OBLIGATIONS AND CONTRACTS

Int. RFBT

Sections : BSAIS/ BSMA 1 5:oo-6:30 P.M. Tues.-Thurs.

BSA 3B 6:60-8:00 P.M. –do-

I gave last week the first thirty articles (Arts. 1156-1185) for you
to review. Remember that obligations is the basic foundation you need
in order to guide you in entering in contracts/transactions as well as
your further study of other commercial laws such Negotiable
Instruments, Corporation Law, Laws on Sales, Partnership, etc.
Please answer the following questions and applicable the
provisons of the articles you have reviewed and send your answer to
my email address or DLSP.
DO NOT FORGET TO WRITE YOUR FULL NAME AND SECTION ON
YOUR ANSWERS.

1. Enumerate the sources of obligations and briefly explain each of

them.
2. State the two kinds of quasi-contracts and give an example of
each of them.
3. A wife is about to deliver her child and her sister brought her to
the hospital. Who should pay the hospital bills? The husband or
her sister? Why?
4. Enumerate the different kinds of damages.
5. Delivery may be actual or constructive. State the different kinds
of constructive delivery.
6. What are the rights of a creditor in case there is failure to comply
with the obligation?
7. Distinguished force majeure from fortuitous events. (b) as to
point of view of liability.
8. Distinguished a period from a condition. (b) State the difference:

(a) I will give you my car on your birthday.

(b) I will give your my car now if passed the CPA examination
next week.
9. Define negotiorum gestio. Solution indebiti. Give an example
of each of them.
10. Enumerate the different kinds of damages.
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What is the remedy of the creditor when the obligation does not
fixed a period but the parties intended to do so. Cite an example.

Note: in computing the period the following computation shall be

observed:

1 year - - - - - - - - - - - - - - 365 days

- - - - - - - - - - - - - 12 months
1 month - - - - - - - - - - - - - 30 days
1 week - - - - - - - - - - - - - 7 days
1 day - - - - - - - - - - - - - - 24 hours
Nightime - - - - - - - - - - sunset to sunrise
Daytime - - - - - - - - - - sunrise to sunset

*If the months are designated by their name, they shall be

computed by the number of days which they respectively
have. Ex. - Payable at the end of February 2021 (Feb.28, 2021)
- Payable within thirty days starting the first day of
February (March 02, 2021)

*The first day shall be excluded, and the lest day shall be
included.

Define alternative obligations.

The creditor cannot be compelled to receive part of one and part

of other undertaking.

The right of choice belongs to the debtor unlessit has been

expressly granted to the creditor.

Joint as distinguish from solidary obligations.

Joint obligation – each obligor/debtor answers only a part of the

whole liability and to each oblige belongs only a part of the correlative
right. Other terms used – proportionate; Pro rata; mancomunada

Solidary obligation – the relationship between the debtor and

creditor is so closed that each of the former (debtor) and of the
 latter (creditor) may demand fulfillment of the whole or entire
obligation. Other terms used- in solidum; jointly and severally;
each will pay the whole or total value

Solidary obligations are extinguished by the following grounds:

1. Novation 3. Confusion
2. Compensation 4. Remission of debt

Novation – is the modification of the obligation by (1) changing its

object or principal conditions; (2) substituting the person of the debtor;
(3) subrogating the person of the debtor; and (4) subrogating a third
person in the place to the rights of the creditor.

Compensation – takes place when two persons in their own right are
debtor and creditor to each other. It can be total or partial. Total
compensation automatically extinguished the obligation whether
known or unknown to the parties.

Confusion or merger - takes place when the character of the debtpr

and creditor are merged into the same person.

Remission of debt or waiver – is the act of liberality whereby a

creditor condones the obligation of the debtor; where the creditor tells
the debtor to forget the whole thing.

Payment defined – is one of the ways an obligation is extinguished and

consists of the delivery of the thing or rendition of the service which is
the object of the obligation.

Loss of the thing due- what is the effect?

1, If without fault – NO liability

3. If there is fault – there is liability with damages and interests
4. Loss due to a fortuitous event even AFTER default – there is
liability because of the default.
Defenses that may be used by debtors against actions filed by
creditors:

1. Those derived from the nature of the obligation- Ex. Lack of

cause of action; lack of consideration; absolute simulation
2. Those personal to the debtor sued – Ex. Vitiated consent; non-
arrival of the term; incapacity to give consent
3. Those personal to others- same as (2)

Distinguished divisible from indivisible obligations-

Divisible obligation- is one capable of partial performance.

Ex. To deliver 20 kilos of sugar
Indivisible obligation – not capable to partial performance.
Ex. To deliver a 2021 Toyota Grandia VAN

Kinds of indivisibility-
1. Conventional – by agreement
2. Natural or absolute- because of the nature of the object or
undertaking
3. Legal- provided by law

Kinds of division –

1. Quantative – dependent on quantity

2. Qualitative – depend on quality irrespective of quantity
Ex. X inherits cash; while Y inherit the land.
3. Intellectual or moral – exists merely in the mind; and not in
physical reality
Ex. My brother and I owned a common car. My ½ share
is only in the mind.

Joint indivisible obligation –

Joint- refers to the relationship between the parties

Indivisible – refers to the nature of the object

In case there is failure to comply with a joint indivisible

obligation, the obligation is converted into a monetary one for
indemnity.
 QUESTION : What if the obligation is solidary indivisible? What is
the effect if one of the debtors failed to comply?

Obligation With A Penal Clause

Penal clause defined - - is a coercive measure to obtain compliance

from the debtor. A penal clause is an accessory undertaking to assume
greater liability in case of breach. It is attached to the obligation in
order to insure its performance.

Kinds: First Classification-

1. Legal – imposed by law

2. Conventional – those which has been agree upon by the
parties

Second Classification-
1. Subsidiary – only the penalty may be asked
2. Joint- when both the principal contract and the penalty clause
may be asked.

Distinguished a condition from a penalty.

A penalty clause constitute and obligation although an

accessory; while a condition is not. A penal clausebecome
demandable in default of the unperformed principal obligation and,
sometime jointly with it, whereas a condition is never demandable.

Purpose of penalty- to insure the performance of an obligation and also

to substitute for damages and the payment of interest in case of non-
compliance.

NOTE: THE NULLITY OF THE PENAL CLAUSE DOES NOT CARRY WITH
IT THE NULLITY OF THE PRINCIPAL OBLIGATION. THE NULLTY OF
THE PRINCIPAL OBLIGATION CARRIES WITH IT THE NULLITY OF THE
PENAL CLAUSE.
 Reason: When the principal obligation is null and void, the penal
clause has no more use for its existence and is, therefore, considered
null and void. On the other hand, if the penal clause is not valid, it does
not mean that the principal obligation is also null and void. The
principal obligation can stand alone, and the penal clause can be
disregarded.