Law Civil Code of the Philippines

 Mass of obligatory rules established for the -based mainly on Civil Code of Spain
purpose of governing the relations of persons in - 2270 articles
society (General Sense) - took effect in the Ph on December 7, 1889 and was
 (Specific Sense) approved as RA 386 on June 18, 1949 and took effect on
- Rule of conduct August 30, 1950.
- Obligatory (Must and mandatory)
I. Persons and Family Relations
- Promogulated by Legitimate authority
II. Property
- Observance (common observance & benefit)
III. Succession
Philippine Constitution- basic law IV. Obligations & Contracts

Sources of Law Law of Obligations & Contracts- founded on RA 386

(civil code of the phil.)
 Constitution- fundamental law or supreme law
or highest law Obligation
 Legislation- legal rules passed by senate and
- Act or performance which law will enforce
house of representatives. Act passed by legislature;
- Juridical Necessity because, in case of non-
enacted law or statue law.
compliance, the courts of justice may be called
 Administrative or executive issuances/orders-
upon by the aggrieved party to enforce its
issued by administrative officials under legislative
fulfillment or in default thereof, the economic
authority (quasi legislative functions)
value that it represents.
 Judicial decision/jurisprudence- decision of the
- If it’s not enforceable, people can be
courts, especially SUPREME COURT.
disregarded with impunity (exemption of punish
Doctrine of precedent or stare decisis- Decisions of
Right- power which a person has under law, to
supreme court on a point of law binding on all
demand
subordinate is called
Wrong- act or omission (cause of action)
Philippine Court System
Kinds of Obligation (SECONDARY)
 Supreme Court- highest
As to subject matter:
 Court of Appeals- (cases who lose in RTC)
 Court of Tax Appeal- special court of tax (BIR)  Real Obligation- (obligation to give) must be a
 Sandiganbayan- anti graft and corruption (for thing
governors, senators, mayors.) (NO PRES AND VP)  Personal Obligation- (obligation to do or not to
 Regional Trial Court do) must be an act
 Municipal Trial Court - Positive Personal Obligation- obligation to do
 Shari’a Courts- properties (muslims in - Negative Personal Obligation- obligation NOT
Mindanao) to do.

Classification of Law As to person obliged:

As to subject matter:  Unilateral- independent

 Bilateral- both parties
Public Law- body of legal rules which regulates the
rights and duties arising from relationship of the state As to Enforcement:
to the people
 Natural Obligation- not being based on positive
- Criminal Law
law, but on equity and natural law.
- International Law
- Constitutional Law  Civil Obligation- obligation which gives the
obligee/creditor the right under the law to
Private Law- body of rules which regulates the relation enforce their performance in courts of justice.
of individuals with one another for purely private ends
- Civil Law (Persons, property, obligation & contracts)
-Remedial Law
-Commercial Law
Essential requisites of an obligation
 Passive Subject- (debtor or obligor) person who
is bound to the fulfillment of obligation
 Active Subject- (creditor or oblige) person who
is entitled to demand the fulfillment of
obligation
 Object or Prestation- (subject matter of
obligation) conduct required to be observed by
debtor (to give to do and not to do)
 Juridical or Legal Tie (efficient cause) source of
obligation; binds and connects the parties to
the obligation
Sources of Obligation
Law- when they are imposed by law itself
- Obligation of spouse (family code of the ph)
-Obligation of employers (labor code of the ph)
-Easements/servitudes (property, civil code)
Contracts- governed by the agreement of parties. Not
contrary to law, morals, good customs, public order or
public policy.
 Binding Force- have the same binding effect of
obligations imposed by laws
 Requirement of valid contract
 Breach of Contract- takes place when party fails
or refuses to comply
- Compliance of Good Faith- compliance or
performance in accordance with the
stipulations or terms of the
contract/agreement.
Quasi-contracts- arise from lawful voluntary and
unilateral acts which are enforceable
 Negotiorum Gestio- voluntary management of
property/affairs without the consent of another
 Solutio Indebitti- juridical relation which is
created when something is received when there
is no right to demand (given mistakenly)
Crimes/act/omission punished by law or DELICTS- when
they arise from civil liability which is the consequence of
criminal offense. Person must be criminally and civilly
liable.
 Criminal Liability- towards the person/victim
(for compensation)
 Criminal Liability- towards the state (for jail and
imprisonment)
Quasi-delicts- act or omission by a person which causes
damage to another in his person, property or rights
giving rise to an obligation to pay for the damage done.
 There must be act or omission
 Fault or negligence
 Damage caused
 No pre-existing contractual relation between
parties
 Only civil liability
 Negotiorum Gestio- voluntary management of
property/affairs without the consent of another
 Solutio Indebitti- juridical relation which is
created when something is received when there
is no right to demand (given mistakenly)
NATURE AND EFFECT OF OBLIGATIONS
Specific or determinate- particularly designated,
physically segregated from others of the same class
(cannot be replaced)
Generic or indeterminate- refers only to class or genus
which it pertains and cannot be pointed out with
particularly (Can be replaced)
Types of “Fruits”
 Natural- spontaneous products of the soil, and
the young and other products of animals.
(without human labor)
 Industrial- produced by lands of any kind
through cultivation or labor
 Civil- derived by juridical relations
Real Right- the right or interest of a person over a
specific thing w/o passive subject (ownership,
possession)
Personal Right- right and power of a person to demand
from another. Obligation to give/to do/not to do of
passive subject.
Accession- fruits of a thing or additions to or
improvement upon a thing
Accessories- joined to or included with the principal
thing for embellishment, better use or completion
Remedies of creditor in real obligation
 Specific Real Obligation- to deliver determinate
thing
- to compel specific performance, to recover
damages
 Generic Real Obligation- to deliver a generic
thing
- to ask for performance of the obligation, to
ask that obligation be complied with by another
at expense of debtor and to recover damages
Remedies of creditor in personal obligation
  Obligation to do- obligation must be performed
at debtor’s expense and to recover damages
 Obligation not to do- undone at his expense and
to recover the damages
Breach of Obligation
VOLUNTARY BREACH
 Default/delay- incur from the time the oblige
judicially or extra-judicially demand fulfillment
(not mere notice)
Ordinary delay- merely failure to perform an
obligation on time
Legal delay/ default/mora- failure to perform
obligation on time which failure constitute
breach of obligation
Kinds of Delay
- Mora solvendi- delay of debtor
- Mora accipiendi- delay of creditor
- Compensation morae- reciprocal obligations
 Fraud (deceit/dolo)- intentional evasion of the
normal fulfillment of an obligation
- Incidental fraud (dolo incidente)- obligation
already existing because of contract
- Causal fraud (dolo casuante)- employed in
execution of a contract.
 Negligence (fault/culpa)-omission of diligence
which is required by the nature of obligation,
but no malice.
-Culpa contractual- negligence in contractual
obligation
- Culpa Aquiliana- (civil negligence)- between
parties with no pre-existing contract
- Culpa Criminal- negligence resulting to
omission of crime
INVOLUNTARY BREACH
 Fortuitous Event- events which cannot be
foreseen or which though foreseen is inevitable
- Ordinary- common events
- Extra-ordinary- uncommon/note have
reasonably foreseen
CLASSIFICATION OF OBLIGATIONS
Pure & Conditional
 Pure- not subject to any condition and no
specific date is mentioned for its fulfillment
(immediately demandable)
 Conditional- one whose consequences are
subject in one way or another to the fulfillment
of condition
- Future and uncertain- must be uncertain
- Past but unknown (infra)- past and unknown
to parties
Principal kinds of condition
