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ObliCon Reviewer
ObliCon Reviewer
Fraud/dolo
3. Negligence/culpa
4 ELEMENTS OF OBLIGATION 4. Contrary to terms of obligation
1. ACTIVE SUBJECT (creditor/obligee) – whose obligation is
constituted 1. DEFAULT/MORA – delay
2. PASSIVE SUBJECT (debtor/obligor) – has duty to give, to do or not 3kinds
to do a. Mora solvendi – debtor’s delay to give (real ob.), to do
3. OBJECT/PRESTATION – subject matter (personal ob.)
4. JURIDICAL/LEGAL TIE (vinculum/efficient cause) – reason b. Mora accipiende – creditor’s delay to accept
c. Compensatio Morae – delay of both in reciprocal obligation
CIVIL OBLIGATION NATURAL OBLIGATION
derived from positive law derived from equity & justice CONCEPT OF DELAY
enforceable by court action not enforceable by court action General Rule: No demand, No delay
Exceptions:
5 SOURCES OF OBLIGATION 1. Law states
1. LAW 2. Obligation states
2. CONTRACTS 3. Time is the essence
3. QUASI-CONTRACTS – arise from lawful, voluntary acts; no one 4. Demand be useless if delay
shall be unjustly enriched... 5. Debtor guilty of delay
2Kinds
a. Solutio indebiti – something received (delivered on a mistake), EFFECTS OF DELAY
no right to demand it 1. Damages
b. Negotiorum gestio – voluntary mgt of property/affairs of 2. When to deliver determinate thing, STILL LIABLE in fortuitous
another w/o his knowledge/consent event.
4. QUASI-DELICT/TORTS/CULPA AQUILIANA – arise from 2. FRAUD/DOLO – conscious, deliberate, intentional evasion of
damage; fault/negligence fulfillment
5. CRIMES/ACTS/OMISSIONS punished by law – arise from civil 2Kinds
liability that is a consequence of a criminal offense a. Dolo causante/Causal fraud – fraud in obtaining consent;
consent is defective, contract is voidable. Remedy: annulment
DILIGENCE OF A GOOD FATHER OF A FAMILY b. Dolo incidente/Incidental fraud – fraud w/c vitiates consent.
- care need to be exercised by a debtor to deliver/give determinate Remedy: damages
thing
Exception: When law/stipulation of parties requires a differnt 3. NEGLIGENCE/CULPA – voluntary act/omission; no bad faith
standard of care (slight/extraordinary diligence). intended
3Kinds
When creditor is entitled to the fruits a. Culpa aquiliana/Civil negligence – quasi-delict/torts
Rule: The creditor has personal right (right to ask for delivery) from b. Culpa contractual/Contractual negligence – breach
the time the obligation to deliver arises. c. Culpa criminal/Criminal negligence – crime/delict
But NO real right (right enforceable against the whole world) until it
is delivered. 4. Contrary to the terms of obligation
6 MISCELLANEOUS RULES ON CONDITIONAL OBLIGATION 5 INSTANCES WHEN DEBTOR LOSES RIGHT TO USE “PERIOD”
1. Impossible conditions, contrary to law, shall ANNUL obligation. 1. Debtor is insolvent.
2. The condition not to do an impossible thing is considered not 2. Debtor attempts to abscond.
agreed upon. 3. Impairment of guarantees/securities.
3. The condition that happens in determinate time, EXTINGUISHES 4. Failure to furnish guarantees/securities promised.
obligation. 5. Violation of undertaking.
4. The condition that happens in INDETERMINATE time, obligation
only effective at arrival. 4. ALTERNATIVE OBLIGATION
5. The condition is fulfilled if DEBTOR prevents fulfillment. - w/ 2 or more prestations, only 1 is due.
6. The effect of conditional obligation, once fulfilled:
- to give: retroact to the day of constitution of obligation 5. FACULTATIVE OBLIGATION
- has reciprocal prestations: fruits & interests be mutually - w/ ONLY 1 prestation but can be substituted.
compensated
- has unilateral obligation: debtor shall give fruits & interests ALTERNATIVE prestations LOST w/ debtor’s fault
Creditor entitled to damages but needs ff requisites:
RULES in case of Loss, Improvement, or Deterioration of thing 1. Debtor can choose.
during the pendency of condition 2. All prestations lost/become impossible due to debtor’s fault.
