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Session 7 LAW201

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Session 7 LAW201

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OBLI-CON

(Modes of Extinguishment of
Obligation- Continuation)

Atty. Arnold V. De Castro


CONFUSION/MERGER vs. COMPENSATION

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

ELEMENTS FORMS PERTINENT KINDS

1.previous valid obligation; 1. Changing Substitution- debtor is substituted Subrogation-


2.intention/agreement and object; 3rd person is
Expromision- Delegacion-
capacity of parties to extinguish 2. Substitution substituted to
3rd person of his creditor accepts
or modify obligation; 3. Subrogation creditor’s
own initiative 3rd person to take
3. extinguishment or modification rights
and without place of debtor at
of obligation; and
knowledge or initiative of
4. creation or birth of a valid new
against original debtor.
obligation
debtor’s will
assumes
debtor’s
obligation with
creditor’s
consent
NOVATION

EXISTENCE NOT A NOVATION RE: CRIMINAL LIABILITY


Novation is never presumed. 1. Waiver of an interest in a Novation is not a mode of
It must be proven as a fact loan; extinguishing criminal
either by: 2. Extension of term/ liability.
period of payment;
1. Explicit declaration – 3. Acceptance of partial It may prevent the rise of
declared in unequivocal payment by creditor criminal liability as long as it
terms; or before maturity of loan; occurs prior to the filing of
2. Material incompatibility – 4. Reduction of amount of criminal information in court.
old and new obligations be loan
on every point incompatible
with each other.
REFERENCES
A. Books
 De Leon and De Leon. (2021). Obligations and Contracts. Rex Publisher
 Jurado (2020). Obligations and Contracts Reviewer. Rex Printing Company, Inc.
B. Electronic References
 Jurisprudence (n.d.) Retrieved on 13 August 2021 from http://sc.judiciary.gov.ph/decisions/
 Jurisprudence and New Civil Code (n.d.) Retrieved on 13 August 2021 from http://supreme.chanrobles.com/
 Jurisprudence and New Civil Code (n.d.) Retrieved on 13 August 2021 from
https://lawphil.net/judjuris/judjuris.html
 Jurisprudence (n.d.) Retrieved on 13 August 2021 from
https://www.officialgazette.gov.ph/section/judicial/supreme-court/decisions/
C. Others
 Official Gazette of the Republic of the Philippines
 Philippine Reports
 Supreme Court Reports Annotated

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