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 1232

Payment means not only the delivery of money but also the performance, in any other manner, of an obligation.

Ang pagbabayad ay hindi lamang ang pagdadala ng pera ito rin ay may kasamang pagsasagawa, kahit sa ano mang kaparaan, ng isang obligasyon.

‘Payment’ defined

Payment is that mode of extinguishing obligations which is consists of:

• The delivery of money, or
• The performance in any other manner of an obligation.

(Example: rendition of the required service)

Article 1233

A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. (1157)

Ang utang ay hindi naiintindihang nabayaran na hangga’t ang bagay or serbisyo na nakapaloob sa obligasyon ay buong nabigay na o nagawa na, alin man sa dalawang nabanggit.

Discussion:

Payment extinguishes debt.

Evidence of payment of burden of proof

Presentation of receipt is a good proof of payment.  Therefore, a debtor can demand the issuance of a receipt from the creditor once his debt is paid.  Consignation may be requested by the debtor in case the creditor refused to issue the receipt.  The burden of proof of payment lies on the debtor, after the creditor has shown that the debt exists.

Case Illustration: Toribio vs. Foz (34 Phil. 913)