Articles 1156-1304, Civil code take care of it with the proper delay, and those who in any

diligence of a good father of a manner contravene the tenor

Art. 1156 An obligation is a
family, unless the law or the thereof, are liable for damages.
juridical necessity to give, to do or
stipulation of the parties requires (1101)
not to do.
another standard of care. (1094a)
Art. 1171. Responsibility arising
Art. 1157. Obligations arise from:
Art. 1164. The creditor has a right from fraud is demandable in all
(1) Law; (2) Contracts; (3) Quasi-
to the fruits of the thing from the obligations. Any waiver of an
contracts; (4) Acts or omissions
time the obligation to deliver it action for future fraud is void.
punished by law; and (5) Quasi-
arises. However, he shall acquire (1102a)
delicts. (1089a)
no real right over it until the same
Art. 1172. Responsibility arising
Art. 1158. Obligations derived has been delivered to him. (1095)
from negligence in the
from law are not presumed. Only
Art. 1165. When what is to be performance of every kind of
those expressly determined in this
delivered is a determinate thing, obligation is also demandable, but
Code or in special laws are
the creditor, in addition to the such liability may be regulated by
demandable, and shall be
right granted him by Article 1170, the courts, according to the
regulated by the precepts of the
may compel the debtor to make circumstances. (1103)
law which establishes them; and
the delivery.
as to what has not been foreseen, Art. 1173. The fault or negligence
by the provisions of this Book. If the thing is indeterminate or of the obligor consists in the
(1090) generic, he may ask that the omission of that diligence which is
obligation be complied with at the required by the nature of the
Art. 1159. Obligations arising from
expense of the debtor. obligation and corresponds with
contracts have the force of law
the circumstances of the persons,
between the contracting parties If the obligor delays, or has
of the time and of the place. When
and should be complied with in promised to deliver the same thing
negligence shows bad faith, the
good faith. (1091a) to two or more persons who do
provisions of Articles 1171 and
not have the same interest, he
Art. 1160. Obligations derived 2201, paragraph 2, shall apply.
shall be responsible for any
from quasi-contracts shall be
fortuitous event until he has If the law or contract does not
subject to the provisions of
effected the delivery. (1096) state the diligence which is to be
Chapter 1, Title XVII, of this Book.
observed in the performance, that
(n) Art. 1166. The obligation to give a
which is expected of a good father
determinate thing includes that of
Art. 1161. Civil obligations arising of a family shall be required.
delivering all its accessions and
from criminal offenses shall be (1104a)
accessories, even though they may
governed by the penal laws,
not have been mentioned. (1097a) Art. 1174. Except in cases
subject to the provisions of Article
expressly specified by the law, or
2177, and of the pertinent Art. 1167. If a person obliged to do
when it is otherwise declared by
provisions of Chapter 2, something fails to do it, the same
stipulation, or when the nature of
Preliminary Title, on Human shall be executed at his cost.
the obligation requires the
Relations, and of Title XVIII of this
This same rule shall be observed if assumption of risk, no person shall
Book, regulating damages. (1092a)
he does it in contravention of the be responsible for those events
Art. 1162. Obligations derived tenor of the obligation. which could not be foreseen, or
from quasi-delicts shall be Furthermore, it may be decreed which, though foreseen, were
governed by the provisions of that what has been poorly done be inevitable. (1105a)
Chapter 2, Title XVII of this Book, undone. (1098)
Art. 1175. Usurious transactions
and by special laws. (1093a)
Art. 1170. Those who in the shall be governed by special laws.
Art. 1163. Every person obliged to performance of their obligations (n)
give something is also obliged to are guilty of fraud, negligence, or
Art. 1176. The receipt of the Every obligation which contains a indubitable that the event will not
principal by the creditor without resolutory condition shall also be take place. (1117)
reservation with respect to the demandable, without prejudice to
Art. 1185. The condition that
interest, shall give rise to the the effects of the happening of the
some event will not happen at a
presumption that said interest has event. (1113)
determinate time shall render the
been paid.
Art. 1180. When the debtor binds obligation effective from the
The receipt of a later installment himself to pay when his means moment the time indicated has
of a debt without reservation as to permit him to do so, the obligation elapsed, or if it has become
prior installments, shall likewise shall be deemed to be one with a evident that the event cannot
raise the presumption that such period, subject to the provisions of occur.
installments have been paid. Article 1197. (n)
If no time has been fixed, the
(1110a)
Art. 1181. In conditional condition shall be deemed fulfilled
Art. 1177. The creditors, after obligations, the acquisition of at such time as may have probably
having pursued the property in rights, as well as the been contemplated, bearing in
possession of the debtor to satisfy extinguishment or loss of those mind the nature of the obligation.
