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Reviewer Midterm

Reviewer Midterm

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OBLIGATIONS & CONTRACTS

I  ARTICLE 1176. The receipt of
the principal by the creditor without reservation with respect to the interest shall give rise to the presumption that said interest has been paid. The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid.

1
Zambales. Pablo. Gonzales to move for the cancellation of the mortgage and the release of the mortgaged prop., upon payment of the balance of the loan. xxx Thus, aside from the fact that the resp. bank was estopped from enforcing its right to foreclose by virtue of its acceptance of the delayed payments for a period of more than six years, the application of such payment to the interest and the principal during the first three payments constitutes a virtual waiver of the acceleration clause provided in the contract. We cannot sustain the legality of the foreclosure under the peculiar facts of this case, bec. there is substantial performance of the obligation on the part of petitioner. xxx

ARTICLE 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.

ARTICLE 1431. THROUGH ESTOPPEL AN ADMISSION OR REPRESENTATION IS RENDERED CONCLUSIVE UPON THE PERSON MAKING IT, AND CANNOT BE DENIED OR DISPROVED AS AGAINST THE PERSON RELYING THEREON. REQUISITES: 1. An admission; 2. Is rendered conclusive 3. Upon the person making it;

CASES:
AZCONA V. JAMANDRE [151 S 317] - xxx If the petitioner is fussy enough to invoke it now, it stands to reason that he would have fussed it too in the receipt he willingly signed after accepting, w/o reservation and apparently w/o protest only P7,000. Art. 1235 is applicable. xxx Petitioner says that he could not demand payment of the balance of P200 on 10/26/60, date of receipt bec. the rental for the crop year 1961-1962 was due on or before 1/30/61. But this would not have prevented him from reserving in the receipt his right to collect the balance when it fell due. Moreover, there is evidence in the record that when the due date arrived, he made any demand, written or verbal, for the payment of that amount.

and

4. Cannot be denied or disproved against the person relying thereon CONCEPT OF ESTOPPEL Estoppel is a bar which precludes a person from denying or asserting anything to the contrary of that which has, in contemplation of law, been established as the truth, either by the acts of judicial or legislative officers or by his own deed or representation, either expressed or implied. It concludes the truth in order to prevent fraud and falsehood, and imposes silence on a party only when in conscience and honesty he should not be allowed to speak.

PAGSIBIGAN V. CA [221 S 202] We hold that the payment amounting to P8,500 for the balance of P3,558.20 as of 8/26/78 plus the P1,000 it was asked DISTINGUISHED FROM WAIVER to pay on 4/24/84 would at the very A waiver is a voluntary and least constitute substantial performance. intentional abandonment or xxx Petitioner in this case has the right ________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com ©2007

OBLIGATIONS & CONTRACTS
Zambales. Pablo. Gonzales

2
Mere innocent silence will not work an estoppel. There must also be some element of turpitude or negligence connected with the silence by which another is misled to his injury. But one who invokes this doctrine of estoppel must show not only unjustified inaction but also some unfair injury would result to him unless the action is held barred. Estoppel by acquiescence is closely related to estoppel by silence. In the former, a person is prevented from maintaining a position inconsistent with one in which he has acquiesced. KINDS OF ESTOPPEL 1. Technical Estoppels a. Estoppel by record – the preclusion to deny the truth of matters set forth in a record, whether judicial or legislative, and also to deny the facts adjudicated by a court of competent jurisdiction Example: the conclusiveness of a judgment on the parties to a case b. Estoppel by deed – a bar which precludes one party to a deed and his privies from asserting as against the other party and his privies any right or title in derogation of the deed, or from denying the truth of any material facts asserted in it; a written instrument is necessary for there to be estoppel by deed ∅ Some doctrines: 1. If the deed or instrument is null and void because of the contract, there is no estoppel 2. Ordinarily, the person estopped must be capacitated;
©2007

relinquishment of a known right. It carries no implication of fraud. It involves the act or conduct of only one of the parties. An equitable estoppel may arise, however, even where there is no intention on the part of the person estopped to relinquish any existing right and frequently carries the implication of fraud. It involves the conduct of both parties. In Lopez v. Ochoa (L- 7955, May 30, 1958), the Supreme Court held that waiver and estoppel are frequently used as convertible terms. The doctrine of waiver belongs to the family of, is of the nature of, is based on, estoppel. The essence of waiver is estoppel and where there is no estoppel, there is no waiver. This is especially true where the waiver relied upon is constructive or implied from the conduct of a party. DISTINGUISHED FROM RATIFICATION In ratification, the party is bound because he intended to be bound; in estoppel, the party is bound notwithstanding the fact that there was no such intention because the other party will be prejudiced and defrauded by his conduct unless the law treats him as legally bound. DISTINGUISHED FROM FRAUD Estoppel exists with or without a contract; fraud presupposes an attempt to enter into a valid agreement or contract. While estoppel may raised as a defense, fraud may properly be a cause of action on account of the vitiated consent that it produces. ADMISSIONS A party may be estopped to insist upon a claim, assert an objection, or take a position which is inconsistent with an admission which he had previously made and in reliance upon which the other party has changed his position. SILENCE OR INACTION This is sometimes referred to as estoppel by “standing by” or “laches.”

________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com

notarizes the same. 2. the promise must have been relied upon and prejudice would result unless estoppel is applied but a minor is clever enough to deceive others. 3. who is not a party to the instrument. he is not in estoppel 2. NARIC [10 S 79] One who assumes a contractual obligation and fails to perform the same on account of his inability to meet certain bank requirements which ©2007 ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. and such other rightfully relies and acts on such belief. are liable for damages. (0917) 334-9831. This may be estoppel: 1. there should have been a duty or obligation to speak A mere promise to perform or to omit at some future time does not necessarily result in estoppel (promissory estoppel). or by his silence when he ought to speak out. Conduct because of ignorance or mistake does not result in estoppel Estoppel by laches bars an action to create a vested right (executory interest) but does not bar an   d.com .com Homer L. b. he is denied the right to plead or prove an otherwise important fact. induces another to believe certain facts to exist. Those who in the performance of their obligation are guilty of fraud. If a person. by conduct or by acceptance of benefits by representation or concealment by silence by omission by laches ∅ Some doctrines: a. balez_2223@yahoo. Pablo. so that he will be prejudiced if the former is permitted to deny the existence of such facts. estoppel may result 3. Muntinlupa City John Michael U. San Beda College of Law-Alabang Alabang Hills Village. Gonzales 3 action to protect a vested right (executed interest) c. CASES: ARRIETA VS. It takes place in a situation where because if a party’s action or omission. II ARTICLE 1170. intentionally or through culpable negligence. Pablo: (0928) 502-7405. Pais Equitable Estoppel or Estoppel in It arises when one by his acts. 5. Zambales: (0920) 617-4954. representations or admissions.com Nil Ryan Gonzales: (0920) 536-4309. for this to exist. Just because a person is silent does not necessarily mean that he will be in estoppel.OBLIGATIONS & CONTRACTS Zambales. homerlopezpablo@yahoo. ARTICLE 1956. and those who in any manner contravene the tenor thereof. No interest shall be due unless it has been expressly stipulated in writing. (0906) 488-5216 : nil_ryan17@yahoo. negligence or delay. 4.

Under Art.com Homer L. The principle embodied in the act of God doctrine strictly requires that the act must be one occasioned exclusively by the violence of nature and human agencies are to be excluded from creating or entering into the cause of the mischief. resp. petitioner did not do. negligence. CA [161 S 334] . (0906) 488-5216 : nil_ryan17@yahoo. Thus. petitioner and private respondent Sofia C.com Nil Ryan Gonzales: (0920) 536-4309. resp. its negligence was the proximate cause of the loss and damage even though the typhoon was an act of God. Pablo: (0928) 502-7405. should be held liable in damages for breach of contract. Petitioner was therefore guilty of contravening its obligation to said private respondent and is thus liable for damages. of her obligation by paying the required charges. the whole occurence is thereby humanized. 1170. CASTRO [158 s 445] . as it was. or failure to act. negligence or default but also every debtor. is found to be in part the resulf of the participation of man. homerlopezpablo@yahoo. Zambales: (0920) 617-4954. it opened the spillway gates of the Angat Dam only at the height of typhoon "Welming" when it knew very well that it was safer to have opened the same gradually and earlier. Rodriguez and RCPI entered into a contract whereby for a fee RCPI undertook to send the respondent's message overseas. Meaning of phrase "in any manner contravene the tenor" of the obligation. Rodriguez paid RCPI to deliver his message overseas by telegram. in general. At best. When.In the case at bar. the cause of w/c is to be considered. w/c results in a loss or damage. for a fee. petitioner undertook to send said private respondent's message overseas by telegram. RCPI VS. negligence or delay.It is clear from the appellate court's decision that based on its findings of fact and that of the trial court's.Resp. its negligence was the proximate cause of the loss and damage. petitioner NPC was undoubtedly negligent bec. whether it be from active intervention or neglect. as it was also undeniable that NPC knew ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited.-. TELEFAST VS. This phrase is a catch-all provision. RCPI obligated itself to transmit the messages to the addressee. Clearly. it is a superfluity. And even though the typhoon was an act of God or what we may call force majeure. This phrase is not really an independent ground. who fails the performance of his obligation is bound to indemnify for the losses and damages caused thereby. if upon the happening of a fortuitous event or an act of God.The phrase includes any illicit task w/c impairs the strict and faithful fulfillment of the obligation. When the effect. there is a safety net just in case there is a culpable irregularity of performance w/c is not covered by fraud. This. RODRIGUEZ [182 S 889] . Gonzales 4 of the coming of the typhoon at least 4 days bef. 1170. inability he knew and was aware of when he entered into the contract. and removed from the rules applicable to the acts of God.-. Thus. he must be free from any previous negligence or misconduct by w/c the loss or damage may have been occasioned. such person is not exempt from liability by showing that the immediate cause of the damage was the act of God. despite performance by said pvt. Pablo. delay or violation or contravention in any manner of the tenor of the obligation as provided for in Art. thus making it liable for damages. the SC was apparently not sure as to what category the breach fell. As we have said in Juan Nakpil & Sons vs. there concurs a corresponding fraud. To be exempt from liability for loss bec. CA. the obligor cannot escape liability. San Beda College of Law-Alabang Alabang Hills Village. not only debtors guilty of fraud.com ©2007 .OBLIGATIONS & CONTRACTS Zambales. NPC VS. it actually struck. NPC cannot escape liability bec. it has been held that when the negligence of a person concurs w/ an act of God in producing a loss. or every kind of defective performance. (0917) 334-9831. In this case. balez_2223@yahoo. 144 SCRA 596. At worst.NPC cannot escape liability bec. of an act of God. therefore. Crouch entered into a contract whereby. RCPI reneged on its obligation when it failed to deliver the messages or to inform the sender about the non-delivery. Muntinlupa City John Michael U.

