Flashcards Studio

A bank holds a loan of 11,200,000 PHP secured by a mortgage on a parcel of land titled in BrightStar Manufacturing, Inc. The company’s majority shareholder, Elena Cruz, offers to pay the debt and the bank accepts Elena as the new debtor, releasing BrightStar Manufacturing, Inc. from liability. (a) Identify whether the form illustrated is expromision or delegacion distinguida, and justify your answer. (b) State the controlling rule and describe the effect on BrightStar Manufacturing, Inc.’s liability and on the bank’s rights. (c) If the bank had consented to Elena’s payment but did not release BrightStar Manufacturing, Inc., what form is that and what are the consequences for BrightStar and Elena?