hi guys and welcome to another episode of eternity bloggers law for the everyday laymen today I'm going to be talking about extinguishment of obligations specifically in part one of the series I'm going to be talking about payment or performance now if you've been enjoying my videos and you want to see more please hit the subscribe button okay now before I proceed I would like to inform my regular viewers that this series should be taken merely for educational or informative purposes only and should not serve as a substitute for proper legal advice okay and for my students I would like to reiterate that this is merely additional learning material and cannot be used as a substitute for actually reading and studying the law okay now let's move on payment or performance is defined by the law as the delivery of money or the performance in any other manner of an obligation okay so the first principle we have to understand is that it is the debtor who has the burden to prove that payment has been made okay so when do we know payment has been made here are the following principles first okay the payment has two requisites identity and integrity let's go first to identity when it comes to identity it must be the object or PlayStation itself which has to be delivered by the debtor to the creditor okay if the object is a specific thing the debtor cannot compel the creditor to receive a different object even if such different object is of the same or higher quality okay now if the thing is indeterminate or generic then the creditor cannot ask for a thing of superior quality and the debtor cannot compel the creditor to receive a thing of inferior quality okay now there is a special rule of payment where the object itself need not be delivered this is called Dacian in payment or Gaston in Pargo okay so what is the station in payment it is the conveyance or transfer of ownership in payment or satisfaction of a debt in money for instance a debtor has a depth of one hundred thousand pesos and in order to satisfy the same in delivery sistar to the creditor if the creditor accepts then the obligation is extinguished because the creditor has considered the car has payment okay in such a case a station in payment shall be governed by the law on sales because it is actually insane okay let's move on to the other aspect no integrity when you say integrity payment must be complete in order to be valid in other words a creditor cannot be compelled to accept partial payments however this general rule is subject to exceptions first if there is an express the relation such as when the obligation is to be paid in installments then necessarily that is payment in partial installments okay now second exception if there has been substantial performance but the substantial performance by the debtor must have been done first in good faith and should only involve a slight deviation meaning the difference on a negligible or so very small that it does not affect the main obligation and there has been no intentional departure by the debtor from the intent or course of the obligation okay final exception is when the creditor accepts the partial performance with actual knowledge of the defect in such case it is akin to a waiver wherein the character says okay that is good enough okay let's move on to the second principle payment must be made by the person who is obligated under the okay and who is this payment must be made by the debtor in other words the Tranter is not bound to accept payment by a third person was no interest in the obligation now this general rule is subject to an exception if there is an Express stipulation to the contrary in other words if the parties have agreed that payment can be made by a third person then it will be valid okay so what is the rules in case creditor accepts payment from a third person okay first if payment made a third person was with the knowledge of the debt or the inductor third person can compel the creditor to subrogate him in the creditors lines and the third person can ask reimbursement from the debt or okay what is this subrogation it would simply means that the third person can ask the creditor or compel the creditor to transfer whatever rights rights the creditor has over the obligation such as if the creditor has a mortgage or a guarantee constituted in his favor then the third person by virtue of payment with knowledge of the debtor can compel that creditor to subrogate him or to transfer those rights to him okay now what if payment by the third person was without the knowledge of the debtor then the third person can only recover in recovery embracement only insofar as it has rebounded to the benefit of the debtor he cannot ask for more from San Lang not benefit see later but the more important implication is the third person cannot compel the creditor to subrogate him in his rights okay Dena mohani third person writes the creditor over the mortgage over the guarantee or any other line okay now payment must be made to the person who is entitled to receive the obligation okay that's the next vegetable okay in other words who is the person entitled to receive payment it is only either the creditor himself his successors in interests or the person authorized by the creditor to receive payment okay now that this implies that payment by the debtor to a third person is in general not Pauline okay however there is an instance when the payment to a third person will be valid and this as this is when the benefit has redundant to the benefit of the creditors when payment has redundant to the benefit of the creditor okay so again the general rule is the payment must be made to the creditor and payment cannot be made to a third person unless it has redounded to the benefit of the creditor so how do we know that the creditor has benefited the law establishes presumptions in our favor to make it easier first though when the third person acquires the creditors rights okay second when the creditor ratifies okay or recognizes the payment the third person next when by the creditors conduct the debtor had been led to believe that the third person had authority to receive the payment okay in those cases payment to a third person may be valid okay finally the law says that payment in good faith to a person in possession of the credit will extinguish the obligation okay let's move on now to the third major principle how must payment be made okay first we follow the stipulation of the parties if the parties had agreed that payment will be made in a certain currency let's say payment should be made in Japanese yen then that stipulation must be followed okay now in the absence of an express stipulation payment must be made in legal tender and what is legal tender simply put it is the currency which the debtor must pay and the creditor must accept okay the debtor can be compelled to pay and which the creditor can be compelled to accept okay that is legal tender in a nutshell no now moving on what about checks no or bills or promissory notes thus do these do these instruments produce the effect of payment as a general rule no they do not accept payment okay unless they have been in cash or through the creditors ups they have been impaired okay so mere acceptance when the creditor does not produce payment it is only when the creditor has been able to in cash the same regardless of it is whether designated as a manager's chair or whatever other designation they will not produce the effect of payment until they have been in cash okay so one more important point is under the route the law of BSP no coins constitute legal tender okay points below 25 centavos are valid as legal tender up to one hundred pesos all day while coins of one peso denominations above are valid up to one thousand pesos so if a cashier refuses your payment of a thousand pesos consisting of one peso coins you may have legal ground to claim that that is legal tender and she seppia okay okay now let's pass on briefly on an extraordinary inflation or deflation this contemplate a situation such such as in after World War two when people in Germany were throwing money out the window in order for their relatives to catch it to buy bread this was because the price of bread was fluctuating so fast that they could not get money out right in time to meet the actual price of the brand pay in this situation what will be the legal currency your legal tender contemplated that legal tender which was in place at the time of the constitution of the obligation will be governing okay now finally let's move on to where payment must be made okay in general as we follow the stipulation of the police if the parties had agreed on a certain place where payment must be made then that is the place of payment in the absence of stipulation then the payment must remain where the determinate thing is situated NASA an Imagineer okay and finally in the absence of the first two then payments shall be made at that domicile okay so that's it for the basic principles of principles of payment and please wait for my next video on application of payments session and tender of payment and consummation otherwise known as the special rules of payment okay so it's been fun see you