Obligations and Contracts (Philippines)

8327 Words Sep 13th, 2010 34 Pages
NOVATION (Article 1291) * The extinction of an obligation through the creation of a new one which substitutes it * The substi or change of an oblig by another, which extinguishes or modifies the first, either: * by changing its object or principal conditions * by substi another in place of the debtor * by subrogating a third person in the rights of the creditor
(Subrogate - Take over a legal claim or right against a third party from another party who previously owned that right or claim)
Art. 1291 Obligations may be modified by: (1) Changing their object or principal conditions; (2) Substituting the person of the debtor; (3) Subrogating a third person in the rights of the creditor. (1203)

COMPENSATION
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* If one of the debtors is insolvent, the others should bear to share the insolvency, in proportion to their share. They can recover from the insolvent debtor once his finances improve.
Art. 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if such payment is made after the obligation has prescribed or become illegal. (n)

EFFECT OF PAYMENT AFTER ONLIGATION HAS PRESRIBED OR BECOME ILLEGAL
When solidary debtor pays the oblig – entitled to REIMBURSEMENT FROM CO-DEBTORS

Two cases when PAYING DEBTOR CANNOT GET ANY REIMBURSEMENT 1. When the obligation HAS ALREADY PRESCRIBED * Article 1231, par 2.
Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code. (1156a) * role that the passage of time plays in the making and ending of certain rights * Art. 1424
When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor who voluntarily performs the contract cannot recover what he has delivered or the value of the service he has rendered. 2. When the obligation HAS BECOME ILLEGAL * Article 1266
The debtor in obligations to do shall also be released when the prestation becomes legally or physically impossible without the fault of the obligor. (1184a)

PRESCRIPTIVE PERIODS OF ACTIONS * Art. 1106
By prescription, one acquires ownership and other real rights
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