MANUEL F.

ENVERGA UNIVERSITY FOUNDATION

College of Business and Accountancy
First Semester SY 2014-2015

A Course Guide on

OBLIGATIONS AND CONTRACTS

by Atty. Jose Maria B. Duhaylongsod

MODULE TWO-A1
OBJECTIVE: This Module seeks to introduce the concept of Obligations
under the Civil Code of the Philippines through a study of the legal
provisions on the sources, types and classification of obligations and
an analysis of Decisions of the Supreme Court on particular areas.
The combination of the two will enable students to attain the basic
skills to identify the proper legal consequences of the said legal
relationships. Finally, the lessons will provide a foundation for the
chapter on Extinguishment.

I.

Obligations (Arts. 1156 1304)

A.
General Provisions on Obligations (1156 1162)
1.
Obligations v. Contracts
2.
Concept and Essential Elements
3.
Sources
4.
CASE: Nuguid v. Nicdao 502 SCRA 93
B.
Prestations (1163 -- 1168)
1.
Obligations to Give
a) Determinate v. Generic
b)
Accessory Obligations in Obligations to Give
Determinate Things
(1)
Due Diligence of a Good Father of a
Family
(2)
Fruits (Arts. 1187)
(3)
Accessories and Accessions
c)
Effect of Loss (Arts. 1189-1190, 1194)
2.
Obligations to do or not to do
3.
Effects of non-compliance with prestation (see Art.
1191)
a) CASES:
b)
Angeles v. Calasanz
135 SCRA 323
c)
Reliance Commodities v. IAC 332 SCRA 299
d)
Rivera v. Del Rosario 419 SCRA 626
e)
Barredo v. Leano
431 SCRA 106
f)
Villanueva v. Gonzaga
498 SCRA 285
C.
Breach (1169 1174)
1.
Causes
a)
Dolo
b)
Culpa
(1) CASES:
(2)
RCPI v. CA
143 SCRA 657
(3)
Syquia v. CA
217 SCRA 624
(4)
FEBTC v. CA
241 SCRA 671
c)
Mora/Default
(1)
By the Obligor/Debtor
(2)
By the Obligee/Creditor
(3)
Compensatio Morae

Part I: 19 (24) June 08 July 2014; Part II: 17 July (31 July) 05 August 2014

d)
Effect of Persons Subsidiarily Liable
2.
Fortuitous Events
a)
CASES:
b)
Juntilla v. Fontanar
136 SCRA 624
c)
Ace-Agro Dev. V. CA
266 SCRA 429
d)
Philcomsat v. Globe
429 SCRA 153
2
3.
Damages (Arts. 2195-2235)
a)
Concept
b)
Types of Damages (MENTAL)
D. Usurious Transactions/Obligations Payable in Installments
(Arts. 1175 1176)
1.
CASE: Liam Law v. Olympic Sawmill 129 SCRA 439
E.
Rights of Creditors (Arts. 1177 1178)
(Prelims)
II.

Different Kinds of Obligations (Arts. 1179 1230)

A.
According to demandability
1.
Pure (Art. 1179)
2.
Conditional (Arts. 1179-1190)
a)
Based on Efffects on Obligation
(1)
Suspensive Condition
(a)
Gonzales v. Cruz
314 SCRA 585
(2)
Resolutory Condition
(a)
Ducusin v. CA
122 SCRA 280
(b)
Jacinto v. Kaparaz
209 SCRA
246
b)
Based on dependency of Condition
(1) Potestative v. casual v. mixed
(a)
SBTC v. CA
249 SCRA 206
(b)
Rustan Pulp v. CA
214 SCRA
665
c)
Immoral Illicit and impossible Conditions
d)
Coupled with a term if intended (see Art.
1197)
(1)
Millari v. Hernando 151 SCRA 484
e)
Reciprocal Obligations (Art. 1191)
(1)
Nature; Effects; Condition for
performance
(a)
Go v. CA
312 SCRA 528
(b)
Central Bank v. Bichara
328
SCRA 807
(2)
Necessity of Court Approval to resolve
(a)
Tan v. CA
175 SCRA 657
(b)
Iringan v. CA
366 SCRA 41
(3)
Art. 1191 v. Arts. 1381-1384
(a)
Suria v. IAC
151 SCRA 661
(b)
Ong v. CA
310 SCRA 1

V Tolentino, The Civil Code of the Philippines at pp. 631 - 666

3.

B.
C.

D.
E.

Obligations with a period (Arts. 1193-1198)

a)
Concept
b)
Day Certain
c)
v. Conditional obligations
d)
Kinds
e)
Effects; Non retroactivity
f)
Rights of Parties before arrival of term
g)
Period; for whose benefit; exceptions
h)
When courts may fix period
(1)
Chua v. CA
301 SCRA 356
(2)
Lo Chua v. CA
356 SCRA 753
According to plurality of object (Arts. 1199-1206)
1.
Alternative Obligations
2.
Facultative Obligations
According to plurality of Subject (Arts. 1207-1222)
1.
Single Obligations
2.
Joint
a)
Tiu v. CA
228 SCRA 51
b)
Cembrano v. City of Butuan 502 SCRA 494
c)
PH Credit Corporation v. CA 370 SCRA 155
3.
Solidary
a)
Smith Bell & Co. v. CA 267 SCRA 530
b)
Republic Glass v. Qua 435 SCRA 480
c)
Ongkeko v. BPI Express Card 486 SCRA 206
d)
Stronghold Insurance v. CA 492 SCRA 179
e)
Tiu v. Metrobank
498 SCRA 246
f)
Hernandez v. Dolor
435 SCRA 668
g)
MWSS v. Daway
432 SCRA 559
h)
Ronquillo v. CA
132 SCRA 274
i)
Great Asian Sales Center v. CA 381 SCRA
557
j)
SBTC v. Cuenca
341 SCRA 781
According to performance (Arts. 1223-1225)
1.
Divisible v. Indivisible
According to Sanction in Case of Breach (Arts. 1226-1230)
1.
With and without a Penal Clause
(Midterms)