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GENERAL PROVISIONS
Nature of obligations under Civil Code
Civil Obligations legally demandable and the courts of justice may
compel their performance.
Natural Obligations based on morality, natural law and conscience,
they are not legally demandable.
Requisites of Obligations
Juridical or legal tie the vinculum or the link that binds the party
Prestation - consist in giving, doing or not doing something
Active subject person who can demand the performance of the
obligation or known as the creditor or oblige
Passive subject the person from whom prestation is demandable or
known as the debtor or obligor
Illustration:
A entered into a contract with B whereby A agreed to
deliver to B a washing machine on Monday. The
juridical tie is the contract, the prestation is the
delivery of the washing machine, the active subject
is B, and the passive subject is A.
Sources of Obligations
Law imposed by the law itself
Illustration:
By provision of law, a husband and wife are obliged
to
live
together,
observe
mutual
respect
and
fidelity, and render mutual help and support.
Contracts the meeting of minds between two persons whereby one
binds himself with respect to the other to give something or to render
service.
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Illustration:
Juan obliged himself
Pedro.
to
deliver
refrigerator
to
you
car
if
you
pass
the
ECE
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Kinds of Period
Ex die a period with suspensive effect
In diem a period with a resolutory effect and the validity of
obligation is up to a certain date
Other Kinds:
Legal period period established by law
Voluntary period period agreed to by the parties
Judicial period period authorized by the court
Alternative Obligations is one wherein various things are due, but the
payment of one of them is sufficient, determined by the choice which as
a general rule belongs to the obligor.
Illustration:
Marc obliged himself to deliver to Edwin either a
piano or a refrigerator. The delivery of the piano or
the refrigerator is sufficient compliance with the
obligation. Marc could not compel Edwin to accept
only a part of the piano or a part of the
refrigerator
because
in
alternative
obligations
complete performance of one of the prestations is
necessary.
Joint and Solidary Obligations
Joint Obligations is one which each of the debtors is answerable only for
a proportionate part of the debt and each one of the creditors is entitled
to a proportionate part of the credit.
Illustration:
Juan and Pedro are jointly indebted to Jose the
amount of P100.00. As such, Juan is liable to Jose
for the amount of P50.00 only, while Pedro is also
liable to Jose for the same amount of P50.00. Jose,
the creditor, is entitled to demand from Juan and
Pedro P50.00 each.
Solidary Obligations is one which each of the debtors is liable for the
whole obligation and each of the creditors may demand compliance of
the entire obligation.
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Illustration:
Juan and Pedro are the solidary debtors of Jose for
the amount of P100.00. Hence either of them may be
compelled by Jose to pay the whole amount of P100.00.
So Jose can demand from Juan the amount of P100.00.
Jose can also demand from Pedro the amount of
P100.00. However, if Juan pays P100.00, then the
obligation is extinguished and the paying debtor
(Juan) is entitled to be reimbursed by his co-debtor
(Pedro) for his part of the debt, which is P50.00.
Kinds of Solidarity
Active Solidarity when the solidarity exists among the creditors
only.
Passive Solidarity when the solidarity takes place among the
debtors only.
Mixed Solidarity when the solidarity exists both among the creditors
and the debtors at the same time.
Divisible and Indivisible Obligations
Divisible Obligation is one which is capable of partial performance.
Illustration:
Juan obliged himself to deliver to Pedro six sacks of
rice as follows: Three sacks of rice to be delivered
by Juan on May 1st, and Pedro to pay Juan the amount
of P150.00. Another three sacks of rice to be
delivered by Juan on June 1st, and Pedro to pay Juan
the same amount of P150.00. The obligation of Juan to
Pedro to deliver rice is divisible because the
parties intended partial performance.
Indivisible Obligation is one which is not capable of partial performance.
Illustration:
In the preceding example, if Juan and Pedro agreed
that all the six sacks of rice should be deliver on
May 1st, then notwithstanding that the object of the
obligation is physically divisible. Nevertheless, it
is indivisible because the parties intended complete
performance at one given time. Juan, therefore, must
deliver all the six sacks of rice on May 1st. he
cannot deliver two or three or even five, because
that case the delivery still constitutes partial
performance.
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is the meeting of the minds between two persons whereby one binds
himself with respect to the other to give something or to render service. It
comes from the Latin word contractus which signifies an agreement.
GENERAL PROVISIONS
Elements of Contracts
Essential Elements
consent of the parties
object or subject matter
cause or consideration
Natural elements are those the existence of which is presumed by law
unless there is an agreement to the contrary
Accidental elements consist of the unusual stipulation of the parties such
as conditions, terms, etc.
Stages of a Contract:
Preparation or Conception includes all the initial stages up to the time
the parties agree upon the terms of the contract.
Illustration:
Juan offers to sell his horse to Pedro for P2,000.00.
