1 General Provisions

Chapter :

( Article
obligations 1156)
-
An obligation is a
juridical necessity to
give ,
to do or not to do .

This definition is
given by the law however ,
it was criticized because it only talks about the duty of debtor .

Creditor -

right to demand a determinative conduct

Debtor -

give back money

* if there is no
right to demand ,
there is no
obligation to
perform .

-
An obligation is a
juridical relation whereby a person called the creditor may demand
from another person called the debtor , the observance of a determinative conduct which is

giving ,
doing or not
doing ,
and in case of breach ,
may demand satisfaction from the assets of the
latter .

This is a better definition because it talks about the creditor .

Essential Requisites of an
obligation

A . Passive subject or Debtor or

obligor
duty doing not who is the fulfillment
-
He who has the of
giving ,
or
doing .
The person bound to

who has
of the obligation ; He

Cto do
obligor to do)
( ) OBLIGATIONS or not
term Debtor is REAL OBLIGATIONS
obligation to
give used for PERSONAL
" "
The usually used in ;
-

-
the one who receives demand and one who has to perform determinative conduct .

B .
Active subject or creditor or
obligee
-
The possessor of a right ; he in whose favor the
obligation is constituted . The person who is entitled to

demand the fulfillment of the obligation ; he who has

a#
Creditor REAL OBLIGATION .

Obligee ,
PERSONAL OBLIGATION .

C .

object or Pre station or subject Matter

-
The conduct required to be observe by the debtor which
may consists in
giving a thing doing ,
or not

certain act
doing a .

The determinative conduct .

Object of an
obligation .

juridical Tie Tie Efficient vinculum Juris

D . or
Legal or cause or

-
the reason
why obligation exists .

Forms of Obligations
-
The manner in which an
obligation is manifested or incurred . It
may be oral ,
or in writing ,
or

partly oral and partly in

writing .

it's VERBAL
If
partly oral or
partly writing it is -

WRITTEN
Not ALL agreement are .

FORM is VALIDITY
There are obligations where required for -

RULES AS TO FORM

A . As a
general rule , the law does not require any form in obligations arising from contracts for their validity
or
binding form .

B .

Obligations arising from other sources do not have form at all .

 Kinds of
obligations

REAL
1. OBLIGATION ( Obligation to
give)
which the subject is thing which the deliver to the obligee
is that in matter a
obligor must
-

to do not to do )
2. PERSONAL OBLIGATION L
Obligation or

-
is that in which the subject matter is an act to be done or not to be done . There are two (2) Kind
of obligation : s

a .
Positive Personal obligation
service
-

obligation to do or render

b .

Negative Personal obligation "

give )
"

obligation not to do ( which naturally includes

obligations not to
-

sources of
obligations - dito gating any obligations
1158)
A. LAWS ( Article if di gating sa T na to
,

civil
by obligations
when law itself
they are imposed the
hindi
-

sya
-

B. CONTRACTS ( Articles 1159 and 1306 )

-
when they arise from the stipulations of the parties .

C .
QUASI -
CONTRACTS ( Articles 1160 and 2142) repay

lawful
voluntary and unilateral acts which
generally require a person to reimburse or compensate
-

accordance with the principle that shall enriched benefited at

another in no one be
unjustly or

the expense of another .

D. ACTS OR OMISSIONS PUNISHABLE BY LAW L Article 116T and Article 100 Revised Penal code Act .
No
, ,

3185 ,
December 8, 1930 )

which is the consequence of criminal offense

when they arise from civil
liability
-

a .

E . QUASI -
DEUCTS ( Articles 1162 and 2176 )

caused to another through omission being fault

when they arise from
damage an act or there or
-

contractual relation exists between the parties

negligence ,
but no .

SOURCES OF OBLIGATIONS

LEGAL OBLIGATIONS or OBLIGATIONS EX LEGE ( Article 1158)

-
These obligations are not presumed because they are considered a burden upon the debtor .

They
set forth in the law
are the exception ,
not the rule . To be demandable , they must be
clearly .

If you can 't find the provision on the law that this is your obligation ,
IT IS NOT A LEGAL OBLIGATION .

REMEMBER : No
a .

agreement
b. not Presumed

c. Due without need for demand

-
No
agreement is necessary before
legal obligations can arise ,
but the law steps in only because of human
act nations .

CONTRACTUAL OBLIGATIONS or OBLIGATIONS EX CONTRACT U

between two persons binds himself with

-
A contract is a
meeting of the minds
whereby one .
respect
service ( Article 1305)
to the other ,
to
give something or to render some

cause , object . consent → elements of contract

continuation . . .

