Session 7 LAW201
Session 7 LAW201
(Modes of Extinguishment of
Obligation- Continuation)
CONFUSION/MERGER COMPENSATION
only one person who is a creditor two persons involved, each of whom is a debtor and a creditor of the
and debtor of himself other
1 obligation involved 2 obligations involved
There’s impossibility of payment There’s indirect payment
To prevent absurdity To prevent unnecessary suits and payments
Elements: Elements:
(1)must take place between the (1) Each one of debtors is bound principally, and at same time a
principal debtor and creditor; principal creditor of the other;
(2)must be complete and definite; (2) both debts consist in a sum of money, or if consumable thing, must
(3) same obligation is involved be of same kind & quality;
(3) 2 debts be due, liquidated and demandable;
(4) 3rd person did not commence against either debtor or creditor any
retention or controversy
CONFUSION/MERGER vs. COMPENSATION
CONFUSION/MERGER COMPENSATION
In joint obligation, confusion will extinguish Pertinent Kinds:
only the share corresponding to creditor or
debtor in whom the two characters concur. 1. TOTAL- when 2 debts are of same amount
2. PARTIAL- 2 debts with different amounts where
Confusion in the person of one of the solidary compensation is total as to smaller debt and partial
debtors shall extinguish the entire obligation in relation to larger debt
because it is also a merger in the other solidary
debtors.
NOVATION