Professional Documents
Culture Documents
Obligation and Contrcacts Summary
Obligation and Contrcacts Summary
d. viewpoint of persons obliged Art. 1161. Civil obligations arising fromcriminal offenses should
1. unilateral – where only one party is bound be governed by the penal laws, subject to the provisions of
2. bilateral - where both parties are bound Articile 2177, and of the pertinent provisions of Chapter 2,
Ex. Contract of sale: the buyer is obliged to pay; seller obliged to Preliminary Title, on Human Relations, and of Title XVIII of this
pay. Book regulationg damages.
2.1. reciprocal
2.2 non reciprocal Pertinent Provisions of the Revised Penal Code:
Art. 100, RPC says: “Every person criminally liable for a felony is
Art. 1157. Obligations arise from: also civilly liable”
1. Law;
2. Contracts;
Liability of an Insane Criminal
3. Quasi-contracts
An insane criminal who commits a crime is exempted from
4. Acts or omissions punished by law; and
criminal liability, but his guardian can be held civily liable unless
5. Quasi-delicts
the latter was diligent in his task of taking care the insane.
Sources of Obligation
Civil Liability arising from a Crime includes:
a. Law (obligation ex lege) – like the duty to pay taxes
1. Restitution
and support ones family
2. Reparation of the damage caused;
b. Contracts (obligation ex contracto) – duty to repay a
3. Indemnification for consequential damages
loan by virtue of an agreement
c. Quasi-contracts (obligation quasi-contractu) – like the
Effects of acquittal in Criminal Case
duty to refund an “over change” of money because of
a. If the reason why there was an acquittal was because
the “solutio indebiti”
the accused could not have committed the act, no civil
d. Crimes or Acts or Omissions Punishable by Law
action.
(obligation ex maleficio or ex delicto) – like the duty to
b. If the reason for the acquittal was because of an
return a stolen carabao
exempting circumstatnce (insane) still civily liable.
e. Quasi delicts or Torts (obligation ex quasi-delicto or
c. If there is an independent civil action allowed by the
ex quasi maleficio) – like the duty to repair damage
law.
due to negligence.
Art. 1162. Obligations derived from quasi-delicts shall be 4. Traditio constitutum possessorium – the delivery
governed by the provisions of Chapter 2, Title XVII of this whereby a possessor of a thing as an owner,
Book, and by special laws. retains possession no longer as an owner.
5. Traditio by execution of legal forms and
Another name for quasi-delicts is “tort” or “culpa solemnities (like an execution of public
aquiliana”. instrument selling land)
Quasi-delicts is a fault or act of negligence (or omission of When does the Obligation to Deliver Arise
care) which causes damagesto another, there being no pre a. If there is no term or condition, from the perfection of
existing contractual relations between the parties. the contract.
b. If there is a condition or term, from the moment the
Examples: term arrives or the condition happens.
a. While driving a car recklessly, I injured a pedestrian
b. While cleaning my windows sill, cause the flower pot Art. 1165. When what is to be delivered is a determinate
to fall breaking the arms of my neighbor. thing, the creditor, in addition to the right granted him by
Article 1170, may compel to the debtor to make the delivery.
Negligence (Culpa) is the failure to observe, for the If the thing is indeterminate or generic thing, he may
protection of the interests of another person, that degree ask that the obligation be complied with at the expense of the
of care, precaution and vigilance which circumstances debtor,
justly demand. If the obligation delays, or has promised to delvier
the same thing to two or more persons who do not have the
Requisites Before a Person Can Be Held Liable for a Quasi- same interest, he shall be responsible for fortuitous event until
Delict has effected the delivery.
1. There must be fault or negligence attributable to the
person charged; Specific or Determinate things – when it is capable of particular
2. There must be damage or injury; designation. Ex: this car, tha car owned by A on Sept. 12, 2005,
3. There must be a direct relation of cause and effect the care with the plate number 1815, th particular picture of
between the fault or negligence on the one hand and Mayela in my notebook.
the damage or injury on the other.
Generic or Indeterminate Things – refers only to class, to a
NATURE AND EFFECT OF OBLIGATION genus, and cannot be pointed out with particularity.
Ex.: A car, a 2005 BMW, the sum of P5 Million, a kilo of sugar.
