Oblicon Notes for Article 1231-1270 PDF

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Notes onLAW OF OBLIGATIONS ANDCONTRACTS(Articles 1231 – 1270)MARY JOYCE C. MONDEJAR AC 1102 Group 8BSA 1 – Block F MW 1:30 – 3:00 PMCHAPTER 4 Extinguishment of ObligationsGENERAL PROVISIONSArticle 1231What I understood from this article is that####### obligations can be####### terminated by differen...

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Notes on LAW OF OBLIGATIONS AND CONTRACTS (Articles 1231 – 1270)

MARY JOYCE C. MONDEJAR

AC 1102 Group 8

BSA 1 – Block F

MW 1:30 – 3:00 PM

CHAPTER 4 Extinguishment of Obl Obligations igations GENERAL PROVISIONS Article 1231 What I understood from this article is that

obligations can be terminated by different causes depending in different situations.

Obligations are extinguished: (1) By payment or performance; (2) By loss of the thing due; (3) By the condonation or remission of the debt; (4) By the confusion or merger of the rights of creditor and debtor; (5) By compensation; (6) By novation. Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code. (1156a)

For example, if A promised to deliver to B a customized phone. A finished customizing the phone but the day before A was supposed to deliver it to B, it was stolen by a thief. The obligation of A to B is extinguished because it was lost without fault of A. So, in short, wala nay obligation si A mu deliver kay nawala na ang iya gihimo kay nakawat man. Pero if indeterminate thing to iya gi promise ug deliver like isa ka sako na rice, kay biskan pag nakawat to kay naa gihapon siyay obligation na mudeliver kang B kay genus never perishes.

SECTION 2. – Payment of Performance

Article 1232

Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.

I learned that to extinguish an obligation, payment is equivalent to the performance of an obligation. Meaning, para mawala imo obligation kay either payment gyud na by money or performance, like to do, not to do or to act or buhaton nimo ang specific thing.

Article 1233

A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be.

I believe it means that ang isa ka utang kay di siya ma considered as performed na jud or paid if wala na complete ug deliver or perform ang what was required of the debtor to the creditor. Like for example, C is obligated to pay P15,000 to D. However, C only gave P13,000 to D. D can refuse to accept what C is giving since kulang paman siya or lacking. Ma extinguish ra ang obligation if bayran jod ni C si D ug P15,000.

Article 1234

If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee.

So, for me, mura siyag connected sa 1233 pero like naay exception. Since in 1233, the debt shall not be extinguished unless the obligation has been completely delivered or rendered, but in 1234, even if the obligation is only substantially performed, it may be considered completely fulfilled, less what is lacking, as long as it can be proven that it was done in good faith and lacking ra siya because di na kaya or beyond the limits of the debtor na. Example, Nicola promised to deliver 150 pens to Sara for P2,000. But due to certain circumstances, Nicola only got to deliver to Sara 127 pens despite having put much effort to complete the obligation. Nakita siya na gi try jod ni Nicola ug deliver tanan pens sa abot sa iya makaya pero wala gihapon niya na complete ug deliver. Kining Article 1234 can be applied ani na situation wherein Nicola may be paid for the 127 pens lang and ma extinguish na ang iya obligation kay she delivered in good faith despite having not delivered 150 pens.

Article 1235

When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest of objection, the obligation is deemed fully complied with.

This article is still in connection to Article 1233, like another exception to that article. If Article 1234 was an exception for those who substantially performed the obligation, Article 1235 is similar but the focus is on its incompleteness or irregularity and the acceptance of the obligee. In this case, dapat kabalo ang obligee na wa natarong ug perform ang obligation and gi accept gihapon niya. If present na ang sila na mga factors, meaning extinguished na ang obligation.

For example, A promised to sew B’s trousers in silk only for a certain price. However, A failed to do so and B knew that instead of silk, A sewed the trousers using satin cloth. B still accepted the trousers and paid for it without any complaints. This means nawala na ang obligation.