2.) Negligence Negligence is the absence of something that should be there-. Kinds of Delay: 1. Fraud as used in Art. It must bear the blame for failing to discover the mistake of its employee despite the established procedure requiring bank papers to pass through bank personnel whose duty it is to check and countercheck them for possible errors. knowing and intending the effects w/c naturally and necessarily arise from such act or omission. it is distinguished from negligence by the presence of deliberate intent. the dishonoring of the resp. Art. shall apply. San Beda College of Law-Alabang Alabang Hills Village. CA [237 S 761] As borne out by the records. Effects of Fraud: 1.'s checks committed through negligence by the petitioner bank on 4/6/82 was rectified only on 4/15/82 or nine days after receipf of the credit memo. Gonzales 5 3. Responsibility arising from fraud is demandable in all obligations. When negligence shows bad faith.com Nil Ryan Gonzales: (0920) 536-4309. Responsibility arising from negligence in the performance of every kind of obligation is also demandable. 1170 means deceit or insiduous machinations? No. 1191. CASE: METROBANK VS. xxx  Article 1173. w/c is lacking in the latter.mutual delay Fraud Is it correct to say that fraud in Art. Compensation Morae -.delay in the performance (on the part of the debtor). The bank is under obligation to treat the accounts of its depositors w/ meticulous care. the fraud referred to in Art. 1171. Zambales: (0920) 617-4954.  ARTICLE 1172. Damages in either case (Art. resp's account w/ the highest degree of care. petitioner bank was remiss in its duty and obligation to treat pvt. Creditor may resolve/ rescind (Art.-. considering the fiduciary nature of the relationship. according to the circumstances. 1380) Q: What is a synonym for fraud as used in Art. Any waiver of ©2007 ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. 1170 is different from fraud as a cause for vitiation of consent in contracts (more properly called deceit w/c prevents the contract from arising. 1170 is the deliberate and intentional evasion of the normal fulfillment of obligation.com Homer L. Muntinlupa City John Michael U.) 2. 1170? A: Malice. Pablo: (0928) 502-7405.) 3. Mora Solvendi -. Delay Delay is the non-fulfillment of the obligation w/ respect to time. balez_2223@yahoo. this is found in Art. specific or substitute (Art. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons.due diligence. fraud may be defined as the voluntary execution of a wrongful act. of the time and of the place. LEGASPI OIL VS. (0906) 488-5216 : nil_ryan17@yahoo.com .In general. 1170. but such liability shall may be regulated by the courts. Creditor may insist on performance. Responsibility arising from negligence in the performance of every kind of obligation is demandable. CA [224 S 213] Definition of Fraud. homerlopezpablo@yahoo. the provisions of articles 1171 and 2201. Pablo. 1233.delay in the acceptance (on the part of the creditor).OBLIGATIONS & CONTRACTS Zambales. paragraph 2. Clearly. or willful omission. (0917) 334-9831. whether such account consists only of a few hundred pesos or of millions. Mora Accipiendi -.

and 5 mos. the obligor shall be responsible for all damages which may be reasonably attributed to the nonperformance of the obligation. or injury to the personal property of the guests caused by the servants or employees of the keepers of hotels or inns as well as by strangers. it was already uncovered. the opening was still uncovered.) In common law. Art. Zambales: (0920) 617-4954. This is actually the same as the diligence of a good father of a family.com Nil Ryan Gonzales: (0920) 536-4309. There is no argument that it is the duty of the City of Mla. caution and protection in Roman law.) CASE: ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. Innkeeper Art.OBLIGATIONS & CONTRACTS Zambales. however. (0906) 488-5216 : nil_ryan17@yahoo.) 3. the damages for which the obligor who acted in good faith is liable shall be those that are the natural and probable consequences of the breach of the obligation. Creditor may resolve/ rescind (Art. homerlopezpablo@yahoo.-. Moreover. Measure of Due Diligence. (0917) 334-9831.-. Pablo. 1170. Damages in either case (Art. Neither was it shown that any sign had been placed thereabouts to warn passers-by of the impending danger. it must. much less penalized by the City of Mla. 2000.As a defense against liability on the basis of quasi-delict. malice or wanton attitude. Pablo: (0928) 502-7405. balez_2223@yahoo. San Beda College of Law-Alabang Alabang Hills Village. bad faith. Extraordinary diligence required A. The fact that travellers are constrained to rely on the vigilance of the keeper of the hotelss or inns shall be considered in ©2007 an action for future fraud is void. Sadly. CITY OF MANILA [150 S 510] .) 2. Muntinlupa City John Michael U. be admitted that ordinary precautions could have been taken during good weather to minimize the dangers to life and limb under those difficult circumstances. Effects of Negligence: 1. specific or substitute (Art. Gonzales 6 JIMENEZ VS. and which the parties have foreseen or could have reasonably foreseen at the time the obligation was constituted. ***Negligence is the absence of something that should be there-diligence.com .(2) In contracts and quasi-contracts. While it may be conceded that the fulfillment of such duties is extremely difficult during storms and floods. Even more important is the fact. the drainage hole could have been placed under the stalls instead of on the passage ways.City of Mla. the evidence indicates that long before petitioner fell into the opening. For instance. one must have exercised the diligence of a good father of a family. The responsibility referred to in the two preceding articles shall include the loss of.com Homer L. In case of fraud.There are two guides: (1) Diligence demanded by circumstances of person. to exercise reasonable care to keep the public market reasonably safe for people frequenting the place for their marketing needs. after the incident happened. 1233. while there are findings that during floods the vendors remove the iron grills to hasten the flow of water. that the City should have seen to it that the openings were covered. 1191. there is no showing that such practice has ever been prohibited. place and time (2) Care required of a good father of a family (fictional bonus pater familias who was the embodiment of care. Creditor may insist on performance. 2201. the degree of care required is the diligence of a prudent businessman. failed to exercise the diligence of a good father of a family w/c is a defense in quasidelict. but not that which may proceed from any force majeure.

Such extraordinary diligence in the vigilance over the goods is further expressed in articles 1734. Nos. The lessee shall have no right to a reduction of the rent on account of the sterility of the land leased. (2) Act of the public enemy in war. save always when there is a specific stipulation to the contrary. (0906) 488-5216 : nil_ryan17@yahoo. Common carriers. unless it is done with the use of arms or through an irresistible force. 1734. locusts. Whoever by act or omission causes damage to another. unless the same is due to any of the following causes only: (1) Flood. but also for those of persons for whom one is responsible. Gonzales 7 shall have such right in case of loss of more than one-half of the fruits through extraordinary and unforeseen fortuitous events. storm. earthquake. Such fault or negligence. or other natural disaster or calamity. San Beda College of Law-Alabang Alabang Hills Village. Lessee of Agricultural land Art. is called a quasi-delict and is governed by the provisions of this Chapter. balez_2223@yahoo. 2001. are responsible for the damages caused by the minor children who live in their company. Common carriers are responsible for the loss. homerlopezpablo@yahoo. war. Extraordinary fortuitous events are understood to be: fire. (4) The character of the goods or defects in the packing or in the containers. in case of his death or incapacity. (5) Order or act of competent public authority. Employers shall be liable for the damages caused by their employees and household helpers acting within the scope of their assigned tasks. Zambales: (0920) 617-4954. earthquake. or deterioration of the goods. pestilence.OBLIGATIONS & CONTRACTS Zambales. The owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions. are bound to observe extraordinary diligence in the vigilance over the goods and for the safety of the passengers transported by them. 1735. whether international or civil. (0917) 334-9831. Pablo: (0928) 502-7405. is obliged to pay for the damage done. or others which are uncommon. there being fault or negligence. if there is no pre-existing contractual relation between the parties. or by reason of the loss of fruits due to ordinary fortuitous events. from the nature of their business and for reasons of public policy. The State is responsible in like manner when it acts through a special agent. The obligation imposed by article 2176 is demandable not only for one's own acts or omissions. even though the former are not engaged in any business or industry. Art. Pablo. (3) Act or omission of the shipper or owner of the goods. who has entered the hotel is not deemed force majeure. 1680. Art. Common Carriers Art. according to all the circumstances of each case. and which the contracting parties could not have reasonably foreseen.  Art. while the extraordinary diligence for the safety of passengers is further set forth in articles 1755 and 1756. 2180. The act of a thief or robber. 1733. C. destruction. but he  Article 2176. 6. determining the degree of care required of him. the mother. 5. Guardians are liable for damages caused by the minors or incapacitated persons who are under their authority and live in their company. Muntinlupa City John Michael U. The father and.com . B. and 1745.com Homer L. lightning. but not when the damage has been caused by the official to whom the task done ©2007 ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. unusual flood. and 7.com Nil Ryan Gonzales: (0920) 536-4309.

Furthermore. San Beda College of Law-Alabang Alabang Hills Village. in accordance with articles 1385 and 1388 and the Mortgage Law. unless personal considerations are involved. The injured party may choose between the fulfillment and the rescission of the obligation. in case one of the obligors should not comply with what is incumbent upon him. and so on successively. even after he has chosen fulfillment. if the latter should become impossible. (Where the debtor does what has been forbidden him) 1. To obtain damages Note: In no case can the debtor be compelled against his will to comply with his obligation (to do) because this will amount to involuntary servitude as prohibited by the Constitution. (0906) 488-5216 : nil_ryan17@yahoo. indemnity for damages may be demanded from the person causing the loss. NEGATIVE PERSONAL OBLIGATION. To obtain damages. with the payment of damages in either case. This same rule shall be observed if he does it in contravention of the tenor of the obligation. it may be decreed that what has been poorly done be undone. CREDITOR’S REMEDIES: 1. Whoever acquires in bad faith the things alienated in fraud of creditors. POSITIVE PERSONAL OBLIGATION. The power to rescind obligations is implied in reciprocal ones. balez_2223@yahoo. B. it should be impossible for him to return them. He may also seek rescission. Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith. Article 1388. A.com Nil Ryan Gonzales: (0920) 536-4309. Have the obligation performed by himself or by another. Gonzales 8 properly pertains. the same shall be executed at his cost. whenever. and the price with its interest. The court shall decree the rescission claimed. it can be carried out only when he who demands rescission can return whatever he may be obliged to restore. 2. Pablo: (0928) 502-7405. consequently. III  ARTICLE 1170. The responsibility treated of in this article shall cease when the persons herein mentioned prove that they observed all the diligence of a good father of a family to prevent damage. shall indemnify the latter for damages suffered by them on account of the alienation. supra  ARTICLE 1167. so long as they remain in their custody. In this case. Article 1385. together with their fruits.com ©2007 . Zambales: (0920) 617-4954. If a person obliged to do something fails to do it. Rescission creates the obligation to return the things which were the object of the contract. To have the thing done undone (if still possible) at the expense of the obligor and 2.OBLIGATIONS & CONTRACTS Zambales. (0917) 334-9831. This is understood to be without prejudice to the rights of third persons who have acquired the thing. teachers or heads of establishments of arts and trades shall be liable for damages caused by their pupils and students or apprentices. If there are two or more alienations. unless there by just cause authorizing the fixing of a period. due to any cause.com Homer L. Pablo. in which case what is provided in article 2176 shall be applicable. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. the first acquirer shall be liable first. Muntinlupa City John Michael U. Lastly. homerlopezpablo@yahoo. IV  Article 1191.

