Reviewer Midterm

OBLIGATIONS & CONTRACTS 1
Zambales. Pablo. Gonzales

to move for the cancellation of the
I mortgage and the release of the
mortgaged prop., upon payment of the
balance of the loan. xxx
 ARTICLE 1176. The receipt of Thus, aside from the fact that
the principal by the creditor the resp. bank was estopped from
without reservation with enforcing its right to foreclose by virtue
respect to the interest shall of its acceptance of the delayed
give rise to the presumption payments for a period of more than six
that said interest has been years, the application of such payment
paid. to the interest and the principal during
the first three payments constitutes a
The receipt of a later
virtual waiver of the acceleration clause
installment of a debt without provided in the contract. We cannot
reservation as to prior sustain the legality of the foreclosure
installments, shall likewise under the peculiar facts of this case, bec.
raise the presumption that there is substantial performance of the
such installments have been obligation on the part of petitioner. xxx
paid.
 ARTICLE 1235. When the  ARTICLE 1431. THROUGH

obligee accepts the ESTOPPEL AN ADMISSION OR
performance, knowing its REPRESENTATION IS
incompleteness or irregularity, RENDERED CONCLUSIVE
and without expressing any UPON THE PERSON MAKING
protest or objection, the IT, AND CANNOT BE DENIED
obligation is deemed fully OR DISPROVED AS AGAINST
complied with. THE PERSON RELYING
THEREON.
CASES:
REQUISITES:
AZCONA V. JAMANDRE [151 S 317] 1. An admission;
- xxx If the petitioner is fussy enough to 2. Is rendered conclusive
invoke it now, it stands to reason that he 3. Upon the person making it;
would have fussed it too in the receipt he and
willingly signed after accepting, w/o 4. Cannot be denied or
reservation and apparently w/o protest disproved against the person relying
only P7,000. Art. 1235 is applicable.
thereon
xxx
Petitioner says that he could
not demand payment of the balance of CONCEPT OF ESTOPPEL
P200 on 10/26/60, date of receipt bec. Estoppel is a bar which precludes a
the rental for the crop year 1961-1962 person from denying or asserting
was due on or before 1/30/61. But this anything to the contrary of that which
would not have prevented him from has, in contemplation of law, been
reserving in the receipt his right to established as the truth, either by the
collect the balance when it fell due. acts of judicial or legislative officers or
Moreover, there is evidence in the by his own deed or representation,
record that when the due date arrived,
he made any demand, written or verbal,
either expressed or implied.
for the payment of that amount. It concludes the truth in order to
prevent fraud and falsehood, and
imposes silence on a party only when in
PAGSIBIGAN V. CA [221 S 202] - conscience and honesty he should not be
We hold that the payment amounting to allowed to speak.
P8,500 for the balance of P3,558.20 as
of 8/26/78 plus the P1,000 it was asked DISTINGUISHED FROM WAIVER
to pay on 4/24/84 would at the very A waiver is a voluntary and
least constitute substantial performance.
intentional abandonment or
xxx Petitioner in this case has the right
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WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
relinquishment of a known right. It Mere innocent silence will not work an
carries no implication of fraud. It estoppel. There must also be some
involves the act or conduct of only one of element of turpitude or negligence
the parties. connected with the silence by which
An equitable estoppel may arise, another is misled to his injury. But one
however, even where there is no who invokes this doctrine of estoppel
intention on the part of the person must show not only unjustified inaction
estopped to relinquish any existing right but also some unfair injury would result
and frequently carries the implication of to him unless the action is held barred.
fraud. It involves the conduct of both Estoppel by acquiescence is closely
parties. related to estoppel by silence. In the
In Lopez v. Ochoa (L- 7955, May former, a person is prevented from
30, 1958), the Supreme Court held that maintaining a position inconsistent with
waiver and estoppel are frequently used one in which he has acquiesced.
as convertible terms. The doctrine of
waiver belongs to the family of, is of the KINDS OF ESTOPPEL
nature of, is based on, estoppel. The 1. Technical Estoppels
essence of waiver is estoppel and where
there is no estoppel, there is no waiver. a. Estoppel by record – the
This is especially true where the waiver preclusion to deny the truth
relied upon is constructive or implied of matters set forth in a
from the conduct of a party. record, whether judicial or
legislative, and also to deny
DISTINGUISHED FROM the facts adjudicated by a
RATIFICATION court of competent
In ratification, the party is bound jurisdiction
because he intended to be bound; in Example: the
estoppel, the party is bound conclusiveness of a
notwithstanding the fact that there was judgment on the parties to a
no such intention because the other case
party will be prejudiced and defrauded
by his conduct unless the law treats him b. Estoppel by deed – a bar
as legally bound. which precludes one party
to a deed and his privies
DISTINGUISHED FROM FRAUD from asserting as against
Estoppel exists with or without a the other party and his
contract; fraud presupposes an attempt privies any right or title in
to enter into a valid agreement or derogation of the deed, or
contract. from denying the truth of
While estoppel may raised as a any material facts asserted
defense, fraud may properly be a cause in it; a written instrument is
of action on account of the vitiated necessary for there to be
consent that it produces. estoppel by deed
 Some doctrines:
ADMISSIONS
A party may be estopped to insist 1. If the deed or
upon a claim, assert an objection, or instrument is
take a position which is inconsistent null and void
with an admission which he had because of the
previously made and in reliance upon contract, there
which the other party has changed his is no estoppel
position. 2. Ordinarily, the
person
SILENCE OR INACTION estopped must
This is sometimes referred to as be capacitated;
estoppel by “standing by” or “laches.”
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but a minor is action to
clever enough protect a vested
to deceive right (executed
others, estoppel interest)
may result c. Just because a
3. If a person, who person is silent
is not a party to does not
the instrument, necessarily
notarizes the mean that he
same, he is not will be in
in estoppel estoppel; there
should have
2. Equitable Estoppel or Estoppel in
been a duty or
Pais
obligation to
It arises when one by his speak
acts, representations or admissions,
d. A mere promise
or by his silence when he ought to
to perform or to
speak out, intentionally or through
omit at some
culpable negligence, induces
future time does
another to believe certain facts to
not necessarily
exist, and such other rightfully relies
result in
and acts on such belief, so that he
estoppel
will be prejudiced if the former is
(promissory
permitted to deny the existence of
estoppel); for
such facts. It takes place in a
this to exist, the
situation where because if a party’s
promise must
action or omission, he is denied the
have been relied
right to plead or prove an otherwise
upon and
important fact.
prejudice would
This may be estoppel: result unless
1. by conduct or by acceptance estoppel is
of benefits applied
2. by representation or  ARTICLE 1956. No interest

concealment shall be due unless it has been
3. by silence expressly stipulated in writing.
4. by omission II
5. by laches
 Some doctrines:  ARTICLE 1170. Those who in
the performance of their
a. Conduct obligation are guilty of fraud,
because of negligence or delay, and those
ignorance or who in any manner contravene
mistake does the tenor thereof, are liable for
not result in damages.
estoppel
b. Estoppel by CASES:
laches bars an
action to create ARRIETA VS. NARIC [10 S 79] -
a vested right One who assumes a contractual
(executory obligation and fails to perform the same
interest) but on account of his inability to meet
does not bar an certain bank requirements which
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inability he knew and was aware of when of the coming of the typhoon at least 4
he entered into the contract, should be days bef. it actually struck. And even
held liable in damages for breach of though the typhoon was an act of God or
contract. what we may call force majeure, NPC
Under Art. 1170, not only debtors cannot escape liability bec. its negligence
guilty of fraud, negligence or default but was the proximate cause of the loss and
also every debtor, in general, who fails damage. As we have said in Juan Nakpil
the performance of his obligation is & Sons vs. CA, 144 SCRA 596,
bound to indemnify for the losses and Thus, if upon the happening of a
damages caused thereby. fortuitous event or an act of God, there
concurs a corresponding fraud,
Meaning of phrase "in any negligence, delay or violation or
manner contravene the tenor" of contravention in any manner of the
the obligation.-- The phrase includes tenor of the obligation as provided for in
any illicit task w/c impairs the strict and Art. 1170, w/c results in a loss or
faithful fulfillment of the obligation, or damage, the obligor cannot escape
every kind of defective performance. liability. The principle embodied in the
This phrase is a catch-all provision. act of God doctrine strictly requires that
At worst, it is a superfluity. At best, the act must be one occasioned
there is a safety net just in case there is a exclusively by the violence of nature and
culpable irregularity of performance w/c human agencies are to be excluded from
is not covered by fraud, negligence or creating or entering into the cause of the
delay. In this case, the SC was mischief. When the effect, the cause of
apparently not sure as to what category w/c is to be considered, is found to be in
the breach fell. This phrase is not really part the resulf of the participation of
an independent ground. man, whether it be from active
intervention or neglect, or failure to act,
TELEFAST VS. CASTRO [158 s the whole occurence is thereby
445] - In the case at bar, petitioner and humanized, as it was, and removed from
private respondent Sofia C. Crouch the rules applicable to the acts of God.
entered into a contract whereby, for a Thus, it has been held that when the
fee, petitioner undertook to send said negligence of a person concurs w/ an act
private respondent's message overseas of God in producing a loss, such person
by telegram. This, petitioner did not do, is not exempt from liability by showing
despite performance by said pvt. resp. of that the immediate cause of the damage
her obligation by paying the required was the act of God. To be exempt from
charges. Petitioner was therefore guilty liability for loss bec. of an act of God, he
of contravening its obligation to said must be free from any previous
private respondent and is thus liable for negligence or misconduct by w/c the loss
damages. or damage may have been occasioned.
NPC VS. CA [161 S 334] - NPC RCPI VS. RODRIGUEZ [182 S 889]
cannot escape liability bec. its negligence - Resp. Rodriguez and RCPI entered
was the proximate cause of the loss and into a contract whereby for a fee RCPI
damage even though the typhoon was an undertook to send the respondent's
act of God.-- It is clear from the message overseas. When, therefore,
appellate court's decision that based on resp. Rodriguez paid RCPI to deliver his
its findings of fact and that of the trial message overseas by telegram, RCPI
court's, petitioner NPC was undoubtedly obligated itself to transmit the messages
negligent bec. it opened the spillway to the addressee. Clearly, RCPI reneged
gates of the Angat Dam only at the on its obligation when it failed to deliver
height of typhoon "Welming" when it the messages or to inform the sender
knew very well that it was safer to have about the non-delivery, thus making it
opened the same gradually and earlier, liable for damages.
as it was also undeniable that NPC knew
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Fraud 3. Compensation Morae -- mutual
delay
Is it correct to say that fraud in Art.
1170 means deceit or insiduous  ARTICLE 1172. Responsibility
machinations? No. arising from negligence in the
performance of every kind of
LEGASPI OIL VS. CA [224 S 213] - obligation is also demandable, but
Definition of Fraud.-- In general, fraud such liability shall may be regulated
may be defined as the voluntary by the courts, according to the
execution of a wrongful act, or willful circumstances.
omission, knowing and intending the
effects w/c naturally and necessarily CASE:
arise from such act or omission; the
fraud referred to in Art. 1170 is the METROBANK VS. CA [237 S 761] -
deliberate and intentional evasion of the As borne out by the records, the
normal fulfillment of obligation; it is dishonoring of the resp.'s checks
distinguished from negligence by the committed through negligence by the
presence of deliberate intent, w/c is petitioner bank on 4/6/82 was rectified
lacking in the latter. only on 4/15/82 or nine days after
receipf of the credit memo. Clearly,
Fraud as used in Art. 1170 is different petitioner bank was remiss in its duty
from fraud as a cause for vitiation of and obligation to treat pvt. resp's
consent in contracts (more properly account w/ the highest degree of care,
called deceit w/c prevents the contract considering the fiduciary nature of the
from arising; this is found in Art. 1380) relationship. The bank is under
obligation to treat the accounts of its
Q: What is a synonym for fraud as used depositors w/ meticulous care, whether
in Art. 1170? such account consists only of a few
A: Malice. hundred pesos or of millions. It must
bear the blame for failing to discover the
Effects of Fraud: mistake of its employee despite the
1. Creditor may insist on performance, established procedure requiring bank
specific or substitute (Art. 1233.) papers to pass through bank personnel
2. Creditor may resolve/ rescind (Art. whose duty it is to check and
1191.) countercheck them for possible errors.
3. Damages in either case (Art. 1170.) Responsibility arising from negligence in
the performance of every kind of
obligation is demandable. xxx
Negligence
 Article 1173. The fault or
Negligence is the absence of something negligence of the obligor consists in
that should be there-- due diligence. the omission of that diligence which
is required by the nature of the
Delay obligation and corresponds with the
circumstances of the persons, of the
Delay is the non-fulfillment of the time and of the place. When
obligation w/ respect to time. negligence shows bad faith, the
provisions of articles 1171 and 2201,
Kinds of Delay: paragraph 2, shall apply.
1. Mora Solvendi -- delay in the

