Case Analysis on Chapter 4 Extinguishment of Obligations Dela Rea, Kimmi F. Mapua Institute of Technology School of Electrical, Electronics and Computer Engineering Muralla St. Intramuros, Manila
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This paper is a Case Analysis on Chapter 4 – Extinguishment of Obligations. The problems assigned to Group 8 are in the following:
person, offered to pay the obligation of D. Can C legally refuse to accept the payment? How about an offer of payment from G?
Problem 1 D(debtor) owes C (creditor) P10,000 with G as guarantor. On the due date of the obligation, T, a third person, offered to pay the obligation of D. Can C legally refuse to accept the payment? How about an offer of payment from G?
-Yes, C can refuse to accept the payment of T. The third person may have the payment of P10,000 but the creditor may insist on his right on the liability of debtor. In Article 1236 par. 1 , “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.” It was not stated in the problem any specified requirement or stipulation for T, C can refuse to accept the payment of T. Also, creditor should not be compelled to accept payment from a third person due to personal reasons. -Yes, C can accept the payment from G. As G being the guarantor, which is a person who has an interest in the obligation. Again stated in Article 1236 par. 1, the creditor may refuse to accept payment third person who has no interest in the fulfillment on the obligation. The guarantor has the interest in the obligation which may lead to creditor’s acceptance of payment from G.
Problem 2 M (maker) issued a promissory note for P10,000 in favor of P (payee) who lost the note which was found by T who demands payment from M. M did not know that the note was lost by P. Is M justified in paying T?
ARTICLES RELATED ON THE PROBLEMS 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. Article 1242 Payment made in good faith to any person in possession of the credit shall release the debtor.
PROBLEMS WITH ANSWERS Problem 1 D(debtor) owes C (creditor) P10,000 with G as guarantor. On the due date of the obligation, T, a third
Problem 2 M (maker) issued a promissory note for P10,000 in favor of P (payee) who lost the note which was found by T who demands payment from M. M did not know that the note was lost by P. Is M justified in paying T? -Yes. In Article 1242, “Payment in good faith to any person in possession of the credit shall release the debtor. “ With the possession of the promissory note of T, M should pay the amount of P10,000 stated in the promissory note. If M did not know that P lost the note, so it will be under the payment in good faith. After paying the amount of P10,000 to T, M is not liable anymore to any payments to P.
QUESTIONS TO THE PRESENTERS Problem 1 If C accept the payment of T, is the obligation of D to C can be replaced to T? -No, if T paid to C and accepts it without the knowledge of D, the obligation to T is not valid. It is stated in Article 1237 that “ 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.” The subrogation will not take place to T because D didn’t know that he paid his debt to C and C accepted it. Problem 2 From the problem that P lost the promissory note, then T who was not in legal age found the note and demands payment from M.Is T has the authority to receive payment from M? -No, it is because T was not in legal age. Stated in 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.” With the provisions of Art. 1427, T has the capacity to alienate. The person is not incapacitated to enter into contracts and means that to make a disposition or demands payment.