Article 1236

The creditor is not bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.

Pasabot, if naay walay labot sa obligation pero Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against ni offer ug bayad for the the will of the debtor, he can recover only insofar as the payment debtor, dili kailangan na has been beneficial to the debtor. iaccept dayon to sa creditor ang bayad sa katong walay labot, unless stipulated. In the second paragraph, it tells us that whoever pays for the debt of another, he/she may be reimbursed only based on the amount that has benefited the debtor and that reimbursement depends on whether or not the debtor knows about the third person paying for him/her. Let’s say D owes F P4,500. C offers to pay F P4,500 which is the debt of D. If the situation calls where F accepts the payment of C who is a third person or who is not actually part of the obligation and the payment was done with the knowledge of D, then C may be reimbursed by D, the total amount of what was paid for the debt including accessories and the likes.

Article 1237

Whoever pays on behalf of the debtor without the knowledge or against the will of the latter cannot compel the creditor to subrogate him in his rights, such as those arising from a mortgage, guaranty, or penalty.

So, in relation to 1236 where there is a third person, in Article 1237 there is also a third person who pays the debt of another. However, in this article, if one pays on behalf of the debtor and without the knowledge or consent of the debtor, then the third person cannot demand to be reimbursed or commence his right to subrogation. Example, A paid L’s debt to D, without the knowledge or permission of L. Now, A may only recover the amount that was beneficial to L. A is not entitled to his rights of subrogation.

Article 1238

Payment made by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which requires the debtor’s consent. But the payment is in any case valid as to the creditor who has accepted it.

If there was a stranger to the obligation who willingly paid the debt of a debtor without the intention to be reimbursed or to recover the amount from the debtor, then it may be considered as a donation with the consent of the debtor. Pero biskan pag way consent sa debtor tapos gi accept na sa creditor ang bayad sa third person, ma extinguish gihapon ang obligation kay na accept naman sa creditor biskan pa ug wala nisugot ang debtor na bayran sa third person.

For example, C paid D’s obligation to F without wanting to be reimbursed by D. D accepted the donation of C and F accepted C’s payment. Then the obligation is extinguished since it is now deemed fulfilled.

Article 1239

In obligations to give, payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid, without prejudice to the provisions of Article 1427 under the Title on “Natural Obligations”. (1160a)

In my opinion, this means that those who have no claims or rights to a particular object being the deal in an obligation or those who have no capacity to alienate it, for example minors, then the obligation shall not be valid. Like for example, gibaligya ni C ang isa ka cellphone kang D. Tapos ang cellphone man diay kay ang tag-iya kay si A. Dili ma valid ang ila deal kay dili man si C ang tag-iya sa iyang gibaligya na cellphone. Makuha ni A balik ang cellphone kay iyaha man to and naa shay claim ato, meanwhile si C walay right to sell the phone kay in the first place dili iya.

Article 1240

Payment shall be made to the person in whose favor the obligation has been constituted, or his successor in interest, or any person authorized to receive it. (1162a)

The article implies that the payment to a debt may only be paid to the creditor, his successor or heir and to any person the creditor authorized to receive it. Let’s say for example, C owes M P10,000. C may only pay to M himself. C can also pay to anyone he authorized to receive the payment like his guardian or anyone also authorized by the law or to his heirs if he is already dead.

Article 1241 Kibali if nagbayad ka sa minor nga naay guardian kay naa kay utang sa iya, then iya ra gi keep ang kwarta or iya gi consume ang money for his needs, valid gihapon ang imo bayad and ma extinguish ang obligation.

Payment to a person who is incapacitated to administer his property shall be valid if he has kept the thing delivered, or insofar as the payment has been beneficial to him. Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to the creditor need not be proved in the following cases: (1) If after the payment, the third person acquires the creditor’s rights; (2) If the creditor ratifies the payment to the third person; (3) If by the creditor’s conduct, the debtor has been led to believe that the third person had authority to receive the payment. (1163a)

Pero kung gidawat sa minor imong gibayad and iya nawala, di siya ma valid kay wala man ka benefit ang minor sa imo bayad unta sa utang, bayad napod ka utro ug P500 if ang tibuok P500 iyang nawala and if kana na amount kibali imong utang sa minor.

