Article 1231

Obligations are extinguished:

(1) By payment or performance;

(2) By the loss of the thing due;

(3) By the condonation or remission of the debt;

(4) By the confusion or merger of the rights of creditor and debtor;

(5) By compensation;

(6) By novation.

Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code. (1156a)

Ang mga obligasyon ay mawawala o matatapos kapag nangyari na ang mga sumusunod na bagay:

(1.) Sa pagbabayad o pag ganap;

(2.) Sa pagkawala ng bagay na kailangan ibayad o ibigay;

(3.) Sa pagbibigay ng kapatawaran o ng pagbabalewala ng utang;

(4.) Ang pagsasama sa iisang tao ng obligasyon ng pagiging nagpautang at umutang;

(5.) Palitan ng obligasyon;

(6.) Pagpapalit ng panibagong obligasyon.

Ang mga ibang dahilan ng pagkatapos o pagkawala ng obligasyon katulad ng annulment, rescission, at pagsagawa o katuparan ng resolutory condition, and prescription, ay pinamamahalaan ng ibang artikulo mula sa Code na ito.

Other causes of Terminating Obligations:

1.Waiver or Renunciation

2.Mutual Agreement

3.Compromise

4.Fulfillment of Resolutory Condition (Art 1179)

5.Expiration of Resolutory Term (Art 1139)

6.Prescriptio

7.Death of the debtor when the obligation is purely personal

8.Decision or will of one of the parties in certain contracts like agency, partnership

9.Happening of unforeseen events

10.Abandonment of the property charged with an obligation

**no case cited // Each paragraph shall be discussed under specific Articles going through the rest of Chapter 4 indicating each that were enumerated to extinguish obligation.

Article 1423

Obligations are civil or natural.  Civil obligations give right of action to compel their performance.  Natural obligations, not being based on positive law but on equity and natural law, do not grant a rigt of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof.  Some natural obligations are set forth in the following articles. (n)

Ang obligasyon ay civil o natural.  Obligasyong sibil ay nagbibigay ng hakbang para iutos ang pagsasagawa. Obligasyong natural, ay hindi ayon sa positibong batas ngunit sa equity at natural law, hindi nagbibigay ng karapatan sa isang hakbang para ipatupad ang pagsasagawa, ngunit pagkatapos ng boluntaryong pagsasakatuparan ng may utang , pinapayagan nila ang pagpapanatili ng kung ano mang naibigay o naisagawa para sa kadahilanan nito. May ilang natural obligation ay tinatalaga sa mga susunod na artikulo.

Discussion:

The Code Commissions  stated the reasons for legal recognition of natural obligations –

“In all the specific cases of natural obligations recognized by the present Code, there is a oral but not a legal duty to perform or pay, but the person thus performing or paying feels that in good conscience he should comply with his undertaking, which is based on moral grounds. Why should the law permits him to change his mind, and recovered what he has delivered or paid? It is not wiser and more jut that the law should compel him to abide by his honor and conscience? Equity, morality and natural justice- these are after all, the abiding foundations of a positive law.  A broad policy justifies a legal principle that would encourage persons to fulfill their moral obligations”

Natural Obligations are not written or promulgated laws, but derived merely from reason and nature, based on equity and natural law. They are based on good conscience and compliance to which is anchored on some moral grounds..  When not fulfilled, cannot be enforced in court as they are not legal obligation.

Fulfillment does not refer alone to delivery of things, but also to the performance in the manner that settles a claim. It cover the full extent of the juridical concept of “payment” in Art 1232 “Payment means not only delivery of the money but also performance, in any manner, of the obligation.

Natural Obligations may be converted into civil obligations by acts of novation.

Natural Obligations may be distinguished from Moral obligations:

a)In natural obligations, a juridical tie previously existed between the parties but because of certain intervening causes, they cannot be enforced in court vs in moral obligation there is no juridical tie;

b)In natural obigations, the voluntary fulfillment by the debtor is a legal fulfillment with legal effect vs in moral obligations, the performance is pure act of liberality which springs from blood, affection and benevolence;

c)Natural obligations are within the domain of law vs in moral obligations are within the domain of morals;

d)Natural obligations when fulfilled produce legal effects vs in moral obligations does not produce legal effects.

Natural Obligations may be distinguished from Civil obligations:

a)Natural obligations are based not in positive law but in equity and natural law vs in civil obligations arise from law, contracts, quasi-contracts, delicts and quasi-delicts

b)Natural obligations cannot be enforced in court because the obligee has no right of action to compel performance vs in civil obligations can be enforced in court because the obligee has a right of action to compel performance.

Case Illustration: E. Razon vs. PPA

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 shall be valid.

Imposibleng kondisyon, na kasalungat ng magandang kinagisnang kaugalian o  mga pampublikong patakaran at mga pinagbabawal ng batas ay dapat ipawalang-bisa ang obligasyon o pananagutan na naka salaysay sa kanila. Kung ang obligasyon ay nahahati, ang bahagi na hindi apektado ng imposible at hindi makatarungang kondisyon ay may bisa.

Ang kundisyon na hindi gawin ang imposibleng bagay ay ipinagpapalagay na hindi napag kasunduan.

Discussion:

Possible Condition – capable of realization or   actualization in accordance to

•   –nature
•   –law
•   –public policy
•   –good custom and morals

Impossible Condition – not in accordance   to possible conditions

•   Physically Impossible – contrary to the law   of nature (nature of things or cannot be   done)
•   Juridically Impossible – contrary to law,   morals, public policy and good custom

Effects of Impossible Conditions:

1. Conditional obligation void
2. Conditional obligation valid
3. Only affected obligation is void.
4. Only the condition void.

Impossible Conditions in Obligations distinguised from Impossible Conditions in Donations and Wills

If there are impossible conditions impossed on the disposition on the donation or will, the same shall not be considered written.

  Art 727.  Illegal or impossible conditions in simple remunaratory donations shall be considered as not imposed.

  Art 873.  Impossible conditions and those contrary to law and good customs shall be considered as not imposed and shall in no manner prejudice the heir, even if the testator should otherwise provide.

**no case cited

Case Illustration: Marcelino Galang, Guadalupe Galang vs. Court of Appeals, Ramon R. Buenaventura, et.al.