Judie Mae Demello

Article 1156. An obligation is a the latter may not recover what

juridical necessity to give, to do or has been delivered or rendered by
not to do. (n)
Obligation- derived from the latin reason thereof.
word obligatio which means or
binding. Essential Requisites of An
- A tie or bond recognized by law
Obligation
by virtue which one is bound in Passive subject (debtor or obligor)-
favor another to render something. the person who is bound to the
Civil code- merely stresses the fulfillment of the obligation; he who
has a duty.
duty under the law of the debtor or Active subject (creditor or obligee)-
obligor when it speaks of the person who is entitled to
obligations as a jurisdical necessity. demand the fulfillment of the
obligation; he who has aright.
Object or Prestation (subject matter
Juridical Necessity- case of of obligation)- the conduct required
to be observed by the debtor.
noncompliance, the court of justice
Jurisdical or Legal tie (efficient
may be called upon by the cause)- which binds or the parties
aggrieved party to enforce its to the obligation.obligation
fulfillment or, in default thereof, the
economic value it represents.
- the debtor must comply with his
Article 1157. Obligations arise from:
obligation whether he likes it or not; (1) Law;
otherwise, his failure will be visited (2) Contracts;
with some harmful or undesirable (3) Quasi-contracts;
consequences. (4) Acts or omissions punished by
law; and
(5) Quasi-delicts. (1089a)
Nature of Obligations Under the
Civil Code
Civil Obligations- give to the Article 1158. Obligations derived
creditor or obligee a right under from law are not presumed. Only
those expressly determined in this
the law to enforce their Code or in special laws are
performance in court of justice. demandable, and shall be regulated
by the precepts of the law which
Natural Obligations- do not grant establishes them; and as to what
has not been foreseen, by the
a right of action to enforce their provisions of this Book. (1090)
performance although in case of Article 1159. Obligations arising
voluntary fulfilment by the debtor, from contracts have the force of law
between the contracting parties
Law1 Obligation and Contracts
 Judie Mae Demello
and should be complied with in Civilliabilitywithoutcriminal
good faith. (1091a) liability-apersonnotcriminally
responsiblemaystillbeliable
civilly,suchasfailuretopaya
Article 1160. Obligations derived contractualdebt,orwhenthe
from quasi-contracts shall be obligationarisesfromquasi-delict,
subject to the provisions of Chapter notallegedandprovedasacrimina
1, Title XVII, of this Book. (n)
l offense.
Kinds of quasi-contracts Scopeofcivilliability
Restitution
Negotiorum Gestio- the Reparation for the
voluntary management of the damage caused
property or affairs of another Indemnification
for consequential damages
without the knowledge or consent
of the latter.
Solutio indebiti- the juridical
Article 1162. Obligations derived
relation which is created when from quasi-delicts shall be governed
something is received when there by the provisions of Chapter 2, Title
XVII of this Book, and by special
is no right to demand it and it was laws. (1093a)
unduly delivered through mistake. Requisites of quasi-delict
Other examples of quasi- (1) act or omission

contract- provided in article 2164 (2) fault or negligence

to 2175 of the civil code. (3) damage caused

Article 1161. Civil obligations arising (4) a direct relation or connection

from criminal offenses shall be of cause and effect between the
governed by the penal laws, subject
to the provisions of article 2177, and act or omission and the damage
of the pertinent provisions of
Chapter 2, Preliminary Title, on (5) no pre-existing contractual
Human Relations, and of Title XVIII relation between the parties
of this Book, regulating damages.
(1092a) Crime distinguished from quasi-
CivilLiabilityArisingfromCrime delict
s or Delicts (1) There is criminal or malicious
Civilliabilityinadditionto indent or criminal negligence, while
criminal liability- the
commission in quasi-delict, there is only
ofacrimecausesnotonlymoral negligence
evil but also material damage (2) The purpose is punishment,
Criminalliabilitywithoutcivil while in quasi-delict,
liability-Incrimewhichcauseno indemnification of the offended
materialdamage,there’snocivil party
liability to be enforced
(3) Crime affects public interest,