Article 1242

Payment made in good faith to any person in possession of the credit shall release the debtor. (1164)

It’s like another article illustrating a situation wherein payment to a third person is valid. For example, naay gi make na instrument or note ang debtor. Like note sha nga nag ingon nga mubayad ang debtor sa bearer sa note. Karon if nawala sa creditor ang note tas naay lain tao nakagunit sa note then obligated ang debtor mu pay atong lain tao nga nakagunit sa note kay mao may naka state didto sa note. If mubayad na siya sa nakagunit, diha na dayon ma extinguish iyang obligation.

Article 1243

Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid. (1165)

If the debtor pays the creditor despite having been ordered by the court to retain the debt, his/her payment to the creditor will not be valid, meaning the obligation is not extinguished. Example is if D has a debt to N, amounting to P150,000. D was judicially ordered to retain his/her debt to N. Now if D pays N after the order of retention, the payment is not considered valid and his/her obligation remains.

Article 1244

The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value as, or more valuable than that which is due.

Kung kinsa to nakautang, In obligations to do or not to do, an act or forbearance cannot be di siya makabuot sa substituted by another act or forbearance against the obligee’s creditor na makadawat will. (1166a) ug lahi, biskan pag mas mahal or same ra ug price sa iyang kailangan i-hatag or ibayad. I feel like the article is made in favor of the creditor ba para dili pod matagaan ug power ang debtor na magbuot ug unsay iyang ibayad. Natagaan kibali ug standard ang debtor na kailangan niya i-follow para dili sab ma gansi ang creditor ug ma protektahan iyang rights.

Let’s say for example, Nora is a sculptor. Nora has to give one of her sculptures which is coincidentally her favorite, amounting to P25,000 to Silvia whom she has a debt to. Nora cannot persuade or compel Silvia to receive a different sculpture even if it is more expensive than the one she is obligated to give to Silvia.

Article 1245

Dation in payment, whereby property is alienated to the creditor in satisfaction of a debt in money, shall be governed by the law of sales. (n)

It’s like a special way of paying a debt. Example, J is indebted to V for P24,000. Instead of paying in cash or money, they mutually agreed that the debt be extinguished if J gives V 5 albums of V’s favorite KPOP group, ITZY. If J succeeds in doing so, then the obligation of J is extinguished.

Article 1246

When the obligation consists in the delivery of an indeterminate or generic thing, whose quality and circumstances have not been stated, the creditor cannot demand a thing of superior quality. Neither can the debtor deliver a thing of inferior quality. The purpose of the obligation and other circumstances shall be taken into consideration. (1167a)

If ang sabot is mag deliver ug generic thing like for example sacks of rice, horse, car or cement and others na considered as genus or is always there ba like mapangitaan jud nimo biskan asa kay di jud sha mawala, dili pwede idemand or icompel sa creditor na tagaan sha ug something na mas valuable sa generic thing na gi mean sa obligation, in turn, dili pod pwede nga ang ihatag sa debtor kay low quality or pangit unless ayon siya sa purpose sa obligation or circumstances na gi say sa creditor. Kibali if scientist diay tong creditor and need niya ug sick na kanding or goat kay need niya sa iyang research in relation to discoveries of new medicines and the likes, then ang ideliver dapat sa debtor kay sick pud na goat kay mao may need sa creditor. Pero if dili ingato ang purpose then the debtor must deliver a healthy goat, only then will the obligation be extinguished. Ga depende rajod sa unsay purpose sa thing of obligation or preference sa creditor if acceptable ba ang damages pod na imo na incur sa thing na kailangan nimo i-deliver.

