only compensation about breach of obligor must be paid. The requisites of the Article 1234 are (1) Substantial performance - essential or important part of contract have been performed while minor are not yet; and (2) Obligor must be in good faith - it is presumed in the absence of proof of contrary.
The Article 1235 is another exception to the rule of the Article 1233. The requisites for the application of this article are: (1) Obligee knows the incompleteness or irregularity of performance; and (2) Accept the performance without expressing a protest or objection.
Article 1236 talks about the persons from whom the creditor must accept payment which are the debtor, the guarantor, and the third person without interest but with stipulation he is capable. The creditor may choose from whom they want to accept the payment. The effects of payment made by a third person (1) if made without the knowledge or against the will of the debtor is that the payor can recover only insofar as the payment beneficial to the latter or the recover is only up to extent of debt at the time of payment; and (2) if made with the knowledge of the debtor, then the payer shall have rights of reimbursement and subrogation of amount that is not necessary to debt.
Under Article 1237 is the third-party subrogation rights. Whoever pays on behalf of the debtor with consent is entitled to subrogation. The third person cannot compel if there is no consent.
Article 1238 is about the payment of a person who does not intend to be reimbursed. No one is compelled to accept generosity of another. If the person does not intend to be reimbursed, it is considered as donation and requires debtor consent to be valid and if the debtor accepts the payment, then it is considered valid.
Under Article 1239 is about the free disposal of the thing due which means that the thing to be delivered must not be subject to any claim of third person or also means that the third person is not claiming any right or interest over the property. The capacity to alienate means that the person is not incapacitated to enter into contracts, or this means the fitness of a person to fit into a contract.
Article 1240 talks about the persons from whom the payment shall be made which are the creditor or the oblige, the successor and the person authorized to receive it. Not only a person authorized by the creditor, but also a person authorized by the law to receive the payment.
Article 1241 is the exception to the rule in Article 1240. The effects of payment to and incapacitated person: (1) it is valid unless the thing is kept or benefited by the payment, (2) pay to the guardian, and (3) absence of benefit can result on paying again.
Article 1242 is the law that intends to protect the debtor from being required to double the payment to the creditor.
Article 1243 talks about when the payment made to the creditor is not valid. The payment made by the debtor-stranger shall not be valid if the plaintiff wins the case and it is considered as bad faith.
Article 1244 means that the obligor is bound to perform the very prestation due and that must be complied with. The creditor may not be compelled to receive something which has not been agreed upon or is not in the stipulation.
Under Article 1245 are the special forms of payment: (1) Dation in payment - a conveyance of ownership of a thing as an accepted equivalent of performance; (2) Application of payment; (3) Payment by cession; and (4) Tender of payment and consignation. The law of sales governs because the dation in payment is considered a specie of sale where the amount of money debt becomes the price of the thing alienated. The dation in payment, is a payment wherein instead of the payment of money, the payment will be payment of property.
Article 1246 is about the focus on the right value of amount delivered according to intention and payment. It is waived to the creditor, once accepting inferior quality or by the debtor delivering superior quality.
Article 1247 talks about the debtor’s payment for the extrajudicial expenses. NOTE: This article does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect. Judicial cost is the expenses incurred in case the party is compelled to file case in court in order to enforce the obligation. The losing party will pay the judicial cost.
The Article 1248 contemplates on obligations where there is only one creditor and one debtor. For the obligation to be extinguished, there should be a complete performance of the prestation. The creditor can accept the partial performance but cannot be compelled, meaning it is voluntary on his part. Partial Performance is allowed when it is expressed in the stipulation, when the debt is liquidated and unliquidated, and when the prestation of obligation have different terms of conditions which affect some of them.
Under the Article 1249 is the Legal tender which means that the payment where the creditor cannot refuse to accept. If the currency offered by the debtor is in right amount, then the creditor must accept it. The coins shall be legal tender in amount not exceeding P1,000.00 for denominations of one peso and above. The amounts not exceeding P100.00 for denominations of twenty-five centavos or less.
Article 1250 is about the extraordinary inflation (sudden increase) or deflation (reduction in volume and circulation of the available money) of the currency stipulated. The basis of payment should be based on purchasing value at that time, subject to agreement by parties.
In Article 1251, the obligation shall be paid on the stipulated place and in the delivery of determinate thing and the place where the obligation was constituted.
Thank you for this lecture, Atty.
Agdefa, Cristine Bernadette Y.
1BSA-B
Good day, Atty.! Here are my takeaways in this lecture.
Payment or performance, loss of the thing due, condonation or remission of debt, confusion or merger of creditor and debtor rights, compensation and novation are discussed in Article 1231 which are the causes of extinguishment of an obligation. The next article defines the payment. Article 1233, requires the obligor to give a complete performance and to deliver exactly what was has been agreed. The proceeding article tackles the exception for article 1233. It permits the debtor to make a substantial performance in good faith. Article 1235, allows the obligee to protest or accepts the performance despite the fact that it is incomplete or irregular. Next, the creditor can only accept payment from a third party if there is a clause stating otherwise; otherwise, the creditor is not obligated to accept payment from a third party unless that person is a an interested person to the obligation, in which case the creditor can accept his payment. Article 1237 discusses third-party subrogation rights, stating that whoever pays on behalf of the debtor with consent is entitled to subrogation and that if the debtor does not consent, the third party cannot compel. If a payment made by a third party who does not expect to be reimbursed by the debtor is regarded as a donation under the law and was discussed in article 1238. It is stated on Article 1239 that payment made by someone who does not have free disposal of the thing due or the ability to alienate it will be invalid in an obligation to give. Furthermore, the persons to whom the payment shall be made are the creditor or obligee, successor or person with authority, according to Article 1140. In connection, according to Article 1241, a payment made by an anticipated person is only valid if he keeps the item delivered. Payments made by a third party are also valid if the creditor benefited from it. The following article protects the debtor from having to double the amount owed to the creditor. Invalid payment to creditor is under the proceeding article. Article 1245 defines another mode of payment, the dation. If the quality is not stated or agreed upon by both parties, Article 1246 states that the debtor must still satisfy the creditor by delivering a thing of minimum quality. Unless otherwise stated in the stipulations, the debtor is responsible for the expenses, according to Article 1247. Article 1249 states that there must be an agreement on the currency of payment and specifies what type of currency is required; if there is no agreement, payments can only be made in Philippine pesos, which are legal tender. Article 1250 states that the value of the currency at the time of agreement should not be changed even if there is inflation or deflation. Article 1251 specifies the location where obligations must be paid, stating that obligations must be paid only at the specified location or at a location agreed upon by both parties. Thank you.
Geminiano, Hanna Rian T.
1BSA-A
Good day Atty.! Below are my takeaways for this video lecture:
Art. 1231
Obligations are extinguished by: (1) payment or performance, (2) loss of the thing due, (3) the condonation or remission of the debt, (4) confusion or merger of the rights of creditor and debtor, (5) compensation, and (6) novation. There are also additional causes of extinguishment: fortuitous event, impossibility of fulfillment, resolutory conditions, mutual decision of the parties, death of party requiring personal services, and compromise.
Art. 1232
Ordinary Parlance means the delivery of money. In legal mode of parlance, it is the delivery of money, giving a thing or doing a performance.
Art.1233
It is about the concepts of payment. Integrity of Prestation is the full performance of the obligation. If the thing delivered is not the thing or incomplete, creditor can refuse to pay. While identity of the payment, the thing must be delivered, the very and agreed prestation must be delivered. Presentation of receipt is a decent confirmation of payment. In this way a debtor can request a receipt from the creditor once the obligation is paid.
Art. 1234
When there is substantial performance and debtor acted in good faith, the obligation will be considered fufilled, only compensation about breach of obligor must be paid.
Art. 1235
The obligation is considered fulfilled if the obligee accepts the performance, with the knowledge of its incompleteness and without any protest or objection.
Art. 1236
Creditor is not bound to accept payment or performance by a third person unless there is a stipulation to the contrary. Whoever pays for another may demand from the debtor what he has paid, except if he paid without the knowledge of or against the will of the debtor.
Art. 1237
It talks about the third party subrogation rights. First is whoever pays on behalf of the debtor with consent is entitled to subrigation. And second is if no consent, the third person cannot compel for payment.
Art. 1238
Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be donation. It requires the consent of the debtor.
Art. 1239
This article states that payment will not be valid if it is made by one who has no free disposal of the thing due and has a capacity to alienate a contract. It also talked about the distinction between subrogation and reimbursement.
Art. 1240
It is about persons from whom the payment shall be made: (1) Creditor/ obligee, (2) Successor, (3) Person authorized to receive it. If a person is subrogated, payment should be made to him. Payment in good faith to any person is valid although person may not be authorized to receive it.
Art. 1241
Payment to a third person may still be valid as when the creditor is benefited. The validity of the payment is coextensive to the benefit the creditor receives. It also stated the effects of payment to an incapacitated person.
Art. 1242
Payment made in good faith to any person in possession of the credit shall release the debtor. This law intended to protect the debtor for being required to double the payment to creditor.
Art. 1243
Payment to the creditor is not valid when:
(1) Payment by debtor-stranger shall not be valid if plaintiff wins the case; (2) Debtor who is creditor of another, the court may retain the debt until the right of plaintiff. It is only applicable in debts or credit not in property.
Art. 1244
The general rule in this article is that the creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid.
Art. 1245
It is about special form of payment. Dation in payment is a conveyance of ownership of a thing as an accepted equivalent. It is not an ordinary way of extinguishment which uses property as a payment. There us dation in payment when property is alienated to the creditor in satisfaction of his debt.
Art. 1246
This article pertains to the quality of the thing to be delivered. It is waived to creditor, once accepting inferior quality or by debtor delivering superior quality.
Art. 1247
The extrajudicial expenses required by the payment shall be on the account of the debtor unless it is stipulated on the contrary. This does not apply to expenses incurred by the creditor on going to the debtor's domicile to collect.
Art. 1248
This provision contemplates one creditor and debtor. There should be a complete performance of prestation for the obligation to be extinguished. Creditor can accept partial performance but they cannot be compelled. The debtor is required to comply but is not required to make partial fulfillment if he does not wish to do so.
Art. 1249
This article provides what currency to be used in terms of payment. Debts in money shall be paid in the currency stipulated. If cannot, the currency that is legal tender in the Philippines must be followed. Mercantile documents does not extinguish obligation unless they are cashed or impaired by creditors.
Art. 1250
The value of currency at the time of the establishment shall be the basis of payment incase of extrairdinary inflation or deflation of the currency stipulated should supervene, except when there is an agreement to the contrary.
Art. 1251
This article states that obligation shall be paid on: (1) stipulated place, (2) in delivery of determinate thing the place is where obligation was constituted, (3) delivery of generic thing domicile of debtor or place of debtor.
Navarro, Krisha Mae M.
1BSA-B
Good day, Atty. Narciso. Here are some key points that I learned upon seeing this video.
Article 1231: Obligations are extinguished by payment of performance, loss of thing due, condonation or remission of the debt, compensation, novation. Fortuitous event,
impossibility of fulfillment, resolutory, mutual decision of a party, Death of the party requiring personal service, compromise.
Article 1232: It states that payment includes not just the delivery of money but also it can be giving, doing or not doing. PAYMENT AND PERFORMANCE ARE SYNONYMOUS.
Article 1233: A debt is not considered paid until the thing or service that constitutes the obligation has been fully delivered or made.
Article 1234:
If the obligation was substantially fulfilled in good faith, the obligor could be entitled to compensation as if it had been strictly and completely fulfilled, less the losses incurred by the obligee.
Article 1235: The obligation is considered completely fulfilled when the creditor acknowledges the performance despite its incompleteness or irregularity and without complaint or opposition. If the defect of the performance is hidden in nature, meaning it is not obvious to the eye of the obligee, the article 1235 do not apply.
Article 1236: Talks about persons from whom the creditor must accept payment which are debtor, any person who has an interest in the obligation (like a guarantor) and A third person who has no interest in the obligation when there is stipulation that he can make payment.
Article 1237: Talks about the right of the debtor on subrogation;
- Whoever pays on behalf of the debtor with consent is entitled to subrogation.
- If no consent, 3rd person cannot compel
Article 1238: A payment made by a third person who does not wish to be reimbursed by the debtor is considered a donation, and the debtor's consent is needed. However, the payment is legitimate as far as the creditor who approved it is concerned.
Article 1239: Payment is void if the third party has no legal right or if the individual lacks the legal capacity to enter into a contract like for example, a minor. Minor has no power to alienate a property.
Article 1240: Talks about the persons from whom the payment shall be made which are Creditor/oblige, Successor, Person authorized to receive it.
Article 1242: The debtor is released if payment is made in good faith to any person in possession of the credit. The law is intended to protect the debtor from being required to double the payment to creditor.
Article 1243: Talks about WHEN PAYMENT TO CREDITOR IS NOT VALID
- Payment by debtor-stranger shall not be valid if plaintiff wins the case, considered as bad faith
- Debtor who is creditor of another, the court may retain the debt until the right of plaintiff
Article 1245: Talks about the special form of payment which is dation. It is A conveyance of ownership of a thing as an accepted equivalent. It is called special form of payment because it is not an ordinary way of extinguishment (ex. Not money but property).
Article 1246: This article pertains to the quality of the thing to be delivered. It is waived to creditor, once accepting inferior quality or by debtor delivering superior quality. Focus on the right value of amount delivered according to intention and payment.
Article 1247: Unless otherwise specified, the debtor is responsible for any extrajudicial expenditures incurred as a result of the payment. In the case of judicial costs, the laws of court will apply.
Article 1248: The provision only contemplates one creditor and debtor
- There should be a complete performance of prestation for the obligation to be extinguished
- Creditor can accept the partial performance but cannot be compelled.
- Debtor is required to comply but not required to make partial fulfillment if he does not wish.
Article 1249: Currency offered by debtor in right amount, creditor must accept it. Creditors have the right to reject promissory notes and checks because they are not legal tender.
Article 1250: Talks about extraordinary inflation or deflation. When the currency suddenly drops or inflates then the value of the currency payment at the time of the establishment of the obligation and not at the time of the payment would be valid.
Article 1251: It gives the rules regarding the place for the payment of obligation without prejudice to venue under the Rules of Court.
Thank you, Atty.
Reyes, Zhellie Mae
1-BSA-A (PNC)
Good day Atty! Thank you for this video lecture. This Chapter discusses ways or manners that an obligation will be extinguished or terminated. Starting with Article 1231 which talks about situations where an obligation will be extinguished which can be by payment or performance of the said obligation, loss of the thing due, by the condonation, remission of the debt, confusion, or merger of the rights of the creditor, and debtor, by compensation and by novation. Aside from the causes enumerated in the article, an obligation can also be extinguished by a fortuitous event, impossibility of fulfillment, and if its resultory where obligation will be extinguished after the fulfillment of the condition. In addition to that, we should also understand that an obligation can also be extinguished if both parties have come up with a decision to do so.
Moving on with the first section of the chapter which is payment or performance. Article 1232 talks about how payment does not necessarily mean the delivery of money but also the performance of an act, doing and not doing an act. It merely stresses that the doing of the above prestations are enough to be considered as a payment even if there is no money involved. On the other hand, Article 1233 talks about how one should not assume that the payment has been delivered or done if the performance has not been completed. This article talks about concepts of payment such as integrity of prestation which refers to the full performance of the obligation. This article helped me understand one of my rights as a creditor on how I can refuse to pay a certain thing that has been delivered to me if the thing is incomplete or it is not the one who is in our stipulation just like what is stated on the second concept of identity of prestation where the very and agreed prestation must be delivered. It also talks about how essential a receipt is for it serves as a reliable confirmation that the debt has been paid. As to what is stated in Article 1233 where the law compels for a complete performance, Article 1234 is an exception as it allows the debtor to perform a substantial performance as long as the essential part of the contract has been performed and the debtor acted in good faith which is already presumed in the absence of proof of the contrary. For Article 1235, if the obligee or creditor accepted the performance even though he/she is fully aware that it is incomplete or there is an irregularity and did not express any protest or objection, then the obligation is deemed fully complied with by the law. I also understand that 1225 won’t apply if the party is unaware of the incompleteness or irregularity of the performance as it is clearly stated on one of its requisites that the obligee must know the incompleteness or irregularity of the performance. Article 1236 talks about how the debtor cannot compel the creditor to accept performance or payment by a third person who has no interest in the fulfillment of the obligation. The ideal person who the creditor should accept performance or payment is of course from the debtor as he/she is the one involved in the contract. However, it can also be possible only if it’s clearly stated or stipulated on the contract, otherwise, the creditor has the right to refuse acceptance of payment or performance by a third person. In addition to that, the third person can only obtain reimbursement if it was not done against the will of the debtor. On the other hand, Article 1237 briefly discusses the third party subrogation right while Article 1238 talks about a certain situation that if the third person does not intend to be reimbursed, then it is considered to be an act of generosity in the form of a donation as long as it is not against the will of the debtor for it to be deemed as valid. For Article 1239, the payment shall be invalid if the said payment is made by one who does not have the free disposal of the thing due and capacity to alienate or fitness to enter into a certain contract. Article 1240 identifies the person who is authorized to accept payment or performance. it is clearly stated that payment shall be made to of course the creditor/obligee, successor, and a person who is authorized to receive it. Meanwhile, Article 1241, pertains to a situation where the payment to an incapacitated person such as a minor can be considered valid upon certain conditions such as if he has kept the things delivered and if the payment has been beneficial to him. For Article 1242, the law is intended to protect the debtor from being required to double the payment to the creditor. Now, For Article 1243, payment by the debtor shall not be valid if the plaintiff wins the case, it is considered as bad faith. It is only applicable if debts or credits and not in property. Article 1244 just explains how the obligor should perform the very obligation that was stipulated if it is a real obligation. He cannot compel the creditor to accept the delivery of thing even if it’s of the same kind and quality if it is against the will of the creditor and if it is not included in the stipulation of the parties as well as in a personal obligation where it cannot be substituted against the creditors will. Article 1245 talks about a special form of payment which is called dation. Dation of payment is defined in the video as a conveyance of ownership of a thing as an accepted equivalent. It is considered a special form of payment because it is not an ordinary way of extinguishment as it pertains to property as a form of payment. Article 1246 pertains to the quality of the thing to be delivered. As we all know from the previous discussions, if the thing to be delivered is indeterminate, the creditor cannot demand a thing of superior quality but neither can the debtor deliver a thing of inferior quality. The quality lies in the purpose of the obligation and other circumstances. For Article 1247, unless it is stipulated, the extrajudicial expenses which are required by the payment shall be for the account of the obligor/debtor. In this article, it is provided that this does not apply to expenses incurred by the creditor is going to the debtor’s residence to collect. Article 1248 states that there should be a complete performance of prestation for the obligation to be extinguished however, the creditor can accept partial payment or performance just as to what had been discussed by previous articles but the creditor cannot be compelled to accept such delivery or performance. The second to the last article which is Article 1249, merely stresses that the payment of debts in the form of monetary value shall be made in the currency stipulated. However, if it is not possible, then the currency is legal tender in the Philippines. It also states that the creditor has the right to refuse to accept any payment using instruments of credits. For the last article, Article 1250 talks about how the basis of payment should be based on the purchasing value at the time, subject to agreement by parties.
Once again, Thank you Atty and stay safe.
Quiom, Christine B.
1BSA-B
Pamantasan ng Cabuyao
Thank you Atty. Here are the summary of what I learned from this video.
Chapter 4 is about extinguishment of obligations.
In Article 1231 the general provisions of which obligation is extinguished are by payment/performance, loss of thing due, and condonation. Other causes or additional are recession, fortuitous event, resolutory condition, among others.
Article 1232 refers to payment or performance. Payment is not only delivery of money. In legal mode, it can be performance which is giving a thing, doing act, or not doing an act.
Article 1233 gives the two concept of payment. First is integrity of prestation or the performance of the obligation. Second is the identity of prestation or which the very thing/prestation should be delivered.
Article 1234 is an exception to the general rule that payment must be completely rendered. It includes the doctrine of substantial performance and performance in good faith which obligation can be extinguished.
Article 1235 is also an exception where obligation with irregularity is known by the debtor, it extinguished the obligation.
Article 1236 enumerates the persons from whom the creditor must accept payment. They are the debtor, guarantor, and third person without interest but stipulated in the agreement.
Article 1237 is about the payment on behalf of the debtor but without consent. The effect is creditor cannot be compel by the third person in subrogation.
Article 1238 is apply when third person who pays has no intention to claim reimbursement from the debtor. It is the same as a donation which requires debtor consent to be valid.
Article 1239 provides situations in which payment becames invalid. When there is free disposal of the thing due means thing is not subject to any claim of third person and a person does not have capacity to alienate or enter to a contract.
Article 1240 enumerates person from whom the payment shall be made. These are creditor, successor and person authorized to receive.
Article 1241 is an exception in the rule of the preceding article because payment to a third person may still be valid if it has redounded to the benefit of the creditor.
Article 1242 is intended to protect the debtor from being required to double the payment to creditor. Moreover, possession of instrument does not entitle the holder to payment. It is only to the owner of credit.
