Section 4

CONFUSION OR MERGER
OF RIGHTS
 ART. 1275
The obligation is extinguished fro
m the time the characters of cred
itor and debtor are merged in the
same person.
MEANING OF CONFUSION OR MERGER

 Confusion or merger is the meeting in

one (1) person of the qualities of cr
editor and debtor with respect to the
same obligation. (4 Sanchez Roman 42
1)
REASON OR BASIS FOR CONFUSION
 (1) The law treats confusion or merger as a
mode of extinguishing obligations because if
a debtor is his own creditor, enforcement of t
he obligation becomes absurd since a person
cannot claim payment from himself.
 (2) Furthermore, when there is a confusion of

rights, the purposes for which the obligation

may have been created are deemed realized.
(see 8 Manesa 388; Sochayseng vs. Trujillo, 3
1 Phil. 153)
REQUISITES OF CONFUSION
For a valid confusion or merger to take place, it
is necessary that:

(1) It must take place between the princi

pal debt and creditor; and
(2) It must be complete.
 EXAMPLES
(1) D owes C 10,000 for which D executed a negotiabl
e promissory note in favor of C. C indorsed the not
e to E who, in turn, indorsed it to F. Now F bought
goods from the store of D. Instead of paying cash,
F indorsed the promissory note to D.
Here, D owes himself. Consequently, his obligation
is extinguished by merger.
(2) X and Y are the heirs of Z. In his will, Z gave to X a
parcel of land in usufruct for 10 years. The naked
ownership to the same parcel was given to Y. Late
r, Y soldhis interest in the land to X.

In this case, the usufruct is naturally extinguis

hed and now, X will now have the full owne
rship of his land.
(3) D borrowed money from C. As security, D mortgag
ed his land. Subsequently, D sold the land to C.

In this case, the mortgage is extinguished, but the obli

gation subsits. The extinguishment of the accessor
y obligation does not carry with that of the princip
al obligation.
EFFECT OF MERGER IN THE PERSON O
F PRINCIPAL DEBTOR OR CREDITOR

Merger in the person of the principal debtor o

r creditor extinguishes the obligation. Hence,
the accessory obligation.
 EXAMPLE
D is indebted to C with G as the guarantor.
The merger of the characters of the debtor
and creditor in D shall free G from liabilit
y as guarantor.
Similarly, the merger which takes place in th
e person of C benefits G because the extin
ction of the principal obligation carries wi
th it that of the accessory of obligation of g
uaranty.
EFFECT OF MERGER IN THE PERSON
OF GUARANTOR
The extinguishment of the accessory obligati
on does not carry with it that of the principal
obligation. Consequently, merger, which take
s place in the person of the guarantor, while i
t extinguishes the guaranty leaves the princip
al obligation force.
 EXAMPLE
Suppose, in the example above, C assigns h
is credit to E who, in turn, assigns the cre
dit to G, the guarantor.
In this case, the contract of guaranty is exting
uished. However, D's obligation to pay the
principal obligation subsits, G now, as the
new creditor, can demand payment from
D.
 ART. 1277
Confusion does not extinguish a jo
int obligation except as regards
the share corresponding to the cr
editor or debtor in whom the char
acters concur. (1194)
 CONFUSION IN A JOINT OBLIGATI
ON
In a joint obligation, there are as many debts
as there are debtors anf as many credits as th
ere are creditors, the debts and/ or credits be
ing considered distinct and separate from on
e another. (Art 1208)
 EXAMPLE

A, B and C are jointly liable to D in the amount

of P9,000 evidenced by a negotiable promissory n
ote, D indorsed the note to E, who, in turn, indors
ed it to A.
In this case, A's share in the obligation is exting
uished because of confusion in his person. Howev
er, the indebtedness of B and C in the amount of P
3,000 each remains, because as to them there is n
o confusion. Consequently, B and C wouls be liabl
e to A, the new creditor, P3,000 each.
 CONFUSION IN A SOLIDARY OBLIG
ATION
Merger in the person of one of the solidary d
ebtors shall extinguish the entire obligation b
ecause it is also a merger in the other solidar
y debtors. (Art. 1215) Remember that in a sol
idary obligation there is only one obligation a
d every debtor is individually responsible for t
he payment of the whole obligation.
 EXAMPLE
In the example given, of the obligation of A,
B and C solidary, the indorsement to A e
xtinguishes the entire obligation of
P9,000. A can demand reimbursement fr
om B and C.
Here, the basis of the right of A is not the or
iginal obligation which has been extingui
shed by the confusion.