Professional Documents
Culture Documents
- A juridical relation whereby a person (active) may demand NATURE AND EFFECTS OF OBLIGATIONS
from another (passive) the presence of an indeterminate
conduct which in tims of non-observance may seek relief. 1. Real Obligations – to give a specific or generic thing
2. Personal Obligations – to do or not to do
ELEMENTS
OBLIGATION OF A PERSON OBLIGED TO GIVE
1. Active – has the power to compel the debtor SOMETHING
2. Passive – debtor
3. Prestation – conduct the debtor must observe/either to - He is obliged to take good care of it with the diligence of a
give, to do or not to do good father of a family
4. Juridical tie – sources of oblgation
Note
1. If the parties have agrreed on the kind of diligence to be
SOURCES OF OBLIGATION observed, that which is stipulated shall be observed.
1. Law – those expressly provided in the New Civil Code or
2. If there is no agreement, the proper diligence of a good
special laws, Art. 1158
father of a family shall be observed.
2. Contracts – those that have force of law between
3. If the law require that a specific kind of diligence shall be
contracting parties and should be complied with in good
observed, this prevails over any kind of agreement.
faith, Art. 1159
3. Quasi-contracts – arise from lawful, unilateral and When does obligation arises?
voluntary acts which are enforceable to the end that no one - In pure obligations
should unjustly enrich himself at the expense of another, o Art. 1305. From the time of the perfection of
Art. 2142 the contract (meeting of the minds)
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- In conditional/periodical obligations - the other party is induced by word to enter into the contract
o Arises upon fulfillment of condition or (happens at the stage of perfection)
arrival of the period
Art. 1179. Demandability at once (if no
condition/period) 2. NEGLIGENCE
Art. 1193. Demandability on the date fixed - Failure to observe care
Kinds:
When is obligation demandable at once?
1. Contractual negligence (culpa contractual)
- When it is pure (1179) - Negligence in contracts resulting to breach
- When it is subject to a resolutory condition (1179, p.2)
- When it is subject to a resolutory period (1193, p.2) 2. Civil negligence (culpa acquillana)
- Negligence which by itself is the source of the obligation;
also called “tort or delict”
FOUR GROUNDS FOR LIABILITY FOR DAMAGES
3. Criminal negligence (culpa criminal)
1. FRAUD - Resulting from commission of a crime
- Awareness that one’s act/conduct is improper and it
violates the rights of another yet there is persistence.
Art. 1170 – refers to incidental fraud (dolo incidente) Culpa contractual Culpa acquillana Culpa criminal
- Committed in the performance of an obligation (at the stage There is a pre- There is a no pre- There is a no pre-
of consummation) existing obligation existing obligation existing obligation
- Ex. When you were shown a pendant and it looked real so
you entered into buying it but the seller gave you a fake
pendant instead.
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3. DELAY
Preponderance of Preponderance of Crime must be
eveidence is eveidence is proven beyond - failure to perform an obligation on time which constitutes breach
required required reasonable doubt of the obligation.
When it is incurred?
Defense of a good Defense of a good Defense of a good
father of a family is father of a family is father of a family is - From the time the oblige demands
applicable applicable not applicable - No demand, no delay/ no period, no delay
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2. Reccision or cancellation of the obligation with payment for SUBSIDIARY REMEDIES IN CASE OF BREACH
damages (Art. 1170 – in cases of fraud, delay, negligence)
- Remedies available to creditors for the satisfaction of their
claims
3. Payment of damages (when there is no other remedy)
Art. 1177
Remedies in obligation TO DO 1. Exact fulfillment with damages
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2. Pursue the leviable property of the debtor - Obligation of the seller to deliver depends when the buyer
3. Exercise all rights pays the price. As long as B has not paid, there is no delay,
Like ACCION SUBROGATORIA – right to collect vice versa.
from the debtor’s debtor.
In case of breach, like:
Like when the debtor has no money, what is the remedy Suppose B paid the price and S is in delay; if S does not make the
of the creditor? delivery, B can go to Art. 1191 for remedy.
- If the debtor has no sufficient properties/money but he has
himself debtors, the creditor has the right to collect from B may choose fulfillment, if he wants performance.
the debtor of his debtor by virtue of accion subrogatoria. Second option is rescission or cancellation of the transaction.
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DIFFERENT KINDS OF OBLIGATION 1. When you have rights as a lawyer but can only practice/use it
as soon as you pass the bar
2. I will give a car to you if you pass the Bar Exam on
1. PURE/CONDITIONAL OBLIGATION September 2003. The condition is suspensive because the
How to determine? giving of the car depends on the results of the examinatio to be
given on September 2003.
