MODES OF EXTINGUISHING AN OBLIGATION

Art 1231 What are the modes of extinguishing an obligation?

Art 1232 What is payment?

A owes B P10,000. A is giving only P8,000. Can B refuse to accept the P8,000? Why?

A obliged himself to B to deliver 10 sacks of rice. A delivered only 5 sacks of rice. Can B
refuse to pay the 5 sacks?

Art 1233 When an obligation considered paid?

Art 1234 Is Art 1233 absolute? (Principle of Fairness)

B obliged himself to deliver 50 kgs of durian to D. However, despite the efforts of B,

only 40 kgs were delivered to D because of shortage

Art 1235 Another exception to Art 1233 ( Principle of estoppel)

-If the payment is irregular, the creditor has the right to reject it but in case of
acceptance, the law considers that he waives his right and it is as if the whole
obligation is extinguished.

X agreed to construct the kitchen of Y using a specific design they have agreed upon. If
X deviates from the plan and Y accepted the changes without any protest, the
obligation is deemed to complied with.

Art 1236 Persons from whom the creditor must accept payment

A. Debtor

B. Any person who has interest in the obligation

C. Any person who has no interest in the obligation unless there is stipulation

Here, the creditor has the right to insist on the obligation of the debtor and should not
be compelled to accept payment from a third person whom he may dislike or distrust.

1. If payment was made without the knowledge or against the will of the debtor?

2. If the payment was made with the knowledge of the debtor?

 D owes C P1,000. Suppose S, a stranger to the obligation offers to pay c the amount. In
this case, C may or may not accept the payment from S. If C accepts the payment of S,
how much will be recovered by S from D?

Art 1237 Whoever who pays without the knowledge or against the will of the debtor cannot
compel the creditor to subrogation.

Ex.: S cannot go after the guarantor if D cannot pay him. There should be an express or
tacit approval from the debtor. Since the provision is for the benefit of the debtor.

Art 1238 Payment by a third person who does not intend to reimbursed by the debtor is
deemed to be a donation which requires a debtor’s consent to be valid.

Art 1239 In obligations to give, payment by the one who does not have FREE DISPOSAL OF THE
THING DUE AND CAPACITY TO ALIENATE IT shall not be valid.(The thing paid can be
recovered)

-the thing belongs to another person, or the seller is a minor.

-however Art 1427, 18-21 pays a sum of money or deliver a fungible thing, he cannot
recover the thing paid or delivered if it was consumed or spent in good faith by the
obligee.

Art 1240