LAW 1

OBLIGATIONS & CONTRACTS

Instruction: Use the same logbooks you used for the Midterm. Answer the following questions:

115. What are the different modes of extinguishing obligations?
116. Define payment.
117. May a third person compel the creditor to accept payment or performance of an obligation?
118. If a third person pays an obligation, what are the rights which are available to him?
119. To whom must payment be made?
120. Suppose that payment is made to a person other than those stated in Art. 1240 of the CC, what is the effect?
121. According to the Code (Art. 1241), payment made to third person shall be valid insofar as it has redounded to the benefit of the creditor. When is such benefit to the creditor presumed?
122. In domestic monetary obligations, in what currency shall payment be made?
123. What is meant by legal tender?
124. Can a monetary obligation be paid with promissory note payable to order, or bills of exchange, or other mercantile documents? Why?
125. What are the exceptions to the above rule? Explain and illustrate.
126. In case an extraordinary inflation or deflation of the Philippine currency should supervene, what value will be the basis of payment – will it be the value of the currency at the time of the establishment of the obligation or the value at the time of payment?
127. What is meant by extraordinary inflation or deflation of the currency? In order that the rule in Art. 1250 of the CC is applicable, what requisites must be present?
128. Is the rule applicable to obligations arising from torts?
129. Under the CC, what are the different special forms of payment?
130. Define application of payment and give its essential requisites.
131. What are the exceptions to the rule that in application of payment, there must be only one debtor and only one creditor?
132. To whom does the right to make an application of payment belong?
133. What is meant by legal application of payment?
134. Define dation in payment?
135. What law governs dation in payment? Give an example.
136. Define payment by cession and give its essential requisites.
137. What are the different kinds of payment by cession?
138. Distinguish between dation in payment and payment by cession.
139. Define tender of payment and consignation. Distinguish between the 2.
140. What are the special requisites of consignation?
141. Define loss of the thing due.
142. What requisites must concur in order that an obligation shall be extinguished by the loss or destruction of the thing due?
143. What are the exceptions to the above rule?
144. In obligations to do, what is the effect if the prestation which constitutes the object of the obligation becomes legally or physically impossible?
145. Define condonation or remission.
146. What requisites must concur in order that an obligation shall be extinguished by remission?
147. What are the different kinds of remission?
148. In express remission of obligation, what are the formalities which must be complied with in order that the remission or condonation shall be valid?
149. Give 2 examples of implied remission?
150. Define confusion.
151. What requisites must concur in order that an obligation shall be extinguished by confusion?
152. Define compensation.
153. What requisites must concur in order that an obligation shall be extinguished by compensation?
154. What are the different kinds of compensation?
155. How is compensation distinguished from payment, confusion, and counterclaim?
156. In No.2 of Art. 1279 of the CC, the law declares that in order that compensation may be proper, it is necessary that both debts consist in a sum of money, or if the things due are consumable, they must be of the same kind, and also of the same quality, if the latter has been stated, What is meant by “consumable things” under this provision?
157. In No. 5 of the same article, the law declares that it is necessary that there must be no retention or controversy commenced by third person and communicated in due time to the debtor over either of the debts. What is meant by “retention or controversy commenced by the third persons”?
158. What debts are not susceptible of compensation?
159. Define novation?
160. What are the different kinds of novation?
161. What requisites must concur in order that an obligation shall be extinguished or modified by novation?
162. In order that an obligation may be impliedly extinguished by another which substitutes the same, it is imperative that the old and new obligations must be incompatible with each other on every point. What is the test of incompatibility between the old obligation and the new obligation?
163. Suppose that in a second and new contract, the debtor acknowledges or ratified the new contract, is there a novation? Reason.
164. Suppose that in second and new contract, there is a postponement of the date of payment or an extension of the period of payment is there a novation? Reason.
165. Suppose that in second and new contract, there is another method of payment agreed upon, or there is an additional security, is there a novation? Reason.
166. Suppose that in second and new contract, a surety bond is filed, or a third person assumes payment of the obligation and the creditor even accepts partial payment from such third person, is there a novation?
167. If the period of the payment of an obligation is shortened from 4 years to 2 years, is there a novation of the obligation? Why?
168. Suppose that, instead, there is an extension of 2 years from payment, will that make a difference in your answer? Why?
169. What are 2 forms of novation by substitution of the person of the debtor? Define them and give their essential requisites.
170. In expromision, suppose that the new debtor eventually paid the obligation when it became due and demandable, what are the rights which are available to him?
171. In delegacion, suppose that the new debtor eventually paid the obligation when it became due and demandable, what are the rights which are available to him?
172. In expromision, if the new debtor is unable to pay the obligation by reason of insolvency, can the creditor then proceed against the old debtor for payment?
173. In delegacion, if the new debtor is unable to pay the obligation by reason of insolvency, can the creditor then proceed against the old debtor for payment?
174. What are the 2 forms of novation by subrogating a third person in the rights of the creditors?
175. Distinguish between conventional subrogation and assignment of rights.
176. What are the different exceptions to the rule that legal subrogation cannot be presumed?
177. What is the effect of subrogation?