I.

Novation

DORMITORIO v FERNANDEZ
ACTIVE subject (obligee or
creditor)
Municipality of Victorias
PASSIVE subject (obligor or
debtor)
Serafin Lazalita (bought 7
December 1948)
And ALSO

ISSUE
Whether
DOCTRINE
A final and executor judgment of a
trial court may be novated by
subsequent agreement of the parties

A decision based on a compromise

agreement has the effect of res judicata

Spouse Dormitorio (bought

1955)
OBJECT or PRESTATION
Lot 2, Block 16 in the
Poblacion of Victorias, Negros
Occidental
EFFICIENT CAUSE (vinculum
or juridical tie)
Deed of Definite sale
ISSUE
Whether Agreed
Stipulation of Facts
entered into by the parties
is a novation (of the court
judgment)

REYES v CA
FAST FACTS:

DOCTRINE
ACTIVE subject (obligee or
creditor)
PASSIVE subject (obligor or
debtor)
OBJECT or PRESTATION
EFFICIENT CAUSE (vinculum
or juridical tie)
ISSUE
Whether

MAGDALENA ESTATES, INC v RODRIGUEZ

FAST FACTS:

DOCTRINE
ACTIVE subject (obligee or
creditor)

COCHINGYAN, JR. v R&B SURETY AND INSURANCE CO., INC.

FAST FACTS:

PASSIVE subject (obligor or

debtor)

DOCTRINE

OBJECT or PRESTATION

ACTIVE subject (obligee or

creditor)

EFFICIENT CAUSE (vinculum

or juridical tie)

PASSIVE subject (obligor or

debtor)

debtor)
OBJECT or PRESTATION
OBJECT or PRESTATION
EFFICIENT CAUSE (vinculum
or juridical tie)

EFFICIENT CAUSE (vinculum

or juridical tie)

ISSUE
Whether

ISSUE
Whether

BROADWAY CENTRUM CONDOMINIUM CORPORATION v TROPICAL

HUT FOOD MARKET, INC.
FAST FACTS:

DOCTRINE
ACTIVE subject (obligee or
creditor)

SIME DARBY PHILIPPINES v GOOD YEAR PHILIPPINES

FAST FACTS:

ACTIVE subject (obligee or

creditor)

PASSIVE subject (obligor or

debtor)

PASSIVE subject (obligor or

debtor)

OBJECT or PRESTATION

OBJECT or PRESTATION

EFFICIENT CAUSE (vinculum

or juridical tie)

EFFICIENT CAUSE (vinculum

or juridical tie)

ISSUE
Whether

ISSUE
Whether

CALIFORNIA BUS LINES, INC. v STATE INVESTMENT HOUSE, INC.

FAST FACTS:

ACTIVE subject (obligee or

creditor)

PASSIVE subject (obligor or

DOCTRINE

DOCTRINE

GARCIA v LLAMAS
FAST FACTS: De Jesus issued check to pay for the loan entered
into by him and petitioner, but it bounced upon it presentment.
Respondent addressed a demand letter to petitioner Garcia and
de Jesus. Petitioner Garcia avers that he merely signed as an
accommodation party to the promissory note, and that, as such,
he was released as obligor when respondent agreed to extend the

term of the obligation. DENIED

DOCTRINE:
ACTIVE subject (obligee or
creditor)
Objective or personal (substitution)
Dionisio Llamas
The law requires that the creditor
PASSIVE subject (obligor or
expressly consent to the substitution
debtor)
of a new debtor (third person- not
Romeo Garcia and Eduardo
co-debtor).
De Jesus
OBJECT or PRESTATION
Express or implied? NO
P400,000
EFFICIENT CAUSE (vinculum
Novation is never presumed.
or juridical tie)
Promissory note to pay the
The creditor may demand payment or
loan jointly and severally
ISSUE performance from one of the solidary
Whether there is novation, debtor or some or all of the
either through the simultaneously , and payment made by
substitution of De Jesus as one of them extinguishes the obligation
a sole debtor OR the
replacement of the
promissory note by the
check? None

QUINTO v PEOPLE
FAST FACTS: Quinto received in trust jewelries from Cariaga for
the purpose of selling the same on commission basis with express
obligation on the part of the accused to turn over the proceeds of
sale thereof, or to return the jewelries, if not sold, five days after
receipt thereof. Cariaga consented to receive payment on
installments directly from buyeres
The accused, with intent to gain, grave abused of confident and to
defraud Cariaga, misapply and convert to her own personal use
and benefit the said jewelries and the proceeds of sale. Contract
was novated thus there is not liability to pay and estafa DENIED.
DOCTRINE
ACTIVE subject (obligee or
Extinctive or modificatory?
creditor)
Aurelia Cariaga
Expressed (incontrovertibly disclosed) or
PASSIVE subject (obligor or
implied (test of incompatibility/:
debtor)
irreconcilable incompatibility in any of the
Leonida Quinto y Calayan
essential elements of an obligation)?
OBJECT or PRESTATION

Jewelries (P36,000)
EFFICIENT CAUSE (vinculum
or juridical tie)
Trust; receipt (Ex. A): Akoy
hindi pinahihintulutang
ipagbili ito ang mga ito ng
Pautang
ISSUE
Whether the agreement
between the petitioner
and Cariaga was
effectively novated when
the latter consented to
receive payment on
installments directly from
(buyers) Mrs. Camacho
and Mrs. Ramos? None
Whether there is estafa?
Yes

Wherefore
CA decision AFFIRMED
MODIFIED penalty

Expromision or delegacion? Not too

common is when a stranger to a
contract agrees to assume an
obligation and while this may have
the effect of adding to the number of
persons liable, it does not
necessarily imply the extinguishment
of the liability of the first debtor.
Neither would the fact alone that the
creditor received guaranty or accepts
payment from a third person who has
agreed to assume the obligation,
constitute an extinctive novation
absent an agreement that the first
debtor shall be released from
responsibility.
The criminal liability (of estafa)
already committed is not affected by
the subsequent novation of contract,
for it is a public offense which must be
prosecuted and punished on by the State
in its own conation.
The sale of the pieces of jewelry on
installments in contravention of the
explicit term of the authority granted to
her in Ex. A is deemed to be one of
conversion
Estafa defined. (Art. 315, RPC)

LICAROS v GATMAITAN
FAST FACTS: DENIED.
DOCTRINE
ACTIVE subject (obligee or
creditor)
PASSIVE subject (obligor or
debtor)

OBJECT or PRESTATION

creditor)

EFFICIENT CAUSE (vinculum

or juridical tie)

PASSIVE subject (obligor or

debtor)

ISSUE
Whether

OBJECT or PRESTATION
EFFICIENT CAUSE (vinculum
or juridical tie)

ASTRO ELECTRONIC CORP v PHILIPPINE EXPORT AND FOREIGN

LOAN GUARANTEE COR
FAST FACTS:
DOCTRINE
ACTIVE subject (obligee or

ISSUE
Whether