but on the breach of faith by the def. in the event of failure of the vendee to continue in the payment of the stipulated monthly installments. 1191 refers to reciprocal obligations (mutual. These remedies are alternative and not cumulative. therefore. On the other hand. distinguished. As a consequence of the resolution. to retain the amounts paid to him on account of the purchase price.The contract of sale contains no provision authorizing the vendor. 1381 and does not apply to cases under Art.com Homer L. breach by one party is a tacit resolutory condition. the parties.. In a reciprocal obligation. CA [33 SCRA 1] . Hence. Resolution is not predicated on economic injury but on breach or violation 2. imples some correspondence). MYRICK [71 P 344] .. in a rescission by reason of lesion or economic prejudice under ARt. Zambales: (0920) 617-4954.. a contract of sale w/c is the most reciprocal of all contracts. This means that the other party who is victimized by the breach may declare the obligation resolved. et seq. the architype. The claim. and Art. Pablo. w/ their fruits and of the price. as we do now. Two requisites of a Reciprocal Obligations: 1. 1381. to their original situation w/c can be approximated only by ordering. demanding the fulfillment of the contract or its resolution. the paradigm. Gonzales 9 damage caused. it is the raison d' etre as well as the measure of the right to rescind.Rescission for breach of contract and rescission by reason of lesion or economic prejudice. and the petitioner in this case. balez_2223@yahoo. (0917) 334-9831. Muntinlupa City John Michael U. the right of rescission and Pure and conditional obligations? A: Yes. Each prestation is intended to be the counterpart or equivalent of the other (quid pro quo) CASES: UNVIVERSAL FOOD CORP V. NCC is not predicated on injury to economic interests of the party pltff. e. But the operation of these 2 articles is limited to cases of rescission for lesion enumerated in Art. As expressed inthe old Latin aphorism: Non servandi fidem.bec. the action cannot be maintained or continued. cannot avail himself of the other remedy of exacting performance. the return of the things w/c were the object of the contract. Doctines laid down in this case: 1.-A rescission for breach of contract under Art.g. Hence. then under the NCC unlike the previous OCC. NCC. It is not a subsidiary remedy but a principal one w/c is retaliatory in nature. the cause of action is subordinated to the existence of that prejudice. non est fides servanda. w/ interest. makes good the Doctrines laid down in this case: 1. the proto-type. as far as practicable. Right of resolution is implied in reciprocal contracts. 1383 and 1384. the parties should be restored. the distillation of all reciprocal obligations. Rescission under the Civil Code.com Nil Ryan Gonzales: (0920) 536-4309. ©2007 ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. xxx [H]e may choose bet. where the def. ***Is there a connection bet. of the petitioner that it has the right to forfeit said sums in its favor is untenable.-The 2 instances of rescission are defectively termed "rescission" w/o distinction bet. as expressly provided in Arts. that violates the reciprocity bet. computed from the date of the institution of the action. (0906) 488-5216 : nil_ryan17@yahoo. that differentiated "resolution" for breach of stipulations from "rescission" by reason of lesion or damage. Note: Art. having elected to cancel the contract. This rescission is a principal action retaliatory in character. Both prestation arise from the same source 2.OBLIGATIONS & CONTRACTS Zambales.com . it being unjust that a party be held bound to fulfill his promises when the other violates his. 1191. San Beda College of Law-Alabang Alabang Hills Village. 1191. Pablo: (0928) 502-7405. It is not a subsidiary action. homerlopezpablo@yahoo. MAGDALENA ESTATE V. the reparation of damages for the breach is purely secondary. 1191 may be scanned w/o disclosing anywhere that the action for rescission thereunder is subordinated to anything other than the culpable breach of his obligations by the def.

If the other party denies that rescission is justified. the parties provided for extrajudicial rescission. the resolution will be affirmed. Of course. 1191 is implied.Automatic rescission cannot be availed of where there is a clear waiver of the stipulated right of automatic rescission as evidenced by the many extensions granted to ©2007 2. In other words. Myrick. the contract bet. it merely reiterates what was laid down in Magdalena Estate v.It is available even if there is no stipulation in the contract. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited.) ZULUETA V. Where it is objected to. These doctrines are implied from these rulings in this case: a.. Muntinlupa City John Michael U. Exercise of this right is always subject to judicial review. For it is only the final judgment of the correponding court that will conclusively and finally settle whether the action taken was or was not correct in law. being ever subject to scrutiny and review by the proper court. (0906) 488-5216 : nil_ryan17@yahoo. the responsible party will be sentenced to damages. MARIANO [111 SCRA 206] . Where the pltff is the party who did not perform the undertaking w/c he was bound by the terms of the agreement to perform. he can sue for recovery and not for resolution (for the return of what you gave. Pablo. w/o previous court action. Right of resolution may be exercised extrajudicially and will take effect upon communication by the aggrieved party to the breaching party. but it proceeds at its own risk. even w/o court intervention. the party who deems the contract violated may consider it resolved or rescinded.There is nothing in the law that prohibits the parties from entering into agreement that violation of the terms of the contract would cause cancellation thereof. such that the obligation of one is dependent upon the obligation of the other. If he has already performed.com Homer L. If he refuses." BOYSAW V. Right or resolution in Art. after due hearing.com Nil Ryan Gonzales: (0920) 536-4309. Zambales: (0920) 617-4954. It is up to the other party to go to the court. PILIPINAS BANK V. b. however. In other words. and the consequent indemnity awarded to the party prejudiced. it must be understood that the act of a party in treating a contract as cancelled or resolved on account of infractions by the other contracting party must be made known to the other and is always provisional. INTERPHIL PROMOTIONS [148 SCRA 635] There is no doubt that the contract in question gave rise to reciprocal obligations. The power to rescind is given to the injured party.OBLIGATIONS & CONTRACTS Zambales. he can demand restitution. he is not entitled to insist upon the performance of the contract by the def. (This is not new. and act accordingly. it is free to resort to judicial action in its own behalf. balez_2223@yahoo. Gonzales 10 3. in the contrary case. (0917) 334-9831.) 2. the parties-when a reciprocal obligation is resolved. San Beda College of Law-Alabang Alabang Hills Village. Once resolution is availed of. homerlopezpablo@yahoo. Parties should be restored to their status quo ante UP V.-. upon resolution. They are to be performed simultaneously. "Reciprocal obligations are those w/c arise from the same cause. should the court. the effect is to cancel the juridical relation. it is not always necessary for the injured party to resort to court for rescission of the contract.com . a judicial determination of the issue is still necessary. DE LOS ANGELES [35 SCRA 102] . decide that the resolution of the contract was not warracted. "A stipulation entitling one party to take possession of the land and building if the other party violates the contract does not ex pro prio vigore confer upon the former the right to take possession thereof if objected to w/o judicial intervention and determination.True. Pablo: (0928) 502-7405. xxx Doctrines laid down in this case: 1. and in w/c each party is a debtor and a creditor of the other. so that the performance of one is conditioned upon the simultaneous fulfillment of the other. where the other party does not oppose it. This has legal effect. IAC [151 SCRA 546] . there is a duty of mutual restitution bet. or recover damages by reason of his own breach. Then. If the aggrieved party has not yet performed his prestation. and bring the matter to court. all he has to do is to refuse to perform if he resolves.

This apathy of petitioners who even permitted pvt. the obligation of the Alviars to lease to Songcuan the subject premises arises only after the latter had reconveyed the realties to them. the remedy provided is not rescission under the NCC but that set forth in the rules and regulations for the Makati Stock Exchange. petitioner's actuation is susceptible of but one contruction-. to rescind "the right of [the Alviars] to repurchase" the realties. Similarly. the obligation of one is a resolutory condition of the obligation of the other.In reciprocal obligations. VERMEN V. rescission of a contract will not be permitted for a slight or casual breach but only for such substantial and ©2007 prvt resps. This is evident in the wordings of the "P. CA [179 SCRA 719] . CA [ 224 SCRA 549] . respondent's so-called breach seems to overlook petitioner's demeanor who. Zambales: (0920) 617-4954. resp. the question of whether a breach of contract is substantial depends upon the attending circumstances. In the case at bar. they shall xxx be obliged to give (Songcuan) the right of lease and are xxx obliged to execute a lease contract xxx. In the case at bar. 1191. CA [219 SCRA 777] A party to a contract cannot demand performance of the other party's pbligations unless he is in a position to comply w/ his own obligations. Pablo. under 1191. allowed pvt. CA [217 SCRA 372] Rescission of a contract will not be permitted for a slight or casual breach. homerlopezpablo@yahoo. 1966 contract he entered into w/ the Alviars created a reciprocal obligation bet. 1191.) The cited law is not applicable in this case. of noncompliance. willing and able to comply w/ his own obligations thereunder." In other words. Gonzales 11 PRESBITERO V. the performance of one is conditioned on the simultaneous fulfillment of the other obligation. CA [219 SCRA 480] . SONGCUAN V. xxx Indeed.The right to rescind a contract may be waived. Songcuan asserts that the Oct. Although the parties are each obligor and obligee of the other. is akin to waiver or abondonment of the right to rescind normally conferred by Art. BINALBAGAN V. IAC [191 SCRA 28] Neither do we agree that the right of the Alviars to repurchase may be rescinded under Art." itself w/c states that "in the event (the Alviars) exercised the right of repurchase xxx and becomes the owner and possessor of the premises. resp.com Homer L. (Additional conditions). Muntinlupa City John Michael U. but only for such substantial and fundamental breach as would defeat the every object of the parties in making the agreement. the non-fulfillment of w/c entitles the other party to rescind the contract.for him to reconvey the subject premises and for the Alviars to lease the realties to him-. in case one of the obligors should not comply w/ what is incumbent upon him. resp. the right to rescind is not absolute and will not be granted where there had been substantial compliance by partial payments. to effect numerous payments posterior to the grace period provided in the contract. xxx Generally. The obligation of Songcuan to reconvey the property is not dependent on the obigation of the Alviars to lease the premises to the former.and the refusal of the latter to fulfill their obligation gives him the right. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. to take the initiative in filing the suit for specific performance against them. instead of immediately filing the case precisely to rescind the instrument bec. TAYAG V. the right to rescind a contract can be demanded only if a party thereto is ready. Pablo: (0928) 502-7405. their corresponding obligation can hardly be called reciprocal. each independent of the other.com Nil Ryan Gonzales: (0920) 536-4309. 1191. In reciprocal obligations.The suggestion of petitioners that the covenant must be cancelled in the light of pvt. RAMOS V.com . there are 2 separate and distinct obligations. xxx" (Art. The power to rescind obligations is implied in reciprocal ones. 10. The obligationof the Alviars is not an essential part of the contract. San Beda College of Law-Alabang Alabang Hills Village.OBLIGATIONS & CONTRACTS Zambales. balez_2223@yahoo. By and large.that they are now estopped from reneging from their commitment on account of acceptance of benefits arising from overdue accounts of pvt. NCC. (0917) 334-9831.S. (0906) 488-5216 : nil_ryan17@yahoo. by petitioner to pay their arrearages and update their installment payment under the contract. them-.

