Obligations

A person may still be civilly liable although not criminally liable

True. If he committed an act na exempted.
 
There may be an obli that is both joint and solidary.
True. If there are Debtors, joint creditors can be solidary.
 
Contracts Perfected by mere consent.
True. Depends on type of contract.
 
A contract is void if the object did not exist at the time of
perfection.
False. The object can be available in the future. 
 
Also Read up on:
1161 Criminal obligations
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. (1092a)
1163 DOAGFOAF
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. (1094a)
1167
Article 1167. If a person obliged to do something fails to do it, the same shall be
executed at his cost.
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. (1098)

1182
Article 1182. When the fulfillment of the condition depends upon the sole will of the
debtor, the conditional obligation shall be void. If it depends upon chance or upon the
will of a third person, the obligation shall take effect in conformity with the provisions
of this Code. (1115)
1169 DEMAND
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.
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.

(1100a)

 
 
 
 
 
 
 
1199 to 1206 ALTERNATIVE OBLIGATIONS
If choice with debtor or cred.
Article 1200. The right of choice belongs to the debtor, unless it has been expressly
granted to the creditor.
The debtor shall have no right to choose those prestations which are impossible,
unlawful or which could not have been the object of the obligation. (1132)
Article 1205. When the choice has been expressly given to the creditor, the
obligation shall cease to be alternative from the day when the selection has been
communicated to the debtor.
 
Joint solidary
Mechanism if there is enforcement as to joint or slolidary

Penal Clause. WON cred can still claim damages when enforce
penalty? (damages: refuse to pay penalty; guilty of fraud)
>accessory obligation
>stipulated indemnity or to perform a stipulated prestation incase of breach
-insure performance of principal obligation -liquidate amount of damages
-punish obligor
>no need to pay damages unless through fault of debtor
 
 
1. to provide for liquidated damages
2. strengthen coercive force of the obligation by the threat of greater
responsibility in the event of breach
 
can the court lessen the penalty?
1229 -Yes, if principal obligation has been partly complied with. Penalty may
be reduced if its iniquitous or unconscionable.
when can a court assign a term?
-nature/circumstances infer a period
-upon the will of the creditor
-means permit him to do so
Facultative obli
Alternative – several prestation, but only need to perform 1 or some. No delay in alternative
obligations.
-personal negative ob – no del. Negative con – del. Alt ob – no. Ob to do – no.
-choice belongs to debtor but may be expressly granted to C or 3rd
Simple – 1 prestation, give that
Complex/cumulative – several prestations, give all
Facultative – there is a prestation, but it can be substituted
right to choose sub: Debtor, may be cred or 3rd

>should not be contrary to law, morals, good customs, pp, po.

>shouldn’t be impossible,
>not contemplated to be the object of object the obligation. never contemplated to be part of
the obligation
>cant be part of one prestation and part of another,
> d&d but enforcement dep upon C; when term is fixed solely for the benefit of D
-choice should be COMMUNICATED to be d&d. It becomes simple.
 
 
 
Major modes of extinguishing obligations
-payment/performance
Special modes of payment:
-application of payments
-payment by cession
-tender of payment and consignation TOPAC
-dacion en pago 
-loss of thing due
-condonation/remission
-confusion/merger of rights
-compensation
-novation
Concept on Payment
-Delivery of money + performance of an obligation
-Identity (only agreed upon), Integrity (complete delivery), Indivisibility
-WHO, WHOM, WHERE
Effect of payment of 3rd person.
GR: Creditor is not bound to accept payment or performance by a third
person.
ER: When payment is made by 3rd person who has an interest in the
fulfillment of the obligation.
a. With knowledge and consent of debtor: third person can recover
whole amount
b. Without K.C of D or against will of D: 3rd person can recover only
insofar as the payment had been beneficial to debtor
Dacion en Pago.
Reqs: existing obligation, alienation/transfer of asset, satisfaction of
money obligation, need not be insolvent
-ER to identity
-D cant pay cash, proposed to C something else; C becomes buyer.
Payed.
-A thing is considered as the equivalent of the obligation
 
Payment by cession.
-Alienation is subject to public bid
-lots of debts/plurality of creditors
-partial/relative insolvency of D
-no longer has sufficient liquid assets to pay obligations
-acceptance of cession by Cs
>ownership not transferred to cred unless cred wins bid

Consignation.
1. Tender of payment (TOP)
-Capability and intent of D to pay C. Extrajudicial act.
-C refuses payment, go through consignation
2. Consignation
-Deposit of payment in a competent court. Principal act.
-Judicial.