A contract assuming all essential elements are present ,

is valid if it is not
contrary to law ,
morals ,
good customs
,

public order and public policy .

Obligations arising from contracts have the

force of law between the contracting parties , i.e .
. they have the

same binding effect as legal obligations ( 1159)

QUASI CONTRACTUAL OBLIGATIONS or OBLIGATIONS EX QUASI - CONTRA CTU (ARTICLE 1760)

NOT A CONTRACT

unilateral acts virtue

-

A juridical relation
resulting from lawful , voluntary and
by of which the parties become

bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another .

( Article 21421

Two Principal kinds of Quasi -

contracts

A .

Negotiorum Gestio
business without
This takes place when
person voluntarily manages
a another 's abandoned or
property
-

Article 2144 ) Reimbursement made the officious

'
the owners consent must be to
.

manager or

est or for and useful rule ( Article 2150)

g. necessary expenses ,
as a

B -
Solutio lndebiti

- it is the juridical relation which is created when

something is receive when there is no
right to

demand it has the return it

and it was
unduly delivered through mistake . the recipient duty to .

( Article 21543

REQUISITES OF SOLUTIO INDEBITI

to receive the delivered

i . there is no
right thing : and
delivered mistake
2. The
thing was
through .

CIVIL LIABILITY ARISING FROM CRIMES OR ACTS OR OMISSIONS PUNISHABLE BY LAW . DELICT OR OBLIGATIONS
EX DELI CTO or OBLIGATIONS EX MALEFIC10 ( Article 116T )

commission of not evil material

- the a crime causes
only moral but also
damage .

this principle established that liable for

From , the rule has been every person criminally an act or

omission is civilly liable for ( Article 100 Penal code Act No 3815 December
also
damages Revised .
.

, . .

8 ,
1930 )

SCOPE OF CIVIL LIABILITY

A . Restitution
B. Reparation for the
damaged cause

c. Indemnification for consequential damages

OBLIGATIONS ARISING FROM QUASI -

DELI CTS OR TORTS OR CULPA AQUILIANA OR OBLIGATIONS EX QUASI
-

DELI CTO

OR OBLIGATIONS EX QUASI -
MALE Floro

( tortfeasor) which another his person

An act or omission by a person causes
damage to in
property or
-

, ,

rights giving rise to an

obligation to pay for the damage done ,
there
being fault or negligence but

contractual relation between the parties ( Article

there is no
existing 2176)
-

pre .

REQUISITES OF QUASI -
DELICT

A . There must be an act or omission .

B .
There must be fault or
negligence .

C .
There must be damage caused .

D . There must be a direct relation or connection of cause and effect between act or omission and the

( DOCTRINE OF PROXIMATE CAUSE)

damage
E .
There is no pre
-

existing contractual relation between the parties .

 Chapter 2: Nature and Effect of
Obligations

individuality
SPECIFIC AND GENERIC OBJECTS

A. specific or Determinate objects r

-
If the
thing can be particularly designated or physically segregated from others of the same class .

It is identified by its individuality .

substitute it although of the

-
The debtor cannot with another the latter is same kind and
quality
without the consent of the creditor .

cannot replace unless you have consent

you
B .
Generic or Indeterminate object
-
A
thing is
generic when it refers
only to a class or genus to which it pertains and cannot be pointed
out with particularity .
It is identified
only by its specie .

-
The debtor can give anything of the same class as
long as it is of the same kind .

SPECIFIC REAL OBLIGATIONS

-
to
give a specific object
Duties of a debtor in specific Real obligations
A. Duty to preserve the
thing or
Duty to exercise diligence
incidental
In real obligations the debtor has the
duty to take care of the
thing due
pending delivery
-

with the
diligence of a
good father of a family .
-

ordinary diligence I extraordinary diligence

-

exagg taking care

to deliver the fruits of the

B. Duty thing
fruits of the from the time the
-
The creditor has a
right to the
thing obligation to deliver it arises .

However ,
he shall acquire no real right over it until the same has been delivered to him ( Article 1164J

KINDS OF FRUITS

i .
Natural Fruits
-

spontaneous products of soil and the young and other products of animals

2 .
Industrial Fruits

Produced lands of kind

through cultivation or labor
by any
- .

z
.
civil Fruits
virtue relation
-
those derived by of a
juridical .

ex : interest ,
rentals

Right of creditor to the fruits ( Article 11643

-
The creditor is entitled to the fruits of the
thing to be delivered from the time the obligation to make delivery arises .

