Professional Documents
Culture Documents
The test of negligence is whether the defendant General rule: No person shall be liable for
used that reasonable care and caution fortuitous event. His obligation will be
which an ordinary person wouldhave used in the extinguished.
same situation.
Exceptions:
Kinds of negligence (culpa): 1. The debtor is in delay or he has promised
1. Culpa contractual – example is breach of to deliver it to two or more person who
contract of carriage as when the do not have the same interest.
a passenger in the bus is hurt during trip. 2. When there is stipulation
3. When the nature of the obligation
Master servant rule applies. The
requires the assumption of risk. Example,
negligence of the employee is the
the liability of the insurer.
negligence of the master.
Receipt of principal payment Day certain is that which must necessarily come.
without reservation as to interest, Example: death.
shall give rise to the presumption
that the interest has been paid or Condition:
covered. 1. may or may not happen
Receipt of later installment 2. refers to future or to a past event
without reservation as to prior unknown to the parties
installments shall give rise to the while period must necessarily come
presumption the prior installments (day certain) and only refers to
have been paid. future event.
Potestative debtor, period ---court
These presumptions however are fixes the duration
disputable. Meaning, evidence may Potestative debtor, condition-
be introduced to the contrary. suspensive – VOID
Designating a period shall be presumed to
Remedies of the creditor to enforce payment of have been established for the benefit of
his claims: the creditor and debtor.
1. By Attachment – the creditor may ask At the benefit of the debtor, he cannot
the court to set aside a property be compelled to pay before the maturity
belonging to the debtor and ordered it to date. He can pay anytime he wishes.
be sold and the proceeds applied to the At the benefit of the creditor means the
payment of the obligation creditor can at any time demand or
2. Accion subrogation. The creditor will take accept payment when he wishes.
the rights of the debtor. The debtor loses his right to make use of the
3. Accion pauliana. Cancel the acts the period if it is for his benefit under the
debtor may have done to defraud his ff circumstances:
creditors 1. He becomes insolvent unless he gives a
guarantee or security
General rule. All rights are transmissible. 2. He fails to furnish the guarantee
or security he promised
Exceptions: 3. The guaranty or security is impaired
1. Law prohibits the transmission of the or lost
right. Rights of the general partners are 4. Violates any covenant
not transmitted to the heirs upon his 5. He attempts to abscond
death.
Alternative obligation is one where several
2. Stipulation
prestations are due but complete performance
3. The right by nature is not transmissible— of one of them is sufficient.
when the right is strictly personal. An The right of choice belongs to the debtor unless
obligation with a period is one it has been expressly given to the creditor.
where there is a day certain when the
obligation will arise or cease. When the debtor or the creditor communicated
his choice, the obligation ceases to be
Period is a space of time which determines the alternative and becomes simple obligation.
effectivity or extinguishment of an obligation. If all prestations are lost thru debtors
fault(debtor has the right to choose), the
debtor shall pay the value of the last respect to other creditor’s share. A can still be
thing that was lost plus damages. held liable if the other creditors did not receive
If the other things their share from the receiving co-creditor.
were lost due to fortuitous
and the last one was lost So long as the debt has not been collected, a
thru the debtor’s fault, the creditor may proceed against any of the solidary
debtor shall just pay debtors or some or all of them simultaneously.*
damages
if it was lost thru Interest from the date of payment accrues to
fortuitous event, obligation the benefit of the paying solidary debtor.
is extinguished.
If things were lost thru debtors fault If an insolvent debtor cannot reimburse his
(creditor has the right to choose), the share to the paying debtor, such share shall be
creditor may claim any of those borne by all his co-debtors, in proportion to the
subsisting or the price of those which debt of each.
were lost thru debtors fault plus
damages. Payment by a solidary debtor after the
If all things were lost thru obligation has prescribed does not entitle him to
debtors fault, creditor may reimbursement.
claim the price of any of
them plus damages. The solidary debtor making the payment can
recover what he paid from the guilty debtor (
Facultative obligation. Only one prestation is price of the thing, damages and interest)
due but the debtor may render another in
substitution. If the principal is impossible or A solidary creditor cannot assign his right to a
void, the debtor is not required to give the 3rd person without the consent of the other
substitute. solidary creditors (bound by mutual trust and
confidence).
IMPORTANT NOTE: A solidary creditor who has
caused the extinguishment of an obligation by Joint indivisible obligation. Debtors or creditors
remission, novation, compensation or confusion, are jointly bound but the prestation or object is
or who has collected the debt shall be liable to indivisible :
the others for the shares corresponding to 1. Creditors must act collectively: all of them
them. A solidary creditor may not do anything must make the demand unless one is
prejudicial to his co-solidary creditors. authorized to act for the others.