their claims, may exercise all the already acquired, shall depend (1118)
rights and bring all the actions of upon the happening of the event
Art. 1186. The condition shall be
the latter for the same purpose, which constitutes the condition.
deemed fulfilled when the obligor
save those which are inherent in (1114)
voluntarily prevents its fulfillment.
his person; they may also impugn
Art. 1182. When the fulfillment of (1119)
the acts which the debtor may
the condition depends upon the
have done to defraud them. Art. 1187. The effects of a
sole will of the debtor, the
(1111) conditional obligation to give,
conditional obligation shall be
once the condition has been
Art. 1178. Subject to the laws, all void. If it depends upon chance or
fulfilled, shall retroact to the day
rights acquired in virtue of an upon the will of a third person, the
of the constitution of the
obligation are transmissible, if obligation shall take effect in
obligation. Nevertheless, when the
there has been no stipulation to conformity with the provisions of
obligation imposes reciprocal
the contrary. (1112) this Code. (1115)
prestations upon the parties, the
Art. 1168. When the obligation Art. 1183. Impossible conditions, fruits and interests during the
consists in not doing, and the those contrary to good customs or pendency of the condition shall be
obligor does what has been public policy and those prohibited deemed to have been mutually
forbidden him, it shall also be by law shall annul the obligation compensated. If the obligation is
undone at his expense. (1099a) which depends upon them. If the unilateral, the debtor shall
obligation is divisible, that part appropriate the fruits and
Art. 1169. Those obliged to deliver
thereof which is not affected by interests received, unless from the
or to do something incur in delay
the impossible or unlawful nature and circumstances of the
from the time the obligee
condition shall be valid. obligation it should be inferred
judicially or extrajudicially
that the intention of the person
demands from them the The condition not to do an
constituting the same was
fulfillment of their obligation. impossible thing shall be
different.
considered as not having been
Art. 1179. Every obligation whose
agreed upon. (1116a) In obligations to do and not to do,
performance does not depend
the courts shall determine, in each
upon a future or uncertain event, Art. 1184. The condition that
case, the retroactive effect of the
or upon a past event unknown to some event happen at a
condition that has been complied
the parties, is demandable at determinate time shall extinguish
with. (1120)
once. the obligation as soon as the time
expires or if it has become
Art. 1188. The creditor may, other right than that granted to Art. 1192. In case both parties
before the fulfillment of the the usufructuary. (1122) have committed a breach of the
condition, bring the appropriate obligation, the liability of the first
Art. 1190. When the conditions
actions for the preservation of his infractor shall be equitably
have for their purpose the
right. tempered by the courts. If it
extinguishment of an obligation to
cannot be determined which of
The debtor may recover what give, the parties, upon the
the parties first violated the
during the same time he has paid fulfillment of said conditions, shall
contract, the same shall be
by mistake in case of a suspensive return to each other what they
deemed extinguished, and each
condition. (1121a) have received.
shall bear his own damages. (n)
Art. 1189. When the conditions In case of the loss, deterioration or
have been imposed with the improvement of the thing, the
intention of suspending the provisions which, with respect to SECTION 2. - Obligations with a
efficacy of an obligation to give, the debtor, are laid down in the Period
the following rules shall be preceding article shall be applied
Art. 1193. Obligations for whose
observed in case of the to the party who is bound to
fulfillment a day certain has been
improvement, loss or return.
fixed, shall be demandable only
deterioration of the thing during
As for the obligations to do and when that day comes.
the pendency of the condition:
not to do, the provisions of the
Obligations with a resolutory
(1) If the thing is lost without the second paragraph of Article 1187
period take effect at once, but
fault of the debtor, the obligation shall be observed as regards the
terminate upon arrival of the day
shall be extinguished; effect of the extinguishment of the
certain.
obligation. (1123)
(2) If the thing is lost through the
A day certain is understood to be
fault of the debtor, he shall be Art. 1191. The power to rescind
that which must necessarily come,
obliged to pay damages; it is obligations is implied in reciprocal
although it may not be known
understood that the thing is lost ones, in case one of the obligors
when.
when it perishes, or goes out of should not comply with what is
commerce, or disappears in such a incumbent upon him. If the uncertainty consists in
way that its existence is unknown whether the day will come or not,
The injured party may choose
or it cannot be recovered; the obligation is conditional, and it
between the fulfillment and the
shall be regulated by the rules of
(3) When the thing deteriorates rescission of the obligation, with
the preceding Section. (1125a)
without the fault of the debtor, the payment of damages in either
the impairment is to be borne by case. He may also seek rescission, Art. 1194. In case of loss,
the creditor; even after he has chosen deterioration or improvement of
fulfillment, if the latter should the thing before the arrival of the
(4) If it deteriorates through the
become impossible. day certain, the rules in Article
fault of the debtor, the creditor
1189 shall be observed. (n)
may choose between the The court shall decree the
rescission of the obligation and its rescission claimed, unless there be Art. 1195. Anything paid or
fulfillment, with indemnity for just cause authorizing the fixing of delivered before the arrival of the
damages in either case; a period. period, the obligor being unaware
of the period or believing that the
(5) If the thing is improved by its This is understood to be without
obligation has become due and
nature, or by time, the prejudice to the rights of third
demandable, may be recovered,
improvement shall inure to the persons who have acquired the
with the fruits and interests.