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 Judie Mae Demello
while quasi-delict concerns private CHAPTER 2 Nature and Effect of
interest Obligations
(4) There are generally two Article 1163. Every person obliged
liabilities: criminal and civil, while in to give something is also obliged to
quasi delict, there is only civil take care of it with the proper
diligence of a good father of a
(5) Criminal liability cannot be family, unless the law or the
compromised or settled by the stipulation of the parties requires
another standard of care. (1094a)
parties themselves, while the
liability for quasi delict can be
Article 1164. The creditor has a right
compromised as any other civil to the fruits of the thing from the
liability time the obligation to deliver it
arises. However, he shall acquire no
(6) The guilt of the accused must real right over it until the same has
be proved beyond reasonable been delivered to him. (1095)
doubt, while in quasi-delict, the
fault or negligence of the Article 1165. When what is to be
delivered is a determinate thing, the
defendant need only be proved creditor, in addition to the right
granted him by article 1170, may
compel the debtor to make the
delivery.
If the thing is indeterminate or
generic, he may ask that the
obligation be complied with at the
expense of the debtor.
If the obligor delays, or has
promised to deliver the same thing
to two or more persons who do not
have the same interest, he shall be
responsible for any fortuitous event
until he has effected the delivery.
(1096)

Article 1166. The obligation to give a

determinate thing includes that of
delivering all its accessions and
accessories, even though they may
not have been mentioned. (1097a)
Article 1167. If a person obliged to
do something fails to do it, the
same shall be executed at his cost.

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 Judie Mae Demello
This same rule shall be observed if Article 1170. Those who in the
he does it in contravention of the performance of their obligations are
tenor of the obligation. guilty of fraud, negligence, or delay,
Furthermore, it may be decreed and those who in any manner
that what has been poorly done be contravene the tenor thereof, are
undone. (1098) liable for damages. (1101)

Article 1168. When the obligation Article 1171. Responsibility arising

consists in not doing, and the from fraud is demandable in all
obligor does what has been obligations. Any waiver of an action
forbidden him, it shall also be for future fraud is void. (1102a)
undone at his expense. (1099a)
Article 1172. Responsibility arising
Article 1169. Those obliged to from negligence in the performance
deliver or to do something incur in of every kind of obligation is also
delay from the time the obligee demandable, but such liability may
judicially or extrajudicially demands be regulated by the courts,
from them the fulfillment of their according to the circumstances.
obligation. (1103)

However, the demand by the

creditor shall not be necessary in Article 1173. The fault or negligence
order that delay may exist: of the obligor consists in the
(1) When the obligation or the law omission of that diligence which is
expressly so declare; or required by the nature of the
(2) When from the nature and the
obligation and corresponds with the
circumstances of the obligation it circumstances of the persons, of the
appears that the designation of the time and of the place. When
time when the thing is to be negligence shows bad faith, the
delivered or the service is to be provisions of articles 1171 and 2201,
rendered was a controlling motive paragraph 2, shall apply.
for the establishment of the If the law or contract does not state
contract; or the diligence which is to be
(3) When demand would be useless,
observed in the performance, that
as when the obligor has rendered it which is expected of a good father
beyond his power to perform. of a family shall be required. (1104a)

