Obligations – Midterms reviewer

2. Assessable - Must have a possible equivalent

ART. 1156. AN OBLIGATION IS A JURIDICAL in money.
NECESSITY TO GIVE, TO DO OR NOT TO DO. 3. Determinate, or at least, determinable.

Note: It is generally established principle that

Obligation is a juridical relation whereby a person
prestation should be susceptible of pecuniary
(called creditor) may demand from another (called
appreciation. Need not to be of an economic
debtor) the observance of a determinate conduct
character, even moral ones have some pecuniary
and, in case of breach may obtain satisfaction
value.
from the assets of the latter.

FORM OF OBLIGATION
Note: Obligation is a correlative concept of right
Some writers add a fifth one: the form in which the
(Tolentino)
obligation is manifested. This element, however,
cannot be considered as essential. There is no
ELEMENTS OF AN OBLIGATION
particular form required to make obligations binding,
1. ACTIVE SUBJECT (Obligee/Creditor): The
except in certain rare cases
person who has the right or power to demand
the prestation. AOC NATURAL OBLIGATIONS VS CIVIL
2. PASSIVE SUBJECT (Obligor/Debtor): The OBLIGATIONS
person bound to perform the prestation. POD Art. 1423. Obligations are civil or natural. Civil

3. PRESTATION (Object): The conduct required obligations give a right of action to compel their

to be observed by the debtor/obligor (to give, performance. Natural obligations, not being based

to do, or not to do). on positive law but on equity and natural law, do not

4. VINCULUM JURIS (Juridical or Legal Tie; grant a right of action to enforce their performance,

Efficient Cause): That which binds or connects but after voluntary fulfillment by the obligor, they

the parties to the obligation. (De Leon) authorize the retention of what has been delivered
or rendered by reason thereof. Some natural

DIFFERENT KINDS OF PRESTATIONS obligations are set forth in the following articles.

1. TO GIVE: real obligation; to deliver either (a) a

Rules on Natural Obligation:
specific or determinate thing, or (b) a generic
1. The promise to perform a natural obligation is
or indeterminate thing.
as effective as performance itself, and
2. TO DO: positive personal obligation; includes
converts the natural obligation to a civil
all kinds of work or service.
obligation.
3. NOT TO DO: negative personal obligation; to
2. Partial payment of a natural obligation does
abstain from doing an act; includes the
not make it civil; the part paid cannot be
obligation not to give.
recovered, but payment of the balance cannot
be enforced. The exception would be if the
natural obligation is susceptible of ratification.
Requisites of a Prestation:
1. Possible - physically and juridically;
1
Obligations – Midterms reviewer
3. Guaranties for the performance of a natural
obligation are valid. Article 1158. Obligations derived from law are not
4. Payment of a natural obligation is not subject presumed. Only those expressly determined in this
to reduction by reason of inofficiousness, Code or in special laws are demandable, and shall
appearance of children or ingratitude. be regulated by the precepts of the law which
establishes them; and as to what has not been
Primary Secondary foreseen, by the provisions of this Book.
1. pure and conditional 1. legal, conventional,
Characteristics of a legal obligation
2. with a period penal
3. alternative and 2. real and personal
facultative 3. determinate and 1. Does not need the consent of the obligor;

4. joint and solidary generic (Agreement unecessary, Tolentino)

5. divisible and 4. unilateral and 2. Must be expressly set forth in the law creating

indivisible bilateral it and not merely presumed; and

6. with a penal clause 5. individual and 3. In order that the law may be a source of

collective obligation, it should be the creator of the

6. accessory and obligation itself (NCC, Art. 1158).

principal
Determining whether an obligation arises from law
Article 1157. Obligations arise from: or from some other source
(1) Law;
(2) Contracts; 1. Arises from law if it establishes obligation
(3) Quasi-contracts; 2. Arises from the act itself if the law merely
(4) Acts or omissions punished by law; and recognizes the existence of an obligation
(5) Quasi-delicts. generated by an act (Manresa).

This enumeration is exclusive. No obligation exists if

its source is not one of those enumerated in Art. 1157
of the NCC.
Note: Customs or practice not source of obligation
(Makati Stock Exchange vs Campos)
Note: Promise not a source of obligation
Article 1159. Obligations arising from contracts
have the force of law between the contracting
parties and should be complied with good faith.
Contract - Article 1305. A contract is a meeting of
minds between two persons whereby one binds
himself, with respect to the other, to give
something or to render some service.

Requisites of a contractual obligation

2
Obligations – Midterms reviewer
1. It must contain all the essential requisites of a
contract (NCC, Art. 1318); and
2. It must not be contrary to law, morals, good
customs, public order, and public policy (NCC,
Art. 1306).
Note: Perfected by mere consent
Good faith
Is an intangible and abstract quality with ni technical
meaning or statutory definition, and it encompasses,
among others, an honest belief, the absence of
malice and the absence of design to fraud or to
seek an unconscionable advantage.
Obligation versus Contract
Obligation is the result of a contract or some other
source. Hence, while a contract, if valid, always results
in obligation, not all obligations come from contracts.
A contract always presupposes a meeting of the
minds; this is not necessarily true for all kinds of
obligations.
Article 1160. Obligations derived from quasi-
contracts shall be subject to the provisions of
Chapter 1, Title XVII, of this Book.
Quasi-contracts- Article 2142. Certain lawful,
voluntary and unilateral acts give rise to the
juridical relation of quasi-contract to the end that
no one shall be unjustly enriched or benefited at
the expense of another.
NEGOTIORUM GESTIO
Article 2144. Whoever voluntarily takes charge of
the agency or management of the business or
property of another, without any power from the
latter, is obliged to continue the same until the
termination of the affair and its incidents, or to
require the person concerned to substitute him, if
the owner is in a position to do so. This juridical
relation does not arise in either of these instances:
(1) When the property or business is not neglected
or abandoned;
(2) If in fact the manager has been tacitly authorized
by the owner.
In the first case, the provisions of articles 1317,
1403, No. 1, and 1404 regarding unauthorized
contracts shall govern.
In the second case, the rules on agency in Title X of
this Book shall be applicable. (1888a)
Its requisites are as follows:
1. The gestor must voluntarily assume the agency or
management of the business or property of another.
2. The business or property must be either neglected
or abandoned.
3. The agency or management must not be authorized
by the owner either expressly or impliedly.
4. The assumption of the the agency or management
must be made in good faith.
SOLUTIO INDEBITI
Article 2154. If something is received when there is
no right to demand it, and it was unduly delivered
through mistake, the obligation to return it arises.
Its requisites are as follows:
1. He who paid was NOT under obligation to do so;
2. The payment was made by reason of an essential
mistake of fact
3
Obligations – Midterms reviewer
Negotiorum gestio Solutio indebiti Arises whenever a Arises whenever a
person voluntarily takes person unduly delivers a
charge of the agency or thing through mistake to
management of the another who has no right
business or property of to demand it.
another without authority
from the latter.