performance (on the part of the Art. 1171. Responsibility
debtor); arising from fraud is
2. Mora Accipiendi -- delay in the demandable in all
acceptance (on the part of the creditor); obligations. Any waiver of
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an action for future fraud is
void. JIMENEZ VS. CITY OF MANILA
[150 S 510] - City of Mla. failed to
exercise the diligence of a good father of
Art. 2201.(2) In contracts a family w/c is a defense in quasi-
and quasi-contracts, the delict.-- As a defense against liability on
damages for which the the basis of quasi-delict, one must have
obligor who acted in good exercised the diligence of a good father
faith is liable shall be those of a family. There is no argument that it
that are the natural and is the duty of the City of Mla. to exercise
probable consequences of reasonable care to keep the public
the breach of the obligation, market reasonably safe for people
and which the parties have frequenting the place for their marketing
foreseen or could have needs. While it may be conceded that
reasonably foreseen at the the fulfillment of such duties is
time the obligation was extremely difficult during storms and
constituted. floods, it must, however, be admitted
that ordinary precautions could have
In case of fraud, bad faith, been taken during good weather to
malice or wanton attitude, minimize the dangers to life and limb
the obligor shall be under those difficult circumstances. For
responsible for all damages instance, the drainage hole could have
which may be reasonably been placed under the stalls instead of
attributed to the non- on the passage ways. Even more
performance of the important is the fact, that the City
obligation. should have seen to it that the openings
were covered. Sadly, the evidence
indicates that long before petitioner fell
***Negligence is the absence of into the opening, it was already
something that should be there-- uncovered, and 5 mos. after the incident
diligence. happened, the opening was still
uncovered. Moreover, while there are
Measure of Due Diligence.-- There findings that during floods the vendors
are two guides: remove the iron grills to hasten the flow
(1) Diligence demanded by of water, there is no showing that such
circumstances of person, place and time practice has ever been prohibited, much
(2) Care required of a good father of less penalized by the City of Mla.
a family (fictional bonus pater familias Neither was it shown that any sign had
who was the embodiment of care, been placed thereabouts to warn
caution and protection in Roman law.) passers-by of the impending danger.
In common law, the degree of care Extraordinary diligence required

required is the diligence of a prudent
businessman. This is actually the same A. Innkeeper
as the diligence of a good father of a
family. Art. 2000. The responsibility
referred to in the two preceding articles
Effects of Negligence: shall include the loss of, or injury to the
1. Creditor may insist on performance, personal property of the guests caused
specific or substitute (Art. 1233.) by the servants or employees of the
2. Creditor may resolve/ rescind (Art. keepers of hotels or inns as well as by
1191.) strangers; but not that which may
3. Damages in either case (Art. 1170.) proceed from any force majeure. The
fact that travellers are constrained to
rely on the vigilance of the keeper of the
CASE: hotelss or inns shall be considered in
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determining the degree of care required shall have such right in case of loss of
of him. more than one-half of the fruits through
extraordinary and unforeseen fortuitous
events, save always when there is a
Art. 2001. The act of a thief or specific stipulation to the contrary.
robber, who has entered the hotel is not Extraordinary fortuitous events are
deemed force majeure, unless it is done understood to be: fire, war, pestilence,
with the use of arms or through an unusual flood, locusts, earthquake, or
irresistible force. others which are uncommon, and which
the contracting parties could not have
reasonably foreseen.
B. Common Carriers
 Article 2176. Whoever by act or
Art. 1733. Common carriers, from omission causes damage to another,
the nature of their business and for there being fault or negligence, is
reasons of public policy, are bound to obliged to pay for the damage done.
observe extraordinary diligence in the Such fault or negligence, if there is
vigilance over the goods and for the no pre-existing contractual relation
safety of the passengers transported by between the parties, is called a
them, according to all the circumstances quasi-delict and is governed by the
of each case. provisions of this Chapter.
Such extraordinary diligence in the  Art. 2180. The obligation imposed
vigilance over the goods is further by article 2176 is demandable not
expressed in articles 1734, 1735, and only for one's own acts or omissions,
1745, Nos. 5, 6, and 7, while the but also for those of persons for
extraordinary diligence for the safety of whom one is responsible.
passengers is further set forth in articles The father and, in case of
1755 and 1756. his death or incapacity, the mother,
are responsible for the damages
caused by the minor children who
Art. 1734. Common carriers are live in their company.
responsible for the loss, destruction, or Guardians are liable for
deterioration of the goods, unless the damages caused by the minors or
same is due to any of the following incapacitated persons who are under
causes only: their authority and live in their
(1) Flood, storm, earthquake, company.
lightning, or other natural disaster or The owners and managers
calamity; of an establishment or enterprise are
(2) Act of the public enemy in war, likewise responsible for damages
whether international or civil; caused by their employees in the
(3) Act or omission of the shipper or service of the branches in which the
owner of the goods; latter are employed or on the
(4) The character of the goods or occasion of their functions.
defects in the packing or in the Employers shall be liable for
containers; the damages caused by their
(5) Order or act of competent public employees and household helpers
authority. acting within the scope of their
assigned tasks, even though the
former are not engaged in any
C. Lessee of Agricultural land business or industry.
The State is responsible in
Art. 1680. The lessee shall have no like manner when it acts through a
right to a reduction of the rent on special agent; but not when the
account of the sterility of the land damage has been caused by the
leased, or by reason of the loss of fruits official to whom the task done
due to ordinary fortuitous events; but he properly pertains, in which case
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what is provided in article 2176 shall
be applicable. IV
Lastly, teachers or heads of
establishments of arts and trades  Article 1191. The power to rescind
shall be liable for damages caused by obligations is implied in reciprocal
their pupils and students or ones, in case one of the obligors
apprentices, so long as they remain should not comply with what is
in their custody. incumbent upon him.
The responsibility treated of The injured party may
in this article shall cease when the choose between the fulfillment and
persons herein mentioned prove the rescission of the obligation, with
that they observed all the diligence the payment of damages in either
of a good father of a family to case. He may also seek rescission,
prevent damage. even after he has chosen fulfillment,
if the latter should become
III impossible.
The court shall decree the
 ARTICLE 1170. supra rescission claimed, unless there by
 ARTICLE 1167. If a person obliged just cause authorizing the fixing of a
to do something fails to do it, the period.
same shall be executed at his cost. This is understood to be
This same rule shall be observed if without prejudice to the rights of
he does it in contravention of the third persons who have acquired the
tenor of the obligation. thing, in accordance with articles
Furthermore, it may be decreed that 1385 and 1388 and the Mortgage
what has been poorly done be Law.
undone.
Article 1385. Rescission
A. POSITIVE PERSONAL creates the obligation to return the
OBLIGATION. CREDITOR’S things which were the object of the
REMEDIES: contract, together with their fruits, and
the price with its interest; consequently,
1. Have the obligation it can be carried out only when he who
performed by himself or by demands rescission can return whatever
another, unless personal he may be obliged to restore.
considerations are involved. Neither shall rescission take place when
1. To obtain damages the things which are the object of the
contract are legally in the possession of
Note: In no case can the third persons who did not act in bad
debtor be compelled against faith.
his will to comply with his In this case, indemnity for
damages may be demanded from the
obligation (to do) because this
person causing the loss.
will amount to involuntary
servitude as prohibited by the Article 1388. Whoever
Constitution. acquires in bad faith the things alienated
in fraud of creditors, shall indemnify the
B. NEGATIVE PERSONAL latter for damages suffered by them on
OBLIGATION. (Where the debtor account of the alienation, whenever, due
does what has been forbidden him) to any cause, it should be impossible for
him to return them.
If there are two or more
1. To have the thing done
alienations, the first acquirer shall be
undone (if still possible) liable first, and so on successively.
at the expense of the
obligor and
2. To obtain damages.
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***Is there a connection bet. the right of maintained or continued, as expressly
rescission and Pure and conditional provided in Arts. 1383 and 1384. But the
obligations? operation of these 2 articles is limited to
cases of rescission for lesion enumerated in
A: Yes. In a reciprocal obligation, breach by Art. 1381 and does not apply to cases under
one party is a tacit resolutory condition. Art. 1191.
This means that the other party who is
victimized by the breach may declare the Rescission under the Civil Code.--
obligation resolved. The 2 instances of rescission are defectively
termed "rescission" w/o distinction bet. then
Note: Art. 1191 refers to reciprocal under the NCC unlike the previous OCC, that
obligations (mutual, imples some differentiated "resolution" for breach of
correspondence), e.g., a contract of sale w/c stipulations from "rescission" by reason of
is the most reciprocal of all contracts, the lesion or damage.
architype, the proto-type, the paradigm, the
distillation of all reciprocal obligations. Doctines laid down in this case:
Two requisites of a Reciprocal Obligations: 1. Resolution is not predicated on economic

