EXTINCTION OF OBLIGATIONS: CAUSES AND EXAMPLES - ARTE - 2024

The extinction of the obligations refers to the legal acts that produce the release of the obligor from the contracted obligation. Normally, the release of the obligor takes place when the obligation is extinguished; that is why it is taken into account as ways to extinguish obligations.

According to article 1156 of the Spanish Civil Code, «the obligations are extinguished: by payment or fulfillment, by the loss of the thing owed, by the forgiveness of the debt, by the confusion of creditor and debtor rights, by compensation and for the novation ».

They are known as causes of extinction of the obligations, since they set the end of the obligation bond. Without a doubt, the most common and often used is payment or fulfillment. Apart from the causes set forth in article 1156, we also find particular causes of extinction.

These particular causes are specific to one type of obligation and cannot be used in all obligations that exist. An illustrative example of this may be when the person with an obligation dies; in this case, the obligation is extinguished.

Causes

Payment or fulfillment

It is the usual way to extinguish the obligation and is regulated in article 1157 of the Civil Code. Regarding payment, there are five problems:

Who can pay?

The debtor is not the only one who can extinguish the debt through payment. There is the possibility that a third party makes the payment, even when the debtor does not agree. We also find specific obligations in which only the debtor can pay.

Who is paid?

You can make the payment to the creditor and also to a representative of the same. Obviously, as representatives are the attorney or the guardian, although there are also other representatives:

- Adiectus solutionis causa, which appears because the parties so establish it. They decide that the payment must be made to the adiectus, who has no rights to claim it.

- Adstipulator, the creditor who establishes a stipulatio with the debtor and undertakes to perform with him the same service that he owed to the creditor. In this case, payment can be demanded from the debtor, since the creditor delivered a mandate in order to claim payment.

Where you pay?

If nothing has been established, normal is at the debtor's home.

When is it paid?

If you have committed to a time to meet the payment, you have to follow it; otherwise, the creditor can claim the debt at any time.

How do you pay?

It is about satisfying what is due; it is called datio in solutio.

Loss of thing owed

It is a cause of extinction of the obligations in which the debtor agrees to give something in particular. Efficacy is lost the moment the thing that is the object of the obligation to give is lost; yes, provided that the loss can be attributed to the debtor.

Article 1182 of the Civil Code establishes the following: "The obligation that consists in delivering a certain thing will be extinguished when it is lost or destroyed without fault of the debtor, and before it has been constituted in default."

Debt forgiveness

It is the forgiveness of debt, regulated in article 1187 of the Civil Code. It refers to the legal act by which a creditor communicates his will to fully or partially extinguish his credit right. Of course, with nothing in return.

There are several types of forgiveness: voluntary, forced, inter vivos, mortis causa, total and partial.

Confusion of creditor and debtor rights

The confusion extinguishes the obligation if in the same person we find the two parts of the obligation. It is regulated in article 1192 of the Civil Code. There are many reasons that cause the confusion of rights, some of these are:

-Subrogation of a right or an obligation in a contract.

-Succession.

-Donation.

Compensation

It is a cause of extinction of the obligation when there are two debts in which their holders are, at the same time, debtor and creditor. In this way, a duplicate payment is avoided and the obligation is extinguished. It is reflected in article 1195 of the Civil Code. It has several conditions for its effectiveness:

-Each one of the obligated parties must be, mainly, being the other's main creditor.

-The two debts must be homogeneous: either an amount of money or fungibles of the same kind.

-They must be overdue, liquid and enforceable debts.

Novation

It is a cause of extinction of the obligation through modification or extinction of an obligation that is transferred to another. What happens is that the initial obligation is finished and it is replaced by a new one.

According to article 1203 of the Civil Code “the obligations can be modified:

- Varying its object or its main conditions.

- Substituting the person of the debtor.

- Subrogating a third party in the creditor's rights ”.

The novation consists of the termination by modification, either by substituting the debtor or subrogating a third party in the position of the creditor.

Examples

For loss of the thing owed

Juan agrees to supply 2 thoroughbred horses originating in Saudi Arabia; however, an epidemic occurs and the two horses die. The object of the benefit no longer exists, it was lost.

It is true that it is a mode of extinction of the obligation, but only if it occurs by chance or force majeure. That is, there is no responsibility on the part of the debtor in the loss of the thing owed.

For compensation

Mr. Mateo and Mr. Sánchez do business often. At a specific moment, Mr. Mateo sells a merchandise for 1000 euros to Mr. Sánchez. Mr. Mateo owes Mr. Sánchez 1000 euros for a consultancy that he performed for him.

Both debts are homogeneous and both are debtor and creditor, so they can be offset against each other and the obligation is extinguished.

References

1. Luis Abeledo (2013) Extinctive novation and modification novation. Luis Abeledo's blog.
2. G&EM Law firm in Madrid. Extinction of obligations. eliasymunozabogados.com
3. Rodolfo André. Extinction of obligations. Leyesnet.com
4. Hilda. (2003). Extinction of obligations. Guide 2000 Right.
5. Juan Andrés Orrego Acuña. Extinction of obligations-General theory of obligations. laultimaratio.com