4
Obligations – Midterms reviewer
The gestor or officious The person to whom the
manager shall be obliged delivery has been unduly
to continue such agency made shall return the
or management until the property delivered or the
termination of the affair money paid.
and its incidents
Solutio indebiti (SI) v. Accion in rem verso (AIRV)
1. Mistake is an essential element in SI which is not
necessary in AIRV;
2. An AIRV is merely an auxilliary action, available only
when there is no other remedy on contract, quasi-
contract, crime or quasi-delict (Rabuya, 2017).
Presumptive consent
Since a quasi-contract is a unilateral contract created
by the sole act(s) of the gestor, there is no express
consent given by the other party. The consent needed
in a contract is provided by law through presumption
(Pineda, 2000).
Note: Existence of benefit is not an essential element,
essential is acted with good faith
Contract v. Quasi-contract
Contract Quasi-contract
There is a meeting of There is no consent, but
the minds or consent; the same is supplied by
the parties must have fiction of law; to prevent
deliberately entered into injustice
a formal agreement
Article 1161. Civil obligations arising from
criminal offenses shall be governed by the penal
laws, subject to the provisions of article 2177,
and of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of
Title XVIII of this Book, regulating damages.
Delict – an act or omission punishable by law
Article 100 of the RPC states that, “Every person
criminally liable for a felony is also civilly liable.” The
reason lies in the fact that oftentimes the commission
of a crime causes not only moral evil but also material
damage. If no material damage is done, civil liability
cannot be enforced.
Scope of civil liability (IRR):
Article 104. What Civil Liability Arising from a Crime
Includes:
1. Restitution
2. Reparation of the damage caused
3. Indemnification for consequential damages
Implied institution of the civil action in a criminal
case
GR: When a criminal action is instituted, the civil
action for the recovery of the civil liability arising from
the offense charged shall be deemed instituted with
the criminal action (Sec. 1, Rule 111, Rules of Court).
XPNs:
1. Waives the civil action;
2. Reserves the right to institute it separately;
and
3. Institutes the civil action prior to the criminal
action (Rule 111, Sec. 1, Rules of Court)
Acquittal in criminal case
GR: The acquittal of the accused in criminal case on
the ground of reasonable doubt does not preclude the
5
Obligations – Midterms reviewer
filing of a subsequent civil action and only 4. No pre-exisitng contractual relationship between the
preponderance of evidence is required to prove the parties (NCC, Art. 2176)
latter.
How about dolo?

XPNs: When the acquittal is on the basis that: It is a settled-rule that voluntary and intentional

1. The accused did not commit the crime acts/dolo are also covered by quasi-delict. (Rabuya)

charged; or
2. There is a declaration in the decision of Pre-existing contract?

acquittal that no negligence can be attributed GR: Bars liability

to the accused and that the fact from which XPNS: Negligence is merely incidental to the

the civil action might arise did not exist (NCC, performance of the contractual obligation (culpa

Art. 29). – only preponderance of evidence contractual)

Effect of death Separate and distinct from civil liablity from Penal

In People vs Bayotas, the Court ruled that his civil Laws

liability arising from the crime is also EXTINGUISHED. Article 2177. Responsibility for fault or negligence

Why? Final determination in a criminal action is a under the preceding article is entirely separate and

precedent condition to the prosecution of the civil distinct from the civil liability arising from negligence

action. under the Penal Code. But the plaintiff cannot recover
damages twice for the same act or omission of the

Article 1162. Obligations derived from quasi- defendant.

delicts shall be governed by the provisions of

Chapter 2, Title XVII of this Book, and by special Must be proximate cause

laws. Article 2179. When the plaintiff's own negligence was

Quasi-delict - Article 2176. Whoever by act or
omission causes damage to another, there being
fault or negligence, is obliged to pay for the
damage done. Such fault or negligence, if there is
no pre-existing contractual relation between the
parties, is called a quasi-delict and is governed by
the provisions of this Chapter.
the immediate and proximate cause of his injury, he
cannot recover damages. But if his negligence was
only contributory, the immediate and proximate cause
of the injury being the defendant's lack of due care, the
plaintiff may recover damages, but the courts shall
mitigate the damages to be awarded.
Delict v. Quasi-delict

Elements of a quasi-delict
1. Negligent or wrongful act or omission;
2. Damage or injury caused to another;
3. Causal relation between such negligence or fault
and damage; and

6
Obligations – Midterms reviewer
Basis Delict Quasi-Delict
As to the kind Presence of Only
of intent criminal or negligence
present malicious intent
or criminal
negligence
As to the Concerned with Concerned with
whether public interest private interest
private or
public interest
is concerned
As to the kind Generally, the Civil liability
of liability act or omission only
arises gives rise to
two liabilities:
criminal and
civil liability.
As to Not subject of May be subject responsibility in negligence cases, the offended party
availability of compromise of compromise has the option between an action for enforcement of
a compromise civil liability based on culpa criminal under Art. 100 of
As to the Guilt must be May be proved the RPC and an action for recovery of damages based
quantum of proven beyond by on culpa aquiliana under NCC, Art. 2177.
evidence is reasonable preponderance
required doubt of evidence

NOTE: Inasmuch as civil liability co-exists with criminal

NATURE AND EFFECTS OF OBLIGATIONS

Article 1163. Every person obliged to give
something is also obliged to take care of it with
the proper diligence of a good father of a family,
unless the law or the stipulation of the parties
requires another standard of care.
DUTY TO EXERCISE DILIGENCE
This is the first effect of an obligation – to deliver a
determinate thing (as distinguished from a generic
thing – or one of a class) – namely – the duty to
exercise proper diligence.
Diligence Needed:
1. That which is required by the nature of the
obligation and corresponds with the
circumstances of person, time, and place. This is really
diligence of a good father of a family.
2. However, if the law or contract provides for a
different standard of care, said law or stipulation must
prevail
Article 1164. The creditor has a right to the fruits
of the thing from the time the obligation to
7
Obligations – Midterms reviewer
deliver it arises. However, he shall acquire no
real right over it until the same has been If the obligor delays, or has promised to deliver the
delivered to him. same thing to two or more persons who do not have
the same interest, he shall be responsible for any
WHEN CREDITOR IS ENTITLED TO THE FRUITS
fortuitous event until he has effected the delivery.

