Terms in this set (31)

Original

Elements of an Obligation

1. ACTIVE SUBJECT (Obligee/Creditor): the

person who has the right or power to

demand the prestation.

2. PASSIVE SUBJECT (Obligor/Debtor): the

person bound to the perform the prestation.

3. PRESTATION (Object): the conduct

required to be observed by the

debtor/obligor (to give, to do or not to do).

4. VINCULUM JURIS (Juridical or Legal Tie;

Efficient Cause): that which binds or

connects the parties to the obligation.

Sources of Obligations

A. Law

Art. 1158, Civil Code. Obligations derived from law

are not presumed. Only those expressly determined in

this Code or in special laws are demandable, and

shall be regulated by the precepts of the law which

establishes them; and as to what has not been

foreseen, by the provisions of this Book.

B. Contracts

Art. 1159. Has the Force of Law Between

Parties. Obligations arising from contracts have

the force of law between the contracting parties

and should be complied with in good faith

C. Quasi-Contracts

Art. 2142, Civil Code. Certain lawful, voluntary and

unilateral acts give rise to the juridical relation of

quasi-contract to the end that no one shall be unjustly

enriched or benefited at the expense of another.

D. Delicts (Acts or omissions punished by law;

crimes)

E. Quasi-Delicts (Voluntary acts or omissions

with fault or negligence causing damage to

another; not a crime nor a contract)

Kinds of Quasi-Contracts

Negotiorum Gestio: officious or voluntary

management of the property or affairs of

another without the knowledge or consent of

the latter.

Solutio Indebiti: undue payment. The

juridical relation arises when:

o a thing is received without any right; and

o the thing delivered by mistake.

Extent of Civil Liability

1. Restitution;

2. Reparation of damages caused; and

3. Indemnity for consequential damages (Art.

104, Revised Penal Code)

Effect of Acquittal on Civil Actions

1. If the acquittal was due to the fact that he could not have done the criminal acts accused him of - NO
CIVIL ACTION

2. If acquittal was due to exempting circumstance such as insanity or minority - GUARDIAN shall be liable
EXCEPT: when due diligence was exercised or the guardian is insolvent in which, the estate of the insane
criminal shall be held liable

3. If the courts allow independent civil action - civil action can be instituted (DF, P***I)

Requisites of Liability (DWD)

1. Wrongful act or omission by fault or

negligence

2. Damage or injury proven by the person claiming recovery

3. Direct causal connection between the fault or negligence and the damage or injury

KINDS OF PRESTATION

1. TO GIVE: real obligation; to deliver either

(1) a specific or determinate thing, or (2) a

generic or indeterminate thing.

2. TO DO: positive personal obligation;

includes all kinds of work or services.

3. NOT TO DO: negative personal

obligation; to abstain from doing an act;

includes the obligation not to give.

Accessories

those joined to or included with

the principal for the latter's completion, better use, perfection or enjoyment

Accessions

additions to or improvement upon

a thing, either naturally or artificially

Duties of the Debtor in an obligation to give a SPECIFIC thing

To preserve or take care of the thing

due
To deliver the thing itself

To deliver the fruits of the thing

To deliver the accessions and

accessories

To pay for damages in case of breach

Rights of creditor in an obligation to give a SPECIFIC thing

To compel specific performance

To recover damages in case of breach of the obligation, exclusive or in addition to specific performance

Entitlement to fruits and interests from the time the obligation to deliver arises

Duties of the Debtor in an obligation to give a GENERIC thing

To deliver a thing of the quality intended by the parties taking into consideration the purpose of the
obligation and other circumstances

Creditor cannot demand a thing of

superior quality neither can the debtor

deliver a thing of inferior quality

To be liable for damages in case of

breach

Rights of creditor in an obligation to give a GENERIC thing

To ask for performance of the obligation

To ask that the obligation be complied with by a third person at the expense of the debtor

To recover damages in case of breach of obligation

Duties of debtor in an obligation to DO

To do it

To shoulder the cost of having someone else do it

To undo what has been poorly done

To pay for damages in case of breach

Rights of creditor in an obligation to DO

To compel performance

To recover damages where personal

qualifications of the debtor are involved

Waiver for future fraud

Waiver for future fraud is VOID

FRAUD (DOLO)

deliberate or intentional

evasion of the normal fulfillment of an

obligation (De Leon, 2003).

NEGLIGENCE or FAULT (CULPA)

omission of that diligence which is required by the nature of the obligation and corresponds with the
circumstances of the person, of the time and of the place (Art.

1173).

Effect of Contributory Negligence

Reduces or mitigates the recoverable

damages, UNLESS, the negligent act or

omission of the creditor is the

proximate cause of the event which led

to the damage or injury complained of.

In this case, he cannot recover.

Diligence Required

a. By stipulation: that agreed upon by

the parties.

b. By law: in the absence of

stipulation, that required by law in

the particular case.

c. Diligence of a good father of a

family: if both the contract and law

are silent.

Test of negligence

Would a prudent man foresee harm as a direct, natural, logical consequence of his course of action to be
pursued?

exceptions to "no demand, no delay"

1. When the law or stipulation provides that demand is not necessary

2. when time is of the essence

3. when demand is no longer necessary since circumstances led for the obligation impossible to be
performed
Liability in case of Fortuitous Event

No person shall be responsible for fortuitous events, UNLESS:

1. expressly specified by law (Arts. 552(2),1942, 2147, 2148, 2159)

2. liability specified by stipulation

3. the nature of the obligations requires

assumption of risk (Art. 1174)

4. when debtor is guilty of concurrent or contributory negligence

5. debtor has promised to deliver the same thing to two or more persons who do not have the same
interests (Art. 1165 par. 3)

6. the thing is lost due to the obligor's fraud, negligence, delay or contravention of the tenor of the
obligation (Art. 1170)

7. the obligation to deliver a specific thing arises from a crime (Art. 1268)

8. the object is a generic thing, i.e. the genus never perishes

Requisites for Exemption in case of fortuitous event

1. The event must be independent of the

debtor's will (fraud or negligence)

2. The event must be unforeseeable or

inevitable

3. The event renders it impossible for debtor to fulfill his obligation in a normal manner

4. The debtor must be free from any

participation in the aggravation of the injury to the creditor (Tolentino, 1987; De Leon, 2003)

5. It must be the only and sole cause, not merely a proximate cause.
USURY

stipulation of interest rates higher than

the ceiling provided by law.

Pure Obligation

Effectivity or extinguishment does not depend upon the fulfillment or non-fulfillment of a condition or
upon the expiration of a term or period and

characterized by the quality of its being

IMMEDIATELY DEMANDABLE.

Conditional Obligation

Effectivity is subject to the fulfillment or non-fulfillment of a condition, which is characterized to be a

FUTURE and UNCERTAIN event

Suspensive Condition

Obligation shall only be effective upon the fulfillment of the condition (Art.1181). What is acquired by
the obligee upon the constitution of the obligation is mere hope or expectancy, but is protected by law.

Resolutory Condition

Obligation becomes demandable immediately after its establishment or constitution. The rights are
immediately vested to the creditor, but always subject to the threat or danger of

extinction by the happening of the resolutory condition (Tolentino, 1987)

Potestative Condition - Exclusively upon the Creditor's Will

Condition and obligation is valid

Potestative Condition - Exclusively upon the Debtor's Will in case of a Suspensive Condition
Condition and obligation are void because to allow such condition would be equivalent to sanctioning
obligations

which are illusory. It also constitutes a direct contravention of the principle of mutuality of contracts.