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An in-depth analysis of various concepts related to obligations and contracts in the philippine legal system. Topics covered include alfane (condonation or remission of debt), codilla (confusion or merger of rights), compensation, and novation. The document also includes examples and articles from the new civil code of the philippines (ncc) to clarify these concepts.
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(Arts. 1270-1274) Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Section 3. -
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS
Alfane
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Kinds of remission
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS
Alfane
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS A rt icle 1273. The r en u ncia t ion of t he p r incipal deb t s hall e xt ing u i s h t he acce ss o ry obliga t ion s; b ut t he w ai v e r of t he la tt e r s hall lea v e t he fo r me r in fo r ce. ( 1190 ) Alfane
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS A rt icle 1274. I t i s p r e su med t ha t t he acce ss o ry obliga t ion of pledge ha s been r emi tt ed w hen t he t hing pledged , af t e r i ts deli v e ry t o t he c r edi t o r, i s fo u nd in t he po ss e ss ion of t he deb t o r, o r of a t hi r d pe rs on w ho o w n s t he t hing. ( 1191 a ) Alfane
A contract by virtue of which the debtor deliver to the creditor or to a third person a movable or instrument evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the understanding that when the obligation is fulfilled the thing delivered shall be returned with all its fruits and accessions. Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Pledge Alfane
That the characters of creditor and debtor must be in the same person; That it must take place in the person of either the principal creditor or the principal debtor; That it must be complete and definite. Confusion or merger is the meeting in one person of the qualities of creditor and debtor with respect to the same obligation Requisites of Confusion or Merger of Rights. In order that confusion may take place resulting in the extinguishment of the obligation. The following requisites must concur: Article 1275. The obligation is extinguished from the time the characters of creditor and debtor are merged in the same person. Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Section 4. - Confusion or Merger of Rights Codilla
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS EXAMPLE: If the son owes his father P10,000, and the father dies leaving as part of his estate, inherited by the son, the amount of P10,000 owed by the son to his father. Jessa owes Kris fifty thousand pesos. Before Kris can collect he dies and the credit passes on to his heir Ed. Sometime in 2018 Ed owed Jessa the amount of fifty thousand arising from Ed’s purchase of a racing horse. In satisfaction of his debt, Ed assigns to Jessa the credit he inherited from Kris Codilla
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Merger- It is the meeting of one person of the qualities of creditor and debtor with respect to the same obligation. Guarantor- is a person or an organization that promises to pay a debt owed by a second person, if the latter fails to repay it Effect of Merger in the person of Principal Debtor or Creditor EXAMPLE: Trisha owes Jessa P300,000.00, guaranteed by Ron. Jessa assigns his right to Mariel who assigns her right to Ernie, and Ernie assigns his right to Trisha. Effect: Trisha’s obligation is extinguished. Ron is released from his obligation. Ron, the guarantor, was benefited. Codilla
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Effect of Merger in the person of Guarantor EXAMPLE: Trisha owes Jessa P300,000.00, guaranteed by Ron. Jessa assigns her right to Mariel who assigns her right to Ernie, and Ernie assigns his right to Ron. Effect: Trisha still have to pay Ron. However, the contract of guaranty is extinguished, but not Trisha’s obligation to pay the P300, 000.00. Ron, as the new creditor can demand payment from Trisha. Codilla
Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS EXAMPLE: If A, B, and C jointly owe X ₱3,000 and there is a merger of characters of X and C, the obligation is extinguished in so far as the ₱1,000 share of C in the indebtedness is concerned but not as to the rest. X can still collect ₱1,000 each from A and B. CONFUSION IN JOINT OBLIGATION CONFUSION IN SOLIDARY OBLIGATION EXAMPLE: If the obligation of the debtors is solidary and there is merger of characters of C and X, the obligation is extinguished. However, if A pays the whole indebtedness to X prior to the merger of the characters of C and X, A can still collect from X and likewise from B their respective shares in the indebtedness which is ₱1,000 each. Codilla
(Arts. 1278-1304, NCC) Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Section 5. -