Personal Right – is called “jus in personam” or “jus ad Types of real obligations

rem”; a personal right is power demandable by one
person of another – to give, to do, or not to do. 1. Determinate/specific – Particularly designated or
physically segregated from all others of the same
Real Right – is a “jus in re”; a real right is a power class;
over a specific thing (as in ownership or possession)
and is binding on the whole world. Article 1460. A thing is determinate when it is
particularly designated or physical segregated from all
others of the same class.
Kinds of Fruits
1. Natural Fruits – are the spontaneous products The requisite that a thing be determinate is satisfied if
of the soil, and the young and other products at the time the contract is entered into, the thing is
of animals. capable of being made determinate without the
2. Industrial fruits – are those produced by lands necessity of a new or further agreement between the
of any kind through cultivation or labor. parties
3. Civil fruits – are those derived by virtue of a
juridical relation. 2. Indeterminate/Generic – Is designated merely by
its class or genus;
WHEN DOES THE OBLIGATION TO DELIVER
ARISE? 3. Delimited generic – Generic objects confined to a
Answer: It depends. particular class (Tolentino, 2002); e.g. An obligation to
1. If there is no term or condition, then from the deliver one of my horses.
perfection of the contract.
2. If there is a term or condition, then from the RIGHTS AND DUTIES OF PARTIES:
moment the term arrives or the condition happens. Duties of the Debtor Rights of the Creditor
To Give a Specific Thing
1. To preserve or 1. To compel
Article 1165. When what is to be delivered is a
take care of the delivery (1165)
determinate thing, the creditor, in addition to the
thing due (1163) – SPECIFIC
right granted him by article 1170, may compel the
2. To deliver the PERFORMAN
debtor to make the delivery.
thing itself (1165) CE
3. To deliver the 2. To recover
If the thing is indeterminate or generic, he may ask
fruits of the thing damages in
that the obligation be complied with at the expense
(1164) case of breach,
of the debtor.
8
Obligations – Midterms reviewer
4. To deliver its exclusive or in (1246) - Creditor in case of breach
accessions and addition to cannot demand a (1165) 4. Not to be
accessories specific thing of superior compelled to receive a
(1166) performance quality; neither different one, although
(a) accessions (1165; 1170) can the debtor of the same value as,
– everything 3. To fruits from deliver a thing of or more valuable than
which is the time the inferior quality. that which is due
produced by obligation to 3. To pay damages (1244)
a thing, or deliver arises in case of breach
which is (1164) (1170)
incorporated 4. Not to be
or attached compelled to Duties of Debtor Rights of Creditor
To do
thereto, receive a 1. To do it (1167) 1. To have the obligation
excluding different one, 2. To shoulder the cost executed at the cost of
fruits (b) although of the of execution should he the debtor (1167)
accessories same value as, fail to do it (1167) 2. To recover damages
– things or more 3. To undo what has in case of breach (1170)
destined for valuable than been poorly done (1167)
the which is due 4. To pay damages in Note: The debtor cannot
embellishme (1244) case of breach (1170) be compelled to perform
nt, use or his obligation. The
preservation ultimate sanction of civil
of another obligations is
thing of more indemnification of
importance damages. This would be
5. To pay damages tantamount to
in case of breach involuntary servitude
(1170) Not to do
To Give a Generic Thing 1. Not to do what should 1. To ask to undo what
1. To take care of 1. To ask that the not be done should not be done, at
the thing (1163) obligation be complied 2. To shoulder cost of the debtor’s expense.
2. To deliver a thing with (1165) undoing what should not (1168)
of the quality have been done (1168) 2. To recover damages,
intended by the 2. To ask that the 3. To pay damages in where it would be
parties taking into obligation be complied case of breach (1170) physically or legally
consideration the with by a third person impossible to undo what
purpose of the at the expense of the should not have been
obligation and debtor done, because of : a. the
other very nature of the act
circumstances 3. To recover damages itself; b. rights acquired
9
Obligations – Midterms reviewer
by third persons who doing, and the obligor does what has been
acted in good faith; c. forbidden him, it shall also be undone at his
when the effects of the expense. (Negative Personal Obligation)
acts prohibited are
Remedies of the Creditor when the Debtor Violates
definite in character and
Negative Personal Obliagtion:
will not cease even if the
1. The creditor can demand that the act be undone at
thing prohibited be
the expense of the debtor.
undone
2. Plus Damages.
SPECIFIC PERFORMANCE – is defined as the
remedy of requiring exact performance of a contract in
the specific form in which it was made or according to
the precise terms agreed upon.

Article 1167. If a person obliged to do something

fails to do it, the same shall be executed at his
cost. (Positive Personal Obligation – to do)

This same rule shall be observed if he does it in

contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been
poorly done be undone.

Art. 1170. Those who in the performance of their

REMEDIES OF THE CREDITOR IF DEBTOR FAILS
obligations are guilty of fraud (dolo), negligence
TO DO
(culpa), or delay (mora), and those who in any
1. To have the obligation performed (by himself or
manner contravene the tenor thereof, are liable
another) at the debtor’s expense (only if another can
for damages
do the performance;
2. Also to obtain damages. Damages alone cannot Forms of breach of obligations
substitute for performance if owners can do
it; if purely personal or special, only damages may be 1. Voluntary – Debtor is liable for damages if he is
asked, unless substitution is permitted. guilty of:
a. Default (mora)
When Thing may be Ordered Undone: b. Fraud (dolo)
1. If made poorly – here performance by another and c. Negligence (culpa)
damages may be demanded. d. Breach through contravention of the tenor
2. If the obligation is a negative one – provided the thereof (NCC, Art. 1170).
undoing is possible.

2. Involuntary – Debtor is unable to perform the

Article 1168. When the obligation consists in not
10
Obligations – Midterms reviewer
obligation due to fortuitous event thus not liable for
damages.
DELAY
Article 1169. Those obliged to deliver or to do
something incur in delay from the time the
obligee judicially or extrajudicially demands
from them the fulfillment of their obligation.
Kinds of legal delay or default: (MACS)
1. Mora solvendi – Default on the part of the
However, the demand by the creditor shall not
be necessary in order that delay may exist:
(1) When the obligation or the law expressly so
declare; or
(2) When from the nature and the circumstances
of the obligation it appears that the designation
of the time when the thing is to be delivered or
the service is to be rendered was a controlling
motive for the establishment of the contract; or
(3) When demand would be useless, as when
the obligor has rendered it beyond his power to
perform.
In reciprocal obligations, neither party incurs in
delay if the other does not comply or is not
ready to comply in a proper manner with what is
incumbent upon him. From the moment one of
the parties fulfills his obligation, delay by the
other begins.
Delay – Non fulfillment of the obligation with
respect to time
GR: No demand = no default [NCC, Art. 1169 (2)].
XPNs: (cited above)
Kinds of delay
1. Ordinary delay – This is the mere failure to
perform an obligation at the stipulated time.
2. Extraordinary delay or legal delay – This
delay already equates to non-fulfillment of the
obligation and arises after the extrajudicial or
judicial demand has been made upon the
debtor (Pineda, 2000).
debtor/obligor
Requisites (PDF-MJ)
 Obligation Pertains to the debtor;
 Obligation is Determinate, due and
demandable, and liquidated;
 Obligation has not been performed on
its Maturity date;
 There is Judicial or extrajudicial
demand by the creditor; and
 Failure of the debtor to comply with
such demand.
Effects of mora solvendi
 Debtor may be liable for damages
(NCC, Art. 1155) or interests;
Note: The interest begins to run from
the filing of the complaint when there
is no extrajudicial demand.
 When the obligation has for its object
a determinate thing, the debtor may
bear the risk of loss of the thing even
if the loss is due to fortuitous event;
 Rescission or resolution
Note: There is no mora solvendi in:
a) Negative obligations because delay is
impossible [De Leon]
b) Natural obligations [Tolentino]
11
Obligations – Midterms reviewer
(ASJ Corporation v. Evangelista, G.R. No.
2. Mora accipiendi – Default on the part of the 158086, February 14, 2008).
creditor/oblige;
Requisites Delay in reciprocal obligations
 Offer of Performance by a
capacitated debtor;
One party incurs in delay from the moment the
 Offer must be to Comply with the
other party fulfills his obligation, while he
prestation as it should be performed;
himself does not comply or is not ready to
and
comply in a proper manner with what is
 Refusal of the creditor without just incumbent upon him.
cause (Pantaleon v. Amex, supra).
Effects of mora accipiendi
Demand is only necessary in order for a party
 Responsibility of debtor is limited to
to incur delay when the respective obligations
fraud and gross negligence;
are to be performed on separate dates.
 Debtor is exempted from risk of loss of
thing; creditor bears risk of loss;
Effect of non-compliance of both parties in
 Expenses by debtor for preservation
reciprocal obligations
of thing after delay is chargeable to
creditor
If neither party complies with his prestation,
 If the obligation bears interest, debtor
default of one compensates for the default of
does not have to pay it from time of
the other.
delay
FRAUD
 Creditor liable for damages; and
 Debtor may relieve himself of Article 1171. Responsibility arising from fraud
obligation by consigning the thing. is demandable in all obligations. Any waiver of
an action for future fraud is void.
3. Compensatio morae – Default on the part of
both the debtor and creditor in reciprocal Fraud (dolo)- any voluntary and willful act or omission