Article 1247

Unless it is otherwise stipulated, the extrajudicial expenses required by the payment shall be for the account of the debtor. With regard to judicial costs, the Rules of Court shall govern. (1168a)

If there was a stipulation between the parties as to who will pay for the extrajudicial expenses, then the payment will be accounted to the one mentioned in the stipulation. Tapos if walay stipulation kay automatic na ang mubayad sa extrajudicial expenses kay ang debtor na dayon. For judicial costs, the Rules of Court may be the one to decided who will pay the aforementioned.

Article 1248

Unless there is an express stipulation to that effect, the creditor cannot be compelled partially to receive the prestations in which the obligation consists. Neither may the debtor be required to make partial payments.

Sa akong pagsabot, dili makabuot ang debtor However, when the debt is in part liquidated and in part na i-pareceive ang unliquidated, the creditor may demand, and the debtor may effect creditor sa iyang partial the payment of the former without waiting for the liquidation of the payment or delivery of latter. (1169a) which is stipulated sa obligation nila, in turn sab, dili maka demand ang creditor pod na partial ra ang bayran sa debtor.

For example, if obligated si Maria to give 100 paper bags to Jose, and ang ihatag ra ni Maria kang Jose is 89 ra ka paper bags, then dili niya ma pugos si Jose na dawaton ang 89 ra ka paper bags, meaning wa pa na extinguish ang obligation kay wa man silay stipulation na okay ra kulang ang madawat ni Jose. Pero if ang utang diay ni Maria kay kwarta plus murag shares sa company or something similar like profit, pwede ra ma compel ni Jose si Maria na bayran na siya even partially, biskan wa pa na liquidate.

Article 1249

The payment of debts in money shall be made in the currency stipulated, and if it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines. The delivery of promissory notes payable to order, or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, or when through the fault of the creditor they have been impaired. In the meantime, the action derived from the original obligation shall be held in abeyance. (1170)

From the article, we can derive that the payments of debts in money must be made in accordance to the value of currency stipulated between the parties. It was also stated that payment through promissory notes, checks or mercantile documents doesn’t automatically mean that the obligation is fulfilled. The instruments must be cashed for the payment to take effect. We can say that A is obligated to pay B an amount of P10,500. A must pay in cash or in coins which abide to the legal tender in the Philippines, under Circular No. 537 Series of 2006. And if A paid through a check and B accepted the check, the obligation will only be extinguished if the check is cashed by B.

Article 1250

In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment, unless there is an agreement to the contrary. (n)

To put it simply, if factors like inflation interferes with the currency concerning the fulfillment of the obligation, then the basis of what must be paid will only be the value of the currency at the time when the obligation was established, unless there is a stipulation saying otherwise. For example, Lea is obliged to pay P23,000 to Clark. Due to inflation, the value of P23,000 is equivalent to P11,500 in the present. The obligation of Lea will still be P23,000 and she still must pay that amount despite the intervention of the inflation to the obligation, unless of course, if there is a stipulation between the parties contrary to this.

Article 1251 The article suggests that payment must be done only in the place stated in the stipulation between the parties in an obligation. However,

Payment shall be made in the place designated in the obligation. There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted. In any other case the place of payment shall be the domicile of the debtor. If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him.

if there is no stipulation, the payment should be These provisions are without prejudice to venue under the Rules of made wherever the Court. (1171a) thing to be delivered might be at the moment or at the domicile of the debtor. And if mag buot buot ang debtor ug change sa iyang domicile like with bad intentions kay whatever additional expenses nga nabayran sa creditor tungod adto kay ishoulder or reimburse sa debtor kay iya mang sala. Let’s say M owes N P50,000. However, they did not agree on where they will meet up or they didn’t agree on a place where the payment will be made. This automatically means that the place of payment will be the domicile of the debtor, wherein M must pay the expenses to go to the domicile of M and receive the money that he must collect.

SUBSECTION 1. – Application of Payments

Article 1252

He who has various debts of the same kind in favor of one and the same creditor, may declare at the time of making the payment, to which of th...