In reciprocal obligations, neither Article 1174. Except in cases

party incurs in delay if the other expressly specified by the law, or
does not comply or is not ready to when it is otherwise declared by
comply in a proper manner with stipulation, or when the nature of
what is incumbent upon him. From the obligation requires the
the moment one of the parties assumption of risk, no person shall
fulfills his obligation, delay by the be responsible for those events
other begins. (1100a) which could not be foreseen, or
which, though foreseen, were
inevitable. (1105a)
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 Judie Mae Demello
Article 1175. Usurious transactions CHAPTER 3 Different Kinds of
shall be governed by special laws. Obligations
(n)
SECTION 1 Pure and Conditional
Obligations
Article 1176. The receipt of the Article 1179. Every obligation whose
principal by the creditor without performance does not depend upon
reservation with respect to the a future or uncertain event, or upon
interest, shall give rise to the a past event unknown to the parties,
presumption that said interest has is demandable at once.
been paid.
The receipt of a later installment of Every obligation which contains a
a debt without reservation as to resolutory condition shall also be
prior installments, shall likewise demandable, without prejudice to
raise the presumption that such the effects of the happening of the
installments have been paid. (1110a) event. (1113)
Article 1177. The creditors, after Article 1180. When the debtor binds
having pursued the property in himself to pay when his means
possession of the debtor to satisfy permit him to do so, the obligation
their claims, may exercise all the shall be deemed to be one with a
rights and bring all the actions of period, subject to the provisions of
the latter for the same purpose, article 1197. (n)
save those which are inherent in his
person; they may also impugn the
acts which the debtor may have
done to defraud them. (1111) Article 1181. In conditional
obligations, the acquisition of rights,
as well as the extinguishment or
Article 1178. Subject to the laws, all loss of those already acquired, shall
rights acquired in virtue of an depend upon the happening of the
obligation are transmissible, if there event which constitutes the
has been no stipulation to the condition. (1114)
contrary. (1112) Article 1182. When the fulfillment of
the condition depends upon the
sole will of the debtor, the
conditional obligation shall be void.
If it depends upon chance or upon
the will of a third person, the
obligation shall take effect in
conformity with the provisions of
this Code. (1115)
Article 1183. Impossible conditions,
those contrary to good customs or
public policy and those prohibited
by law shall annul the obligation
which depends upon them. If the
obligation is divisible, that part
thereof which is not affected by the
impossible or unlawful condition
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 Judie Mae Demello
shall be valid. during the pendency of the
condition shall be deemed to have
been mutually compensated. If the
The condition not to do an obligation is unilateral, the debtor
impossible thing shall be considered shall appropriate the fruits and
as not having been agreed upon. interests received, unless from the
(1116a) nature and circumstances of the
obligation it should be inferred that
the intention of the person
Article 1184. The condition that constituting the same was different.
some event happen at a
determinate time shall extinguish
the obligation as soon as the time In obligations to do and not to do,
expires or if it has become the courts shall determine, in each
indubitable that the event will not case, the retroactive effect of the
take place. (1117) condition that has been complied
with. (1120)
Article 1185. The condition that
some event will not happen at a Article 1188. The creditor may,
determinate time shall render the before the fulfillment of the
obligation effective from the condition, bring the appropriate
moment the time indicated has actions for the preservation of his
elapsed, or if it has become evident right.
that the event cannot occur.
The debtor may recover what
If no time has been fixed, the during the same time he has paid by
condition shall be deemed fulfilled mistake in case of a suspensive
at such time as may have probably condition. (1121a)
been contemplated, bearing in
mind the nature of the obligation.
(1118) Article 1189. When the conditions
have been imposed with the
intention of suspending the efficacy
of an obligation to give, the
following rules shall be observed in
case of the improvement, loss or
Article 1186. The condition shall be deterioration of the thing during
deemed fulfilled when the obligor the pendency of the condition:
voluntarily prevents its fulfillment.
(1119)
(1)If the thing is lost without the
fault of the debtor, the obligation
Article 1187. The effects of a shall be extinguished;
conditional obligation to give, once
the condition has been fulfilled,
shall retroact to the day of the (2)If the thing is lost through the
constitution of the obligation. fault of the debtor, he shall be
Nevertheless, when the obligation obliged to pay damages; it is
imposes reciprocal prestations upon understood that the thing is lost
the parties, the fruits and interests when it perishes, or goes out of
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 Judie Mae Demello
commerce, or disappears in such a the extinguishment of the
way that its existence is unknown or obligation. (1123)
it cannot be recovered;
Article 1191. The power to rescind
(3)When the thing deteriorates obligations is implied in reciprocal
without the fault of the debtor, the ones, in case one of the obligors
impairment is to be borne by the should not comply with what is
creditor; incumbent upon him.

