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Reviewer in the Midterm

“The Law on Obligations and
Contractss”/”Business Laws”
Ma’am Bernadette P. Yalong, LL.B

Introduction, Chapters 1- Chapter 4

Republic of the Philippines
Bulacan State University
Malolos City, Philippines

15 October, 2016

To: All my students in “The Law on Obligations and Contracts” / “Business Laws” ,
first semester, school year, 2016-2017 :


Good day to all ! 

Attached herein is a set of reviewer which will serve as a guideline in your midterm
examinations 

Students who will rank top three (3) in the said exam will be the official
representatives of your class in the 7th Quiz bee in “The Law on Obligations and
Contracts”, to compete with other sections  Total of eight (8) sections for this
semester 

Said activity will be held sometime in the 3rd week of November, 2016 

Good luck to all ! 


1. Law in strict sense

Law is a rule of conduct, just and obligatory, promulgated by competent
authority for common observance and benefit.

2. Obligation in strict sense

- juridical necessity to give, to do or not to do.

3. Creditor or Obligee
The person in favor of whom the obligation is contracted. One who has the
right to demand the performance of the obligation. Also known as the
lessor, lender, or mortgagee.

4. Debtor or Obligor

It refers to a person who is engaged to perform some obligation. Also
known as lessee, borrower or obligor.
5. Efficient cause or juridical tie or vinculum juris
- it refers to relation that binds the parties to an obligation. It may be one of
the five sources of obligation.
6. Contracts
- as defined in article 1305 of the Civil Code, contracts is a meeting of minds
between two persons whereby one binds himself, with respect to the other, to
give something or to render some service.

7. Quasi-contracts

- when an act arises from lawful, voluntary and unilateral acts, giving rise to a
juridical relation with an end that no one shall be which unjustly enriched or
benefited at the expense of another.

8. Reparation of the damage caused –

- it is a replenishment of a previously inflicted loss by the criminal to the


9. Quasi-delict or torts
- It is a result of the fault or negligence of a person, who, by his act or omission,
connected or unconnected with, but independent from any contractual relation,
causes damage to another person.
- It includes an act which are criminal in character or in violation of the penal
10. Good faith
-means a sincere belief or motive without any malice or the desire to defraud

11. Determinate or specific thing

- When it is particularly designated or physically segregated from all others of
the same class
12. Indeterminate or generic thing
-A thing is generic or indeterminate when it refers only to a class or genus to
which it pertains and cannot be pointed out with particularity.

13. fraud

Answer: it is the deliberate or intentional evasion by the debtor of the

fulfillment of his obligation in a normal manner

14. What is Delay (mora)?

-It means unreasonable lapse of time.
-There is a need for a demand (be it judical or extrajudicial) in order that one
party may be considered in delay or in default.

15. contravention of the tenor of the obligation ?
- it includes any illicit act which impairs the strict and faithful fulfillment of
the obligation. It may also mean any kind of defective performance.

16. Fortuitous event

- is any event which cannot be foreseen, or which, though foreseen, is

17. Acts of God

– refers to what is called majeure or those events which are totally
independent will of every human being.

18. Acts of man

– fortuitous event is an event independent of the will of the obligor but not of
other human will.

19. Usury
-It means contracting or receiving interest in excess of the amount allowed by
law for the loan or use of money, goods, chattels or credits.

20. Resolutory condition

-the happening or fulfillment of which rights which are already acquired by
virtue of the obligation are extinguished or lost

21. Suspensive condition

- happening of condition gives rise to obligation

22. Joint obligation

- Each creditor can demand only for the payment of his proportionate share of
the credit, while each debtor can be held liable only for the payment of his
proportionate share of the debt.

23. Solidary obligation

- One where each one of the debtors is bound to render, and/or each one of the
creditors has a right to demand from any of the debtors the entire compliance with
the prestations

24. Penalty clause

-This is an accessory obligation attached to the principal obligation which
imposes an additional liability in case of breach of the principal obligation

25. Payment or performance

-is the delivery of money and performance or in any other manner in the
performance of an obligation
26. What is Cession or Assignment in favor of creditors?
-It is the process by which debtor transfer all the properties not subject to
execution in favor of creditors is that the latter may sell them and thus, apply the
proceeds to their credits.

27. Consignation
- is the act of depositing the thing due with the court or judicial authorities
whenever the creditor cannot accept or refuses to accept payment; generally
requires prior tender of payment.

28. Condonation or remission of debt

- It is a gratuitous abandonment of debt or a right to claim.
. to extinguished an obligation, it requires the debtor’s consent.
29. Compensation
- may be defined as a mode of extinguishing in their concurrent amount those
obligations of persons who in their own right are creditors and debtors of each other

30. Complaint for specific performance

-It refers to an action to compel the fulfillment of the obligation.

Requisites of quasi- delicts :

1. There must be damaged or injury caused to the offended;

2. There must be a fault or negligence attributed to the offender;
3. There is no pre-existing contractual relation.

Kinds of negligence:

1. Culpa aquiliana or culpa extra-contractual

2. Culpa contractual
3. Culpa criminal

What are the remedies available to the creditor to enforce payment of his claims
against debtor?

1. The property must be pursued in the possession of the debtor, except those
properties exempted under the law.
2. To file an accion subrogatoria. This may be possible by exercising all the
rights of the creditor and bring all the actions of the debtor except those personal to
3. By means of accion pauliana- it can be done by impugning the acts which
the debtor may have done to defraud his creditors.

Classifications of quasi-contracts :
1. Solution indebiti
2. Negotiorium gestio

What are the requisites of obligation?

1. Active subject (creditor or obligee) –
2. Passive Subject (debtor or obligor) –
3. Prestation or Object –
4. Efficient cause or juridical tie or vinculum juris – it refers to relation that
binds the parties to an obligation.
It may be one of the five sources of obligation.
Sources of Obligations :
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.