Art. 1163. Every person obliged to give something is also
obliged to take care of it with the proper diligence of a good Remedies of the Creditor When Debtor Fails to Comply with his
father of a family, unless the law or the stipulations of the Obligations:
parties requires another standard of care. a. Demand for specific performance of the obligation.
b. Demand for rescission or cancellation
Determinate - specific c. Demand for damages either with or without either of
Indeterminate – on of class the first two. (a or b)
Art. 1178. Subject to the laws, all rights acquired in virtue of Art. 1182. When the fulfillment of the condition depends
an obligation are transmissible, if there has been no stipulation upon the sole will of the debtor, the conditional
to the contrary. obligation shall be void. If it depends upon chance or
upon the will of a third person, the obligation shall take
Transmissibility of Rights effect in conformity with the provision of this Code.
Rights are transmissible.
Exeptions: Protestative – depends on the exclusive will of one parties.
a. If the law provides otherwise; Casual – depends on chance OR upon the will of a third
b. If the contract provides otherwise; person.
c. If the obligation is purely persona
Protestative on the Part of the DEBTOR:
If suspensive: void
DIFFERENT KINDS OF OBLIGATIONS If resolutory: valid
Section 1 Protestative on the part of the CREDITOR: valid
Art. 1179. Ever y obligation whose performance does not Art. 1183. Impossible conditions, those contrary to good
depend upon a future or certain event, or upon a past event customs or public policy and those prohibited by law shall
unknown to the parties, is demandable at one. annul the obligation which depends upon them. If the
Every obligation which contains a resolutory obligation is divisible, that part thereof which is not
condition shall also be demandable, without prejudice to the affected by the impossible or unlawful condition shall be
effects of the happening of the event. valid.
The condition no to do an impossible thing shall be
Pure Obligation – one without a condition or a term considered as not having been agreed upon.
Conditional Obligation – When there is a condition.
Condition – “it is an uncertain event which wields an influence Classification:
on a legal relationship”. a. Impossible: physical- to make a dead man live
Term or Period – which necessarily must come whether the Logically – to make a circle that is the same timesquare
parties know when it will happen or not.
b. Illegal – prohibited by good customs, public policy, The fault of the debtor, the impairment is to be bourne by the
prohibited, directly or indirectly by law; like killing X, a creditor;
friend. 4. If deteriorates through the fault of the debtor, the
Creditor may choose between the rescission of the obligation
EFFECTS: and its fulfillment, with indemnity for damages in either case;
a. If condition is to do an IMPOSSIBLE or ILLEGAL thing: 5. If the thing is improved at the expense of the debtor,
VOID He shall have no right than that granted to him usufractuary.
b. If condition is NEGATIVE, not to do the impossible,
JUST REGARD the condition but obligation REMAINS Loss – it is understood that the thing is lost;
c. If the condition is NEGATIVE, not to do the illegal a. When it perishes
thing, condition and obligation are VALID. b. When it goes our of commerce
c. When it disappears In such a way that its existence is
Art. 1184. The condition that some event happen at a unknown.
determinate time shall extinguish the obligation as soon as the d. When it disappears in such a way that it cannot be
time expires or If it has become indubitable that the event will recovered.
not take place. (Refers to POSITIVE Conditions)
Art. 1190:
Art. 1185. The condition that same event will not happen at a
determinate time shall render the obligation effective from the Effects when Resolutory Condition is Fulfilled
moment the time indicated has elapsed, or if it has become a. The obligation is extinguished
evident that the event cannot occur. b. Because the obligation had been extinguished and
If no time has been fixed, the condition shall be considered to have had no effect, the parties should
deemed fulfilled at such time as may have probably been restore to each other what they received.
contemplated bearing in mind the nature of the obligation. c. Aside from the actual things received, the fruits or
(refers to NEGATIVE Conditions) interests thereon should also be return.
d. The rules given n Art. 1189. Will apply to whoever has
Art. 1186. The condition shall be deemed fulfilled when the the duty to return in case of loss, deterioration, or
obligor voluntarily prevents its fulfillment. improvement of the thing.
e. The courts are given power to determine the
Rule: CONSTRUCTIVE or PRESUMED FULFILLMENT retroactivity of the fulfillment of resolutory conditions.
Requisites:
a. VOLUNTARILY made Art. 1191. The power to rescind obligations is implied in
b. Actually PREVENTS reciprocal ones, in case on of the obligors should not comply
with what is incumbent upon him.
