Extinguishment of Obligation
1. Novation
2. Compensation
3. Confusion or Merger
4. Rescission
5. Payment or Performance
6. Loss of the thing due
7. Prescription
8. Remission or Condonation
9. Fulfillment of a resolutory condition
10. Annulment
Other Forms of Extinguishmen
t
(FC-MAID)
1. Fortuitous Event
2. Compromise
3.Mutual desistance or withdrawal
4.Arrival of resolutory condition
5.Impossibility of condition
6.Death
Requisites of Payment
1. Payor or the person who pays
2. Payee or the person to whom payment is made
3.Thing to be paid
4.Manner, time, and place of payment
Kinds of Payment
Characteristics of a Valid Payment (1233)
1.Identity- only the prestation agreed upon and no
other must be complied with
2.Completeness – the thing or service must be
completely delivered or rendered
Principle of Integrity (1233)
General Rule
:
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.
Excpn:
1. When the
obligation has been substantially performed in
good faith, the obligor may recover as though there had been
a strict & complete fulfillment less damage suffered by the
obligee. (1234)
2. When the obligee accepts performance knowing its
incompleteness or irregularity & without expressing any
protest (ESTOPPEL) (1235)
2. Anyone acting on the debtor's behalf
Third Person who is an Interested Party One who has an interest in the extinguishment ofthe obligation such as:
4. Owners of mortgaged property of pledge
Effects of Payment
1. The obligation is extinguished
2. The debtor is to fully reimburse the 3
rd
person
who is an interested party
3.The 3
rd
person is subrogated to the rights of the
creditor.
