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OBLIGATION
4 ELEMENTS OF OBLIGATION
5 SOURCES OF OBLIGATION
1. LAW
2. CONTRACTS
2Kinds
Rule: The creditor has personal right (right to ask for delivery) from the time the obligation to deliver
arises.
But NO real right (right enforceable against the whole world) until it is delivered.
3 KINDS OF FRUITS
1. Determinate
a. Performance
b. Damages
2. Generic
a. Performance
b. Damages
1. Damages
1. Law states
2. Stipulation/contract states
3. Assumption of risk
4. Delay
5. Debtor promises deliver to 2/more persons who do not have same interest (bad faith)
- extinguish the obligation if determinate; generic does not extinguish the obligation
2. If debtor fails to do, it shall be DONE AT HIS EXPENSE, same with doing the contravention; poorly
done be undone.
3. In obligation not to do, and obligor does what is forbidden, shall be UNDONE AT HIS EXPENSE.
1. Default/mora
2. Fraud/dolo
3. Negligence/culpa
1. DEFAULT/MORA – delay
3kinds
CONCEPT OF DELAY
Exceptions:
1. Law states
2. Obligation states
EFFECTS OF DELAY
1. Damages
2Kinds
a. Dolo causante/Causal fraud – fraud in obtaining consent; consent is defective, contract is voidable.
Remedy: annulment
3Kinds
2. Receipt of latter installment w/o mention of prior installment, presumed prior installment is paid also.
1. Exact payment
TRANSMISSIBILITY OF RIGHTS
Exceptions:
1. Law states
2. Contract states
10 Kinds of Obligation
1. Pure
2. Conditional
3. Alternative
4. Facultative
5. Joint
6. Solidary
7. Divisible
8. Indivisible
9. Obligation w/ a period
1. PURE OBLIGATION
. CONDITIONAL OBLIGATION
2Kinds
4. The condition that happens in INDETERMINATE time, obligation only effective at arrival.
1. LOST
2. DETERIORATION
a. w/ debtor’s fault - (1) cancel obligation & damages; or (2) fulfill obligation w/ damages
3. IMPROVEMENT
b. at expense of debtor – debtor no right than that granted to usufructuary (debtor no right to
compensate amount for improvement)
General Rule: The obligation becomes effective retroactively to the day obligation was constituted.
Exceptions:
1. In reciprocal obligation, fruits & interests during pendency of condition shall compensate each other.
2. In unilateral obligation, debtor gets fruits & interests unless there is a contrary intent.
1. Extinguish obligation.
2. Both parties restore what they received plus fruits & interests.
3. The rule on L, D, or I will apply to person who has to return the thing.
When one of debtors in reciprocal obligation does not comply w/ his obligation
1. The right of injured party is (1) cancel contract & damages; or (2) fulfill obligation & damages
3. OBLIGATION W/ A PERIOD
1. Little by little
2. In partial payment
3. Payable ASAP
6. When I am able to
1. Debtor is insolvent.
3. Impairment of guarantees/securities.
5. Violation of undertaking.
4. ALTERNATIVE OBLIGATION
5. FACULTATIVE OBLIGATION
right to choose (debtor) unless granted to creditor right to choose DEBTOR ONLY
If 1 of the prestation is illegal, others may be valid, nullity of principal carries w/ it nullity of accessory/
obligation remains substitute
loss/impossibility of ALL prestations due, w/o loss/impossibility of presta-tion due, w/o debtor’s
debtor’s fault, extinguishes obligation fault, extinguishes obligation
1. If 1 of prestations lost through fortuitous event, shall still be perform by choosing (creditor) from the
remainder.
2. If 1 of prestations lost through debtor’s fault, creditor may claim any of remainders w/ damages.
1. If there is a loss/deterioration of thing intended as substitute, debtor is NOT liable if NOT HIS FAULT.
But if substitution is already made, debtor is liable for loss of substitute when in DELAY, NEGLIGENCE, or
FRAUD.
6. JOINT OBLIGATION
7. SOLIDARY OBLIGATION
- each one of debtors has right to render or each one of creditors has right to demand the entire
compliance w/ prestation
MAXIMS SYNONYMS
JOINT Obligation “To each his own” proportionate
SOLIDARY Obligation “One for all, all for one” individually & collectively
(3) SOLIDARY OBLIGATION EXIST ONLY IF: *RULES
1. Law states
2. Stipulation states
8. DIVISIBLE OBLIGATION
9. INDIVISIBLE OBLIGATION
- one w/ accessory undertaking attached to obligation to assume greater liablity in case of breach/non-
fulfillment of obligation
General Rule: Penalty takes the place of damages & interest in case of non-compliance.
Exceptions:
1. Stipulation states.
1. Payment or performance
2. Prescription
3. Compensation
4. Confusion/merger
5. Condonation/remission
7. Annulment
8. Rescission
9. Novation
1. PAYMENT/PERFORMANCE
2. If w/o agreement
a. Application of payment
b. Cession
d. Dacion in payment
a. APPLICATION OF PAYMENT
- designation of debt to w/c payment must be applied when debtor has several obligations of same kind
in favor of same creditor.
2. If debtor does not avail, creditor can give him receipt designating the debt from which payment will
be applied.
3. If debtor accepts the receipt, he cannot complain unless THERE IS just cause to invalidate the
contract.
b. CESSION
- debtor abandons ALL his property for creditor’s benefit to obtain payment from proceeds of his
property
5. Creditors must sell the properties & apply the proceeds to their respective credits proportionately.
1. Consent of creditor
TENDER OF PAYMENT – act of offering the creditor what is due to him w/ a demand that the creditor
accept it
CONSIGNATION – act of depositing thing due w/ the court when creditor cannot/refuses acceptance of
payment
5 REQUISITES OF CONSIGNATION
1. Debt due.
1. Creditor is absent/unknown.
1. Determinate thing.
3. No delay.
3. CONDONATION/REMISSION
1. It must be gratuitous.
2. Accepted by obligor.
3. Obligation is demandable.
4. CONFUSION/MERGER
5. COMPENSATION
3. No retention/controversy by 3rd person.
1. As to effect
2. As to origin or cause
a. LEGAL – by law
6. NOVATION
- substitution/change of obligation
- substitution of debtor
- subrogation of creditor
3. Changing person of the parties & the objects of principal condition. (MIXED NOVATION)
4 REQUISITES OF NOVATION
2REQUISITES
3REQUISITES
7. SUBROGATION
- change of creditor
2 KINDS OF SUBROGATION
2. LEGAL – by law
a. creditor pays another preferred creditor even w/o debtor’s knowledge