benefit of the creditor; thing, in accordance with Articles
(1126a)
1385 and 1388 and the Mortgage
(6) If it is improved at the expense
Law. (1124)
of the debtor, he shall have no
Art. 1196. Whenever in an (4) When the debtor violates any debtor, all the things which are
obligation a period is designated, undertaking, in consideration of alternatively the object of the
it is presumed to have been which the creditor agreed to the obligation have been lost, or the
established for the benefit of both period; compliance of the obligation has
the creditor and the debtor, unless become impossible.
(5) When the debtor attempts to
from the tenor of the same or
abscond. (1129a) The indemnity shall be fixed taking
other circumstances it should
as a basis the value of the last
appear that the period has been
thing which disappeared, or that
established in favor of one or of
SECTION 3. - Alternative of the service which last became
the other. (1127)
Obligations impossible.
Art. 1197. If the obligation does
Art. 1199. A person alternatively Damages other than the value of
not fix a period, but from its
bound by different prestations the last thing or service may also
nature and the circumstances it
shall completely perform one of be awarded. (1135a)
can be inferred that a period was
intended, the courts may fix the them.
Art. 1205. When the choice has
duration thereof. The creditor cannot be compelled been expressly given to the
to receive part of one and part of creditor, the obligation shall cease
The courts shall also fix the
the other undertaking. (1131) to be alternative from the day
duration of the period when it
when the selection has been
depends upon the will of the Art. 1200. The right of choice communicated to the debtor.
debtor. belongs to the debtor, unless it
has been expressly granted to the Until then the responsibility of the
In every case, the courts shall
creditor. debtor shall be governed by the
determine such period as may
following rules:
under the circumstances have The debtor shall have no right to
been probably contemplated by choose those prestations which (1) If one of the things is lost
the parties. Once fixed by the are impossible, unlawful or which through a fortuitous event, he
courts, the period cannot be could not have been the object of shall perform the obligation by
changed by them. (1128a) the obligation. (1132) delivering that which the creditor
should choose from among the
Art. 1198. The debtor shall lose Art. 1201. The choice shall remainder, or that which remains
every right to make use of the produce no effect except from the if only one subsists;
period: time it has been communicated.
(1133) (2) If the loss of one of the things
(1) When after the obligation has
occurs through the fault of the
been contracted, he becomes Art. 1202. The debtor shall lose debtor, the creditor may claim any
insolvent, unless he gives a the right of choice when among of those subsisting, or the price of
guaranty or security for the debt; the prestations whereby he is that which, through the fault of
(2) When he does not furnish to alternatively bound, only one is the former, has disappeared, with
the creditor the guaranties or practicable. (1134) a right to damages;
securities which he has promised; Art. 1203. If through the creditor's (3) If all the things are lost through
(3) When by his own acts he has acts the debtor cannot make a the fault of the debtor, the choice
impaired said guaranties or choice according to the terms of by the creditor shall fall upon the
securities after their the obligation, the latter may price of any one of them, also with
establishment, and when through rescind the contract with indemnity for damages.
a fortuitous event they disappear, damages. (n)
The same rules shall be applied to
unless he immediately gives new Art. 1204. The creditor shall have obligations to do or not to do in
ones equally satisfactory; a right to indemnity for damages case one, some or all of the
when, through the fault of the
prestations should become Art. 1209. If the division is share in the obligation
impossible. (1136a) impossible, the right of the corresponding to them. (1143)
creditors may be prejudiced only
Art. 1206. When only one Art. 1216. The creditor may
by their collective acts, and the
prestation has been agreed upon, proceed against any one of the
debt can be enforced only by
but the obligor may render solidary debtors or some or all of
proceeding against all the debtors.
another in substitution, the them simultaneously. The demand
If one of the latter should be
obligation is called facultative. made against one of them shall
insolvent, the others shall not be
not be an obstacle to those which
The loss or deterioration of the liable for his share. (1139)
may subsequently be directed
thing intended as a substitute,
Art. 1210. The indivisibility of an against the others, so long as the
through the negligence of the
obligation does not necessarily debt has not been fully collected.
obligor, does not render him
give rise to solidarity. Nor does (1144a)
liable. But once the substitution
solidarity of itself imply
has been made, the obligor is Art. 1217. Payment made by one
indivisibility. (n)
liable for the loss of the substitute of the solidary debtors
on account of his delay, Art. 121. Solidarity may exist extinguishes the obligation. If two
negligence or fraud. (n) although the creditors and the or more solidary debtors offer to
debtors may not be bound in the pay, the creditor may choose
same manner and by the same which offer to accept.