(4) If it deteriorates through the The injured party may choose

fault of the debtor, the creditor may between the fulfillment and the
choose between the rescission of rescission of the obligation, with the
the obligation and its fulfillment, payment of damages in either case.
with indemnity for damages in He may also seek rescission, even
either case; after he has chosen fulfillment, if
the latter should become impossible.
If the thing is improved by its The court shall decree the rescission
(5)
nature, or by time, the improvement claimed, unless there be just cause
shall inure to the benefit of the authorizing the fixing of a period.
creditor;
This is understood to be without
If it is improved at the expense prejudice to the rights of third
(6)
of the debtor, he shall have no persons who have acquired the
other right than that granted to the thing, in accordance with articles
1385 and 1388 and the Mortgage
usufructuary. (1122) Law. (1124)
Article 1190. When the conditions Article 1192. In case both parties
have for their purpose the have committed a breach of the
extinguishment of an obligation to obligation, the liability of the first
give, the parties, upon the infractor shall be equitably
fulfillment of said conditions, shall tempered by the courts. If it cannot
return to each other what they have be determined which of the parties
received. first violated the contract, the same
shall be deemed extinguished, and
each shall bear his own damages. (n)
In case of the loss, deterioration or
improvement of the thing, the SECTION 2 Obligations with a
provisions which, with respect to Period
the debtor, are laid down in the Article 1193. Obligations for whose
preceding article shall be applied to fulfillment a day certain has been
the party who is bound to return. fixed, shall be demandable only
when that day comes.
As for the obligations to do and not
to do, the provisions of the second Obligations with a resolutory period
paragraph of article 1187 shall be take effect at once, but terminate
observed as regards the effect of
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 Judie Mae Demello
upon arrival of the day certain. determine such period as may
under the circumstances have been
probably contemplated by the
A day certain is understood to be parties. Once fixed by the courts,
that which must necessarily come, the period cannot be changed by
although it may not be known when. them. (1128a)
If the uncertainty consists in Article 1198. The debtor shall lose
whether the day will come or not, every right to make use of the
the obligation is conditional, and it period:
shall be regulated by the rules of
the preceding Section. (1125a)
Article 1194. In case of loss, (1)When after the obligation has
deterioration or improvement of the been contracted, he becomes
thing before the arrival of the day insolvent, unless he gives a
certain, the rules in article 1189 shall guaranty or security for the debt;
be observed. (n)
(2)When he does not furnish to the
Article 1195. Anything paid or creditor the guaranties or securities
delivered before the arrival of the which he has promised;
period, the obligor being unaware
of the period or believing that the When by his own acts he has
obligation has become due and (3)
impaired said guaranties or
demandable, may be recovered, securities after their establishment,
with the fruits and interests. (1126a) and when through a fortuitous
event they disappear, unless he
Article 1196. Whenever in an immediately gives new ones equally
obligation a period is designated, it satisfactory;
is presumed to have been
established for the benefit of both When the debtor violates any
the creditor and the debtor, unless (4)
undertaking, in consideration of
from the tenor of the same or other which the creditor agreed to the
circumstances it should appear that period;
the period has been established in
favor of one or of the other. (1127)
(5)When the debtor attempts to
Article 1197. If the obligation does abscond. (1129a)
not fix a period, but from its nature
and the circumstances it can be
inferred that a period was intended, SECTION 3 Alternative Obligations
the courts may fix the duration Article 1199. A person alternatively
thereof. bound by different prestations shall
The courts shall also fix the duration completely perform one of them.
of the period when it depends upon
the will of the debtor.
The creditor cannot be compelled
to receive part of one and part of
In every case, the courts shall the other undertaking. (1131)
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Article 1200. The right of choice Damages other than the value of
belongs to the debtor, unless it has the last thing or service may also be
been expressly granted to the awarded. (1135a)
creditor.
Article 1205. When the choice has
The debtor shall have no right to been expressly given to the creditor,
choose those prestations which are the obligation shall cease to be
impossible, unlawful or which could alternative from the day when the
not have been the object of the selection has been communicated
obligation. (1132) to the debtor.

