Novation of a Contract or Debt: When Is the Old Obligation Replaced?
Understand when changing parties or terms creates novation, when the old obligation survives, and what evidence proves replacement.
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Compensation or Setoff: When Do Mutual Debts Cancel Each Other?
Learn when two parties who owe each other may offset their debts, the legal requirements, exclusions and evidence needed.
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Dation in Payment: Can Property Be Given Instead of Cash?
Understand when a creditor may accept property instead of money and what documents, valuation and transfer requirements protect both parties.
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Can Someone Else Pay Your Debt? Third-Party Payment Rules
Learn when another person may pay a debt, what reimbursement they may demand, and when subrogation or debtor consent matters.
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Application of Payments: Which Debt Does Your Payment Cover?
When several debts exist, learn who chooses which debt is paid and how Articles 1252–1254 allocate an undesignated payment.
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What Happens if Payment Is Made to the Wrong Person?
Understand when payment to someone other than the creditor is valid, when it benefits the creditor, and what the debtor must prove.
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How Does Payment Extinguish an Obligation in the Philippines?
Learn when payment legally extinguishes an obligation, what counts as complete performance, and which records protect both debtor and creditor.
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Collecting Unpaid Debt: What a Creditor Must Prove, Interest and Defenses
What a creditor must prove to collect an unpaid debt in the Philippines: evidence checklist, demand, interest and penalty computation, and the defenses that can defeat or reduce the claim.