Joint and Solidary Obligations Joint Obligation. the other shall not be liable for his share.com Nil Ryan Gonzales: (0920) 536-4309. or the nature or the wording of the obligations to which the preceding article refers the contrary does not appear. V A. In joint obligations. the credits or debts being considered distinct from one another. (2) Passive joint where the obligation is joint on the debtor's side. Thus: Judgment upon agreement of the parties is more than a mere contract binding upon them. but not w/ respect to the others. Supra. PRUDENCE REALTY V. San Beda College of Law-Alabang Alabang Hills Village. Pablo. The interruption of prescription by the judicial demand of one creditor upon a debtor.  Article 1170. 1209. The demand by one creditor upon one debtor. The phrase "We promise to pay. In the joint divisible obligation. Effects of Joint Liability: 1.A joint obligation is one in w/c each of the debtors is liable only for a proportionate part of the debt or each creditor is entitled only to a proportionate part of the credit. CA [231 SCRA 379] . 5. 1210. there are as many obligations as there are debtors multiplied by the number of creditors. and (3) Multiple Joint where there are multiple parties on each side of a joint obligation. 4. Words such as: proportionately. does not benefit the other creditors nor interrupt the prescription as to other debtors. balez_2223@yahoo. (0906) 488-5216 : nil_ryan17@yahoo.-.com ©2007 . Nor does solidarity of itself imply indivisibility. Art. creates a pro rata liability. a partial payment or acknowledgement made by one of several joint debtors does not stop the running of the statute of limitations as to the others.com Homer L. (0917) 334-9831." used by 2 or more signers. The insolvency of a debtor does not increase the responsibility of his co-debtors. separately also indicate joint liability. 2. However. 1191. the defense of res judicata is not extended from one debtor to another. Muntinlupa City John Michael U. fundamental breach as would defeat the very object of the parties in executing the agreeement. 3. Gonzales 12 and the debtor on whom the demand was made. this provision applies only to reciprocal obligations in general and not to obligations arising from a judicial compromise xxx. 1208. the right of the creditors may be prejudiced only by their collective acts. If one of the latter should be insolvent. the credit or debt shall be presumed to be divided into as many equal shares as there are creditors or debtors.OBLIGATIONS & CONTRACTS Zambales. homerlopezpablo@yahoo.Habana seeks rescission of the compromise agreement under Art. produces the effects of default only w/ respect to the creditor who demanded Art. nor does it authorize a creditor to demand anything from his co-creditors. If from the law. There are three kinds of joint obligations: (1) Active joint where the obligation is joint on the creditor's side. If the division is impossible. and the debt can be enforced only by proceeding against all the debtors. Pablo: (0928) 502-7405. subject to the Rules of Court governing the multiplicity of suits. having the sanction of the court and entered as its determination of the controversy it has the force and effect of any other judgment. The indivisibility of an obligation does not necessarily give rise to solidarity. Zambales: (0920) 617-4954. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. The vices of each obligation arising from the personal defect of a particular debtor or creditor does not affect the obligation or rights of the others. Art. ** The joint obligation has been variously termed mancomunada or mancomunada simple or pro rata. On the same principle.

(2) Passive solidarity where there is one creditor w/ several debtors solidary bound. entire compliance with the prestation. Solidary obligations may also be referred to as mancomunada solidaria or joint and several or in solidum. that where there are no words used to indicate the character of a liability. Pablo: (0928) 502-7405. Solidary obligations A solidary obligation is one in w/c the debtor is liable for the entire obligation or each creditor is entitled to demand the whole obligation. Characteristics of Active Solidarity: 1. balez_2223@yahoo. San Beda College of Law-Alabang Alabang Hills Village. So does an agreeement to be "individually liabile" or "individually and jointly liable. 5. Each creditor represents others in the act of requiring payment. if he receives only a partial payment." **When is an obligation w/ several parties on either side Joint or Solidary? The presumption is that an obligation is joint bec. The words "individually and collectively" also create a solidary liability. or (2) when the law or the (3) nature of the obligation requires solidarity. compensation and remission. gives rise to an individual or solidary responsibility. Debtor may pay any of the creditors but if any demand.com Homer L. or when the law or the nature of the obligation requires solidarity. The concurrence of two or more creditors or of two or more debtors in one and the same obligation does not imply that each one of the former has a right to demand.com Nil Ryan Gonzales: (0920) 536-4309. Muntinlupa City John Michael U. 1207. he must pay only to one demanding payment (Art. 1224." followed by the signatures of 2 or more persons. There is solidary obligation only in three cases: (1) when the obligation expressly so states. Hence. 3. It has also been held that the terms "juntos o separadamente" in a promissory note creates a solidary responsibility. he must divide it among the other creditors. A credit once paid is shared equally among the creditors unless a different intention appears. 4. or that each one of the latter is bound to render. 1211. 1214). homerlopezpablo@yahoo. for the benefit of all other creditors. Zambales: (0920) 617-4954. In these cases. the other creditors can still enforce their rights against the creditor who made the novation. There is solidary liability only when the obligation expressly so states. A joint indivisible obligation gives rise to indemnity for damages from the time anyone of the debtors does not comply with his undertaking. a joint obligation is less onerous that a solidary one. compensation or remission. ©2007 Active Solidarity Art. and in all other acts w/c tend to secure the credit or make it more advantageous. (3) Mixed Solidarity where there are several creditors and several debtors in a solidary obligation. (0906) 488-5216 : nil_ryan17@yahoo. the death of a solidary creditor does not transmit the solidarity to each of his heirs but to all of them taken together. Pablo. the phrase "I promise to pay. (0917) 334-9831.OBLIGATIONS & CONTRACTS Zambales. (IV Tolentino). There is only one obligation is a solidary obligation. One creditor does not represent the others in such acts as novation (even if the credit becomes more advantageous). 2.com . judicial or extrajudicial is made on him. The debtors who may have been ready to fulfill their promises shall not contribute to the indemnity beyond the corresponding portion of the price of the thing or of the value of the service in which the obligation consists. Since it is a reciprocal agency. There are three kinds of solidarity according to the parties bound: (1) Active solidary where there are several creditors w/ one debtor in a solidary obligation. Distinguished Obligations from Solidary Art. even if the debtor is released. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. Gonzales 13 Art. He can interrupt the period of prescription or render the debtor in default. Solidarity may exist although the creditors and the debtors may not be bound in the same manner and by the same periods and conditions.

000. 6. he can recover from the co-debtors their respective shares (this is something similar to subrogation). Gonzales 14 ILLUSTRATION OF PASSIVE SOLIDARITY: X and Y are the solidary debtors of Z in the amount of P10.If Sec. even if such loss is caused by the fault of only one of them. this provision diminishes the Bank's right under the NCC to proceed against any one. Art. If Y (or Z) received payment. and the latter need not thereafter pay the obligation to the former.It is crytal clear that Art. Rule 86. bec.com Nil Ryan Gonzales: (0920) 536-4309. (Art.com .-. Each creditor may renounce his right even against the will of the debtor. Rules of Procedure cannot prevail over substantive law. be repealed since under the ROC. but the renunciation by one debtor of prescription already had does not prejudice the others. 1216) Payment by X (or Y) extinguishes the obligation but X (or Y) may claim from Y (or X) the share which corresponds to him depending upon the agreement between them. 1217). 1214). or both of them simultaneously. Each debtor may be required to pay the entire obligation but after payment. the effect is the same as that of payment. the extinguishment of the obligation by prescription extinguishes also the mutual representation among the solidary debtors. Zambales: (0920) 617-4954.-. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. 4. ILLUSTRATION OF ACTIVE SOLIDARITY: X is liable to Y and Z. 1207). but when this remission affects only the share of one debtor. 1216. The debtor who is required to pay may set up by way of compensation his own claim against the creditor. There is here only one debt of X and Y in the amount of P10. Said provision gives the creditor the right to proceed against anyone of the solidary debtors or some or all of them simultaneously. he (the creditor) may. the whole obligation. some or all of the solidary ©2007 6. The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. INDEPENDENT PLANTERS [122 SCRA 113] . solidary creditors in the amount of P10. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others. the court where said case is pending retains jurisdiction to continue hearing the charge as against the surviving defendants. ROC were applied literally. The interests due by reason of the delay of one of the debtors are borne by all of them. San Beda College of Law-Alabang Alabang Hills Village. proceed against the surviving solidary debtors w/o necessity of filing a claim in the estate of the deceased debtors. petitioner has no choice but to proceed against the estate of Manuel Barredo only. The choice is undoubtedly left to the solidary creditor to determine against whome he will enforce collection. The total remission of the debt in favor of a debtor releases all the debtors. SO long as the entire debt is not paid.000. Obviously. 2. 3. Pablo. 1216 is the applicable provision in this matter. in this case. X may pay either Y or Z (Art. CASES: PNB V. homerlopezpablo@yahoo. Pablo: (0928) 502-7405. Art. (Art. he is liable to Z (or Y) for the latter’s share of the credit. or by fortuitous event after one of the debtors has incurred in delay. 5. Interruption of prescription as to one debtor affects all the others. if he so chooses.If one of the alleged solidary debtos dies during the pendency of the collection case. In case of the death of the solidary debtors. Muntinlupa City John Michael U. so long as the debt has not been fully collected. the other debtors are still liable for the balance of the obligation.com Homer L. Z may demand from either X or Y. (0906) 488-5216 : nil_ryan17@yahoo.OBLIGATIONS & CONTRACTS Zambales. All the debtors are liable for the loss of the thing due. Y and Z can demand payment from X (Art. 1216 would. It is not mandatory for him to have the case dismissed against the surviving debtors and file its claim in the estate of the deceased solidary debtor. 6. (0917) 334-9831. Passive Solidarity: CHARACTERISTICS: 1.000. balez_2223@yahoo. in effect.

