The legal basis for the requisites of novation in the Philippines is primarily found in the Civil Code of the Philippines (Republic Act 386). Here's the specific provision: Article 1292 of the Civil Code of the Philippines:   "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." Explanation This article outlines the four essential elements required for a valid novation: A previous valid obligation:  The original contract needs to be legally binding. Agreement of all the parties to the new contract:  Explicit or implied intention to create a new contract is needed. Extinguishment of the old contract:  The old contract ceases to exist. Validity of the new one:  The new contract must meet all requirements for enforceability. Important Note: Remember that court decisions...

  1. A Previous Valid Obligation Novation requires a pre-existing, legally enforceable obligation to serve as the basis for the modification. If the original contractual obligation is void or unenforceable, novation cannot take place. 2. Agreement of All Parties to the New Contract For a valid novation, all parties must agree to the creation of the new contract. This includes: The original debtor The original creditor The new debtor or creditor (if involved in substitution or subrogation scenarios) Consent can be express or implied based on the circumstances. 3. Extinguishment of the Old Contract Novation results in the termination of the original obligation. It's a replacement, not a mere modification of the existing terms. The old contract must be completely extinguished. 4. Validity of the New One The new contract must fulfill all legal requirements to be enforceable. This includes factors like lawful object, proper form, and the capacity of the parties involved. Key Points: Exp...

  Civil Code of the Philippines (Republic Act 386) Novation is primarily defined and regulated under the Civil Code of the Philippines. The key provisions are: Article 1291:  Outlines the concept of novation and its methods: "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." Article 1292:  Establishes the four essential requirements of novation. Article 1293:  Deals with novation by substituting a new debtor. Article 1294:  Addresses the effects of novation on accessory obligations. Article 1295:  Discusses when novation takes place. Article 1296:  Covers the presumption against novation. Relevant Jurisprudence In addition to the Civil Code provisions, there have been significant Supreme Court decisions that have further interpreted and shaped the application of novation in the Philippines. Some notable cases includ...

  What is Novation? Novation is a legal process where an existing contract or obligation is replaced with a new one. This can involve several scenarios: Change of object or principal condition:  Altering the thing due or core terms of an existing obligation. Substitution of debtor:  A new debtor takes over the original debtor's obligations. Subrogation of creditor:  A third party assumes the creditor's rights in the obligation. Types of Novation Express Novation:  The parties explicitly state their intent to extinguish the old obligation and create a new one. Implied Novation:  The old and new obligations are completely incompatible, implying a novation even without an express declaration. Essential Requisites of Novation (Philippine Civil Code) A previous valid obligation:  The original obligation must be legally binding. Agreement of all parties:  All involved parties (original debtor, original creditor, and the new party, if applicable) must ag...

What is Payment by Cession? Cession  (or Assignment): In a legal context, cession means transferring a right from one person (the cedent or assignor) to another (the cessionary or assignee). Payment by Cession : This occurs when a debtor, with the consent of the creditor, transfers ownership of their property to the creditor as a form of fulfillment for an outstanding obligation (debt). Key Points (under Philippine Law) Governing Law:  The primary laws governing cession in the Philippines are found in the Civil Code of the Philippines, specifically Articles 1255 to 1263. Consent:  Consent from all parties (debtor, creditor, and potentially third-parties) is generally required for a valid cession. Debtor's Release:  After the cession, the debtor's responsibility is limited to the net proceeds of the assigned property. They are released from further liability unless expressly agreed upon in the contract. Third-Party Rights:  A cession cannot adversely affect the r...

 A  case digest of Olbes vs. Deciembre, 457 SCRA 341. Case Title: Spouses Franklin and Lourdes Olbes vs. Atty. Victor V. Deciembre Citation: A.C. No. 5365, April 27, 2005 Facts The Olbes spouses engaged Atty. Deciembre to represent them in a civil case. As security for his legal fees, the spouses gave Atty. Deciembre signed blank checks. The civil case was resolved, and the Olbes spouses paid Atty. Deciembre's fees in full. Despite full payment, Atty. Deciembre filled out the blank checks with amounts far exceeding the agreed-upon fees and deposited them. Additionally, Atty. Deciembre initiated unfounded criminal cases (for estafa and violation of the bouncing checks law) against the Olbes spouses. Issues Whether Atty. Deciembre violated the Code of Professional Responsibility by filling out blank checks with unauthorized amounts. Whether Atty. Deciembre's act of filing unfounded criminal suits against his clients constituted misconduct. Key Points for Law Students Attorney-...

A case digest with key points for law students of the case In re: Avanceña, 20 SCRA 1012 : Case Title: In re: Attorney Jose Avanceña Citation: G.R. No. 407, August 15, 1967 (20 SCRA 1012) Facts: Attorney Jose Avanceña was convicted of falsification of a public document under Article 172 of the Revised Penal Code. The trial court found that Avanceña used his position as a lawyer to defraud his clients. Due to this conviction, the Supreme Court provisionally suspended Avanceña from the practice of law pending the final outcome of his criminal appeal. The Court of Appeals later affirmed Avanceña's conviction. Issue: Whether or not an attorney convicted of a crime involving moral turpitude, especially one in which he abused his position as a lawyer, should be disbarred. Holding: Yes. The Supreme Court disbarred Attorney Avanceña. Reasoning: Conviction as grounds for disbarment:  An attorney's conviction of a crime involving moral turpitude is a ground for disbarment under Section...