1. Both prestation arise from the injury but on breach or violation
same source 2. It is not a subsidiary remedy but a
2. Each prestation is intended to be principal one w/c is retaliatory in nature.
the counterpart or equivalent of the other
(quid pro quo)
MAGDALENA ESTATE V. MYRICK [71
CASES: P 344] - The contract of sale contains no
provision authorizing the vendor, in the
UNVIVERSAL FOOD CORP V. CA [33 event of failure of the vendee to continue in
SCRA 1] - Rescission for breach of the payment of the stipulated monthly
contract and rescission by reason of lesion or installments, to retain the amounts paid to
economic prejudice, distinguished.-- A him on account of the purchase price. The
rescission for breach of contract under Art. claim, therefore, of the petitioner that it has
1191, NCC is not predicated on injury to the right to forfeit said sums in its favor is
economic interests of the party pltff. but on untenable. xxx [H]e may choose bet.
the breach of faith by the def., that violates demanding the fulfillment of the contract or
the reciprocity bet. the parties. It is not a its resolution. These remedies are
subsidiary action, and Art. 1191 may be alternative and not cumulative, and the
scanned w/o disclosing anywhere that the petitioner in this case, having elected to
action for rescission thereunder is cancel the contract, cannot avail himself of
subordinated to anything other than the the other remedy of exacting performance.
culpable breach of his obligations by the def. As a consequence of the resolution, the
This rescission is a principal action parties should be restored, as far as
retaliatory in character, it being unjust that a practicable, to their original situation w/c
party be held bound to fulfill his promises can be approximated only by ordering, as we
when the other violates his. As expressed do now, the return of the things w/c were
inthe old Latin aphorism: Non servandi the object of the contract, w/ their fruits and
fidem, non est fides servanda. Hence, the of the price, w/ interest, computed from the
reparation of damages for the breach is date of the institution of the action.
purely secondary.
On the other hand, in a rescission by
reason of lesion or economic prejudice
under ARt. 1381, et seq., NCC, the cause of Doctrines laid down in this case:
action is subordinated to the existence of
that prejudice,bec. it is the raison d' etre as 1. Right of resolution is implied in reciprocal
well as the measure of the right to rescind. contracts.
Hence, where the def. makes good the 2. Once resolution is availed of, there is a
damage caused, the action cannot be duty of mutual restitution bet. the parties--
________________________________________________________________________
when a reciprocal obligation is resolved, the
effect is to cancel the juridical relation. These doctrines are implied from
Parties should be restored to their status quo these rulings in this case:
ante
a. If the aggrieved party has not yet
performed his prestation, all he has to do is
UP V. DE LOS ANGELES [35 SCRA to refuse to perform if he resolves.
102] - There is nothing in the law that b. If he has already performed, upon
prohibits the parties from entering into resolution, he can demand restitution. If he
agreement that violation of the terms of the refuses, he can sue for recovery and not for
contract would cause cancellation thereof, resolution (for the return of what you gave.)
even w/o court intervention. In other
words, it is not always necessary for the ZULUETA V. MARIANO [111 SCRA
injured party to resort to court for rescission 206] - True, the contract bet. the parties
of the contract. provided for extrajudicial rescission. This
Of course, it must be understood has legal effect, however, where the other
that the act of a party in treating a contract party does not oppose it. Where it is
as cancelled or resolved on account of objected to, a judicial determination of the
infractions by the other contracting party issue is still necessary. "A stipulation
must be made known to the other and is entitling one party to take possession of the
always provisional, being ever subject to land and building if the other party violates
scrutiny and review by the proper court. If the contract does not ex pro prio vigore
the other party denies that rescission is confer upon the former the right to take
justified, it is free to resort to judicial action possession thereof if objected to w/o judicial
in its own behalf, and bring the matter to intervention and determination."
court. Then, should the court, after due
hearing, decide that the resolution of the
contract was not warracted, the responsible BOYSAW V. INTERPHIL
party will be sentenced to damages; in the PROMOTIONS [148 SCRA 635] -
contrary case, the resolution will be There is no doubt that the contract in
affirmed, and the consequent indemnity question gave rise to reciprocal obligations.
awarded to the party prejudiced. "Reciprocal obligations are those w/c arise
In other words, the party who deems from the same cause, and in w/c each party
the contract violated may consider it is a debtor and a creditor of the other, such
resolved or rescinded, and act accordingly, that the obligation of one is dependent upon
w/o previous court action, but it proceeds at the obligation of the other. They are to be
its own risk. For it is only the final judgment performed simultaneously, so that the
of the correponding court that will performance of one is conditioned upon the
conclusively and finally settle whether the simultaneous fulfillment of the other.
action taken was or was not correct in law. The power to rescind is given to the
xxx injured party. Where the pltff is the party
who did not perform the undertaking w/c he
Doctrines laid down in this case: was bound by the terms of the agreement to
perform, he is not entitled to insist upon the
1. Right or resolution in Art. 1191 is performance of the contract by the def., or
implied.-- It is available even if there is no recover damages by reason of his own
stipulation in the contract. (This is not new; breach.
it merely reiterates what was laid down in
Magdalena Estate v. Myrick.) PILIPINAS BANK V. IAC [151 SCRA
2. Right of resolution may be exercised 546] - Automatic rescission cannot be
extrajudicially and will take effect upon availed of where there is a clear waiver of the
communication by the aggrieved party to the stipulated right of automatic rescission as
breaching party. evidenced by the many extensions granted to
3. Exercise of this right is always subject to prvt resps. by petitioner to pay their
judicial review. It is up to the other party to arrearages and update their installment
go to the court. payment under the contract.
________________________________________________________________________
permitted for a slight or casual breach, but
only for such substantial and fundamental
SONGCUAN V. IAC [191 SCRA 28] - breach as would defeat the every object of
Neither do we agree that the right of the the parties in making the agreement; the
Alviars to repurchase may be rescinded question of whether a breach of contract is
under Art. 1191. Songcuan asserts that the substantial depends upon the attending
Oct. 10, 1966 contract he entered into w/ the circumstances.
Alviars created a reciprocal obligation bet.
them-- for him to reconvey the subject
premises and for the Alviars to lease the TAYAG V. CA [219 SCRA 480] - The
realties to him-- and the refusal of the latter suggestion of petitioners that the covenant
to fulfill their obligation gives him the right, must be cancelled in the light of pvt.
under 1191, to rescind "the right of [the respondent's so-called breach seems to
Alviars] to repurchase" the realties. The overlook petitioner's demeanor who, instead
power to rescind obligations is implied in of immediately filing the case precisely to
reciprocal ones, in case one of the obligors rescind the instrument bec. of non-
should not comply w/ what is incumbent compliance, allowed pvt. resp. to effect
upon him. xxx" (Art. 1191.) The cited law is numerous payments posterior to the grace
not applicable in this case. Although the period provided in the contract. This apathy
parties are each obligor and obligee of the of petitioners who even permitted pvt. resp.
other, their corresponding obligation can to take the initiative in filing the suit for
hardly be called reciprocal. In reciprocal specific performance against them, is akin to
obligations, the obligation of one is a waiver or abondonment of the right to
resolutory condition of the obligation of the rescind normally conferred by Art. 1191,
other, the non-fulfillment of w/c entitles the NCC.
other party to rescind the contract. In the xxx
case at bar, there are 2 separate and distinct Indeed, the right to rescind is not
obligations, each independent of the other. absolute and will not be granted where there
The obligation of Songcuan to reconvey the had been substantial compliance by partial
property is not dependent on the obigation payments. By and large, petitioner's
of the Alviars to lease the premises to the actuation is susceptible of but one
former. The obligationof the Alviars is not contruction-- that they are now estopped
an essential part of the contract. This is from reneging from their commitment on
evident in the wordings of the "P.S. account of acceptance of benefits arising
(Additional conditions)," itself w/c states from overdue accounts of pvt. resp.
that "in the event (the Alviars) exercised the
right of repurchase xxx and becomes the BINALBAGAN V. CA [219 SCRA 777] -
owner and possessor of the premises, they A party to a contract cannot demand
shall xxx be obliged to give (Songcuan) the performance of the other party's pbligations
right of lease and are xxx obliged to execute unless he is in a position to comply w/ his
a lease contract xxx." In other words, the own obligations. Similarly, the right to
obligation of the Alviars to lease to Songcuan rescind a contract can be demanded only if a
the subject premises arises only after the party thereto is ready, willing and able to
latter had reconveyed the realties to them. comply w/ his own obligations thereunder.
RAMOS V. CA [179 SCRA 719] - The VERMEN V. CA [ 224 SCRA 549] - In

