DISTINGUISH 1. Dacion en Pago and Payment by Cession 2. Compensation and Merger 3. Novation and Confusion/ Merger of Rights D] S16 U3 1. Who are the persons from whom the creditor must accept payment? . What are the effects of payment made by a third person with respect to the extinguishment of the obligation? When is payment to a third person valid? . What are the effects of a substitution of a new debtor without the knowledge or against the will of the original debtor? 4. What are the effects of subrogation? PROBLEMS 1. A owes B the sum of P1 million. C is the guarantor of A. A was able to pay B the sum of P400,000. Therefore, P600,000 still remains unpaid. D, thinking that A still owed B P1 million paid P1 million to B, against the will of A. a. May D recover from A? b. If so, how much? c. If A cannot pay, may D proceed against the guarantor C? 2. Ais obliged to give B 100 sacks of Sinandomeng rice. Not having the 100 sacks of Sinandomeng rice, A wants B to accept 100 sacks of Japanese rice, d more expensive variant of rice, but B refuses to accept. Is B justified legally in refusing to accept? . If one debt is P1.2 million and the other is P600,000, and the debtor without making any application of payment gives P300,000, how should said payment be applied, presuming that both are of the same nature and burden? . D and C entered a contract whereby D was to give C P800,000 in cash. Later, they novated the contract by stipulating that instead of cash, D would give a particular car. Subsequently, the car was destroyed by a fortuitous event. Is D obliged to give P800,0007