Types of obligations
1.Pure and Conditional2.Obligations with a period3.Alternative Obligations4.Joint and Solidary Obligations5.Divisible and Indivisible Obligations6.Obligations with a Penal Clause
Sources of Obligations
1.Laws2.Contracts3.Quasi-contracts4.Acts or omissions punishable by law
Modes of Extinguishment of Obligations
1.Paymenta.Application of paymentb.Payment by cessionc.Consignation2.Loss of the thing due3.Condonation/Remission4.Confusion/Merger 5.Compensation6.Novation
Cas es when courts can intervene
Court shall set a period if the condition is “
if my meanspermit me so
” because this is considered as a period by thecourt. Something that would happen.
condition is a suspensive potestative condition
and the obligation is still valid, the courts shall fix a period
When the parties
intended to have a period
but no periodwas written, the court shall fix a period
If there is a
and there is a just cause.
period depends on the sole will of the debtor
,the court shall fix a period
When the principal obligation has been
partly or irregularlycomplied
with by the debtor
penalty appears to be iniquitous or unconscionable
When under the circumstances, the
of the objectof the obligation is so important as to extinguish the obligation.
When there is
to do the obligation or manifestlybeyond the contemplation of the parties.
When demand is not needed:
1.By stipulation2.When time is of the essence3.When it is useless
Obligor is still liable even if fortuitous event as provided by law1.When obligor delays2.When he has promised to deliver the same thing to twopersons who do not have the same interest
3.When the debt of a thing certain and determinate proceedsfrom a criminal offense4.Possessor in bad faith shall be liable for deterioration or loss5.Loss or deterioration of movables used for the benefit of thefamily, belonging to either spouse shall be paid to said spousefrom the conjugal funds
Bailee in a Commodatuma.If he devotes the thing to any purpose other than thatfor which it was loanedb.If he keeps it longer than the period stipulatedc.If the thing loaned has been delivered with appraisalof its valued.If he lends or leases the thing to a third persone.If being able to save either the thing borrowed or hisown thing, he chose to save the latter 7.Deposits
8.When the nature of the obligation bears an assumption of risk.Situations where though there is no debtor and creditor,compensation shall apply.
may set up compensation as regards what thecreditor may owe the principal debtor.2.Conventional compensation3.Assignment of creditor with consent however debtor reservedthe right to consignation4.Assignment of creditor with knowledge but without consent5.Assignment of creditor without knowledge
Situations when the debtor shall lose the right to make use of the period:
1.When he becomes insolvent2.When he fails to secure the debt3.When he secures the debt and if the securities get impairedthrough any event.4.When the debtor violates any undertaking in the contract5.When the debtor attempts to abscond.
Payment to a third person shall be valid when:
1.Redounded to the benefit of the creditor.
Cases when benefit need not be proven
2.After the payment, the third person acquires the creditor’srights3.If the creditor ratifies the payment to the third person4.If through the conduct of the creditor, the debtor has been ledto believe that the third person had authority to receivepayment.
Actions that creditors can do in case of breach of contract
1.Exhaust the properties of the debtor 2.Exercise all the rights and actions of the debtor, save thosepersonal to him3.Seek rescission of the contracts executed by the debtor infraud of their rights
A day certain
- is though unknown, it must necessarily come.
– is incurred when demand has been made but debtor failsto render obligation because of negligence or malice
– transfers to the person subrogated the credit withall the rights thereto appertaining, either against third persons, be theyguarantors, or possessors of mortgages.
Dation in payment or Dacion en Pago
– delivery and transmission of ownership of a thing by the debtor to creditor as an accepted equivalentof the performance of an obligation.
– when a person is bound to an obligation but canchoose from different ways. In alternative obligations, the obligor shouldcompletely perform the obligation.
– when only one prestation has beenagreed upon but the obligor may render another in substitutionRequisites for a valid dation in payment/dacion en pago:1.There must be the performance of the prestation in lieu of payment2.There must be some difference in the prestation due and thatwhich is given in substitution3.There must be an agreement between the debtor and thecreditor that the obligation is extinguished immediately by thisact.
Dacion en pago /Dation in Payment
– payment in kindRequisites:1.There must be a performance of an obligation in lieu of theoriginal prestation.2.There must be some difference with the 2 obligations3.The parties must agree that the payment in kind extinguishesimmediately the obligation
– is an agreement where in case the debtor fails to pay, the mortgage or the pledge shall be automaticallyappropriated to the creditor. This is VOID because the law requires that if the debtor shall not be able to pay, the prestation must be sold throughan auction/bidding wherein the proceeds less the amount the debtor owes should go to the debtor.
– an official declaration by competent authoritiesis needed. It may be the BSP or the Department of Finance.
Most onerous debt
– the indebtedness which exacts the heavier burdenfrom among many