G.R. No. 39634; February 27, 1934
ROSARIO GUANZON, assisted by her husband Vicente Martir, plaintiff-appellee, vs. GRACIANO RIVERA, defendant-appellant.
FACTS
Plaintiff Rosario Guanzon acted as a surety for defendant Graciano Rivera’s loan from Kabancalan Sugar Co., Inc., securing it with a mortgage on her property. When Rivera defaulted, Guanzon paid the debt to prevent foreclosure. She then sued Rivera for reimbursement. Rivera defended by claiming his debt had been novated, pointing to a lease contract (Exhibit 5) between Guanzon and Jose Rivera, wherein Jose Rivera promised to find substitute security for the mortgage. Rivera also cited a bookkeeping entry transferring his debt to Jose Rivera’s account, though this was later reversed due to error.
ISSUE
Whether the contract of lease (Exhibit 5) between Guanzon and Jose Rivera, and the subsequent bookkeeping entry, effected a novation that extinguished Rivera’s obligation to Guanzon.
RULING
No. The Supreme Court affirmed the trial court’s judgment in favor of Guanzon. For novation by substitution of debtor to occur under Article 1205 of the Civil Code, the consent of the creditor is indispensable. Exhibit 5 was merely a contract between Guanzon and Jose Rivera; the creditor Kabancalan Sugar Co., Inc., was not a party to it and never consented to release Rivera. The erroneous bookkeeping entry did not constitute such consent, as it was made without the creditor’s manager’s knowledge and was promptly corrected. Since there was no express declaration of novation or incompatibility between the old and new obligations as required by Article 1204, Rivera’s obligation to reimburse Guanzon subsisted. The cross-complaint for damages was also properly dismissed.
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