MANUEL F.

ENVERGA UNIVERSITY FOUNDATION

College of Business and Accountancy
First Semester SY 2014-2015

A Course Guide on

OBLIGATIONS AND CONTRACTS

by Atty. Jose Maria Duhaylongsod

MODULE TWO-B1
OBJECTIVE: This Module seeks to formally close the discussion on
the Title on Obligations. As part of the natural progression,
extinguishment must be given time and effort so as to understand
its different modes as a consequence of fulfillment of obligations.

I.

Extinguishment of Obligations (Art. 1231)

A.
Payment or Performance (Arts. 1232-1251)
1.
General Rules
a)
Integrity
(1)
CASES:
(2)
Alonzo v. San Juan 451 SCRA 45
(3)
Azcona v. Jamandre 151 SCRA 317
(4) Intestate Estate of R. Presbitero v. CA
217 SCRA 372
(5)
PCIB v. CA
481 SCRA 127
(6)
Abacus Securities v. Ampil 483 SCRA
315
(7)
Aranas v. Tutaan 127 SCRA 828
b)
Identity
c)
Indivisibility
2.
Special Rules on Monetary Obligations
a)
Legal Tender
(1) CASE: DBP v. CA 494 SCRA 25
b)
Checks or Mercantile Documents
(1)
CASES:
(2)
New Pacific Timber v. Seneris 101
SCRA 686
(3)
International Corp Bank v. CA 351
SCRA 516
(4)
Far East Bank v. Diaz Realty 363
SCRA 659
(5)
Pabugaois v. Sahjwani 423 SCRA
596
c)
Extraordinary Inflation or Deflation
(1)
CASE:
(2)
Sangrador v. Valderama 168 SCRA
215
(3)
Serra v. CA
229 SCRA 60
(4)
Huibonhoa v. CA 320 SCRA 625
(5)
Singson v. Caltex 342 SCRA 91

12 26 (28) August 2014

3.
4.

1269)

B.
C.
D.
E.

F.

Place of Payment
Special Forms of Payment
a) Dacion en Pago (Art. 1245)
(1) CASE: Caltex (Phils.) Inc. v. IAC 215
SCRA 580
b) Application of Payments (Art. 1252-1254)
c)
Cession (Art. 1255)
d)
Tender of Payment and Consignation (Arts.
1256-1261)
(1)
CASE:
(2)
State Investment House v. CA 198
SCRA 390
(3)
McLaughlin v. CA144 SCRA 693
(4)
Legaspi v. CA
142 SCRA 82
(5)
Hulganza v. CA
147 SCRA 77
(6)
Valdellon v. Tengco (see BP 877) 141
SCRA 320
(7)
Soco v. Militante 123 SCRA 160
(8)
Paray v. Rodriguez 479 SCRA 571
(9)
Reisenbeck v. CA 209 SCRA 656
Loss or Impossibility of Performance (Arts. 1262 -Condonation or Remission of Debt (1169 1174)
Confusion or Merger of Rights (Arts. 1175 1176)
Compensation (Arts. 1177 1178)
1.
Distinguished from Confusion
2.
Kinds
a)
Legal
(1)
CASES:
(2)
EGV Realty v. CA 310 SCRA 657
(3)
PNB Madecor v. Uy 363 SCRA 128
(4)
BPI v. CA
490 SCRA 168
(5)
Trinidad v. Acapulco
493 SCRA 179
b)
Conventional
(1) CASE: Commercial Bank & Trust Co.
v. BPI 232 SCRA 302
c)
Judicial
3.
Taxes
a) CASE: Francia v. IAC 167 SCRA 753
4.
Effect of Assignment of Credit
a) CASE: Perez v. CA 127 SCRA 636
Novation (Arts. 1179 1230)

1.
2.

3.

4.
5.

Kinds
Manner
a)
CASES:
b)
Fortune Motors v. CA 267 SCRA 653
c)
Rillo v. CA
274 SCRA 461
Requirements
a)
CASES:
b)
Espina v. CA
334 SCRA 186
c)
Reyes v. BPI Family Bank 486 SCRA 276
d)
Ong v. Bognalbal 501 SCRA 490
Real/Objective Novation
Personal/ Subjective Novation
a)
Change in debtors
(1)
CASES:
(2)
Servicewide Specialists, Inc. v. IAC
174 SCRA 80
(3)
Ajax Marketing v. CA 248 SCRA 222
b)
Change in Creditors
(1) CASE: Licaros v. Gatmaitan 362
SCRA 548