- Suspensive condition- fulfillment of condition
will give to obligation (cond. B4 obli.)
- Resolutory condition- fulfillment will extinguish
obligation (cond. STOPS obli.)
2 kinds of impossible condition
- Physically impossible- cannot exist cannot be
done
- Legally impossible- contrary to law, morals,
good ctusoms, public order
- Relatively impossible- possible for some,
impossible for others
Positive condition- happening of an event at
determinate time
Negative condition- an event will not happen at
determinate time
Kinds of loss
 Physical loss- when thing perishes
 Legal loss- when thing goes out of commerce,
illegal
 Civil Loss- when thing disappears in such way
that its existence is unknown
Obligation with a Period
- One whose effects or consequences are
subjected in one way or another to the
expiration or arrival of said period or term
Kinds of period
As to effect:
- Suspensive- obligation begins from day certain
upon the arrival of period
- Resolutory- valid up to a day certain and
terminates upon arrival of period
As to source:
- Legal period- provided by laws
- Conventional/voluntary period- agreed by
parties
- Judicial period- it is fixed by the court
As to definiteness:
- Definite period- known when it will come
- Indefinite period- unknown when it will come
Computation of term of period
 - Legal Period- “year” should be understood as 12
months; “months” 30 days unless it refers to
specific month
-“Day” 24 hrs; sunrise to sunset; “Night”- Sunset
to sunrise
- Calendar month- month in the calendar without
regard to the number of days it may
 Fortnite – 3 weeks
 Score – 20 years
 Millennium – 1000 years
 Century – 100 years
 Decade – 10 years
 Anniversary – 1 year
Alternative Obligation
- One wherein various prestations are due but
the performance of one of them is sufficient.
Kinds of Obligation According to Object
1. Simple Obligation – One where there is only one
prestation (obliged or obligation)
2. Compound Obligation – One where there are
two or more prestations
a. Conjunctive Obligation – One where there
are several prestations and all of them are
due.
b. Distributive – One where there are two or
more prestations is due.
(1) Alternative Obligation – One where
several prestations are due but the
performance of once is sufficient.
(2) Facultative Obligation – One where only
one prestation is due but the debtor
may substitute another.
Communication of Notice that Choice has been made.
1. Effect of Notice – Until the choice is made and
communicated, the obligation remains
alternative.
2. Proof and Form of Notice – The burden of
proving that such communication has been
made is upon him who made the choice.
Facultative Obligation- is one where only one
prestation has been agreed upon the obligor may
render another in substitution.
Joint & Solidary Obligation
Joint- each of creditor has right to demand and each
debtor is bound to render compliance with his
proportionate part of the prestation
Solidary- creditor has right to demand; debtor is bound
to render compliance with the entire prestation; co-
debtor is liable only for his share
Individual obligation- one where there is only 1
obligor/oblige
Collective obligation- oblige and obligor are 2 and/or
more (could be joint and solidary)
Divisible and Indivisible Obligation
 DIVISIBLE OBLIGATION – in its delivery or
performance, it is capable of partial fulfillment
 INDIVISIBLE OBLIGATION – not capable of
partial fulfillment
Kinds of division
- Qualitative
- Quantitative
KINDS OF INDIVISIBILITY
1. LEGAL INDIVISIBILITY – specific provision of law
declares as indivisible which by their nature are
divisible
2. CONVENTIONAL INDIVISIBILITY – will of the
parties makes indivisible which by their nature
are divisible
3. NATURAL INDIVISIBILITY – object or prestation
does not admit of division
Obligation with a Penal Clause
 PRINCIPAL OBLIGATION – can stand alone by
itself and does not depend for its validity and
existence upon another obligation
 ACCESSORY OBLIGATION – attached to a
principal obligation; cannot stand alone
 OBLIGATION WITH A PENAL CLAUSE – contains
an accessory undertaking to pay a previous
stipulated in case of breach of the principal
prestation
- induce fulfillment
 PENAL CLAUSE – accessory undertaking
attached to an obligation
- In case of breach, nonfulfillment or
irregularity of obligation
Kinds of penal clause
As to origin:
 - Legal penal clause- provided by law  Indemnity- security or protection against loss or
- Conventional penal clause- stipulations of both other financial burden
parties
As to purpose:
- Compensatory penal clause- penalty takes place
of damages
- Punitive penal clause- penalty is imposed
merely as punishment for breach
As to demandability/effect:
- Subsidiary/alternative penal clause- when only
the penalty can be enforced
- Joint/cumulative penal clause- both principal
obligation and the penal clause can be enforced

TERMS TO BE UNDERSTOOD IN OBLI&CON

 Debtor/ Obligor- with obligation

 Creditor/oblige- right to demand
 Impunity- exemption from punishment
 Quasi- seemingly/slight
 Delicts- wrong/violation
 Contract of Carriage- transportation from point-
point
 Breach of obligation- cause of obligation
 For lease- for rent
 Compel- to force
 Genus nunquam perit- genus never perishes
 Revised Penal Code (RPC)- felony/crime
 Traffic rules- ordinance
 Reckless imprudence resulting to:
 Homicide- someone died
 Physical injury- physically injured
 Damage to property- destroyed
property/damaged.
 Mutuum- simple loan
 Force majeure- events without human (acts of
god)
 Usury- contracting for receiving interest in
excess of the amount allowed by law for the
loan or use of money, goods, credtis
 Presumption- meant the inference of a fact not
actually known arising from its usual connection
with another which is known or proved.
 Protestative condition- condition suspensive in
nature and which depends upon the sole will of
one of the contracting parties.
 Wiretapping- recording of communication w/o
consent
 Abscond- leave hurriedly and secretly