Art. 1187. The injured party may choose between the
fulfillment and rescission of the obligation, with the payment
Effects of Fulfillment of Suspensive Conditions: of damages in either case. He may also seek rescission, even
a. RETROACTS (as general rule) to the day the obligation after he has chosen fulfillment, if the latter should become
was constituted. impossible.
b. No Retroactivity with reference only to: The court shall decree the rescission claimed, unless
1. Fruits or interest. there be just cause authorizing the fixing of a period.
2. Period of Prescription This is understood to be without prejudice to the rights of
No Retroactive Effects as to Fruits and Interest; third persons who have acquired the thing, in accordance with
a. Unilateral; debtors gets the fruits and interest unless Article 1385 and 1388 and the Mortgage Law.
there is a contrary intent.
b. Reciprocal; the fruits and interest during the pendency Right to Rescind – right to cancel the contract or reciprocal
of the condition shall be deemed to compensate each obligation in case of nonfulfillment on the part of one.
other.
SCOPE OF FRUITS: Characteristic of the Right to Rescind or Resolve:
Fruits here refer to natural, industrial, and civil fruits (rent) a. It exists only in reciprocal obligation.
b. It can be demanded only if plaintiff is ready, willing
Art. 1188. The creditor may, before the fulfillment of the and able to comly with his own obligation
condition, bring the appropriate actions for the preservation of
his right. Section 2
The debtor may recover what during the same time OBLIGATIONS WITH A PERIOD
he has paid by mistake in case of a suspensive condition.
Art. 1193. Obligation for whose fulfillment a day certain has
Bring appropriate actions – sue in court been fixed, and shall be demandable only when that day
Other appropriate actions: comes.
a. Ask for security if the debtor is insolvent Obligations with a resolutory period take effect at
b. Ask the court to prevent alienation or concealment. one, but terminate upon arrival of the day certain.
A day certain is understood to be that which must
Art. 1189. When then conditions have been imposed with the necessarily come, although it may not to be known when.
intention of suspending the efficacy of an obligation to give, If the uncertainty consists in whether the day will
the following rules shall be observed in case of the come or not, the obligation is conditional and it shall be
improvement, loss, or deterioration; regulated by the rules of the preceding Section.
1. If the thing is lost without the fault of the debtor, the
Obligation shall be extinguished; Period – is a certain length of time which determines the
2. If the thing is lost through the fault of the debtor, he effectivity or the extinguishmwnt of obligations
Shall be obliged to pay damages; it is understood that the
when the thing is lost when perishes, or goes out of Period Distinguished from Condition
commerce, or disappear in such a way that its existence is a. In their fulfillment
unknown or it cannot be recovered; A condition is an uncertain event; but period is an event which
3. When the thing deteriorates without the fault of the must happen sooner or later.
b. Reference to time;
A period always refers to the future, a condition may under the
law refer even to the past.
c. As to influence of obligation;
A condition causes an obligation arise or to cease, but a period
merely fixes the time or the efficiaciousness of an obligation.
Payment by the Third Person (BAR) Art. 1242. Payment made in good faith to any person in
The third person may pay: possession of the credit shall release the debtor.
a. With the knowledge and consent of the debtor Art. 1243. Payment made to the creditor by the debtor after
The payor is entitled to REIMBURSEMENT and the latter has been judicially ordered to retain the debt shall
SUBROGATION to such rights as guaranty, penalty not be valid.
clause, or mortgage.
b. Without the debtors knowledge or against his will. Garnishment – the proceeding by which a debtors creditor is
The payor is not entitled to subrogation; moreover he subjected to the payment of his own debt to another
is allowed only for BENEFICIAL REIMBURSEMENT.
Interpleader – technical name of the action in which a certain
Art. 1237. Whoever pays on behalf of the debtor without the person in possession of certain property wants claimants to
knowledge or against the will of the latter, cannot compel the litigate among themselves for the same.
creditor to subrogate him in his rights, such as those arising
from a mortgage, guaranty, or penalty. Injunction – it is a judicial process by virtue of which a person is
generally ordered to refrain from doing something.
Subrogation – means the act of putting somebody into the
shoes of the creditor, hence, enabling the former to exercise all
the rights and actions that could have been exercised by the
latter.