In contract law, extinguishment is the destruction of a right or contract. ... A right may be extinguished by nullifying that right or, in the case of a debt, discharged by payment in full or through settlement. An extinguishment may be by matter of fact and by matter of law.

What are the causes of extinguishment of an obligation?

Cause of extinguishment The obligatory relationship shall be extinguished, under any of the following circumstances: a. the debt obligation has been performed according to agreement; b. a contract is terminated; c. an obligation is setoff; d.

What do you mean by extinguishment of an obligation?

The destruction or cancellation of a right, a power, a contract, or an estate. Two ways in which the extinguishment of a debt can occur are by release or by payment. ... Extinguishment of legacy takes place where what has been bequeathed by will ceases to exist.