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Condonation and Remission of Debt Explained

This document provides definitions, discussions, and problems related to condonation or remission of debt under Philippine law. 1. It defines condonation or remission of debt as the gratuitous abandonment by the creditor of his right against the debtor, which is a form of donation. Inofficious remission is when the remission given is more than what the creditor can give by will. 2. For condonation to be valid, there must be a demandable debt, the renunciation must be gratuitous and accepted by the debtor, and formalities of donation must be followed. Remission is considered inofficious if it is more than what the creditor can

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Leinard Agcaoili
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460 views2 pages

Condonation and Remission of Debt Explained

This document provides definitions, discussions, and problems related to condonation or remission of debt under Philippine law. 1. It defines condonation or remission of debt as the gratuitous abandonment by the creditor of his right against the debtor, which is a form of donation. Inofficious remission is when the remission given is more than what the creditor can give by will. 2. For condonation to be valid, there must be a demandable debt, the renunciation must be gratuitous and accepted by the debtor, and formalities of donation must be followed. Remission is considered inofficious if it is more than what the creditor can

Uploaded by

Leinard Agcaoili
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
  • Study Guide

Chapter 4 (Section 3)

STUDY GUIDE

I. Definition
Define or give the meaning of the following:
1. Condonation or remission of debt
- The gratuitous abandonment by the creditor of his right against the debtor. It
is thus a form of donation.
2. Inofficious remission
- When the remission given is more than that which the creditor can give by
will.
II. Discussions
1. Give the requisites in order that a condonation or remission of debt may be valid.
- According to Article 1270, for condonation or remission to be valid, the
following requisites must concur: the existence of a demandable debt.
Renunciation of the debt is purely gratuitous, acceptable of the condonation or
remission by the debtor, formalities required by law a donation must complied
with, what has been condoned or remitted must not be inofficious.
2. When is the condonation or remission of debt considered inofficious? What is the
remedy of the party adversely affected whereby?
- According to Art. 1270, the condonation or remission of the debt is considered
inofficious if it is more than that which the creditor can give by will. The
remedy is that the testamentary dispositions which impair the legitimate shall
be reduced on petition of the heir.
III. Problems
Explain or state briefly the rule or reason for your answer.
1. D (debtor) borrowed money from C (creditor) evidenced by a promissory noted
signed by D.
a. What presumption arises if:
i. The promissory note is voluntarily given by C to D?
 According to Article 1271, the delivery of a private credit
evidencing a credit, made voluntary by the creditor to the debtor,
implies the renunciation of the action which the former had against
the latter. Thus the presumption is that C has renounced his rights
against D and a remission of debt occurred.
b. When will the presumption of remission arise?
 According to Article 1271, whenever the private document in which
the debt appears in found in the possession of the debtor, it shall
presumed that the creditor delivered it voluntarily, Thus it is presumed
that C delivered the promissory note to D and the debt has been
remitted.
2. Suppose in the same problem, the debt of D, aside from being guaranteed by G, is
secured by a pledge of a certificate of shares of stock delivered by D to C. What
presumption arises if:
a. The debt of D is condoned by C?
 According to Article 1273, the renunciation of the principal debt shall
extinguish the accessory obligation. Thus, if C condoned the debt, then
the guaranty and security is likewise extinguished.
b. The certificate is later found in the possession of D?
 According to Article 1271, it is presumed that the accessory obligation
of pledges has been remitted when the thing pledged after its delivery
to the creditor, is found in the possession of the debtor. Thus, is it
presumed that D’s pledge of shares by stock has been remitted.

Common questions

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Article 1271 implies that when a private credit document is located with the debtor, it signifies the creditor's implied intention to renounce their claim against the debtor. This presumption of voluntary delivery suggests that the creditor intended to forgive the debt, thus translating into a legal remission of obligation .

The presumption that a pledge has been remitted arises when the pledged item, after being delivered to the creditor, is subsequently found in the possession of the debtor. According to Article 1271, this scenario leads to the assumption that the accessory obligation of the pledge has been remitted .

According to Article 1273, when a principal debt is renounced, it simultaneously extinguishes all accessory obligations linked to it. Thus, if a debt secured by a pledge is condoned by the creditor, the pledge itself is also considered extinguished along with the principal debt .

The voluntary delivery of a promissory note by the creditor to the debtor implies, according to Article 1271, that the creditor has renounced their rights against the debtor. Consequently, this results in the presumption of debt remission, effectively terminating the debtor’s obligation .

The rights of an heir can be adversely impacted by the inofficious remission of a debt, as it could diminish their legitimate inheritance share. In such cases, the heir can petition for the reduction of testamentary dispositions that impair their legitimate share, ensuring these rights are not wrongfully diminished through excessive donor intentions by the creditor .

The condonation or remission of debt is considered inofficious if it exceeds what the creditor is permitted to grant by will. In such cases, the appropriate remedy for the adversely affected party is to petition for a reduction of the testamentary dispositions that impair the legitimate share of the heir .

Gratuitous renunciation is central to the validity of condonation or remission of debt as it establishes that the creditor's abandonment of their claim is without compensation and made out of pure liberality. This gratuitous aspect is crucial in legal terms as it differentiates the act from one that is enforceable due to any form of reciprocal consideration, thus fulfilling one of the key criteria outlined in Article 1270 .

When a promissory note is found in the possession of the debtor, Article 1271 presumes that the creditor voluntarily delivered it to the debtor. This implies that the creditor has renounced their rights, thereby leading to an assumption that the debt has been remitted and the debtor's obligations are deemed satisfied .

For a condonation or remission of debt to be valid, several conditions must be met: there must be an existing demandable debt, the renunciation of the debt should be gratuitous, the debtor must accept the condonation or remission, the formalities for a donation as required by law must be complied with, and the remission must not be inofficious .

The donation given as a form of condonation of debt must comply with legal formalities if it is to be valid. This requirement, as stated in Article 1270, ensures that the donation and thus the condonation is genuinely gratuitous and intentional. Compliance is significant because it provides legal certainty and prevents disputes related to the justification of the debt remission .

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