right to rescind a contract may be waived. reciprocal obligations, the performance of
In the case at bar, the remedy provided is one is conditioned on the simultaneous
not rescission under the NCC but that set fulfillment of the other obligation. xxx
forth in the rules and regulations for the Generally, rescission of a contract
Makati Stock Exchange. will not be permitted for a slight or casual
breach but only for such substantial and
fundamental breach as would defeat the very
PRESBITERO V. CA [217 SCRA 372] - object of the parties in executing the
Rescission of a contract will not be agreeement.
________________________________________________________________________
2. The interruption of prescription by the
judicial demand of one creditor upon a
PRUDENCE REALTY V. CA [231 SCRA debtor, does not benefit the other creditors
379] - Habana seeks rescission of the nor interrupt the prescription as to other
compromise agreement under Art. 1191. debtors. On the same principle, a partial
However, this provision applies only to payment or acknowledgement made by one
reciprocal obligations in general and not to of several joint debtors does not stop the
obligations arising from a judicial running of the statute of limitations as to the
compromise xxx. Thus: Judgment upon others;
agreement of the parties is more than a mere
contract binding upon them; having the 3. The vices of each obligation arising from
sanction of the court and entered as its the personal defect of a particular debtor or
determination of the controversy it has the creditor does not affect the obligation or
force and effect of any other judgment. rights of the others;
 Article 1170. Supra. 4. The insolvency of a debtor does not

increase the responsibility of his co-debtors,
nor does it authorize a creditor to demand
anything from his co-creditors;
V
5. In the joint divisible obligation, the
A. Joint and Solidary Obligations defense of res judicata is not extended from
one debtor to another.
Joint Obligation.-- A joint obligation is
one in w/c each of the debtors is liable only
for a proportionate part of the debt or each
creditor is entitled only to a proportionate Art. 1208. If from the law, or
part of the credit. the nature or the wording of the
obligations to which the preceding
In joint obligations, there are as article refers the contrary does not
many obligations as there are debtors appear, the credit or debt shall be
multiplied by the number of creditors. presumed to be divided into as many
There are three kinds of joint equal shares as there are creditors or
obligations: (1) Active joint where the debtors, the credits or debts being
obligation is joint on the creditor's side; (2) considered distinct from one another,
Passive joint where the obligation is joint subject to the Rules of Court governing
on the debtor's side; and (3) Multiple the multiplicity of suits.
Joint where there are multiple parties on
Art. 1209. If the division is
each side of a joint obligation.
impossible, the right of the creditors
may be prejudiced only by their
** The joint obligation has been variously collective acts, and the debt can be
termed mancomunada or mancomunada enforced only by proceeding against all
simple or pro rata. The phrase "We promise the debtors. If one of the latter should be
to pay," used by 2 or more signers, creates a insolvent, the other shall not be liable
pro rata liability. Words such as: for his share.
proportionately; separately also indicate
joint liability.
Art. 1210. The indivisibility of
an obligation does not necessarily give
Effects of Joint Liability:
rise to solidarity. Nor does solidarity of
itself imply indivisibility.
1. The demand by one creditor upon one
debtor, produces the effects of default only
w/ respect to the creditor who demanded Distinguished from Solidary
and the debtor on whom the demand was Obligations
made, but not w/ respect to the others;
________________________________________________________________________
Art. 1224. A joint indivisible debtors in one and the same obligation
obligation gives rise to indemnity for does not imply that each one of the
damages from the time anyone of former has a right to demand, or that
the debtors does not comply with his each one of the latter is bound to render,
entire compliance with the prestation.
undertaking. The debtors who may There is solidary liability only when the
have been ready to fulfill their obligation expressly so states, or when
promises shall not contribute to the the law or the nature of the obligation
indemnity beyond the requires solidarity.
corresponding portion of the price
of the thing or of the value of the
service in which the obligation **When is an obligation w/ several
consists. parties on either side Joint or
Solidary? The presumption is that an
obligation is joint bec. a joint obligation is
Solidary obligations less onerous that a solidary one.
There is solidary obligation only in three
A solidary obligation is one in w/c the debtor cases: (1) when the obligation expressly so
is liable for the entire obligation or each states; or (2) when the law or the (3) nature
creditor is entitled to demand the whole of the obligation requires solidarity.
obligation. There is only one obligation is a
solidary obligation. Characteristics of Active Solidarity:
There are three kinds of solidarity
according to the parties bound: (1) 1. Since it is a reciprocal agency, the death of
Active solidary where there are several a solidary creditor does not transmit the
creditors w/ one debtor in a solidary solidarity to each of his heirs but to all of
obligation; (2) Passive solidarity where them taken together. (IV Tolentino);
there is one creditor w/ several debtors
solidary bound; (3) Mixed Solidarity 2. Each creditor represents others in the act
where there are several creditors and several of requiring payment, and in all other acts
debtors in a solidary obligation. w/c tend to secure the credit or make it more
advantageous. Hence, if he receives only a
Solidary obligations may also be referred to partial payment, he must divide it among the
as mancomunada solidaria or joint and other creditors. He can interrupt the period
several or in solidum. It has also been held of prescription or render the debtor in
that the terms "juntos o separadamente" in a default, for the benefit of all other creditors;
promissory note creates a solidary
responsibility; that where there are no words 3. A credit once paid is shared equally
used to indicate the character of a liability, among the creditors unless a different
the phrase "I promise to pay," followed by intention appears;
the signatures of 2 or more persons, gives
rise to an individual or solidary 4. Debtor may pay any of the creditors but if
responsibility. The words "individually and any demand, judicial or extrajudicial is made
collectively" also create a solidary liability. on him, he must pay only to one demanding
So does an agreeement to be "individually payment (Art. 1214);
liabile" or "individually and jointly liable."
5. One creditor does not represent the
Active Solidarity others in such acts as novation (even if the
credit becomes more advantageous),
Art. 1211. Solidarity may exist compensation and remission. In these
although the creditors and the debtors cases, even if the debtor is released, the
may not be bound in the same manner other creditors can still enforce their rights
and by the same periods and conditions.
against the creditor who made the novation,
compensation or remission;
Art. 1207. The concurrence of
two or more creditors or of two or more
________________________________________________________________________
6. Each creditor may renounce his right ILLUSTRATION OF PASSIVE
even against the will of the debtor, and the SOLIDARITY:
latter need not thereafter pay the obligation
to the former. X and Y are the solidary debtors of Z
in the amount of P10,000. There is here only
ILLUSTRATION OF ACTIVE one debt of X and Y in the amount of
SOLIDARITY: X is liable to Y and Z, P10,000. Z may demand from either X or Y,
solidary creditors in the amount of P10,000. or both of them simultaneously, the whole
X may pay either Y or Z (Art. 1214). SO long obligation. (Art. 1216) Payment by X (or Y)
as the entire debt is not paid, Y and Z can extinguishes the obligation but X (or Y) may
demand payment from X (Art. 1207). If Y (or claim from Y (or X) the share which
Z) received payment, he is liable to Z (or Y) corresponds to him depending upon the
for the latter’s share of the credit. agreement between them. (Art. 1217).
Art. 1216. The creditor may proceed

Passive Solidarity: against any one of the solidary debtors or
some or all of them simultaneously. The
CHARACTERISTICS: demand made against one of them shall not
be an obstacle to those which may
1. Each debtor may be required to pay the subsequently be directed against the others,
entire obligation but after payment, he can so long as the debt has not been fully
recover from the co-debtors their respective collected.
shares (this is something similar to
subrogation); CASES:
2. Interruption of prescription as to one PNB V. INDEPENDENT PLANTERS

debtor affects all the others; but the [122 SCRA 113] - If one of the alleged
renunciation by one debtor of prescription solidary debtos dies during the pendency of
already had does not prejudice the others, the collection case, the court where said case
bec. the extinguishment of the obligation by is pending retains jurisdiction to continue
prescription extinguishes also the mutual hearing the charge as against the surviving
representation among the solidary debtors. defendants.-- It is crytal clear that Art. 1216
is the applicable provision in this matter.
3. The debtor who is required to pay may set Said provision gives the creditor the right to
up by way of compensation his own claim proceed against anyone of the solidary
against the creditor, in this case, the effect is debtors or some or all of them
the same as that of payment; simultaneously. The choice is undoubtedly
left to the solidary creditor to determine
4. The total remission of the debt in favor of against whome he will enforce collection. In
a debtor releases all the debtors; but when case of the death of the solidary debtors, he
this remission affects only the share of one (the creditor) may, if he so chooses, proceed
debtor, the other debtors are still liable for against the surviving solidary debtors w/o
the balance of the obligation. necessity of filing a claim in the estate of the
deceased debtors. It is not mandatory for
5. All the debtors are liable for the loss of him to have the case dismissed against the
the thing due, even if such loss is caused by surviving debtors and file its claim in the
the fault of only one of them, or by fortuitous estate of the deceased solidary debtor.
event after one of the debtors has incurred in Rules of Procedure cannot prevail
delay; over substantive law.-- If Sec. 6, Rule 86,
ROC were applied literally, Art. 1216 would,
6. The interests due by reason of the delay in effect, be repealed since under the ROC,
of one of the debtors are borne by all of petitioner has no choice but to proceed
them. against the estate of Manuel Barredo only.
Obviously, this provision diminishes the
Bank's right under the NCC to proceed
against any one, some or all of the solidary
________________________________________________________________________
debtors. Such a construction is not
sanctioned by the principle xxx that a
substantive law cannot be amended by a Effect of Remission.-- Problem:
procedural law. Otherwise stated, Sec. 6 of Solidary debtors W, X, Y & Z are indebted to
Rule 86 cannot be made to prevail over Art. A for P12,000. A remits the share of Y
1216, the former being merely procedural, (P3,000.)
while the latter, substantive.
Q: Can Y be sued?
A: Yes, for the P9,000 (P12,000 less
OUANO V. ALEONAR [202 SCRA 619] P3,000 share of Y.)
- The creditor may proceed against any one
of the solidary debtor or some or all of them Q: Supposing X is insolvent?
simultaneously.-- If that were to happen, A: Y can still be made to contribute.
petitioner has only itself to blame. It Remission will benefit Y only in so far as his
allowed the period for appeal to lapse w/o share is concerned. His liability in case of
appealing. Art. 1216 provides that "[T]he insolvency of one co-creditor is not affected.
creditor may proceed against any one of the
solidary debor or some or all of them Q: Can A demand the P9,000 from
simultaneously." Thus IPI, as solidary Y.
creditor, has the right to enforce the trial A: Yes. But he can recover the same
court's decision against petitioner OASI. from W, X & Z.
Art. 1217. Payment made by