Pedro asks Juan to bring his horse to his place to
enable him to see whether the horse is fit for
carretela purposes. Juan brings the horse to Pedros
place and the latter is allowed by Juan to use his
horse in pulling Pedros carretela to enable the
latter to see whether the horse has sufficient speed,
is physically fit, etc. After trying the horse, Pedro
bargains with Juan as to the price. Up to this stage,
the parties are doing things leading to the meeting
of the minds.
Perfection or Birth the time when the minds of the parties meet in
agreement upon the object or subject matter as well as to the price or
consideration.
Illustration:
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Illustration:
A entered into a contract with B whereby for and in
consideration of P1,000.00 the latter agrees to live
with A without the benefit of marriage.
Contrary to good customs The contracting parties are prohibited from
entering into contracts which conflict with good and established practice
or customs.
Illustration:
Pedro and Maria decided to get married on October 10,
2007. Invitations were printed and distributed to
relatives and friends and apparel were purchased
including matrimonial bed. Pedro, however walked out
of it and was never heard of again.
Contrary to public order Signifies the public weal which are permanent
and essential in institutions.
Illustration:
An agreement that the creditor can use force or
violence to compel the debtor to pay is contrary to
public order.
Contrary to public policy Refers not only to public safety but also to
considerations which are moved by the common good.
Illustration:
A entered into a contract with B wherby A will not
enter
into
any
enterprise
whatever
in
the
Philippines. This is against public policy as it is a
contract in restraint of trade.
ESSENTIAL REQUISITES OF CONTRACTS
Consent manifested by the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute the contract
Object of Contracts it may be things, rights and services
Things must be within the commerce of men, must not be
impossible, either physical or legally and must be determinate as to
their kind.
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Registration of Merchants
Bureau of Commerce for those merchants having their place of
business in Manila
Register of Deeds for those in the provinces
Securities and Exchange Commission for corporations and all
partnerships with a capital of three thousand pesos (P3,000.00) or more
Bureau of Customs in the case of vessels, those more than 3 tons
gross
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1.
2.
Obligation comes from the latin word ________ which means to bind.
A.
B.
C.
D.
3.
Contracts
Obligation
Quasi-delicts
Condition
5.
Obligum
Obligate
Obligare
Obligus
4.
Contracts
Obligation
Quasi-delicts
Condition
Civil Obligations
Natural Obligation
Pure Obligation
Condition
Civil Obligations
Natural Obligation
Pure Obligation
Condition
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6.
Requisites of obligations which is the vinculum or the link that binds the
party
A. Juridical or legal tie
B. Prestation
C. Active subject
D. Passive subject
7.
8.
9.
Law
Contracts
Quasi-delicts
Work
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Pure obligation
Conditional obligation
Reciprocal obligation
Alternative obligation
Pure obligation
Condition
Reciprocal obligation
Alternative obligation
Pure obligation
Conditional obligation
Reciprocal obligation
Alternative obligation
Suspensive Condition
Alternative obligation
Reciprocal obligation
Resolutory Condition
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Pure obligation
Obligations with a period
Reciprocal obligation
Alternative obligation
Ex die
In diem
Legal period
Voluntary period
20. A kind of period with a resolutory effect and the validity of obligation is
up to a certain date
A.
B.
C.
D.
Ex die
In diem
Legal period
Voluntary period
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Ex die
In diem
Legal period
Voluntary period
Judicial period
In diem
Legal period
Voluntary period
Judicial period
In diem
Legal period
Voluntary period
Pure obligation
Condition
Reciprocal obligation
Alternative obligation
Pure obligation
Condition
Reciprocal obligation
Alternative obligation
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26. An obligation wherein various things are due, but the payment of one of
them is sufficient, determined by the choice which as a general rule
belongs to the obligor.
A. Pure obligation
B. Condition
C. Reciprocal obligation
D. Alternative obligation
27. One in which each of the debtors is answerable only for a proportionate
part of the debt, and each one of the creditors is entitled to a
proportionate part of the credit
A. Joint obligation
B. Solidary obligation
C. Divisible obligation
D. Indivisible obligation
28. One in which each of the debtors is liable for the whole obligation and
each of the creditors may demand compliance of the entire obligation.
A.
B.
C.
D.
Joint obligation
Solidary obligation
Divisible obligation
Indivisible obligation
Active Solidarity
Passive Solidarity
Mixed Solidarity
Solo Solidarity
30. When the solidarity takes place among the debtors only, it is called
A.
B.
C.
D.
Active Solidarity
Passive Solidarity
Mixed Solidarity
Solo Solidarity
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31. When the solidarity exists both among the creditors and the debtors at
the same time, this is called
A.
B.
C.
D.
