ARTICLE 1291

 Article 1291

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.


Concept of Novation - Novation is the extinguishment of an obligation by the substitution or change of the obligation by a subsequent one which extinguishes or modifies the first either by changing the object or principal conditions or by substitution the person of the debtor or by subrogating a third person in the rights of the creditor. 

NOVATION is a juridical act of dual function. One is to extinguish or modify an existing obligation and the other is to substitute a new one in its place.

**novation is actually a new obligation. 


Kinds of Novation

A .  As to their essence:

  1. Objective or Real novation – effected by changing the object or principal conditions of the obligation.
  2. Subjective or Personal novation – effected by:
    • Objective or Real novation – effected by changing the object or principal conditions of the obligation.
  3. Subjective or Personal novation – effected by:

    • Substituting the person of the debtor (passive novation) or
    • Subrogating a third person to the rights of the creditor. (active novation)

      4.  Mixed novation – arises when there is a combination of the objective and subjective novations.


B. As to the form of their constitution:

  1. Express- when the parties declared in unequivocal terms that the old obligation is extinguished by the new obligation.
  2. Implied – when there are no express declaration that the old obligation is extinguished by the new one.

C. As to the extent of their effects:

  1. Total or Extinctive – when the original obligation is completely extinguished. There is no novation when the new contract is not between the same parties as in the old contract.
  2. Partial or Modificatory – when the original obligation is not totally extinguished but merely modified.


D. As to their origin:

  1. Legal Novation – takes place by operation of law.
  2. Conventional Novation – takes place by agreement of the parties.


E. As to presence or absence of condition:

  1. Pure – when the creation of new obligation is not subject to any condition.
  2. Conditional – when the creation of new obligation is subject to a condition.


Four (4) requisites of Extinctive Novation

  1. The existence of a previous valid obligation;
  2. The agreement of all the parties to the new contract;
  3. The extinguishment of the old obligation or contract; and,
  4. The validity of the new one.


Carlos Sandico,Sr. and Teopisto Timbol vs. The Honorable Minerva Inocencio Piguing and Desiderio Paras

G.R. No. L-26115 November 29, 1971

CASTRO, J.:


Facts:


On April 16, 1960 the spouses Carlos Sandico and Enrica Timbol, and Teopisto P. Timbol, administrator of the estate of the late Sixta Paras, obtained a judgment in their favor against Desiderio Paras (hereinafter referred to as the respondent) in civil case 1554, an action for easement and damages in the Court of First Instance of Pampanga. On appeal, the Court of Appeals affirmed and modified the judgment, as follows: IN VIEW WHEREOF, judgment affirmed and modified; as a consequence, defendant is condemned to recognize the easement which is held binding as to him; he is sentenced to pay plaintiffs the sums of P5,000.00 actual, and P500.00 exemplary damages, and P500.00 attorney’s fees; plus costs in both instances. Judgment is hereby rendered, (1) declaring that the respondent judge did not act in excess of jurisdiction or with grave abuse of discretion in issuing the order dated February 3, 1966 (granting the respondent’s motion to set aside the alias writ of execution, and recalling and guashing the said alias writ) and the order dated March 30, 1966 (denying the petitioners’ motion for reconsideration, of the order dated February 3, 1966) ; and (2) remanding the case to the court a quo with instructions that the respondent court (a) conduct an ocular inspection of the irrigation canal passing through the respondent’s land to determine whether or not the said canal has been rebuilt in accordance with its original dimensions; (b) in the event that the said canal fails to meet the measurements of the original one, order the respondent to reconstruct the same to its former condition; and (3) in the event of the respondent’s further refusal or failure to do so, appoint some other person to reconstruct the canal in accordance with its original dimensions, at the cost of the said respondent, pursuant to section 10 of Rule 39 of the Rules of Court. Without pronouncement as to costs.


Issue: Whether or not there is novation on this case?


Ruling:  No, the reduction of money is not amount to novation because the concept of novation is the substitution or change of an obligation by another and not by reduction.


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