1. LOST
a. w/ debtor’s fault – damages ALTERNATIVE OBLIGATION FACULTATIVE OBLIGATION
b. w/o debtor’s fault – extinguishes obligation several prestations due, giving one prestation due, but can be
one is sufficient subtituted
2. DETERIORATION right to choose (debtor) unless right to choose DEBTOR ONLY
a. w/ debtor’s fault - (1) cancel obligation & damages; or (2) fulfill granted to creditor
obligation w/ damages If 1 of the prestation is illegal, nullity of principal carries w/ it
b. w/o debtor’s fault – creditor suffer impairment others may be valid, obligation nullity of accessory/
remains substitute
3. IMPROVEMENT
loss/impossibility of ALL loss/impossibility of presta-tion
a. By nature/time – benefit to creditor
prestations due, w/o debtor’s due, w/o debtor’s fault,
b. at expense of debtor – debtor no right than that granted to
fault, extinguishes obligation extinguishes obligation
usufructuary (debtor no right to compensate amount for
improvement)
(3) SUMMARY OF RULES, OBLIGATIONS, & RIGHTS OF DEBTOR
IN ALTERNATIVE OBLIGATION
EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITION
1. If 1 of prestations lost through fortuitous event, shall still be
General Rule: The obligation becomes effective retroactively to the
perform by choosing (creditor) from the remainder.
day obligation was constituted.
2. If 1 of prestations lost through debtor’s fault, creditor may claim
Exceptions:
any of remainders w/ damages.
1. In reciprocal obligation, fruits & interests during pendency of
3. If ALL prestations lost through debtor’s fault, creditor choose price
condition shall compensate each other.
w/ damages.
2. In unilateral obligation, debtor gets fruits & interests unless there
is a contrary intent.
RULES on LOSS/DETERIORATION of the thing intended as
SUBSTITUTE in FACULTATIVE OBLIGATION
3 EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION
1. If there is a loss/deterioration of thing intended as substitute,
1. Extinguish obligation.
debtor is NOT liable if NOT HIS FAULT.
2. Both parties restore what they received plus fruits & interests.
But if substitution is already made, debtor is liable for loss of
3. The rule on L, D, or I will apply to person who has to return the
substitute when in DELAY, NEGLIGENCE, or FRAUD.
thing.
When one of debtors in reciprocal obligation does not comply w/
6. JOINT OBLIGATION
his obligation
- obligation is to be paid proportionately by debtors or to be
1. The right of injured party is (1) cancel contract & damages; or (2)
demanded proportionately by creditors
fulfill obligation & damages
7. SOLIDARY OBLIGATION
3 Kinds of Obligation (Accdng to PERSON OBLIGED)
- each one of debtors has right to render or each one of creditors
1. UNILATERAL – only 1 party obliged to comply
has right to demand the entire compliance w/ prestation
2. BILATERAL – both parties; performance not same time
3. RECIPROCAL – both parties; performance same time
MAXIMS & SYNONYMS
3. OBLIGATION W/ A PERIOD MAXIMS SYNONYMS
- demandability/extinguishment subject to the expiration of period JOINT Obligation “To each his own” proportionate
SOLIDARY Obligation “One for all, all for individually &
PERIOD – interval of time; either suspends demandability or one” collectively
produces extinguishment
(3) SOLIDARY OBLIGATION EXIST ONLY IF: *RULES
DAY CERTAIN – must come, not known when 1. Law states
2. Stipulation states
7 CASES CONSIDERED TO BE “OBLIGATION W/ A PERIOD” 3. Nature of obligation requires
1. Little by little
2. In partial payment 2 PRESUMPTIONS THAT OBLIGATION IS JOINT
3. Payable ASAP 1. The debts be divided as many shares as there are
4. When I can afford it debtors/creditors.
5. When I have the money 2. The debtors/creditors are distinct from one another.
6. When I am able to
7. When my means permit me to do so 8. DIVISIBLE OBLIGATION
- prestation is capable of partial performance
PERIOD CONDITION
certain uncertain 9. INDIVISIBLE OBLIGATION
future only future/past but unknown - prestation incapable of partial performance
(*influence upon obligation) only (*) on the very existence of
10. OBLIGATION W/ A PENAL CLAUSE
upon its demandability obligation itself
- one w/ accessory undertaking attached to obligation to assume
greater liablity in case of breach/non-fulfillment of obligation
FOR WHOSE BENEFIT IS THE PERIOD?