Article 1201. The choice shall Until then the responsibility of the
produce no effect except from the debtor shall be governed by the
time it has been communicated. following rules:
(1133)

(1) If one of the things is lost

Article 1202. The debtor shall lose through a fortuitous event, he shall
the right of choice when among the perform the obligation by delivering
prestations whereby he is that which the creditor should
alternatively bound, only one is choose from among the remainder,
practicable. (1134) or that which remains if only one
subsists;
Article 1203. If through the creditor's
acts the debtor cannot make a
choice according to the terms of the If the loss of one of the things
obligation, the latter may rescind (2)
occurs through the fault of the
the contract with damages. (n) debtor, the creditor may claim any
of those subsisting, or the price of
Article 1204. The creditor shall have that which, through the fault of the
a right to indemnity for damages former, has disappeared, with a
when, through the fault of the right to damages;
debtor, all the things which are
alternatively the object of the If all the things are lost through
obligation have been lost, or the (3)
the fault of the debtor, the choice
compliance of the obligation has by the creditor shall fall upon the
become impossible. price of any one of them, also with
indemnity for damages.

The indemnity shall be fixed taking The same rules shall be applied to
as a basis the value of the last thing obligations to do or not to do in
which disappeared, or that of the case one, some or all of the
service which last became prestations should become
impossible. impossible. (1136a)
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 Judie Mae Demello
against all the debtors. If one of the
Article 1206. When only one latter should be insolvent, the
prestation has been agreed upon, others shall not be liable for his
but the obligor may render another share. (1139)
in substitution, the obligation is
called facultative. Article 1210. The indivisibility of an
The loss or deterioration of the obligation does not necessarily give
thing intended as a substitute, rise to solidarity. Nor does solidarity
through the negligence of the of itself imply indivisibility. (n)
obligor, does not render him liable.
But once the substitution has been
made, the obligor is liable for the Article 1211. Solidarity may exist
loss of the substitute on account of although the creditors and the
his delay, negligence or fraud. (n) debtors may not be bound in the
SECTION 4 Joint and Solidary same manner and by the same
Obligations periods and conditions. (1140)
Article 1207. The concurrence of
two or more creditors or of two or Article 1212. Each one of the
more debtors in one and the same solidary creditors may do whatever
obligation does not imply that each may be useful to the others, but not
one of the former has a right to anything which may be prejudicial
demand, or that each one of the to the latter. (1141a)
latter is bound to render, entire
compliance with the prestation.
There is a solidary liability only Article 1213. A solidary creditor
when the obligation expressly so cannot assign his rights without the
states, or when the law or the consent of the others. (n)
nature of the obligation requires
solidarity. (1137a)
Article 1214. The debtor may pay
Article 1208. If from the law, or the any one of the solidary creditors;
nature or the wording of the but if any demand, judicial or
obligations to which the preceding extrajudicial, has been made by one
article refers the contrary does not of them, payment should be made
appear, the credit or debt shall be to him. (1142a)
presumed to be divided into as
many shares as there are creditors Article 1215. Novation,
or debtors, the credits or debts compensation, confusion or
being considered distinct from one remission of the debt, made by any
another, subject to the Rules of of the solidary creditors or with any
Court governing the multiplicity of of the solidary debtors, shall
suits. (1138a) extinguish the obligation, without
prejudice to the provisions of article
Article 1209. If the division is 1219.