SECTION 4. - Joint and Solidary periods and conditions. (1140)
He who made the payment may
Obligations
Art. 1212. Each one of the solidary claim from his co-debtors only the
Art. 1207. The concurrence of two creditors may do whatever may be share which corresponds to each,
or more creditors or of two or useful to the others, but not with the interest for the payment
more debtors in one and the same anything which may be prejudicial already made. If the payment is
obligation does not imply that to the latter. (1141a) made before the debt is due, no
each one of the former has a right interest for the intervening period
Art. 1213. A solidary creditor
to demand, or that each one of may be demanded.
cannot assign his rights without
the latter is bound to render,
the consent of the others. (n) When one of the solidary debtors
entire compliance with the
cannot, because of his insolvency,
prestation. There is a solidary Art. 1214. The debtor may pay any
reimburse his share to the debtor
liability only when the obligation one of the solidary creditors; but if
paying the obligation, such share
expressly so states, or when the any demand, judicial or
shall be borne by all his co-
law or the nature of the obligation extrajudicial, has been made by
debtors, in proportion to the debt
requires solidarity. (1137a) one of them, payment should be
of each. (1145a)
made to him. (1142a)
Art. 1208. If from the law, or the
Art. 1218. Payment by a solidary
nature or the wording of the Art. 1215. Novation,
debtor shall not entitle him to
obligations to which the preceding compensation, confusion or
reimbursement from his co-
article refers the contrary does not remission of the debt, made by
debtors if such payment is made
appear, the credit or debt shall be any of the solidary creditors or
after the obligation has prescribed
presumed to be divided into as with any of the solidary debtors,
or become illegal. (n)
many shares as there are creditors shall extinguish the obligation,
or debtors, the credits or debts without prejudice to the Art. 1219. The remission made by
being considered distinct from one provisions of Article 1219. the creditor of the share which
another, subject to the Rules of affects one of the solidary debtors
The creditor who may have
Court governing the multiplicity of does not release the latter from
executed any of these acts, as well
suits. (1138a) his responsibility towards the co-
as he who collects the debt, shall
debtors, in case the debt had been
be liable to the others for the
totally paid by anyone of them
before the remission was effected. the object of obligations in which substitute the indemnity for
(1146a) there is only one debtor and only damages and the payment of
one creditor does not alter or interests in case of
Art. 1220. The remission of the
modify the provisions of Chapter 2 noncompliance, if there is no
whole obligation, obtained by one
of this Title. (1149) stipulation to the contrary.
of the solidary debtors, does not
Nevertheless, damages shall be
entitle him to reimbursement Art. 1224. A joint indivisible
paid if the obligor refuses to pay
from his co-debtors. (n) obligation gives rise to indemnity
the penalty or is guilty of fraud in
for damages from the time anyone
Art. 1221. If the thing has been the fulfillment of the obligation.
of the debtors does not comply
lost or if the prestation has
with his undertaking. The debtors The penalty may be enforced only
become impossible without the
who may have been ready to fulfill when it is demandable in
fault of the solidary debtors, the
their promises shall not contribute accordance with the provisions of
obligation shall be extinguished.
to the indemnity beyond the this Code. (1152a)
If there was fault on the part of corresponding portion of the price
Art. 1227. The debtor cannot
any one of them, all shall be of the thing or of the value of the
exempt himself from the
responsible to the creditor, for the service in which the obligation
performance of the obligation by
price and the payment of damages consists. (1150)
paying the penalty, save in the
and interest, without prejudice to
Art. 1225. For the purposes of the case where this right has been
their action against the guilty or
preceding articles, obligations to expressly reserved for him.
negligent debtor.
give definite things and those Neither can the creditor demand
If through a fortuitous event, the which are not susceptible of the fulfillment of the obligation
thing is lost or the performance partial performance shall be and the satisfaction of the penalty
has become impossible after one deemed to be indivisible. at the same time, unless this right
of the solidary debtors has has been clearly granted him.