General Rule: Both the debtor & creditor.
3 PURPOSES OF PENAL CLAUSE
1. Ensure performance of obligation NOT act of novation act of novation
2. Substitute for damages & interest in case of noncompli-ance NOT transfer ownership transfer ownership
3. Penalize debtor in case of breach requires partial/total insol-vency may happen during solvency of
debtor
In case obligation has a PENAL CLAUSE
General Rule: Penalty takes the place of damages & interest in case d. TENDER OF PAYMENT & CONSIGNATION
of non-compliance. TENDER OF PAYMENT – act of offering the creditor what is due to
Exceptions: him w/ a demand that the creditor accept it
1. Stipulation states. CONSIGNATION – act of depositing thing due w/ the court when
2. Debtor refuse to pay penalty. creditor cannot/refuses acceptance of payment
3. Debtor guilty of fraud in performance of obligation.
5 REQUISITES OF CONSIGNATION
NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL CLAUSE 1. Debt due.
Nullity of principal obligation = nullity of penal clause 2. Creditor refused the tender of payment w/o just cause
Nullity of penal clause = NOT nullity of principal obligation 3. Notice of consignation already given to persons interested in
fulfillment of obligation
10 MODES OF EXTINGUISHMENT OF OBLIGATIONS 4. Consignation of thing/amount due
1. Payment or performance 5. Subsequent notice of consignation to interested persons
2. Prescription
3. Compensation 5 VALID CONSIGNATION W/O PREVIOUS TENDER OF PAYMENT
4. Confusion/merger 1. Creditor is absent/unknown.
5. Condonation/remission 2. Creditor is incapacitate to receive at time it is due.
6. Fulfillment of resolutory condition 3. Creditor refused give a receipt, w/o just cause.
7. Annulment 4. 2 or more persons claim the right to collect.
8. Rescission 5. Title of obligation lost.
9. Novation
10. Loss of thing due 2. LOSS OF THING DUE
- perishes, disappears, or goes out of commerce; existence is
1. PAYMENT/PERFORMANCE unknown; cannot be recovered
- Payment means delivery of money & performance of obligation
3 REQUISITES TO EXTINGUISH OBLIGATION DUE TO LOSS
2 PLACE OF PAYMENT 1. Determinate thing.
1. At place agreed upon 2. W/o debtor’s fault.
2. If w/o agreement 3. No delay.
a. Object is indeterminate – paid at domicile of DEBTOR
b. Object is determinate – place of thing at the time of constitution 3. CONDONATION/REMISSION
of obligation - gratuitous abandonment of right by the creditor
3. ACCIDENTAL – various particular stipulations that may be agreed 4 KINDS OF INNOMINATE CONTRACTS
upon by contracting parties 1. I give that you may give
2. I do that you may do
(7) CLASSIFICATION OF CONTRACTS 3. I give that you may do
According to: 4. I do that you may give
1. PERFECTION/FORMATION
a. CONSENSUAL – perfected by mere consent 4 RULES FOR INNOMINATE CONTRACTS
b. REAL – perfected by delivery 1. Agreement of parties
c. FORMAL/SOLEMN – special formalities are essential before 2. Law on Obligations & Contracts
perfection of contract 3. Rules on most analogous nominate contract
4. Customs of place
2. PARTIES OBLIGATED
a. UNILATERAL – only 1 has obligation STIPULATION POR AUTRI
b. BILATERAL – both parties require to render reciprocal - stipulation in favor of 3rd person
prestations
5 REQUISITES OF STIPULATION POR AUTRI
3. CAUSE 1. Stipulation in favor of 3rd person
a. ONEROUS – exchange of considerations 2. Stipulation is only PART, not the whole of the contract.