Active Solidarity
Passive Solidarity
Mixed Solidarity
Solo Solidarity
Joint obligation
Solidary obligation
Divisible obligation
Indivisible obligation
33. Juan obliged himself to deliver to Pedro six sacks of rice as follows:
Three sacks of rice to be delivered by Juan on May 1st, and Pedro to
pay Juan the amount of P150.00. Another three sacks of rice to be
delivered by Juan on June 1st, and Pedro to pay Juan the same amount
of P150.00. This illustrates:
A.
B.
C.
D.
Joint obligation
Solidary obligation
Divisible obligation
Indivisible obligation
Qualitative
Quantitative
Ideal
Moral
Qualitative
Quantitative
Ideal
Mental
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Law
Penal clause
Stipulation
Preceding
38. A binds himself to deliver to B a Honda Civic car at the end of the
current year. They agree in writing that should A fail to deliver the car
on a specified date, A shall pay B as penalty P10,000.00. A fails to
make the delivery. B could demand the payment of P10,000.00 against
A. B, however could not compel A to deliver the car and pay the
penalty at the same time. This is ______ type of penal clause:
A.
B.
C.
D.
Joint
Subsidiary
Solo
Partial
39. A classification of penal clause when both the principal contract and the
penal clause can be enforced.
A.
B.
C.
D.
Joint
Subsidiary
Solo
Partial
By Payment or Performance
By the condition or remission of the debt
By altering the signature
By the loss of the thing due
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Joint obligation
Solidary obligation
Divisible obligation
Indivisible obligation
Partial
Complete
Express
Implied
43. A remission when the waiver or renunciation refers only to a part of the
obligation.
A. Partial
B. Complete
C. Express
D. Implied
44. A remission when it is shown by words or declaration of the obligee.
A.
B.
C.
D.
Partial
Complete
Express
Implied
45. A remission when it is inferred from the acts or conduct of the obligee.
A.
B.
C.
D.
Partial
Complete
Express
Implied
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56. A contract comes from the Latin word ______ which signifies an
agreement.
A. Kontrus
B. contractus
C. Tractum
D. contractumus
57. The following are considered to be the essential elements of contracts
except
A. consent of the parties
B. object or subject matter
C. cause or consideration
D. effects to the subject
58. An element of contracts which refers to those the existence of which is
presumed by law unless there is an agreement to the contrary
A. Essential element
B. Natural elements
C. Accidental elements
D. Unnatural elements
59. Refers to an element of contracts that consist of the unusual stipulation
of the parties such as conditions, terms, etc.
A. Essential element
B. Natural elements
C. Accidental elements
D. Unnatural elements
60. A stage of a contract that includes all the initial stages up to the time the
parties agree upon the terms of the contract.
A. Preparation or Conception
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation
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61. A stage of a contract that refers to the time when the minds of the parties
meet in agreement upon the object or subject matter as well as to the
price or consideration.
A. Preparation or Conception
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation
62. Juan agrees to receive P2,000.00 for his horse and Pedro agrees to take
the horse for that amount. This refers to what stage of the contract
A. Preparation or Conception
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation
63. Juan delivers the horse to Pedro and the same is accepted. Pedro gives
the amount P2,000.00 as purchase price and the latter receives it.
This is an example of what stage of the contract
A. Preparation or Conception
B. Perfection or Birth
C. Consummation or Termination
D. Deliberation
64. A contract wherein the intent of the parties is shown by words, oral or
written.
A. Express contract
B. Implied contracts
C. Executed contracts
D. Executory contracts
65. A contract wherein the intent of the parties is shown by conduct.
A. Express contract
B. Implied contracts
C. Executed contracts
D. Executory contracts
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91. Damages which are small and trivial sums awarded for a technical injury
due to a violation of some legal right, and as a consequence of which
some damages must be awarded to determine the right.
A. Actual or Compensatory Damages
B. Nominal Damages
C. Moral Damages
D. Temperate or Moderate Damages
92. Damages that are reasonable compensation for the injury.
A. Actual or Compensatory Damages
B. Nominal Damages
C. Moral Damages
D. Temperate or Moderate Damages
93. Damages where the amount of which has been agreed upon by the
parties or fixed by the judgement of a competent court.
A. Liquidated Damages
B. Exemplary Damages
C. Corrective Damages
D. Compensatory Damages
94. Damages which are given in enhancement merely of the ordinary
damages on account of wanton, reckless, malicious, or oppressive
character of the acts complained of.
A. Actual or Compensatory Damages
B. Nominal Damages
C. Moral Damages
D. Exemplary or Corrective Damages
95. Branch of the unwritten law which was originally founded on the customs
of merchants, mariners and business men generally in their dealings with
one another throughout the civilized countries of the world.
A. Law Merchant
B. Law of businessmen
C. Law of mariners
D. Law of people
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