Article 1231. Obligations are extinguished: Show
(1) By payment or performance: (2) By the 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. by: Janine Gumangol Payment-means not only the delivery of money but also the performance, in any other manner, of an obligation. Condonation-It is the gratuitous abandonment by the creditor of his right. Confusion or Merger– It is the meeting in one person of the qualities of creditor and debtor with respect to the same obligation. Compensation-It is the extinguishment in the concurrent amount of the obligations of those persons who are reciprocally debtors and creditors of each other. Legal compensation-takes place by operation of law when all the requisites are present. Conventional Compensation-takes place when the parties agree to compensate their mutual obligations even in the absence of some requisites. Novation-the replacement of an old contract with a new one, by changing the object or principal conditions; substituting the person of the debtor; and subrogating a third person in the right of the creditor. SECTION 1. – Payment or Performance Article 1232. Payment means not only the delivery of money but also the performance, in any other manner, of an obligation. Ang pagbabayad ay hindi lamang sa pagdadala ng pera kundi din sa pagtupad ng obligasyon sa maayos na pamamaraan sa obligasyon. This Article manifested that the different ways of payment of an obligation is through delivery of money or performance of obligation in any manner. Payment may consist of not only in the delivery of money but also the giving of a thing (other than money), the doing of an act, or not doing of an act. Example:
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. by: Rose Ann Villanueva Ang isang utang ay hindi uunawain na bayad maliban kung ang bagay o serbisyo kung saan ang obligasyon ay ganap ng naihatid o naisagawa sa kung alinman. A debt may refer to an obligation to deliver money, to deliver a thing (other than money), to do an act or not to do an act. It must be on the currency agreed on, and in the time and place stipulated. The thing delivered or service rendered must be exactly that which was the object of negotiation. Example: Sioti promised to pay P1,500.00 to Nicco for a Ukulele. Sioti is only giving P1,000.00 to Nicco. Nicco can refuse to accept the P1,000.00 because the fulfillment is not complete.  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. by: Bryan Glenn Fabiaña Kapag ang obligasyon ay malapit nang matupad sa magandang loob, ang may obligasyon ay maaring maka kolekta na parang may mahigpit at kumpletong pagtupad, ibabawas ang pinsala na natamo ng taong pinaguukolan ng obligasyon. There is substantial compliance by the debtor when in good faith he has attempted to perform the contract or prestation but through excusable neglict or oversight, he failed to make full and complete performance for which the other party may be indemnified. If there is substantial compliance the obligor may recover as though there has been complete fulfillment minus the amount of damages suffered by the obligee. EXAMPLE Serafin obliged himself to sell one thousand (1,000) bags of cement to Bert for a certain price. However, despite diligent effort on his part, Serafin was able to deliver only nine hundred fifty bags (950) because of the cement shortage. Serafin wants to comply with his obligation to deliver the entire obligation but he could not do so for reasons beyond his control. Under the law, Serafin can recover as though there had been complete delivery less the price of the fifty bags. Bert can not require Serafin to deliver first the remaining fifty bags as a condition to his liability for the price. He must pay for the 950 bags and enforce his right for damages for failure of Serafin to deliver the difference. It is incumbent upon Serafin however to explain satisfactorily his failure to make complete delivery. Article 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with. By: Jayson Calventas Kapag tinanggap ng obligee ang pagganap, samantalang nalalaman nito na ito ay di kumpleto o iregular, at nang walang pagpapahayag ng anumang protesta o pagtutol, ang obligasyon ay ituturing na lubos na nasunod. NOTE: In case of acceptance, the law considers that the creditor waives his right under the principle of estoppel. The whole obligation is extinguished Article 1235 NCC | speaks of… Requisites:
NOTE: If payment is incomplete/irregular, the creditor may properly reject it.