When the obligation has for its
incurred in delay through the However, if after the creditor has
object the execution of a certain
judicial or extrajudicial demand decided to require the fulfillment
number of days of work, the
upon him by the creditor, the of the obligation, the performance
accomplishment of work by
provisions of the preceding thereof should become impossible
metrical units, or analogous things
paragraph shall apply. (1147a) without his fault, the penalty may
which by their nature are
be enforced. (1153a)
Art. 1222. A solidary debtor may, susceptible of partial performance,
in actions filed by the creditor, it shall be divisible. Art. 1228. Proof of actual damages
avail himself of all defenses which suffered by the creditor is not
However, even though the object
are derived from the nature of the necessary in order that the penalty
or service may be physically
obligation and of those which are may be demanded. (n)
divisible, an obligation is
personal to him, or pertain to his
indivisible if so provided by law or Art. 1229. The judge shall
own share. With respect to those
intended by the parties. equitably reduce the penalty when
which personally belong to the
the principal obligation has been
others, he may avail himself In obligations not to do, divisibility
partly or irregularly complied with
thereof only as regards that part or indivisibility shall be determined
by the debtor. Even if there has
of the debt for which the latter are by the character of the prestation
been no performance, the penalty
responsible. (1148a) in each particular case. (1151a)
may also be reduced by the courts
if it is iniquitous or
unconscionable. (1154a)
SECTION 5. - Divisible and SECTION 6. - Obligations with a
Indivisible Obligations Penal Clause Art. 1230. The nullity of the penal
clause does not carry with it that
Art. 1223. The divisibility or Art. 1226. In obligations with a of the principal obligation.
indivisibility of the things that are penal clause, the penalty shall
 Art. 1234. If the obligation has Art. 1239. In obligations to give,
been substantially performed in payment made by one who does
The nullity of the principal
good faith, the obligor may not have the free disposal of the
obligation carries with it that of
recover as though there had been thing due and capacity to alienate
the penal clause. (1155)
a strict and complete fulfillment, it shall not be valid, without
less damages suffered by the prejudice to the provisions of
obligee. (n) Article 1427 under the Title on
CHAPTER 4 "Natural Obligations." (1160a)
Art. 1235. When the obligee
EXTINGUISHMENT OF accepts the performance, knowing Art. 1240. Payment shall be made
OBLIGATIONS its incompleteness or irregularity, to the person in whose favor the
GENERAL PROVISIONS and without expressing any obligation has been constituted, or
protest or objection, the his successor in interest, or any
Art. 1231. Obligations are obligation is deemed fully person authorized to receive it.
extinguished: complied with. (n) (1162a)
(1) By payment or performance: Art. 1236. The creditor is not Art. 1241. Payment to a person
(2) By the loss of the thing due: bound to accept payment or who is incapacitated to administer
performance by a third person his property shall be valid if he has
(3) By the condonation or who has no interest in the kept the thing delivered, or insofar
remission of the debt; fulfillment of the obligation, unless as the payment has been
there is a stipulation to the beneficial to him.
(4) By the confusion or merger of
contrary.
the rights of creditor and debtor; Payment made to a third person
Whoever pays for another may shall also be valid insofar as it has
(5) By compensation;
demand from the debtor what he redounded to the benefit of the
(6) By novation. has paid, except that if he paid creditor. Such benefit to the
without the knowledge or against creditor need not be proved in the
Other causes of extinguishment of
the will of the debtor, he can following cases:
obligations, such as annulment,
recover only insofar as the
rescission, fulfillment of a (1) If after the payment, the third
payment has been beneficial to
resolutory condition, and person acquires the creditor's
the debtor. (1158a)
prescription, are governed rights;
elsewhere in this Code. (1156a) Art. 1237. Whoever pays on behalf
(2) If the creditor ratifies the
of the debtor without the
payment to the third person;
knowledge or against the will of
SECTION 1. - Payment or the latter, cannot compel the (3) If by the creditor's conduct, the
Performance creditor to subrogate him in his debtor has been led to believe
rights, such as those arising from a that the third person had
Art. 1232. Payment means not mortgage, guaranty, or penalty. authority to receive the payment.
only the delivery of money but (1159a) (1163a)
also the performance, in any other
manner, of an obligation. (n) Art. 1238. Payment made by a Art. 1242. Payment made in good
third person who does not intend faith to any person in possession
Art. 1233. A debt shall not be to be reimbursed by the debtor is of the credit shall release the
understood to have been paid deemed to be a donation, which debtor. (1164)
unless the thing or service in requires the debtor's consent. But
which the obligation consists has Art. 1243. Payment made to the
the payment is in any case valid as
been completely delivered or creditor by the debtor after the
to the creditor who has accepted
rendered, as the case may be. latter has been judicially ordered
it. (n)
(1157) to retain the debt shall not be
valid. (1165)
Art. 1244. The debtor of a thing the payment of the former without incurred in delay, the additional
cannot compel the creditor to waiting for the liquidation of the expenses shall be borne by him.
receive a different one, although latter. (1169a)
These provisions are without
the latter may be of the same
Art. 1249. The payment of debts in prejudice to venue under the Rules
value as, or more valuable than
money shall be made in the of Court. (1171a)
that which is due.
