Reviewer in Law 101

 Obligations, Elements, Sources

 Obligation is a juridical necessity to give, to do or not to do.
 Elements:
 Active Subject (Creditor)
 Passive Subject (Debtor)
 Object or Prestation
 Juridical tie
 Sources:
 Law;
 Contracts;
 Quasi-contracts;
 Act or omissions punishable by law
 Quasi-delicts
 Civil vs. Pure Obligations
 Obligations which give to the creditor or obligee a right of action in courts of justice to enforce their performance are
known as civil obligations.
 A pure obligation is one which is not subject to any condition and no specific date is mentioned for its fulfi llment and
is, therefore, immediately demandable.
 Requisites of Negotiorium Gestio
 When the property or business is not neglected or abandoned, in which case the provisions of the Civil Code regarding
unauthorized contracts (Arts. 1317, 1403[1], 1404.) shall govern; or
 If, in fact, the manager has been tacitly authorized by the owner, in which case the rules on agency shall govern.
(Art.2144.)
 Elements of Quasi Delicts
 There must be an act or omission by the defendant;
 There must be fault or negligence of the defendant;
 There must be damage caused to the plaintiff;
 There must be a direct relation or connection of cause and effect between the act or omission and the damage; and
 There is no pre-existing contractual relation between the parties.
 Kinds of Fruits
 Natural Fruits
 Industrial Fruits
 Civil Fruits
 Fortuitous Events
 Force Majeure - an event caused by the legitimate or illegitimate acts of persons other than the obligor; there is human
intervention.
 Fortuitous Event – an occurrence or happening which could not be foreseen or even if foreseen, is inevitable; absolutely
independent of human intervention; act of God.
 Requisites: (IU – IF)
 Independent of the human will (or at least of the obligor’s)
 Unforeseen or unavoidable
 Of such character as to render it impossible for the obligor to comply with his obligation in a normal
manner
 Obligor – free from any participation/aggravation of the injury to the obligee (no negligence or
imprudence)
 Delay , Kinds and Requisites
 Delay – (mora) default or tardiness in the performance of an obligation after it has been due and demandable;
 Default / Delay in negative obligation is not possible. (In negative obligation, only fulfillment and violation are possible)
 Kinds of Delay
 Mora Solvendi – delay on the part of the debtor to fulfill his obligation;
 Requisites:
 failure of the obligor to perform obligation on the DATE agreed upon;
 demand (judicial/extrajudicial) by the creditor;
 failure to comply with such demand
 Effects:
 debtor – liable for damages and interests
 debtor – liable for the loss of a thing due to a fortuitous event
 Mora Accipiendi – delay on the part of the creditor to accept the performance of the obligation;
 Effects:
 creditor – liable for damages
  creditor – bears the risk of loss of the thing
 debtor – not liable for interest from the time of creditor’s delay
 debtor – release himself from the obligation
 Compensatio Morae - delay of the obligors in reciprocal obligation.
 Effect: the default of one compensates the default of the other; their respective liabilities shall be offset
equitable.
 Fraud – (dolo) deliberate intentional evasion of the faithful fulfillment of an obligation
 Negligence – (culpa or fault) voluntary act or omission of diligence, there being no malice, which prevents the normal
fulfillment of an obligation;
 Conditional Obligation – an obligation which depends upon a future or uncertain event, or upon a past event unknown to
the contracting parties; an obligation subject to a condition.
 Suspensive Obligation – its fulfillment gives rise to an obligation; the demandability of the obligation or the effectivity
of the contract can take place only after the condition has been fulfilled.
 Resolutory Obligation – its happening extinguishes the obligation which is already existing;
 Obligation with a Period
 General Classifications:
 Ex Die / Suspensive Period – from a day certain give rise to the obligation; suspensive effect.
 In Diem / Resolutory Period – arrival of a term certain terminated the obligation; resolutory effect.
 Joint and Solidary Obligation
 Joint – entire obligation is to be paid or performed proportionately by the debtors;
 Solidary – each one of the debtors are obliged to pay the entire obligation, each one of the creditors has the right to
demand from any of the debtors, the fulfillment of the entire obligation;
 Alternative Obligation – an obligation where the debtor is required to fulfill ONLY ONE of the several prestations to
extinguish the obligation.
 Facultative Obligation – an obligation where the debtor is bound to perform ONLY ONE prestation, with a reserved right to
choose another prestation as SUBSTITUTE for the principal
 Periods/conditions which depend upon the will of the debtor
 If the suspensive condition depends upon the sole will of the debtor, then the obligation is void.
 If the resolutory condition depends upon the sole will of the debtor, then the obligation is valid
 Benefit of period – General rule: When a period has been agreed upon for the performance or fulfilment of an obligation, it
is presumed to have been established for the benefit of both the creditor and the debtor.