obligations. which prevents the normal realization of the prestation,

knowing and inending the effects naturally and

Reciprocal obligations necessary arise from such act. (Tolentino)

Liability for fraud or dolo

Reciprocal obligations are those which arise
Article 1171. Responsibility arising from fraud is
from the same cause, wherein each party is a
demandable in all obligations.
debtor and a creditor of the other, such that
performance of one is conditioned upon the
According to time of commission, fraud may be:
simultaneous fulfillment of the other from the
1. PAST FRAUD – which may be waived
moment one of the parties fulfills his
2. FUTURE FRAUD – which cannot be void; any
obligation, delay by the other party begins
12
Obligations – Midterms reviewer
stipulation thereto is void. obligation is also demandable, but such liability
may be regulated by the courts, according to the
NOTE: While causal fraud is so important, a fraud that circumstances. (1103)
vitiates consent (allowing therefore annulment),
incidental fraud is not important Article 1173. The fault or negligence of the
obligor consists in the omission of that
KINDS OF FRAUD diligence which is required by the nature of the
Fraud in the vs Fraud in the obligation and corresponds with the
performance of an constitution or circumstances of the persons, of the time and of
obligation establishment of the place. When negligence shows bad faith, the
an obligation provisions of articles 1171 and 2201, paragraph
During the When At the time of the 2, shall apply.
performance of an present birth of an
existing obligation obligation. If the law or contract does not state the
Evading normal purpose Securing the diligence which is to be observed in the
fulfillment of an consent of the performance, that which is expected of a good
obligation other party to enter father of a family shall be required
into the contract
Negligence - What is negligence?
Article 1173. The fault or negligence of the obligor
consists in the omission of that diligence which is
Waiver of action arising from future fraud
required by the nature of the obligation and
With respect to fraud that has already been committed
corresponds with the circumstances of the
(past fraud), the law does not prohibit renunciation of
persons, of the time and of the place
the action for damages based on the same since such
can be deemed an act of generosity. What is
Test of negligence
renounced is the effect of fraud, particularly the right to
Did the defendant in doing the alleged negligent act
indemnity. However, the law prohibits any waiver of an
use the reasonable care and caution which an
action for future fraud since the same is contrary to law
ordinarily prudent person would have used in the same
and public policy. Waiver for future fraud is void (NCC,
situation? If not, then he is guilty of negligence.
Art. 1171).

KINDS of NEGLIGENCE (CULPA) – According to

Remedies of the defrauded party
Source of Obligation (Discussion on Quasi-delict)
1. Specific performance (NCC, Art. 1233); or
1. CULPA CONTRACTUAL – contractual
2. Resolution of the contract (Art. 1191); and
negligence; or that which results in a
3. Damages, in either case
breach of contract.
2. CULPA AQUILIANA – civil negligence; or tort;
NEGLIGENCE
or quasi-delict
Article 1172. Responsibility arising from 3. CULPA CRIMINAL – criminal negligence; or
negligence in the performance of every kind of that which results in the commission of a crime
13
Obligations – Midterms reviewer
ore delict. of contract and which the parties have reasonably
foreseen at the time of the constitution of the

DEGREES OF CULPA (Negligence) Under Roman obligation.

Law:

1. CULPA LATA – grave negligence If the obligor is guilty of fraud, bad faith, malice or
2. CULPA LEVIS – ordinary negligence wanton attitude, he shall be responsible for all

3. CULPA LEVISSIMA – slight negligence damages which may be reasonably attributed to the
non-performance of the obligation.
Under the Roman Law:

1. If slight diligence is required, it is only grave

negligence that will make the debtor liable.
2. If ordinary diligence is required, it is ordinary
negligence that will make the debtor liable.
3. If great diligence is required, even slightest
negligence will make the debtor liable.
Contributory negligence of the creditor (Art. 2179)
GR: It reduces or mitigates the damages which he
can recover.
XPN: If the negligent act or omission of the creditor is
the proximate cause of the event which led to the
damage or injury complained of, he cannot recover.

STIPULATIONS REGARDING NEGLIGENCE (Future

Separate and distinct from civil liablity from Penal
Negligence)
Laws
RULE #1: GROSS Negligence can never be excused
Article 2177. Responsibility for fault or negligence
in advance for this would be contrary to public policy.
under the preceding article is entirely separate and
RULE #2: SIMPLE Negligence may in certain cases
distinct from the civil liability arising from negligence
be excused or mitigated
under the Penal Code. But the plaintiff cannot recover
damages twice for the same act or omission of the
KINDS OF DILIGENCE Under the CIVIL CODE:
defendant.
1. That agreed upon by the parties
2. In the absence of any agreement, that required by
Must be proximate cause
law (particular provision)
Article 2179. When the plaintiff's own negligence was
3. In the absence of any law imposing the diligence
the immediate and proximate cause of his injury, he
required, that expected of a good father of a family
cannot recover damages. But if his negligence was
(bonum pater familia)
only contributory, the immediate and proximate cause
of the injury being the defendant's lack of due care, the
NOTE: When negligence is so gross that it amounts to
plaintiff may recover damages, but the courts shall
wanton attitude on the part of the debtor or such
mitigate the damages to be awarded.
negligence shows bad faith, the laws in case of fraud
shall apply.
Waiver for future negligence?
An action for future negligence may be renounced, as
Effect of good faith or bad faith of the obligor (Art.
long as it is not considered fraud, reckless that would
2201)
cause damage to other person, or against public
If the obligor acted in good faith, he is responsible for
policy.
the natural and probable consequences of the breach
14
Obligations – Midterms reviewer
the debtor;
Note: Only future simple negligence may be waived. 2. The Event is unforeseeable or unavoidable;
Future gross negligence may not be waived since 3. Occurrence renders it absolutely impossible
such negligence amounts to fraud for the debtor to fulfill his obligation in a normal
manner - impossibility must be absolute not
CONTRAVENTION OF TENOR OF OBLIGATION partial, otherwise not force majeure; and
(VIOLATIO) 4. Debtor is free from any participation in the
aggravation of the injury to the creditor
The act of contravening the tenor or terms or
conditions of the contract is also known as “violatio,”
ACT OF GOD ACT OF MAN
i.e. failure of common carrier to take its passenger to An accident, due Force majeure is a
their destination safely (Pineda, 2000). directly or exclusively superior or irresistible
to natural causes force, which is