one of the solidary debtors extinguishes Art. 1220. The remission of the
the obligation. If two or more solidary whole obligation, obtained by one of the
debtors offer to pay, the creditor may solidary debtors, does not entitle him to
choose which offer to accept. reimbursement from his co-debtors.
He who made the
payment may claim from his co-debtors
only the share which corresponds to Art. 1221. If the thing has been
each, with the interest for the payment lost or if the prestation has become
already made. If the payment is made impossible without the fault of the
before the debt is due, no interest for the solidary debtors, the obligation shall be
intervening period may be demanded. extinguished.
When one of the solidary If there was fault on the part of
debtors cannot, because of his any one of them, all shall be responsible
insolvency, reimburse his share to the to the creditor, for the price and the
debtor paying the obligation, such share payment of damages and interest,
shall be borne by all his co-debtors, in without prejudice to their action against
proportion to the debt of each. the guilty or negligent debtor.
If through a fortuitous event,
Art. 1218. Payment by a the thing is lost or the performance has
solidary debtor shall not entitle become impossible after one of the
him to reimbursement from his solidary debtors has incurred in delay
co-debtors if such payment is through the judicial or extrajudicial
made after the obligation has demand upon him by the creditor, the
prescribed or become illegal. provisions of the preceding paragraph
shall apply.
Art. 1219. The remission made Art. 1895. If solidarity has

by the creditor of the share been agreed upon, each of the agents is
which affects one of the responsible for the non-fulfillment of the
solidary debtors does not agency, and for the fault or negligence of
release the latter from his his fellow agents, except in the latter
responsibility towards the co- case when the fellow agents acted
debtors, in case the debt has beyond the scope of their authority.
been totally paid by anyone of
them before the remission was
effected.
________________________________________________________________________
Art. 1222. A solidary debtor without prejudice to the provisions of
may, in actions filed by the creditor, article 1219.
avail himself of all defenses which are The creditor who may have
derived from the nature of the obligation executed any of these acts, as well as he
and of those which are personal to him, who collects the debt, shall be liable to
or pertain to his own share. With respect the others for the share in the obligation
to those which personally belong to the corresponding to them.
others, he may avail himself thereof only
as regards that part of the debt for which Art. 1219. The remission made
the latter are responsible. by the creditor of the share which affects
one of the solidary debtors does not
Three Defenses in Passive Solidarity: release the latter from his responsibility
1. Those derived from the nature of the towards the co-debtors, in case the debt
obligation is a total defense, e.g., had been totally paid by anyone of them
before the remission was effected.
prescription, illegality of obligation.
2. Those defenses personal to the debtor-
MIXED SOLIDARITY- Solidarity on
defendant, e.g., insanity. If it involves
the part of creditors and debtors, where each
vitiation of consent, total defense. If it
one of the debtors is liable to render and
involves a special term or a condition, a
each one of the creditors has a right to
partial defense.
demand entire compliance with the
3. Those defenses personal to other debtors,
obligation.
e.g., partial defense, is a defense as to the
share corresponding to other debtors.)
ILLUSTRATION OF MIXED
SOLIDARITY:
CASE:
X and Y are solidarily liable to Z and
D, solidary creditors, in the amount of
UNIVERSAL MOTORS V. CA [205 S
P10,000. Here, Z or D can demand from
448] - When the obligation of the other
either X or Y the payment of the entire
solidary debtors is so dependent on that of
obligation.
their co-solidary debtor, the release of the
one who appealed, provided it be not on
grounds personal to such appealing private SOLIDARITY THROUGH SOURCE OF
resp. operates as well as to the others who OBLIGATION:
did not appeal. It is for this reason, that a
decision or judgment in favor of the private When the law requires solidarity.--
resp. who appealed can be invoked as res The liability of joint tortfeasors, w/c include
judicata by the other private respondents. all persons who commmand, instigate,
It is obvious that the resp. court promote, encourage, advise, countencance,
committed no error in ruling that its cooperate in, aid or abet the commission of a
decision inures to the benefit of all the tort, or who approve of it, after it is done, if
private resps. regardless of the fact that only done for their benefit.
one appealed. It is erroneous to rule that the
decision of the trial court could be reversed Solidarity from Nature of
as to the appealing prvate resp. and continue Obligations.-- Liability may arise from the
in force against the other pvt. resps. The provisions of articles 19 to 22 of the NCC. If
latter could not remain bound after the 2 or more persons acting jointly become
former had been released; although the liabile under these provisions, their liability
other pvt. resps had not joined in the appeal, should be solidary bec. of the nature of the
the decision rendered by the resp. court obligation. xxx The acts giving rise to
inured to their benefit. liability under these articles have a common
element-- they are morally wrong. A moral
Art. 1215. Novation,
compensation, confusion or remission of wrong cannot be divided into parts; hence,
the debt, made by any of the solidary the liability for it must be solidary.
creditors or with any of the solidary
debtors, shall extinguish the obligation, CASES:
________________________________________________________________________
RONQUILLO V. CA [132 S 274] - can be directly sued by a 3rd party-- this will
Clearly then, by the express term of the result in a violation of the principles
compromise agreement and the decision underlying solidary obligations and
based upon it, the defendants obligated insurance contracts.
themselves to pay their obligation
"individually and jointly." The term RCBC V. CA [178 S 739] - Where an
"individually" has the same meaning as obligation expressly states a solidary liability
"collectively," "separately," "distinctively," the concurrence of 2 or more creditors or 2
"respectively" or "severally." An agreement or more debtors in one and the same
to be "individually liable" undoubtedly obligation implies that each of of the former
creates a several obligation, and a "several has a right to demand, or that each one of
obligation" is one by w/c one individual the latter is bound to render, entire
binds himself to perform the whold compliance w/ the prestation (Art. 1207.)
obligation. The creditor may proceed against any one of
The phrase juntos or separadamente the solidary debtors or some or all of them
used in the promissory note is an express simultaneously.
statement making each of the persons who
signed it individually liable for the payment
of the full amount of the obligation QUISIMBING V. CA [189 S 325] -
contained therein. In the absence of a Joint obligation distinguished from solidary
finding of facts that the defendants made obligations; Concept of active solidarity--
themselves individually liable for the debts Distinguing it from the joint obligation,
incurred they are each liable only for 1/2 of Tolentino makes the ff. observation: A joint
said amount. The obligation in the case at obligation is one in w/c each of the debtors
bar being described as "individually and is liable only for a proportionate part of the
jointly," the same is therefore enforceable debt, and each creditor is entitled only to a
against one of the numerous obligors. proportionate part of the credit. A solidary
obligation is one in w/c each debtor is liable
for the entire obligation, and each creditor is
MALAYAN INSURANCE V. CA [165 S entitled to demand the whole obligation.
536] - The direct liability of the insurer Hence, in the former, each creditor can
under indemnity contracts against third- recover only his share of the obligation, and
party liability does not mean that the insurer each debtor can be made to pay only his
can be held solidarily liable with the insured part; whereas, in the latter, each creditor
and/ or the other parties found at fault.-- may enforce the entire obligation, and each
While it is true that where the insurance debor may be obliged to pay it in full.
contract provide for indemnity against The same work describes the
liability to 3rd persons, such 3rd persons can concept of active solidarity thus: The
directly sue the insurer, however, the direct essence of active solidarity consists in the
liability of the insurer under the indemnity authority of each creditor to claim and
contracts against third party liab. does not enforce the rights of all, w/ the resulting
mean that the insurer can be held solidarily obligation of paying every one what belongs
liable w/ the insured and/ or the other to him; there is no merger, much less a
parties found at fault. The liab. of the renunciation of rights, but only mutual
insurer is based on contract; that of the restitution.
insured is based on tort.
In the case at bar, petitioner as
insurer of Sio Choy, is liable to respondent REPUBLIC PLANTERS BANK [216 S
Vallejos, but it cannot, as incorrectly held by 738] - An instrument w/c begins w/ "I,"
the trial court, be made "solidarily" liable w/ "WE" or "Either of us" promise to pay, when
the 2 principal tortfeasors, namely signed by two or more persons, makes them
respondents Sio Choy and San Leon Rice solidarily liable. The fact that the singular
Mill, Inc. For if petitioner-insurer were pronoun is used indicates that the promise is
solidarily liable w/ said 2 respondents by individual as to each other; meaning that
reason of the indemnity contract, against each of the co-signers is deemed to have
3rd party liaibility-- under w/c an insurer
________________________________________________________________________
made an independent singular promise to
pay the notes in full.
In the case at bar, the solidary Cases:
liability of private resp. F. Canlas is made 1. Debtor upon whom demand was
clearer and certain, w/o reason for made pays to a creditor other than the one
ambiguity, by the presence of the phrase who made the demand in violation of Art.
"joint and several" as describing the 1214.-- This is considered payment to a
unconditional promise to pay to the order of third person (Art. 1241, par. 2) and the
Republic Planters Bank. xxx debtor can still be made to pay the debt. The
only concession given to the debtor is that he
CERNA V. CA [220 SCRA 517] - Only is allowed to deduct the share of the
Delgado singed the p/n and accordinly, he receiving creditor from the total amount due
was the only one bound by the contract of even if he paid the entire amount due to that
loan. Nowhere did it appear in the p/n that creditor.
petitioner was a co-debtor. The law is clear
that "(c)ontracts take effect only between the 2. Creditor A makes demand on
parties xxx" But by some stretch of the debtor Y. Does it mean that he cannot pay
imagination, petitioner was held solidarily the share pertaining to creditor B?
liable for the debt allegedly bec. he was a co- According to commentators he can. But this
mortgagor of the principal debtor, Delgado. is dangerous bec. there may already be an
This ignores the basic precept that "(t)here is agreement on the part of the creditors.
solidary liability only when the obligation
expressly so states, or when the law or the 3. There are three creditors -- A, B
nature of the obligation requires solidarity. & C and there are three debtors -- X, Y & Z.
A makes a demand on Y. X pays B. This is
Art. 1212. Each one of the not covered by Art. 1214.
solidary creditors may do
whatever may be useful to the
others, but not anything which Art. 1215. Novation,
may be prejudicial to the latter. compensation, confusion or remission of
the debt, made by any of the solidary
***There is an apparent conflict bet. Art. creditors or with any of the solidary
1212 and 1215. Art. 1212 states that the debtors, shall extinguish the obligation,
agency extends only to things w/c will without prejudice to the provisions of
benefit all co-creditors. But not anything article 1219.
w/c is prejudicical to the latter. In Art. The creditor who may have
1215, he can do an acts prejudicial to the executed any of these acts, as well as he
who collects the debt, shall be liable to
other creditors, like remission for instance. the others for the share in the obligation
corresponding to them.
Art. 1213. A solidary creditor Art. 1219. The remission made
cannot assign his rights without the by the creditor of the share which affects
consent of the others. one of the solidary debtors does not
release the latter from his responsibility
Art. 1214. The debtor may pay towards the co-debtors, in case the debt
any one of the solidary had been totally paid by anyone of them
creditors; but if any demand, before the remission was effected.
judicial or extrajudicial, has
been made by one of them, Art. 1915. If two or more
payment should be made to persons have appointed an agent for a
him. common transaction or undertaking,
they shall be solidarily liable to the agent
General Rule.-- A debtor may pay any of for all the consequences of the agency.
the solidary creditors.
Exception.-- If demand is made by one **Principals are always liable
creditor upon the debtor, in w/c case the solidarily; Agents are not liable
latter must pay the demanding creditor only.
________________________________________________________________________
solidarily unless expressly such useful improvements or expenses
stipulated. for mere pleasure as he may deem
proper, provided he does not alter its
 ARTICLE 1189. When the form or substance; but he shall have no
right to be indemnified therefor. He
conditions have been imposed with may, however, remove such
the intention of suspending the improvements, should it be possible to
efficacy of an obligation to give, the do so without damage to the property.
following rules shall be observed in
case of the improvement, loss or
deterioration of the thing during the VI
pendency of the condition.
(1) If the thing is lost without the  JOINT AND SOLIDARY
fault of the debtor, the obligation shall be OBLIGATIONS. Supra.
extinguished;
(2) If the thing is lost through the
fault of the debtor, he shall be VII
obliged to pay damages; it is  Article 1179. Every obligation
understood that the thing is lost whose performance does not depend
when it perishes, or goes out of upon a future or uncertain event, or
commerce, or disappears in such a upon a past event unknown to the
way that its existence is unknown or parties, is demandable at once.
it cannot be recovered; Every obligation which contains a
(3) When the thing deteriorates resolutory condition shall also be
without the fault of the debtor, the demandable, without prejudice to
impairment is to be borne by the the effects of the happening of the
creditor; event.
(4) If it deteriorates through the
fault of the debtor, the creditor may
choose between the rescission of the PAY V. PALANCA [57 SCRA 618] -
obligation and its fulfillment, with From the manner in w/c the p/n was
indeminity for damages in either executed, it would appear that petitioner was
case: hopeful that the satisfaction of his credit
(5) If the thing is improved by its could be realized either through the debtor
nature, or by time, the improvement sued receiving cash payment from the estate
shall inure to the benefit of the of the late Carlos Palanca presumptively as
creditor; one of the heirs, or, as expressed therein,
(6) If it is improved at the expense "upon demand." There is nothing in the
of the debtor, he shall have no other record that would indicate whether or not
right than that granted to the the first alternative was fulfilled. What is
usufructuary. undeniable is that on 8/26/67, more than 15
yrs. after the execution of the p/n on
Requisites in order for Art. 1189 to 1/30/52, this petition was filed. The defense
apply-- interposed was prescription. Its merit is
1. There is loss, deterioration or rather obvious. Art. 1179, par. 1 says so.
delay The obligation being due and
2. There is an obligation to deliver a demandable, it would appear that the filing
determinate thing (on the part of the debtor) of the suit after 15 yrs. was much too late.
3. There is loss, deterioration or
improvement before the happening of the  Article 1180. When the debtor
condition. binds himself to pay when his means
4. The condition happens. permit him to do so, the obligation
shall be deemed to be one with a
Rights of a usufructuary period, subject to the provisions of
article 1197.
Art. 579. The usufructuary may
make on the property held in usufruct CASES:
________________________________________________________________________
LIM V. PEOPLE [133 SCRA 333] - It is
CHAVEZ V. GONZALES [32 SCRA clear in the agreement that the proceeds of
547] - Where obligation does not fix a the sale of the tobacco should be turned over
period; When fixing a period is mere to the complainant as soon as the same was
formality.-- Where the def. virtually sold, or, that the obligation was immediately
admitted non-performance by returning the demandable as soon as the tobacco was
typewriter he was obliged to repair in a non- disposed of. Hence, Art. 1197 of the NCC,
working condition, w/ essential parts, w/c provides that the courts may fix the
missing, he cannot invoke Art. 1197 of the duration of the obligation if it does not fix a
NCC. The time for compliance having period, does not apply.
evidently expired, and there being a breach
of contract by non-performance, it was
academic for the pltff. to have first ARANETA, INC. V. PHIL. SUGAR
petitioned the court fo fix a period for the ESTATES [20 SCRA 330] - xxx Art.
performance of the contract before filing his 1197 involves a two- step process. (1) The
complaint in this case. The fixing of a period Court must first determine that "the
would thus be a mere formality and would obligation does not fix a period." (or that the
serve no purpose than to delay. period is made to depend upon the will of
the debtor)," but from the nature and the
circumstances it can be inferred that a
ENCARNACION V. BALDOMAR [77 P period was intended." (2) This preliminary
470] - The continuance and fulfillment of point settled, the Court must then proceed to
the contract of lease cannot be made to the second step, and decide what period was
depend solely and exclusively upon the free "probably contemplated by the parties." So
and uncontrolled choice of the lessees bet. that, ultimately, the Court can not fix a
continuing paying the rentals or not, period merely bec. in its opinion it is or
completely depriving the owner of all say in should be reasonable, but must set the time
the matter. For if this were allowed, so long that the parties are shown to have intended.
as defs. elected to continue the lease by xxx
continuing the payment of the rentals the
owner would never be able to discontinue it;
conversely, although the owner should MILLARE V. HERNANDO [151 SCRA
desire the lease to continue, the lessees 484] - Par. 1 of Art. 1197 is clearly
could effectively thwart his purpose if they inapplicable, since the Contract of Lease did
should prefer to terminate the contract by in fact fix an original period of 5 yrs., w/c
the simple expedient of stopping payment of had expired. It is also clear from par. 13 of
the rentals. This, of course, is prohibited by the contract that the parties reserved to
art. 1256, NCC. themselves the faculty of agreeing upon the
period of the renewal contract. The 2nd par.
of Art. 1197 is equally inapplicable since the
duration of the renewal period was not left
ELEIZEUI V. LAWN TENNIS CLUB [2 to the will of the lessee alone, but rather to
P309] - The term of a lease whose the will of both the lessor and the lessee.
termination is expressly left to the will of the Most importantly, Art. 1197 applies only
lessee must be fixed by the courts according where a contract of lease clearly exists.
to the character and conditions of the Here, the contract was not renewed at all,
mutual undertakings, in an action brought there was in fact no contract at all the period
for that purpose xxx. of w/c could have been fixed.
 Aricle 1181. In conditional