Article 1243 considered an invalid payment when debtor has been judicially ordered by the court to retain the debt but he has paid to a creditor which is a bad faith.
Article 1244 states that the very prestation due must be complied with in real and personal obligation. The general rule is creditor shall be paid only what has been stipulated in the contract.
Article 1245 considered dation in payment as a special form of payment because it is not an ordinary way of extinguishment. It is the transfer of ownership over a property in favor of a creditor.
Article 1246 talks about the quality of a thing to be delivered in generic thing. The quality should be base on the purpose of an obligation or circumstances. Likewise, the right value of amount is according to intention and payment.
Article 1247 refers to extrajudicial expenses shall be for the account of the debtor. It does not apply to expenses incurred by the creditor for collection in going to the debtor's domicile.
Article 1248 is that partial performance is allowed when expressed by stipulation, debt is liquidated and unliquidated, also prestation obligation have different conditions and cannot executed simultaneously.
Article 1249 is about legal tender and creditor cannot refuse to accept it when those currency is used for payments of debts. All money or notes issued by BSP is a legal tender.
Article 1250 states that in case of inflation or deflation, the basis of payment should be based on purchasing value at the time of the establishment of the obligation, unless there is a contrary agreement by the parties.
Article 1251 is about the place where obligation shall be paid. First, on the place stipulated. Second, the place where obligation was constituted in delivery of specific thing. Third, domicile of debtor in delivery of generic thing.
Camposano, Ayumi H.
1 BSA B
Good day, sir!
Here are my key take aways after watching the video.
• Chapter 4: Extinguishment of Obligation
- extinguishment means an end to an obligation on the other hand, Extinguishment of obligation is a manner or way by which an obligation is extinguished or being terminated.
•Article 1231
*Obligations are extinguished, by payment, by loss of the thing due, by remission of the debt, by confusion of the rights of creditor and debtor, By compensation, and lastly by novation.
* Additional causes are fortuitous event, impossibility of fulfillment (Physical and legal) , resolutory, Mutual decision of the party, death of the party, and lastly compromise.
• In section 1 of Chapter 4 it contains the Payment or Performance
• Article 1232
*Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.
*Ordinary Parlance- delivery of money while the Legal mode is the delivery of money also, includes the giving a thing , doing an act, and not doing an act.
•Article 1233
* Concepts of payment
-Integrity of prestation- means that the performance must be full and the delivery must be complete.
-Identity of prestation
The very and agreed prestation must be delivered.
•Article 1234
Article 1234 is an exception in article 1233. It talks about that the obligation is strictly complied with or that the debtor had completely delivered accordingly with the agreement. However, this article allows the debtor to perform a substantial performance in good faith as a substitute for the strict completion of fulfillment of the obligation.
•Article 1235
This article states that if there was an incomplete performance of the obligation then the obligee must state his objection or protests. On the other hand, if there was no protests/objection and the obligee is aware and accepts the incomplete performance then the law will presume that the obligation is fully complied with.
*kinds of payment
Regular payment- complying on what stipulation
Irregular payment- incomplete to what stipulation
•Article 1236
This article states that the creditor is not bound to accept the payment by the other contracting parties or 3rd person due to the fact that it has no interest in obligation unless there is a contrary stipulation.
•Article 1237
This article is all about the third party subrogation rights wherein whoever pays on behalf of the debtor with consent is entitled to subrogation.
And if the payment is made with the consent of the debtor then the third person can acquire all the mortgage, guarantee and penalty.
•Article 1238
This article states that the payment made by the third person without the intention to reimbursed by the debtor is deemed to be donation. However, donation requires a consent of debtor and before the donation is perfected it must be accepted by the donee. Even though the debtor won't accept the donation the payment as to him will be valid.
•Article 1239
*Free disposal of the thing due
Thing to be delivered must not subject to any claim of third person
* Capacity to alienate-person is not incapacitated to enter into contracts.
•Article 1240
*Persons from whom the payment shall be made:
-Creditor, Successor, and person
authorized to receive it
•Article 1241
-This article talks about that when the creditor is incapacitated and cannot administer his own property then the creditor needs legal guardian to receive the payment. However if there is none the debtor may consign the thing in court.
-This article also applies to payment made by the debtor with the intention to extinguish his obligation.
•Article 1242
"Payment made in good faith to any person in possession of the credit shall release the debt"
•Artcile 1243
- Payment to creditor not valid if it is payment by debtor-stranger specifically it the plaintiff wins the case it will be considered as bad faith. It is also not a valid payment if the debtor is a creditor if another.
•Article 1244
In this article the general rule is that the creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid.
•Article 1245
-article 1245 is very important provsion of law.
- Dation means that a special form of payment due to the fact that it is not an ordinary form of payment.
-Dation in payment- A conveyance of ownership of a thing as an accepted equivalent.
-Dation in payment occur when the property is alienated to the creditor in satisfaction of his debt.
•Article 1246
This article pertains to the quality of the thing to be delivered. It focuses on the right value of amount delivered in accordance to intention and payment.
•Artcile 1247
This article is about that the debtor will have to pay for the expenses out of court which is required when collecting the debt. However this article does not applyto expenses incurred by the creditor in going to the debtor's domicile to collect.
•Artcile 1248
This artcile only contemplated one creditor and debtor and there should be a complete performance of prestation in order for the obligation to be extinguished.
•Article 1249
This article is about the kind of currency used in terms of payment in case of the fault of the party did not agree with the currency, it is only possible to be paid in the legal tender
In the Philippines which is the Philippines peso.
•Article 1250
This article simply talks about the extraordinary inflation which means that the sudden rise of price and the deflation means that the drop of currency or the decline of general price level. It also states that in case of inflation the value of the currency must be valued at the time of the establishment of obligation.
•Article 1251
*Obligation shall be paid on
-Stipulated place
-In delivery of deteminate thing
-Delivery of generic thing domicile of debtor
Aliah Greicel E. Lacanilao
1BSA-A
Pamantasan ng Cabuyao
Summary of my learnings:
Article 1231 - This article states the reasons why obligations are extinguished. It can be by payment or performance, by the loss of thing due, by condonation or remission of the debt, by confusion, by compensation, or by novation.
Article 1232 - Payment can be a performance, not just money.
Article 1233 - A debt is not considered to be paid unless the obligation has been done completely.
Integrity of prestation - full performance
Identity of prestation - must be delivered
Article 1234 - If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a complete fulfillment. Everyone is presumed to be in good faith.
Article 1235 - When the obligee accepts a bad performance without any protest or objection, it implies that the performance of the obligation is fully complied with.
Article 1236 - A creditor is not bound to accept any payment from a third person who has no interest in the fulfillment of the obligation unless there is a stipulation.
- If payment is made without the knowledge or against the will of the debtor, the third person may only recover the payment beneficial for the debtor.
- If payment is made with knowledge of the debtor, the third person have the right to reimburse the amount unnecessary to the debt and he will acquire all the rights of the creditor.
Article 1237 - The third person cannot compel the creditor to subrogate rights if the debtor have no knowledge of the payment made.
Article 1238 - The payment by a third person who does not intend to be reimbursed is called a donation, which requires the debtor's consent. The payment is valid to the creditor.
Article 1239 - subrogation - getting all rights of creditor/change of creditor
Article 1240 - Payment can be received by: the creditor himself, his successor, or any person who is authorized to receive it
Article 1241 - Payment is valid if it benefits the creditor
Article 1242 - This article protects the debtor to double his debt as it states that paymemt made in good faith to any person of the credit shall release the debtor.
Article 1243 - Payment to the creditor after he is judicially ordered to retain the debt is invalid. This does not apply to properties.
Article 1244 - The debtor must pay only the amount the agreed upon, not any more or less. The contract must always be followed.
Article 1245 - Dation in payment - payment by property, shall be governed by law of sales
Article 1246 - When the obligation is about delivering an indeterminate or generic thing, the creditor cannot demand for a superior quality and the debtor cannot deliver a thing with inferior quality.
Article 1247 - extrajudicial expenses must be paid by the debtor. It does not include the creditor's expenses to collect the payment.
Article 1248 - partial performance is not allowed unless it is stipulated.
Article 1249 - The payment should be in the currency both parties agreed upon. However, if it is not possible, then it should be legal tender in the Philippines.
Article 1250 - If there is an inflation or deflation, the basis of the currency is the one when the obligation is established.
Article 1251 - The place of payment should be on the stipulated place. In case of delivery of determinate thing, it should be where the obligation was constituted.
Pamplona, Maynalyn Y.
1BSA-A
Pamantasan ng Cabuyao
Chapter 4: Extinguishment of Obligations
Extinguishment of obligations means that obligation is being ended.
Article 1231- List how the obligations are being extinguished.
(1) by payment or performance
(2) by 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
Additionally, there are other causes of extinguishment of an obligation such as a fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise.
Article 1232- Talks about the legal payment means delivery of money or giving a thing, doing an act, not doing an act.
Article 1233- Explains the concept of payment wherein the Integrity of Prestation means that the obligation is performed completely or in full. On the other hand, the Identity of Prestation means that the very and agreed prestation must be delivered. It also talks about receipt as a confirmation of payment.
Article 1234- It allows the debtor or obligor to perform a substantial performance in good faith as a substitute for the strict and complete fulfillment of the obligation. It is an exception in Article 1232. It also has 2 requisites. (1) Substantial performance where the essential or important part of the contracts has been performed while the minor details are not yet. (2) Obligor must be in good faith which means presumed in the absence of proof of the contrary.
Article 1235- The law compels the obligor to express his protest or objection in case that he accepts the performance knowing it has irregularity or incomplete. If there was incompleteness or irregularity on the part of the performance of the obligation then the obligee must express his protest otherwise if there is no protest and the obligee knowingly accepts an incomplete obligation then the law will presume that the obligation is demanded and fully complied with. There are two requisites. (1) Obligee knows the incompleteness or irregularity of performance. (20 Accept the performance without expressing a protest or objection. It applies only if the obligee knows the incompleteness and despite incompleteness, he accepts the performance without expressing protest or objection.
Article 1236- It is the debtor who will have to pay the creditor. Then the creditor is not bound to accept the payment or performance of obligation made by the third person who has no interest in the fulfillment of the obligation. In case the creditor accepts the payment of the third person who has no interest in the fulfillment of the obligation the third person who paid may demand from the debtor what he has paid. But if the third person paid without the knowledge of the debtor or if he has the knowledge but made against his will then the third person may recover only the payment beneficial to the debtor.
Article 1237- Explains third-party subrogation rights in which whoever pays on behalf of the debtor with consent is entitled to subrogation. On the other hand, if there is no consent then the third person cannot compel.
Article 1238- Talks that it is considered a donation if the payment made by the third person did not intend to be reimbursed by the debtor . But the debtor should be knowledgeable about donation as it requires the consent of the debtor.
Article 1239- Talks about the obligation to give. The capacity to alienate means that the individual is not incapacitated to enter into contracts, whereas free disposal of the thing means that the thing to be delivered is not subject to any claim of the third party.
Article 1240- Clearly stated to whom the payment should be made-the creditor, his successor, or any authorized person to accepts the payment.
Article 1241- Explains that the payment to a minor has conditions. It depends, if the minor has kept the thing delivered or if the payment has been beneficial to him.
Article 1242- This article is to protect the debtor to double his payment to the creditor.
Article 1243- If the debtor makes a payment to the creditor after the debtor has been judicially instructed to keep the debt, the payment could not be considered valid.
Article 1244- The obligor is bound to perform the very prestation due that must be complied with it. That the creditor or obligee may not be compelled to receive something which has not been agreed upon.
Article 1245- Talks about the special form of payment. The dation in payment, application in payment, payment by cession, and tender of payment and consignation.
Article 1246- If the quality is not stated, the creditor cannot demand superior quality neither the debtor cannot give inferior quality in terms of delivering the determinate or generic thing.
Article 1247- Unless otherwise mentioned in the stipulation, the debtor is responsible for the expenses.
Article 1248- Unless the stipulation states otherwise, the prestation should be completed. However, if the debt is partially liquidated and partially unliquidated, the debtor can pay the creditor without waiting for the creditor to be liquidated.
Article 1249- This article provides the kind of currency which is to be used in terms of payment. In case of default or parties did not agree on the currency, it can only be paid in the legal tender in the Philippines which is the Philippine peso. But, the parties can stipulate on what currency they should pay in mutual agreement.
Article 1250- Explains that inflation is the sudden rise of the value of money, while deflation is the sudden decrease. If there is a sudden decrease or increase of the value of the currency, at the time the obligation was created would be the basis of payment unless there is a stipulation stated.
Article 1251- states that payment should be made at the place designated for the obligation. The debtor will bear expenses if it incurs delay.
Thank you, sir!
Lopez, Rea Mae P
1BSA-A (PNC)
Good Evening Attorney! Here is the summary of what I have learned from this video lecture:
Article 1231 talks about the causes of extinguishments of obligations wherein obligations are extinguished by payment or performance, loss of the thing due, condonation or remission of debt, confusion or merger of the rights of creditor and debtor, compensation, a, and novation. Also, it talks about the additional causes of extinguishment.
Article 1232 states the meaning of payment. In ordinary parlance, payment means the delivery of money while in legal mode, payment means delivery of money or giving a thing, doing an act, or not doing an act.
Article 1233 tells the concepts of payment wherein it includes the integrity of prestation which refers to the full performance of the obligation and if the thing delivered is not the thing or incomplete under stipulation then the creditor can refuse to pay. Also, it includes the identity of prestation, the thing must be delivered, the very and agreed prestation must be delivered. It also tells how important receipt is because it is a decent confirmation of payment and the debtor can request a receipt from the creditor once his obligation is paid.
Article 1234 is an exception to Article 1233 it allows the debtor to perform a substantial performance in good faith as a substitute for the strict and complete fulfillment of the obligation. It also discusses the requisites which are there must be substantial performance and the obligor must be in good faith.
Article 1235 tells that obligation is fully complied with if the obligee accepts the performance knowing that he is aware of its incompleteness or irregularity, and without expressing any protest or objection. It also tells the requisites which are the obligee knows that the performance is incomplete or irregular, which means if the obligee is unaware of its incompleteness and irregularity then Article 1235 will not apply and he accepts the performance without expressing any protest or objection.
Article 1236 talks that the creditor can only accept payment by the third person if there is a stipulation to the contrary otherwise the creditor is not bound to accept payment by a third person unless that person is a debtor, guarantor, or has an interest in the obligation then the creditor can accept his payment. If the third person paid the creditor and the creditor accepts it with the knowledge and consent of the debtor, then the third person has a right to demand or can reimburse what he has paid to the debtor.
Article 1237 talks about the third party subrogation rights wherein whoever pays on behalf of the debtor with consent are entitled to subrogation, and if no consent, the third person cannot compel.
Article 1238 states that if the payment made by the third person is made without the intention of reimbursement from the debtor then the law will be considered that payment as a donation that requires the debtor's consent to be valid.
Article 1239 tells the meaning of free disposal of the thing due and capacity to alienate. Free disposal of the thing due means the thing to be delivered must not subject to any claim of a third person while the capacity to alienate means that the person who will enter into a contract is not incapacitated. The person should be in his legal age and he should be in his right mind to have the power to alienate a contract.
Article 1140 talks about the persons whom the payment shall be made which are creditor or obligee, successor or person who has authority.
Article 1241 states that payment made by an anticipated person or a minor has conditions, it shall be valid if he has kept the thing delivered. Also, payment made by the third person will be valid if it will benefit the creditor.
Article 1242 means protecting the debtor by doubling his payment to the creditor.
Article 1243 tells that there should be an order from the judge to retain the debt to not be valid and it applies only in debts or credits, not in property.
Article 1244 states that the debtor will pay or perform only on what has been stipulated or agreed upon by the creditor.
Article 1245 talks about the meaning of dation in payment which means it is not an ordinary way of extinguishment and it is a special form of payment because payment is not through money but property.
Article 1246 tells that if the quality is not stated or not agreed upon by both parties, the debtor still needs to satisfy the creditor by the delivery of a thing with minimum quality.
Article 1247 states that the debtor is liable for the expenses unless it is stated in the stipulations.
Article 1248 says that the obligation should be completely performed to be extinguished and not partially unless it is stated in the stipulations.
Article 1249 speaks that there should be an agreement in the currency of payment and provides what kind of currency is needed in terms of payment, if there is no agreement it can only be paid in the legal tender in the Philippines which is the Philippine peso.
Article 1250 talks that in case there is inflation or deflation, the value of the currency at that time of agreement should not be changed.
Article 1251 states about the place where obligation shall be paid means obligation shall be paid on the stipulated place only or where both parties agreed upon.
Thank you for this video lecture Atty! God bless you.
Azagra, Mark Johndave A.
1 BSA-B (PNC)
Good evening Atty.
Here are the summary of what i've learn on this discussion.
Extinguishment of obligation is being ended or terminated.
ARTICLE 1231
-Additional Causes of Extinguishment.(F,I,R,M,D,C)
ARTICLE 1232
-Ordinary Parlance.
-Legal Mode.
ARTICLE 1233
-Concept of Payment.
1. Integrity of Prestation.
2. Identity of Prestation.
ARTICLE 1234
-Exception in Article 1233 Found in Article 1234.
×Requisites
1. Substantial Performance.
2. Obligor must be in good faith.
ARTICLE 1235
-Requisites. (2)
-Payment.
1. Regular Payments.
2. Irregular Payments.
ARTICLE 1236
-Persons from whom the creditor must accept payment. (3)
-Effects of Payment by a Third Person. (2)
ARTICLE 1237
-Third Party Subrogation Rights. (3)
ARTICLE 1238
Discuss the donations requires the debtor consent to be valid.
-3 Reasons.
ARTICLE 1239
-Free Disposal.
-Capacity to Alienate.
-Difference between SUBROGATION and REIMBURSEMENT.
ARTICLE 1240
-Persons from whom the payment shall be made.
-Authorized By Creditor and Law.(2)
ARTICLE 1241
-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; (3)
-Effects od Payment to an Incapacitated Person.
ARTICLE 1242
-This law intends to protect the debtor from being required double payment. (3)
ARTICLE 1243
Discuss the payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
-Payment to creditor not valid.
Article 1244
-Very prestation due must be complied with (1) Real obligation to deliver a specific thing that cannot be offered against the will of creditor or debtor.
(2) Personal obligation that cannot be substituted against the creditors will.
ARTICLE 1245
×Special form of payment.
1. Dation in Payment(adjudication) (2).
2. Application of Payment.
3. Payment by cession.
4. Tender of Payment and Consignation.
*There is dation in payment when property is alienated to the creditor in satisfaction of his debt.
ARTICLE 1246
-The quality of the things to be delivered
ARTICLE 1247
-Judicial Cost. (6)
•Losing Party generally pays judicial cost.
•Statutory amounts allowed in expense incurred in the action.
•Cost of an action is to be paid by losing partner/party.
ARTICLE 1248
-The provision only contemplates one creditor and debtor.
-There should be a complete performance of prestation for the obligation to be extinguished
-The creditor can accept the partial performance but cannot be compelled.
Thank you and God bless Atty.
Aromin, Maria Concepcion B.
1BSA-A
Article 1231 - This tackles about the obligations tha tare extinguished by payment or performance.
Article 1232 - Payment means not only the delivery of the money but also the delivery of performance in any other manner of an obligation.
Article 1233 - a debt is considered paid when a thing or the service has been paid through payments or through actions.
Article 1234 - This article is somehow opposite to the first article that we have, the Article 1233.
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.
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 on the contrary.
Article 1237 explains a third party's subrogation rights. Whoever pays on behalf of the debtor is entitle to subrogation if the payment is with the consent of the latter.
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 consent. But the payment is in any case valid as to the creditor who has accepted it.
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". Subrogation gets all the right of the creditor; change of creditor while the Reimbursement is entitled to refund to the extent without guarantees and securities.
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. Persons from whom the payment shall be made; Creditor/Obligee , Successor and the person that is authorized to receive it.
Article 1241 is the effects when a payment is done to a minor and a third person.
Article 1242 gives another instance when there is a valid payment to a third person.
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.
Article 1244 refers to a real obligation to deliver a specific thing and personal obligations. Substitution can be made only if the obligee consented it.
Article 1245-The four special forms of payment are dation in payment, application of payments, payment by cession and tender of payment and consignation.
Article 1246-If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Article 1247-Judicial costs are the expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation. In article 1247, the extrajudicial expenses required by the payment shall be for the account of the debtor unless otherwise stipulated.
Article 1248-" Unless there is an express stipulation to that effect, the creditor cannot b compelled partially to receive the prestation in which the obligation consists. Partial performance are allowed only when there is an express stipulation that effect, when the debt is in part liquidated and in part unliquidated and when the different prestation in which the obligation consists are subject to different terms or conditions which affect some of them.
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 in the Philippines or simply the currency offered by the debtor in the right amount, the creditor must accept in payment of debt in money."
Article 1250- In case an extraordinary inflation of 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."
Article 1251- According to this article " Payment shall be made in the place designated in the obligation
Cabanela, Laarni Joy
1BSA-A
Pamantasan ng Cabuyao
Good Day, Atty.! This is the summary of what I’ve learned in your lesson.
