Practice question
An ordinary assignment of an existing credit is established, without novation or a special term requiring debtor approval. The debtor insists every change in creditor is conventional subrogation and therefore needs his consent. Which response follows Licaros?
- Assignment and conventional subrogation are distinct; debtor consent is not generally needed for the assignment
- Every assignment is necessarily conventional subrogation
- The creditor must obtain a new criminal judgment
- The assignment necessarily extinguishes all accessories
- The debtor can prohibit it merely by remaining silent
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1300–1303.
- Licaros v Gatmaitan GR142838 August9,2001 MAIN: https://lawphil.net/judjuris/juri2001/aug2001/gr_142838_2001.html Conventional subrogation distinguished from assignment.
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