Obligations and Contracts: An In-depth Look at Alfane, Codilla, Compensation, and Novation, Slides of Law

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.

Typology: Slides

2017/2018

Available from 03/02/2024

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Obliga
t
ion
s
and
Con
tr
ac
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3. Condonation or remission of debt (Arts. 1270-1274)
4. Confusion or merger of rights (Arts. 1275-1277, NCC)
5. Compensation (Arts. 1278-1304, NCC)
6. Novation (Arts. 1291-1304, NCC)
Contracts
Defintion (Art. 1305, NCC), Nature and Concepts
AB Political Science 3 - B
Group 2
Adamos, Mikee
Alfane, Pierre Anthony
Balonzo, Aurey Fae
Banzuela, Danica Kim
Codilla, Dorothy
Miranda, Hannah Pamela
Morado, Chelsea Dannah
Navarro, John Erasmus
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Obliga t ion s

and

Con tr ac ts

  1. Condonation or remission of debt (Arts. 1270-1274)
  2. Confusion or merger of rights (Arts. 1275-1277, NCC)
  3. Compensation (Arts. 1278-1304, NCC)
  4. Novation (Arts. 1291-1304, NCC) Contracts Defintion (Art. 1305, NCC), Nature and Concepts AB Political Science 3 - B Group 2 Adamos, Mikee Alfane, Pierre Anthony Balonzo, Aurey Fae Banzuela, Danica Kim Codilla, Dorothy Miranda, Hannah Pamela Morado, Chelsea Dannah Navarro, John Erasmus

Condona t ion

o r

Remi ss ion

of

Deb t

(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

Requisites of condonation or remission

1. It must be gratuitous,

2. It must be accepted by the obligor;

3. The parties must have capacity;

4. It must not be inofficious; and

5. If made expressly, it must comply with the forms of

donations.

Alfane

Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Kinds of remission

  1. As to its extent: a. Complete – when it covers the entire obligation; or b. Partial -- when it does not cover the entire obligation
  2. As to its form: a. Express – when it is made either verbally or in writing; or b. Implied – when it can only be inferred from conduct.
  3. As to its date of effectivity a. Inter vivos – when it will take effect during the lifetime of the donor; or b. Mortis causa – when it will beome effective upon the death of the donor. It must comply with the formalities of a will. Alfane

Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS

A rt icle 1272. Whene v e r t he p r i v a t e doc u men t in w hich t he deb t
appea rs i s fo u nd in t he po ss e ss ion of t he deb t o r, i t s hall be
p r e su med t ha t t he c r edi t o r deli v e r ed i t v ol u n t a r il y, u nle ss t he
con tr a ry i s p r o v ed. ( 1189 )

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

Compensation

(Arts. 1278-1304, NCC) Bicol University College of Social Sciences and Philosophy OBLIGATIONS AND CONTRACTS Section 5. -