Article 1275

The obligation is extinguished from the time the characters of creditor and debtor are merged in the same person.

Ang obligasyon ay mawawala simula sa oras na kung saan ang character ng nagpautang at ng nangutang ay nagsama sa isang tao.

Dicussion:

Requisites for Confusion or Merger of Right

1. There is a merger in the same person of the characters of a creditor and a debtor.

2. The merger must be in the characters of a principal creditor and a principal debtor.

3. The merger is definite and complete. Partial merger is allowed. It is definite and complete up to the extent of the concurrent amount or value.

Case Illustration: Yek Tong Lin Fire and Marine Insurance Co. vs. Pelagio Yusingco, ET AL.

Article 1276

Merger which takes place in the person of the principal debtor or creditor benefits the guarantors. Confusion which takes place in the person of any of the latter does not extinguish the obligation.

Ang pag-iisa o pagsasanib ng prinsipal na nangutang at nagpautang ay ika-papakinabang ng tagapanagot. Ang pag-iisa o pagsasanib ng tagapanagot ay hindi maaaring makapagpa-walang bisa o makapag-wala ng obligasyon.

Discussion:

Two kinds of merger:

1. Merger in the person of the principal debtor or principal creditor;
2. Merger in the person of the guarantor.

The first merger results in the extinguishment of the guaranty because the latter is just an accessory obligation. When the principal obligation is extinguished, the accessory obligation is also extinguished. Thus, the law says, the confusion benefits the guarantor.

The second merger will not extinguish the principal obligation because the efficacy of the principal obligation is not dependent upon the accessory obligation.

Article 1277

Confusion does not extinguish a joint obligation except as regards the share corresponding to the creditor or debtor in whom the two characters concur. (1194)

Hindi mapapawalang bisa ang joint obligation ng pagsasanib ng karakter ng nagpautang at umutang, maliban sa mga bahagi na may pag-aari o na napataw sa mga karakter na ito.

DISCUSSION

Joint Obligation, Concept; Distinguished From Solidary Obligation

In joint obligation there are two or more debtors or creditors, where debtor is liable for a proportion of debt and creditor is entitled to a part of a credit.

ILLUSTRATION:

Rara and Debi owed P 2 M from Frank. Rara and Debi had an agreement that Rara will pay the whole P 2 M to Frank. That extinguishes Debi’s obligation to Frank. However, Debi will be liable to pay P 1 M To Rara.