NOTE: Mere receipt of partial payment is NOT equivalent to acceptance of performance by the creditor. Form of protest
Article 1235 NCC | examples:
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. Whoever pays for another may demand from the debtor what he has paid, except that if he paid without the knowledge or against the will of the debtor, he can recover only insofar as the payment has been beneficial to the debtor. By: Jeirome Domingo 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. By: Johannes Aquino Artikulo 1237. Kung sino man ang nagbayad para sa kapakanan ng debtor na walang kaalaman o pahintulot ng debtor ay hindi maaring pwersahin ang creditor na akuin ang kanyang karapatan, katulad ng sangla, garantiya, o parusa. Right of third person to subrogation. Whoever pays on behalf of the debtor is entitled to subrogation if the payment is with the consent of the latter. (Arts. 1237, 1302[2].) If the payment is without the knowledge or against the will of the debtor, the third person cannot compel the creditor to subrogate him in the latter’s accessory rights of mortgage, guaranty, or penalty. May there be subrogation, if the creditor willingly permits the payor to be subrogated in his rights? Since the provision of Article 1237 is for the benefit of the debtor, the subrogation can only take place with his consent. The third person who without necessity paid under such condition is amply protected by his right to reimbursement. Illustration Kris borrowed from Gretchen P1,000.00. Bimby is the guarantor. Without the knowledge or consent of Kris, Penoy paid Gretchen P1,000.00. In this case, Peny can claim reimbursement from Kris for the whole amount of P1,000.00 inasmuch as Kris was benefited up to that amount. If Kris cannot pay Penoy, the latter cannot proceed against Bimby, the guarantor (even if Gretchen is willing) because, having paid without the consent of Kris, Penoy is not entitled to subrogation. But if the payment was with the express or tacit approval of Kris, Penoy would be entitled not merely to full reimbursement but also to subrogation. Suppose the obligation of Kris is secured by a mortgage of a land owned by her. Payment by Penoy without the knowledge or against the will of Kris, cannot give Penoy the right to foreclose the mortgage because he has no right to subrogation. Penoy can recover only insofar as the payment has been beneficial to Kris. 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. By: Kristia Capio Artikulo 1238. Ang bayad na ibinigay ng ikatlong tao para sa inutang ng isang tao na hindi na inaasahang maibalik ang kabayaran sa kanya ay kinokonsidera na isang donasyon, na nangangailangan ng kaalaman ng nagpautang. Ito ay may bisa kung sakalit tinanggap ito ng nagpautang. PAYMENT BY A THIRD PERSON WHO DOES NOT INTEND TO BE REIMBURSED Article 1238 “embodies the idea that no one should be compelled to accept the generosity of another.” If the paying third person does not intend to be reimbursed the payment is deemed a donation which requires the debtor’s consent to be valid. However, if the creditor accepts the payment, it shall be valid as to him and the payor although the debtor did not give his consent to the donation. EXAMPLE Cardo owes Alyana P1,000.00. Without the intention of being reimbursed, Nena paid Cardos’s obligation. Cardo had previously accepted Nenas’s generosity. In this case, Cardo is not liable to Nena and his obligation to Alyana is extinguished. But if Cardo did not consent to the donation, Nena may recover from Cardo since there has been no donation, although originally Cardo did not intend to be reimbursed. Nevertheless, the obligation of Cardo to Alyana is extinguished because the payment is valid as to Alyana who has accepted it. 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.” by: Bryan Glenn Fabiaña Sa obligasyong magbigay, ang kabayarang ibinigay ng isang tao na walng kakayahang mag pasya sa bagay na dapat ibigay at kakayahang mag lipat sa iba ng nasabing ay walang bisa. Comment: This article deals with obligation to give. The payor must have the free disposal of the thing paid, otherwise the payment is not valid. Payor who does not have the capacity to alienate the thing such as when he is a non-compos mentis (not of a sound mind) the payment is not valid and it can be annulled unless it is made by minors under article 1427 which states that: ” money or fungible goods delivered by a minor can no longer be recovered if they have been consumed by the creditor in good faith. Illustration: Suppose Ernesto a forty year old insane transfer the title of his land to Tomas, his creditor for the satisfaction of his debt. Such transfer is not valid since the insane has no legal capacity. However, further reading of the law will tell us that not all the transactions of an insane person are invalid. transactions done during the lucid intervals are valid. 