Under NCC, Art. 1170, the phrase “in any manner without human essentially an act of

contravene the tenor” of the obligation includes any intervention, which by man; includes

illicit act which impairs the strict and faithful no amount of unavoidable accidents,

fulfillment of the obligation, or every kind of foresight, pains or even if there has been

defective performance. Such violation of the terms of care, reasonably to an intervention of

contract is excused in proper cases by fortuitous have been expected, human element,

events. could have been provided that no fault

prevented or negligence can be

LEGAL EXCUSE FOR BREACH – FORTUITOUS imputed to the debtor.

EVENT
Liability in case of Fortuitous Event

Article 1174. Except in cases expressly specified GR: No person shall be responsible for fortuitous

by the law, or when it is otherwise declared by events,

stipulation, or when the nature of the obligation XPNS:

requires the assumption of risk, no person shall 1. expressly specified by law [Arts. 552 (2); 1942,

be responsible for those events which could not 2147, 2148, 2159]

be foreseen, or which, though foreseen, were 2. liability specified by stipulation

inevitable. 3. the nature of the obligations requires

Fortuitous Event - a happening independent of the
will of the debtor and which makes the normal
fulfillment of the obligation impossible. [De Leon] or
for those events which could not be foreseen, or
which, though foreseen, were inevitable.
Requisites: (CODE)
1. Cause of breach is independent of the will of
assumption of risk [Art. 1174]
4. debtor is guilty of concurrent or contributory
negligence 2179
5. debtor has promised to deliver the same thing
to two or more persons who do not have the
same interest [Art. 1165 par. 3]
6. the thing is lost due to the obligor’s fraud,
negligence, delay or contravention of the tenor
of the obligation [Art. 1170]
15
Obligations – Midterms reviewer
7. the obligation to deliver a specific thing arises
from a crime [Art. 1268] Substitute performance
8. the object is a generic thing, i.e. the genus It is a remedy of the creditor in case of
never perishes Note: ‘Genus nunquam perit’ nonperformance by the debtor where another party
only pertains to physical perishing. The genus performs the obligation or the same is performed at
may still perish legally. [Labitag] the expense of the debtor.

Effects of fortuitous events Applicability of substitute performance

1. On determinate obligation – The obligation is
extinguished.
2. On generic obligation – The obligation is not
extinguished (genus nun quam peruit – genus never
perishes).
REMEDIES
1. Positive personal obligation:
a. If not purely personal – Substitute performance; the
obligation shall be executed at debtor’s cost if he fails
to do it (NCC, Art. 1167).
b. Purely personal – No substitute performance may
be demanded because of the personal qualifications
taken into consideration. The only remedy is damages.

Article 1177. The creditors, after having pursued

2. Real obligation:
the property in possession of the debtor to
a. Generic thing – Substitute performance; delivery
satisfy their claims, may exercise all the rights
may be made by a person other than the debtor since
and bring all the actions of the latter for the
the object is merely designated by its class or genus.
same purpose, save those which are inherent in
The creditor may ask that the obligation be complied
his person; they may also impugn the acts
with at the expense of the debtor (NCC, Art. 1165).
which the debtor may have done to defraud
b. Specific thing – Specific performance may be
them.
demanded, that is, the creditor may compel the debtor
Remedies in connection with specific performance to make the delivery.
1. Exhaustion of the properties of the debtor (not
exempt from attachment under the law); Extent of Debtor’s Liability:
2. Accion subrogatoria (subrogatory action) – An The debtor is liable with all his property, present
indirect action brought in the name of the debtor and future, for the fulfilment of his obligations
by the creditor to enforce the former’s rights subject to exemptions provided by law.
except:
a. Personal rights of the debtor;
b. Rights inherent in the person of the debtor;
c. Properties exempt from execution. e.g. family
home
3. Accion pauliana (rescissory action) – An
action to impugn or assail the acts done or
contracts entered into by the debtor in fraud of his
creditor.
16
Obligations – Midterms reviewer

It has two requisites: first, futurity; and second,

uncertainty.

Kinds of conditional obligation:

Suspensive Resolutory
Condition precedent Condition subsequent
Results in the acquisition Results in the
of rights arising out of the extinguishment of rights
KINDS OF CIVIL OBLIGATIONS obligations arising out of the
obligations
PURE AND CONDITIONAL OBLIGATION
The happening of the The happening of the
condition gives birth to condition extinguishes
the obligation. obligation
PURE OBLIGATIONS
If the condition is not If the condition is not
fulfilled, no juridical tie is fulfilled, juridical relation
Art. 1179. Every obligation whose performance created. is consolidated.
does not depend upon a future or uncertain What is acquired by the What is acquired by the
event, or upon a past event unknown to the obligee in the constitution obligee in the constitution
of the obligation is only of the obligation are
parties, is demandable at once. Every obligation mere hope and rights that are subject to
which contains a resolutory condition shall also expectancy, protected by threat or danger of
law. extinction.
be demandable, without prejudice to the effects
of the happening of the event.
Rights of the parties before the fulfillment of the
condition
CONDITIONAL OBLIGATIONS
1. Creditor – May bring the appropriate actions for the
Art. 1181. In conditional obligations, the preservation of his right (NCC, Art. 1188), such as:
acquisition of rights, as well as the a. Action for prohibition/restraining the
extinguishment or loss of those already alienation of the thing pending the happening
acquired, shall depend upon the happening of of the suspensive condition;
the event which constitutes the condition b. Petition for the annotation of the creditor’s
right with the proper registry;
Conditional obligation c. Action to demand security if the debtor has
An obligation subject to a condition and the effectivity become insolvent;
of which is subordinated to the fulfillment or non- d. Action to set aside alienations made by the
fulfillment of a future and uncertain event, or upon a debtor in fraud of creditors; or
past event unknown to the parties (Pineda, 2000). e. Action against adverse possessors to
interrupt the running of prescriptive period.
Condition 2. Debtor – May recover what, during the same time,
A condition is an event which is future and uncertain, he has paid by mistake in case of a suspensive
upon which the efficacy or extinguishment of an condition (NCC, Art. 1188).
obligation depends.
17
Obligations – Midterms reviewer
Article 1180. When the debtor binds himself to person.
pay when his means permit him to do so, the Effects
obligation shall be deemed to be one with a dependent on The obligation The obligation
period, subject to the provisions of article 1197 the creditor- and the and the
condition and condition shall condition shall
obligation, take effect. take effect.
Article 1182. When the fulfillment of the VALID (valid and (valid and
enforceable) enforceable)
condition depends upon the sole will of the dependent on
debtor, the conditional obligation shall be void. the debtor-
condition and
If it depends upon chance or upon the will of a obligation, VOID
third person, the obligation shall take effect in
conformity with the provisions of this Code. REMEDY OF THE CREDITOR IN CASE OF
POTESTATIVE OBLIGATION
In this kind of obligation, the condition depends Article 1197. If the obligation does not fix a period, but
solely upon the will of the debtor and therefore
from its nature and the circumstances it can be
apparently void under Article 1182 of the Civil Code. inferred that a period was intended, the courts may fix
the duration thereof.
Similar Phrases: The courts shall also fix the duration of the period
1. “when my means permit to do so” when it depends upon the will of the debtor.
2. “when I can afford it” In every case, the courts shall determine such period
3. “when I am able to” as may under the circumstances have been probably
4. “when I have money” contemplated by the parties. Once fixed by the courts,
the period cannot be changed by them.
LEGAL BASIS FOR THE VOID VOIDNESS OF
POTESTATIVE OBLIGATION: Article 1182. When The GENERAL RULE therefore, is for the creditor to
the fulfillment of the condition depends upon the ask the court first for the fixing of the term, and it is
sole will of the debtor (potestative condition), the only when that the term set arrives that he can
conditional obligation shall be void. If it depends upon demand fulfilment. Any action to recover before this is
chance or upon the will of a third person (casual or done is PREMATURE.
mixed condition), the obligation shall take effect in
conformity with the provisions of this Code. CONDITIONAL PERFECTION OF A CONTRACT:
If the perfection of a contract depends upon the
This Article deals with 3 Kinds of Conditions: fulfilment of a condtion, non-fulfilment thereof means
Potestative casual mixed the non-perfection of the contract since the suspensive
fulfillment of the fulfillment of the fulfillment of the condtion should have been first fulfilled.
obligation condition obligation
depends upon depends upon depends upon
the will of a chance/or upon the will of a Article 1183. Impossible conditions, those
party to the the will of a third party to the
obligations person obligation and contrary to good customs or public policy
partly upon and those prohibited by law shall annul the
chance and/or
will of a third obligation which depends upon them. (Effect of

18
Obligations – Midterms reviewer
an Impossible or Illegal Condition imposed in an
Obligation)
If the obligation is divisible, that part thereof which
is not affected by the impossible or unlawful
condition shall be valid. (DIVISIBLE OBLIGATION with
IMPOSSIBLE or ILLEGAL Conditions)
The condition not to do an impossible thing shall be
considered as not having been agreed upon.
CONDITIONS)
Positive suspensive condition
A condition which requires a positive act on the part of
the obligor that gives rise to the acquisition of rights.
Effect if Period of Fulfilment is Not Fixed:
If the period is not fixed in the contract, the
court, considering the parties’ intentions, should
determine what period was really intended.

IMPOSSIBLE CONDITIONS – because of physical
impossibility like to make a dead man alive; or
because of logical impossibility like to make a circle
that is at the same time a square.
ILLEGAL CONDITIONS – those prohibited by
good customs, public policy, prohibited, directly or
indirectly by law like killing X, a friend.
A contract to sell, the obligation to deliver the subject
properties becomes demandable only upon the
happening of the positive suspensive condition
(payment of full purchase price). Without full payment,
there can be no breach of contract to speak of
because the seller has no obligation yet to turn over
the title (Reyes v. Tuparan, G.R. No. 188064, June 1,
2011).

EFFECTS: Article 1185. The condition that some event will

RULE 1: If the condtion is to do an impossible not happen at a determinate time shall render
thing BOTH the condition and the obligation are the obligation effective from the moment the
VOID. time indicated has elapsed, or if it has become
RULE 2: if the condtion is to do an illegal thing BOTH evident that the event cannot occur. (NEGATIVE
the condtion and the obligation are VOID. CONDTIONS)
RULE 3: If the condtion is not to do an
impossible thing, just disregard the condtion, BUT If no time has been fixed, the condition shall be
the deemed fulfilled at such time as may have
obligation remains. This becomes a pure and valid probably been contemplated, bearing in mind
obligation. the nature of the obligation.
RULE 4: if the condition is not to do an illegal
thing, BOTH the condition and the obligation are Negative resolutory condition