currency stipulated, and if it is not
In obligations to do or not to do, possible to deliver such currency,
an act or forbearance cannot be then in the currency which is legal SUBSECTION 1. - Application of
substituted by another act or tender in the Philippines. Payments
forbearance against the obligee's
The delivery of promissory notes Art. 1252. He who has various
will. (1166a)
payable to order, or bills of debts of the same kind in favor of
Art. 1245. Dation in payment, exchange or other mercantile one and the same creditor, may
whereby property is alienated to documents shall produce the declare at the time of making the
the creditor in satisfaction of a effect of payment only when they payment, to which of them the
debt in money, shall be governed have been cashed, or when same must be applied. Unless the
by the law of sales. (n) through the fault of the creditor parties so stipulate, or when the
they have been impaired. application of payment is made by
Art. 1246. When the obligation
the party for whose benefit the
consists in the delivery of an In the meantime, the action
term has been constituted,
indeterminate or generic thing, derived from the original
application shall not be made as to
whose quality and circumstances obligation shall be held in the
debts which are not yet due.
have not been stated, the creditor abeyance. (1170)
cannot demand a thing of superior If the debtor accepts from the
Art. 1250. In case an extraordinary
quality. Neither can the debtor creditor a receipt in which an
inflation or deflation of the
deliver a thing of inferior quality. application of the payment is
currency stipulated should
The purpose of the obligation and made, the former cannot complain
supervene, the value of the
other circumstances shall be taken of the same, unless there is a
currency at the time of the
into consideration. (1167a) cause for invalidating the contract.
establishment of the obligation
(1172a)
Art. 1247. Unless it is otherwise shall be the basis of payment,
stipulated, the extrajudicial unless there is an agreement to Art. 1253. If the debt produces
expenses required by the payment the contrary. (n) interest, payment of the principal
shall be for the account of the shall not be deemed to have been
Art. 1251. Payment shall be made
debtor. With regard to judicial made until the interests have been
in the place designated in the
costs, the Rules of Court shall covered. (1173)
obligation.
govern. (1168a)
Art. 1254. When the payment
There being no express stipulation
Art. 1248. Unless there is an cannot be applied in accordance
and if the undertaking is to deliver
express stipulation to that effect, with the preceding rules, or if
a determinate thing, the payment
the creditor cannot be compelled application can not be inferred
shall be made wherever the thing
partially to receive the prestations from other circumstances, the
might be at the moment the
in which the obligation consists. debt which is most onerous to the
obligation was constituted.
Neither may the debtor be debtor, among those due, shall be
required to make partial In any other case the place of deemed to have been satisfied.
payments. payment shall be the domicile of
If the debts due are of the same
the debtor.
However, when the debt is in part nature and burden, the payment
liquidated and in part If the debtor changes his domicile shall be applied to all of them
unliquidated, the creditor may in bad faith or after he has proportionately. (1174a)
demand and the debtor may effect
 Art. 1257. In order that the
consignation of the thing due may
SECTION 2. - Loss of the Thing Due
release the obligor, it must first be
SUBSECTION 2. - Payment by announced to the persons
Cession interested in the fulfillment of the
obligation. Art. 1262. An obligation which
Art. 1255. The debtor may cede or consists in the delivery of a
assign his property to his creditors The consignation shall be determinate thing shall be
in payment of his debts. This ineffectual if it is not made strictly extinguished if it should be lost or
cession, unless there is stipulation in consonance with the provisions destroyed without the fault of the
to the contrary, shall only release which regulate payment. (1177) debtor, and before he has incurred
the debtor from responsibility for in delay.
Art. 1258. Consignation shall be
the net proceeds of the thing
made by depositing the things due When by law or stipulation, the
assigned. The agreements which,
at the disposal of judicial obligor is liable even for fortuitous
on the effect of the cession, are
authority, before whom the events, the loss of the thing does
made between the debtor and his
tender of payment shall be not extinguish the obligation, and
creditors shall be governed by
proved, in a proper case, and the he shall be responsible for
special laws. (1175a)
announcement of the damages. The same rule applies
consignation in other cases. when the nature of the obligation
requires the assumption of risk.