impossible, the right of the

creditors may be prejudiced only by The creditor who may have
their collective acts, and the debt executed any of these acts, as well
can be enforced only by proceeding as he who collects the debt, shall be
Law1 Obligation and Contracts
 Judie Mae Demello
liable to the others for the share in the creditor of the share which
the obligation corresponding to affects one of the solidary debtors
them. (1143) does not release the latter from his
responsibility towards the co-
debtors, in case the debt had been
Article 1216. The creditor may totally paid by anyone of them
proceed against any one of the before the remission was effected.
solidary debtors or some or all of (1146a)
them simultaneously. The demand
made against one of them shall not
be an obstacle to those which may
subsequently be directed against
the others, so long as the debt has
not been fully collected. (1144a) Article 1220. The remission of the
whole obligation, obtained by one
of the solidary debtors, does not
Article 1217. Payment made by one entitle him to reimbursement from
of the solidary debtors extinguishes his co-debtors. (n)
the obligation. If two or more
solidary debtors offer to pay, the
creditor may choose which offer to Article 1221. If the thing has been
accept. lost or if the prestation has become
impossible without the fault of the
solidary debtors, the obligation
He who made the payment may shall be extinguished.
claim from his co-debtors only the
share which corresponds to each,
with the interest for the payment If there was fault on the part of any
already made. If the payment is one of them, all shall be responsible
made before the debt is due, no to the creditor, for the price and the
interest for the intervening period payment of damages and interest,
may be demanded. without prejudice to their action
against the guilty or negligent
debtor.
When one of the solidary debtors
cannot, because of his insolvency,
reimburse his share to the debtor If through a fortuitous event, the
paying the obligation, such share thing is lost or the performance has
shall be borne by all his co-debtors, become impossible after one of the
in proportion to the debt of each. solidary debtors has incurred in
(1145a) delay through the judicial or
extrajudicial demand upon him by
the creditor, the provisions of the
Article 1218. Payment by a solidary preceding paragraph shall apply.
debtor shall not entitle him to (1147a)
reimbursement from his co-debtors Article 1222. A solidary debtor may,
if such payment is made after the in actions filed by the creditor, avail
obligation has prescribed or himself of all defenses which are
become illegal. (n) derived from the nature of the
obligation and of those which are
Article 1219. The remission made by personal to him, or pertain to his
own share. With respect to those
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 Judie Mae Demello
which personally belong to the an obligation is indivisible if so
others, he may avail himself thereof provided by law or intended by the
only as regards that part of the parties.
debt for which the latter are
responsible. (1148a)
SECTION 5 Divisible and Indivisible In obligations not to do, divisibility
Obligations or indivisibility shall be determined
by the character of the prestation in
Article 1223. The divisibility or each particular case. (1151a)
indivisibility of the things that are
the object of obligations in which
there is only one debtor and only SECTION 6 Obligations with a Penal
one creditor does not alter or Clause
modify the provisions of Chapter 2
of this Title. (1149) Article 1226. In obligations with a
penal clause, the penalty shall
substitute the indemnity for
Article 1224. A joint indivisible damages and the payment of
obligation gives rise to indemnity interests in case of noncompliance,
for damages from the time anyone if there is no stipulation to the
of the debtors does not comply with contrary. Nevertheless, damages
his undertaking. The debtors who shall be paid if the obligor refuses
may have been ready to fulfill their to pay the penalty or is guilty of
promises shall not contribute to the fraud in the fulfillment of the
indemnity beyond the obligation.
corresponding portion of the price
of the thing or of the value of the
service in which the obligation The penalty may be enforced only
consists. (1150) when it is demandable in
accordance with the provisions of
this Code. (1152a)
Article 1225. For the purposes of the
preceding articles, obligations to
give definite things and those which Article 1227. The debtor cannot
are not susceptible of partial exempt himself from the
performance shall be deemed to be performance of the obligation by
indivisible. paying the penalty, save in the case
where this right has been expressly
reserved for him. Neither can the
When the obligation has for its creditor demand the fulfillment of
object the execution of a certain the obligation and the satisfaction
number of days of work, the of the penalty at the same time,
accomplishment of work by metrical unless this right has been clearly
units, or analogous things which by granted him. However, if after the
their nature are susceptible of creditor has decided to require the
partial performance, it shall be fulfillment of the obligation, the
divisible. performance thereof should
become impossible without his fault,
the penalty may be enforced. (1153a)

