Finance Essay

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CHAPTER 4 EXTINGUISHMENT OF OBLIGATIONS Kinds of Loss 1. Physical Loss 2. Legal Loss 3. Civil Loss Extinguishment of Obligations are extinguished: 1. By payment or performance 2. By the loss of the thing of due 3. By remission 4. By novation 5. By confusion 6. By compensation Causes of Extinguishment of Obligations 1. Death of party in case the obligation is a personal one 2. Mutual desistance or withdrawal 3. Arrival of resolutory period 4. Compromise 5. Impossibility of fulfillment 6. Happening of fortuitous event Payment- means not only the delivery of money but also the performance, in any other manner, of an obligation; the giving of a thing, the doing of an act, or not doing of an act. Debt- may refer to an obligation to deliver money, to deliver a thing, the doing of an act, or not doing of an act. 1. Integrity of prestation 2. Identity of prestation- the very prestation due must be delivered or performed Requisites for the application of Article 1234- Art. 1234. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. (n) 1. There must be substantial performance; 2. The obligor must be in good faith Requisites for the application of Article 1235- Art. 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with. 1. The obligee knows that the performance is incomplete or irregular and; 2. He accepts the performance without expressing any protest or objection. Persons whom the creditor must accept payment 1. The debtor 2. Any person interest in the obligation(guarantor) 3. A third person

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