Elecciones de 1998

a. When the parties have agreed partial performance

b. When the full performance of the obligation becomes impractical

If payment is made by an incapacitated person, what is the status of the payment? -Art. 1239. In obligations to give, payment made by one who does not have the free disposal of the thing due and capacity to alienate it shall not be valid, without

prejudice to the provisions of Art. 1427 under the Title on Natural Obligations

-Provisions of Art. 1427 that makes payment voidable because under 1427, a minor can recover what he has paid for as long as what has been paid is still in the

possession of the creditor. When will Art. 1427 apply?

When the one who makes the payment is a minor between 18-21, however, age of majority was reduced to 18 by RA 6809, thus a minor is below 18 years of age

Therefore, when payment is made by a person below 18 years of age What is the effect of payment if it is made to an incapacitated person?

Payment shall not be valid, except or unless,

Art. 1231. Payment to a person who is incapacitated to administer his property shall be valid if:

1. he has kept the thing delivered, OR

2. insofar as payment has been beneficial to him (even if he did not keep the thing paid)

Insofar as benefit is concerned, it refers to ALL KINDS of BENEFITS, the ONLY EXCEPTION refers to SENSUAL BENEFIT.

1241

Must payment be always made by a debtor for it to be valid? -No

What is the effect of payment if it is made by a third person? 2 Effects to consider if payment is made by a 3rd _person 1. Status of Payment

2. What rights does the payer acquire from the principal debtor Explanation:

1. The mere fact of payment by a third person does not make the payment void, for as long as the creditor accepts the payment, it is valid.

What is essential is the acceptance of the creditor

2. You have to make a distinction between a third person who seeks reimbursement and a third person who does not seek reimbursement.

If the third person who makes the payment, has the intention of seeking reimbursement:

First question is whether the principal debtor consented to the payment? If the third person pays without the consent or knowledge of the principal debtor, he only acquires the right of BENEFICIAL REIMBURSEMENT

Beneficial Reimbursement means that the third person is entitled to reimbursement up to the extent that was beneficial to the principal debtor

If payment was accepted by the creditor, the obligation is extinguished If no benefit redounded to the principal debtor, he cannot seek reimbursement His remedy is to go after the creditor (since creditor condoned the obligation, e.g. Condonation)

Suppose payment was authorized by the principal debtor, the third person acquires 2 rights:

1. Right of Absolute Reimbursement 2. Right of Subrogation

Right of Absolute Reimbursement

Whether or not debtor benefitted, the third person is entitled to reimbursement Right of Subrogation

Acquisition of all the rights of the creditor which---

What will be the effect of payment made by a third person who has no intention of seeking reimbursement?

What will make it a donation is when the principal debtor consents to such payment

Consent of debtor is necessary to give rise to a donation

The donee must accept the donation for it to be valid, in this case, the debtor must consent to the payment in order to become a donation (the donee is the debtor)

There can be no donation unless the donee accepts the donation

What is the effect of payment if made by a debtor not to the creditor but to a third person?

Payment is valid provided it redounds to the benefit of the creditor, however, such benefit must be proven by the debtor.

Proof of payment is required, w/o proof , payment is not valid. Proof of payment is not required in the following:

Article 1241. Payment to a person who is incapacitated to administer his

property shall be valid if he has kept the thing delivered, or insofar as the payment has been beneficial to him.

Payment made to a third person shall also be valid insofar as it has redounded to the benefit of the creditor. Such benefit to the creditor need not be proved in the following cases:

(1) If after the payment, the third person acquires the creditor's rights; (2) If the creditor ratifies the payment to the third person;

(3) If by the creditor's conduct, the debtor has been led to believe that the third person had authority to receive the payment. (1163a)

Proof of payment is always necessary, why is proof being dispense here by the law? 1. If after the payment, the third person acquires the creditor's rights;

The fact that the third person who received the payment has now acquired the rights of the creditor, the third person becomes the creditor, thus, as a creditor, he does not need to issue a proof.