Confusion and Merger of Rights
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Transcript of Confusion and Merger of Rights
PS borrowed P 500k from Tricia.
PS issued Promissory Note
(PN) to TriciaTricia needs cashTricia discounts the note to denyelDenyel is indebted
to cheeDenyel PAYS CHEE
WITH THE PNCHEE BUYS CAR PARTS FROM PS
CHEE PAYS PS WITH
THE PN
Definition of Confusion or Merger
Confusion or merger is the meeting in one person of the qualities of creditor and debtor with respect to the same obligation
Reason/ Basis for confusion
1.A person cannot claim payment from himself.
2. The purposes for which the obligation is created are realized.
Requisites of confusion
1. Between the principal debtor and creditor
2. Complete and definite3. Involve one and the same obligation
TRICIA AND CHEE JOINTLY OWES PS
P 500k
TRICIA AND CHEE Needs to pay P250k each
TRICIA AND CHEE ISSUES
PROMISSORY NOTE (PN)
PS BUYS A DIAMOND RING
FROM CHEE
PS USES THE RING TO PROPOSE TO
HIS FIANCEÉ
I DO!PS PAYS WITH
TRICIA AND CHEE’s PN
TRICIA IS NOW LIABLE TO CHEE
Confusion in a Joint obligation
• Joint obligation-involve different debtors -demanded by different creditors -paid PROPORTIONATELY -SEPARATE and DISTINCT
• Confusion will extinguish only the share corresponding to the creditor or debtor in whom two characters concur.
TRICIA AND CHEE FORMS A
PARTNERSHIP: TRICHEE JEWELLERS
TRICHEE BORROWS P500K from PS for additional capital
TRICHEE ISSUES PROMISSORY NOTE
to PS
PS HAD AN ARGUMENT WITH
HIS WIFE
AHEYCHU!NO!!As a Sorry GIFT, PS
Buys a gold Necklace from Tricia
But he has no cash on hand, so he pays
with the PN
Confusion in a Solidary obligation
• Solidary Obl. -one obligation -every debtor is individually responsible for the whole obligation
Confusion will extinguish the entire obligation.Merger in 1 solidary debtor = merger in all
debtors*May claim reimbursement from co-debtors.