However, even though the object or Article 1228. Proof of actual

service may be physically divisible, damages suffered by the creditor is
Law1 Obligation and Contracts
 Judie Mae Demello
not necessary in order that the of paragraph 2 of article 301. (1200a)
penalty may be demanded. (n)
Article 1288. Neither shall there be
Article 1229. The judge shall compensation if one of the debts
equitably reduce the penalty when consists in civil liability arising from
the principal obligation has been a penal offense. (n)
partly or irregularly complied with
by the debtor. Even if there has
been no performance, the penalty Article 1289. If a person should have
may also be reduced by the courts if against him several debts which are
it is iniquitous or unconscionable. susceptible of compensation, the
(1154a) rules on the application of
payments shall apply to the order of
the compensation. (1201)
Article 1230. The nullity of the penal
clause does not carry with it that of
the principal obligation. Article 1290. When all the requisites
mentioned in article 1279 are
present, compensation takes effect
The nullity of the principal by operation of law, and
obligation carries with it that of the extinguishes both debts to the
penal clause. (1155) concurrent amount, even though
If the assignment is made without the creditors and debtors are not
the knowledge of the debtor, he aware of the compensation. (1202a)
may set up the compensation of all
credits prior to the same and also SECTION 6 Novation
later ones until he had knowledge
of the assignment. (1198a) Article 1291. Obligations may be
modified by:
(1) Changing their object or
Article 1286. Compensation takes principal conditions;
place by operation of law, even
though the debts may be payable at (2) Substituting the person of the
different places, but there shall be debtor;
an indemnity for expenses of
exchange or transportation to the (3) Subrogating a third person in
place of payment. (1199a) the rights of the creditor. (1203)

Article 1287. Compensation shall not Article 1292. In order that an

be proper when one of the debts obligation may be extinguished by
arises from a depositum or from the another which substitute the same,
obligations of a depositary or of a it is imperative that it be so
bailee in commodatum. declared in unequivocal terms, or
that the old and the new obligations
be on every point incompatible with
Neither can compensation be set up each other. (1204)
against a creditor who has a claim
for support due by gratuitous title,
without prejudice to the provisions
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 Judie Mae Demello
Article 1293. Novation which except when annulment may be
consists in substituting a new claimed only by the debtor or when
debtor in the place of the original ratification validates acts which are
one, may be made even without the voidable. (1208a)
knowledge or against the will of the
latter, but not without the consent
of the creditor. Payment by the new Article 1299. If the original
debtor gives him the rights obligation was subject to a
mentioned in articles 1236 and 1237. suspensive or resolutory condition,
(1205a) the new obligation shall be under
the same condition, unless it is
otherwise stipulated. (n)
Article 1294. If the substitution is
without the knowledge or against
the will of the debtor, the new
debtor's insolvency or non-
fulfillment of the obligations shall Article 1300. Subrogation of a third
not give rise to any liability on the person in the rights of the creditor
part of the original debtor. (n) 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
Article 1295. The insolvency of the effect. (1209a)
new debtor, who has been
proposed by the original debtor and
accepted by the creditor, shall not Article 1301. Conventional
revive the action of the latter subrogation of a third person
against the original obligor, except requires the consent of the original
when said insolvency was already parties and of the third person. (n)
existing and of public knowledge, or
known to the debtor, when the
delegated his debt. (1206a) Article 1302. It is presumed that
there is legal subrogation:
Article 1296. When the principal (1) When a creditor pays another
obligation is extinguished in creditor who is preferred, even
consequence of a novation, without the debtor's knowledge;
accessory obligations may subsist (2) When a third person, not
only insofar as they may benefit interested in the obligation, pays
third persons who did not give their with the express or tacit approval of
consent. (1207) the debtor;
(3) When, even without the
Article 1297. If the new obligation is knowledge of the debtor, a person
void, the original one shall subsist, interested in the fulfillment of the
unless the parties intended that the obligation pays, without prejudice
former relation should be to the effects of confusion as to the
extinguished in any event. (n) latter's share. (1210a)

Article 1298. The novation is void if Article 1303. Subrogation transfers

the original obligation was void, to the persons subrogated the
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 Judie Mae Demello
credit with all the rights thereto
appertaining, either against the
debtor or against third person, be
they guarantors or possessors of
mortgages, subject to stipulation in
a conventional subrogation. (1212a)

Article 1304. A creditor, to whom

partial payment has been made,
may exercise his right for the
remainder, and he shall be
preferred to the person who has
been subrogated in his place in
virtue of the partial payment of the
same credit. (1213

Law1 Obligation and Contracts