Chapter 4: Extinguishments of Obligation (General Provisions)
Article 1231
Obligations are extinguished by the following means
By payment or performance, By the loss of the things due, By the condemnation or remission of the debt, By compensation, By novation
NOTE: The decision must be mutual in nature.
Section 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.”
• Ordinary Parlance - delivery of money
• Legal Parlance - delivery of money or giving a thing, doing an act, or not doing an act.
Article 1233 “ A debt shall not be understood to have been paid unless the thing or the service in which the obligation consist has been completely delivered.”
Concept of Payment
1. Integrity of Prestation - full performance of the obligation. The performance or the obligation must be performed completely.
2. Identity of Prestation - the same object that has been agreed upon by the parties must be delivered.
Article 1234 “If the obligation has been substantially performed in good faith, the obligor may recover as though had been a strict and complete fulfillment, less damages suffered by the oblige.”
It allows the debtor or obligor to perform a substantial performance in good faith. Article 1235 “When the oblige accept the performance, knowing its incompleteness or irregularity and without expressing any or objection, the obligation is deemed fully complied with.”
Recovery allowed when incomplete irregular performance is waived..
Article 1236 “The creditor is not bound to accept payment or performance by third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.
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
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.”
Right of third person to subrogation.
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.”
Payment by a third person who does not intend to be reimbursed.
ART. 1239. In obligations to give, 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 bf article 1427 under the Title on “Natural Obligations.”
Meaning of “free disposal of thing due” and “capacity to alienate.”
Free disposal of the thing due means that the thing to be delivered must not be subject to any claim or lien or encumbrance (e.g., mortgage, pledge) of a third person.
Article 1240 “Payment shall be made to the person in whose favor the obligation has been constituted, or his successor in interests or any person authorized to receive it.”
Person whom payment be made.
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.”
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:
Article 1242 “Payment made in good faith to any person in possession of the credit shall release the debtor.”
Payment to third person in possession of credit.
This article gives another instance when there is valid payment co a third person.
It must be observed that the “possession” referred to under the above provision is possession of the credit itself and not merely of the document or instrument evidencing the credit. Hence, mere possession of the instrument (unless transferable by delivery) does not entitle the holder to payment nor does payment release the debtor.
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.”
When payment to creditor not valid..
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.”
“In obligation to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s will”
Very prestation due must be complied with.
Article 1245 “Datlon In Payment whereby Property is alienated to the creditor in faction of a debt in money, shall be governed by the law of sales.
Special forms of payment.
There are (4) special forms of payment under the Civil Code, namely:
1. Dation in payment
2. Application of payments
3. Payment by cession
4. Tender of payment and consignation.
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 deriver a thing of inferior quality. The purpose of the obligation and other circumstances shall be taken into consideration.”
Rule of the medium quality,If the obligation consists in the delivery of a specific thing, the very thing due must be delivered. However, if the obligation is to deliver a generic thing, the purpose of the obligation and other circumstances shall be taken into consideration to determine the quality or kind of thng to be delivered.
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.
Debtor pays for extrajudicial expenses.
The extrajudicial expenses of payment are for the account of the debtor. The reason is that the obligation is extinguished when payment is made and it is, therefore, the debtor who is primarily benefited. If the parties have made a stipulation as to who bear the expenses, then their stipulation shall be followed.
Article 1248 “Unless there is an express stipulation to that effect, tho creditor cannot be compelled partiany to rocoivo the pregta. Tions In which the obtigafion consists. Neither may tho debtor pe required to make partial payments.”
“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.”
“The delivery of promissory notes payable to order, or bills of exchange or other mer. Cantile 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 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.”
Meaning of inflation and deflation.
1. Inflation is a sharp sudden increase of money or or both without a corresponding increase in business transactions. (Webster’s Dictionary.) Inflation causes a drop in the value of money, resulting in the rise of the general price level.
2. Deflation is the reduction in volume and circulation of the available money or credit, resulting in a decline of the general price level; it is the opposite of inflation.
Article 1251 “Payment shall be made in the place designated in the obligation.”
“There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made whereverthe 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.”
“If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him.”
“These provisions are without prejudice to venue under the Rules of Court.”
Place where obligation shall be paid.
Thank you po.
Vapor, Jan Avriel
1BSA - B
PNC
Good day atty! Here is the notes & summary from this video:
Chapter 4: The extinguishments of Obligations, all about the manners or ways which an obligation is extinguished and terminated.
- Art. 1231 = the obligations can be extinguished by payment or performance, by the loss of the thing due, by the condonation or remission of debt, by the confusion or merger of the rights of creditor and debtor, by compensation, and by novation. Additional obligation may also extinguished such as fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise.
- Art. 1232 = payment in its legal definition is discussed. It is not only the delivery of money but also giving a thing, doing or not doing an act, could also refer to the fulfillment of prestation, delivery of money and giving a specific thing.
- Art. 1233 = the concepts of payment. Has 2 requisites of payment: 1st - Integrity of Prestation (the full performance of the obligation), 2nd - Identity of Prestation or identity of payment (the very thing or service and agreed prestation must be delivered. Prestation of receipt is a decent confirmation of payment.
- Art. 1234 = If there may be substantial performance of an obligation, there must have been an attempt in good faith to perform, without any willful or intentional departure therefrom. In addition, Art.1234 is an exception to the Article 1233 because in Art.1233 the law compels the debtor to a complete performance while in Article 1234 allows an incomplete performance of the debtor.
- Art. 1235 = The obligation is deemed to be fully complied with if the obligee knows the incompleteness or irregularity of the performance and accept the performance without expressing a protest or objection. Has 2 requisites, (1) oblige knows about the incompleteness and irregularity of the performance and (2) oblige accept the performance of the obligor without expressing an objection.
- Art. 1236 = creditor 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. If the creditor accepts payment from a third person who has no interest, the third person may acquire a right to demand to the debtor as long as he is knowledgeable about the payment made. The persons from whom the creditor must accept payment are debtor, guarantor, and 3rd person, even without interest. If the payment by the third person is done, then he/she will have a right of reimbursement.
- Art. 1237 = explains a third party's subrogation rights. the third person who paid only a simple personal action for reimbursement, without the securities, guaranties and other rights recognized in the creditor, which are extinguished by the payment. If third person has no consent, they cannot compel that is according to our subrogation rights.
- Art. 1238 = the payment made by a third person who does not intend to be reimbursed by the debtor is considered as a donation. Payment shall acknowledge as valid if the creditor accepted the payment.
- Art. 1239 = general rule (In obligations to give, payment made by one who does not have the free disposition of the thing due and capacity to alienate it is not valid.) Subrogation gets all the right of the creditor; change of creditor while the Reimbursement is entitled to refund to the extent without guarantees and securities.
- Art. 1240 = the person whom payment shall be made. Payment shall be made to the to the creditor, successor, or any person authorized to receive it meaning a person who is authorized by law to receive the payment.
- Art. 1241 = is the effects when a payment is done to a minor or a person who is incapacitated for the payment. Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor.
- Art. 1242 = payment made in good faith to any person in possession of the credit shall release the debtor; the protection of the debtor if there is a double payment.
- Art. 1243 = the payment to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
- Art. 1244 = said that a real obligation to deliver a specific thing and personal obligations. If it has not been agreed upon, creditor cannot compel to receive something or a substitute even if it is more valuable than the thing due. In this case there may be dation in payment or novation.
- Art. 1245 = talks about the special form of payment which is the dation payment; delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of the performance of the obligation. There are 4 special forms of payment under the Civil Code which are dation in payment, application of payments, payments by cession, and tender of payment and consignation.
- Art. 1246 = discusses the obligation of delivering a generic thing. 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. Creditor cannot compel or demand for a superior quality to the debtor, on the other hand, debtor cannot compel for an inferior quality to the creditor.
- Art. 1247 = obligor or debtor should pay extrajudicial expenses required by the payment. Unless if there is a stipulation, 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.
- Art. 1248 = obligation is extinguish if there should be a complete performance of the prestation. There should be complete performance of the prestation in order that the payment may extinguish an obligation Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.
- Art. 1249 = The payment of the debts in money shall be be paid in the currency stipulated, and if it is not possible to deliver such currency, then the currency can only be paid on the legal tender of the Philippines. . A legal tender is a payment that the creditor may refuse to accept. Promissory note as a negotiable instrument that is not considered as legal tenders and creditor may refuse to accept it.
- Art. 1250 = extraordinary inflation (which is the rising of prices) or deflation (the sudden drop of inflation) of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligations shall be the basis of payment, unless there is an agreement to the contrary. The value of the currency at the time of the establishment of the obligation, then it will be the basis of payment. If there is a sudden drop or inflate of a currency, payment will be made.
- Art. 1251 = given rules regarding the place for the payment of an obligation without prejudice to venue under the Rules of Court Payment shall be made in the agreed place by the parties where the obligation shall be paid. 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.
Rishlene Jane Ellorda
1 BSA-B
Pamantasan ng Cabuyao
Below are the knowledge I gained after watching the video:
Chapter 4: Extinguishment of Obligations
Article 1231, Aside from the reasons why obligations are extinguished (By payment or performance, by the loss of the thing due, By the condonation or remission of the debt, confusion or merger of the rights of creditor and debtor, by compensation, and by novation), the additional causes of extinguishment also includes Fortuitous event, Impossibility of fulfillment, and Resolutory, Mutual decision of the party, Death of the party requiring personal services, and Compromise.
Section 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.
In ordinary Parlance, delivery of money.
Legal Parlance, delivery of money or giving a thing, doing an act, not doing an act.
Article 1233, the concepts of payment, (1) Integrity of Prestation, (2) Identity of Prestation
Presentation of receipt is a decent confirmation of payment. In this way, debtor can request a receipt from the creditor once his obligation is paid.
Article 1234, Exceptiom in Article 1233 found in this article (when there is substantial performance and will considered fulfilled, only compensation about breach of obligor must be paid)
Requisites; (1) Substantial performance, and (2) Obligor must be in good faith
In Article 1235, When the obligee accepts the performance knowing its incompleteness or irregularity, and w/o expressing any protest or objection, the obligation is deemed fully complied with.
Requisites in this article;
1. Obligee knows the incompleteness or irregularity of performance
2. Accept the performance without expressing a protest or objection
(When the obligation with irregularity is known by the debtor, the obligation is considered complied or extinguished.
Article 1236, whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowlede or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor.
Persons from whom the creditor must accept payment; Debtor, Guanrantor, Third person without interest but with stipulation he is capable
Effects of payment by a 3rd person;
1. Made without the knowledge or against the will of the debtor
2. If made with knowledge of the debtor (shall have rights of reimbursement and subrogation of amount that is not necessary to debt and acquire all the rights of the creditor
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.
Article 1238, Payment made by a 3rd 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.
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 title on "Natural Obligations"
The difference between subragation and reimbursement is that subrogation gets all the right of the creditor while reimbursement is entitled to refund to the extent without guarantees and securities
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.
Persons from whom the payment shall be made; Creditor, Successor, and Person authorized to receive it
Article 1241, payment madr to a third pereon shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to tbe 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 persin in possession of the credit shall release the debtor.
This law is intended to protect the debtor from being required to dounle the payment to the 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.
Article 1244, the debtor of a thing cannot compel the creditor to receive a diff of the same value as, or more valuable that that which is due.
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.
Article 1246, the dation in payment when property is alienated to the creditor in satisfaction of his debt
Article 1247, Unless it is otherwise stipulated, the extrajudicial expense required by the payment shall be for the account of the debtor. With regard to judicial cost, the Rules of Court shall govern
This article does not apply to expenses incurred by the creditor in going to te debtors domicile to collect
Article 1248, the partial performance is allowed if;
1. Expressed in stipulatiom
2. Debt ia liquidated and unliquidated
3. Prestation of obligation have diff terms of condition whuch affect some of them, prestations cannot execited simulataneously but shoulf he complete.
Article 1249, the legal tender;
-cannot refuse to accept
-currency offered by debtor in right amount, creditor must accept it.
-currency which may be used for payments of debta whether public or private, and which creditor cannot refuse to accept
-Debts in monet shall be paif in currency stipulated, if canmot pay in currency yhen the currency taht is legal tender in PH must be followed
-All money or notes issued by BSP is a legal tender
Article 1250, the basis of paymeny should be based on purchasing value at that time, subject to agreement by parties.
Article 1251, Payment shall be made in the place designated in obligation
Obligation shall be paid on;
1. Stipulated place
2. In delivery of determinate thing the plaxe is where obligation was constituted
3. Delivery of generic thing domicile of debtor or place of debtor
Thank you, Attorney.
Panganiban, Descerey R.
1BSA-A
PNC
Good Day Atty. These are my takeaways from Chapter 4. Extinguishment of Obligations
Under general provision is article 1231 it shows the causes of extinguishment of obligation.
Under Article 1232 this article explains that payment is not only the delivery of money but also delivery of performance in any other manner of an obligation.
Article 1233 shows the relation on how debt will be considered as paid. It can be the integrity of prestation or identity of prestation where the integrity of prestation a debt is to deliver a thing or to render service is not understood to have been paid unless the service has been completely done. While the identity of prestation it is the very prestation due must be rendered or performed.
Article 1234 embodies the doctrine of substantial performance and it must be distinguished from partial performance.
Article 1235 implies that the obligee should know that the performance is incomplete or irregular and accepts the performance without expressing any protest.
Article 1236 in this article the creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation.
Article 1237 is for the benefit of the debtor the subrogation can only take place with his consent
Article 1238 embodies the idea that no one should be compelled to accept the generosity of others.
Article 1239 it discusses the meaning of free disposal of thing due and capacity to alienate. Wherein it is a thing to be delivered must not be subject to any claim, and the person is not incapacitated to enter into contracts.
Article 1240 means that not only a person authorized by the creditor but also a person authorized by law to receive the payment.
Article 1241 is all about the payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered and payment to a third person shall also valid insofar as it has rebounded to the benefit of the creditor.
Article 1242 gives another instance when there is valid payment to a third person.
Article 1243 said that payment from the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244 explains how very prestation due must be complied with and when the prestation may be substituted.
Article 1245 describes the four special forms of payment, the meaning of dation in payment, and governing law.
Article 1246 is a principle of equity in that it supplies justice in cases where there is a lack of precise declaration in the obligation.
Article 1247 does not apply to expenses incurred by the creditor is going to the debtor’s domicile to collect
Article 1248 implies how the performance of obligation should be complete and when partial performance is allowed.
Article 1249 it explains the legal tender and how legal tender run in our country and what payment by means of instruments of credits.
Article 1250 is about the purchasing value of the currency at the time of the establishment of the obligation.
Article 1251 gives the rules regarding the place for the payment of an obligation without prejudice to venue under the rule of court.
Cas, Jeddah Mae C.
1 BSA-A
Good Day Atty! Below here are what i've learned after watching the video, it is summarized per article based on my understandings on each part, it is as follows:
Article 1231 - This article talks about the extinguishment of obligations and additional causes of extinguishment which are as follows:
·Fortuitous Event
·Impossibility of fulfillment - It can be legal impossibility which are the performance are being prohibited by law; example: selling illegal items and it can be physical impossibility which are the physical limitations or the incapability of a man to do something.
·Resolutory
·Mutual decisions of the party
·Death of the party requiring personal services - If the prestation is a personal obligation and the obligor or debtor dies then the obligation is extinguished because the personal qualifications or characteristics was being taken into consideration.
·Compromise
Article 1232 - This article states that the payment is not only in the means of the delivery of money but of also the delivery of performance.
·Legal Parlance - delivery of money
·Legal Mode - delivery of money, doing an act, giving of a thing and not doing of an act
Acticle 1233 - This article states that a debt shall not be undestood paid unless it has been completely paid and and the delivery of performance has been fulfilled
The concepts of payment are:
·Integrity of prestation- full performance or payment. If the thing delivered is not complete under the agreement then the creditor can refuse to accept
·Identity of prestation (Identity of payment)- The object that has been agreed by both parties must be delivered of the same thing.
Article 1234 - This article states that it allows the debtor to perform a substantial performance in good faith
·Substantial performance means even though the thing is incomplete, it would be acceptable to the creditor and will be considered fulfilled only compensation about the breach
·Requisites:
1. Sustantial performance- essential or important part of contract have been performed while minor details are not yet
2. Obligor must be in good faith- there are honesty and sincerity, presumed in the absence of proof of contrary
Article 1235 - This article states that when the obligee accepts the performance even knowing that it is of incomplete and and its irregularities without any objection or protests then the obligation is deemed full complied with.
·If the defect is hidden in nature and not obvious in the eyes of the creditor then the article 1235 does not apply to this. This article only applies if the obligee is fully aware of it and accept it despite of its irregularities.
Article 1236 - This article states that the creditor is not bound to accept a payment or performance by a third party who has no interest in the fulfillment, only the debtor or the obligor who will have to settle the payment to the creditor
·Persons from whom the creditor must accept payment
1. debtor
2. guarantor
3. third person without interest but with stipulation he is capable
Article 1237 - This article speaks about third party subrogation rights in which whoever pays on behalf of the debtor with consent is entitled to subrogation however if there is no consent the third person cannot compel and cannot acquire the things such as mortgage, guaranty and penalty.
Article 1238 - This article states that if the person does not seek to be paid back or reimbursed by the debtor and the payment that was being made is made without an intentional reimbursement then that is considered as a donation.
·Donation requires consent of the debtor and the acceptance
·Before donation is perfected it must be accepted by the recepient however even if the debtor does not accept the donation but the creditor has accepted it then it is valid
Article 1239 - This article talks about the free disposal of the thing due which is a third person is not claiming any rights or interest over the property and capacity to alienate in which a person is not incapacitated to enter into contracts; one example is a minor cannot or has no power to alienate a contract
Article 1240 - This article speaks of whom the persons from whom the payment shall be made which are the creditor, successor or any person who are authorized to receive it.
Article 1241 - This article talks about if the minor or incapacitated person has kept the thing delivered or insofar has been beneficial to him payment will be valid.
·Payment to a minor is conditional, there is limited validity
Article 1242 - This article talks about is that the law is intended to protect the debtor from being required to double the payment to the creditor.
Article 1243 - This article speaks of when payment to creditor not valid; it shall not be valid if the payment was made by the debtor-stranger and if the plaintiff wins the case.
Article 1244 - This article speaks of the very prestation due must be complied with
Article 1245 - This article states that there is dation in payment when property is alienated to the creditor in satisfaction of his debt
Article 1246 - This article pertains to the quality of the thing to be delivered, it states here that the creditor cannot demand or compel the debtor to deliver a superior thing and therefore the debtor cannot deliver an inferior quality, it should be of average quality only.
Article 1247 - This article states that the debtor will have to pay for expenses, it applies to the expenses other than the transportation expenses incurred by the creditor
Article 1248 - This article states that debtor is required to comply but not required to make partial fulfillment if he does not wish
Article 1249 - This article talks about the kind of currency which is to be used in forms of payment, in case that the party did not agree on the currency then it can only be paid in the legal tender in the Philippines which is the Philippine peso.
Article 1250 - This article states that in case there is an extraordinary inflation or deflation of the currency stipulated, then the value of currency at the time shall be the basis of the payment, unless there is an agreement to the contrary
Article 1251 - This article states that the payment shall be made in the designated place of an obligation, if there is a change of a place in bad faith then there is an additional payment that shall be made by him.
Cepe, Alyanna
Pamantasan ng Cabuyao
1 BSA-B
Here are my takeaways in this video:
Art. 1231 talks about the causes of extinguishment of the obligation, other causes and the additional causes.
Art. 1232 explains that the payment does not only mean delivery of money but also the performance of the obligation.
Art. 1233 states that a debt shall be presumed to have been paid if the thing to be delivered ot service to be rendered has been completely complied with. The concepts of payment are: 1. Integrity of Prestation and 2. Identity of Prestation.
Art. 1234 is the exception of Art. 1233 wherein the substantial performance of the obligor will be considered fulfilled and there is a compensation to the part that the obligor did not fulfill.
Art. 1235 states that the obligation is deemed to be fulfilled when the oblige did not protest and accepts the performance even though he knows that the performance is incomplete and irregular.
Art. 1236 says that the creditor is not bound to accept payment from a third person because he has no interest in the fulfillment of obligation unless the parties made a stipulation. If the creditor accepts the payment, the third person may demand the debtor to give back what he has paid, except that the third person paid the creditor without the knowledge or consent of the debtor.
Art. 1237 explains that if a 3rd person pays the creditor on behalf of the debtor without the knowledge or consent, cannot compel the creditor to give him all of his rights such as those arising from mortgage, guaranty or penalty.
Art. 1238 states that a payment made by a 3rd person without the intention of reimbursement by the debtor is a donation and it requires debtor’s consent, and the payment is valid if the creditor accepted the payment.
Art. 1239 states that the payment made by one who does not have free disposal of the thing due and capacity to alienate shall not be valid.
Art. 1240 is about to whom the payment should be made, and it should be given to the creditor, or the successor, or the person who are authorized to receive the payment.
