BLAW 101- MIDTERM REVIEWER

Payment- delivery of money (in

ordinary parlance)
- Consist not only in the delivery
of money but also the giving of
a thing, the doing or not doing
of an act.
- Synonymous with
performance
Debt- may refer to an obligation to
deliver money/thing, to do or not to do
an act.
Integrity of prestation- debt should
be delivered or rendered complete.
Identity of the prestation- the very
prestation must be delivered or
performed.
Free disposal of the thing due- the
thing to be delivered must not be
subject to any claim or lien or
encumbrance of a third person.
Capacity to alienate- the person is
not incapacitated to enter into
contracts and for that matter, to make
disposition of the thing due.
Minors- individuals which are 17 y/o
and below
Mentally demented or insaneperson/s out of touch of the reality
Lucid interval- period of sanity
Prodigals- person who uncontrollably
spends his/her resources
Civil interdiction- accessory penalty
whereby a person convicted by final
judgment of a case involving moral
turpitude that carries a penalty of 6
yrs of imprisonment and above is
prohibited in entering contracts.
Moral turpitude- any cases that
deflect honesty.
ward- person who is, even of legal
age, is in mind of a minor
estate- properties left by a deceased
person
subrogation- when the 3rd person
acquire the right of the creditor (loan
restructuring)
ratification- process of cleansing the
defect of any contract by
acknowledging its validity despite its
defects

estoppel- representations or
misrepresentations is admissible
against a person and cannot be denied
upon persons whi relies on it.
Legal tender- currency w/c a debtor
can legally compel a creditor to accept
in payment of a debt on money
Inflation- sharp sudden increase of
money or credit or both
- Causes a drop in the value of
money
Deflation- reduction in volume and
circulation of the available money or
credit
- Resulting a decline in general
price level
Judicial cost- statutory amounts
allowed to party to an action for his
expenses incurred in the action.
Venue- place where a court suit or
action must be filed or instituted
Domicile- place of a persons habitual
residence; fixed permanent home
Residence- element of a domicile
Dation in payment- adjudication or
dacion en pago
- Conveyance of ownership of a
thing as an accepted equivalent
of performance
Application of Paymentsdesignation of the debt to w/c should
be applied the payment made by a
debtor who has various debts of the
same kind in favour of one and the
same creditor.
Onerous- burdensome
Payment by cession- assignment or
abandonment of all the properties of
the debtor for the benefit of his
creditors in order that the latter may
sell the same and apply the proceeds
thereof to the satisfaction of their
credits.
Tender of payment- is the act, on
the part of debtor, offering to the
creditor the thing or amount due.
Consignation- is the act of depositing
the thing or amount due with the
proper court when the creditor does
not desire or cannot receive it, after
complying w/ the formalities required
by law.

Thing is lost- perishes, goes out of

commerce or disappears in such a way
that its existence is unknown or it
cannot be recovered
Genus nunquan perit- generic thing
never perishes
Condonation or remissiongratuitous abandonment by the
creditor of his right against the debtor
Complete-when it covers the entire
obligation
Partial- when it does not cover the
whole obligation
Express- when it is made either
verbally or in writing
Implied- when it can only be inferred
from conduct
Inter vivos- when it will take effect
during the lifetime of the donor
Mortis causa- when it will become
effective upon the death of the donor.
Capital- property of husband
Paraphernal- property of wife
Legitime- part of the testators
property which he cannot dispose of
because the law has reserved it for
certain heirs
Compulsory heirs
Inofficious- it must not be excessive
Consideration- anything tangible or
intangible sufficient to support a
contract
Confusion or merger- meeting in
one person of the qualities of creditor
and debtor with respect to the same
obligation
Compensation- is the
extinguishment to the concurrent
amount of the debts of 2 persons who,
in their own right, are debtors and
creditors of each other.
Foreign exchange- conversion of an
amount of money or currency of one
country into an equivalent amount or
currency of another.
Exchange rate- is the price of one
currency expressed in relation to
another country.
Deposit- is constituted from the
moment a person receives a thing

belonging to another with the

obligation of safely keeping it and
returning on the same.
Commodatum- is a gratuitous
contract whereby one of the parties
delivers to another something not
consumable so that the latter may use
the same for certain time and return
it.
Total- when both obligations are of
the same amount and are entirely
extinguished
Partial- when the 2 obligations are of
different amounts and a balance
remains
Legal- when it takes place by
operation of law even without the
knowledge of the parties
Voluntary- when it takes place by
agreement of the parties
Judicial- when it takes place by order
from a court in a litigation
Facultative- when it can be set up
only by one of the parties
Novation- total or partial extinction of
an obligation through the creation of a
new one which substitutes it.
Legal- w/c takes place by operation of
law
Conventional- w/c takes place by
agreement of the parties
Express- when it is so declared in
unequivocal terms
Implied- when the old and the new
obligation are essentially incompatible
with each other
Total or extinctive- when the old
obligation is completely extinguished
Partial or modificatory- when the
old obligation is merely modified
Real or objective- when the object
(or cause) or principal conditions of
the obligation are changed
Personal or subjective- when the
person of the debtor is substituted
and/or third person is subrogated in
the rights of the creditor
Mixed- when the object and/or
principal conditions of the obligation
and the debtor or the creditor, or both
the parties, are changed.

Substitution- when the person of the

debtor is substituted
Subrogation- when a third person is
subrogated in the rights of the creditor
Expromision- that w/c takes place
when a third person of his own
initiative and without the knowledge
or against the will of the original
debtor assumes the latters obligation
with the consent of the creditor
Delegacion- that which takes place
when the creditor accepts a third
person to take place of the debtor at
the instance of the latter.

Test of distinction:
There will be novation if the old and
new obligation cannot stand together
Old
New
Effect
Valid
Valid
Novation
Voidable
Valid
Novation
Valid
Voidable
Novation
Void
Valid
No
novation
Valid
Void
No
novation