Civil Code of the Philippines:

Section 6, Novation
A Reaction Paper on problem 1 and 2 page 305 of the book,
The Law on Obligations and Contracts by Hector S. De Leon
Group No. 12, May 16, 2016
ECE70/ C11
Yambao, Karen Alyssa M.
#

School of Electrical, Electronics, and Computer Engineering Department, Mapua Institute of Technology
Intramuros, Manila Philippines
ayenyambao24@gmail.com

Abstract

This document provides an overview on

the topic of Novation. It covers the topics and articles
under section 6 of the book. Moreover, it explains every
situation to make it more understandable. This paper
aims to educate the students about the existing laws in
the Philippines and make them understand the possible
effects or results of each obligations as well as the
rights involve in such cases.
Keywords subrogation, insolvency,
delegacion, substitution and novation

I.

expromision,

INTRODUCTION

This paper gives a reaction regarding the

articles under section 6 of the Laws on the
Obligations and Contracts.
Novation is the total or partial extinction of
an obligation through the creation of a new one
which substitutes it. It can extinguish or modify an
existing obligation or to substitute a new one it its
place.
II.

ARTICLES

Article 1291. Obligations may be modified by:

(1) Changing their object or principal conditions;
(2) Substituting the person of the debtor; (3)
Subrogating a third person in the rights of the
creditor. (1203)
Article 1292. In order that an obligation may be
extinguished by another which substitutes the same,
it is imperative that it be so declared in unequivocal
terms, or that the old and the new obligations be on
every point incompatible with each other. (1204)
Article 1293. Novation which consists in
substituting a new debtor in the place of the original
one, may be made even without the knowledge or
against the will of the latter, but not without the
consent of the creditor. Payment by the new debtor

gives him the rights mentioned in the articles 1236

and 1237. (1205a)
Article 1294. If the substitution is without the
knowledge or against the will of the debtor, the new
debtors insolvency or non-fulfilment of the
obligation shall not give rise to any liability on the
part of the original debtor.
Article 1295. The insolvency of the new debtor,
who has been proposed by the original debtor and
accepted by the creditor, shall not revive the action
of the latter against the original obligor, except
when said insolvency was already existing and of
public knowledge, or known to the debtor, when he
delegated his debt. (1206a)
Article 1296. When the principal obligation is
extinguished in consequence of a novation,
accessory obligations may subsist only insofar as
they may benefit third persons who did not give
their consent. (1207)
Article 1297. If the new obligation is void, the
original one shall subsist, unless the parties intended
that the former relation should be extinguished in
any event.
Article 1298. The novation is void if the
original obligation was void, except when
annulment may be claimed only by the debtor, or
when ratification validates acts which are voidable.
(1208a)
Article 1299. If the original obligation was
subject to a suspensive or resolutory condition, the
new obligation shall be under the same condition,
unless it is otherwise stipulated.
Article 1300. Subrogation of a third person in
the rights of the creditor is either legal or

conventional. The former is not presumed, except in

cases expressly mentioned in this Code; the latter
must be clearly established in order that may take
effect. (1209a)

it be so declared in unequivocal terms, or

that the old and the new obligations be on
every point incompatible with each other.
On the problem, it is not clearly stated
that the subsequent obligation novates the
first obligation. Novation is not presumed,
it should be clearly and unmistakably
established either by the express
agreement of the parties or acts of
equivalent import. Obligation of D to C is
not extinguished according to the article
stated since there is no occurrence of
novation and if there is, the former
obligation will be extinguished and the
new obligation will be enforced. Though
there is a modification in the obligation it
is not valid to presume that there is a
novation.

Article 1301. Conventional subrogation of a

third person requires the consent of the original
parties and of the third person.
Article 1302. It is presumed that there is legal
subrogation: (1) When a creditor pays another
creditor who is preferred, even without the debtors
knowledge; (2) When a third person, not interested
in the obligation, pays with the express or tacit
approval of the debtor; (3) When, even without the
knowledge of the debtor, a person interested in the
fulfilment of the obligation pays, without prejudice
to the effects of confusion as to the latters share.
(1210a)
Article 1303. Subrogation transfers to the
person subrogated the credit with all the rights
thereto appertaining, either against the debtor or
against third persons, be they guarantors or
possessors of mortgages, subject to stipulation in a
conventional subrogation. (1212a)
Article 1304. A creditor, to whom partial
payment has been made, may exercise his right for
the remainder, and he shall be preferred to the
person who has been subrogated in his place in
virtue of the partial payment of the same credit.
(1213)
III.
1.

2.

T (third person) tells C (creditor) that T

will pay the debt of D (debtor). C agrees.
Is D released from his obligation to C?
Suppose in the above problem, D
proposed to C that T would substitute D as
the new debtor to which C agreed. Is D
still liable to C in case of insolvency of T?
IV.

1.

PROBLEMS

ANSWERS TO PROBLEMS

For the first problem, No, D will not be

released from his obligation. According to
article 1292, In order that an obligation
may be extinguished by another which
substitutes the same, it is imperative that

2.

According to Article 1295, The

insolvency of the new debtor, who has
been proposed by the original debtor and
accepted by the creditor, shall not revive
the action of the latter against the original
obligor, except when said insolvency was
already existing and of public knowledge,
or known to the debtor, when he
delegated his debt. On this article, it is
clearly stated that once there is a new
debtor the old debtor is not anymore
liable to the creditor and in case of
insolvency of the new debtor, the old
debtor is not anymore involved to it
especially when the insolvency of the new
debtor is not known to the old debtor. But
in case that the insolvency of the new
debtor is already existing, then the old
obligor is still liable to the creditor, this is
to prevent fraud from the involved parties.
V.

ACKNOWLEDGEMENT

I would like to thank my parents for their

unending support. To the One above who always
gives me hope whenever I feel down and to my
friends who continue to help me understand the
topics and give resources on the related topics.
VI.

REFERENCES

[1] De Leon, Hector S. The law on obligations and

contracts. REX Publishing Inc. pp 289-305, 2014
Revised edition