1231 — different types of Extinguishment 1237.
of Obligation
Subrogatory Action
Section 1. Payment or Performance
1238.
1232.
Payment by 3rd person without the intent
Payment = Performance to be reimbursed = Donation
1233. 1239.
Requisites of Payment Di ko gets
1. Integrity of the prestation 1240.
2. Identity of the prestation To whom payment must be made:
1234. 1. Obligee or creditor
Substantial Performance in good faith 2. Successor in interest
1235. 3. Person authorized to receive
Accepts the performance knowing its Wrong payment = not valid
incompleteness
1241.
1236.
Payment to incapacitated is valid if he kept
Who shall perform: it or he benefits from it.
1. Debtor Payment to third person is valid if it
benefits the creditor.
2. 3rd person with interest
1242.
3. 3rd person without interest but bound
by law Payment made in good faith to a person in
possession of the credit shall release the
Payment of 3rd person with knowledge of
debtor.
debtor
1243.
1. Reimbursement
Payment with judicially ordered to retain is
2. Subrogation
not valid.
Payment of 3rd person without knowledge
1244.
of debtor
Debtor can't compel creditor to receive
1. Reimbursement
another
1245. 1251.
Dation in payment — property is the Where the payment should be made:
payment of a monetary debt
1. Designated place
1246.
2. No stipulation and deliver determine
Obligation to deliver indeterminate or thing = the moment the obligation was
generic thing: consituted
— Creditor can't demand superior quality 3. Other case = domicile of debtor
— Debtor can't deliver inferior quality Subsection 1. Application of Payment
1247. 1252.
Extrajudicial expenses is in account of Debtor must decide where the payment
debtor unless stipulated otherwise. will apply
1248. Application of payment — designation of
debt to which should be applied the
— Creditor can't be compelled to receive
payment made by debtor
partial payment.
1253.
— Debtor can't be compelled to pay
partial. Payment of interest before principal
— Creditor can demand partial payment if 1254. (No application by debtor or
it's liquidated and unliquidated creditor)
1249. The payment shall deem the most onerous
to the debtor
Legal tender — currency which if offered
by the debtor in the right amount If the debts are same nature and burden,
payment shall apply to all in
1, 5, 10 coins — up to 1000
proportionately
Cents — up to 100
Subsection 2. Payment by Cession or
Payment is promissory note or document Assignment
will only take effect if it has been cashed.
1255.
1250. (Di ko masyadong gets)
Debtor may cede or assign his properties
Value of the currency where the contract to creditors
was made, not the time of payment.
Subsection 3. Tender of payment and Section 2. Loss of the thing Due
Consignation
1262.
1256.
Loss of determinate thing = extinguished
Tender of payment — the act, on the part
By law or stipulation, loss of determinate
of debtor, of offering to the creditor the
thing = not extinguished
thing or amount due.
1263.
Consignation — the act of depositing the
thing due with the court or judicial Loss of indeterminate thing = not
authorities whenever the creditor cannot extinguished
accept or refuses payment
1264.
1257.
Partial loss of specific thing = the court will
Consignation must be announced to decide
persons interested to take effect
1265.
1258.
If the thing is lost in debtor, it is presume
Consignation shall be made by depositing that it is his fault
to judicial authority
1266.
1259.
Obligation to do is legally or physically
Consignation is expense of creditor impossible = extinguished
1260. 1267.
Consignation = cancelation of obligation The service is difficult = extinguished in
part or whole
Before the declaration of court or
acceptance of the creditor, debtor can 1268.
withdraw the thing but obligation is retain.
Criminal offense = not extinguished
1261.
1269.
If the consignation has been made,
Extinguished by loss, creditor has all right
creditor may authorize debtor to withdraw
of action
but he loses his preference. Guarantor, co-
sign will be released.