SUBSECTION 3. - Tender of The consignation having been
(1182a)
Payment and Consignation made, the interested parties shall
also be notified thereof. (1178) Art. 1263. In an obligation to
Art. 1256. If the creditor to whom
deliver a generic thing, the loss or
tender of payment has been made Art. 1259. The expenses of
destruction of anything of the
refuses without just cause to consignation, when properly
same kind does not extinguish the
accept it, the debtor shall be made, shall be charged against the
obligation. (n)
released from responsibility by the creditor. (1178)
consignation of the thing or sum Art. 1264. The courts shall
Art. 1260. Once the consignation
due. determine whether, under the
has been duly made, the debtor
circumstances, the partial loss of
Consignation alone shall produce may ask the judge to order the
the object of the obligation is so
the same effect in the following cancellation of the obligation.
important as to extinguish the
cases:
Before the creditor has accepted obligation. (n)
(1) When the creditor is absent or the consignation, or before a
Art. 1265. Whenever the thing is
unknown, or does not appear at judicial declaration that the
lost in the possession of the
the place of payment; consignation has been properly
debtor, it shall be presumed that
made, the debtor may withdraw
(2) When he is incapacitated to the loss was due to his fault,
the thing or the sum deposited,
receive the payment at the time it unless there is proof to the
allowing the obligation to remain
is due; contrary, and without prejudice to
in force. (1180)
the provisions of article 1165. This
(3) When, without just cause, he Art. 1261. If, the consignation presumption does not apply in
refuses to give a receipt; having been made, the creditor case of earthquake, flood, storm,
(4) When two or more persons should authorize the debtor to or other natural calamity. (1183a)
claim the same right to collect; withdraw the same, he shall lose
Art. 1266. The debtor in
every preference which he may
(5) When the title of the obligation obligations to do shall also be
have over the thing. The co-
has been lost. (1176a) released when the prestation
debtors, guarantors and sureties
becomes legally or physically
shall be released. (1181a)
impossible without the fault of the the debtor, implies the latter does not extinguish the
obligor. (1184a) renunciation of the action which obligation. (1193)
the former had against the latter.
Art. 1277. Confusion does not
extinguish a joint obligation except
Art. 1267. When the service has
as regards the share
become so difficult as to be If in order to nullify this waiver it
corresponding to the creditor or
manifestly beyond the should be claimed to be
debtor in whom the two
contemplation of the parties, the inofficious, the debtor and his
characters concur. (1194)
obligor may also be released heirs may uphold it by proving
therefrom, in whole or in part. (n) that the delivery of the document
was made in virtue of payment of
Art. 1268. When the debt of a SECTION 5. - Compensation
the debt. (1188)
thing certain and determinate
Art. 1278. Compensation shall
proceeds from a criminal offense, Art. 1272. Whenever the private
take place when two persons, in
the debtor shall not be exempted document in which the debt
their own right, are creditors and
from the payment of its price, appears is found in the possession
debtors of each other. (1195)
whatever may be the cause for the of the debtor, it shall be presumed
loss, unless the thing having been that the creditor delivered it Art. 1279. In order that
offered by him to the person who voluntarily, unless the contrary is compensation may be proper, it is
should receive it, the latter proved. (1189) necessary:
refused without justification to
Art. 1273. The renunciation of the (1) That each one of the obligors
accept it. (1185)
principal debt shall extinguish the be bound principally, and that he
Art. 1269. The obligation having accessory obligations; but the be at the same time a principal
been extinguished by the loss of waiver of the latter shall leave the creditor of the other;
the thing, the creditor shall have former in force. (1190)
all the rights of action which the (2) That both debts consist in a
Art. 1274. It is presumed that the sum of money, or if the things due
debtor may have against third
accessory obligation of pledge has are consumable, they be of the
persons by reason of the loss.
been remitted when the thing same kind, and also of the same
(1186)
pledged, after its delivery to the quality if the latter has been
creditor, is found in the possession stated;
of the debtor, or of a third person
SECTION 3. - Condonation or (3) That the two debts be due;
who owns the thing. (1191a)
Remission of the Debt
(4) That they be liquidated and
Art. 1270. Condonation or demandable;
remission is essentially gratuitous, SECTION 4. - Confusion or Merger
and requires the acceptance by of Rights (5) That over neither of them
the obligor. It may be made there be any retention or
Art. 1275. The obligation is controversy, commenced by third
expressly or impliedly.
extinguished from the time the persons and communicated in due
One and the other kind shall be characters of creditor and debtor time to the debtor. (1196)
subject to the rules which govern are merged in the same person.
inofficious donations. Express (1192a) Art. 1280. Notwithstanding the
condonation shall, furthermore, provisions of the preceding article,
Art. 1276. Merger which takes the guarantor may set up
comply with the forms of
place in the person of the principal compensation as regards what the
donation. (1187)
debtor or creditor benefits the creditor may owe the principal
Art. 1271. The delivery of a private guarantors. Confusion which takes debtor. (1197)
document evidencing a credit, place in the person of any of the
made voluntarily by the creditor to Art. 1281. Compensation may be
total or partial. When the two
debts are of the same amount, be an indemnity for expenses of Art. 1292. In order that an
there is a total compensation. (n) exchange or transportation to the obligation may be extinguished by
place of payment. (1199a) another which substitute the
Art. 1282. The parties may agree
same, it is imperative that it be so
upon the compensation of debts Art. 1287. Compensation shall not
declared in unequivocal terms, or
which are not yet due. (n) be proper when one of the debts
that the old and the new
arises from a depositum or from
Art. 1283. If one of the parties to a obligations be on every point
the obligations of a depositary or
suit over an obligation has a claim incompatible with each other.
