Article 1234: If the obligation has been substantially performed in good faith, the obligor

may recover as though there had been a strict and complete fulfillment, less damage
suffered by the oblige.
Example. John obliged himself to deliver 100 kilos of chicken meat to Cris for a certain
price. However, despite diligent efforts on his part, John was able to deliver only 80 kilos
because of meat shortage. John wants to comply with his obligation to deliver the 100
kilos of chicken meat but he could not do so for a reasons beyond his control. Under
this article, John must fulfill his obligation to deliver the 100 kilos of meat when he
recover from the shortage.
Article 1237. Whoever pays on behalf of the debtor without the knowledge or against
the will of the latter, cannot compel the creditor to subrogate him in his rights, such as
those arising from a mortgage, guaranty, or penalty.
Example. Ian borrowed from Romel P1,000.00. Alex is the guarantor. Without the
knowledge or consent of Ian, Cris paid Romel P1,000.00. In this case, Cris can claim
reimbursement from Ian for the whole amount of P1,000.00 in as much as Ian was
benefited up to that amount.
Article 1241: Payment to a person who is incapacitated to administer his property shall
be valid if he has kept the things delivered, or insofar as the payment has been
beneficial to him.
Example. Kate delivers P5,000.00 to Chayel, a minor under guardianship in payment of
a dept. Chayel loses P700.00 of the money is gambling, or due to negligence or
ignorance. In the case, the payment should be considered as made only to the extent of
P300.00. on the other hand, if Chayel kept the money paid or spent it for purposes
useful to him the payment shall be valid.
Article 1250. In case an extraordinary inflation or deflation of the currency stipulated
should supervene, the value of the currency at the time of the establishment of the
obligation shall be the basis of payment, unless there is an agreement to the contrary.
Example. Albert borrowed from Ralph P5,000.00 payable after 5 months. On the
maturity of the obligation, the value of P5,000.00 dropped to P2,000.00 because of
inflation. In the case the basis of payment shall be the equivalent value of the currency
today to that 5 months ago.
Article 1251. Payment shall be made in the place designated in the obligation
Example. Jeff obliged himself to deliver to Marc a specific refrigerator. It was agreed
that the refrigerator shall be delivered at Marcs house. The house of Marc shall be the
place of delivery. If the is no agreement as to the place of delivery and the refrigerator
was in the house of Angelo when the parties entered into contract, then the delivery
shall be made at the house of Angelo. But if the refrigerator was temporarily at some
place, the place of delivery shall be the domicile of Jeff unless otherwise stipulated.