LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)
PRINCIPLE OF UNJUST ENRICHMENT (Solutio Indebiti) if you cannot
remember the specific law or provision, use this principle whenever applicable Negotiorum Gestio management of anothers property without the owners consent; for example, As house is on fire. B saved it. B must be compensated by A.
QUESTION:CAN YOU STILL INSTITUTE AN INDEPENDENT CIVIL ACTION WITHOUT MAKING A RESERVATION? ANSWER: You qualify. If the obligation arises from delict, in accordance with Section 1, Rule 111 of the Rules of Court together Article 100 of the RPC---I have to make a reservation before I can institute an independent civil action. If the obligation arises from LAW, CONTRACT, QUASI-CONTRACT, QUASI-DELICT, then YES. I can file an independent civil action without reservation *Always go back to the sources of obligation: law, contract, quasi- contract, delict, quasi-delict* ART. 100 OF RPC & RULE 111, SECTION 1 OF RULES OF COURT Articles 29, 30, 31, 35, of the Civil Code: must be connected with Article 100 of the RPC and Section 1, Rule 111 of the Rules of Court Articles 32, 33, 34, 21, 77 : Obligations arising from law, contract, quasi contract, quasi delict (in these cases, YES. YOU MAY FILE INDEPENDENT CIVIL ACTION WITHOUT RESERVATION) Civil Code obligations arising from a delict. Article 100 of the RPC confirms that. A person who is criminally liable is civilly liable. Ex: When FG filed a libel case, he was asking for damages in millions. One single act which is defined as a crime will also give rise to damages (civil obligation). This is why S1 R111, if you file a criminal case, the civil case is DEEMED INSTITUTED. This is the general rule. Exceptions: 1) if the Civil action was filed ahead 2) if there is a waiver 3) if there is A RESERVATION IN FILING AN INDEPENDENT CIVIL ACTION
WHEN MAY A RESERVATION BE MADE IN CASE OF A CIVIL LIABILITY ARISING FROM A DELICT? Before the prosecution presents evidence in a criminal case. WILL THE DEATH OF THE ACCUSED EXTINGUISH THE CIVIL LIABILITY ARISING FROM THE DELICT? The Court said that the death of the accused shall extinguish the civil liability arising from the delict. But the victim or the heirs of the victim can still pursue the civil liability provided that it will now be based on the other sources of the obligation. For example: Reckless imprudence resulting to homicide or serious physical injury; the civil liability from this delict is extinguished but the victim or his relatives may still file a civil action for damages treating the act not as a delict but as a quasi-delict. The respondent will now be the estate of the accused who died. If negligence is involved, you can treat it as a quasi-delict or a delict you have no right to file TWO CASES for civil damages. Because that will be tantamount to unjust enrichment. If there is a civil action already instituted with the criminal action, the accused did not die, then thats it. You cannot anymore file for another civil action based on quasi delict because that would be double recovery.
VICES OF CONSENT - Circumstances that affect ADVERSELY the decision of a party in entering into a contract ***Consent is not freely given because of these VICES of consent.*** 1. Vices Affecting Cognition (affects our intellect) 2. Vices Affecting Volition (affects our free will) What are the vices that will affect intellect? 1) Incapacity in relation to Article 38 2) Error 3) Fraud What will affect Volition? 1) Violence 2) Intimidation 3) Undue Influence ERROR/MISTAKE: Mistake of FACT not Mistake of Law GOOD FAITH refers to mistake of fact - If the parties BELIEVE IN GOOD FAITH solemnizing the marriage really has the authority but they are mistaken, marriage will still be valid *Good faith of the contracting parties will save the validity of the marriage. *BUT IF THE ONE WHO SOLEMNIZED IS REALLY NOT AUTHORIZED, GOOD FAITH WILL NOT SAVE THE MARRIAGE--- because this is a mistake of LAW Example: Former Justice Raul Gonzales (he has the title of a Justice) celebrated your marriage. Accdg to the FC, members of the judiciary can celebrate marriage---you thought that anyone who has a title of Justice is member of judiciary. Gonzales then celebrated your marriage. You believed in good faith that he has the authority. Will your marriage be valid? NO. Because Gonzales truly has no authority. This is a case of mistake of LAW.