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. By: Janine Gumangol To Whom payment Must Be made a. To the person in whose favor the obligation has been constituted (the creditor); b. to the successor-in-interest (like the heirs); or c. to any person authorized to receive it. Arcache v. Lizares & Co. 91 Phil. 348 FACTS: D owed C. Instead of paying C, D deposited the money in a bank in the name and for the credit of C. All these were done without C’s permission. ISSUE: Has the debt been extinguished? HELD: No. But if after efforts had been made, the creditor could not be found, particularly at the place were payment is supposed to be made, the debtor cannot be held guilty of default. Article 1241. 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. By: Algy Riguer Payment made to the Incapacitated Creditor, Effects If the payment made to the incapacitated creditor who cannot administer his property did not benefit him or he has not kept the thing delivered, the debtor may be compelled by the creditor to pay a new when he regains capacity, or by the latter’s representative during the time of the incapacity of the creditor. Inversely, if the incapacitated creditor has kept the thing delivered or he benefited from the payment he received, the debtor is released from his obligation by virtue of payment. During the creditor is incapacitated and to cannot administer his own property, should be given to his legal representative, if there is none the debtor may consign the thing in the court. Example If A owes B, then the obligation matures, suddenly B got involved in a car accident that caused him to suffer coma. Either A can choose to pay B by paying his medical expenses or consign his payment to the court. A’s payment will be valid as long as the payment he made will be beneficial to the incapacitated creditor. Article 1242. Payment made in good faith to any person in possession of the credit shall release the debtor. by: Rose Ann Villanueva Ang pagbabayad ng may utang na ginawa nang walang daya o malisya sa tao na may hawak ng utang ay magpapalaya sa nangutang sa kaniyang obligasyon. Example Nicco owes Hezekiah P100.00. Hezekiah lost the promissory note given by Nicco. Nanay found the promissory note and demanded payment from Nicco. Possession of credit does not refer to the real creditor or his heirs, or the person authorized by him or by law under Article 1240. It refers to the person who has the appearance of the creditor but who actually is not. Document evidencing the credit is not the credit itself. 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. By: Janine Gumangol Ang pagbayad ng nangutang sa nagpautang pagkatapos ang nangutang ay nauatusan ng hukuman na ipapanatili ang utang ay walang bisa. Instances
Examples
Janine does not need to pay Richard a second time. At the beginning, the payment was not valid, but the defect here has been cured by the dismissal of the garnishment proceedings.. It is as if there never had been any judicial order asking Janine to retain the debt. Moreover, why should Richard, the creditor, be paid twice for the same debt? To hold that he should be is to allow a travesty of justice, an undue enrichment of Richard.
No, because under the Rules of Court, the credit must be given to the clerk, sheriff, or other proper officer of the court. (Section 8, Rule 57, Revised Rules of Court)
Mario has in his possession some merchandise, to be delivered to the person who presents the proper receipt. Ernie and Fely, each has receipt, ask Mario to turn over the property to one of them. An examination of the receipts reveals that they are of exactly the same kind. Mario does not know to whom he should deliver the property. So he files an action in court by means of which Ernie and Fely will be able to settle their conflicting rights. He court then issued an order prohibiting payment to either Ernie or Fely in the meantime. Despite the receipt of the order, Mario paid Ernie who is the brother of the latter’s sweetheart. Is said payment valid? No. the payment here was made after the debtor had been judicially ordered to retain the debt. Evidently, Mario cannot say he paid Ernie in good faith. He had ulterior motives for his act, otherwise he would not have disobeyed the lawful order of the court. Under the law, therefore, Mario is deemed to be a payor in bad faith.