000 from Y. the obligation shall be extinguished. Art. except in the latter case when the fellow agents acted beyond the scope of their authority. 1217.000 (P12. Q: Can A demand the P9. because of his insolvency. 1216 provides that "[T]he creditor may proceed against any one of the solidary debor or some or all of them simultaneously. with the interest for the payment already made. 1218. for the P9. Zambales: (0920) 617-4954. the creditor may choose which offer to accept. each of the agents is responsible for the non-fulfillment of the agency. Art.com ©2007 . substantive. 1219. 6 of Rule 86 cannot be made to prevail over Art. Payment made by one of the solidary debtors extinguishes the obligation. Gonzales 15 debtors. Such a construction is not sanctioned by the principle xxx that a substantive law cannot be amended by a procedural law. homerlopezpablo@yahoo. His liability in case of insolvency of one co-creditor is not affected. Effect of Remission. such share shall be borne by all his co-debtors. Pablo. The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the codebtors. all shall be responsible to the creditor. (0917) 334-9831. does not entitle him to reimbursement from his co-debtors. 1220. Muntinlupa City John Michael U. in case the debt has been totally paid by anyone of them before the remission was effected. If there was fault on the part of any one of them.-. If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors." Thus IPI. If through a fortuitous event. has the right to enforce the trial court's decision against petitioner OASI. the former being merely procedural.-. Y & Z are indebted to A for P12. without prejudice to their action against the guilty or negligent debtor. while the latter.000 share of Y.) Q: Supposing X is insolvent? A: Y can still be made to contribute. A remits the share of Y (P3. If solidarity has been agreed upon. Art. Art.) Q: Can Y be sued? A: Yes.000. But he can recover the same from W. X. 1221. Sec. He who made the payment may claim from his co-debtors only the share which corresponds to each. the provisions of the preceding paragraph shall apply. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. and for the fault or negligence of his fellow agents. When one of the solidary debtors cannot. 1216. (0906) 488-5216 : nil_ryan17@yahoo. obtained by one of the solidary debtors. X & Z. If the payment is made before the debt is due. in proportion to the debt of each. as solidary creditor. 1895.com Homer L. for the price and the payment of damages and interest. Remission will benefit Y only in so far as his share is concerned.Problem: Solidary debtors W.The creditor may proceed against any one of the solidary debtor or some or all of them simultaneously. It allowed the period for appeal to lapse w/o appealing. no interest for the intervening period may be demanded. the thing is lost or the performance has become impossible after one of the solidary debtors has incurred in delay through the judicial or extrajudicial demand upon him by the creditor. Art.000.If that were to happen. If two or more solidary debtors offer to pay. reimburse his share to the debtor paying the obligation. Pablo: (0928) 502-7405. A: Yes.OBLIGATIONS & CONTRACTS Zambales. OUANO V.com Nil Ryan Gonzales: (0920) 536-4309. Art. San Beda College of Law-Alabang Alabang Hills Village. balez_2223@yahoo. The remission of the whole obligation. Payment by a solidary debtor shall not entitle him to reimbursement from his co-debtors if such payment is made after the obligation has prescribed or become illegal. ALEONAR [202 SCRA 619] . Otherwise stated. Art. petitioner has only itself to blame.000 less P3.

Solidarity from Nature of Obligations. avail himself of all defenses which are derived from the nature of the obligation and of those which are personal to him. Art. The latter could not remain bound after the former had been released. 1222. If 2 or more persons acting jointly become liabile under these provisions. if done for their benefit. Zambales: (0920) 617-4954. as well as he who collects the debt. e. made by any of the solidary creditors or with any of the solidary debtors. 3. With respect to those which personally belong to the others. Novation. Gonzales without prejudice to the provisions of article 1219. in actions filed by the creditor.g. the release of the one who appealed. The creditor who may have executed any of these acts. A solidary debtor may. after it is done.Liability may arise from the provisions of articles 19 to 22 of the NCC. shall be liable to the others for the share in the obligation corresponding to them. e. where each one of the debtors is liable to render and each one of the creditors has a right to demand entire compliance with the obligation. compensation.Solidarity on the part of creditors and debtors. shall extinguish the obligation.. hence. provided it be not on grounds personal to such appealing private resp.they are morally wrong. MIXED SOLIDARITY.) CASE: UNIVERSAL MOTORS V. SOLIDARITY THROUGH SOURCE OF OBLIGATION: When the law requires solidarity. court inured to their benefit. 16 Zambales. San Beda College of Law-Alabang Alabang Hills Village. xxx The acts giving rise to liability under these articles have a common element-. The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors.-. Muntinlupa City John Michael U. e. resps had not joined in the appeal. regardless of the fact that only one appealed. CASES: ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. If it involves a special term or a condition. partial defense. encourage.When the obligation of the other solidary debtors is so dependent on that of their co-solidary debtor. (0917) 334-9831. Those defenses personal to other debtors. illegality of obligation. homerlopezpablo@yahoo. in case the debt had been totally paid by anyone of them before the remission was effected. the decision rendered by the resp. although the other pvt. 1215. 1219. the liability for it must be solidary. aid or abet the commission of a tort.com ©2007 . Those defenses personal to the debtordefendant.g. It is for this reason. It is obvious that the resp. of the nature of the obligation. Here.000. confusion or remission of the debt. their liability should be solidary bec. Art. a partial defense. who appealed can be invoked as res judicata by the other private respondents. court committed no error in ruling that its decision inures to the benefit of all the private resps. is a defense as to the share corresponding to other debtors. CA [205 S 448] .-The liability of joint tortfeasors. Z or D can demand from either X or Y the payment of the entire obligation. instigate.OBLIGATIONS & CONTRACTS Art. If it involves vitiation of consent.. or who approve of it. operates as well as to the others who did not appeal.com Homer L. in the amount of P10. A moral wrong cannot be divided into parts. that a decision or judgment in favor of the private resp. cooperate in. w/c include all persons who commmand. Pablo: (0928) 502-7405. insanity. and continue in force against the other pvt. resps. prescription.g. Three Defenses in Passive Solidarity: 1.. 2. ILLUSTRATION OF MIXED SOLIDARITY: X and Y are solidarily liable to Z and D. It is erroneous to rule that the decision of the trial court could be reversed as to the appealing prvate resp. advise. total defense. countencance. Pablo.com Nil Ryan Gonzales: (0920) 536-4309. balez_2223@yahoo. (0906) 488-5216 : nil_ryan17@yahoo. solidary creditors. Those derived from the nature of the obligation is a total defense. he may avail himself thereof only as regards that part of the debt for which the latter are responsible. or pertain to his own share. promote.

The fact that the singular pronoun is used indicates that the promise is individual as to each other." "distinctively. Muntinlupa City John Michael U.OBLIGATIONS & CONTRACTS Zambales. the defendants obligated themselves to pay their obligation "individually and jointly. San Beda College of Law-Alabang Alabang Hills Village. The same work describes the concept of active solidarity thus: The essence of active solidarity consists in the authority of each creditor to claim and enforce the rights of all. A solidary obligation is one in w/c each debtor is liable for the entire obligation. or that each one of the latter is bound to render. MALAYAN INSURANCE V. Gonzales 17 can be directly sued by a 3rd party-.Where an obligation expressly states a solidary liability the concurrence of 2 or more creditors or 2 or more debtors in one and the same obligation implies that each of of the former has a right to demand. and each creditor is entitled only to a proportionate part of the credit. such 3rd persons can directly sue the insurer. of the insurer is based on contract.under w/c an insurer ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited." An agreement to be "individually liable" undoubtedly creates a several obligation. each creditor may enforce the entire obligation. Hence. by the express term of the compromise agreement and the decision based upon it. For if petitioner-insurer were solidarily liable w/ said 2 respondents by reason of the indemnity contract. entire compliance w/ the prestation (Art. The obligation in the case at bar being described as "individually and jointly.The direct liability of the insurer under indemnity contracts against thirdparty liability does not mean that the insurer can be held solidarily liable with the insured and/ or the other parties found at fault. The phrase juntos or separadamente used in the promissory note is an express statement making each of the persons who signed it individually liable for the payment of the full amount of the obligation contained therein. as incorrectly held by the trial court. be made "solidarily" liable w/ the 2 principal tortfeasors. when signed by two or more persons. in the latter. w/ the resulting obligation of paying every one what belongs to him. CA [165 S 536] . in the former. Inc. homerlopezpablo@yahoo. Tolentino makes the ff." the same is therefore enforceable against one of the numerous obligors. balez_2223@yahoo. there is no merger. and each creditor is entitled to demand the whole obligation. Zambales: (0920) 617-4954. observation: A joint obligation is one in w/c each of the debtors is liable only for a proportionate part of the debt. REPUBLIC PLANTERS BANK [216 S 738] ." The term "individually" has the same meaning as "collectively. CA [132 S 274] Clearly then. Pablo. much less a renunciation of rights. In the case at bar." "respectively" or "severally. CA [189 S 325] Joint obligation distinguished from solidary obligations. QUISIMBING V. and each debor may be obliged to pay it in full. does not mean that the insurer can be held solidarily liable w/ the insured and/ or the other parties found at fault. RCBC V. (0906) 488-5216 : nil_ryan17@yahoo. The liab. petitioner as insurer of Sio Choy. (0917) 334-9831. Pablo: (0928) 502-7405.com Homer L.An instrument w/c begins w/ "I. namely respondents Sio Choy and San Leon Rice Mill.com Nil Ryan Gonzales: (0920) 536-4309." "separately. and each debtor can be made to pay only his part. is liable to respondent Vallejos.com . but it cannot. CA [178 S 739] . meaning that each of the co-signers is deemed to have ©2007 RONQUILLO V. against 3rd party liaibility-.-While it is true that where the insurance contract provide for indemnity against liability to 3rd persons. each creditor can recover only his share of the obligation. Concept of active solidarity-Distinguing it from the joint obligation. and a "several obligation" is one by w/c one individual binds himself to perform the whold obligation." "WE" or "Either of us" promise to pay. makes them solidarily liable. the direct liability of the insurer under the indemnity contracts against third party liab.this will result in a violation of the principles underlying solidary obligations and insurance contracts. 1207. but only mutual restitution.) The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. that of the insured is based on tort. whereas. In the absence of a finding of facts that the defendants made themselves individually liable for the debts incurred they are each liable only for 1/2 of said amount. however.

