Section 3: Confusion

Confusion results when the qualities of creditor and debtor of the same obligation are combined in the same person. It extinguishes the claim and its accessories, subject to rights acquired by or against third parties.

Where there is joint and several liability between several debtors or between several creditors, and the confusion concerns only one of them, extinction takes place, with regard to the others, only for his share. Where the confusion concerns a guaranteed obligation, the guarantor, even joint and several, is discharged. Where the confusion concerns the obligation of one of the sureties, the principal debtor is not discharged. The other joint and…