PHILBANKING V. LUI SHE [21 SCRA obligations, the acquisition of rights,
53] - A lease to an alien for a reasonable as well as the extinguishment or loss
period is valid. of those already acquired, shall
depend upon the happening of the
event which constitutes the
condition.
________________________________________________________________________
obligation is conditional, and it shall be
*** A condition is a future and uncertain regulated by the rules of the preceding
event upon w/c an obligation or provision Section.
is made to depend. Futurity and
uncertainty must concur as characteristics Kinds of Conditional Obligations
of the event.
*** A past thing can never be a condition. A (i) Condition precedent
condition is always future and uncertain.
Art. 1187. The effects of a
conditional obligation to give, once the
Past event unknown to the condition has been fulfilled, shall
parties.-- It is really the knowledge of retroact to the day of the constitution of
the event w/c constitutes the future. It the obligation. Nevertheless, when the
is the knowledge w/c is future and obligation imposes reciprocal
prestations upon the parties, the fruits
uncertain. For example, when I say " I and interests during the pendency of the
will treat you for lunch if you get the condition shall be deemed to have been
highest score in the Civil Law Final mutually compensated. If the obligation
Exams (on the assumption that our is unilateral, the debtor shall
professor has already finished checking appropriate the fruits and interests
received, unless from the nature and
the papers.)" Here, the event (getting circumstances of the obligation it should
the highest score) is already a past event, be inferred that the intention of the
yet the knowledge is future and person constituting the same was
uncertain. different.
In obligations to do and not to
do, the courts shall determine, in each
Condition compared to a term.-- case, the retroactive effect of he
As to element of futurity, condition and condition that has been complied with.
element are the same. They differ in the
aspect of certainty-- a condition is ***This article refers to suspensive
uncertain whereas a term is certain. condition. This article sets forth the rule of
retroactivity in an obligation to give. This
rule is logical but impractical. Many modern
Conditions can either be: Civil Codes have discarded it.
1. Suspensive condition No Retroactivity as to the Fruits.--
(condition precedent) wherein the Notice that there is no retroactivity with
happening of the event gives birth to an respect to the fruits. The fruits are deemed
obligation to cancel out each other. If only one of the
2. Resolutory condition thing produces fruits, there is no obligation
(condition subsequent) wherein the to deliver the fruits.
happening of the event will extinguish
the obligation. (ii) Condition subsequent
Art. 1190. When the conditions