VALID An act, which if not done, would give rise to a cause of

action against the obligor. It contemplates a situation
where rights are already acquired but subject to an
Article 1184. The condition that some event
obligation, the non-fulfillment of which does not affect
happen at a determinate time shall
the rights already acquired but merely gives a cause of
extinguish the obligation as soon as the time
action in favor of the other party. In a contract of sale,
expires or if it has become indubitable that
the buyer’s nonpayment of the price is a negative
the event will not take place. (POSITIVE
19
Obligations – Midterms reviewer
resolutory condition. In such case, the seller has lost A certain length of time which determines the
and cannot recover the ownership of the property effectivity or the extinguishment of the obligations.
unless he takes action to set aside the contract of sale
(Heirs of Atienza v. Espidol, G.R. No. 180665, August Requisites of a valid period or term
11, 2010). 1. Future;
2. Certain; and
Article 1187. The effects of a conditional 3. Possible, legally, and physically (Paras, 2008).
obligation to give, once the condition has been
fulfilled, shall retroact to the day of the Definite – the exact date or time is known and given.
constitution of the obligation. Nevertheless, Indefinite – something that will surely happen, but the
when the obligation imposes reciprocal date of happening is unknown (as in the case of
prestations upon the parties, the fruits and death).
interests during the pendency of the condition
shall be deemed to have been mutually When Period of Prescription Begins:
compensated. If the obligation is unilateral, the The period of prescription commences from the time
debtor shall appropriate the fruits and interests term in the obligation arrives, for it is only from that
received, unless from the nature and date it is due and demandable.
circumstances of the obligation it should be
inferred that the intention of the person Extension of Period;
constituting the same was different. Evidence of extension of period, if any be given, must
be shown by the debtor.
In obligations to do and not to do, the courts
shall determine, in each case, the retroactive PERIOD vs CONDITION
effect of the condition that has been complied
Term/Period Condition
with.
Interval of time requisites Refers to a fact or
which is future event which is
Reason for retroactivity: The condition is only and certain future and
accidental, not essential element of the obligation. uncertain
Interval of time fulfillment A future and
The principle of retroactivity must be tempered by
that must uncertain fact or
principles of justice and practicability.
necessarily come, event that may or
• In obligations to give
although it may may not happen.
◦ the principal obligation as well as the fruits
not be known
should be delivered
when
◦ in unilateral obligations, the debtor shall
appropriate the fruits and interests Merely exerts an Influence on Exerts an
received, unless there is a contrary influence upon the obligation influence upon
intention on his part time of the the very
• in obligations to do or not to do demandability or existence of the
◦ Courts shall determine in each case the extinguishment of obligation itself.
retroactive effect of the condition that has an obligation.
been complied with.
No retroactive Retroactive Has retroactive
effects unless effects effects
OBLIGATIONS WITH A PERIOD there is an
agreement to the
Term or period
20
Obligations – Midterms reviewer
contrary. unless of course absurd consequences would
arise.
Effects of Term or Period: 2. When the obligation or note is payable on
suspensive the demandability of the obligation demand;
term or is extinguished, not the acquisition
period of right or the effectivity of the 3. When specific periods are provided for in the
obligation. law, as in an employment contract where if no
Resulotory The fulfillment or performance of period was agreed upon the time of
term or the obligation is demandable at
period once, but it is extinguished or employment depends upon the time for
terminated upon the arrival of the payment of salary.
day certain or the expiration of the
term. 4. When what appears to be a term is really a
condition;
IN CASE OF PREMATURE PAYMENT BY THE 5. When the period within which to ask the
DEBTOR: court to have the period fixed has itself
The obligor being unaware of the period or already prescribed.
believing that the obligation has become due and
demandable may recover what has been prematurely Note: SPECIFIC PERFORMANCE cannot be
demanded at the same time that the court is asked
made, with the fruits and interest.
to fix the period. Such action for specific
performance is premature. In exceptional cases, the
Requisites to be able to Recover: Supreme Court has allowed an action for specific
performance to prosper as when a prior and
1. Debtor must have been unaware of the period; OR separate action would be a mere formality and
2. He must have believed that the obligation has serve no other purpose but delay, there is no
necessity of such prior action.
become due and demandable.
How the Court Fixes the Period:

Instances where the court may fix the period The court determines the period by considering the

1. If the obligation does not fix a period, but from time probably contemplated by the parties. Once the

its nature and circumstances it can be inferred period is fixed by the courts, period becomes part of

that a period was intended by the parties; the contract, thus, the courts cannot change it.

2. If the duration of the period depends upon the

will of the debtor (1997, 2003 Bar);
3. In case of reciprocal obligations, when there is ALTERNATIVE/FACULTATIVE

a just cause for fixing the period; or

REQUISITES FOR MAKING THE CHOICE:
4. If the debtor binds himself when his means
1. It should be MADE PROPERLY, so that the
permit him to do so
creditor or his agent will actually know;
2. It should be MADE WITH FULL KNOWLEDGE that
When the Court MAY NOT Fix the Term:
a selection is indeed being made;
3. It should be MADE VOLUNTARILY AND
1. When no term was specified by the parties
FREELY, without force, intimidation, coercion, or
because no term was even intended, in which
undue influence;
case a pure one, and demandable at once,
4. It should be MADE IN DUE TIME, that is, before or
21
Obligations – Midterms reviewer
upon maturity;
5. It should be MADE TO ALL THE PROPER Facultative vs Alternative

PERSONS; Only one object Object due Several objects

6. It should be MADE WITHOUT CONDITIONS By the delivery of compliance By the delivery of

another object or one of the objects
unless agreed to by the creditor (otherwise, it can be by the or by the
said that no real choice is being made); performance of performance of
another one of the
7. It MAY BE WAIVED, expressly or impliedly (since prestation in prestations which
all rights in general may be waived). substitution are alternatively
due.
Pertains only to choice May pertain to the
Means of Notification or Communication to Other the debtor debtor, or creditor,
Party of Choice: or third person

The law requires NO SPECIFIC FORM. It can be Loss or Effect of Loss of all the
impossibility of fortuitous objects of
communicated, ORALLY or IN WRITING, the object loss prestation is
EXPRESSLY or IMPLIEDLY, such as by performance extinguishes the necessary to
obligation extinguish the
of one of the obligations. obligation
When alternative obligation becomes a simple Does not give Effect of May give rise to a
obligation rise to liability on culpable liability on the part
the part of the loss of the debtor
debtor
1. When the debtor has communicated the choice to
the creditor; SOLIDARY/JOINT
2. When debtor loses the right of choice among the
XPNs: The obligation shall only be solidary when:
prestations whereby the debtor is alternatively bound,
(LEN-CJ)
only one is practicable (NCC, Art. 1202).

1. Law requires solidarity;

Art. 1202 Art. 1200, par. 2
2. Expressly stipulated that there is solidarity;
Only one prestation which There are still two or
can be performed more prestations that can 3. Nature of the obligation requires solidarity; e.g. Civil
be performed. liability arising from crime.
Obligation is converted to The obligation is still 4. Charge or condition is imposed upon heirs or
a simple one because the alternative because the
debtor loses his right of debtor can still exercise legatees and the will expressly makes the charge or
election his right of election. condition in solidum (Manresa); or
5. Solidary responsibility is imputed by a final
Art. 1204 Art. 1205
Judgment upon several defendants (Gutierrez v.
Right of choice of debtor Right of choice of Creditor
Gutierrez, 56 Phil 177, GR 34840, September 23,
General rule exception
1931).
Factors to consider in knowing the effect of loss of
the object of prestation
Consequences of a joint obligation
• to whom the right of choice belong?
• What is the cause of the loss of the object of 1. Each debtor is liable only for a proportionate part of
prestation? (fortuitous event or fault of the
the entire debt;
debtor)