2. The demand must be made against all the
In case the debt has been totally paid by any of debtors since compliance is possible only if
the solidary debtors before the remission of a debtors act together.
proportionate share in an obligation 3. A renunciation made by a joint creditor
corresponding to the other solidary debtor, the extinguishes only his own share. In such
latter is still responsible to the paying co- case, the obligation is converted into a
debtor. monetary obligation to pay the value of the
thing
X, Y and Z are solidary creditors. X makes a 4. If one of the debtors does not comply with
demand against A. A must pay to X. if A pays to his undertaking, he has to pay damages.
other creditor, his payment is valid only with
5. If one of the debtors is insolvent, the Payment must be made in legal
others shall not be liable for his share. tender in the Philippines. However,
parties may stipulate currency
Indivisibility of an obligation refers to subject
other than Philippine legal tender.
matter or object not capable of partial
performance. General rule: Payment or performance must be
complete
Examples:
1. Obligation to give definite things Exceptions:
2. Those personal (to sing one song in a
program) 1. Obligation substantially performed
2. Obligee accepts the performance without
Examples of Divisible obligation (capable of expressing any protest. (deemed
partial performance):
fulfilled).
1. Execution of a certain number of days of
Debtor must possess the following
work.
2. Accomplishment of work by metrical units for the payment to be valid:
3. Provision of law ( full payment of tax) 1. He has FREE DISPOSAL OF
4. By stipulation of the parties THE THING DUE. There
should be no encumbrances or
liens or claims by third parties.
Penal clause attached to an obligation is an
2. CAPACITY TO ALIENATE
accessory undertaking on the part of the debtor
THE THING. The guardian of
which provides that in case of non-compliance,
the incapacitated or the
debtor assumes a greater liability. This is to
incapacitated person himself
insure performance.
when he regains or attains his
Proof of actual damages is not necessary in capacity may annul the
order that penalty may be demanded. It is payment.
sufficient that there is breach of contract. Payment made by the debtor
after the court has ordered
General rule: Penalty takes place of the damages him to retain debt is not valid.
and interest in case of non-compliance He can be required to pay again
If a third party doesn’t want to be reimbursed, Debtor/creditor cannot apply payment to the
it shall be deemed as a DONATION, which debt not yet due unless the period is for his
requires the consent of the debtor. If the benefit or that he is allowed by stipulation
debtor does not consent, it is still valid to the
Only apply payment to the debt of the same
creditor who has accepted the payment. Third
kind.
party is not subrogated.
might be at the time the obligation was 2. Creditor refuses to accept the
The debtor may withdraw the sum or thing 1. IF the remission involves an immovable
consigned before the creditor accepts the property , the remission and the acceptance
consignation or before the judge has declared must be in public instrument
that the consignation has been properly made. 2. If the remission involves personal or
movable property, the remission and
The debtor may withdraw the sum even after
acceptance must be in writing if the value of
the creditor accepted the consignation only with
the property exceeds 5,000.
the consent of the creditor. The effects would
3. If the value is 5000 or less, remission and
be:
acceptance may be in any form. The
1. The guarantors are released unless they remission however if made orally, requires
consented the simultaneous delivery of the thing or the
2. The obligation will become joint document representing the right remitted
3. Creditor can no longer proceed against
The private document is presumed to have been
the guarantor if later on the debtor
delivered voluntarily by the creditor to the
cannot pay.
debtor if it is found in the possession of the
Consignation without tender of payment is still debtor
valid if:
Legal compensation can take place when:
1. The debtor cannot see the creditor at
1. Debtors and creditors of each other are
the place of payment.
bound principally
2. Creditor is incapacitated to receive
2. Both consist in money or things that can
payment at the time it is due.
be interchanged (same kind and quality)
3. He refuses to give receipt
3. Both debts are due
4. 2 or more persons claim the same right to
4. There should be no order of retention
collect
5. Title of the obligation has been lost
Damages claimed can be set-off against
Generic thing does not perish (nunquam genus the obligation to pay.
perit). Obligation remains in force.
If it is a contract of deposit (different
Creditor has the right to proceed against the from bank deposit)/ commodatum, the
3rd person who has caused the lost of the period is for the benefit of the
prestation. depositor/lender meaning he is the one to
for debts due as of the date he learns of Novation is still valid even if there is a defect in
the assignment. the original obligation (voidable). Here, a
Compensation in solidary obligation is possible. novation cures whatever defects present in the
original obligation.
Novation means modification or extinguishment
of an obligation, either by: If the original obligation is subject to a
condition, the new obligation shall be subject to
1. Changing the object or principal the same condition.
obligation
2. Substitution of the person of the The original creditor shall be preferred over
always). 3rd person initiates the Novation executed by any of the solidary
substitution. If the old debtor has no creditor shall render him liable to the others for
knowledge or he did not consent, the the share in the obligation corresponding to
new debtor can only recover insofar them.
as the payment has been beneficial to
the old debtor (i.e, he is not entitled A debtor who is adjudged to be insolvent and
to subrogation). subsequently discharged by the court shall be
The old debtor is released from released from the obligation of all debts.
liability in any case, by the mere fact
In order to be discharged, one has to comply
the creditor consented.
with the law requirements in the: (1) surrender
b. Delegacion (consent of all parties is
of property (2) rendition of an account of assets
required) –Debtor initiates the
and liabilities (3) not guilty of fraud.
substitution. The new debtor can fully
recover from the old debtor with No discharge shall be granted to any
subrogation. corporation.