Article 1291

Obligations may be modified by:

1. Changing their object or principal conditions;
2. Substituting the person of the debtor;
3. Subrogating a third person in the rights of the creditor.

Ang obligasyon ay maaring mabago ng:

1. Pagbabago ng bagay o ng pangunahing kondisyon;
2. Paglilipat ng tao ng nangutang;
3. Pagpapalit ng ikatatlong tao sa karapatan ng nagutang.

Discussion:

Kinds of Novation

A .  As to their essence:

1. Objective or Real novation – effected by changing the object or principal conditions of the obligation.

2. Subjective or Personal novation – effected by:

a. Objective or Real novation – effected by changing the object or principal conditions of the obligation.

b. Subjective or Personal novation – effected by:

b1. Substituting the person of the debtor (passive novation) or

b2. Subrogating a third person to the rights of the creditor. (active novation)

3. Mixed novation – arises when there is a combination of the objective and subjective novations.

B. As to the form of their constitution:

1. Express- when the parties declared in unequivocal terms that the old obligation is extinguished by the new obligation.

2. Implied – when there are no express declaration that the old obligation is extinguished by the new one.

C. As to the extent of their effects:

1. Total or Extinctive – when the original obligation is completely extinguished. There is no novation when the new contract is not between the same parties as in the old contract.

  Four (4) requisites of Extinctive Novation

1. The existence of a previous valid obligation;

2. The agreement of all the parties to the new contract;

3. The extinguishment of the old obligation or contract; and,

4. The validity of new one.

2. Partial or Modificatory – when the original obligation is not totally extinguished but merely modified.

D. As to their origin:

1. Legal Novation – takes place by operation of law.

2. Conventional Novation – takes place by agreement of the parties.

E. As to presence or absence of condition:

1. Pure – when the creation of new obligation is not subject to any condition.

2. Conditional – when the creation of new obligation is subject to a condition.

Case Illustration: Carlos Sandico,Sr. and Teopisto Timbol vs. The Honorable Minerva Inocencio Piguing and Desiderio Paras

Article 1292

In order that an obligation may be extinguished by another which substitute the same, it is imperative that it be so declared in unequivocal (hindi malinaw) terms, or that the old and the new obligations be on every point incompatible with each other.

Upang ang isang obligasyon ay maaaring matapos sa na papalit sa pareho, ito ay hindi maiiwasan na ito ay ipinahayag sa madaling termino, o na ang luma at bagong mga obligasyon maging sa bawat punto na hindi tugma sa bawat isa. (1204)

Article 1293

Novation which consists in substituting a new debtor in the place of the original one, may be made even without the knowledge or against the will of the latter, but not without the consent of the creditor. Payment by the new debtor gives him the rights mentioned in Articles 1236 and 1237. (1205a)

Ang novation na binubuo ng pagpapalit ng bagong may utang sa katayuan ng orihinal, ay maaaring gawin kahit na hindi alam o labag sa loob ng huli, ngunit hindi nang walang pahintulot ng pinagkakautangan. Ang pagbabayad ng bagong may utang ay nagbibigay sa kanya ng mga karapatan na nabanggit sa Artikulo 1236 at 1237. (1205a)

Case Illustration: Magdalena State  v  Antonio& Herminia Rodriguez (Art 1293-JNR)