***Court Administrator (Midas Marquez) has no authority to solemnize marriage.
WHEN WILL IT BE MISTAKE OF FACT? An EX-Seminarian, expelled from the seminary, decided to continue as a sacristan. One day, while the parish priest was incapacitated to celebrate the marriage, he misrepresented himself to be the priest, celebrated the marriage. The parties believed in good faith that he really was the priest. Is the marriage valid? YES. Parties believed in good faith that he was the PRIEST (and the priest is vested with authority to celebrate marriage). Good faith saved the validity of the marriage. CIVIL CODE: If the error/mistake will affect the consent of the contracting party, then it will be considered as VICE and will be a ground for the annulment of the contract. LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)
The consent is there BUT If you are AWARE of the error, you would not have given your consent. That is why the contract is considered VOIDABLE.
FRAUD - Fraud in celebration of contract (dolo causante) o Fraud existing BEFORE the contract o If you are aware of the fraud, you would not have given your consent o Remedy: Annulment
- Fraud in execution of contract (dolo incidente) o Fraud existing AFTER the contract o If you are aware of the fraud, you would still have given your consent but UNDER DIFFERENT CIRCUMSTANCES o Remedy: Damages
In the Bar Exam: If the cases do not involve INSURANCE or MARRIAGE, apply the general rule: presence of fraud will be a ground for the annulment of contract
Difference in Marriage: Nullity The ground is existing even BEFORE the celebration of the marriage
Annulment The ground is existing AT THE TIME of the celebration of the marriage
The party would not have given his consent if he is aware that there is fraud. Hence, it is a ground for the annulment of the contract.
ANNULMENT: If the ground is existing AT THE TIME OF THE CELEBRATION of the marriage
LEGAL SEPARATION: If the ground is existing after the marriage is celebrated
Ex: CONCEALMENT of lesbianism; if no concealment, just legal separation (take note of these details)
Formality of Contracts: Generally, no prescribed form. If there is, form must be followed. Affects enforceability not validity.
SOLEMN contracts: form must be followed, otherwise void. (FORM is an essential element for validity)
Example: sale of things for more than P5,000, antichresis
MODES OF EXTINGUISHMENT
I. CONDONATION / REMISSION gratuitous (act of liberality), therefore it has to comply with the formalities of a donation- depends upon the kind of property being donated: Personal value doesnt exceed 5K, does not have to be in writing; only requires simultaneous delivery and acceptance by donee. If exceeds 5k: writing + acceptance
Real writing AND in public instrument (these formalities are essential for VALIDITY, not just enforceability)
Requisites for condonation: GAD Gratuitous Accepted by debtor Due and Demandable obli
Condonation may be TOTAL or PARTIAL. If TOTAL, it benefits everybody (if joint/solidary debtors).
II. CONFUSION/MERGER merger of character of debtor and creditor in one personality Requisites: Must take place in the person of PRINCIPLE debtor or creditor Must be definite and COMPLETE (no such thing as partial)
-DOES NOT APPLY TO JOINT OBLIGATION (because how can it apply if the debtor is only liable for his corresponding share?)
III. LEGAL COMPENSATION Quits tayo! Requisites: PRIMO DLN PRI Principal Debtor & Principal Creditor (both are principal debtor and principal of creditor of each other)
MO Money (debt is a sum of money or if consumable, SAME KIND and QUALITY)
D debts are DUE
L debts are LIQUIDATED (meaning determined and certain: for example, an obligation with a penalty of 5% interest. This is not yet Liquidated. You still have to compute the 5%. If it is an obligation of 5% interest which is totalling 35,000 pesos, then it is already Liquidated.)
