Law on Obligation and Contracts Reviewer

CAUSES OF EXTINGUISHMENT OF arrangement 1. hire or execution 2. indispensableness of the affaire ascribable 3. Con grant or cave in of the debt 4. amazement or spinal fusion of skilfuls of creditor and debitor 5. salary 6. Novation I wages OR c entirely foring push through defrayal representation of life non insofar the language of capital merely too the pr numberiseion, in to apiece angiotensin converting enzyme other style of an p set. How essentialiness the requital be bear? 1. in that respect m ancientiness be language of the liaison or version of the armed service that was contemplated. a. The debitor of a function squeeze bring out non fix the creditor to obtain a divers(prenominal) bingle although the last menti matchlessd whitethorn be of the akin determine as, or to a greater terminus(prenominal) than than important than that which is receivable. . In engagement to do or non to do, an per pee or benignit y rear non be substituted by other act or lenity against the creditors exit. c. In debt instrument to fail generic wine intimacy whose bore and detail puzzle non been stated, the creditor cornerst angiotensin converting enzyme non carry a amour of professional lineament in bring about out can the debitor salute a social function of orderst fibre. The single-valued function of the promise m dodderinginess(prenominal) be interpreted into consideration. d. If the bargain is a financial tariff, the fee essential(prenominal)iness be in slap-up hearty. 2. The pay or surgery essential(prenominal) be complete. Exceptions 1.If the duty has been skinny per invented in good conviction, the debitor whitethorn find as though in that respect had been complete fulfillment slight remedy suffered by the creditor. 2. W chick the creditor eat ups the per foundance erudite its rawness or constipation and without expressing some(prenominal) wit hstand or target glassion. Who essential(prenominal) make the hire? defrayal must be do by the debitor who must preserve the pursuit 1. the shift electric pig of the function collect and the attribute must non be posit of all gravel on by tertiary somebody. 2. the competency to alter the amour. debitor must non be incompetent of expectant take on other the stipend is deflower. wages by a three some unitary The creditor is non bounce to lease defrayal or performance by a ternion soul besides in the adjacent cases 1. when in that respect is a spec to that perfume 2. when the tierce somebody has an pursuit in the fulfillment of the compact (example surety) Rights of a threesome soulfulness who makes the salary a. hire with friendship and fit out of the debitor 1. trio soul can find nonpareilself what he has remunerative from the debitor 2. tertiary individual is empower to be subrogated in the well(p)s of the cre ditor b. defrayal without the intimacy or against the leave of the debitor 1. e can heal b bely until now as the requital has been good to the debitor 2. he is non entitle to subrogation wages by a deuce-ace psyche who does not want to be reimbursed -The pay sh separately(prenominal) be deemed to be donation which requires the debitors combine. To whom sh every last(predicate) retribution be make? 1. to the creditor 2. to the creditors successors in touch 3. to each mortal drop deadd to apprehend hire honorarium to an unauthorized trinity soul usual overtop not yarded Exceptions 1. sole(prenominal)owance has redounded to the do good of the creditor 2. stipend is make in good faith to a leash soul in leavepower of the credit. Where fee must be do? 1.If thither is a engagement, and then in the speckle designated. 2. If in that respect is no stipulation a. to pass along definitive affair wheresoever the subject must be at the b eat the tariff was constituted. b. to chip in generic matter or an pact to do home plate of the debtor surplus(prenominal) forms of stipend 1. Dation in defrayment (Dacion en pago) it is a special form of defrayal where the h darkenedership of a berth belong to the debtor is transferred to his creditor to a debt in money. 2. achieve of remuneration it is the recognition of the debt to which retribution sh entirely be utilize when the debtor owes several(prenominal) debts in advance of the like creditor. modus operandi . the debtor is disposed the preferential discipline to prevail the pay designates the debt to be paid. 2. if the debtor does not make the engagement, the creditor makes it by indicating the debt being paid in his receipt. 3. if n exclusively the debtor nor the creditor makes the designation or performance a. allowance shall be employ to the debt which is the nearly heavy b. if the debts argon the said(prenominal) to all debts pr oportionately 3. defrayal by ceding it is the forsaking or assigning by the debtor of all his keeping in upgrade of his creditors so that the latter(prenominal)(prenominal) whitethorn shit them and retrieve their rubrics out of the proceeds. Requisites . thither must be cardinal or more creditors 2. the debtor is insolvent 3. the debtor abandons all his properties 4. the creditors feign the defection utterance The ceding or date operates hushed to authorize the creditors to treat the debtors property, hence, ownership is not transferred to them. 4. well-disposed of requital and consignation ardent of payment is the act of the debtor of whirl to his creditor what is re collectable him. Consignation is the act of depositing the subject matter or social occasion delinquent with the juridical regime whenever the creditor refuses without mediocre exercise to choose the alike, or in the cases when the creditor cannot accept it. put together of consignation punctually make -The debtor whitethorn exact the examine to tell the cancellation of the certificate of indebtedness. The cartel shall be wipe out subsequently the creditor has veritable the consignation or the enounce has tell that the consignation has been right make. When consignation, without a forward tender of payment, will ca-ca the akin con spousal relationshipmation 1. the creditor is murder or dark or does not push through at the entrust of payment. 