of a bailee in commodatum.
for damages against the other, the (1204)
former may set it off by proving Neither can compensation be set
Art. 1293. Novation which consists
his right to said damages and the up against a creditor who has a
in substituting a new debtor in the
amount thereof. (n) claim for support due by
place of the original one, may be
gratuitous title, without prejudice
Art. 1284. When one or both made even without the knowledge
to the provisions of paragraph 2 of
debts are rescissible or voidable, or against the will of the latter, but
Article 301. (1200a)
they may be compensated against not without the consent of the
each other before they are Art. 1288. Neither shall there be creditor. Payment by the new
judicially rescinded or avoided. (n) compensation if one of the debts debtor gives him the rights
consists in civil liability arising mentioned in Articles 1236 and
Art. 1285. The debtor who has 1237. (1205a)
from a penal offense. (n)
consented to the assignment of
rights made by a creditor in favor Art. 1289. If a person should have Art. 1294. If the substitution is
of a third person, cannot set up against him several debts which without the knowledge or against
against the assignee the are susceptible of compensation, the will of the debtor, the new
compensation which would the rules on the application of debtor's insolvency or non-
pertain to him against the payments shall apply to the order fulfillment of the obligations shall
assignor, unless the assignor was of the compensation. (1201) not give rise to any liability on the
notified by the debtor at the time part of the original debtor. (n)
Art. 1290. When all the requisites
he gave his consent, that he
mentioned in Article 1279 are Art. 1295. The insolvency of the
reserved his right to the
present, compensation takes new debtor, who has been
compensation.
effect by operation of law, and proposed by the original debtor
If the creditor communicated the extinguishes both debts to the and accepted by the creditor, shall
cession to him but the debtor did concurrent amount, even though not revive the action of the latter
not consent thereto, the latter the creditors and debtors are not against the original obligor, except
may set up the compensation of aware of the compensation. when said insolvency was already
debts previous to the cession, but (1202a) existing and of public knowledge,
not of subsequent ones. or known to the debtor, when the
delegated his debt. (1206a)
If the assignment is made without
SECTION 6. - Novation Art. 1296. When the principal
the knowledge of the debtor, he
may set up the compensation of Art. 1291. Obligations may be obligation is extinguished in
all credits prior to the same and modified by: consequence of a novation,
also later ones until he had accessory obligations may subsist
knowledge of the assignment. (1) Changing their object or only insofar as they may benefit
(1198a) principal conditions; third persons who did not give
(2) Substituting the person of the their consent. (1207)
Art. 1286. Compensation takes
place by operation of law, even debtor; Art. 1297. If the new obligation is
though the debts may be payable (3) Subrogating a third person in void, the original one shall subsist,
at different places, but there shall the rights of the creditor. (1203) unless the parties intended that
the former relation should be with all the rights thereto
extinguished in any event. (n) appertaining, either against the
debtor or against third person, be
Art. 1298. The novation is void if
they guarantors or possessors of
the original obligation was void,
mortgages, subject to stipulation
except when annulment may be
in a conventional subrogation.
claimed only by the debtor or
(1212a)
when ratification validates acts
which are voidable. (1208a) Art. 1304. A creditor, to whom
partial payment has been made,
Art. 1299. If the original obligation
may exercise his right for the
was subject to a suspensive or
remainder, and he shall be
resolutory condition, the new
preferred to the person who has
obligation shall be under the same
been subrogated in his place in
condition, unless it is otherwise
virtue of the partial payment of
stipulated. (n)
the same credit. (1213)
Art. 1300. Subrogation of a third
person in the rights of the creditor
is either legal or conventional. The
former is not presumed, except in
cases expressly mentioned in this
Code; the latter must be clearly
established in order that it may
take effect. (1209a)

Art. 1301. Conventional

subrogation of a third person
requires the consent of the
original parties and of the third
person. (n)

Art. 1302. It is presumed that

there is legal subrogation:

(1) When a creditor pays another

creditor who is preferred, even
without the debtor's knowledge;

(2) When a third person, not

interested in the obligation, pays
with the express or tacit approval
of the debtor;

(3) When, even without the

knowledge of the debtor, a person
interested in the fulfillment of the
obligation pays, without prejudice
to the effects of confusion as to
the latter's share. (1210a)

Art. 1303. Subrogation transfers to

the persons subrogated the credit