Brief Summary
This video provides a detailed explanation of the extinguishment of obligations under the Civil Code, focusing on compensation and novation. It covers the different types of compensation (legal, conventional, facultative, and judicial), their requisites, and effects. The video also discusses novation, including its types (real and personal), effects on original and accessory obligations, and the concepts of substitution and subrogation.
- Compensation involves the offsetting of mutual debts between two parties.
- Novation is the modification or termination of an existing obligation and its replacement with a new one.
- Legal subrogation and conventional subrogation are explained with examples.
Introduction
The video introduces the topic of extinguishment of obligations, specifically focusing on compensation and novation as outlined in the Civil Code articles 1231 to 1304. The content builds upon previous discussions on payment, special modes of payment, loss of the thing due, condonation, confusion, and now covers compensation and novation.
Compensation
Compensation is discussed in detail, starting with its definition and different types: legal, conventional, facultative, and judicial. Legal compensation, which takes effect by operation of law, is emphasized. The speaker outlines the five necessary requisites for legal compensation: that each party is principally bound, both debts consist of a sum of money or consumable things of the same kind and quality, the two debts are due, they are liquidated and demandable, and there is no retention or controversy commenced by a third person.
Requisites for Legal Compensation
Each of the five requisites for legal compensation is explained with examples. The first requisite is that each party must be principally bound as a principal debtor and creditor of the other. The second is that both debts must consist of a sum of money or consumable things of the same kind and quality. The third is that the two debts are due, meaning they are both mature. The fourth is that they be liquidated and demandable, meaning the amount is determined. The fifth is that neither debt has any retention or controversy commenced by third persons.
Article 1280 and Conventional Compensation
Article 1280 is discussed, explaining that a guarantor may set up compensation as regards what the creditor may owe the principal debtor. Conventional or voluntary compensation is then introduced, noting that parties may agree upon compensation even if some requirements for legal compensation are not met, requiring the consent of both parties.
Judicial and Facultative Compensation
Judicial compensation is explained as compensation decided by the court, often in cases involving claims for damages. Facultative compensation is then discussed, highlighting that only one party can compel the compensation. Examples include debts arising from a deposit, claims for support due by gratuitous title, and obligations arising from penal offenses.
Examples of Facultative Compensation
The video provides examples of facultative compensation, such as obligations arising from contracts of deposit or commodatum, where the creditor can choose whether to allow compensation. Another example involves a claim for support, where the recipient of the support can prevent compensation. The final example covers civil liability arising from a penal offense, where the injured party can compel compensation.
Articles 1284 and 1285
Article 1284 states that when one or both debts are rescissible or voidable, they may be compensated against each other before they are judicially rescinded. Article 1285 discusses compensation in the context of assignment of rights, detailing scenarios where the debtor has consented, not consented, or has no knowledge of the assignment.
Article 1285 Examples
The video provides detailed examples to illustrate the application of Article 1285, particularly focusing on scenarios involving a debtor's consent, reservation of rights, and knowledge of assignment. These examples clarify how compensation is affected when a creditor assigns their rights to a third party.
Article 1286 and Introduction to Novation
Article 1286 explains that compensation takes place by operation of law, even if debts are payable at different places, with an indemnity for expenses of exchange or transportation. The discussion then transitions to novation, which involves modifying or extinguishing an existing obligation by creating a new one.
Types and Effects of Novation
The video details the types of novation: real (change of presentation or principal conditions) and personal (change of subjects, either debtor or creditor). It explains that novation extinguishes the old obligation and creates a new one. The effects of novation are discussed, including scenarios where the original obligation is void or voidable, and the consequences for the new obligation.
Effect of Novation on Accessory Obligations
The effect of novation on accessory obligations is examined, noting that when the principal obligation is extinguished, accessory obligations may subsist only if they benefit third persons who did not consent to the novation. An example is provided to illustrate this concept.
Substitution by Delegation
The discussion focuses on substitution, a type of personal novation where the debtor is replaced. Substitution by delegation, where the original debtor takes the initiative to present a new debtor to the creditor, is explained. The conditions under which the original debtor's obligations can be revived if the new debtor is insolvent are also detailed.
Substitution by Expromission and Subrogation
Expromission, where the new debtor takes the initiative to present themselves to the creditor, is contrasted with delegation. The video notes that in expromission, the original debtor's obligations are not revived unless they were an accomplice of the new debtor. The discussion then moves to subrogation, which involves the transfer of the creditor's rights to a third person.
Legal and Conventional Subrogation
The two types of subrogation, legal and conventional, are explained. Legal subrogation occurs automatically under certain conditions, such as when a creditor pays another preferred creditor, or when a third person pays with the debtor's approval. Conventional subrogation requires the consent of all parties involved.
Partial Subrogation and Conclusion
Partial subrogation is discussed, where a third person pays only part of the debt. In such cases, the original creditor retains preference for the remaining amount. The video concludes by summarizing the key points of extinguishment of obligations and announcing the next topic: contracts.