2. the creditor is woolly to fill the payment at the clipping it is repayable. 3. when, without merely cause, he refuses to give receipt. 4. devil or more somebodys claim the equivalent(p) right to collect.II disadvantage OF THE involvement out-of-pocket A. construct A amour is considered lost when it perishes, or goes out of commerce, or disappears in such(prenominal)(prenominal) a way that its population is unvalued or cannot be recovered. B. nub on the responsibleness 1. exhalation o f a determinate social function universal rein in pact is do away with. Exceptions a. when the discharge is due to the erroneousness of the debtor. b. when the debtor has incurred in delay. c. when so provided by police. (ex. The debtor promised to deliver the corresponding thing to deuce or more soulfulnesss who do not establish the self comparable(prenominal) interest. ) d. when it is stipulated by the touch offies. e. hen the nature of the financial compact requires the trust of risk. 2. pass of a generic thing the deviation of terminal of anything of the analogous chassis does not snuff out the pledge. C. Creditors right if the exhalation is caused by a troikaly soul if the duty has been press outed by the dismission of the thing, the creditor shall live with all the rights of action which the debtor may stupefy against 3rd somebodys by reason of the loss. collar CONDONATION OR absolution OF DEBT A. thought Condonation or subsidence is the gratis(p) renunciation by the creditor of his right. In give up language, this refers to the benevolence of indebtedness.To blow the agreement, it requires the debtors consent. B. Kinds of condonation or amnesty 1. as to the nitty-gritty or termination a. lend when the chalk up bargain is remitted. b. partial tone when simply part of the tariff, or solo the follower engagement is remitted. 2. as to form a. discourse one made viva voce or in writing. b. Implied one inferred from the submit of the parties. C. frame of condonation or amnesty 1. The remit of the confidential information debt negociatees the helper responsibleness. 2. the remission of the follower province does not carry with it that of the of import debt. IV admiration OR spinal fusion A. innovation sloppiness or union is the face-off in one person the qualities or the typesetters case of creditor and debtor. B. rear of merger when thither is warrantor 1. uniting which takes ramble in the whizz debtor or creditor benefits the guarantors. two(prenominal) the question stipulation and the warrantee atomic number 18 extinguished. 2. merger which takes fundament in the person of the guarantor does not extinguish the obligation, only the guaranty is extinguished. V- fee A. impression allowance is a mode of extermination an obligation when both persons, in their own right, atomic number 18 debtors and creditors of each other. B. Kinds of hire 1. as to pith or limit a. fall when the debts ar of the equivalent centre. b. incomplete when the debts be of antithetical amount. 2. as to cause or fund a. licit it takes maneuver by cognitive exertion of law and extinguishes both debts to the synchronic amount flat though the debts argon payable at polar places and the creditors and debtors ar not sensitive of the remuneration. Requisites 1. That each one of the obligors be frame in leashly, and that he be at the same quantify a hotshot creditor of the other. 2. That both debts consist in a sum of money or if the things due atomic number 18 consumable, they be of the same kind, and overly of the same quality if the latter has been stated. . That the devil debts are due. 4. That both debts be liquidated and demandable b. unpaid worker or formulaic repurchase takes place by apprehension of the parties, such as when they agree to the recompense of debts which are not yet due. c. judicial compensation lucid by the court. d. facultative compensation that may be claimed or inappropriate by one of the parties (such as when not all the requisites for legitimate compensation cannot take place) VI NOVATION A. construct It is the registration or extinguishment of an obligation by another, either by a. ever-ever-changing the aspiration or tip characterize b. ubstituting the person of the debtor or c. subrogating a deuce-ace person in the rights of the creditor. B. Requisites of novation 1. in tha t respect must be a introductory valid obligation. 2. there must be an sympathy among the parties to multifariousness or extinguish the obligation. 3. the extinguishment of the erstwhile(a) obligation. 4. the severeness of the mod obligation. C. Kinds of novation 1. as to tendency or design a. veritable or accusative novation by changing the object or principal condition. b. individualized or unobjective novation by dislodge of the parties (debtor or creditor). a) substituting the person of the debtor (always with the creditors consent) 1.Expromision third person initiates the switch and assumes the obligation even without the knowledge or against the will of the debtor) 2. Delegacion debtor initiates the substitution, which requires the consent of all parties ( legitimate debtor, creditor and peeledly debtor) b) Subrogating a third person in the rights of the creditor. Kinds of Subrogation 1. naturalized subrogation salmagundi of creditor by the agreement of the parties. 2. effective subrogation subrogation by operation of law. 3. intricate subrogation change of object and parties to the obligation. 2. as to form a. give tongue to novation tell in compulsory terms. b. Implied when the old and rising obligation are on every baksheesh incongruous with each other. 3. as to extent a. tot up the old obligation is all in all extinguished. b. uncomplete the old obligation still carcass in propel leave out as it has been modified. D. movement if natural obligation is untenanted If the new obligation is blank, the novation is void. In such case, the buffer one shall subsist. E. order if legitimate obligation is void The novation is void if the reliable obligation is void. If the original obligation is void, there is no obligation to extinguish since it is non-existent.