Art. 1241 says that a payment to a person who is incapacitated to take care of his property is valid as long as he kept the thing delivered or the payment has been beneficial to him. Also, a payment made by a 3rd person shall also be valid as it is beneficial to the creditor.
Art. 1242 states that a payment made in good faith to any person in possession of the credit shall release the debtor and it has the intention to protect the debtor from the double payment.
Art. 1243 says that a payment is not valid if it is made to the creditor after he has judicially ordered to retain the debt.
Art. 1244 explains that a debtor cannot compel the creditor to receive a different thing although it may be the same value or more valuable than the thing agreed upon.
Art. 1245 is about dation in payment wherein the debtor’s property will be alienated to the creditor in satisfaction of a debt in money and it shall be governed by law of sales.
Art. 1246 is about the delivery of an indeterminate thing and the creditor cannot demand to deliver a thing with superior quality or inferior quality unless it is waived to the creditor.
Art. 1247 states that extrajudicial expenses shall be on the account by the debtor unless it is expressly stipulated. The expenses by creditor will on his account. Judicial costs shall be governed by the Rules of Court.
Art. 1248 says that the creditor cannot be compelled to partially receive the prestations neither may the debtor is required to make partial payment unless the debt is in part liquidated and in part unliquidated.
Art. 1249 explains that the payment in money shall be in the currency stipulated. If the currency is impossible to be delivered, then the currency which is the legal tender in the Philippines will be applied, the delivery of mercantile documents will only be in effect of payment if it is cashed or when through the fault of the creditor it is impaired.
Art. 1250 says that in case of extraordinary inflation or deflation, the value of the currency at the time the obligation is established will be the basis of payment unless there is a stipulation between parties.
Art. 1251 states that the payment shall be made at the place designated in the obligation. If there is no place stipulated, in the delivery of determinate thing, the payment shall be made to whoever the thing might be at the time the obligation was constituted. In other cases, the payment should be made at the domicile of the debtor.
Tenorio, Jeane Antonette E.
1BSA−B
Pamantasan ng Cabuyao
Here are my notes from this video:
Extinguishment- an end to an obligation. Manners or ways by which an obligation is extinguished or is being ended or terminated.
Article 1231. Obligations are 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 the creditor or debtor
5. By compensation
6. By novation
Additional causes of extinguishment:
1. Fortuitous event
2. Impossibility of fulfillment
3. Resolutory
4. Mutual decision of the party
5. Death of the party requiring personal services
6. Compromise
Article 1232. Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.
• In ordinary parlance, payment means delivery of money
• In legal parlance, payment means delivery of money or giving a thing, doing an act, or not doing an act.
Article 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be.
Concepts of payment
1. Integrity of prestation- a debt to deliver a thing (including money) or to render service is not understood to have been paid unless the thing or service has been completely delivered or rendered, as the case may be.
2. Identity of the prestation- means that the very prestation due must be delivered or performed.
Prestation of receipt is a decent confirmation of payment. In this way, a debtor can request a receipt from the creditor once his obligation is paid.
Article 1234. If the obligation has been substantially performed in good faith, the obligor may be recovered as though there has been a strict and complete fulfillment, less damages suffered by the oblige.
In art. 1234, allows substantial performance, this means that although incomplete, it would be acceptable to the creditor.
Exception in article 1233 found in article 1234:
When there is a substantial performance and will considered fulfilled, only compensation about breach of the obligor must be paid.
Requisites for the application of article 1234:
1. There must be substantial performance
2. The obligor must be in good faith
Article 1235. When the oblige accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.
Exception in article 1233 found in article 1235:
If payment is incomplete, creditor may reject it and in case of acceptance, law considered he already waive his right, then obligation is extinguished.
Requisites for the application of article1235:
1. The oblige knows that the performance is incomplete or irregular
2. He accepts the performance without expressing any protest or objection
Article 1236. The creditor is not bound to accept payment or performance by a third person, unless it is contrary stipulated. The third person can demand the recovery of his payment to the debtor, except if the debtor does not know or is against it, he can recover if payment has been beneficial to the debtor.
Persons from whom the creditor must accept payment:
1. Debtor
2. Guarantor
3. Third person with no interest but with the stipulation he is capable
Effects of payment by a third person
1. If made without the knowledge or against the will of the debtor, the payer can recover from the debtor only insofar as the payment has been beneficial to the latter.
2. If made with the knowledge of the debtor, the payer shall have the rights of reimbursement and subrogation.
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 right, such as those arising from mortgage, guaranty, or penalty.
Rights of third party to subrogation
• Whoever pays on behalf of the debtor with consent is entitled to subrogation
• If no consent, third person cannot compel
• Even if the creditor gives right, art. 1237 focus on the right of debtor
Article 1238. Payment made by a third party 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 accepted it.
• No one is compelled to accept generosity of another
• If the person does not intend to be reimbursed, it is considered as donation and requires consent to be valid
• If the debtor accepts payment, it is valid
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.”
• Free disposal of the thing due- thing to be delivered must not subject to any claim of third person
• Capacity to alienate- person is not incapacitated to enter into contracts
• Subrogation- gets all the right of the creditor; change of creditor
• Reimbursement- entitled to refund to the extent without guarantees and securities
Once the thing is consumable he cannot recover the same because it has been consumed
Minor has no power to alienate a contract
Article 1240. Payment shall be made to person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it.
Person to whom payment shall be made
1. Creditor or oblige
2. Successor
3. Person authorized to receive it
• If a person is subrogated, payment should be made to him
• Payment in good faith to any person is valid although person may not be authorized to receive the payment
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.
Art. 1241 applies to payments made by the debtor with the intention to extinguish his obligation.
Effects of payment to an incapacitated person
• It is valid unless the thig is kept or benefited by the payment
• Pay to the guardian
• Absence of benefit can result on paying again
When benefits to creditor need not be proved by debtor
1. Subrogated in creditors right
2. Estoppel on the part of the creditor
3. Ratification by the creditor
Fernandez, Patricia Jainah M.
1BSA-A
Good Day, Atty. I would like to thank you for uploading videos that helps us learn and get to know more the Law on Obligations and contracts that would help us for building the knowledge in the time the students you teach would face the world and become successful CPAs.
Article 1231:
Extinguishments of obligations means that the obligation is being ended or terminated. Once extinguished, the obligation ceases to exist. There are many causes of extinguishment: by payment or performance, by the loss of the thing due, reemission of the debt, confusion of the rights of creditor and debtor, compensation and by novation. Furthermore, death of the debtor, mutual withdrawal, arrival of resolutory period, compromise, impossibility of fulfillment and fortuitous event can also terminates an obligation.
Article 1232:
Payment can be defined as delivery of money and giving a thing, doing an act and not doing an act. In law, payment and performance are just the same.
Article 1233:
Debt is an obligation to give, to do or not to do. It has 2 requisites: Integrity of the prestation which talks about the fulfillment of the prestation, if the thing delivered is not the thing or incomplete under stipulation, the creditor can refuse to pay. While the second one is the Identity of the prestation in which the very and agreed prestation must be delivered.
Article 1234:
This provision allows the debtor to perform a substantial performance in good faith as a substitute for the strict and complete fulfillment of the obligation. The exception in article 1233 found in 1234 is that when there is a substantial performance and will considered fulfilled, only compensation about breach of obligor must be paid.
Article 1235:
This provision is all about partial performance. If a payment is insufficient, the creditor can refuse it. However, if the creditor accepts, the law can consider that he has waived his right. There are two requirements for 1235; the obligee is aware that the performance is incomplete and acknowledges it without objection.
Article 1236:
Whoever pays for another will claim repayment from the debtor. The borrower is obligated to accept payment from the debtor, guarantor, and a third party who has no interest, but there is a stipulation that he can pay. If the payment is made without the debtor's knowledge, the payer will recover the money that was only beneficial to the latter. However, if it is done with the debtor's understanding, the payer is entitled to reimbursement.
Article 1237:
Subrogation is granted to whoever pays on behalf of the debtor. However, if the payment is made without the debtor's knowledge, a third party cannot pressure the creditor. Subrogation just refers to a shift of borrower, while repayment refers to money being refunded.
Article 1238:
Nobody should be forced to accept another person's kindness. If the third party does not wish to refund the payment, it is considered a donation that requires the debtor's consent; but, if the creditor acknowledges the payment, it is legitimate even if the debtor did not give his consent.
Article 1239:
Nobody should be forced to accept another person's kindness. If the third party does not wish to refund the payment, it is considered a donation that requires the debtor's consent; but, if the creditor acknowledges the payment, it is legitimate even if the debtor did not give his consent.
Article 1240:
According to this clause, the payment shall be made to the lender, his successor, and any other individual allowed to receive it. The debtor's good faith in paying the wrong party is not an excuse.
Article 1241:
This provision extends to payments made by the debtor in order to discharge his duty. The effect of a payment to an incapacitated person is invalid unless the person held the item paid or delivered or benefited from the payment, while the effect of a payment to a third person is invalid unless it has redounded to the creditor's advantage. In the following circumstances, the debtor is excused from proving benefit to the creditor: subrogation of the payer in creditor’s rights, ratification by the creditor and estoppel on the part of the creditor.
Article 1242:
Its purpose is to protect the debtor from having to double the amount owed to the creditor if there is legitimate payment to a third party. Payment is ineligible because the third party possesses only the record evidencing the credit and not the credit itself.
Article 1243:
In an action brought against a debtor who is the creditor of another, the court may order the latter to retain the debt until the plaintiff's right is established. However, it only applies to debts or credits and not to property. Such a payment is deemed to be made in bad faith.
Article 1244:
Quite strict delivery requirements must be met. The first paragraph discusses a real obligation, while the second paragraph discusses personal (positive and negative) obligations. If the creditor agrees, substitution may be made.
Article 1245:
Dation of payment, which is a conveyance of possession of a thing by the debtor or creditor as an agreed equivalent of results, application of payments, payment by cession, tender of payment, and consignment are the four special payments.
Article 1246:
It focuses on the correct value of the amount provided in relation to the purpose and payment. This provision is an equality concept in that it provides justice where there is a lack of specific declaration in the duty of the content or kind of the thing to be delivered.
Article 1247:
The extrajudicial expenses are for the debtor's account. When payment is made, the obligation is terminated. This clause would not extend to the creditor's expenses incurred in traveling to the debtor's domicile to collect. In most cases, the losing party covers the judicial costs, which are the statutory sums allowed to a party in an action for his expenses incurred in the action.
Article 1248:
The clause addresses obligations on which there is only one creditor and one debtor. The performance must be done in a single act, not in bits. Payment must be made in full fulfillment of the prestation in order for it to extinguish an obligation. There are some partial fulfillment of obligations that are permitted, such as express stipulation, debt is in part liquidated and in part unliquidated, different prestations in which the obligation consists are subject to different terms or conditions which affect some of them, parties know that the obligation reasonably cannot be expected to be performed completely at one time and there is abuse of right or if good faith requires acceptance.
Article 1249:
Legal tender is a type of currency that a debtor may legally force a creditor to accept in payment of a monetary debt. In the Philippines, all coins and notes issued by the Bangko Sentral ng Pilipinas are legal tender for all public and private debts. Promissory notes, checks, bills of exchange, and other commercial papers are not legal tender, and therefore cannot be compelled to be accepted by the creditor. Payment by means of mercantile documents does not extinguish the obligation
a. Until they have been cashed
b. Unless they have been impaired through the fault of the creditor
Article 1250:
Inflation is defined as a sharp, sudden rise in money or credit, or both, without a corresponding increase in business transactions, while deflation is defined as a decrease in the amount and circulation of available money or credit, resulting in a decline in the general price level. The purchasing value of the currency at the time of the obligation's establishment shall be the basis of payment under this clause. It does not occur where the obligation to pay is derived from a source other than a contract or arrangement, such as statute, quasi-contract, tort, or crime.
Article 1251:
It talk about the guidelines for the payment of an obligation without regard to venue under the Rules of Court, and payment must be made in the place specified in the obligation.
Evangelista, Shane G.
1BSA-A
Good day atty!
Here are some of my takeaways in this video lecture;
The lecture is about Extinguishment of obligations by payment or performance (Section 1, Chapter 4 of Title I, The Extinguishment of Obligations).
Payment or performance means not only delivery of money but also performance in any other manner of obligations. And a debt shall not be understood paid unless obligation is completely delivered or rendered, but if obligee accepts incomplete performance knowing the incompletes and shows no objection, the obligation is deemed complete.
The creditor cannot accept performance performance from third person with no interest unless there is a contrary stipulation.
If the third person does not seek reimbursement, then the payment is considered as a donation, but without consent of the debtor , there can be no contract of donation. But payment is valid as long as the creditor accepted it. And no one should be compelled to accept the generousity of the other.
Payment to minor has conditions.
Dation in payment is a special form of payment where property is used for paying debt.
Thank you!
Padayao, Louisa Marie O.
1BSA-B
Good day, Sir!
Through this video lecture, I've learned about the general provisions of the extinguishment of obligations. I've learned that obligations are extinguished in 6 cases. Additionally, these are also causes where obligations would be extinguished: by loss of thing due to a fortuitous event; impossibility of fulfillment that is either physically or legally; resolutory; mutual decision of the parties where one cannot impose his decision not to perform on his own; death of a party on personal obligations where it require one's personal skills/characteristics/specialties, and; by compromise or concession of the parties
First primary cause of extinguishment of obligations is by payment or performance. It was said that payment means, in ordinary parlance, as delivery of money. However in it's legal meaning, it means not only the delivery of money, but also of giving/delivery of a thing, and doing or not doing an act. There are also two concepts of payment. The integrity of prestation requires the full performance of the obligation, and so if the thing delivered is not the thing or incomplete under the stipulation, the creditor is given the right to refuse to accept the thing or the payment. The other concept of payment is the identity of the prestation, where it requires that the very thing/prestation stipulated must be delivered. Substantial performance, as an exception to Article 1233, is a performance that although is incomplete, if is done in good faith, would still be acceptable to the creditor to be considered as fulfilled. Another exception to Article 1233 is the case of incompleteness without the creditor's objection. The law compels the creditor to protest and object when there is an incomplete performance by the debtor. But, under Article 1235, it says that if the creditor does not express any objection to an incomplete performance with his knowledge and accepts it, the law presumes that the obligation is deemed fully complied with. In cases of payment done by a third person, there are different effects that may occur. The important one is that if the payment was done with the knowledge if the debtor, the third person acquires the rights of creditor through subrogation, where he would now become the new creditor. In layman's term, it is reffered to as 'stepping into the shoes of another person (creditor).' However, I've also learned that there are still instances where the paying third person has no intention of reimbursement. This case is reffered to as a donation, where it requires the gratuitous act of the third person, and also the acceptance of the debtor for the donation to be valid.
On the topic of to whom payment shall be done, Article 1240 states that it must be with the creditor or obligee, his successor in interest, or to any person authorized to receive it. The latter is related to Article 1237, where it says that if a person is subrogated to a third person, payment should be done to him. Validity of payment in cases when it is done to an incapacitated person depends. Payment to them will be valid if they have kept the thing delivered, or as far as the payment has been beneficial to him. However, payments to the incapacitated person's guardian is also valid. On Article 1242, it says that when payment is done in good faith especially to a third person, debtor is released from the credit. This law is created to protect the debtor from being required to double the payment to the creditor. This article also states that the possession of instrument does not entitle the holder to payment or release the debtor. Article 1244 states the general rule that creditor shall be paid only to what has been stipulated upon, and that the contract shall be followed and valid. It has been discussed that in real obligations, delivery of a specific thing is cannot be offered against the will of the creditor or the debtor. In personal obligations, on the other hand, requires that the performance is cannot be substituted against the creditor's will where there is a waiver in his rights.
Dation in payment or dacion en pago is one of among the special forms of payment, which are payments that are not ordinary ways to extinguish obligations. It is also reffered to as adjudication. It is the conveyance or transfer of ownership of a thing as an accepted equivalent. On the quality of the thing to be delivered, it was said that it should always be in average quality only, or depending on the stipulation of the parties. It can neither be in superior or inferior quality without the consent of both. However, if the creditor had accepted the thing which is in inferior or superior quality, with his knowledge, is considered that he had waived his rights. Extrajudicial costs are costs acquired outside the courts by payment are on the account of the debtor, unless otherwise stated. Judicial costs, however, are costs incurred in case that a party is compelled to case a file to the court to enforce the obligation. These costs are accounted depending on the discretion of the court. But the stipulation of the parties, if there are any, in regards of whom would bear the expenses must be followed.
On Article 1249, it provides the kind of currency to be used for the payment of the debt, which is the legal tender. Legal tender is a payment the creditor cannot refuse to accept. It had also been discussed that in case the parties cannot agree with the currency to be used, it should then be paid on the legal tender of the Philippines (Philippine peso). However, the parties may still stipulate another currency. It was also said that mercantile documents, such as promissory notes or checks, are not legal tenders. These would only be considered one and produce effect of payment when they have been cashed or impaired through the creditor's fault. This video lecture also discussed about the RA No. 7653, Section 52 of the New Central Bank Act (BSP) Circular 537 that "All notes and coins issued by the Banko Sentral ng Pilipinas 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."
When extraordinary inflation, which is the rising of prices, and deflation, sudden drop of prices, occur, under Article 1250, it has stated that the currency or purchasing value during the time the obligation was constituted should be the basis for payment. However, it still depends on the stipulation of the parties. A table for the comparison between residence and domicile is also presented in this part, where residence requires physical and actual presence, while domicile requires bodily presence and intention to actually make it legal as one's domicile.
This video lecture had helped me a lot, especially on those articles where I needed more explanations to better understand them. The summarization of each articles is very essential since the important topics are emphasized. Thank you so much again, Sir, for this video lecture!
Uy, Joselle Angelu
1BSA-A
Pamantasan ng Cabuyao
Here are my key takeaways from this video lecture.
Chapter 4: Extinguishment of Obligation
- extinguishment means an end to an obligation on the other hand, Extinguishment of obligation is a manner or way by which an obligation is extinguished or being terminated.
•Article 1231
*Obligations are extinguished, by payment, by loss of the thing due, by remission of the debt, by confusion of the rights of creditor and debtor, By compensation, and lastly by novation.
* Additional causes are fortuitous event, impossibility of fulfillment (Physical and legal) , resolutory, Mutual decision of the party, death of the party, and lastly compromise.
• In section 1 of Chapter 4 it contains the Payment or Performance
• Article 1232
*Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.
*Ordinary Parlance- delivery of money while the Legal mode is the delivery of money also, includes the giving a thing , doing an act, and not doing an act.
•Article 1233
* Concepts of payment
Integrity of prestation means that the performance must be full and the delivery must be complete.
-Identity of prestation
The very and agreed prestation must be delivered.
•Article 1234
Article 1234 is an exception in article 1233. It talks about that the obligation is strictly complied with or that the debtor had completely delivered accordingly with the agreement. However, this article allows the debtor to perform a substantial performance in good faith as a substitute for the strict completion of fulfillment of the obligation.
•Article 1235
This article states that if there was an incomplete performance of the obligation then the obligee must state his objection or protests. On the other hand, if there was no protests/objection and the obligee is aware and accepts the incomplete performance then the law will presume that the obligation is fully complied with.
*kinds of payment
Regular payment- complying on what stipulation
Irregular payment- incomplete to what stipulation
•Article 1236
This article states that the creditor is not bound to accept the payment by the other contracting parties or 3rd person due to the fact that it has no interest in obligation unless there is a contrary stipulation.
•Article 1237
This article is all about the third party subrogation rights wherein whoever pays on behalf of the debtor with consent is entitled to subrogation.
And if the payment is made with the consent of the debtor then the third person can acquire all the mortgage, guarantee and penalty.
•Article 1238
This article states that the payment made by the third person without the intention to reimbursed by the debtor is deemed to be donation. However, donation requires a consent of debtor and before the donation is perfected it must be accepted by the donee. Even though the debtor won't accept the donation the payment as to him will be valid.
•Article 1239
*Free disposal of the thing due
Thing to be delivered must not subject to any claim of third person
* Capacity to alienate-person is not incapacitated to enter into contracts.
•Article 1240
*Persons from whom the payment shall be made:
-Creditor, Successor, and person
authorized to receive it
•Article 1241
-This article talks about that when the creditor is incapacitated and cannot administer his own property then the creditor needs legal guardian to receive the payment. However if there is none the debtor may consign the thing in court.
-This article also applies to payment made by the debtor with the intention to extinguish his obligation.
•Article 1242
"Payment made in good faith to any person in possession of the credit shall release the debt"
•
Article 1243
- Payment to creditor not valid if it is payment by debtor-stranger specifically it the plaintiff wins the case it will be considered as bad faith. It is also not a valid payment if the debtor is a creditor if another.
•Article 1244
In this article the general rule is that the creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid.
•Article 1245
-article 1245 is very important provsion of law.
- Dation means that a special form of payment due to the fact that it is not an ordinary form of payment.
Dation in payment A conveyance of ownership of a thing as an accepted equivalent.
-Dation in payment occur when the property is alienated to the creditor in satisfaction of his debt.