 for the benefit of the debtor; he cannot be compelled to perform the obligation before the arrival of the period and may
perform the obligation in advance.
 for the benefit of the creditor; he cannot be compelled to accept the performance before the arrival of the period and may
demand the performance of the obligation in advance
 Effect of insolvency to the benefit of period – the debtor shall lose every right to make use of the period
 Indivisibility of an obligation in relation to solidarity – ART. 1210. The indivisibility of an obligation does not necessarily
give rise to solidarity. Nor does solidarity of itself imply indivisibility.
The differences are:
 Indivisibility refers to the prestation, while solidarity refers to the juridical or legal tie that binds the parties;
 In indivisible obligations, only the debtor guilty of breach of obligation is liable for damages (Arts. 1209, 1224.), thereby
terminating the agency, while in solidary obligations, all of the debtors are liable for the breach of the obligation
committed by a co-debtor (Art. 1221.), for solidarity among them remains;
 Indivisibility can exist although there is only one debtor and one creditor, while in solidarity, there must be at least two
debtors or two creditors (Arts. 1207, 1208.); and
 In indivisible obligations, the others are not liable in case of insolvency of one debtor, while in solidary obligations, the
others are proportionately liable. (Art. 1217.)
 Remission of obligation
 Period vs. condition
 Period – a future and certain event upon the arrival of which, the obligation subject to it either arises or is extinguished
 Condition – fact or event uncertain to come
 Dacion en pago or dation in payment (adjudication or dacion en pago) – the conveyance
of ownership of a thing by the debtor to creditor as an accepted equivalent of performance of a monetary obligation.
 Garnishment – the proceeding for the purpose of subjecting a debtor’s credit to the payment of his debt to another.
 Legal tender – Legal tender is that currency which a debtor can legally compel a creditor to accept in payment of a debt in
money when tendered by the debtor in the right amount.
 Payment by cession – Payment by cession is another special form of payment. It is the assignment or abandonment of all the
properties of the debtor for the benefit of his creditors in order that the latter may sell the same and apply the proceeds thereof
to the satisfaction of their credits.
 Tender and consignation
 Tender of payment is the act, on the part of the debtor, of offering to the creditor the thing or amount due. The debtor
must show that he has in his possession the thing or money to be delivered at the time of the offer. It is an act preparatory
to consignation, which is the principal, and from which are derived the immediate consequences which the debtor desires
or seeks to obtain.
 Consignation is the act of depositing the thing or amount due with the proper court when the creditor does not desire, or
refuses to accept payment, or cannot receive it, after complying with the formalities required by law. It is always judicial
and it generally requires a prior tender of payment which is by its very nature extrajudicial.
 Condonation of debt – Condonation or remission is the gratuitous renunciation by the creditor of his right against the debtor
resulting in the extinguishment of the latter’s obligation in its entirely or in that part of the same to which the renunciation
refers.
 Confusion or Merger – Confusion or merger is the meeting in one person of the qualities
 of creditor and debtor with respect to the same obligation.
 Novation – Novation is the total or partial extinction of an obligation through the creation of a new one which substitutes it.
It is the substitution or change of an obligation by another, which extinguishes or modifies the first, either by changing its
object or principal conditions, by or substituting another in place of the debtor, or by subrogating a third person in the rights
of the creditor.
 Compensation – Compensation is the extinguishment to the concurrent amount of the debts of two persons who, in their own
right, are reciprocally principal debtors and creditors of each other. It involves the simultaneous balancing of two obligations
in order to totally extinguish them if they are of the same amount or to the extent in which the amount of one is covered by
that of the other, if of different amounts.

More efforts on the following:

modes of extinguising an obligation

- By payment or performance
- By loss of the thing due
- By the condonation or remission of the debt
- By the confusion or merger of the rights of the debtor or creditor
- By compensation
- By novation

instances where debtor is loosing his right to a period (art 1198)

- When debtor becomes insolvent
- When debtor does not furnish guaranties or securities promised
- When guaranties or securities given have been impaired or have disappeared
- When debtor violates an undertaking
- When debtor attempts to abscond

instances where solidarity of an obligation exist

- When the obligation expressly so states; or
- When the law requires solidarity; or
- When the nature of the obligation requires solidarity

four requisites of payment by cession

- There must be two or more creditors;
- The debtor must be (partially) insolvent;
- The assignment must involve all the properties of the debtor; and
- The cession must be accepted by the creditors.

requirements for compensation to take place

- the parties are principal creditors and principal debtors of each other
- both debts consist in a sum of money, or of consumable things of the same kind and quality
- the two debts are due or demandable
- the two debts are liquidated
- no retention or controversy has been commenced by a third person

form of novation
- according to origin
- legal
- conventional
- according to how it is constituted
- express
- implied
- according to extent or effect
- total or extinctive
- partial or modificatory
- according to the subject
- real or objective
- personal or subjective
- mixed

Read, study, understand! God bless all of you!!! =)