a.TOP
b. 1st notice to C made with TOP.
c. Court has money. Expenses against C
e. Notice 2
When does consignation operate to extinguish obli.
-Effect of extinguishment=after court approval
-Effect consig when C refuses w/o just cause
Compensation.
1278. When two persons are creditors of each other. Quits na tayo.
Compensate til the extent of amount owed. Obli exists reg balance.
Reqs:
1. 2 parties. Principal creds and debtors of each one.
2. Both debts must consist of the same quality/kind
3. Both debts must be due
4. Both liquidated and demandable
5. No retention or controversity commenced by third persons over either
of the debts, and communicated in due time to the debtor
6. Compensation must not be prohibited by law
7. Compensation is not waived

A. Legal
B. Voluntary
C. Judicial
D. Facultative
 
Novation.
-Substitution ot change of an obligation by another, resulting to its
extinguishment or modification, either by:
1. Changing its object or principal conditions (real/objective)
2. Substituting the person of the debtor (personal/subjective)
3. Subrogating a third person on the rights of the cred (personal/sub)
4. Mixed real + personal
Reqs of novation
1. Valid old obligation
2. Valid new obligation
3. Substantial diff of 1&2
4. Capacity of the parties
5. Animus novandi (intent to extinguish old and make new)
Make more burdensome = novation. Not burdensome = modification.
No novation if in criminal court already.
Insolvency of new D will not make old D liable. Ex: insolvency is known
na.
Novation will extinguish old accessories unless it benefits 3rd person.
If new is void, old will be valid unless they intend to extinguish old too.
Novation is void if original obligation is void. Unless ratified.
Novation happens if the condition in old is fulfilled.
Subrogation: 3rd party gets rights of creditor. 1301. Consent of all
parties.
Contracts
-obli arising from contracts have the force of law between contracting
parties and should be complied with in good faith
-1305: meeting of minds whereby one binds himself, with respect to the
other, to give something or to render some service
-1306: parties may establish SCTC stips, clauses, terms, conds provided
they are not contrary to LaMoGPP
-obs from cons may be presumed
 
When consent is established.
OFFER + ACCEPTANCE = offer complete.
Offer (by offeror) - definite, complete, directed to offeree/world, intention
Acceptance (by offeree) - absolute+unconditional, directed to offeror
only, intention to be bound, made w/in reasonable time, communicated
to offeror
-Both can be withdrawn subject to exceptions
*Cognition Theory

Concept on Mistake
-Vice of consent
Kinds of mistake as to object/substance
1. Error in corporate - void
2. Error in substansya (error in thing itself) - voidable
3. Error in extrinsic attributes - voidable
4. Error in quantitate - voidable
Siz mahaba pa 
Object of the contract future things
-Things to be made in the future can be object of contracts. Future
inheritance cannot be. 
Lack of authority may render a contract void.
1. Unenforcable contract. 
 
2. “May render void” true bec contract where involves
sale of real prop by agent must be in writing not cover form.
Forms of contract - chapter 3. 
 
================
(Essay questions: tips)
1 . 1170
In order for a debtor to be lia for dam for neg.
neg must be existent
Is there an implication for negligence from driver.
Look for negligence.
If without statement of negligence of a party.
Answer depends on negligence present in facts.
Contractual: negligence of employee is negligence of employer
(conclusively)
Aquiliana/QD: negligence of employee is negligence of employer (prima
facie) 
 
2. 1174
Article 1174. Except in cases expressly specified by the law, or when it is otherwise
declared by stipulation, or when the nature of the obligation requires the assumption
of risk, no person shall be responsible for those events which could not be foreseen,
or which, though foreseen, were inevitable. (1105a)
 
Exemptions for Fortuitous Events
-Generic things like money
1. Law. 2. Stipulations. 3. Assumption of risk.
Generally not lia for fulfillment if due to FE.
1165 (check table we made in obli)
Article 1165. When what is to be delivered is a determinate thing, the creditor, in
addition to the right granted him by article 1170, may compel the debtor to make the
delivery.
If the thing is indeterminate or generic, he may ask that the obligation be complied
with at the expense of the debtor.
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. (1096)
 
Know what is Legal delay (1169)
-reqs: due & demandable, D doesnt perform obli, makes judicially/extra
deman
-Delay w/o demand: Provided by law, stipulated by parties, time is
important motive, beyond power to perform (d)

3. 1191resulotory condition
Developer will allow x to occupy room.
X must be the only one to use room
Contract done.
X violated condition.
X sold the prop to y.
Can the developer now avoid the contract?
Ans: Extinguished obli of developer. Can regain property. Tacit resu
cond
 
 
4.Alternative obli
Can a debtor incur delay? 
No. Because must become simple obli
-personal negative ob – no del. Negative con – del. Alt ob – no. Ob to do – no.
Once chosen then it should be communicated.
 
