section 3 condonation or remission of the Debt

Condonation or Remission of the Debt (Art. 1270)

Condonation (or remission) means the creditor voluntarily forgives the debt, so the debtor no longer has to pay.

Nature of Condonation or Remission

A gratuitous act where the creditor voluntarily cancels the debtor’s obligation, wholly or partially, without receiving anything in return.

Requisites of Condonation or Remission

mnemonics: FANGPO

1. Follow donation form if express

2. Accepted by debtor

3. Not inofficious

4. Gratuitous

5. Parties have capacity

6. Obligation is demandable

Inofficious Donations

An inofficious donation is one that harms the rights of compulsory heirs or exceeds what the donor can legally give.

It is partially or totally reduced by law to protect the heirs.

Forms of Donation - movable property (Art. 748):

• May be oral or written.

• If over ₱5,000 → must be in writing (with acceptance) or void.

Forms of Donation - Immovable property (Art. 749):

• Must be in a public document specifying the property and charges.

• Acceptance must also be in a public document and made during the donor’s lifetime.

Kinds of Remission or Condonation - as to form

a. Express

b. Implied

Express

made according to the formalities required by law for donations

Implied

not made with the formalities of donation but inferred from the acts of the creditor

Kinds of Remission or Condonation - as to extent

a. Total

b. Partial

total

The entire obligation is extinguished

Partial

Only part of the obligation is extinguished (e.g., only the principal, accessory obligation, or an aspect affecting the debtor)

Kinds of Remission or Condonation - as to constitution

a. Inter vivos

b. Mortis Causa

Inter vivos

made by agreement of the creditor and debtor that takes effect during the lifetime of the donor

Mortis causa

made through a will that takes effect upon the death of the donor

Presumption of Remission by Delivery of Private Document (Art. 1271)

If the creditor voluntarily gives the debtor the private document of the debt, it implies remission (waiver of the right to collect), unless it is proven that the document was delivered because the debt was actually paid.

Presumption of Remission from Debtor’s Possession of Document (Art. 1272)

If the private document of the debt is found with the debtor, it is presumed that the creditor voluntarily delivered it, unless the contrary is proven.

Effect of Remission on Accessory Obligations (Art. 1273)

Remission of the principal debt extinguishes accessory obligations, but remission of accessory obligations does not extinguish the principal debt.

Presumption of Remission of Pledge (Art. 1274)

If the pledged thing is found in the possession of the debtor or its owner, it is presumed that the creditor remitted the pledge.