Example: Ferlyn owes Leah a sum of money. When Ferlyn is about to pay leah, the relatives of the latter move to stop the payment on the ground that Leah appears to be insane. However, proceedings in court to determine Leah’s sanity are still in progress. Seeing Ferlyn’s determination to pay, the relatives of Leah ask the court for a writ of preliminary injunction restraining Ferlyn from paying Leah in the meantime. Would it be advisable to pay Leah despite said injunction? Answer: No, it would not be advisable for Ferlyn to pay while she is under injunction; otherwise, her payment would not be valid since this would then be payment made to the creditor by the debt after the latter has been judicially ordered to retain the debt. 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. In obligations to do or not to do, an act or forbearance cannot be substituted by another act or forbearance against the obligee’s will. by: Jayson Calventas Ang nangutang ng isang bagay ay hindi maaaring pumilit sa nagpautang na tumanggap ng ibang bagay, bagaman ang huli ay maaaring kapareho ng halaga, o mas mahalaga kaysa sa kung ano ang nararapat. Sa mga obligasyon na gagawin o hindi gagawin, ang isang pagkilos o pagtitiis ay hindi maaaring mapalitan ng isa pang pagkilos o pagtitiis nang laban sa kalooban ng obligee. NOTE: Forbearance is the action of refraining from exercising a legal right, esp. enforcing the payment of debt. Article 1244 NCC | speaks of… Substitution of prestation
DATION – delivery and transmission of ownership of a thing by the debtor to the creditor as an accepted equiv. of the perf. of obl. NOVATION – extinguishment of an obl. by the substitution/change of obl. by a subsequent one w/c extinguishes/modifies the first Waiver of defects
– he expressly so desires – w/ knowledge thereof, he accepts the thing w/o protest or disposes of it or consumes it 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. By: Jeirome Domingo 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. By: Johannes Aquino Kung ang obligasyon ay ang pagbibigay ng pangkaraniwang bagay na hindi nasasaad ang kalidad, hindi maaring mamwersa ng mataas na uri ang creditor, gayundin hindi maaring magbigay ng mababang uri ang debtor. Ang layunin ng obligasyon at iba pang konsiderasyon ay bibigyan ng pansin. Rule of the medium quality. If the obligation consists in the delivery of a specific thing, the very thing due must be delivered. However, if the obligation is to deliver a generic thing, the purpose of the obligation and other circumstances shall be taken into consideration to determine the quality or kind of thing to be delivered. Article 1246 is a principle of equity in that it supplies justice in cases where there is lack of precise declaration in the obligation of the quality or kind of thing to be delivered. It is always hard to find one thing that is exactly similar to another. If there is disagreement between the parties, the law steps in and determines whether the contract has been complied with or not according to the circumstances. The benefit of this article may be waived by the creditor by accepting a thing of inferior quality and by the debtor by delivering a thing of superior quality. Illustration: Dora promised to deliver to Dody a horse. Dody cannot compel Dora to deliver a price-winning race horse. Neither can Dora require Dody to accept an old sickly horse. 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. By: Kristia Capio Artikulo 1247. Maliban na ito ay napagkasunduan, ang mga gastusin na hindi sakop ng hukuman na kinakailangan sa pagbabayad ay dapat na nasa talaan ng nangutang. Para naman sa mga halaga na pang hukuman, ang pamantayan ng hukuman ang dapat na mamahala. GENERAL
RULE: The debtor has to pay for the extrajudicial expenses incurred during the payment. It is the debtor who benefits primarily, since his obligation is thus extinguished. DEBTOR PAYS FOR EXTRAJUDICIAL EXPENSES The extrajudicial expenses of payment are for the account of the debtor. The reason is that the obligation is extinguished when payment is made and it is, therefore, the debtor who is primarily benefited. If the parties have made a stipulation as to who will bear the expenses, then their stipulation shall be followed. Article 1247 does not apply to expenses incurred by the creditor in going to the debtor’s domicile to collect. (Art. 1251.) LOSING PARTY GENERALLY PAY JUDICIAL COSTS Judicial costs are the statutory amounts allowed to a