EXTINGUISHMENT OF OBLIGATION Mode of Extinguishment of Obligation: 1.

Payment of Performance - delivery of money and performance, in any other manner of the obligation 2. Loss of the thing due 3. Condonation or remission of debt Requisites for valid payment/performance: 1. Prestation - act of performing the obligation 3 considerations with respect to prestation itself: a. identity b. integrity or complements c. indivisibly - the other party's intention to make it indivisible 2. Parties - must be made by proper party to proper party - Payer - the one performing, he can be the debtor himself of his heirs or assigns or his agent - Payee - creditor Payment made to an incapacitated person, valid if: - incapacitated person kept the thing delivered - insofar as the payment has been beneficial to him Where payment should be made? - place designated in the obligation - place where the thing might be at the moment the obligation was constituted in the place of the domicile of the debtor Substantial Performance - attempt in good faith to perform without willful or intentional departure - deviation is slight - omission / defect is technical / unimportant - must not be so material that intention of parties is not attained Effects of substantial performance in good faith - obligator may recover as though there has been strict and complete fulfillment, damages suffered by the obligee - no right to rescind

CONSIGNATION - act of depositing the thing due with the court / judicial authorities whenever the creditor cannot accept or refuses to accept payment Requisites: 1. Existence of valid debt 2. Previous valid tender was unjustly refused / circumstances making previous tender exempt 3. Prior notice of consignation had been given to the person interested in performance of obligation (1st notice) 4. Actual deposit with proper judicial authorities 5. Subsequent notice of consignation (2nd notice) Loss of the thing due (Partial or Total) - when the object perishes (physically) - when it goes out of commerce - when it disappears in such a way that its existence is unknown or it cannot be recovered Partial: return the excess Total: you can't do anything about it Impossibility of performance - physical - legal - if it is illegal, don't deliver CONDONATION - gratuitious abandonment of debt - money comes first Confusion of Rights - the character of debtor and creditor is merged in same person with respect to same obligation Requisites: 1. It must take place between principal debtor and principal creditor only 2. Merger must be clear and definite 3. The obligation involved must be same and identical (one obligation only) 4. Revocable, if reason ****** NOTE: Di ko na nacopy. Masyadong mabilis ang mga pangyayari. XD COMPENSATION - it is made of extinguishment to the concurrent amount of obligation of persons who are in their own right reciprocally debtors or creditors

Kinds: 1. Legal - by operation of law; as long as requisites concur - even if unkown to parties 2. Conventional - agreement of parties is enough, forget other requirement as long as both consented NOVATION - extinguishment of obligation by creating / substituting a new one in its place * changing object or principal conditions * substituting person of debtor * subrogating 3rd person in right of creditor - both parties must agree NEGLIGENCE - no intention to commit - it is a fault or act of negligence, which cause damage to another, there being no pre-existing contractual relations between the parties Elements of Quasidelicts / Torts 1. act or omission 2. damage or injury is caused to another 3. fault or negligence is present

WHAT MUST BE PROVEN? 1. Negligence - core of the accusation (no intention to commit it) - Negligence is never a proof. Best allegation will never be amount to evidence. Exception: - In case where negligence is presumed or imputed by law - in common carriers - Principle of res ipsa loquitor (the thing speaks for yourself) grounded on the difficulty in proving through competent evidence 2. Damage / Injury 3. Causal connection between negligence and damage Doctrine of Proximate Cause - the adequate and efficient cause which in the natural order of events and under the particular circumstances surrounding the case, would naturally produce the event. - The cause of the cause of the evil caused.

Defenses: 1. Contributory Negligence 2. Concurrent Negligence - both negligences are equal 3. Doctrine of Last Clear Chance - a person is still liable despite the fact that the other party has a chance to avoid and still proceeded 4. Emergency Rule - you are the most important person in the world - danger must be equal or greater than the other party 5. Doctrine of assumption of risk - limited to certain entities 6. Fortuitous Event - an act of God. The incident must be purely an act of God 7. Exercise of Diligence of good father of family in selection and supervision of employees maybe invocable only by an employer 8. Prescription - case should be filed within the period 9. Act or omission is not the proximate cause of the damage CONTRACT - meeting of minds between two parties whereby one binds himself with respect to other to give something or render some service Principal Characteristics of a Contract - autonomy of wills - both parties may stipulated to anything - mutuality - both have to do something mutual - obligatory force - the contract is law between the parties - relativity - may involve other people Kinds of Contract 1. Consensual - perfected by agreement of parties 2. Real - perfected by delivery 3. Formal / Solemn - perfected by conformity to essential formalities As to cause: - onerous - with valuable consideration - gratuitous - founded on liberality - remunerative - prestation is given for service previously rendered not as obligation