The intention of the law is to protect the interest of the

obligee should the obligor commit delay , purposely or other -

wise ,
in the fulfillment of his obligation .

When obligation to deliver fruits arises

i .

Generally ,
the
obligation to deliver the thing due and consequently ,
the fruits thereof ,
it any ,
arises from the

time of the
perfection of the contract .

2 .
If the obligation is suspensive condition or period ( Articles 1179 1189 and 1193 )
subject to a
, ,
it arises

upon the fulfillment of the condition or arrival of the term However the parties may make .
,
a stipulation
to the
contrary as
regards the right of the creditor to the fruits of the thing .
 arises from the perfection of the contract
z . In a contract of sale ,
the
obligation even if the
obligation is

subject to a
suspensive condition or a suspensive period where the price has been paid .

4 .
In obligations to
give arising from law quasi ,
-

contracts , delict and quasi delict

-

,
the time of performance
is determined by the specific provisions of the law applicable .

C '
DUTY TO DELIVER THE ACCESSIONS AND ACCESSORIES
to give determinate includes that of delivering all its accessions and accessories
The
obligation a
thing
-

mentioned (Article 17667

even
though they may not have been

Accessions -

the fruits of a thing or additions to or

improvements upon a
thing ( the principal )
there must be a
stipulation to exclude accessions

Accessories joined to or included

-

those with the principal thing for the latter 's embellishment ,
better use

or completion .

Accessory follows principal

D
.
Duty to Deliver the
thing itself
-

Every person obliged to give a determinate thing must deliver ,

and the creditor may compel the delivery of

that itself which promised and substitute it the creditor ( Article 11653
was ,
he cannot unless
agrees
agreement
-

when the obligation to deliver arises may no

-
deliver
i. HT here is no term or condition .
then from the perfection of the contract .

2 .
If there is a term or a condition ,
then from the moment the term arrives or the condition happens .

to for of fulfillment breach

E Duty answer
damages in case non or
-
.

-
Those who in the performance of their
obligations are
guilty of fraud ,
negligence ,
or
delay ,
and those

who in any manner contravene the tenor thereof ,

are liable for damages 1 Article 1170) .

GENERIC REAL OBLIGATIONS

Duties of a debtor in generic real

obligations
that the complied with at the expense of
A . The creditor may ask
obligation be

the debtor ( Article 1165) .

B . If the
thing is to be delivered is indeterminate or
generic ,
the
obligor must deliver a
thing of the quality
specified or intended by the parties taking into consideration the purpose of the obligation and other
circumstances ; if none is fixed ,
he must deliver one of
average quality and neither can the obligor
deliver a
thing of inferior quality nor the
obligee demand one of superior quality I Article 12463

C. To be liable for
damages in case of fraud , negligence , or delay .
in the performance of his
obligation ,
or contra -

-
vent ion of the tenor thereof ( Article 1170 ) .
 REMEDIES IN REAL OBLIGATIONS

creditor of breach ( Article 1165 )

Remedies of in case of Real
obligations
A . SPECIFIC REAL OBLIGATION

1 . Demand specific performance or fulfillment of the obligation with a

right to indemnity for damages .

2 .
Demand rescission on cancellation ( in certain cases ) of the
obligation also with a right to recover damages .

3 .
Demand payment of
damages only where it is the
only feasible remedy .

B . GENERIC REAL OBLIGATION

i . Demand compliance with the obligation .

If the debtor fails .
it can be performed by a third person since the
its
object is
expressed only according to
family or
genus
. However, the creditor can recover damages
in case of breach .

When debtor delays or is in bad faith

the debtor promised delivery to separate creditors the happening of a fortuitous

-
if is in
delay or ,
event

does not exempt the debtor from responsibility because an indeterminate thing cannot be the object of
destruction based on the doctrine genus never perishes (genus nunguam pen't)
.

PERSONAL OBLIGATIONS
to do or not to do

STIPULATIONS CONTEMPLATED

A . It the debtor fails to perform obligation

an to do .

there of
B . The debtor performs an
obligation to do but contrary to the terms .

C- The debtor performs an

obligation to do but in a poor manner .

Remedies in personal obligations POSITIVE

1 . A personal obligation can be performed by a third person . However ,
an action for specific performance cannot

servitude which
be ordered in a personal obligation because this
may amount to involuntary , as a rule ,

is prohibited under the constitution .

2. where personal qualifications of the debtor are the determining motive for the obligation contracted , the

performance of the same another would be impossible would result to be different that the
by or so

could considered performed creditor indemnification for

obligation not be .
Hence ,
the
only remedy of the is

damages .