22
Obligations – Midterms reviewer
2. Each creditor, if there are several, is entitled only to other debtor or debtors, represents all
other creditors.
a proportionate part of the credit;
◦ Mutual representation
3. The demand made by one creditor upon one debtor, • passive – among debtors
◦ tie or vinculum existing among several
produces effects of default only as between them;
debtors of one and the same obligations
4. Interruption of prescription caused by the demand by virtue of which each of them, in relation
to his co-debtors, possesses the character
made by one creditor upon one debtor, will NOT
of a debtor only with respect to his share
benefit the co-creditors or the co-debtors; 5. of the obligation, but in relation to other
creditor or creditors, represents all other
Insolvency of a debtor will not increase the liability of
debtors.
his co-debtor; ◦ each solidarity debtors, as far as the
creditors are concerned, is the debtor to
6. Vices of each obligation emanating from a particular
the entire amount
debtor or creditor will not affect the others; • mixed – among creditors and debtors
7. In indivisible or joint obligation, the defense of res
judicata of one does not extend to the others (8 FUNDAMENTAL EFFECT OF ACTIVE SOLIDARITY-
creation of a relationship of mutual agency among
Manresa, 200-201);
solidary creditors by virtue of which the creditor is
8. The delay on the part of only one of the joint debtors empowered against the debtor or debtors not only the
rights which corresponds to him, but also all the rights
does not produce effects with respect to the others,
which correspond to the other creditors, with the
and if the delay is produced through the acts of only consequent obligation to render an accounting of his
acts to such creditors.
one of the joint creditors, the others cannot take
(equal mutual representation)
advantage thereof.
***relationship of mutual agency, basis of the
difference of the rules in Art. 1212 and 1215.
Indivisibility and solidarity are NOT identical.
fundamental effect of passive solidarity- liability of
Indivisibility vs Solidarity each debtor for the payment of the entire obligation,
with the consequent right to demand reimbursement
Prestation which nature Legal tie or from the others for their corresponding shares, once
constitute the vinculum, and payment has been made.
object of the consequently to
obligation. the parties of
Passive solidary debtor Surety
the obligation.
Both are solidarily liable to the creditor for the
Plurality of requisites Plurality of
payment of the entire obligations
subjects not subjects is
required indispensable. Liable for the payment of Liable for the debt of
the debt of another but another.
Terminated Effect of Remains even
also for the payment of a
when the breach though there is
debt which is properly his
obligation is a liability on the
own.
converted into part of the
one of indemnity debtors because If he pays the entire If the surety pays the
for damages of breach. obligation, he has a right entire obligation, he
to demand acquires a right to
reimbursement from his reimbursement from the
Kinds of solidarity co-debtor of their share principal debtor of the
• active – among creditors in the obligation. entire amount he has
◦ tie or vinculum existing among several paid.
creditors of one and the same obligations
by virtue of which each of them, in relation An extension of time An extension of time
to his co-creditors, possesses the granted by the creditor to granted by the creditor to
character of a creditor only with respect to one of the solidary the principal debtor
his share of the obligation but in relation to debtors without the would release the surety

23
Obligations – Midterms reviewer
knowledge of the other from the obligation. remains
solidary debtors would
not have the effect of SOLIDARY DEBTOR’S DEFENSES:
releasing the latter from
their obligation. 1. Those derived from the NATURE OF THE
OBLIGATION. This is actually a
Some Instance Where the Law Imposes Solidary COMPLETE DEFENSE.
Liability: Example: lack of consideration or cause;
1. Obligation arising from quasi-delict; illegal consideration; extinguishment of the
2. Obligation arising from quasi-contracts; obligation; non-fulfilment of the suspensive
3. Legal provisions regarding the obligations of condition; statute of frauds, when there are
devisees and legatees; vices of consent on the part of ALL debtors,
4. Liability of the principals, accomplices, and etc.
accessories of a felony; 2. Those PERSONAL TO THE DEBTOR sued.
5. Bailees in commodatum. This is a COMPLETE DEFENSE generally,
but if the defense is non-fulfilment yet of a
Note: A moral wrong cannot be divided. condition or the non-arrival yet of the term, this
is only a PARTIAL DEFENSE.
Some Consequences of Joint Liability: Example: vitiated consent, incapacity to
1. Vitiated consent on the part of one debtor does not give consent, non-fulfilment of condition
affect the others; imposed regarding his share, non-arrival of
2. Insolvency of one debtor does not make others term regarding his share.
responsible for his share; 3. Those personal to others which may be a
3. Demand by the creditor on one joint debtor puts PARTIAL DEFENSE regarding the shares
him in default, but not the others since the debts are of others involved.
distinct;
4. When the creditor interrupts the running of the DIVISIBLE/INDIVISIBLE
prescriptive period by demanding judicially
from one of them, the others are not affected; Divisible Indivisible
5. Defences of one debtor are not necessarily condition is susceptible condition is not
of partial realization or susceptible to partial
available to the others. performance without the realization or
obligation in essence performance because,
being changed. otherwise, the essence of
Effect of Loss or Impossibility of Performance the obligation will be
1. NOT due to the fault of the solidary debtors changed.
• Obligation is extinguished
2. Due to the fault of one of the solidary If separated into parts, its If separated into parts, its
debtors essence is not changed essence is changed or its
• the obligation is converted into an or its value is not value decreased
obligation of indemnity for damages, but decreased disproportionately.
the solidary character of the obligation disproportionately,
remains because each of the
3. Fortuitous event parts into which it is
• the obligation is converted into an divided are
obligation of indemnity for damages, but homogeneous and
the solidary character of the obligation analogous to each other
24
Obligations – Midterms reviewer
as well as the thing itself. ◦ when the law provides for its indivisibility
◦ it is so intended by the parties

True test of divisibility: WON the obligation is NOT TO DO

susceptible of partial compliance. • The determination of the character of the
obligation will depend upon the sound
***The susceptibility of partial compliance should be discretion of the court
understood in the sense of the possibility of realizing
the end or purpose which the obligation seeks to
attain. (Applies to obligations to give, to do, or not to
do) PENAL CLAUSE

Effect of illegality of a part of a contract

Purposes of penalty:
• insure the performance of the obligation
1. Divisible contract – the illegal part is void and (funcion coercitiva o de garantia); general
unenforceable, meawhile, the legal part is valid and purpose
enforceable (NCC, Art. 1420). • liquidate the amount of damages to be
2. Indivisible contract – the entire contract is void and awarded to the injured party in case of breach
unenforceable of the principal obligation (funcion
liquidatoria); compensatory; pre-agreed
TO GIVE amount for the damages
The divisibility or indivisibility of the obligation is the • to punish the obligor in case of breach of the
most important factor. principal obligation (funcion estrictamente
• definite & indivisible object- not susceptible of penal); punitive
partial fulfillment (Absolute rule)
• divisible object- susceptible of partial Kinds of penalty
performance. except:
◦ when the law provides for its indivisibility As to origin
which may be inferred or presumed either; Legal Conventional
▪ from the fact that although the object
of the obligation can be separated in Constituted by law Constituted by
parts, yet each part constitutes a agreement of the parties
necessary complement of the other As to purpose
parts
▪ from the very purpose of the obligation Compensatory Punitive
itself (for reparation)
◦ it is so intended by the parties Established for the Established for the
▪ express purpose of indemnifying purpose of punishing the
▪ implied the damages suffered by the obligor or debtor in
TO DO the obligee or creditor in case of breach
• indivisible prestation- not susceptible of partial case of breach
fulfillment (Absolute rule)
◦ In order to determine whether the As to Effect
prestation is divisible or not, the object or Subsidiary/Alternative Joint/Cumulative
purpose of the obligation must always be
considered Only the penalty may be both the penalty and the
▪ it is divisible when it has for its demanded in case of principal obligation may
object... breach be demanded
1. the execution of a certain number or days
of work,
2. the accomplishment of work by metrical
units; or
3. the accomplishment of analogous things
which by their nature are susceptible of
partial performance.

• Divisible prestation- susceptible of partial

fulfillment, with certain qualifications.

25