b. GRATUITOUS – no consideration received in exchange of what 3. Both parties must conferred upon a favor of 3rd person
is given 4. 3rd person must accept & say it to debtor before its
c. REMUNERATORY – something is given for benefit/service that revocation/cancellation
had been rendered previously 5. Neither of both parties be the legal representation/autho-rization
of 3rd person
4. RISK OF FULFILLMENT
a. COMMUTATIVE – equivalent values are given by both parties CONSENT
b. ALEATORY – fulfillment of contract depends on chance (eg. - meeting of offer (certain) & acceptance (absolute) upon a thing
insurance)
5 REQUISITES OF CONSENT
5. IMPORTANCE 1. Must be given by 2 or more parties
a. PRINCIPAL – contract may stand alone (eg. sale, partnership) 2. Parties are capacitate to enter in contract
b. ACCESSORY – existence depends on another contract (pledge, 3. No vitiation of consent
guarantee) 4. No conflict between declared & intended
c. PREPARATORY – contract not an end by itself but a means thru 5. Legal formalities must be complied
w/c other contracts may be made (eg. agency)
7 RULES ON OFFER/ACEPTANCE
1. An offer must be certain. 5. A mere expression of opinion is NOT FRAUD UNLESS made by
2. Business advertisements for sale are NOT offers but ONLY an expert & the other party relies on his special knowledge.
invitations to make an offer. 6. Misrepresentation made in good faith is NOT FRAUD but may
3. Advertisements for bidders are ONLY invitations. constitute an error.
4. An acceptance made by letter/telegram does NOT 7. Misrepresentation by 3rd person DOES NOT vitiate consent UNLESS
bind offeror EXCEPT from the TIME it came to his knowledge. it created substantial mistake.
5. An offer made through an agent is accepted from the TIME the
acceptance is done through an agent. 3. VIOLENCE
6. An offer is ineffective upon death, insanity, insolvency, of EITHER - serious/irresistible force is employed.
party BEFORE acceptance is made.
7. When offeror allowed offeree a certain period 2 RULES ON VIOLENCE
to accept, offer MAY be withdrawn AT ANYTIME unless there is 1. Serious/irresistible force is employed w/c constitutes the reason
something PAID/PROMISED. why one entered into a contract.
2. Violence ANNULS obligation although it is DONE by 3rd person not
3 persons who CANNOT GIVE CONSENT to a contract (if entered part of contract.
into, contract is voidable)
1. UNEMANCIPATED MINORS 4. INTIMIDATION
2. INSANE/DEMENTED PERSONS (unless they acted DURING LUCID - 1 of the parties is compelled by a reasonable & well-grounded fear
INTERVAL) of an imminent & grave evil upon his person/property to give his
3. DEAF-MUTES who DO NOT know how to write consent.
2 FORM OF CONTRACTS
1. Contracts in writing
2. Contracts in a public instrument
REFORMATION OF INSTRUMENTS
- REMEDY in equity in w/c a written instrument is made/construed
to the REAL intention of parties when there is an error/mistake.
5 RESCISSIBLE CONTRACTS
1. Those entered by guardians & suffered LESION by more than ¼ of
value of the value that is the OBJECT.
2. Those agreed upon in representation of absentees, if the
absentees suffered LESION.
3. Those undertaken in FRAUD of creditors when the creditors
cannot further claim.
4. If entered into contract w/o knowledge/approval of litigants
under litigation.
5. Contracts subjected to rescission declared by law.
3 VOIDABLE CONTRACTS
1. One of the parties INCAPABLE of giving consent to a contract.
2. Those where consent vitiates by vices of consent. (MFVIU)
3. Those agreed in the state of drunkenness/hypnotic spell.
3 UNENFORCEABLE CONTRACTS
1. Those entered in name of other person, or who acted BEYOND his
powers.
2. Those who do not comply w/ the Statute of Frauds.
3. Both parties are incapable of giving consent to a contract.
7 VOID/INEXISTENT CONTRACTS
1. Those w/c are ABSOLUTELY simulated/fictitious.
2. Those w/c contemplate an impossible service.
3. Those whose OBJECT is outside the commerce of man.
4. Those whose CAUSE/OBJECT did not exist at time of tran-saction.