Art. 1179, par. 1
PURE – if based on a certain date/time 2. Resolutory
– not subject to a condition/no specific date mentioned for - Obligation is immediately effective but will extinguish upon
its fulfillment happening of the condition
- Immediately demandable - Effect of non-fulfillment of resolutory condition:
o Resolves the contract by force of law without need of
judicial intervention
Art. 1181 EXAMPLE.
CONDITIONAL 1. I will give you mar car today but if you fail the bar exam to
– if the due of obligation is uncertain and based on a future be given on September 2003, I will be the owner of the car
event again. It is resolutory because the happening of the
- Whose consequences are subject in one way or another to conidtion extinguishes the obligation.
the fulfillment of a condition
SUSPENSIVE RESOLUTORY
2 principal kinds:
Before happening, obligation is Obligation is immediately
1. Suspensive not yet demandable demandable
- will give rise to an obligation
- demandability is suspended until the happening of the If the condition happens, it is Once happen, obligation is
condition now demandable extinguished
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For the debtor, he may recover Not applicable in resolutory - if the condition is dependent partly upon sole will of the debtor
what he had paid by mistake and partly by chance or third person
(Art. 1188, p.2)
- obligation is perfectly VALID
2. POTESTATIVE CONDITION
6.IMPOSSIBLE CONDITION (Art. 1183)
- suspensive in nature
- depends upon the sole will of one of the parties - applies to suspensive condition
- applies to existing obligation
Validity of obligation upon will of the parties:
- if exists after the constitution of obligation, Art. 1266 applies: “the
1. In suspensive condition upon sole will of the debtor debtor to do shall be released when the prestation becomes
- Conditional obligation shall be void (Art. 1308) and cannot physically or legally impossible without fault of the debtor”.
be legally demandable
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6. POSITIVE/NEGATIVE CONDITIONS
Positive (Art. 1184) 1. Fulfillment of suspensive condition (Art. 1187, p. 1)
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Kinds of loss:
1. Physical loss – when it perishes like burning of a house
2. Legal loss – when it goes out of commerce like it
becomes illegal
3. Civil loss – when it disappears like missing dog
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However, you can go to court to fix period ALTERNATIVE OBLIGATIONS (Art. 1199)
and when period is fixed, and C still does not
- One where out of the two or more prestations which will be
comply, there will be now a breach
given, only one is due and is sufficient for the fulfillment of
the obligation
2. Art. 1197, p. 2
- The courts shall also fix the duration of the period when it EXAMPLE.
depends upon the will of the debtor.
- Relate with Art. 1180: A borrowed money from B. The agreement states that the loan
o When the debtor binds himself to pay when his can be paid in PH peso or US dollars.
means permit him to do so, the obligation shall be
deemed one with a period.
Who has the right to choose prestation
How will courts fix period? - Art. 1200. The right of choice belongs to the debtor
Art. 1197, p.3 Exceptions.
- Once period is fixed, it cannot be changed 1. Art. 1202. The debtor loses the right to choose when
among the prestations, only one is practicable.
2. Art. 1205. The right of choice belongs to the creditor when
expressly provided.
3. Art. 1203. If the debtor cannot make a choice, the
obligation is rescinded.
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3. When all the things are lost through debtor’s fault ALTERNATIVE FACULTATIVE
- Creditor can demand the payment of the price of any of the
prestations with right to damages Several prestations are due but Only one prestation is due
compliance with one is although substitution is
4. When all the things are lost through fortuitous sufficient allowed
event
- Obligation is extinguished The right of choice may be Right to make substitution is
given to the debtor or third given to the debtor only
party
When does the choice take effect?
Loss of one or more of the Loss of the thing due thru
- Art. 1201. From the time the choice has been communicated alternatives thru fortuitous fortuitous event extinguishes
event does not extinguish obligation
obligation
FACULTATIVE OBLIGATION, Art. 1206
In nullity of prestation, nullity Nullity of prestation
- One where only one prestation has been agreed upon but of one does not invalidate the invalidates obligation
the obligor may render another in SUBSTITUTION. others
EXAMPLE.
1. I will give you my money but I can give you my television
instead
Effect of loss.
1. Before substitution – if the principal thing is lost thru a
fortuitous event, the obligation is extinguished; otherwise,
the debtor is liable for damages.
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Art. 1208. The credit or debt shall be divided into as many equal
shares as there are debtors and creditors.
EXAMPLE.
A,B and C are partners in a buy and sell business. D buys
car. However, C later on disagreed realizing that the car has
a sentimental value. What is the remedy of D?
1224. The debtors who may have been ready to fulfill shall
not contribute to the indemnity beyond the corresponding
portion of the price of the thing or value of the service
consist in the obligation.
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