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Obligation and Contract

The document discusses compensation and novation of obligations under Philippine civil law. It provides definitions and conditions for compensation, which allows debts to offset each other, and novation, which substitutes new obligations or parties. Various scenarios related to compensation and novation are addressed.

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20 views

Obligation and Contract

The document discusses compensation and novation of obligations under Philippine civil law. It provides definitions and conditions for compensation, which allows debts to offset each other, and novation, which substitutes new obligations or parties. Various scenarios related to compensation and novation are addressed.

Uploaded by

gracebaldago5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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ART.

1283-1297
Mary grace b. bagaindoc
Reporter
ARTICLE 1283

If one of the parties to a suit over an


obligation has a claim for damages against
the other, the former may set it off by
proving his right to said damages and the
amount thereof.
ARTICLE 1284
When one or both debts are rescissible or
voidable, they may be compensated
against each other before they are
judicially rescinded or avoided.
ARTICLE 1285
Article 1285. The debtor who has consented to the
assignment of rights made by a creditor in favor of a
third person, cannot set up against the assignee the
compensation which would pertain to him against
the assignor, unless the assignor was notified by the
debtor at the time he gave his consent, that he
reserved his right to the compensation.
ARTICLE 1286
Compensation takes place by operation of law,
even though the debts may be payable at
different places, but there shall be an
indemnity for expenses of exchange or
transportation to the place of payment.
ARTICLE 1287
Compensation shall not be proper when one of
the debts arises from a depositum or from the
obligations of a depositary or of a bailee in
commodatum.
ARTICLE 1288

Neither shall there be compensation if one of the


debts consists in civil liability arising from a penal
offense.
ARTICLE 1289
If a person should have against him several
debts which are susceptible of (sic)
compensation, the rules on the application of
payments shall apply to the order of the
compensation.
ARTICLE 1290
When all the requisites mentioned in Art. 1279
are present, compensation takes effect by
operation of law, and extinguishes both debts
to the concurrent amount, even though the
creditors and debtors are not aware of the
compensation.
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.
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 terms, or that the old and the new
obligations be on every point incompatible
with each other.
ARTICLE 1293
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.
ARTICLE 1294
If the substitution is without the knowledge or
against the will of the debtor, the new debtor’s
insolvency or non-fulfillment of the obligations
shall not give rise to any liability on the part of
the original debtor.
ARTICLE 1295
The insolvency of the new debtor, who has been
proposed by the original debtor and accepted by the
creditor, shall not revive the action of the latter
against the original obligor, except when said
insolvency was already existing and of public
knowledge, or known to the debtor, when the
delegated his debt.
ARTICLE 1296

When the principal obligation is extinguished in


consequence of a novation, accessory
obligations may subsist only insofar as they may
benefit third persons who did not give their
consent.
ARTICLE 1297

If the new obligation is void, the original one


shall subsist, unless the parties intended that
the former relation should be extinguished in
any event.

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