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Kinds of novation

Effect of assignment of rights in compensation

Guarantor's right in compensation

Obligation that CANNOT be compensated

Republic v. Cagandahan (G.R. No. 166676, September 12, 2008)

Silverio v. Republic (G.R. NO. 174689, October 19, 2007)

Kinds of compensation

Merger in joint, solidary obligations

Effects of merger upon guarantors

What is confusion or merger?

Formalities, presumption in remission of obligation

Kinds of condonation or remission

What is condonation or remission?

Unforeseen difficulty extinguishes obligation

Impossibility of performance in obligation to do

Cayetano v. Monsod (G.R. No. 100113)

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