•Article 1246
This article pertains to the quality of the thing to be delivered. It focuses on the right value of amount delivered in accordance to intention and payment.
•Artcile 1247
This article is about that the debtor will have to pay for the expenses out of court which is required when collecting the debt. However this article does not applyto expenses incurred by the creditor in going to the debtor's domicile to collect.
•Artcile 1248
This artcile only contemplated one creditor and debtor and there should be a complete performance of prestation in order for the obligation to be extinguished.
•Article 1249
This article is about the kind of currency used in terms of payment in case of the fault of the party did not agree with the currency, it is only possible to be paid in the legal tender
In the Philippines which is the Philippines peso.
•Article 1250
This article simply talks about the extraordinary inflation which means that the sudden rise of price and the deflation means that the drop of currency or the decline of general price level. It also states that in case of inflation the value of the currency must be valued at the time of the establishment of obligation.
•Article 1251
*Obligation shall be paid on
-Stipulated place
-In delivery of deteminate thing
-Delivery of generic thing domicile of debtor
Vesliños, Hannah Camille C.
1BSA-A
Pamantasan ng Cabuyao
In this chapter of Extinguishment of Obligation simply discussed the right of the creditor, debtor also the third person while performing their obligation in payment. There's a lot of requirements need to be set or acquire when payments are going to be performed. Payment is not only the delivery of money but also the performance in any other manner of an obligation. A debt may refer to an obligation to deliver money to deliver a thing. The third person has a right to accept the payment unless there is an authorized letter from legal person. The payment can refuse to accept by the creditor when the obligor is not fulfill to perform his obligation. However, the debts is admitted by the debtor or established by the evidence of the creditor the extinguishment by partner devolves upon the debtor.
In Article 1245 show the special form of paymy under the Civil Code.
Dation in Payment or also called as (dacion en pago) means the payment can accept the thing which is equivalent of the performance. Dation is a specie of sales were debts become the price of the same alienated.
Application of Payment - this will not considered as special form but it is important to be understood because it is the designation of the debts. Application of Payment made by the debtor without objection from the creditor is binding upon the latter.
Payment by Cession- means the abandonment all the properties to the debtor for the benefit of his creditor for the satisfaction of fhe credit. Debtor is liable to surrender his properties to yhey debtor for all his debts.
Tender of Payment and Consignation distinguished
Tender of Payment is the act were the payment of debtor of offering to the creditor the things amount due while consignation is an act of depositing the thing or amount with proper count.
Lorenzo, John Derrick I.
1BSA - A
Good day, Atty. Here is the summary of what I’ve learned from the video:
Article 1231, it states that commitment are quenched by installments of execution, misfortune of the thing due, condonation or abatement of the obligation , perplexity or merger of the proper of lenders and indebted person, remuneration , novation.
Article 1232, it stretch that installment implies not as it were the conveyance of cash but moreover the execution in any other way of an obligation.
Article 1233, I learned that obligation is considered paid as it were on the off chance that it is totally conveyed or rendered. Moreover, indebted person has the burden of demonstrating the extinguishment by installment.
Article 1234, it states that the obligor can still recoup installments from the obligee less harms indeed in the event that the commitment to provide is done considerably. Its vital to require that as it were on the off chance that its fair the minor part of the commitment isn't satisfied and the obligor acted in great confidence, at that point commitment will be quenched.
Article 1235, it states that the commitment is considered totally satisfied when the lender recognizes the execution in spite of its deficiency or abnormality and without complaint or resistance. On the off chance that the deformity of the execution is covered up in nature, meaning it isn't self-evident to the eye of the obligee, the article 1235 do not apply.
Article 1236, it states that the people from whom the leaser must acknowledge paymen are the indebted person, underwriter, and third individual without intrigued but stipulated within the assention.
Article 1237, it states that no one may drive a borrower to subrogate him in his rights, such as those emerging from a contract, guaranty, or punishment, in the event that they pay on sake of the indebted person without the debtor’s assent or against his will.
Article 1238, I learned that installment by a third individual who does not proposed to be repaid by the indebted person is considered to be a gift.
Article 1239, in commitments to deliver , installment made by one who does not have the free transfer of the thing due and capacity to distance it might not be substantial without bias.
Article 1240, it is about the persons from whom the payment shall be made which are the creditor/oblige, successor, and person authorized to receive it.
Article 1241, it states that 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.
Article 1242, the protection to the debtor from double payment.
Article 1243, it states that payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244, it states that the general rule in this article is that the creditor shall be paid only what has been stipulated upon.
Article 1245, it states that dation in installment is distanced to the lender in fulfillment of a obligation in cash should be represented by law of deals. Dation is considered as extraordinary frame of installment. There's dation in installment when property is estranged to the leaser in fulfillment of his obligation.
Article 1246, it emphasize that there's no stipulation between parties with respect to the conveyance of a non specific thing; at that point the indebted person must provide a thing that still fulfills the lender.
Article 1247, the Article does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect.
Article 1248, states that there ought to be a total execution of prestation for the commitment to be quenched be that as it may, the lender can acknowledge halfway installment or execution fair as to what had been talked about by past articles but the leaser cannot be compelled to acknowledge such conveyance or execution.
Berona, Kristal Mae R.
1BSA-B
Pamantasan ng Cabuyao
Good day atty. Here are my takeaways from your lecture.
In Article 1231. It states that commitment are quenched by installments of execution, misfortune of the thing due, condonation or abatement of the obligation.
In Article 1232. It stretch that installment implies not as it were the conveyance of cash.
In Article 1233. Obligation is considered paid as it were on the off chance that is totally conveyed or rendered.
In Article 1234. Obligor can still recoup installments from the obligee less harms indeed in the event that commitment to provide is done.
In Article 1235. Commitment is considered totally satisfied when the lender recognizes the execution.
In Article 1236. It states that the people from whom the leaser must acknowledge payment are the idebted person.
In Article 1237. It states that no one may drive a borrower to subrogate him in his rights, such as those emerging from a contract, guaranty, or punishment.
In Article 1238. Installment by a third individual who does not proposed to be repaid bu the indebted person is considered to be a gift.
In Article 1239. Installment made by one who does not have the free transfer of the thing due and capacity to distance it might not be substantial without bias.
In Article 1240. Persons from whom the payment shall be made which are the creditor, successor, and person authorized to receive it.
In Article 1241. Is the effects when a payment is done to a minor and a third party.
In Article 1242. Gives another instance when there is a valid payment.
In Article 1243. Payment made to the creditor by the debtor after the latter has been juridicially ordered.
In Article 1244. This refers to a real obligation to deliver a specific thing and personal obligations.
In Article 1245. This states that the four special forms of payment are dation in payment, application of payments, payment by cession and tender of payment and consignation.
In Article 1246. If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated.
In Article 1247. Judicial costs are expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation.
In Article 1248. Partial performance are allowed only when there is an express stipulation that effect when the debt is in part liquidated an in part unliquidated.
In 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 in the Philippines, the creditor must accept in payment of debt in money.
In Article 1250. The value of the currency at the time of the establishment of the obligation shall be the basis of payment.
In Article 1251. According to this article, payment shall be made in the place designated in the obligation.
That’s all thank you
Yaldua, Justine Mae B.
1BSA-A (PNC)
Good evening Atty. Here's what I have learned from this video lecture regarding the first part of the extinguishment of obligation.
Extinguishment of obligation is where the obligation is finished or being terminated. Obligations are extinguished by payment of conformance, loss of thing due, condonation or remission of debt, confusion or merger of rights of creditor and debtor, compensation, novation, and other causes such as legal and physical impossibility of fulfillment, fortuitous event, fulfillment of resolutory condition, mutual decision, death of party as it is his personal obligation and compromise or concession given by both parties.
Article 1232-1261 talks about the extinguishment of obligation when payment and/or performance is delivered. Integrity and Identity of prestation should be observed. Meaning, the agreed thing must be delivered (cannot be substituted unless if there is a consent of debtor, allowed by stipulation, and a facultative obligation) and must be complete (unless there is an express stipulation, debt is partly liquidated and partly unliquidated, and different prestation are subject to different terms which affect some of them) to be considered as paid. If it is delivered incomplete, the creditor may refuse to pay the debtor. However though there is a strict compliance to deliver the thing completely if it is substantially performed in good faith by the debtor, it is still possible that the debtor may deliver the thing without the right to damages. Also, if prestation is delivered incomplete or performed irregularly and the creditor is aware about it and then he accepts it without any disapproval, it will extinguished the obligation of debtor as he fully complied with it.
As a general rule, creditor may refuse to accept payment from 3rd person as he has no interest in the obligation unless there is a contrary to the stipulation. Yet, if the creditor accepts the payment from the 3rd person, payer has the right of reimbursement from the debtor. There are exceptions, if it is against the will of the debtor or without the consent of the debtor, the payer can recover the payment only up to the extent. If payer does not intend to reimbursed, it is still valid but not considered as a donation because it is being stated in a general rule that "No one shall be compelled to accept the generosity of another." But if it is made with the knowledge or consent of the debtor, the payer have the right to ownership and may reimburse the full payment to the original debtor-subrogation. If the payer does not intend to reimbursed, it is considered as donation and still valid to extinguish the obligation. The thing paid can be recovered as long as it is not consumable if the payment of one does not have free disposition of thing due and capacity to alienate a contract (such as minor, illiterate person) as it is considered invalid.
The payment should be made to the creditor (new creditor, if there is), his successor, any authorized person. If the payment is being made to incapacitated person or to a 3rd person, it is considered not valid unless he kept the thing paid or delivered or benefited him by the payment. If it is lost and no proof of benefit, the debtor will pay again. There are also exceptions, the proof of benefit by debtor is not needed if after payment, the 3rd person acquires the creditor's right, ratification by creditor, estoppel on part of the creditor. If the payment to 3rd person in possession on the credit itself and not on the document evidencing credit and made in good faith, it is valid and the debtor shall be release from his obligation. It is to avoid the double payment of debtor to creditor. Payment to creditor is not valid if debt is hold and creditor has pending case.
There are four special forms of payment. These are the application of payment, payment by cession, tender of payment and consignation, and dation in payment-conveyance of ownership of thing (debt is equivalent to the price of thing to be delivered) as accepted equivalent of performance. If the thing to be delivered is a generic thing, it should be of medium quality, not superior nor inferior. When it comes to extrajudicial expenses, in the rules of court, losing party generally pays for judicial costs. But it may still vary with their stipulation or if either party, it will be payed divided as equitable. If creditor is going to the debtor's domicile to collect payment, he will bear the expenses incurred alone. Legal tender and the different currency in terms of paying where the right of creditor to refuse or accept is also being discussed in this section. Mercantile document will not extinguish the obligation unless it is cashed or impaired by the fault of creditor. If inflation or deflation occur which are fortuitous event, the basis of payment should be on the purchasing value of currency must be at the time of obligation. Lastly, the venue where the payment of obligation shall be made. If there is stipulation, it must be made in designated place. If determinate thing, it must be made where thing was at the perfection of contract. If there is no stipulation and generic thing, it must be made at domicile of debtor.
Thank you Atty.
Camas, Ma. Joyce Susanfei M.
1 BSA-B
Pamantasan ng Cabuyao
Summary of my understandings from this video:
Extinguishment of obligations
General provisions
Extinguishment of obligation- it is an end to an obligation; the manners or ways by which an obligation is being ended
Obligations are extinguished through
1. Payment or performance
2. By the loss of the thing due
- if the thing is determinate and it was lost without the fault of the debtor (fortuitous event) then the obligation is extinguished
3. By the condemnation or the mission of the debt
4. By the confusion or merger of the rights of creditor and debtor
-confusion or merger of the rights of the creditor and debtor in one person
5. By compensation
-set-off
6. By novation
Other causes of extinguishment of obligations
• Annulment
• Recession
• fulfillment of a resolutory condition
• Prescription
Additional causes of extinguishment
• Fortuitous event or a loss of the thing through a fortuitous event
• Impossibility of fulfillment
Legal impossibility - prohibited by law (outlaw)
Physical impossibility - undertaking or the obligation is physically impossible or is incapable of performance through human limitations
• Resolutory condition, upon fulfillment of that resolutory condition, the obligation is extinguished - the obligation is immediately demandable and is terminated only after the happening of the or the fulfillment of the condition
• Mutual decision of the party- both parties agreed not to proceed with the contract anymore or not to fulfill their own part of the prestation it is mutually agreed upon
• Death of a party requiring personal services- if the prestation is a personal obligation and the obligor dies -the personal qualifications or the qualities personal to a person was taken into consideration upon the establishment of the contract
• Compromise - the concessions given by both parties
Section 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
Ordinary parlance - payment means delivery of money
Legal parlance- payment means delivery of money or the giving of a thing the doing of an act or not doing of an act
Article 12 33
A debt shall not be understood to have been paid unless the thing or service in which the obligation consists of has been completely delivered or rendered as the case may be
Concept of
1. Integrity of prestation
2. Identity of the payment-
Presentation of receipt is a decent confirmation of payment- debtor can request a receipt from the creditor once his obligation is paid
Article 1234
If the obligation has been substantially performed in good faith the obligor may recover as though there had been a strict and
Complete fulfillment less damages suffered by the obligee
The requisites
1. Substantial performance
o Essential or important part of contract have been performed while the minor details are not performed
o Doctrine of substantial performance
2. Obligor must be in good faith
o There is absence of bad faith or that there is honesty there is sincerity on the part of the obligor
o Good faith is presumed in the absence of proof to the contrary
It is the burden of another to prove that performance was done in bad faith
Requisites
Article 1235
1. The obligee knows the incompleteness or irregularity of performance - otherwise if the oblige is unaware of the incompleteness or irregularity then 1235 will not apply
2. Accept the performance without expressing a protest or an objection
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
Persons whom the creditor must accept payment
1. Debtor
2. Guarantor
3. Third person who has no interest in the obligation- other than the contracting parties -has no interest in the fulfillment of the obligation -not a guarantor
Effect of payment of a third person
o If made without the knowledge or against the will of the debtor - payer can recover insofar as the payment has been beneficial to the latter
(recovery only up to the extent/ amount of the debt at the time of payment)
o If made with the knowledge of the debtor- payer shall have the rights of reimbursement and subrogation
Recover what he has paid
Subrogation - the third person will acquire all the rights of the creditor that paying third person will step into the shoes of the creditor and he now assumes the rights of the creditor and he can now demand for reimbursement
Article 1237
Whoever pays on behalf of the debtor without the knowledge or against the will of the letter cannot compel the creditor to subrogate him in his rights such as those arising from mortgage guarantee or penalty
Third party subrogation rights
-whoever pays on behalf of the debtor with consent is entitled to subrogation if there is no consent from the debtor, then the third person cannot compel the creditor to subrogate him in his rights such as those arising from mortgage guarantee or penalty
1238
Payment made by a third person and does not intend to be reimbursed by the debtor is deemed to be a donation which requires debtor’s consent. But the payment is in any case valid as to the creditor who has accepted it
-does not seek reimbursement from the debtor, does not want to be paid back by the debtor
Donation in a contract of donation- the civil code requires acceptance by the debtor -without acceptance there can be no contract of donation
12 39
Free disposal of the same
-the thing to be delivered must not be subject to any claim of third persons - not claiming any right or interest over the property
Capacity to alienate
-the person is not incapacitated to enter into a contract - fitness to enter into a contract
Subrogation
- person who pays for the d is put into the shoes of the c
Payor acquires
• the right to be reimbursed for he has paid.
• all other rights w/c the creditor could have exercised
No real extinction of the obligation but only change of creditor
Reimbursement
Third person entitle by reason of payment has merely the bare right to be refunded
Without the right to the guarantees and securities of the original obligation
Only refund
A minor has no power or has no capacity to alienate a property
Article 1240
Payment made to the person in his favor the obligation has been constituted or his successor in interest or any person authorized to receive it
Persons from whom the payment shall be made the
1. Creditor or obligee
2. Successor
3. The person authorized
Article 1241
Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered or in so far as the payment has been beneficial to him
Benefit to the creditor does not need to be proven
1. If after the payment, the third person acquires the creditors rights
If the third person acquires the creditors right because there is a merger between the third person and the creditor
2. If the creditor ratifies payment to the third person (ratification- if after payment, creditors discover the payment, and he agrees or he consented or he approves the payment made 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 payment
The debtor was made to believe that this third person had the authority to receive the payment
The effects of payment to an incapacitated person
-it is valid unless the thing is kept or benefited by the payment
-can pay to the guardian
-absence of benefit can result to the obligation not having extinguished and pay again
Article 1242
Payment made in good faith to any person in possession of the credit shall release the debtor
Protect the debtor from being required to double payment to the creditor
1243
Payment made to the creditor by the debtor after the latter has been judicially ordered to obtain the debt shall not be valid
12 44
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
In obligations to do or not to do an act / forbearance cannot be substituted by another or forbearance against the obligee's will
The obligor is bound to perform the very prestation due and that must be complied with and that the creditor or obligee may not be compelled to receive something which has not been agreed upon
Castillo, Rikka Marie B.
1BSA-A
PNC
Chapter 4 - Extinguishment of Obligation
Article 1231 - This article includes the ways the obligation is extinguished and those are by payment or performance, by the loss of the thing due, by the condonation or remission of the debt, by confusion or merger of the rights of the creditor and debtor, by compensation, by novation and by other causes of extinguishment of obligation.
Section 1 - Payment or Performance
Article 1232 - Payment does not mean the delivery of money but it can also be giving a thing, doing or not doing of the obligation.
Article 1233 - This article is about when the debt will be considered paid.
Integrity of Prestation - the performance of the obligation must be done in full.
Identity of Prestation - the object that was agreed by the parties must be the one delivered.
Article 1234 - This article is an exception to Article 1233 where the law accepts a substantial performance of the obligor.
Requisites of Article 1234
1. There must be a substantial performance of the obligation
2. Obligor must be in good faith.
Article 1235 - This article is about the extinguishment of the obligation where in the obligee accepts the performance of the obligation even if it is done incomplete and irregular by the obligor.
Requisites of Article 1235
1. The obligee knows that the incompleteness or irregularity of performance
2. He Accepts the performance without expressing objection.
Article 1236 - This article talks about the persons whom the creditor can accept payments for the obligation.
The person who can make the payment:
1. The Debtor
2. The any who has interest in the obligation
3. Third person without interest in the obligation but with stipulation that he can make the payment.
Article 1237 - This article talks about the rights of the third party to subrogation. If the payment is paid by the third party but the debtor has no knowledge about the payment, the third person cannot acquire the rights of the creditor to subrogation arising from mortgage, guaranty, or penalty.
Article 1238 - This article is about the third party making a payment to creditor without the intention of reimbursement is considered as a donation that is consented by the debtor.
Article 1240 - This article is about the persons who can accept the payment.
Persons from whom the payment shall be made
1. Creditor/ oblige
2. Successor
3. Person authorized to receive the payment
Article 1241 - This article is about the payment that has been made to an incapacitated or to third person. The payment made to an incapacitated person shall be valid if the person kept the thing delivered or the payment has been beneficial to him. Payment made to a third person shall be valid if it has benefited the creditor.
Article 1242 - Payment made in good faith shall release the debtor to the obligation.
Article 1244 - The debtor must deliver the very thing that has been agreed by both parties and the creditor must not accept if the thing delivered is not the thing that they have agreed upon.
Article 1245 - This article is about Dation in payment. This form of payment is one of the special forms of payment where in the payment is not money but a property of the debtor that has the equivalent value as the debt.
Article 1246 - This article states the quality of the thing to be delivered. The debtor must not deliver an inferior quality thing and the creditor must not demand a superior quality.
Article 1247 - This article is about the extrajudicial expenses that is paid at the expense of the debtor.
Article 1248 - Complete performance of the obligation shall extinguish the obligation.
Partial performance is allowed if:
1. It is expressly stipulated
2. The debt is liquidated and unliquidated
3. The prestation of the obligation have different terms and conditions.
Article 1249 - This article is about which currency the payment shall be made. The payment of the debt shall be made as the same currency stipulated in the agreement. If both parties did not agree upon which currency that payment shall be made, it can be paid in a legal tender in the Philippines.
Legal tender - currency which is offered by the debtor in the right amount.
Article 1250 - This talk about the inflation or deflation of currency. The payment shall be in the value at the time of the establishment of obligation.
Article 1251 - The payment shall be made at the designated place in obligation.
Thank You for the video Atty!
RAFLORES, Kate Alison P.
1BSA-B
Good Day, Atty! These are what I learned from the lesson.
Article 1231 states that obligations are extinguished by payment or performance while 1232 talks about payment and performance. 1233 enumerates the concepts of payment: integrity of prestation which means if the delivery is incomplete, they can refuse to pay and identity of prestation which means what has been agreed upon should be the thing delivered.
In 1234, the obligation should be strictly complied with. It's requisites are substantial performance, obligor must be in good faith, presumed in the absence of proof contrary.
In 1235, if the obligee accepts an incomplete delivery, it is deemed complete but only if the obligee is aware that it is incomplete and has no protest.
In 1236, creditor is not bound to accept 3rd party payment unless there is a stipulation and 1237 talks about the subrogation rights of the third party.