5.Penal clause
Can cred claim both penalty and damages?
Yes. Pay damages when he refuses to pay penalty + guilty of fraud
 
6. Subrogation
When does 3rd party acquire rights by subrogation.
Know those who are real parties to the contract
a. With knowledge and consent of debtor: third person can recover
whole amount
b. Without K.C of D or against will of D: 3rd person can recover only
insofar as the payment had been beneficial to debtor
3rd party acquires the rights of the creditor since he payed for D. 
 
7. Concept of Formal contracts.
-Need a specific form to be perfected
-Chapter 3 of contracts “In writing” 
 
8.Acceptance.
OFFER + ACCEPTANCE = offer complete definite.
Offer (by offeror) - definite, complete, directed to offeree/world, intention
Acceptance (by offeree) - absolute+unconditional, directed to offeror
only, intention to be bound, made w/in reasonable time, communicated
to offeror
-Both can be withdrawn subject to exceptions
*Cognition Theory
9. Question about Negligence involving a car accident and
fortuitous event.
 
10.Perfection of contract through correspondence
Cognition theory. Manifestation, sending, receiving, knowledge (read)
Note other theories. Manifestation, expedition, reception, cognition
 
11.Concept on Resolution
-cause: failure of one party to comply in a reciprocal contract
-court gives an extension for performance
-principal not subsidiary
 
12Right of first refusal vs option contract.
Right of first refusal: Creditor tells you that he’ll sell a property you are
leasing in the future, and that he will offer it to you first. Cred decided to
sell and offer, but not to you. Decided to sell it to someone else. Your
remedy is action for rescission. Ex: lease of a property
Option contract: gives favor to a party whether to celebrate a contract or
not. Fixed period. Ex: reservation for school
 
 
 
13. Concept on Novation; obli arising from crime.
Instance when there can be compromise.
-Substitution ot change of an obligation by another, resulting to its
extinguishment or modification, either by:
1. Changing its object or principal conditions (real/objective)
2. Substituting the person of the debtor (personal/subjective)
3. Subrogating a third person on the rights of the cred (personal/sub)
4. Mixed real + personal
Reqs of novation
1. Valid old obligation
2. Valid new obligation
3. Substantial diff of 1&2
4. Capacity of the parties
5. Animus novandi (intent to extinguish old and make new)
Make more burdensome = novation. Not burdensome = modification.
No novation if in criminal court already.
Insolvency of new D will not make old D liable. Ex: insolvency is known
na.
Novation will extinguish old accessories unless it benefits 3rd person.
If new is void, old will be valid unless they intend to extinguish old too.
Novation is void if original obligation is void. Unless ratified.
Novation happens if the condition in old is fulfilled.
 
14.When is there’s perfected contract,
According to Article 1391. Consent is manifested by the meeting of the
offer and the acceptance upon the thing and the cause which are to
constitute the contract. The offer must be certain and the acceptance
absolute. A qualified acceptance constitutes a counter-offer.
Acceptance made by latter or telegram does not bind the offerer except
from the time it came to his knowledge. The contract, in such case, is
presumed to have been entered into in the place where the offer was
made.

Therefore, Contracts are perfected from the moment that there is a

manifestation of the concurrence between the offer and the acceptance
with respect to the object and the cause which shall constitute the
contract.
OFFER + ACCEPTANCE = offer complete definite.
Offer (by offeror) - definite, complete, directed to offeree/world, intention
Acceptance (by offeree) - absolute+unconditional, directed to offeror
only, intention to be bound, made w/in reasonable time, communicated
to offeror
-Both can be withdrawn subject to exceptions
*Cognition Theory

 
15. Dean Offer to Antonio a house and Lot for 5M complete.
To pay in cash.
Antonio accepts it, but says “but can I pay in installments?”
Dean: ok you can pay in installments
Not push through sale, because Dean sold to another person.
Because Tino wanted property, claim for property.
Is the contract perfected?
Ans: Not perfected because no manner of installments provided.
note: Sale of real property can be in any form
No, becaus