Distinguished from term or period have for their purpose the
extinguishment of an obligation to give,
Art. 1193. Obligations for the parties, upon the fulfillment of said
whose fulfillment a day certain has been conditions, shall return to each other
fixed, shall be demandable only when what they have received.
that day comes. In case of the loss,
Obligations with a resolutory deterioration or improvement of the
period take effect at once, but terminate thing, the provisions which, with respect
upon arrival of the day certain. to the debtor, are laid down in the
A day certain is understood to preceding article shall be applied to the
be that which must necessarily come, party who is bound to return.
although it may not be known when. As for obligations to do and not
If the uncertainty consists in to do, the provisions of the second
whether the day will come or not, the paragraph of article 1187 shall be
________________________________________________________________________
observed as regards the effect of the partly on either chance or the will of a third
extinguishment of the obligation. person.
Art. 1187. xxx In obligations to Q: What if the condition is suspensive,
do and not to do, the courts shall
potestative and depends solely on the will of
determine, in each case, the retroactive
effect of the condition that has been the creditor, is the conditional obligation
complied with. valid?
NOTE : Art. 1190 refers to resolutory A: Yes. In fact, the obligation is not even a
conditions. This is just the opposite of condition obligation. It is a pure obligation,
Art. 1189. binding at once.
Kinds of conditions CASE:
 Art. 1182. When the fulfillment of SMITH BELL V. SOTELO MATTI [44 P
the condition depends upon the sole 874] - Where the fulfillment of the
will of the debtor, the conditional condition does not depend on the will of the
obligation shall be void. If it obligor, but on that of a 3rd person who can,
depends upon chance or upon the in no way be compelled to carry it out, the
will of a third person, the obligation obligor's part of the contract is complied w/,
shall take effect in conformity with if he does all that is in his power, and it then
the provisions of this Code. becomes incumbent upon the other
contracting party to comply w/ the terms of
***We are talking here of a the contract.
suspensive condition.
Paras' outline on impossible
First sentence of Art. 1182.-- The condition conditions:
must be suspensive, potestative and depends
on the sole will of the debtor. E.g., "I 1. Positive suspensive condition to do an
promise to sell you my car for P1.00 impossible/ illegal thing-- The obligation is
whenever I like." void (Art. 1183, par. 1.)
2. A negative condition (not to do an
Q: Why does it make the obligation void? impossible thing)-- Just disregard the
condition (Art. 1183, par. 2.)
A: Bec. such an obligation lacks one of the 3. A condition not to do an illegal thing
essential elements of an obligation, the (negative)-- This is not expressly provided
vinculum juris, the binding force-- the for in the provision but is implied. The
means by w/c it is enforceable in court. In obligation is valid. E.g. "I will sell you a
this case, there is no binding force. There is piece of land provided you do not plant
no obligation. marijuana on it."
Art. 1186. The condition shall be

Potestative Condition is one w/c depends deemed fulfilled when the obligor
voluntarily prevents its fulfillment.
solely on the will of either one party. E.g., " I
will give you my plantation in Davao
This article refers to a suspensive
provided you reside in Davao permanently." condition.
Casual Condition is one where the Doctrine of Constructive Compliance.--

condition is made to depend upon a third There are three requisites in order that
person or upon chance. E.g., "I will give you this article may apply:
my land in Floridablanca if Mt. Pinatubo 1. Intent on the part of the obligor to
erupts this year." prevent fulfillment of the condition. The
intent does not have to be malicious.
Mixed Condition is one w/c depends 2. Actual prevention of compliance (by
the obligor)
partly upon the will of one of the parties and
________________________________________________________________________
Constructive compliance can have arises whereas the real right does not arise
application only if the condition is until actual delivery.
potestative. It can also apply to Mixed
condition as to that part w/c the obligor  Article 1537. The vendor is bound
should perform.
to deliver the thing sold and its
accessions and accessories in the
condition in which they were upon
CASE:
the perfection of the contract.
All the fruits shall pertain to the
TAYAG V. CA [219 SCRA 480] -
vendee from the day on which the
Insofar as the 3rd item of the contract is
contract was perfected.
concerned, xxx resp. court applied Art. 1186,
NCC on constructive fulfillment w/c
petitioners claim should not have been
appreciated bec. they are the obligees while VIII
the proviso in point speaks of the obligor.
But, petitioners must concede that in a  Article 1170. Supra.
reciprocal obligation like a contract of  Article 1167. Supra.
purchase, both parties are mutually obligors
and also obligees, and any of the contracting
parties may, upon non-fulfillment by the
other privy of his part of the prestation,
rescind the contract or seek fulfillment. In
short, it is puerile for petitioners to say that
they are the only obligees under the contract
since they are also bound as obligors to IX
respect the stipulation in permitting pvt.
resp. to assume the loan w/ the Phi. Alternative Obligations
Veterans Bank w/c petitioners impeded
when they paid the balance of said loan. As Art. 1199. A person
vendors, they are supposed to execute the alternatively bound by different prestations
final deed of sale upon full payment of the shall completely perform one of them.
balance as determined hereafter. The creditor cannot be
compelled to receive part of one and part of
 ARTICLE 1164. The creditor has a the other undertaking.
right to the fruits of the thing from
the time the obligation to deliver ***The characteristic of alternative
arises. However, he shall have no obligations is that, several objects being due,
real right over it until the same has the fulfillment of one is sufficient.
been delivered to him.
Art. 1200. The right of choice
belongs to the debtor, unless it
*** From the time the obligation arises, the has been expressly granted to
the creditor.
creditor has a personal right against the The debtor shall have no right
debtor as to the fruits. But he has no real to choose those prestations
right over them until actual delivery. Real which are impossible, unlawful
right is a right w/c is enforceable against the or which could not have been
whole world. He has only the personal right the object of the obligation.
against the debtor w/ regard to the
undelivered fruits. This is bec. of the Q: To whom does the right of choice belong?
principle Non nudis pactis, sed traditione, General rule: To the debtor (Art. 1200.)
dominia rerum transferentur." (It is not by Exception: When expressly granted to the
mere agreement, but by delivery, is creditor. There is a third possibility where
ownership transferred.) Personal right the choice may be made by a third person
arises from the time the obligation to deliver upon agreement of the parties.
________________________________________________________________________
Art. 1201. The choice shall Art. 1204. The creditor shall
produce no effect except from have a right to indemnity for damages
the time it has been when, through the fault of the debtor, all
communicated. the things which are alternatively the
object of the obligation have been lost,
Requirement of Communication of choice.-- or the compliance of the obligation has
If the choice belongs to the creditor, of become impossible.
course, he has to communicate his choice to
the debtor. The indemnity shall be fixed
Q: If the choice belongs to the debtor, why taking as a basis the value of the last
require communication before performance thing which disappeared, or that of
if the choice belongs to him anyway? the service which last became
A: To give the creditor an opportunity to impossible.
consent to the choice or impugn it. (Ong v. Damages other than the
Sempio-Dy, 46 P 592.) BUT how can the value of the last thing or service may also be
creditor impugn it if the choice belongs to awarded.
the debtor. The better reason would be to
give the creditor a chance to prepare for the d. If some things are lost
performance. through the debtor's fault,
the debtor can still choose
Articles 1202 to 1205 talk of the loss from those remaining.
of some of the prestations before
performance. e. If all are lost through
fortuitous event, the obligation is
1. If the choice is debtor's extinguished.
a. When only one f. If all prestations but one

prestation is left (whether or not the are lost through fortuitous
the rest of the prestations have been event, and the remaining
lost through fortuitous event or prestation was lost through
through the fault of the debtor), the the debtor's fault, the latter
debtor may perform the one that is is liable to indemnify the
left.-- Art. 1202. creditor for damages.
Art. 1202. The debtor shall lose g. If all but one are lost
the right of choice when among through the fault of the
the prestations whereby he is debor and the last one was
alternatively bound, only one is lost through fortuitous
practicable. event, the obligation is
extinguished.
b. If the choice is limited
through the creditor's own acts, the 2. Choice is the creditor's
debtor can ask for resolution plus
damages.-- Art. 1203 Art. 1205. When the choice has
been expressly given to the
Art. 1203. If through the creditor, the obligation shall
creditor's acts the debtor cannot make a cease to be alternative from the
choice according to the terms of the day when the selection has
obligation, the latter may rescind the been communicated to the
contract with damages. debtor.
c. If everything is lost Until then the responsibility of