In connection to those two previous articles, 1238 states that if the third party does not want reimbursement, then it is a donation.
1239 talks about how a payment is not valid if it has no free disposal while 1240 talks about how only the creditor, a successor or someone stated in the stipulation can accept payment.
1241 states that payment to incapacitated person is valid if it is beneficial to him and 1242 states that payment in good faith releases the debtor.
1243 states that payment to creditor after debtor has been judicially ordered to retain debt is invalid while 1244 states that obligor is bond to perform the prestation due.
1245 talks about the dation in payment, application of payment, payment by cession, and tender of payment and consignation.
1246 states that creditor cannot demand a superior quality if there is no stated quality for the indeterminate thing while 1247 states that extrajudicial expenses are paid by the debtor unless stated otherwise.
Article 1248 states that the creditor cannot be compelled to receive prestation.
1249 talks about the currency used in payment of debts should be what was stipulated but in the case of there being no currency stipulated, it should be a currency that is legal to tender in the Philippines.
In connection to the previous article, 1250 states that the value of currency that should be followed during payment is the value during the making of the obligation unless stated otherwise.
Lastly, 1251 states that payment shall be made in the place designated in the obligation.
Thank You for the Lesson, Atty.
Lozada, Isabel I.
1 BSA-A
Here is my takeaway about the Extinguishment of Obligations:
Chapter 4 talks about different modes of extinguishment of obligations. Initially, the video started explaining the common ways on how an obligations cease such as by payment or performance, by the loss of the agreed prestation, and such. In addition, it was mentioned that other than those; fortuitous event, physical and legal impossibility, resolutory, mutual agreement of the contracting parties, death by one of the parties where his duty is to serve personal services, and compromise also causes an obligation to extinguished. The first mode of extinguishment of an obligation is the payment or performance, and the first article under it was the Article 1232. In article 1232, it explains that payment can be through delivery of money and also it can be accompanied by giving, doing, or not doing. The concepts of payment, integrity and identity of prestation, were tackled under the under 1233. Integrity of prestation means that the delivery of a thing must be completely rendered so it can be considered as fully paid; also, in identity of the prestation, it tells that the thing agreed of both parties must be delivered, otherwise, it cannot be considered as paid. In Article 1234, if a person acted in good faith and there is an substantial performance, even though the performance is incomplete, the obligation is deemed fulfilled as well. Article 1235 talks about the creditor who accepts the performance despite knowing that it is incomplete, then the obligation is also considered fulfilled. The creditor must also accept payment to the debtor, guarantor, and to the person that was authorized by both of the parties; additionally, the third party can only reimburse the amount he paid to the creditor if the debtor is aware of it-otherwise, the third party can only receive to what is beneficial to the debtor (Article 1236). Article 1237 gives enlightenment about the subrogation or acquiring the rights of the creditor; it states that if only the debtor has knowledge about the third party’s payment to the creditor, then the latter is entitled to subrogation, but he is not, then he cannot compel. If the third party pays without seeking reimbursement to the debtor (and debtor agrees to it), then the law says that it will be considered as a donation. Article 1239 states that payment is invalid if the third party really has no right or possession of the thing, or if the person has no capacity to enter a contract legally. Next is Article 1240, it explains that the debtor can only give or deliver payment to creditor, successor, or to the person who the creditor appoints to receive it. Article 1241 talks about the extinguishment to the obligation of the debtor, but if the creditor has no capacity to accept the payment, the he must seek help to a guardian so he can acquire the payment. Otherwise, the debtor may go to court and ask for consignation so he can extinguish his obligation. In article 1242, if the debtor performs payment in good faith to someone who is not the creditor or who is not authorized by the creditor, the law says that the debtor must be released to his obligation. Article 1243 states the payment of the debtor becomes invalid if the court orders him not to pay the creditor for the meantime. Article 1244 states that prestation that both parties agreed must be the only thing to be fulfilled; unless stipulated by the creditor. Article 1245, it talks the special form of payment which is the dation in payment which means that it not the common way to cease an obligation. Article 1246 states that if there is no stipulation between parties regarding the delivery of a generic thing; then the debtor must deliver a thing that still satisfies the creditor. In Article 1247 it is presumed that the debtor is required for the extrajudicial expenses unless there is a stipulation. Article 1248 does not apply to obligation wherein there are numerous parties (creditors and debtors). It talks about the performance must be complete in order for the obligation to be extinguished, but partial performance is also considered as long as it is stipulated. Article 1249 also gives enlightenment about the limitations in amounts to be considered legal tender: One peso must not exceed to one thousand peso and twenty five centavos or less must now exceed to one hundred pesos. The obligation that was established before any inflation of deflation in the currency must not change (Article 1250). Lastly, the law states that an obligation shall be paid on the place agreed by the parties or in the place where the delivery of a generic thing was made.
Thank you so much, Atty. Reyes!
Gento, Janella Ann M.
1 BSA-B
Pamantasan ng Cabuyao
Here are my takeways from this lecture.
Obligations are extinguished by payment or performance, by the condonation or remission of the debt, by loss of the thing due, by confusion or merger of the rights of creditor and debtor, by compensation and by novation. There are also other causes of how obligation will be extinguished; by annulment, by recession, by fulfillment of resolutory condition, prescription, and through fortuitous event, impossibility of fulfillment, arrival of resolutory period, mutual decision of the party, death of the party requiring personal services and compromise.
Article 1232 is about payment means not only the delivery of money but also the performance. In ordinary parlance it means delivery of money and in legal mode is the delivery of money, giving a thing other than money, doing an act, not doing an act
Article 1233 is the general rule that debt will be understood extinguished when the thing or service has been completely delivered or rendered. There are prestation for a debt be extinguished; the Integrity of Prestation and Identity of Prestation.
Article 1234 is an exception of the general rule from Article1233 and the obligation must be substantially performed in good faith for it to be considered fulfilled even though it is not completely done. The requisite are the obligation is substantially performed and the obligor must be in good faith.
Article 1235 is about obligation is deemed fully complied with knowing its incompleteness or irregularity because the creditor accepts the performance without expressing any protest or objection. Requisites are the obligee knows the incompleteness or irregularity of performance and accept the performance without expressing a protest or object.
Article 1236 is about the creditor is not bound to accept payment of performance by a third person who has no interest in the fulfillment unless there is a stipulation. The 2nd paragraph says 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, and he can recover only insofar as the payment has been beneficial to the debtor. If the payment by a third person is made with knowledge of the debtor, he shall have rights of reimbursement and subrogation of amount and acquires all the rights of the creditor.
Article 1238 is about payment by a third person who does not intend to be reimbursed by the debtor and it is considered a donation which requires the debtor’s consent but the payment is in any case valid as to the creditor who has accepted it.
Article 1239 is about obligation to give and the payment is made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid. Free disposal of the thing due means that thing to be delivered must not subject to any claim and capacity to alienate means the person is not incapacitated to enter into contracts.
Article 1240 is about who the debtor shall make the payment.
Article 1241 is about payment of the debtor to a person who is incapacitated shall be valid if that person has kept the thing delivered, or insofar as the payment has been beneficial to him. Payment to a third person is valid if it has redounded to the benefit of the creditor.
Article 1242 this law intended to protect the debtor from being required to double the payment to creditor.
Article 1244 says that the very prestation due must be complied with.
Article 1245 it state dation in payment is alienated to the creditor in satisfaction of a debt in money shall be governed by law of sales. Dation is considered as special form of payment. There is dation in payment when property is alienated to the creditor in satisfaction of his debt.
Article 1246 says 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 and neither can the debtor deliver a thing of inferior quality.
Article 1248 is the extrajudicial expenses required by the payment shall be for the account of the debtor. Obligation is extinguished when payment is made so debtor is the primary beneficial. If there is stipulation, it must be followed. Does not apply to expenses by the creditor
Thank you for the lectures, Atty.
Mahilum, Alexis Joy B.
1BSA-A
Pamantasan ng Cabuyao
Good day, Attorney! Here are my key takeaways from the video.
The chapter 4, which is the extinguishment of obligations, discusses about the manners or ways an obligation is extinguished. According to Article 1231, obligations can be extinguished by payment or performance, by the less of the thing due, by the condonation or remission of the debt, by the confusion or merger of the rights of creditor and debtor, by compensation, and by novation. Aside from these, there are additional causes of extinguishments such as fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise.
The first section of the extinguishment of obligations is the payment or performance.
Article 1232 discusses about the payment in legal mode wherein payment is not only the delivery of money but also the performance of an obligation.
Article 1233 discusses about the concepts of payment, the Integrity of Prestation and the Identity of Prestation. In Integrity of Prestation, there should be a full performance of the obligation and the complete delivery of a thing, whereas, if the thing to be delivered is not the thing or the thing that has been delivered is incomplete, he can refuse to pay. In Identity of Prestation, the very and agreed prestation must be delivered. Presentation of receipt is a decent confirmation of payment.
Article 1234 is an exception to Article 1233 wherein Article 1234 allows the substantial performance of the obligation which is contrary to the full performance stated in Article 1233. These means, although the performance is incomplete, is still acceptable and will considered fulfilled, only compensation about breach of obligation must be paid. The requisites are that there should be a substantial performance and that the obligor must be in good faith.
Under Article 1235, if the obligee accepts the performance without expressing any protest or object, while being aware of the incompleteness and irregularity of the performance, the obligation is deemed fully complied with.
According to Article 1236, the creditor cannot accept payment from a third party who has no interest in the fulfillment of an obligation unless there is an agreement between the parties. If a third party pays for the debtor, he may acquire a right to demand from the debtor the amount he has paid. If made without the knowledge or against the will of the debtor, payor can recover only the payment beneficial to latter, however, if made with knowledge of the debtor, the third person shall have the rights of reimbursement and the rights of subrogation or acquiring all the rights of the creditor. The persons from whom the creditor must accept payment are debtor, guarantor, and a third person without interest but with stipulation he is capable.
Article 1237 provides for the third party’s subrogation rights wherein whoever pays on behalf of the debtor with a consent from him is entitled to subrogation. If there is no consent, the third person cannot compel for the subrogation.
Under Article 1238, if the third party does not intend to reimbursed by the debtor the payment he has made, it is considered to be a donation, which requires consent of the debtor.
According to Article 1239, in obligation 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.
According to Article 1240, the payment shall be made to the creditor or obligee, his successor, and the person authorized to received it.
Article 1241 discusses about the validity and effects of the payment done to a minor and a third person. This article applies to payments made by the debtor with the intention of extinguish his obligation.
According to Article 1242, payment made in good faith to any person in possession of the credit shall release the debtor. This intends to protect the debtor from the double payment to creditor.
Under 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.
In Article 1244, very prestation due must be complied with, wherein, with the consent of the creditor, real obligation can be offered and personal obligation can be substituted.
Article 1245 states about the special form of payment. These are dation in payment, application of payment, payment by cession, and tender of payment and consignation. Dation in payment is the conveyance of ownership of a thing as an accepted equivalent of payment wherein instead of payment of money, the debtor will convey ownership over a property in favor of the creditor.
Article 1246 discusses about the quality of the thing to be delivered. It is stated in the article that the creditor cannot demand a thing of superior quality, neither can the debtor deliver a thing of inferior quality.
According to Article 1247, the extrajudicial expenses required by the payment shall be paid by the debtor.
Article 1248 contemplates obligation with only one creditor and one debtor. For the extinguishment of obligation, there should be a complete performance of prestation, wherein, the creditor can accept partial performance which is done voluntarily and the debtor’s compliance is required but the partial fulfillment is not.
Article 1249 discusses that the payment of debts in money shall be made in the currency stipulated. In legal tender, the creditor cannot refuse to accept the currency offered or the payment by the debtor.
According to Article 1250, in case extraordinary inflation or deflation of the currency supervenes, the value of the currency at the time of the establishment of the obligation shall be the basis of payment.
According to article 1251, obligations shall be paid on the stipulated place and on the place where the delivery of the thing was constituted.
Lucaba, Glenda Angela N.
1BSA-A
Good day Atty. Listed below are my important takeways from this video.
Extinguishment of Obligation
ART. 1231 - In any fulfillment, agreement or even because of a fortuitous event, an obligation will, and can be extinguished. The circumstances and obligations that had brought the parties into a commitment will be extinguished because there are qualifications that dictates whether an obligation is finally over and not just by deciding personally,
ART. 1232 - In any type of obligation to be fulfilled, payment does not always pertain to monetary value but also to the actions to be performed and not to be performed for the accomplishment of the debt.
ART. 1233 - The payment of a debt will just be considered paid if there is a complete delivery or fulfillment of the obligation where partial deliveries will not be enough and the specific prestation agreed upon should be the only one to take place.
ART. 1234 - The obligor can still recover payments from the obligee less damages even if the obligation to deliver is done substantially. Its important to take that only if its just the minor part of the obligation is not fulfilled and the obligor acted in good faith, then obligation will be extinguished.
ART. 1235 - In an obligation where the obligee is fully aware of the incompleteness of compliance of the obligor but still accepts it and did not make any complaints, the obligation can be considered a regular obligation and officially complied with.
ART. 1236 - The obligor, in the exercise of his rights cannot be compelled to accept payments from a third person unless there has been a stipulation and can deny payments who he thinks is not credible. He should only accept payments from the debtor itself, a person interested in the obligation and a third person which is stipulated that he can make payments. On the other hand, a third person who makes payment for the debtor can demand what he has been paid only if it is on the will of the debtor and if not, then he has no rights.
ART. 1237 - A third party who paid in lieu of the debtor with his knowledge is entitle for subrogation or can be put in the position of a creditor as subrogation can only take place through consent. In contrary if the payment is made without the knowledge of the debtor then he cannot compel the creditor for subrogation, only for reimbursement but up to the extent that the debtor has only been benefited.
ART. 1238 - The law considers a payment as a donation if a third person paid in behalf of a debtor with his consent, without the goal of being reimbursed. In addition, even in the consent or without consent of the debtor, the creditor can accept the payment and its validity.
ART. 1239 - If a debtor who is entitled to pay has no free disposal of the thing due and capacity to alienate, makes a payment, it cannot be considered valid and specially if the person is a minor.
ART. 1240 - It identifies where payments shall be made which is constituted from the obligation, it is none other than these three classifications which are the creditor, its successor and lastly, any person authorized to receive the payment.
ART. 1241 - In a situation where the creditor so happens to be an incapacitated person, the payment will be considered valid depending on its benefits from the delivery. As payments to a third person, it shall be valid if it benefit the creditor without having to prove it at once.
ART. 1242 - Payments of a debtor should be characterized by good faith and notes aren't valid in demanding payments if a third person do not accumulate the specific credit itself.
ART. 1243 - Payments are deemed not to be valid if the case is still on process because this article avoids demand of payment when there is no legal right unless there has been an order that gives right to the creditor to collect for the the fulfillment of a debt.
ART. 1244 - The specific obligation or performance that is agreed upon by the parties shall be complied with and should not be changed and compel the creditor to accept it against its will.
Claris M paligar
1BSA-A
Here are the summary of this topic
Article 1232. Payment means not only the delivery of money but also the performance, in any other manner, of an obligation. (n)
Article 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. (1157)
Article 1234. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. (n)
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. (n)
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.
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. (1158a)
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. (1159a)
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. (n)
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." (1160a)
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. (1162a)
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.
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. (1163a)
Article 1242. Payment made in good faith to any person in possession of the credit shall release the debtor. (1164)
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. (1165)
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.
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. (1166a)
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. (n)
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. (1167a)
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. (1168a)
Article 1248. Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.
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. (1169a)
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.
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. (1170)
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. (n)
Article 1251. Payment shall be made in the place designated in the obligation.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. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him. These provisions are without prejudice to venue under the Rules of Court. (1171a)
Abion, Francine Joyce P.
1BSA-B
Pamantasan ng Cabuyao
Good day, Atty. Here are my takeaways from the video discussion. Which deals with the termination of an obligation and the methods by which it has to end.
In addition to the reasons of extinguishment mentioned in Article 1231, the obligation shall terminate if the item has lost due to a fortuitous event, then if it is impossible to fulfill, resolutory, or immediately demandable, also if the decision is mutual, and the obligor dies in a personal obligation.
Article 1232 discusses payment and performance, which refers to the fulfillment of the prestations to give.
Article 1233 gives the concepts of payment: first is the integrity of prestation which means the delivery must be complete. Then, the identity of prestation means the agreed prestation must be delivered.
The obligation is strictly complied with per what the parties have agreed. It allows the obligor from damages through substantial performance in good faith. Article 1234 is an exception to Article 1233 because Article 1233 compels the complete fulfillment, but Article 1234 allows an incomplete completion of the obligor once there is a substantial performance and must be in good faith.
According to Article 1235, the performance shall be complied with if the obligee acknowledges the execution of the obligation even if he knew that it is incomplete. It will apply once if the obligee knows the incompleteness and he doesn't protest.
Article 1236 is the related Article to who can pay for the payment or performance in Article 1232. The payment by a third party or someone other than the contracting parties is not acceptable because the 3rd person is not interested in the performance of the obligation only if there is a stipulation or contract. If there is payment done, there will be reimbursement.
The right of the debtor is the focus of Article 1237. It talks about the subrogation right of the 3rd person who pays on behalf of the debtor.
The payment made by a 3rd person who does not intend to get reimbursed is considered a donation under Article 1238. Once the creditor accepted the payment, it shall acknowledge as a valid payment.
Article 1239 talks about the persons whose payment cannot be accepted. It tells that a minor is not fit to enter or alienate property because once a minor enters into a contract, the contract is voidable.
Unlike the previous articles, Article 1240 talks about the persons who have the right to receive the payment.
Once the obligee or the creditor is incapacitated or a minor, the validity of payment he shall receive depends on if it has conditions (Article 1241). The payment to him is conditional if the minor, by which is a creditor, kept the thing or the payment is beneficial to him.
Article 1242 intends the protection to the debtor from double payment.
Article 1243 talks about the payment made after the judicial to retain the debt when the debtor is also a creditor of another. Any payment of the debtor to the creditor is not valid during the pendency of the court's decision.
Article 1244 discusses that the exact prestation must be complied with to extinguish the obligation. The creditor cannot accept different objects even the objects are more valuable than the original.
Dation in payment is a special form of payment under Article 1245 governed by the law of sales. The obligation is monetary debt, but the payment is the property, and it is a transfer of ownership.
Article 1246 pertains to the quality of the thing to be delivered. A creditor cannot ask for superior quality, and a debtor cannot compel to deliver an inferior quality.
The provisions under Article 1247 states that the debtor must pay for extrajudicial expenses unless there is a stipulation between the contracting parties.
The payment must be complete to extinguish the obligation, except if there is a stipulation and the debt is liquidated/unliquidated, partial fulfillment is valid (Article 1248).
Article 1249 is all about the currency that shall be the basis of the payment. The creditor cannot refuse to accept the currency if it is out of the legal tender. Promissory notes and checks are not legal tenders, and creditors can refuse them.
When the value of a currency drops or rises suddenly, the payment or value of the currency is only applicable or valid from the moment the obligation have established (Article 1250).
Article 1251 talks about the place where the obligation shall be paid.
Thank you for the video lecture, Sir. May God bless you.
Roble, Ramilyn M.
1BSA-A (PNC)
Good day, Sir. Here is the summary of my learnings from your video lecture about Extinguishment of Obligation Section 1.
Article 1231
• states that obligations are 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 right of the creditor and debtor, (5) by compensation, or (6) by novation.
• Causes such as a fortuitous event, the impossibility of fulfilling the obligation, resolutory, the mutual decision of the party, and death of a party can also extinguish the obligation.
Article 1232
•This article is about the extinguishment of obligation in payment wherein the payment was not only about the delivery of money but also performance.
Article 1233
•This article tackles the concept of payment in which the debt is paid if it is completely delivered and if the agreed prestation is the one that has been delivered to the creditor.
Article 1234
•This speaks about the exception in Article 1233, wherein this article says that even the performance is incomplete but there is substantial performance and the obligor is acted within good faith then the obligation is considered fulfilled.
Article 1235
•This is about the performance being fully fulfilled even if there is incompleteness and irregularity, as long as the obligee accepts it without expressing any objection.
•There are two kinds of payment; regular payment which is the compliance with what is stipulated and irregular payment which is incomplete to what is stipulated.
Article 1236
•This article states that the creditor should not accept what the third party pays in substitute to the debtor unless the creditor and debtor have a mutual agreement that the creditor should accept it. Then the third party who pays to the creditor has the right to reimburse the payment to the debtor if the debtor knows about it and if it but not against his will.
Article 1237
•States that the third party pays on behalf of the debtor without his knowledge or against his will are not entitled to compel the creditor to subrogate him in his rights.
Article 1238
•This article talks about the donation of the third person who pays on behalf of the debtor which means he has no intention to be reimbursed, but this needs to know by the debtor and agree with the giving of payment as a donation to him. Even though the debtor does not give his consent, the payment is still valid on the part of the creditor.
Article 1239
•This states that the payment shall not be valid if it is made by one who has no free disposal of the thing due and has the capacity to alienate a contract, which means that the thing to be delivered should not be claimed by a third person.