If two or more persons have appointed an agent for a common transaction or undertaking. like remission for instance. Y & Z. xxx CERNA V. A solidary creditor cannot assign his rights without the consent of the others. homerlopezpablo@yahoo. Agents are not liable ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. Delgado. but not anything which may be prejudicial to the latter. General Rule. (0906) 488-5216 : nil_ryan17@yahoo. San Beda College of Law-Alabang Alabang Hills Village. as well as he who collects the debt.If demand is made by one creditor upon the debtor. Gonzales 18 made an independent singular promise to pay the notes in full. Zambales: (0920) 617-4954. 1214. ***There is an apparent conflict bet.-.com ©2007 . 1915.com Nil Ryan Gonzales: (0920) 536-4309. but if any demand. F. 1215. But not anything w/c is prejudicical to the latter. made by any of the solidary creditors or with any of the solidary debtors.-. Canlas is made clearer and certain. 1212 and 1215. Novation. confusion or remission of the debt.OBLIGATIONS & CONTRACTS Zambales. Creditor A makes demand on debtor Y. judicial or extrajudicial. The law is clear that "(c)ontracts take effect only between the parties xxx" But by some stretch of the imagination. In the case at bar. There are three creditors -.This is considered payment to a third person (Art. balez_2223@yahoo. 1214. Art. Art. in case the debt had been totally paid by anyone of them before the remission was effected. Pablo. This is not covered by Art. Pablo: (0928) 502-7405. without prejudice to the provisions of article 1219. he was the only one bound by the contract of loan. Debtor upon whom demand was made pays to a creditor other than the one who made the demand in violation of Art. shall be liable to the others for the share in the obligation corresponding to them. 1214.Only Delgado singed the p/n and accordinly. he can do an acts prejudicial to the other creditors. Exception. Art. B & C and there are three debtors -. Art. The creditor who may have executed any of these acts. The only concession given to the debtor is that he is allowed to deduct the share of the receiving creditor from the total amount due even if he paid the entire amount due to that creditor. In Art. in w/c case the latter must pay the demanding creditor only. w/o reason for ambiguity. has been made by one of them. 1212. Art. Each one of the solidary creditors may do whatever may be useful to the others. 3. The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors. The debtor may pay any one of the solidary creditors. (0917) 334-9831. Art. This ignores the basic precept that "(t)here is solidary liability only when the obligation expressly so states. 1212 states that the agency extends only to things w/c will benefit all co-creditors.A. compensation. by the presence of the phrase "joint and several" as describing the unconditional promise to pay to the order of Republic Planters Bank. he was a comortgagor of the principal debtor.X. petitioner was held solidarily liable for the debt allegedly bec. 1215. Cases: 1. X pays B. 1219. Muntinlupa City John Michael U. But this is dangerous bec. the solidary liability of private resp. par. there may already be an agreement on the part of the creditors.A debtor may pay any of the solidary creditors. 1241.-. or when the law or the nature of the obligation requires solidarity. payment should be made to him. CA [220 SCRA 517] . they shall be solidarily liable to the agent for all the consequences of the agency. 1213. **Principals are always liable solidarily. Art. shall extinguish the obligation. Does it mean that he cannot pay the share pertaining to creditor B? According to commentators he can. A makes a demand on Y. 2) and the debtor can still be made to pay the debt. Nowhere did it appear in the p/n that petitioner was a co-debtor.com Homer L. Art. 2.

it would appear that petitioner was hopeful that the satisfaction of his credit could be realized either through the debtor sued receiving cash payment from the estate of the late Carlos Palanca presumptively as one of the heirs. after the execution of the p/n on 1/30/52. Every obligation whose performance does not depend upon a future or uncertain event. VII  Article 1179. loss or deterioration of the thing during the pendency of the condition. the obligation shall be deemed to be one with a period.  Article 1180. par. (3) When the thing deteriorates without the fault of the debtor. it is understood that the thing is lost when it perishes. (0917) 334-9831.com Homer L. Pablo.  ARTICLE 1189. (2) If the thing is lost through the fault of the debtor. the following rules shall be observed in case of the improvement. Requisites in order for Art. The condition happens. PAY V. (1) If the thing is lost without the fault of the debtor. deterioration or delay 2. or goes out of commerce. he shall have no other right than that granted to the usufructuary. Art.OBLIGATIONS & CONTRACTS solidarily unless expressly stipulated. When the debtor binds himself to pay when his means permit him to do so. Every obligation which contains a resolutory condition shall also be demandable. Supra." There is nothing in the record that would indicate whether or not the first alternative was fulfilled. 579. or by time. or. The defense interposed was prescription. There is loss. was much too late. without prejudice to the effects of the happening of the event. (4) If it deteriorates through the fault of the debtor. 1 says so. should it be possible to do so without damage to the property. provided he does not alter its form or substance. the obligation shall be extinguished. 1179. remove such improvements. Pablo: (0928) 502-7405. 19 Zambales. the impairment is to be borne by the creditor. Muntinlupa City John Michael U. as expressed therein. 4. subject to the provisions of article 1197.com ©2007 . with indeminity for damages in either case: (5) If the thing is improved by its nature. (0906) 488-5216 : nil_ryan17@yahoo. but he shall have no right to be indemnified therefor. Gonzales such useful improvements or expenses for mere pleasure as he may deem proper. "upon demand. Its merit is rather obvious. (6) If it is improved at the expense of the debtor.com Nil Ryan Gonzales: (0920) 536-4309. deterioration or improvement before the happening of the condition. homerlopezpablo@yahoo. Rights of a usufructuary VI  JOINT AND SOLIDARY OBLIGATIONS. he shall be obliged to pay damages. The usufructuary may make on the property held in usufruct ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. balez_2223@yahoo. or disappears in such a way that its existence is unknown or it cannot be recovered. 1189 to apply-1. the creditor may choose between the rescission of the obligation and its fulfillment. however. this petition was filed. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give. There is loss. or upon a past event unknown to the parties. Art. The obligation being due and demandable. He may. more than 15 yrs. is demandable at once. it would appear that the filing of the suit after 15 yrs. PALANCA [57 SCRA 618] From the manner in w/c the p/n was executed. San Beda College of Law-Alabang Alabang Hills Village. There is an obligation to deliver a determinate thing (on the part of the debtor) 3. the improvement shall inure to the benefit of the creditor. What is undeniable is that on 8/26/67. Zambales: (0920) 617-4954.

the contract was not renewed at all. LUI SHE [21 SCRA 53] . (0906) 488-5216 : nil_ryan17@yahoo. in an action brought for that purpose xxx. 1197 involves a two. missing. Art. INC. CASES: CHAVEZ V. xxx MILLARE V. w/c provides that the courts may fix the duration of the obligation if it does not fix a period. in its opinion it is or should be reasonable.step process. BALDOMAR [77 P 470] .A lease to an alien for a reasonable period is valid." (or that the period is made to depend upon the will of the debtor). the acquisition of rights." So that. Pablo: (0928) 502-7405. GONZALES [32 SCRA 547] . continuing paying the rentals or not. but must set the time that the parties are shown to have intended. as well as the extinguishment or loss of those already acquired. and there being a breach of contract by non-performance. It is also clear from par. Gonzales 20 LIM V. balez_2223@yahoo. does not apply. virtually admitted non-performance by returning the typewriter he was obliged to repair in a nonworking condition. of course. In conditional obligations. ARANETA. Pablo. ENCARNACION V. For if this were allowed. w/ essential parts.. NCC. 13 of the contract that the parties reserved to themselves the faculty of agreeing upon the period of the renewal contract. This. is prohibited by art. PHILBANKING V. 1197 is equally inapplicable since the duration of the renewal period was not left to the will of the lessee alone. ultimately. that the obligation was immediately demandable as soon as the tobacco was disposed of. although the owner should desire the lease to continue. of Art.Par. 1256. but rather to the will of both the lessor and the lessee.The continuance and fulfillment of the contract of lease cannot be made to depend solely and exclusively upon the free and uncontrolled choice of the lessees bet. shall depend upon the happening of the ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. SUGAR ESTATES [20 SCRA 330] . the Court can not fix a period merely bec. he cannot invoke Art.com ©2007 . When fixing a period is mere formality. Here. PEOPLE [133 SCRA 333] . San Beda College of Law-Alabang Alabang Hills Village. The 2nd par. 1 of Art. the Court must then proceed to the second step.xxx Art." (2) This preliminary point settled. homerlopezpablo@yahoo. Art. elected to continue the lease by continuing the payment of the rentals the owner would never be able to discontinue it. LAWN TENNIS CLUB [2 P309] . Hence. 1197 applies only where a contract of lease clearly exists. 1197 is clearly inapplicable. The time for compliance having evidently expired. HERNANDO [151 SCRA 484] . so long as defs. V. Zambales: (0920) 617-4954.It is clear in the agreement that the proceeds of the sale of the tobacco should be turned over to the complainant as soon as the same was sold. 1197 of the NCC. Most importantly. PHIL.The term of a lease whose termination is expressly left to the will of the lessee must be fixed by the courts according to the character and conditions of the mutual undertakings. to have first petitioned the court fo fix a period for the performance of the contract before filing his complaint in this case.OBLIGATIONS & CONTRACTS Zambales. or.com Homer L. ELEIZEUI V. the lessees could effectively thwart his purpose if they should prefer to terminate the contract by the simple expedient of stopping payment of the rentals. conversely. since the Contract of Lease did in fact fix an original period of 5 yrs. (1) The Court must first determine that "the obligation does not fix a period. completely depriving the owner of all say in the matter.-. there was in fact no contract at all the period of w/c could have been fixed. and decide what period was "probably contemplated by the parties. Muntinlupa City John Michael U.Where obligation does not fix a period.  Aricle 1181.com Nil Ryan Gonzales: (0920) 536-4309." but from the nature and the circumstances it can be inferred that a period was intended. it was academic for the pltff. w/c had expired.Where the def. The fixing of a period would thus be a mere formality and would serve no purpose than to delay. (0917) 334-9831. 1197 of the NCC.

deterioration or improvement of the thing. Futurity and uncertainty must concur as characteristics of the event. A day certain is understood to be that which must necessarily come. 1193. Obligations for whose fulfillment a day certain has been fixed. shall be demandable only when that day comes. the provisions which. (0906) 488-5216 : nil_ryan17@yahoo. Kinds of Conditional Obligations (i) Condition precedent Art. Suspensive condition (condition precedent) wherein the happening of the event gives birth to an obligation 2. Obligations with a resolutory period take effect at once. This rule is logical but impractical. in each case. the event (getting the highest score) is already a past event. Conditions can either be: 1. when I say " I will treat you for lunch if you get the highest score in the Civil Law Final Exams (on the assumption that our professor has already finished checking the papers. but terminate upon arrival of the day certain. the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. If the obligation is unilateral. They differ in the aspect of certainty-. once the condition has been fulfilled. It is the knowledge w/c is future and uncertain. unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different. Nevertheless.OBLIGATIONS & CONTRACTS event which condition. shall return to each other what they have received. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. Pablo: (0928) 502-7405. and it shall be regulated by the rules of the preceding Section. homerlopezpablo@yahoo. Pablo. In obligations to do and not to do. 1190. (0917) 334-9831. the retroactive effect of he condition that has been complied with. Many modern Civil Codes have discarded it. the debtor shall appropriate the fruits and interests received. there is no obligation to deliver the fruits. the courts shall determine. are laid down in the preceding article shall be applied to the party who is bound to return.It is really the knowledge of the event w/c constitutes the future.com Homer L. No Retroactivity as to the Fruits. 1187.-.-Notice that there is no retroactivity with respect to the fruits. The fruits are deemed to cancel out each other. Muntinlupa City John Michael U. yet the knowledge is future and uncertain. the parties. upon the fulfillment of said conditions. When the conditions have for their purpose the extinguishment of an obligation to give.)" Here. with respect to the debtor. In case of the loss. Zambales: (0920) 617-4954.com Nil Ryan Gonzales: (0920) 536-4309. The effects of a conditional obligation to give. *** A condition is a future and uncertain event upon w/c an obligation or provision is made to depend. although it may not be known when. Distinguished from term or period Art. A condition is always future and uncertain. For example. Past event unknown to the parties. the obligation is conditional. Gonzales If the uncertainty consists in whether the day will come or not.-As to element of futurity. ***This article refers to suspensive condition. condition and element are the same.com ©2007 . *** A past thing can never be a condition. Condition compared to a term. Resolutory condition (condition subsequent) wherein the happening of the event will extinguish the obligation. when the obligation imposes reciprocal prestations upon the parties. If only one of the thing produces fruits.a condition is uncertain whereas a term is certain. shall retroact to the day of the constitution of the obligation. San Beda College of Law-Alabang Alabang Hills Village. constitutes the 21 Zambales. This article sets forth the rule of retroactivity in an obligation to give. balez_2223@yahoo. (ii) Condition subsequent Art.

