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 Marc’s 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.