Hello, Tutor. Could you please help me to understand this one by one. Thank you.

Art. 1231. Obligations are extinguished: By payment or performance: By the loss of the thing due: By the condonation or remission of the debt; By the confusion or merger of the rights of creditor and debtor; (5) By compensation; (6) By novation. Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code