Positive suspensive condition to do an impossible/ illegal thing-. balez_2223@yahoo. Q: What if the condition is suspensive. ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. Muntinlupa City John Michael U." Casual Condition is one where the condition is made to depend upon a third person or upon chance. "I will give you my land in Floridablanca if Mt. Kinds of conditions  Art.g. binding at once.com Nil Ryan Gonzales: (0920) 536-4309. 1183.-. ***We are talking here of a suspensive condition.g. the courts shall determine. Gonzales As for obligations to do and not to do. It is a pure obligation. 1190 refers to resolutory conditions. First sentence of Art. A condition not to do an illegal thing (negative)-. In fact. 1182. the provisions of the second paragraph of article 1187 shall be observed as regards the effect of the extinguishment of the obligation. 2. Potestative Condition is one w/c depends solely on the will of either one party. potestative and depends on the sole will of the debtor.com Homer L." Doctrine of Constructive Compliance. and it then becomes incumbent upon the other contracting party to comply w/ the terms of the contract. When the fulfillment of the condition depends upon the sole will of the debtor. Paras' outline on impossible conditions: 1." Q: Why does it make the obligation void? A: Bec. in each case.This is not expressly provided for in the provision but is implied. E. xxx In obligations to do and not to do. 22 Mixed Condition is one w/c depends partly upon the will of one of the parties and partly on either chance or the will of a third person. if he does all that is in his power.. the conditional obligation shall be void. The obligation is valid. San Beda College of Law-Alabang Alabang Hills Village. Pablo.g.OBLIGATIONS & CONTRACTS Zambales. CASE: SMITH BELL V.) 3. (0917) 334-9831. such an obligation lacks one of the essential elements of an obligation.-There are three requisites in order that this article may apply: 1.the means by w/c it is enforceable in court. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment. Pinatubo erupts this year. the retroactive effect of the condition that has been complied with. but on that of a 3rd person who can. " I will give you my plantation in Davao provided you reside in Davao permanently. 1183. E. The intent does not have to be malicious. the obligation shall take effect in conformity with the provisions of this Code.Just disregard the condition (Art. par. Pablo: (0928) 502-7405. "I will sell you a piece of land provided you do not plant marijuana on it.g. This article refers to a suspensive condition.The condition must be suspensive. There is no obligation. If it depends upon chance or upon the will of a third person. is the conditional obligation valid? A: Yes. A negative condition (not to do an impossible thing)-. Zambales: (0920) 617-4954. NOTE : Art. there is no binding force.Where the fulfillment of the condition does not depend on the will of the obligor. 1. potestative and depends solely on the will of the creditor. This is just the opposite of Art. par. 1187. SOTELO MATTI [44 P 874] . Art. "I promise to sell you my car for P1.The obligation is void (Art. in no way be compelled to carry it out. Intent on the part of the obligor to prevent fulfillment of the condition.00 whenever I like. the vinculum juris.. the binding force-. 1186. In this case.) 2. E. 1189." Art.. E. homerlopezpablo@yahoo. the obligation is not even a condition obligation. 1182. the obligor's part of the contract is complied w/. (0906) 488-5216 : nil_ryan17@yahoo.com ©2007 .

unless it has been expressly granted to the creditor. This is bec. However. homerlopezpablo@yahoo. As vendors. to assume the loan w/ the Phi. dominia rerum transferentur.  ARTICLE 1164. 1186. The creditor has a right to the fruits of the thing from the time the obligation to deliver arises. San Beda College of Law-Alabang Alabang Hills Village. Veterans Bank w/c petitioners impeded when they paid the balance of said loan. several objects being due. 23 ownership transferred. There is a third possibility where ©2007 ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. it is puerile for petitioners to say that they are the only obligees under the contract since they are also bound as obligors to respect the stipulation in permitting pvt. The debtor shall have no right to choose those prestations which are impossible. NCC on constructive fulfillment w/c petitioners claim should not have been appreciated bec. *** From the time the obligation arises. Supra. unlawful or which could not have been the object of the obligation. and any of the contracting parties may. He has only the personal right against the debtor w/ regard to the undelivered fruits. resp.  Article 1537. he shall have no real right over it until the same has been delivered to him.) Personal right arises from the time the obligation to deliver arises whereas the real right does not arise until actual delivery.) Exception: When expressly granted to the creditor. Real right is a right w/c is enforceable against the whole world. is Q: To whom does the right of choice belong? General rule: To the debtor (Art. It can also apply to Mixed condition as to that part w/c the obligor should perform.  Article 1167. sed traditione. Pablo. court applied Art.com . (0906) 488-5216 : nil_ryan17@yahoo. both parties are mutually obligors and also obligees. of the principle Non nudis pactis. Actual prevention of compliance (by the obligor) Constructive compliance can have application only if the condition is potestative. A person alternatively bound by different prestations shall completely perform one of them. But. (0917) 334-9831.OBLIGATIONS & CONTRACTS Zambales. CASE: TAYAG V.com Nil Ryan Gonzales: (0920) 536-4309. 1200. Muntinlupa City John Michael U. Zambales: (0920) 617-4954. IX Alternative Obligations Art. VIII  Article 1170. CA [219 SCRA 480] Insofar as the 3rd item of the contract is concerned. petitioners must concede that in a reciprocal obligation like a contract of purchase. But he has no real right over them until actual delivery." (It is not by mere agreement. they are supposed to execute the final deed of sale upon full payment of the balance as determined hereafter. rescind the contract or seek fulfillment. Pablo: (0928) 502-7405. the creditor has a personal right against the debtor as to the fruits. they are the obligees while the proviso in point speaks of the obligor. Gonzales 2. xxx resp. the fulfillment of one is sufficient. 1200. In short. Art. The vendor is bound to deliver the thing sold and its accessions and accessories in the condition in which they were upon the perfection of the contract. Supra. 1199. balez_2223@yahoo. ***The characteristic of alternative obligations is that. The right of choice belongs to the debtor. upon non-fulfillment by the other privy of his part of the prestation. but by delivery. All the fruits shall pertain to the vendee from the day on which the contract was perfected. The creditor cannot be compelled to receive part of one and part of the other undertaking.com Homer L.

the debtor can ask for resolution plus damages. If all prestations but one are lost through fortuitous event. (0917) 334-9831. the debtor may perform the one that is left. When the choice has been expressly given to the creditor. The better reason would be to give the creditor a chance to prepare for the performance. and the remaining prestation was lost through the debtor's fault. homerlopezpablo@yahoo. through the fault of the debtor. 1204. the obligation is extinguished. or the compliance of the obligation has become impossible.-.com . Art. of course. Articles 1202 to 1205 talk of the loss of some of the prestations before performance. the latter is liable to indemnify the creditor for damages. If the choice is limited through the creditor's own acts. the choice may be made by a third person upon agreement of the parties. Q: If the choice belongs to the debtor. all the things which are alternatively the object of the obligation have been lost. Choice is the creditor's Art. the obligation is extinguished. If all but one are lost through the fault of the debor and the last one was lost through fortuitous event. the obligation shall cease to be alternative from the day when the selection has been communicated to the debtor. If some things are lost through the debtor's fault. only one is practicable. If through the creditor's acts the debtor cannot make a choice according to the terms of the obligation. 1201. 46 P 592. the debtor can still choose from those remaining. Art. Sempio-Dy. Requirement of Communication of choice.com Homer L.com Nil Ryan Gonzales: (0920) 536-4309. Pablo: (0928) 502-7405. 1203. The creditor shall have a right to indemnity for damages when. The indemnity shall be fixed taking as a basis the value of the last thing which disappeared. Pablo.-If the choice belongs to the creditor. 1202.Art. Muntinlupa City John Michael U. If the choice is debtor's a. If all are lost through fortuitous event. If everything is lost through the debtor's fault. Art. (0906) 488-5216 : nil_ryan17@yahoo. f.OBLIGATIONS & CONTRACTS Zambales. The choice shall produce no effect except from the time it has been communicated. (Ong v.Art. 1205.) BUT how can the creditor impugn it if the choice belongs to the debtor. the latter ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited.-. he has to communicate his choice to the debtor. 2. 1202. 1203 Art. Gonzales 24 is liable to indemnify the creditor for damages. g. Zambales: (0920) 617-4954. Until then the responsibility of the debtor shall be governed by the following rules: ©2007 b. d.Art. 1204. The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound. the latter may rescind the contract with damages. or that of the service which last became impossible. c. 1. When only one prestation is left (whether or not the the rest of the prestations have been lost through fortuitous event or through the fault of the debtor). balez_2223@yahoo. why require communication before performance if the choice belongs to him anyway? A: To give the creditor an opportunity to consent to the choice or impugn it. e.-. San Beda College of Law-Alabang Alabang Hills Village. Damages other than the value of the last thing or service may also be awarded.