through the debtor's fault, the latter the debtor shall be governed by the
following rules:
is liable to indemnify the creditor for
damages.-- Art. 1204. (1) If one of the things is lost
through a fortuitous event, he
shall perform the obligation by
________________________________________________________________________
delivering that which the render another in substitution, the
creditor should choose from obligation is called facultative.
among the remainder, or that The loss or deterioration of
which remains if only one the thing intended as a substitute, through
subsists;
the negligence of the obligor, does not
(2) If the loss of one of the
things occurs through the fault render him liable. But once the substitution
of the debtor, the creditor may has been made, the obligor is liable for the
claim any of those subsisting, loss of the substitute on account of his delay,
or the price of that which, negligence or fraud.
through the fault of the former,
has disappeared, with a right to Distinguished from Alternative.--
damages;
(3) If all the things are lost 1. As to contents of the obligation:
through the fault of the debtor,
In the alternative, there are various
the choice by the creditor shall
fall upon the price of any one of prestations all of w/c constitute parts of the
them, also with indemnity for obligation; while in facultative, only the
damages. principal prestation constitutes the
obligation, the accessory being only a means
The same rules shall be applied to facilitate payment.
to obligations to do or not to do
in case one, some or all of the 2. As to nullity: In alternative
prestations should become obligations, the nullity of one prestation
impossible.
does not invalidate the obligation, w/c is still
in force w/ respect to those w/c have no vice;
a. If one or some are lost through while in facultative, the nullity of the
fortuitous event, the creditor may choose principal prestation invalidates the
from those remaining.-- Art. 1205 (1), supra. obligation and the creditor cannot demand
the substitute even when this is valid.
b. If one or some are lost through
the debtor's fault, the creditor has choice 3. As to choice: In alternative, the
from the remainder or the value of the right to choose may be given to the creditor;
things lost plus damages.-- Art. 1205 (2), while in facultative, only the debtor can
supra. choose the substitute prestation.
c. If all are lost through the debtor's 4. As to effect of loss: In
fault, the choice of the creditor shall fall alternative, only the impossibility of all the
upon the price of any of them, w/ indemnity prestations due w/o fault of the debtor
for damages.-- Art. 1205 (3), supra. extinguishes the obligation; while in
facultative, the impossibility of the principal
d. If some are lost through the prestation is sufficient to extinguish the
creditor's fault, the creditor may choose obligation, even if the substitute is possible.
from the remainder.
NOTE: Facultative obligations always
e. If all are lost through fortuitous involve choice by the debtor.
event, the obligation is extinguished.
X
f. If all are lost through the
creditor's fault, the obligation is In Generic Obligations to Give: obligation is
extinguished. not extinguished if the thing is lost, the
genus of the thing cannot perish.
Exception: in case of a generic obligation
Facultative obligations whose object is a particular class or group
with specific or determinate qualities
Art. 1206. When only one prestation has (limited generic obligations)
been agreed upon, but the obligor may
________________________________________________________________________
Limited generic- something in between NAKPIL & SONS VS. CA [144 S
specific and generic thing. 596] - Requisites for exemption from
liability due to an "act of God."-- To
Example: "For P3,000, I promise to deliver exempt the obligor from liability under
to you one of my watches." This obligation Art. 1174, for a breach of an obligation
does not really fall under either Art. 1262 or due to an "act of God," the following
Art. 1263. But this obligation really falls must concur:
under Art. 1262. In this case, the obligation (a) the cause of the breach of the
may be extinguished by the loss of all the obligation must be independent of the
things through fortuitous event. will of the debtor;
(b) the event must be either
Art. 1262. An obligation which consists in the unforseeable or unavoidable;
delivery of a determinate thing shall be (c) the event must be such as to
extinguished if it should be lost or destroyed render it impossible for the debtor to
without the fault of the debtor, and before he has fulfill his obligation in a normal manner;
incurred in delay.
When by law or stipulation, the obligor
and
is liable even for fortuitous events, the loss of the (d) the debtor must be fee from any
thing does not extinguish the obligation, and he participation in, or aggravation of the
shall be responsible for damages. The same rule injury to the creditor.
applies when the nature of the obligation requires
the assumption of risk. **Some of the elements were present in
this case. What was absent was the last
Art. 1263. In an obligation to deliver a generic element.
thing, the loss or destruction of anything of the
same kind does not extinguish the obligation.
NAKPIL & SONS VS. CA [160 S
X 334] - "One who negligently creates a
dangerous condition cannot escape
 Article 1174. Except in cases liability for the natural and probable
expressly specified by law, or when consequences thereof, although the act
it otherwise declared by stipulation, of a third person, or an act of God for
or when the nature of the obligation w/c he is not responsible, intervenes to
requires the assumption of risk, no precipitate the loss." (citing Tucker v.
person shall be responsible for those Milan, 49 OG 4379, 4380.)
events which could not be foreseen,
or which ,though foreseen, were QUISIMBING VS. CA [189 S 605] -
inevitable. PAL's failure to take certain steps that a
certain passenger in hindsight believes
General Rule: The happening of a should have been taken is not the
fortuitous event exonerates the debtor negligence or misconduct w/c mingles
from liability. w/ force majeure as an active and
Exceptions: cooperative cause.-- A careful analysis
1. When the law so specifies.-- e.g., if of the record in relation to the
the debtor is already in delay (Art. 1165, memoranda and other pleadings of the
par. 3.) parties, convinces this Court of the
2. When the parties so agree correctness of the essential conclusion of
3. When the nature of the obligation both the trial and appellate courts that
requires the assumption of risk, e.g., an the evidence does indeed fail to prove
insurance contract. any want ot diligence on the part of PAL,
or that, more specifically, it had failed to
comply with applicable regulations, or
universally accepted and observed
CASES: procedures to preclude hijacking; and
that the particular acts singled out by
the petitioners as supposedly
demonstrative of negligence were, in the
________________________________________________________________________
light of the circumstances of the case, observe extraordinary diligence in
not in truth negligent acts "sufficient to transporting safely the passengers to
overcome the force majeure nature of their destination as warranted by law.
the armed robbery." The Court quite
agrees, too, w/ the Appellate Tribunal's NPC VS. CA [222 S 415] -
wry observation that PAL's failure to Petitioners cannot be heard to invoke
take certain steps that a passenger in the act of God or force majeure to escape
hindsight believes should have been liability for the loss or damage sustained
taken is not the negligence or by the pvt. respondents since they, the
misconduct w/c mingles w/ force petitioners, were guilty of negligence.
majeure as an active and cooperative The event then was not occasioned
cause." exclusively by an act of God or force
majeure; a human factor-- negligence or
BACHELOR EXPRESS VS. CA [188 imprudence-- had intervened. The
S 216] - The running amuck of the effect then of the force majeure in
passenger was the proximate cause of question may be deemed to have, even if
the incident as it triggered off a only partly, resulted from the
commotion and panic among the participation of man. Thus, the whole
passengers such that the passengers occurence was thereby humanized, as it
started running to the sole exit shoving were, and removed from the rules
each other resulting in the falling off the applicable to acts of God.
bus by passengers Beter and Rautraut
causing them fatal injuries w/c killed SIA VS. CA [222 S 24] - SBTC's
them. The sudden act of the passenger negligence aggravated the injury or
who stabbed another passenger in the damage to the petitioner w/c resulted
bus is w/in the context of force majeure. from the loss or injury or damage to the
However, in order that a common petitioner w/c resulted from the loss or
carrier may be absolved from liability in destruction of the stamp collection.
case of force majeure, it is not enough SBTC was aware of the floods of 1985
that the accident was caused by force and 1986; it also knew that the
majeure. The common carrier must still floodwaters inundated the room where
prove that it was not negligent in Safe Deposit Box No. 54 was located. In
causing the injuries resulting from such view thereof, it should have lost no time
accident. in notifying the petitioner in order that
Considering the factual findings of the box could have been oped to retrieve
the CA-- the bus driver did not the stamps, thus saving the same from
immediately stop the bus at the height of further deterioration and loss. In this
the commotion; the bus was speeding respect, it failed to exercise th
from a full stop; the victims fell from the reasonable care and prudence expected
bus dorr when it was opened or gave of a good father of a family, thereby
way while the bus was still running; the becoming a party to the aggravation of
conductor panicked and blew his whistle the injury or loss. Accordingly, the
after people had already fallen off the aforementioned fourth characteristic
bus; and the bus was not properly (the debtor must be fee from any
equipped w/ doors in accordance w/ participation in, or aggravation of the
law-- it is clear that petitioners have injury to the creditor) of a fortuitous
failed to overcome the presumption of event is absent. xxx
fault and negligence found in the law
governing common carriers.
The petitioner's argument that the NPC VS. CA [223 S 649] -
petitioners "are not insurers of their Petitioners have raised the same issues
passengers" deserves no merit in view of and defenses as in the 2 other decided
the failure of the petitioners to prove cases therein mentioned. Predictably
that the deaths of the 2 passengers were therefore, this petition must perforce be
exclusively due to force majeure and not dismissed bec. the losses and damages
to the failure of the petitioners to sustained by the private resp.'s had been
________________________________________________________________________
proximately caused by the negligence of delivery, unless there has been delay in
the petitioners, although the typhoon receiving it, or if the destruction was
w/c preceded the flooding could be caused by the poor quality of the
considered as a force majeure. material, provided this fact was
communicated in due time to the owner.
If the material is lost through a
EXCEPTIONS on non-liability for fortuitous event, the contract is
fortuitous events: extinguished.
Negotiorum Gestio Express agreement
Art. 2147. The officious manager shall Art. 1306. The contracting parties may
be liable for any fortuitous event: establish such stipulations, clauses,
(1) If he undertakes risky operations terms and conditions as they may deem
which the owner was not accustomed to embark convenient, provided they are not
upon; contrary to law, morals, good customs,
(2) If he has preferred his own interest public order, or public policy.
to that of the owner;
(3) If he fails to return the property or Aleatory Contract (ex. Insurance
business after demand by the owner; contracts)
(4) If he assumed the management in
bad faith. Art. 2010. By an aleatory contract, one
of the parties or both reciprocally bind
Solutio Indebiti themselves to give or to do something in
consideration of what the other shall
Art. 2159. Whoever in bad faith accepts give or do upon the happening of an
an undue payment, shall pay legal interest if event which is uncertain, or which is to
a sum of money is involved, or shall be liable occur at an indeterminate time.
for fruits received or which should have been
received if the thing produces fruits.  Article 1170. Supra.
He shall furthermore be answerable for
any loss or impairment of the thing from any
cause, and for damages to the person who
delivered the thing, until it is recovered.
Common Carrier
Art. 1763. A common carrier is

responsible for injuries suffered by a
passenger on account of the wilful acts or
negligence of other passengers or of
strangers, if the common carrier's employees
through the exercise of the diligence of a
good father of a family could have prevented
or stopped the act or omission.
Mora solvendi
Art. 1165. If the obligor delays, or has

promised to deliver the same thing to
two or more persons who do not have
the same interest, he shall be
responsible for any fortuitous event until
he has effected the delivery.
Mora accipiendi
Art. 1718. The contractor who has

undertaken to put only his work or skill,
cannot claim any compensation if the
work should be destroyed before its
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OBLIGATIONS & CONTRACTS 1

Zambales. Pablo. Gonzales

 ARTICLE 1235. When the  ARTICLE 1431. THROUGH

2. by representation or  ARTICLE 1956. No interest

1. Mora Solvendi -- delay in the

In common law, the degree of care Extraordinary diligence required

Two requisites of a Reciprocal Obligations: 1. Resolution is not predicated on economic

RAMOS V. CA [179 SCRA 719] - The VERMEN V. CA [ 224 SCRA 549] - In

 Article 1170. Supra. 4. The insolvency of a debtor does not

Art. 1216. The creditor may proceed

2. Interruption of prescription as to one PNB V. INDEPENDENT PLANTERS

Art. 1217. Payment made by

Art. 1219. The remission made Art. 1895. If solidarity has

 Aricle 1181. In conditional

Art. 1190. When the conditions

Kinds of conditions CASE:

Art. 1186. The condition shall be

Casual Condition is one where the Doctrine of Constructive Compliance.--

a. When only one f. If all prestations but one

c. If everything is lost Until then the responsibility of

Negotiorum Gestio Express agreement

Art. 1763. A common carrier is

Art. 1165. If the obligor delays, or has

Art. 1718. The contractor who has

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