Article 1240
•This talks about the persons who have the rights to accept payment and it states that these are the creditor, successor, and the person authorize to receive it.
Article 1241
•This states that payment of an incapacitated person is valid as long as it benefited him. Also, the payment given to a third person is valid if it benefited the creditor.
•Such benefit to be proved in the following cases: (1)If after the payment, the third person acquires the creditor's right; (2) If the creditor ratifies the payment to the third person, and (3) If the creditor said to the debtor that the third person has the authority to receive the payment.
Article 1242
•This article talks about the debtor being released to obligation when the payment was made in good faith to the creditor. This intends to not double the payment of the debtor.
Article 1243
•This article tackles the invalidity of payment by the debtor if the creditor was judicially ordered that the payment should be retained and this was only applicable to debt or credits not to property.
Article 1244
•This article states that the thing to be received by the creditor shall not substitute unless there is an agreement.
•It is also about the personal obligation in which the debtor cannot substitute the agreement without the creditor's will.
Article 1245
•This article states that payment is not only with money but by the alienation of property; this simply explains the meaning of dation in payment being one of the special forms of payment.
•The dation in payment was governed by the law of sales when debt becomes the price of the thing alienated.
•Other special forms of payment are the application of payment, payment by cession, and tender of payment and consignation.
Article 1246
•This article is about the quality of an indeterminate or generic thing to be delivered to the creditor which he has no right to demand superior quality neither the debtor cannot deliver and inferior quality.
Article 1247
•This states that the extrajudicial expenses when delivering a thing or performance which shall be on the account of the debtor unless it is otherwise stipulated by the parties that the creditor should be shouldered the expenses.
Article 1248
•This article states that the debtor cannot compel the creditor to partially receive the prestation, as well as the debtor, cannot make a partial payment unless stipulated by the parties. However, when the debt is half liquidated and half unliquidated, the creditor can demand the prestation, and the debtor may effect the payment without waiting on the liquidation of the latter.
•Partial performance is allowed only if there is an express stipulation, the debt is liquidated and unliquidated, and when the prestations has different terms or condition which affect the other prestation.
Article 1249
•This article talks about the currency to be used in terms of payment. If the currency to be used is not possible, then the currency to be used is the legal tender in the Philippines.
•Legal tender is the currency that is offered by the debtor in the right amount and the creditor must accept it in payment for the debt in money.
•Payment means of instrument of credits; (1) negotiable instruments like checks, promissory notes payable to the which may be refused by the creditor, and (2) payment using mercantile documents does not extinguish the obligation.
Article 1250
•This article is about the extraordinary inflation and deflation of the currency that was agreed upon by the parties which supervene the value of the currency.
•Inflation is the sudden increase of money or credit or both without a corresponding increase in the business transaction while deflation means the reduction in volume and circulation of the available money or credit.
Article 1251
• This speaks about the place wherein the obligation should be paid
• If there is no stipulated place, the payment shall happen in the place of the debtor. And if the debtor changes his place having a bad intention which constitutes a delay then the creditor has the right to add expenses that should be paid by the debtor.
• Note that the provisions are without prejudice to venue under the rules of court.
Thank you po, Atty. for this video lecture.
Galang, Leigh Nicole S.
Pamantasan ng Cabuyao
1 BSA - A
This is my takeaways on the Extinguishment of Obligation:
Start of the Extinguishment of Obligation
Payment or Performance . Payment means not only the delivery of money but also the performance, in any other manner, of an obligation. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. If the obligation has been substantially performed in good faith, . the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
Middle of the Extinguishment of Obligation
Loss of the Thing Due . An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay. 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. In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation.
End of the Extinguishment of Obligation
(1) When a creditor pays another creditor who is preferred, even without the debtor’s knowledge; . (2) When a third person, not interested in the obligation, pays with the express or tacit approval of the debtor; . (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. 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. 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.
Marjes, Kimberly Yrah R.
1BSA-B
Good day Atty. Reyes, here are my learnings from the video lecture. Extinguishment of obligation are the manner or ways by which an obligation is being terminated wherein Art. 1231 implies that it can be extinguished by payment or performance, by loss of the thing due, by the condonation or remission of the debt, by compensation and by novation. Aside from this an obligation may also be terminated by fortuitous event, impossibility of fulfilment and fulfilment of resolutory. Also if both parties agreed not to precede with contract anymore or by a death of one party requiring personal services or by compromise. As payment or performance is the first mode of extinguishment of an obligation Art. 1232 implies that the payment not only means the delivery of the thing but also the performance of the obligation itself. However Art. 1233 states that the obligation can only rendered paid if the obligation consist has been completely delivered or rendered. This article also discuss the concepts of payments such as integrity of prestation and identity of prestation. However, Art. 1234 allows debtor to perform a substantial performance in good faith as a substitute for the strict and complete fulfillment. The said performance will only be considered fulfilled if compensation about breach of obligor must be paid. Now Art. 1235 the law compels the obligor to interpose his objection in case of incompleteness of the fulfillment otherwise having no objection and obligee intelligently accept the incomplete performance, the obligation is deemed fulfilled. Art. 1236 implies that the creditor is not bound to accept performance by the third person unless there is a contrary stipulation. However if the creditor accepts the payment without the knowledge or against the will of the debtor, he may only recover insofar as the payment has been beneficial to the debtor. Now art 1237 implies that whoever pays on behalf of the debtor with no consent can not compel the creditor to subrogate his right. However if the payment made by the third person who does not intend to be reimbursed is deemed to be a donation which also requires the debtor's consent as stated in art 1238. Now in Art. 1241, the payment to a person who is incapacitated to administer his property will be valid if he has kept the thing delivered or insofar as the payment has been beneficial to him. Also, Art. 1242 indicates that the payment made in good faith to any person in possession of the credit shall release the debtor. Moreover, in Art. 1244 clearly alludes that the debtor is bound to perform the very prestation due and that must be complied with and obligee must not be compelled to receive something that is not agreed upon. Article 1245 now conveys that the dation in payment, a special form of payment, whereby property is alienated to the creditor in satisfaction of debt i money shall be governed by the law of sales. Now article 1247, implies that the debtor have to pay for expenses out of court which is required upon collecting debt. Article 1248 contemplates that there should be complete performance of prestation for the obligation to be extinguished and creditor can accept partial performance but cannot be compelled. Additionally, Art. 1249 provide for the kind of currency which is to be used in terms of payment. Though creditor can not refuse if the payment is made in legal tender such as currency offered is in right amount. Article 1250 talks about extraordinary inflation or deflation wherein the value of currency may vary, the establishment of obligation shall be the basis of payment unless there is an agreement to the contrary. Thank you for the lecture Atty.
Taup, Ashley Nicole
1BSA-A
Pamantasan ng Cabuyao
Good day Atty. Reyes! Here is the summary of the learnings I obtained from this video lecture:
Article 1231
- states the causes of extinguishment of obligations, including the death of a party where obligation requires personal service, and mutual desistance or desistance.
Article 1232
- gives a comprehensive meaning of payment. It states that payment doesn't just mean delivery of money, but can also mean the complete performance of the obligation.
Article 1233
- is a general rule and speaks when debt is considered paid. Its two requisites are Integrity of prestation and Identity of prestation.
Article 1234
- is the first exception in the general rule, where if there is substantial compliance in good faith, the law considers it paid.
Article 1235
- states the recovery allowed when the obligee is aware of the incompleteness without expressing any protest or objection.
Article 1236
- speaks the persons from whom the creditor must accept payment. It can be from the debtor, a guarantor, or a third person who has no interest in the obligation when there is a stipulation that he can make payment.
Article 1237
- states that a third person who pays without the knowledge of the debtor cannot compel the creditor to subrogate him in his rights.
Article 1238
- states that payment made by the third person who does not intend to be reimbursed requires the debtor's consent. If consent is absent, payment is still valid and obligation is deemed extinguished.
Article 1239
- states that the thing must not be subject to lien or encumbrance and the person is not incapacitated to enter into contracts for the payment to considered valid.
Article 1240
- says that payment shall be made to the creditor, successor in interest, or any person authorized to receive it.
Article 1241
- refers to the effect of payment to an incapacitated person.It says that payment is not valid made to an incapacitated person unless he kept the thing delivered. It shall also be valid if the payment has been beneficial to him.
Article 1242
- gives another instance where payment to a third person is valid. It states that the mere possession of the document or instrument evidencing the credit does not entitle the holder to payment nor does payment release the debtor.
Article 1243
- states the payment is not valid when the debtor has been judicially ordered to retain the payment to creditor.
Article 1244
- speaks that the very prestation must be delivered. Substitution is only allowed when the obligee consents.
Article 1245
- states the meaning of dation in payment, the conveyance of ownership of a thing as an accepted equivalent of performance. It is a special form of payment because it is not an ordinary way of extinguishing an obligation.
Article 1246
- states that if the thing is a generic thing, the creditor cannot demand a thing of superior quality, and neither the debtor deliver an inferior quality.
Article 1247
- states that the debtor pays for the extrajudicial expenses because when the obligation is extinguished, the debtor is primarily benefited.
Article 1248
- states that the performance of the must be complete. Partial performance is allowed unless there is an express stipulation, when the debt is in part liquidated and in part unliquidated, or when the different prestations in which the obligation consists are subject to different terms or conditions.
Article 1249
- speaks that payment of debt in money shall be made in the currency stipulated. If it is not possible, the payment shall be made in the currency which is the legal tender in the Philippines.
Article 1250
- States that the purchasing value of the currency at the time of the establishment of the obligation shall be the basis of the payment, in case of any extraordinary increase or decrease in the purchasing power of the currency. It does not apply where the obligation to pay arises from a source independent of contract or agreement.
Article 1251
- Gives the rules regarding the place for the payment of an obligation without the prejudice to venue under the Rules of Court. If there is no stipulation and the thing to be delivered is generic, the place of payment shall be the domicile of the debtor.
Have a blessed day Atty! Thank you!
Galuz, Lotus Anne A.
1BSA - A
Video lecture of Chapter 4 Extinguishment of Obligations
Article 1231 states that obligations are extinguished by payment or performance, by the loss of the thing due, and by the condonation or remission of the debt.
Article 1232, talks about the meaning of payment which refers to the fulfillment of prestation, delivery of money and giving a specific thing.
Article 1233 about the first one is Integrity of Prestation which is the full performance of the obligation. In Identity of Prestation, the very and agreed prestation must be delivered. Prestation of receipt is a decent confirmation of payment.
Article 1234. If the obligation has been performed in compliance with the stipulation or in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.
Article 1235. Refers to another exception of allowed recovery, when incomplete or irregular performance is waiver.
Article 1236, talks about whom the creditor accept payment. Creditor may accept payment to the debtor, guarantor, and a third person who is not interested in the fulfillment of the obligation but if he is capable if there is an agreement or stipulation.
Article 1237. The payment of third person without the intention of being reimburse is deemed to be a donation which requires the consent of the debtor. Even if without the knowledge of the debtor and the creditor accepts it it will extinguished the obligation.
Article 1238 is about payment by a third person who does not intend to be reimbursed by the debtor and it is considered a donation which requires the debtor’s consent but the payment is in any case valid as to the creditor who has accepted it
Article 1239. The non validation of the payment by the one who does not have the free disposal of thbe thing due and capacity to alienate.
Article 1240. The person to whom payment shall be made which is to the creditor or obligee, or his successor in interest, or any person authorized to receive it.
Article 1241. The situation where the payment to an incapacitated person such as a minor can be considered valid upon certain conditions such as if he has kept the things delivered and if the payment has been beneficial to him.
Article 1242. This law intends to protect the debtor from being required double payment.
Article 1243. The payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
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.
Article 1245. The special form of payment. Dation in payment is a conveyance of ownership of a thing as an accepted equivalent.
Article 1246. If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Article 1247. The Judicial costs are the expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation.
Article 1248. Unless there is an explicit stipulation, the borrower cannot be required to receive only part of the prestations of which the duty consists. The Debtor will not be forced to make partial payments.
Article 1249. Talks about the payment of debts in money must be made in the currency specified or legal tender in the Philippines if that currency cannot be delivered.
Article 1250. The extraordinary inflation or deflation.
Article 1251. talks about the place where obligation shall be paid.
Thank you for the lesson, Atty!
Jerwin Pagela | 1BSA-A
Here are my key takeaways for this lesson
Chapter 4: extinguishment of obligations
Section 1
Article 1232 - payment is not just money
1233 - debt is debt until the delivery or performance is not yet completed or fulfilled
1234 - if performed in good faith , the obligor may recover but there are strict manners
1235 - when obligee accepts the performance although being incomplete the obligation is deemed complied
1236 - third person is not allowed unless there is a stipulation to the contrary
1237 - third-party subrogation rights
1238 - third person who does not need to be reimbursed is considered a donation and is also must be accepted by the debtor
1239
1240 - payment should be made to the one who has the right to it
1241 - payment to a person who is incapacitated, if he has kept it, it is valid
1242 - payment made in good faith
1243 - payment made to the creditor is judicially ordered to be retained, the debt is invalid
1244 - the debtor cannot give a different to the one they agreed
1245 - dation in payment for adjudication is a special form of payment
1246 - quality of the thing the creditor cannot demand for superior the same as the debtor cannot give an inferior quality
1247 - extrajudicial expenses required by the payment should be shouldered by the debtor
1248 - if there's no stipulation partial payments are not allowed
1249 - if monetary it should be in the right currency,the philippine peso
1250 - if extraordinary inflation or deflation happened, the value is based on the time of establishment of obligation and not payment
1251 -
1252 - application of payments and rules
1253 - the payment must be applied first to the interest before the principal unless there is an agreement between parties
1254 - supreme court's rule in which debt is more onerous
Payment by cession
1255 - assignment or abandonment of all the properties of debtor for the benefit of creditors,all properties of the debtor. Does not make the creditors the owner of property.
Tender of payment and consignation
1256 - tender of payment = offering the creditor (extrajudicial)
Consignation = depositing the thing or amount due (judicial)
1257 - with absence of prior notice the consignation is void.
1258 - when a consignation is made , interested parties must be notified
1259 - consignation expenses
1260 - consignation has been made
1261 - if the debtor is is wanting to withdraw there should be the consent of the creditor
Gonzales, Karl Wilson M.
1 BSA - A
Pamantasan ng Cabuyao
Here is the summary of what I learned from this chapter:
In Article 1231, Obligations are extinguished by by payment or performance
. by loss of the thing due, by condonation or remission ,by confusion or merger of the rights of creditor and debtor, by compensation, by novation. 1232. Payment means not only the delivery of money but also the performance, in any other manner of an
obligation. It is the fulfillment of the prestation due that extinguishes the obligation by the realization of the purposes for which it
was constituted. 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligatoin consists
has been completely delivered or rendered, as the case may be. There are 2 requisites of payment:
(1) identity of prestation - the very thing or service due must be delivered or released (2) integrity - prestation must be fulfilled completely. In 1234, In order that there may be substantial performance of an obligation, there must have been an attempt in good faith to
perform, without any willful or intentional departure therefrom. The non-performance of a material part of a contract will prevent the performance from amounting to a substantial
compliance. In 1235, A person entering into a contract has a right to insist on its performance in all particulars, according to its meaning and
spirit. But if he chooses to waive any of the terms introduced for his own benefit, he may do so. 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. 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. In 1237, this article gives to the third person who paid only a simple personal action for reimbursement, without the securities,
guaranties and other rights recognized in the creditor, which are extinguished by the payment. In 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. In 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. Payment made to a third person shall also be valid
insofar as it has redounded to the benefit of the creditor. In 1242, payment made in good faith to any person in possession of the credit shall release the debtor. 1243 states that the payment to the creditor after the credit has been attached or garnished is void as to the party who obtained the
attachment or garnishment, to the extent of the amount of the judgment in his favor. Article 1244 said that upon agreement of consent of the creditor, the debtor may deliver a different thing or perform a different prestation in
lieu of that stipulated. In this case there may be dation in payment or novation. Article 1245 talks about the delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equivalent of
the performance of the obligation. Thank you!
Rivas, Krisha Eunice G.
1 BSA-A
PNC
Good day Atty.Here are tye summary of what I have learned.
Art. 1231. Obligations are extinguished by payment or performance, by the loss of the thing due, by the condonation, by the confusion,by compensation and by novation, there are other causes like death of tha party and etc.
Art.1232. Payment also mean to do performance of an obligation
Art. 1233. The obligation must be completely delivered or rendered unless it will not understood.
Art. 1234. The obligor may recover if the obligation has been subtantially performed in good faith.
Art 1235.Obligation is fully complied when the creditor knew the incompleteness or irregularity without protest.
Art. 1236.The creditor is not bound to accept payment from third party unless it is stipulated.
Art. 1237. Whoever pays on behalf of the debtor is entitled to subrogation is the payment is with the consent of the latter
Art. 1238. If the payinh third person does not intend to reimbursed , the payment is deemed valid.
Art. 1239. Refers to the free disposal of the thing due and capacity to alienate.
Art.1240. Payment shall be made to the person in whose favor tje obligation has been constituted.
Art. 1241. Refers to the incapacitated creditor.
Art. 1242. Payment in good faith to any person in possession of the credit shall release the debtor.
Art. 1243. Payment made to the creditor by the debtor after the latte4 has been judicially ordered to retain the debt shall not be valid.
Art. 1244. Very prestation due must be complied with.
Art. 1245. Refers to the special payment which is dation.
Art. 1246. Refers to the quality of the thing.
Art. 1247.The debtor shall be account for the expenses.
Art. 1248. Performance of obligation should be complete.
Art. 1249. Refers to the legal tender which is offered by the debtor in right amount.
Art. 1250.Refers to the extraordinary inflation and deflation.
Art. 1251. Payment shall be made in the place designated in the obligation.
Thank you!!!
Panganiban, Aubrey L.
1BSA-A
Good day, Atty. Here is the summary of what I’ve learned from Chapter 4. Extinguishment of obligations:
Art. 1231 talks about the causes of extinguishment of obligations such us by payment or performance, by the loss of the thing due, by the condonation or remission of the debt, by the confusion or merger of the eights of creditor or debtor, by compensation, and by novation. The additional causes of extinguishment are due to fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise. Impossibility of fulfillment can be legal possibility or physical impossibility where physical impossibility is the undertaking or the obligation is incapable of performance through human limitations while the legal impossibility the performance of obligation is prohibited by law, it is also known as outlaw.
Next under section 1. Payment or performance:
Art. 1232 talks about payment where it refers not only to the delivery of money but also the performance of an obligation. In ordinary parlance, payment means delivery of money and in legal parlance, payment means delivery of money or the giving of a thing, doing of an act or not doing of an act.
Under Art. 1233 are the concept of payment (1) integrity of prestation- the full performance of the obligation, and (2) identity of prestation which pertains to the payment that must be delivered.
Art. 1234 allows the debtor or obligor to perform a substantial performance in good faith as a substitute from the strict and complete fulfillment of the obligation. The law says that if the obligation has been substantially performed in good faith the obligor may recover damages. There are requisites for the application of this article, (1) there must be substantial performance and (2) the obligor must be in good faith.
Under Art. 1235, the law compels the obligor to express his protest or objection in case that he accepts the performance knowing that it is incomplete or irregular. The requisites for the application of this article are: (1) the oblige knows that the performance is incomplete or irregular and (2) he accepts the performance without expressing any protest or obligation.
Art. 1236 refers that the debtor will have to settle the payment to the creditor because they are the parties to the obligation. The third person will not have the interest in the fulfillment of this obligation because he is not a guarantor thus, the creditor is not bound to accept payment or a performance by the third person. In case that the creditor will accept payment from the third person, the third person may demand from the debtor what he has paid except that if the payment is made without the knowledge of the debtor or even if known by him it was made against his will, then the third person can reimburse payment only when the payment has been beneficial to the debtor.
Art. 1237 provides for a third person subrogation right. If there is no concern from the debtor then the third person cannot compel the creditor to subrogate him in his rights. If the payment was made in the consent of the debtor, then the third person can acquire mortgage, guarantee, or penalty.
Art. 1238 talks about the payment made by the third person. If he does not intend to be reimbursed by the debtor, then it is considered as a donation. The Civil Code requires acceptance by the debtor, without the acceptance, it is not considered as donation. Although the debtor may not accept the donation, payment as to him will be valid.
Art. 1239 talks about free disposal of thing due which means that the thing to be delivered must be subject to any claim of a third person, and capacity to alienate means that the person is not incapacitated to enter into contracts.
Art. 1240 refers to the person to whom payment shall be made which is to the creditor or obligee, or his successor in interest, or any person authorized to receive it. If a person is subrogated to the right of the creditor, the payment shall be made by the new creditor.
Art. 1241 refers that if the incapacitated person has kept the thing delivered or insofar the payment has been beneficial to him, there is a limited or qualified validity of payment. The payment made by the third person is valid if it has rebounded to the benefit of the creditor. The benefit to the creditor does not need to be proven in cases where after the payment, the third person acquires the creditor’s right, the creditor ratifies the payment to the third person, or if by the creditor’s conduct, the debtor has been led to believe that the third person had authority to receive the payment.
