Scribd
Upload
768 views2 pages

Chapter 4 (Section 6) Study Guide I

This document defines and discusses concepts related to novation under Philippine law including: 1) Novation is the total or partial extinction of an obligation through the creation of a new obligation that substitutes it. Mixed novation changes both parties and/or conditions of the obligation. 2) For novation to occur there must be a previous valid obligation, intention to modify or extinguish the obligation, the modification or extinguishment, and creation of a new valid obligation. 3) When there is subrogation, the new creditor acquires all rights related to the credit against the debtor or third parties like guarantors or mortgages. 4) A void obligation cannot be novated

Uploaded by

Leinard Agcaoili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
768 views2 pages

Chapter 4 (Section 6) Study Guide I

This document defines and discusses concepts related to novation under Philippine law including: 1) Novation is the total or partial extinction of an obligation through the creation of a new obligation that substitutes it. Mixed novation changes both parties and/or conditions of the obligation. 2) For novation to occur there must be a previous valid obligation, intention to modify or extinguish the obligation, the modification or extinguishment, and creation of a new valid obligation. 3) When there is subrogation, the new creditor acquires all rights related to the credit against the debtor or third parties like guarantors or mortgages. 4) A void obligation cannot be novated

Uploaded by

Leinard Agcaoili
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter 4 (Section 6)

STUDY GUIDE

I. Definition
1. Novation
- Is the total or partial extinction of an obligation through the creation of a new
one which substitutes it.
2. Mixed novation
- When the object and/or principal conditions of the obligation and the debtor or
the creditor, or both the parties, are changed.
3. Expromision
- It takes place when a third person of his own initiative and without the
knowledge or against the will of the original debtors assumes the latter’s
obligation with the consent of the creditor.
4. Delegacion
- It takes place when the creditor accepts a third person to take place of the
debtor at the instance of the latter.
II. Discussions
1. Give the requisites of novation.
- 1) A previous valid obligation 2) Capacity and intention of the parties to
modify or extinguish the obligation 3) The modification or extinguishment of
the obligation 4) The creation of a new valid obligation.
2. When there is subrogation, what rights are acquired by the new creditor?
- Article 1303 states that subrogation transfer to the person subrogated the
credit with all the rights there to appertaining, either against the debtor or
against third persons, be they guarantors or possessors or mortgages, subject
to stipulation in a conventional subrogation.
3. Innovation, give the effect where:
a. The new obligation is voidable
 Article 1297 stresses one of the essential requirements of a novation,
the new obligation must be valid.
b. The old obligation is voidable. Explain.
 A void obligation cannot be novated because there is nothing to
novate. However, if the original obligation is only voidable or if the
voidable obligation is validated by ratification, the novation is valid.
4. In novation, are accessory obligations necessarily extinguished? Explain.
- It provides, however, an exception in the case of an accessory obligation
created in favor of a third person which remains in force unless said third
person gives his consent to the novation.
III. Problems
Explain or state briefly the rule or reason for your answer.
1. T (third person) tells C (creditor) that T will pay the debt of D (debtor). C agrees.
Is D released from his obligation to C?
- Yes, Because the original debtor agrees to substitute his obligation to the third
person even without the consent of the debtor. (Article 1293)
2. Suppose in the above problem, D proposed to C that T would substitute D as the
new debtor to which C agreed. Is D still liable to C in case of insolvency of T?
- No, the original debtor will no longer have the obligation unless the
insolvency already existing. (Article 1295)
3. T paid C the debt of D without objection from the latter. What are the rights of T?
- It is said in Article 1302 that even without the knowledge of the debtor the
third person can pay without prejudice to the effect of confusion as to the
latter’s share.
4. Illustrate a mixed novation.
- When the object and/or principal conditions of the obligation and the debtor or
the creditor, or both the parties, are changed. It is a combination of real and
personal novations.

You might also like