3. Zambales: (0920) 617-4954. does not render him liable. the creditor may choose from those remaining. Pablo. (0917) 334-9831. When only one prestation has been agreed upon. w/c is still in force w/ respect to those w/c have no vice. there are various prestations all of w/c constitute parts of the obligation. X In Generic Obligations to Give: obligation is not extinguished if the thing is lost. the choice of the creditor shall fall upon the price of any of them. the obligation is extinguished. If all are lost through fortuitous event. balez_2223@yahoo. As to nullity: In alternative obligations. Muntinlupa City John Michael U. while in facultative. homerlopezpablo@yahoo. The loss or deterioration of the thing intended as a substitute. supra. the creditor has choice from the remainder or the value of the things lost plus damages. supra.Art. 1206.Art. the accessory being only a means to facilitate payment. San Beda College of Law-Alabang Alabang Hills Village. 25 Art. As to contents of the obligation: In the alternative.Art. the nullity of the principal prestation invalidates the obligation and the creditor cannot demand the substitute even when this is valid. 1205 (2). 1205 (1). negligence or fraud.com . (2) If the loss of one of the things occurs through the fault of the debtor. through the negligence of the obligor. If all are lost through the debtor's fault. but the obligor may render another in substitution. w/ indemnity for damages. even if the substitute is possible.com Nil Ryan Gonzales: (0920) 536-4309. As to choice: In alternative. or that which remains if only one subsists. (3) If all the things are lost through the fault of the debtor. he shall perform the obligation by delivering that which the creditor should choose from among the remainder. c. Facultative obligations ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. the nullity of one prestation does not invalidate the obligation. the creditor may choose from the remainder. If some are lost through the creditor's fault.-.-. the choice by the creditor shall fall upon the price of any one of them. while in facultative. As to effect of loss: In alternative. f.OBLIGATIONS & CONTRACTS Zambales. or the price of that which. 1205 (3). Pablo: (0928) 502-7405.-1. only the principal prestation constitutes the obligation.com Homer L. d. Distinguished from Alternative. also with indemnity for damages. But once the substitution has been made. the obligation is called facultative. NOTE: Facultative obligations always involve choice by the debtor. If one or some are lost through fortuitous event. the genus of the thing cannot perish. the obligation is extinguished. only the impossibility of all the prestations due w/o fault of the debtor extinguishes the obligation. The same rules shall be applied to obligations to do or not to do in case one. If one or some are lost through the debtor's fault. Gonzales (1) If one of the things is lost through a fortuitous event. the right to choose may be given to the creditor. Exception: in case of a generic obligation whose object is a particular class or group with specific or determinate qualities (limited generic obligations) ©2007 a.-. (0906) 488-5216 : nil_ryan17@yahoo. e. 4. b. only the debtor can choose the substitute prestation. If all are lost through the creditor's fault. with a right to damages. the obligor is liable for the loss of the substitute on account of his delay. while in facultative. while in facultative. some or all of the prestations should become impossible. has disappeared. supra. 2. the creditor may claim any of those subsisting. the impossibility of the principal prestation is sufficient to extinguish the obligation. through the fault of the former.

OBLIGATIONS & CONTRACTS Zambales. NAKPIL & SONS VS." the following must concur: (a) the cause of the breach of the obligation must be independent of the will of the debtor. Example: "For P3.-. or that. When the parties so agree 3. CA [160 S 334] . or aggravation of the injury to the creditor. or universally accepted and observed procedures to preclude hijacking. Art. San Beda College of Law-Alabang Alabang Hills Village."-." (citing Tucker v. 1262 or Art. Muntinlupa City John Michael U.something in between specific and generic thing. the loss of the thing does not extinguish the obligation.To exempt the obligor from liability under Art. it had failed to comply with applicable regulations.e. But this obligation really falls under Art. Pablo: (0928) 502-7405. Milan. Exceptions: 1. When by law or stipulation. CASES: ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. if the debtor is already in delay (Art. for a breach of an obligation due to an "act of God. 1263. more specifically. and he shall be responsible for damages.-. or when it otherwise declared by stipulation. 1174.. an insurance contract. 4380.) 2. or an act of God for w/c he is not responsible. 49 OG 4379. What was absent was the last element. the loss or destruction of anything of the same kind does not extinguish the obligation.g. e. In an obligation to deliver a generic thing. although the act of a third person. or which .Requisites for exemption from liability due to an "act of God. General Rule: The happening of a fortuitous event exonerates the debtor from liability. and before he has incurred in delay. Gonzales 26 NAKPIL & SONS VS.com . When the law so specifies. 1262. Except in cases expressly specified by law..) QUISIMBING VS. Pablo. When the nature of the obligation requires the assumption of risk. CA [144 S 596] . the obligation may be extinguished by the loss of all the things through fortuitous event. Art. 1263.g. no person shall be responsible for those events which could not be foreseen. X  Article 1174. convinces this Court of the correctness of the essential conclusion of both the trial and appellate courts that the evidence does indeed fail to prove any want ot diligence on the part of PAL. par. I promise to deliver to you one of my watches. balez_2223@yahoo. An obligation which consists in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed without the fault of the debtor." This obligation does not really fall under either Art.though foreseen. intervenes to precipitate the loss. in the ©2007 Limited generic. 1165. (b) the event must be either unforseeable or unavoidable. In this case.A careful analysis of the record in relation to the memoranda and other pleadings of the parties. 3."One who negligently creates a dangerous condition cannot escape liability for the natural and probable consequences thereof. (0906) 488-5216 : nil_ryan17@yahoo. homerlopezpablo@yahoo. The same rule applies when the nature of the obligation requires the assumption of risk. (c) the event must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner. CA [189 S 605] PAL's failure to take certain steps that a certain passenger in hindsight believes should have been taken is not the negligence or misconduct w/c mingles w/ force majeure as an active and cooperative cause.com Nil Ryan Gonzales: (0920) 536-4309. Zambales: (0920) 617-4954. or when the nature of the obligation requires the assumption of risk. were inevitable.000. the obligor is liable even for fortuitous events. 1262. and that the particular acts singled out by the petitioners as supposedly demonstrative of negligence were. (0917) 334-9831. **Some of the elements were present in this case. and (d) the debtor must be fee from any participation in.com Homer L.

The petitioner's argument that the petitioners "are not insurers of their passengers" deserves no merit in view of the failure of the petitioners to prove that the deaths of the 2 passengers were exclusively due to force majeure and not to the failure of the petitioners to ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. CA [188 S 216] . and the bus was not properly equipped w/ doors in accordance w/ law-. Muntinlupa City John Michael U. a human factor-. in order that a common carrier may be absolved from liability in case of force majeure.negligence or imprudence-. In view thereof.'s had been ©2007 light of the circumstances of the case. Zambales: (0920) 617-4954.com Nil Ryan Gonzales: (0920) 536-4309. San Beda College of Law-Alabang Alabang Hills Village. as it were. the whole occurence was thereby humanized.SBTC's negligence aggravated the injury or damage to the petitioner w/c resulted from the loss or injury or damage to the petitioner w/c resulted from the loss or destruction of the stamp collection. xxx NPC VS. it should have lost no time in notifying the petitioner in order that the box could have been oped to retrieve the stamps.The running amuck of the passenger was the proximate cause of the incident as it triggered off a commotion and panic among the passengers such that the passengers started running to the sole exit shoving each other resulting in the falling off the bus by passengers Beter and Rautraut causing them fatal injuries w/c killed them." BACHELOR EXPRESS VS. the bus was speeding from a full stop. the losses and damages sustained by the private resp. (0906) 488-5216 : nil_ryan17@yahoo. However. not in truth negligent acts "sufficient to overcome the force majeure nature of the armed robbery. Predictably therefore. NPC VS. Thus. Pablo: (0928) 502-7405. The common carrier must still prove that it was not negligent in causing the injuries resulting from such accident.had intervened. this petition must perforce be dismissed bec. Pablo. CA [222 S 24] . the aforementioned fourth characteristic (the debtor must be fee from any participation in. Accordingly.com Homer L. 54 was located. In this respect. SIA VS. even if only partly. SBTC was aware of the floods of 1985 and 1986. w/ the Appellate Tribunal's wry observation that PAL's failure to take certain steps that a passenger in hindsight believes should have been taken is not the negligence or misconduct w/c mingles w/ force majeure as an active and cooperative cause.it is clear that petitioners have failed to overcome the presumption of fault and negligence found in the law governing common carriers. resulted from the participation of man. thereby becoming a party to the aggravation of the injury or loss. the conductor panicked and blew his whistle after people had already fallen off the bus. respondents since they. balez_2223@yahoo. and removed from the rules applicable to acts of God. Gonzales 27 observe extraordinary diligence in transporting safely the passengers to their destination as warranted by law. the petitioners. The sudden act of the passenger who stabbed another passenger in the bus is w/in the context of force majeure.com . it failed to exercise th reasonable care and prudence expected of a good father of a family. Considering the factual findings of the CA-the bus driver did not immediately stop the bus at the height of the commotion. it also knew that the floodwaters inundated the room where Safe Deposit Box No. CA [222 S 415] Petitioners cannot be heard to invoke the act of God or force majeure to escape liability for the loss or damage sustained by the pvt. were guilty of negligence. homerlopezpablo@yahoo. The event then was not occasioned exclusively by an act of God or force majeure. (0917) 334-9831. too. The effect then of the force majeure in question may be deemed to have. thus saving the same from further deterioration and loss. it is not enough that the accident was caused by force majeure." The Court quite agrees.OBLIGATIONS & CONTRACTS Zambales. CA [223 S 649] Petitioners have raised the same issues and defenses as in the 2 other decided cases therein mentioned. or aggravation of the injury to the creditor) of a fortuitous event is absent. the victims fell from the bus dorr when it was opened or gave way while the bus was still running.

If the material is lost through a fortuitous event. Pablo: (0928) 502-7405. provided this fact was communicated in due time to the owner. the contract is extinguished. or shall be liable for fruits received or which should have been received if the thing produces fruits. non-liability for Express agreement Art. Gonzales delivery. although the typhoon w/c preceded the flooding could be considered as a force majeure. A common carrier is responsible for injuries suffered by a passenger on account of the wilful acts or negligence of other passengers or of strangers. provided they are not contrary to law. or which is to occur at an indeterminate time. (0917) 334-9831. Insurance contracts) Art.com ©2007 . Solutio Indebiti Art. or has promised to deliver the same thing to two or more persons who do not have the same interest. The officious manager shall be liable for any fortuitous event: (1) If he undertakes risky operations which the owner was not accustomed to embark upon. By an aleatory contract. good customs. cannot claim any compensation if the work should be destroyed before its ________________________________________________________________________ WARNING: Unauthorized Reproduction of this material is strictly prohibited. unless there has been delay in receiving it. (2) If he has preferred his own interest to that of the owner. 1306.com Nil Ryan Gonzales: (0920) 536-4309. balez_2223@yahoo. until it is recovered. clauses. and for damages to the person who delivered the thing. Zambales: (0920) 617-4954. terms and conditions as they may deem convenient. homerlopezpablo@yahoo. he shall be responsible for any fortuitous event until he has effected the delivery.com Homer L. one of the parties or both reciprocally bind themselves to give or to do something in consideration of what the other shall give or do upon the happening of an event which is uncertain. Common Carrier Art. 1165. 1763. Mora accipiendi Art. if the common carrier's employees through the exercise of the diligence of a good father of a family could have prevented or stopped the act or omission. Muntinlupa City John Michael U. (3) If he fails to return the property or business after demand by the owner. 2010. Mora solvendi Art.  Article 1170. He shall furthermore be answerable for any loss or impairment of the thing from any cause. 2159. Pablo. (4) If he assumed the management in bad faith. Whoever in bad faith accepts an undue payment. EXCEPTIONS on fortuitous events: Negotiorum Gestio Art. or if the destruction was caused by the poor quality of the material. If the obligor delays. public order. San Beda College of Law-Alabang Alabang Hills Village.OBLIGATIONS & CONTRACTS proximately caused by the negligence of the petitioners. (0906) 488-5216 : nil_ryan17@yahoo. morals. 2147. 1718. 28 Zambales. The contracting parties may establish such stipulations. The contractor who has undertaken to put only his work or skill. or public policy. Aleatory Contract (ex. Supra. shall pay legal interest if a sum of money is involved.

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