Art. 1242 talks about the payment to third person in possession of credit. This law intends to protect the debtor from being required to double the payment to creditor.
Art. 1243 talks about the payment in which it will not be considered valid if it was made to the creditor by the debtor after the latter has been judicially ordered to retain the debt.
Art. 1244 states that the obligor is bound to perform the very prestation due and must be complied with. The creditor may not be compelled to receive something which has not been agreed upon. The general rule is that the creditor shall be paid only what has been stipulated upon and that the contract shall be followed and valid.
Art. 1245 talks about the special form of payment under the Civil Code, namely: dation in payment, application in payment, payment by cession, and tender of payment and consignation. Dation in payment is considered as a special form of payment, it is the conveyance of ownership of a thing as an accepted equivalent of performance. In dation in payment the debtor transfer ownership over a property instead of payment of money.
Art. 1246 refers to the rule pf the medium of quality where if the obligation is to deliver a specific thing, the very thing due must be delivered but if the obligation is to deliver a generic thing, the purpose shall be taken in to consideration to determine the quality.
Art. 1247 refers that the debtor will have to pay for expenses out of the Rules of Court which is required when collecting the debt. This article does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect. The losing party has a general rule that he will generally pays judicial costs. Judicial costs are the expenses incurred in case that a party is compelled to file a case in order to enforce the obligation.
Art. 1248 talks about when partial performance is allowed: when there is an express stipulation to the effect, when the debt is in part liquidated and in part unliquidated, and when the different prestations in which the obligation consists are subject to different terms or conditions which affects some of them.
Art. 1249 provides for the kind of currency which is to be used in terms of payment in case of default or in case that the parties did not agree on the currency that it can only be paid in the legal tender in the Philippines. Legal tender is the payment or the currency offered where the creditor cannot refuse to accept.
Art. 1250 talks about extraordinary inflation or deflation. Inflation is the sudden increase of money while deflation is the reduction or drop of money. In case of a sudden inflation or deflation of currency, then the value of currency at the time of the establishment of the obligation shall be the basis of payment.
Art. 1251 talks about the place where obligation shall be paid. Obligation shall be paid at: the stipulated place, in delivery of determinate thing the place is where obligation was constituted, and the delivery of generic thing must be made at domicile of debtor or place of debtor.
Thank you for this lesson, Sir.
PAMA,KERSHEY ANNE L.
1BSA-A
Chapter 4 Extinguishment of Obligation
Article 1231 states that obligations are extinguished by payment or performance, by the loss of the thing due, and by the condonation or remission of the debt.
Article 1232 states that the payment is not only in the means of the delivery of money but of also the delivery of performance.
·Legal Parlance - delivery of money
·Legal Mode - delivery of money, doing an act, giving of a thing and not doing of an act
Acticle 1233 states that a debt shall not be undestood paid unless it has been completely paid and and the delivery of performance has been fulfilled
Article 1234 stated that if the obligation has been performed in compliance with the stipulation or in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. But there is an exception in 1233 found in 1234. When there is a substantial performance, meaning although incomplete is still acceptable, and will considered fulfilled, only compensation about breach of obligation must be paid.
Article 1235 tells that obligation is fully complied with if the obligee accepts the performance knowing that he is aware of its incompleteness or irregularity, and without expressing any protest or objection. It also tells the requisites which are the obligee knows that the performance is incomplete or irregular, which means if the obligee is unaware of its incompleteness and irregularity then Article 1235 will not apply and he accepts the performance without expressing any protest or objection.
Article 1236 talks that the creditor can only accept payment by the third person if there is a stipulation to the contrary otherwise the creditor is not bound to accept payment by a third person unless that person is a debtor, guarantor, or has an interest in the obligation then the creditor can accept his payment. If the third person paid the creditor and the creditor accepts it with the knowledge and consent of the debtor, then the third person has a right to demand or can reimburse what he has paid to the debtor.
Article 1237 states that the third party pays on behalf of the debtor without his knowledge or against his will are not entitled to compel the creditor to subrogate him in his rights.
Article 1238 talks about the donation of the third person who pays on behalf of the debtor which means he has no intention to be reimbursed, but this needs to know by the debtor and agree with the giving of payment as a donation to him. Even though the debtor does not give his consent, the payment is still valid on the part of the creditor.
Article 1239 states that the payment shall not be valid if it is made by one who has no free disposal of the thing due and has the capacity to alienate a contract, which means that the thing to be delivered should not be claimed by a third person.
Article 1240 is about the persons from whom the payment shall be made which are the creditor/oblige, successor, and person authorized to receive it.
Article 1241 states that 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.
Article 1242 the protection to the debtor from double payment.
Article 1243 states that payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid.
Article 1244 states that the general rule in this article is that the creditor shall be paid only what has been stipulated upon.
Article 1245 states about the special form of payment. These are dation in payment, application of payment, payment by cession, and tender of payment and consignation. Dation in payment is the conveyance of ownership of a thing as an accepted equivalent of payment wherein instead of payment of money, the debtor will convey ownership over a property in favor of the creditor.
Article 1246 discusses about the quality of the thing to be delivered. It is stated in the article that the creditor cannot demand a thing of superior quality, neither can the debtor deliver a thing of inferior quality.
Article 1247, the extrajudicial expenses required by the payment shall be paid by the debtor.
Artcile 1248 this artcile only contemplated one creditor and debtor and there should be a complete performance of prestation in order for the obligation to be extinguished.
Article 1249 this article is about the kind of currency used in terms of payment in case of the fault of the party did not agree with the currency, it is only possible to be paid in the legal tender in the Philippines which is the Philippines peso.
Article 1250 this article simply talks about the extraordinary inflation which means that the sudden rise of price and the deflation means that the drop of currency or the decline of general price level. It also states that in case of inflation the value of the currency must be valued at the time of the establishment of obligation.
Article 1251
*Obligation shall be paid on
-Stipulated place
-In delivery of deteminate thing
-Delivery of generic thing domicile of debtor
Ortega, Annaztacia
1 BSA - A
Good day atty, here are the summary of this lesson. According to Article 1231, other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed else where in this code. However, the additional causes of extinguishment are fortuitous event, impossibility of fulfillment, resolutory, mutual decision of the party, death of the party requiring personal services, and compromise. In addition, according to Article 1232, payment means not only the delivery of money but also the performance, in any other manner, of an obligation. In Article 1233, a debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. Also, there are concepts of payment, the integrity of prestation, and identity of prestation. Furthermore, according to Article 1234, if the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. Besides there are exception in Article 1233 found in Article 1234, it is when there is substantial performance and will considered fulfilled, only compensation about breach of obligor must be paid. Moreover, according to Article 1235, when the obligee accepts the performance, knowing it's incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with. Also, according to Article 1236, the creditor is not bound to accept payment of 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 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. Furthermore, 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. Besides, according to 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. Moreover, according to 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. There are persons from whom the payment shall be made the: creditor/obligee, successor, and person authorized to receive it. Furthermore, as stated in 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. Also, according to Article 1242, payment made in good faith to any person in possession of the credit shall release the debtor. This law is intended to protect the debtor from being required to double the payment to creditor. Besides, as stated in 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. Additionally, the general rule of article 1244 is the creditor shall be paid only what has been stipulated upon. The contract shall be followed and valid. Moreover in 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. Additionally, in 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. Unless it is otherwise stipulated in Article 1247, 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 be govern. Extrajudicial expey shall be account to debtor. If there is stipulation, it must be followed. However in Article 1248, 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. In addition, according to 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. Lastly, according to article 1250, in case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the same time of the estaby of the obligation shall be the basis of payment, unless there is an agreement to the contrary. That's all.
Momo, Margie Mae T.
1BSA-B
PNC
ARTICLE 1231
Obligations are extinguished:
(1) by payment or performance
(2) by loss of the thing due
(3) by the condonation or remission of the debt
(4) by confusion or merger of the rights of creditor and debtor
(5) by compensation
(6) by novation
Additional Causes of extinguishment
(1) Fortuitous event
(2) impossibility of fulfilment (legal, physical)
(3) resolutory
(4) mutual decision of the party
(5) death of the party requiring personal services
(6) compromise
SECTION 1: Payment or Performance
ARTICLE 1232
PAYMENT means not only the delivery of money but also the performance of an obligation.
ORDINARY PARLANCE - delivery of money
LEGAL MODE - delivery of money
- giving a thing, doing an act, not doing an act
ARTICLE 1233
Concepts of Payment
1. INTEGRITY OF PRESTATION
- full performance of the obligation
- if the thing delivered is not the thing or incomplete under stipulation,
he can refuse to pay
2. IDENTITY OF PRESTATION
- must be delivered
- the very and agreed prestation must be delivered
*receipt is a decent confirmation of payment, debtor can request it
ARTICLE 1234
*this article allows the debtor or obligor to perform a substantial performance in good faith
as a substitute for the strict and complete fulfillment of the obligation
*this is an exception to Article 1233
REQUISITES
1. Substantial performance
- essential or important part of contract have been performed while minor are not yet
- doctrine of substantial performance
2. Obligor must be in good faith
GOOD FAITH (absence of bad faith, there honesty and sincerity on the part of obligor)
- presumed in the absence of proof of contrary (doen't need proof)
ARTICLE 1235
*the law compels the obligor to express his protest or objection incase that he accepts the performace
knowing that it is incomplete or irregular
*if there was no objection and accepts the performance, the law will presume that the obligation
is deemed completely and fully complied with
REQUISITES
1. obligee knows the incompleteness/irregularity of performance
2. accept the performance without expressing a protest/objection
ARTICLE 1236
Persons from whom the creditor must accept payment
1. debtor
2. guarantor
3. 3rd person without interest but with stipulation he is capable
SUBROGATION - 3rd person will acquire the rights of the creditor
ARTICLE 1237
Third Party Subrogation Rights
- whoever pays on behalf of the debtor with consent is entitled to subrogation
- if no consent, 3rd person cannot compel
- even if the creditor gives right Art. 1237 focus on the right of the debtor
ARTICLE 1238
*donation requires the consent of the debtor
*with consent of the debtor or not, payment is valid
- no one is compelled to accept generosity of another
- if the person does not intend to be reimbursed, it is considered as donation
- if the debtor accepts payment, it is valid
ARTICLE 1239
FREE DISPOSAL OF THE THING DUE - thing to be delivered must not subject to any claim
of 3rd person
CAPACITY TO ALIENATE - person is not incapacitated to enter into contracts
SUBROGATION REIMBURSEMENT
gets all the right of the entitled to refund to the extent without
creditor; change of guarantees and securities
creditor
*minor has no power to alienate a property
ARTICLE 1240
Persons from whom the payment shall be made
1. Creditor/Obligee
2. Successor
3. Person authorized to receive it
ARTICLE 1241
*the validity of payment to a minor is conditional
Effects of Payment to an Incapacitated Person
- it is valid unless the thing is kept or benefited by the payment
- pay to the guardian
- absence of benefit can result on paying again
ARTICLE 1242
*the law intends to protect the debtor from being required to double payment
ARTICLE 1245
SPECIAL FORM OF PAYMENT
1. dation in payment - what is used in payment is not money but a property
2. application of payment
3. payment by cession
4. tender of payment and consignation
ARTICLE 1246
*pertains to the quality of the thing to be delivered
ARTICLE 1247
*the debtor will have to pay for expenses out of court which is required in collecting the debt
JUDICIAL COST - losing party generally pays judicial cost
ARTICLE 1248
Partial Performance is allowed if
1. expresseed in stipulation
2. debt is liquidated and unliquidated
3. prestation of obligation have different terms, prestations cannot executed simultaneously
but should be complete
ARTICLE 1249
Legal Tender
- cannot refuse to accept
- currency offered by debtor in right amount, creditor must accept it
- currency which may be used for payments of debts wether public or private,
and which the creditor cannot refuse to acccept
Payment by means of instrument of credit;
Negotiable instruments
- checks, promissory notes payable to order or bills of exchange are not considered
as legal tenders
- they may be refused by the creditors
ARTICLE 1250
INFLATION - sudden increase of money without increase in business transactions
- causes a drop level of money and rise of general price level
DEFLATION - reduction of money available, decline general price level
- opposite of inflation
SAHURDA, MARY LADY LOU C.
1BSA-A
Article 1231 extinguishes obligations through:
- payment or performance,
- the loss of the thing due,
- the condonation or remission of the debt,
- the confusion or merger of the right of the creditor and debtor,
- compensation, or
- novation.
• Obligations may also extinguish due to:
- a fortuitous event
- the impossibility of fulfilling the obligation,
- resolutory,
- the mutual decision of the party,
- death of the party requiring personal services
Article 1232 extinguishes the obligation in payment of money or Ordinary Parlance, and the Legal Mode which is the delivery of money and the giving of a thing, doing an act, or not doing an act.
Article 1233 states about the concept of payment which are:
1. Integrity of Prestation
- full performance of the obligation
- refusal to pay if the thing delivered is not the thing or incomplete under stipulation
2. Identity of prestation
- must be delivered
- the very and agreed prestation must be delivered
• Debtor can request a receipt from the creditor once the obligation is paid, which can be a decent confirmation of payment.
Article 1234 states the exception in Article 1233 of an incomplete performance
1. Substantial Performance - important part of a contract have been performed while minor are yet to be performed
2. Obligor must be in Good Faith - to consider the obligation as fulfilled
Article 1235 is the acceptance of the obligee of the incomplete or irregular obligation and recognizes it as fully fulfilled. However, if the obligee objects to the performance, then the obligee should know that there is irregularity or incomplete in the performance or the obligee accepted the performance without objection.
Article 1236 said that the creditor should not accept payment of the third party substituting the debtor. But if both debtor and creditor have an agreement, then the creditor should accept it and the third party will have the right to reimburse the payment to the debtor.
Article 1237 explained about the third party who pays on behalf of the debtor with consent is entitled to subrogation or if not consented, then third person cannot compel.
Article 1238 pertains to the third person who gives a donation and does not intend to be reimbursed. The debtor should consent the donation because the payment is still valid on the part of the creditor.
Article 1239 explained that the obligation to give should not be validated if it is made by free disposal of the thing and has the capacity to alienate a contract, and the thing should not be claimed by a third person.
Article 1240 enumerated the persons who are allowed to receive the payment which are the creditor, successor, and the person authorize to receive it (guardian, executor, or administrator).
Article 1241 explained that the payment made to the creditor who is incapacitated is still valid as along as it is beneficial to him. Such benefit to be proved in the following cases:
1. If after the payment, the third person acquires the creditor's right;
2.If the creditor ratifies the payment to the third person, and
3.If the creditor said to the debtor that the third person has the authority to receive the payment.
Article 1242 intends to prevent doubling the payment of the debtor to the creditor.
Article 1243 tackles about the creditor who was ordered judicially to retain the debt shall not be valid.
Article 1244 explained that personal obligation cannot substitute the thing even if it is more valuable or the agreement of the obligation unless there is a creditor’s will.
Article 1245 pertains to dation in payment, which is a special form of payment that does not involve money but property that has the same value to the money. This is applicable when the property is alienated to the creditor for the satisfaction of the debt.
Article 1246 pertains to the delivery of an indeterminate or generic thing which does not state the quality, then the creditor cannot demand superior quality neither the debtor cannot give an inferior quality.
Article 1247 explained that the expenses should be paid by the debtor when delivering a thing unless the stipulation say so.
Article 1248 stated that the prestation should be completely performed and not partially performed unless the stipulations stated. However, in case of the debt is in partly liquidated and partly unliquidated, the debtor may effect the payment without waiting on the liquidation of the latter.
Article 1249 said that the currency to be used is the legal tender in the Philippines, if the agreed currency of the party is not possible. Legal tender is the currency offered by the debtor and the creditor should accept it, unless he does not accept checks or notes.
Article 1250 states that the currency at the time of the establishment of the obligation ill be the basis in case of inflation or deflation, unless there is a stipulation.
Article 1251 states that the payment should take place in the agreed place of the obligation. If the debtor causes delay, the creditor can add expenses to the debtor.
Thank you Atty Reyes for the video lecture.
Nofies, Gretchen M.
1-BSA-A (PNC)
Good Day Atty. Here are the summary of the key takeaways i got from this video.
CHAPTER 4: EXTINGUISHMENT OF OBLIGATIONS
Article 1231: Obligation are extinguished by payments of performance, loss of the thing due, condonation or remission of the debt , confusion or merger of the right of creditors and debtor, compensation , novation.
SECTION : PAYMENT OF PERFORMANCE
Article1232: Payment means not only the delivery of money but also the performance in any other manner of an obligation
Article 1233. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered as the case may be.
Article 1234-In recovery allowed in case of substantial performance there had been incomplete performance but the obligation was substantially performed) only compensation about breach of obligor must be paid.
Article 1235-When the oblige accepts the performance, knowing its completeness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.
Article 1236-Discussed that the creditor is not bound to accept by the third person who has no interest in the obligation. And the persons from whom the creditor must accept the payment are from the debtor, guarantor and third person w/o interest but with stipulation he is capable.
Article 1237- The creditor cannot be compelled by the third party who will pay on behalf of the debtor without the consent or will of the latter.
Article 1238- Payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation.
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.
Article 1240-Payment shall be made to he person in whose favor the obligation has been constituted. Only the creditor, successor and person authorized to receive it have the right to receive the payment.
Article 1241- Payment to a person whos i 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.
Article 1242- Payment made in good faith to any person in possession of the credit shall release the debtor.
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.
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.
Article 1245-The four special forms of payment are dation in payment, application of payments, payment by cession and tender of payment and consignation.
Article 1246-If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Article 1247-Judicial costs are the expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation. In article 1247, the extrajudicial expenses required by the payment shall be for the account of the debtor unless otherwise stipulated.
Article 1248-Unless there is an express stipulation to that effect, the creditor cannot b compelled partially to receive the prestation in which the obligation consists. Partial performance are allowed only when there is an express stipulation that effect, when the debt is in part liquidated and in part unliquidated and when the different prestation in which the obligation consists are subject to different terms or conditions which affect some of them.
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 in the Philippines or simply the currency offered by the debtor in the right amount, the creditor must accept in payment of debt in money.
Article 1250- In case an extraordinary inflation of 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.
Article 1251- Payment shall be made in the place designated in the obligation
Thank you!
atty pati sana law on contracts.hehe
DEL MUNDO, SHAINA D.
BS. CRIMINOLOGY 3C4
Aubrey Bianca Robledo
1-BSA B
PnC
Good day Atty. here are is the summary of the key takeaways I got from this video.
Chapter 4: Extinguishment of Obligations
Article 1231. Obligations are extinguished by payment or performance, loss of the thing due, condonation or remission of the debt, confusion or merger of the rights of creditor and debtor, compensation, novation
Section1: Payment or performance
Article 1232. "Payment means not only the delivery of money but also the performance in any other manner of an obligation.”
Legal parlance of payment: delivery of money and giving a thing, doing an act, not doing an act.
Article 1233. "A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered as the case may be."
Concepts of Payment: 1. Integrity of prestation 2. Identity of prestation
Article 1234-In recovery allowed in case of substantial performance (there had been incomplete performance but the obligation was substantially performed) only compensation about breach of obligor must be paid.
Requisites in Article 1234: Substantial performance, Obligor must be in good faith
Article 1235-"When the obligee accepts the performance, knowing its completeness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with."
Article 1236-the creditor is not bound to accept by the third person who has no interest in the obligation. And the persons from whom the creditor must accept the payment are from the debtor, guarantor and third person w/o interest but with stipulation he is capable.
Article 1237- The creditor cannot be compelled by the third party who will pay on behalf of the debtor without the consent or will of the latter.
Article 1238- "Payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation..."
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. The difference between subrogation and reimbursement is also discussed and tells that in subrogation on get all the right of the creditor; change of the creditor while one is entitled to refund to the extent without guaranty and securities in reimbursement.
Article 1240-Payment shall be made to he person in whose favor the obligation has been constituted. Only the creditor, successor and person authorized to receive it have the right to receive the payment.
Article 1241- "Payment to a person whos i 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."
Article 1242- "Payment made in good faith to any person in possession of the credit shall release the debtor"
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."
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..."
Article 1245-The four special forms of payment are dation in payment, application of payments, payment by cession and tender of payment and consignation.
Article 1246-If the obligation is to deliver an indeterminate or generic thing whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality.
Article 1247-Judicial costs are the expenses incurred in case that the party is compelled to file a case in court in order to enforce the obligation. In article 1247, the extrajudicial expenses required by the payment shall be for the account of the debtor unless otherwise stipulated.
Article 1248-" Unless there is an express stipulation to that effect, the creditor cannot b compelled partially to receive the prestation in which the obligation consists. Partial performance are allowed only when there is an express stipulation that effect, when the debt is in part liquidated and in part unliquidated and when the different prestation in which the obligation consists are subject to different terms or conditions which affect some of them.
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 in the Philippines or simply the currency offered by the debtor in the right amount, the creditor must accept in payment of debt in money."
Article 1250- In case an extraordinary inflation of 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."
Article 1251- According to this article " Payment shall be made in the place designated in the obligation..."