party to an action for his expenses incurred in the action. Under the Rules of Court (Sec. 1, Rule 142.), the costs of an action shall, as a rule, be paid by the losing party. The court may, however, for special reasons, adjudge that either party shall pay the costs, or that the same be divided, as may be equitable. No costs are allowed against the Government, unless otherwise provided by law. ILLUSTRATION But let’s say for example, Iron Man failed to make the payment for 4 months despite oral demands. Captain America wish to have Iron Man vacate the property and collect the unpayed rental fee. He then seek the service of Atty. Hulk and paid a fee of P 5, 000.00 . Two (2) demand letters sent via registered mail and incurred P 350.00 for such. Later on, Iron Man, forwarded his intent to vacate the apartment and make the payment for his debt, which shall include the unpaid rental and the expenses incurred upon hiring legal service. 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. However, when the debt is in part liquidated and in part unliquidated, the creditor may demand and the debtor may effect the payment of the former without waiting for the liquidation of the latter. by: Bryan Glenn Fabiaña Maliban na lamang kung may roong inihayag na kasunduan, yaong epekto, ang nag papautang ay hindi maaring pilitin na tanggapin ang isang bahagi nang bagay na ibibigay, pagganap at pinag babawal na gawin sa nilalaman ng obligasyon. At lalong hindi maaring ipilit sa nagkakautang na mag bigay ng isang bahagi lamang. Comment: The debtor cannot make a partial payment or partial performance to the creditor unless there is an express agreement to that effect. The creditor therefore can refuse a partial payment or performance. Conversely, the debtor cannot be compelled to make partial payment or performance if he is ready to make a full payment. Illustrations: Apolonio obligated himself to finish the construction of the house of Bilbo with eight bed rooms within a period of eight months. Apolonio cannot compel Bilbo to recieve the house where only four bed rooms had been finished, unless Bilbo agrees thereto. Conversely Apolonio cannot be compelled by Bilbo to finish the eight bed rooms part by part at sparsely divided periods, because the interruptions in the construction may adversely affect affect the efficiency and convenience of the contractors. His workers may be engaged by other contractors during the interim periods and he may not be able to pull them out immediately when he needs them for the continuation of the construction. 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 the abeyance. By: Janine Gumangol 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 though the fault of the creditor they have been impaired. In the meantime, the action derived from the original obligation shall be held in abeyance. Legal Tender- It is that which a debtor may compel a creditor to accept in payment of the debt (whether public or private) De Asis Versus Buenviaje, et. al. 45 O.G. No. 1, p.317 Facts: Aby sold Danjo some properties during the Japanes occupation. Aby received war notes as payment. After liberation, Aby sought to recover the properties on ground that the money paid to him was worthless. Issue: Is Aby correct? Held: Aby is not correct. Because Aby willingly sold said properties and benefited with the use of the purchase money, he cannot now, on the ground, attack the validity of the sale. The Japanese war notes were legal tender during the occupation and in March 1943, when the sale in question was made, they were at par with Philippine currency. Those who sold their properties then and voluntarily accepted said notes in payment thereof have to suffer the consequences when the notes depreciated in value or became worthless. Mondejar versus Nicolo 43 O.G. No. 12, p. 5099 (When emergency notes ceased to be Legal Tender) Facts: Bing was a sub-lessor, and Sony, a sub-lessee. In payment of rentals, Sony was paying Bing “emergency notes” but since Bing did not want to accept, Sony deposited the money with the Municipal Treasurer’s Office on April 7, 1945. It was proved, however, that on said date, the emergency notes were no longer legal tender. Issue: Was the deposit in the office equivalent to payment? Held: No, said deposit was not equivalent to payment because at that time, the ‘emergency notes’ were no longer legal tender. They were good only up to November 18, 1944 by virtue of EO 25. 