N NOT subject to retention/controversy (there are no other 3 rd
persons with interest over it) LEGAL COMPENSATION: BY OPERATION OF LAW, THE OBLIGATION IS EXTINGUISHED.
DO NOT FORGET: The term PRINCIPAL is controlling. It has to be principal debtor and creditor. There are accessory principals, example: guarantor
Tip: Bear in mind these requisites. If the bar question has everything, there is legal compensation. The absence of one will not give rise to legal compensation.
CONVENTIONAL COMPENSATION: BASED ON THE AGREEMENT OF THE PARTIES. Therefore, they will not follow the requisites.
JUDICIAL COMPENSATION: Has to be in court. Involves a case where there is another case involving the same parties and then damages are awarded. You inform the court that judicial compensation can take place.
WHEN IS COMPENSATION PROHIBITED? 1. Obligation arising from a DEPOSIT (obligation where you deliver the property to a party for safekeeping)
2. Obligation arising from COMMODATUM (bailee has the obligation to deliver/return the same property that was handed to him for use. There is no transfer of ownership)
3. SUPPORT by gratuitous title (Dad, you did not support me. You sold me your car. I wont pay you anymore so quits na. Cannot be)
LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)
4. If it involves a CIVIL LIABILITY arising from a CRIMINAL OFFENSE/DELICT (Because delict cannot be made subject to settlement. I kill you, I pay you na lang)
5. DAMAGE caused to the PARTNERSHIP by a PARTNER (explicitly provided by law)
6. Obligation IN FAVOR OF THE GOVERNMENT (example: government owes you for eminent domain, you owe govt income tax. You cannot offset that. Because different brances of government)
CAN A CREDITOR ASSIGN HIS INTEREST TO A THIRD PERSON AND THERE CAN STILL BE COMPENSATION? Article 1285 (three cases of assignment) 1) Assignment WITH CONSENT OF DEBTOR 2) Assignment WITHOUT CONSENT OF DEBTOR 3) Assignment WITHOUT KNOWLEDGE OF DEBTOR MEANING--- The creditor STILL HAS THE RIGHT TO ASSIGN HIS CREDIT. But the assignment will have a different effect depending on those three cases. 1) WITH CONSENT OF DEBTOR: NO. Debtor cannot set up compensation UNLESS HE RESERVES THE RIGHT at the time he gave his consent 2) WITHOUT CONSENT OF DEBTOR: YES, to those debts that were due PRIOR to the assignment. Those that will become due after assignment, no more compensation. 3) WITHOUT KNOWLEDGE OF DEBTOR: Yes. For as long as the debtor is still unaware, because the assignment will only be binding to the debtor when he has knowledge of it III. NOVATION: Novation will take place if any of these change: 1) Object / principal obligation 2) Debtor 3) Credtor Strictly speaking, novation does not totally extinguish: because once the old obligation is terminated, A NEW OBLIGATION is created. (her opinion) Memorize the requisites: 1) Old obli 2) New obli 3) Substantial difference between old obli and new obli 4) Capacity of the parties 5) Intention to extinguish ***INTENTION TO EXTINGUISH is an essential requisite. Novation is not presumed. It must be in unequivocal terms. If in the bar exams, the question is IS THERE A NOVATION? Find out if there is an explicit stipulation that the old obligation is extinguished and the new obligation will substitute.or the replacement of a third person in lieu of the debtor/creditor will extinguish the obligation of the old debtor/creditor. Because it has to be in unequivocal terms. Any element that is missing = your answer should be there is no novation. The new obli and old obli must be INCOMPATIBLE.
Remember Expromision and Delegacion. When debtor delegates the debt---if he knew new debtor is insolvent, his old obligation will be revived.
OBLIGEE CREDITOR ACTIVE SUBJECT OBLIGOR DEBTOR PASSIVE SUBJECT PRESTATION OBJECT OF THE OBLIGATION