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Table of Contents

OBLIGATIONS
AND
CONTRACTS
Atty. Avelino Sebastian
Table of Contents.........................................................1
UNIT I...........................................................................2
1)

GENERAL PROVISIONS...............................................2

Notes for Atty. Avelino Sebastian | Crystal

Jalijali 2-2018|

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1183). 1190)  Protection prior to the fulfillment of the resolutory condition  Tacit resolutory condition in reciprocal obligations (Art. 1185)  Resolutory  Provoking resolutory condition  Casual  Potestative b Passive suspensive (Art. 1182)  Active resolutory  Simple potestative  Pure potestative  Mixed  Divisible  Indivisible  Alternative  Positive  Negative  Express  Implied  Possible  Impossible (Art. Definition of Conditional Obligation a)  Kinds of Conditions a) cSuspensive b) Positive suspensive condition (Art. deterioration of improvement (Art.  Effects of impossible condition  Time of impossibility  Divisibility of obligation (severability)  Negative impossible conditions  Nature and Effects of Conditions Indivisibility of a condition  Plurality of conditions  Retroactivity of obligation  Rules on loss. 1 1 9 1 )  Nature of rescission  Limitation on the right to rescind  Reciprocal breach Obligation with a term  Requisites of a term  Kind of Terms  In diem  Ex die  Ex die in diem  Demand note  Payable when able (Art. 1197)  Effects of Moratorium Laws Notes for Atty.UNIT III DIFFERENT KINDS OF OBLIGATION 1) Pure and Conditional 1. Avelino Sebastian | Crystal Jalijali 2-2018| 2 . 1184) a Negative suspensive condition (Art. Definition of Pure Obligation 2. 1189): Mutual restitution upon the fulfillment of resolutory condition (Art.

1196)  Loss of benefit of term (Art. confusion and compensation under Art. 1201)  Debtor’s delay in making a choice  French Rule  German Rule Loss of choice (Art. 1217)  Right of subrogation Notes for Atty. 1205) Facultative obligations (Art. 1206). novation. 1215  Division of credit and benefits  Pay to any creditor (Art 1214)  Payment to creditor who made a demand  Assignment of solidary creditor’s rights to third parties  Adverse judgment against one solidary creditor  Passive solidarity – solidarity among debtors (mutual guarantee)  Who may be compelled to pay (Art. 1189) Alternative obligations (Art. 1204  Debtor’s responsibility for loss (Art. Avelino Sebastian | Crystal Jalijali 2-2018| 3 .reasonableness of extension  Non-impairment clause  Premature performance and waiver of the term  Benefit of the term (Art. solidarity (Art. 1199)  Objective  Obligations with multiple objects  Conjunctive  Alternative  Facultative  Right of choice (Art. Rutter v Esteban (18 May 1953) . 1202)  Loss of things by debtor’s fault (Art. 1200) and limitations  Enforcement and form of action  Conversion to pure obligation (Art. 1210)  Types of solidarity  Active solidarity (mutual agency)  Death of a solidary creditor  Mutual representation of creditors  Rule on condonation.  Right of choice  Delay in making the substitution  Distinguished from alternative obligations • Joint and Solidary Obligations  Nature of solidarity  Sources of solidarity  Disjunctive obligations  Presumption of joint liability  Eff ects of Joint Liability  Demand of joint creditor on one of the joint debtors  Interr uption of prescriptio n  Vices of consent affecting a particular debtor  Insolv ency of a joint debtor  Appli cation of res judicata  Joint indivisible obligation  Indivisibility vs.

 Insolvency after partial remission  Liability for loss of the thing due  Interruption of prescription  Adverse judgment against one of the solidary debtors  Judgment favorable to one solidary debtor  Loss of the thing due without fault of solidary debtors  Defenses available to solidary debtors (Art. 1226)  Nature of penalty  Dual purpose  Reparation  Punitive  Penalty as an accessory obligation  Nullity of the principal obligation and limitations  Limit of liability  Penalty that is contrary to law. 1224)  Solidary indivisible obligation  Distinguished from solidary obligation  Test of indivisibility (Art.  Irregular performance and unconscionable penalties  Grounds for imposition of penalty  Divisibility of penalty  Distinguished from alternative obligations  Distinguished from facultative obligations Divisible and Indivisible Obligations  Joint indivisible obligation (Art. 1225)  Factors determining divisibility  Nature of the object  Intention of the parties  Purpose of the prestation  Law affecting the prestation  Partial performance of indivisible obligation  Art. Avelino Sebastian | Crystal Jalijali 2-2018| 4 . morals or public order. 1219). 1235 – waiver of complete performance Obligations with Penal Clause (Art. Reimbursement right of a paying debtor  Reimbursement obligation of the non-paying solidary debtors  Payment of a prescribed/illegal debt  Rights of a paying debtor to compensation  Total remission of debt in favor of a debtor  Remission of the share of a solidary debtor (Art. 1234 . 1222)  Mixed solidarity  Creditor’s demand  Creditor’s right to proceed against any debtor  Solidary debtors bound by different terms or conditions  Art.substantial performance in good faith Notes for Atty.