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. By: Algy Riguer The inflation or deflation in this case must be extraordinary, meaning it is not a universal trend which did not spare the country. Extraordinary inflation exists when there is a decrease or increase in the purchasing power of the Philippine currency which is unusual of beyond the common fluctuation on the valued of said currency, and such increase or decrease could not have been reasonably foreseen or was manifestly beyond the contemplation of the parties at the time of the establishment of the obligation. Meaning of inflation and deflation (1) Inflation is a sharp sudden increase of money or credit or both without a corresponding increase in business transaction. Inflation causes a drop in the value of money, resulting in rise of the general price level. (2) Deflation is the reduction in volume and circulation of the available money or credit, resulting in a decline of the general price level; it is the opposite of inflation. EXAMPLE D borrowed from C P5,000.00 payable after five (5) years. On the maturity of the obligation, the value of P5,000.00 dropped to P2,500.00 because of inflation (or increased to P10,000.00 because of deflation). In this case (assuming there is extraordinary inflation or deflation), the basis of payment shall be the equivalent value of the currency today to that five (5) years ago. Hence, D is liable to pay B P10,000.00 (or P2,500.00) unless there is an agreement to the contrary, e.g., that D shall pay C P5,000.00 regardless of any extraordinary decrease or increase in the purchasing power of the peso. Note: The provision of Article 1250 requires for its application a declaration of inflation or deflation by the Central Bank. Without such declaration, creditors cannot demand an increase, and debtors, a decrease of what is due to or from them. Article 1251. 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. These provisions are without prejudice to venue under the Rules of Court. by: Rose Ann Villanueva Ang kabayaran ay dapat gawin sa lugar kung saan itinalaga ang obligasyon. Na walang nakasaad na stipulasyon at kung ang layunin ay magdala ng bagay, ang kabayaran ay dapat gawin kung saan ang bagay sa sandaling ang obligasyon ay ginawa. Sa kahit anong kaso ang lugar ng pagbabayad ay dapat sa tirahan ng nangutang. Kung ang nagutang ay nagbago ng lugar na tinitirhan sa masamang intension/hangarin o pagkatapos siyang mahuli sa pagbabayad, ang dagdag na gastos ay maipapataw sa kanya. Ang probisyon na ito ay walang kinalalaman sa lugar na tinutukoy sa Rules of Court. Venue is the place where a court suit or action must be filed or instituted. Domicile is the place of the person’s habitual residence; the place where he has his true fixed permanent home and to which place he, whenever he is absent, has the intention of returning. Residence is only an element of domicile. It simple requires bodily presence as an inhabitant in a given place. Example Mikibihon obliged himself to deliver to Pancitulit a specific pack of noodle. It was agreed that the noodle shall be delivered at Pancitulit’s house. The house of Pancitulit shall be the place of delivery. When the obligation consists in the delivery of a generic thing whose quality and circumstances have not been agreed upon?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.
When the obligation consists in the delivery if a generic thing may the loss of a thing of the same class extinguish the obligation Why?In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation. Article 1264. The courts shall determine whether, under the circumstances, the partial loss of the object of the obligation is so important as to extinguish the obligation.
What must be delivered when the obligation consists of delivery of a specific thing the delivery of a generic thing?If the subject of an obligation is the delivery of a specific thing, the person making performance must deliver the thing in connection in which it is at the same time when delivery is to be made.
What is generic thing in obligation?Indeterminate or generic thing— is something which is not particularized or specified but has reference only to a class or genus. Example: a car. Article 1163 speaks of the diligence of a good father of a family.
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When the obligation consists in the delivery of a generic thing whose quality and circumstances?
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