Extinguishment of Obligations

inter vivos
mortis causa

*By payment or performance

>dation in payment- property is alienated
in satisfaction of the debt
>application of payment
one debtor/creditor
two or more debt

*By the confusion or merger of the rights

>only the accessory obligation can be
extinguish
>both principal and accessory can be
extinguish
*By Compensation

debt must be of same kind

debt must be due

-shall take place when two persons, in

their own right, are creditors and debtors
of each other

payment must not sufficient

>payment by cession- abandonment of
property to satisfy the claim
>tender of payment and consignation- If
the creditor to whom tender of payment
has been made refuses without just cause
to accept it, the debtor shall be released
from responsibility by the consignation of
the thing or sum due

*By novation
>Substituting the person of the debtor
>Subrogating of the creditor
>Changing of object of obligation
Kinds of novation

*By the loss of the thing due

>obligation to give a specific thing
>Obligation to do

*By the condonation or remission of the

debt

real
personal
mixed

Personal Novation
*substitution

-is essentially gratuitous, and requires the

acceptance by the obligor

>Expromission- consent of 3rd person and

creditor is made

-may be made expressly or impliedly

-reimbursement benefit by the old debtor

Date of effectivity

-creditor cannot revive active of the old

debtor

>Delegacion-all consent of the parties are

made

*real agreement is void

-reimbursement and subrogation

Defective Contracts
-cannot revive but subject to exception
*subrogation

*rescissible-valid until rescendended

-by injury or damage

>legal
>conventional

-reparation and restoration

*voidable-until annulled

Contracts- are agreements but not all

agreements are contract
Kinds of contracts

-consent is defective and incapacity of one

party
-ratification

formal- certain formalities required by law

*unenforceable-cannot enforced unless

ratified

consensual- by mere consent

entered given no authority

real- through delivery

do not comply with statute of fraud

Stages of contract

both parties are incapable of giving

consent

negotiation
perfection
*void- never exist in the eyes of law
consummation

- has no effect at all and cannot be ratified

Characteristic of contract
object is contrary to law
freedom

fake or fictitious

mutuality
outside the commerce of men
relativity

No reformation:

object is not certain

Statute of fraud

*simple donation
*wills

*terms that should not perform within one

year

*special promised to the debt must be in

writing

*two parties are incapable in giving

consent