Remedies of creditor in negative personal obligations Article 1168)

A . The thing may be ordered undone provided undoing is possible at the expense of the debtor plus damages .

B .
If its not possible to undo what was done either physically or legally or , ,
because of the rights
acquired by third persons who acted in
good faith or for some other reason , ,
the remedy is an action
for damages caused
by the debtor 's violation of his obligation
 Grounds for liability (Article 1170)

A. FRAUD or DECEIT or DOLO

-
The deliberate or intentional evasion of the normal fulfillment of an
obligation .
As a
ground for damages ,

it implies some kind of malice or dishonesty and it cannot cover cases of mistake and errors or
judgment
made in good faith .
It is
synonymous to bad faith in that ,
it involves a
design to mislead or deceive
another
INTENTIONAL
.

'

KINDS OF FRAUD FRAUD is always

CAUSAL FRAUD or DOLO CAN SANTE
y .

-
Fraud employed in the execution of a contract which vitiates consent .

2. INCIDENTAL FRAUD or POLO INCIDENTE

-
Fraud committed in the performance of an
obligation already existing because of a contract so
although
fraud is absent or not exercised , the other party would have nonetheless entered into the
agreement
on
significantly the same terms .

incidental fraud which reparation for

merely calls for
damages
-

B. NEGLIGENCE or FAULT or CULPA

-
It is a voluntary act or omission ,
there being no bad faith or malice ,
which prevents the normal
fulfillment of an
obligation .

C '
LEGAL DELAY or DEFAULT or MORA ( Article 1169)

kinds of Delay

ORDINARY DELAY - not grounds for liability

1.
time
-

merely the failure to perform an

obligation on .

2. LEGAL DELAY on DEFAULT or MORA

-
failure to perform an obligation on time which failure constitutes a breach of the obligation
Those
obliged to deliver or to do something incur in default from the time the creditor
-

judicially or extrajudicial ly demands from them the fulfillment of their

obligation (Article 1169 ) .

KINDS OF DEFAULT

a .
MORA SOLVE NDI .
Obligation is due and demandable ,
'

failure to perform on the date .

may be
judicial or extrajudicial
-

default on the part of the debtor to fulfill his

obligation
b. MORA ACCIPIENDI
-
default on the part of the creditor to accept performance of the obligation
C- COMPENSATION OR AE

- the delay of the

obligor in reciprocal obligations ,
the delay of the obligor cancels the delay of
and vice The result is that there is actionable default Hoth
the obligee versa . net no as

parties are in default : here it is as it neither is in default .

WHEN DEMAND IS NOT NEEDED TO PUT DEBTOR IN FAULT CART . 1169)

i .
When the obligation expressly so provides .

2 .
When the law so provides

3 .
When the time is of the essence of the contract .

4 .
When demand would be useless
5 .
When there is performance by a party in reciprocal obligations .
 D. CONTRAVENTION OF THE TERMS OF THE OBLIGATION

the violation of terms and conditions stipulated in the obligation . The contravention must not be due to

a
fortuitous event or force Majere .

b
Y ?bihty
" "
an "
9
braw as
di pwedexg
,

Responsibility arising from fraud (Article my

-

Responsibility arising from incidental fraud can be demanded with respect to all kinds of
obligations
and unlike in the case of
responsibility arising from
negligence ,
the court is not
given the power to

be awarded
mitigate or reduce the damages to .

Rules regarding waiver for fraud

A. A waiver of an action for future fraud is void ( no effect ,

as if there is no waiver ) as
being against
the law and public policy .

B . A past fraud can be subject of a valid waiver because the waiver is considered as an act of
generosity
and magnanimity on the part of the party who is the victim of the fraud .

Responsibility arising from Negligence Lartiae my can mitigate liability

In the performance of
every kind of
obligation the debtor is also liable for
damages resulting from
-

negligence however
his The courts are
given wide discretion in fixing the measure of
damages
.

, ,

because negligence is a question which must necessarily depend upon the circumstances of each particular
case and is not as serious as fraud because there is not deliberate intention to cause
injury or
damages .

Kinds of
Negligence According to source of
Obligation
A. CONTRACTUAL NEGLIGENCE OR CULPA CONTRACTUAL
-

negligence in contracts
resulting in their breach .

B . CIVIL NEGLIGENCE or QUASI -

DELICT or TORTS or CULPA AQUI LIANA or OBLIGATIONS EX QUASI

-
DELI CTO or OBLIGATION EX QUASI -
MALE HUO

which itself is the source of obligation between the parties not related
negligence by an so
-

before any pre existing contract

- .

C. CRIMINAL NEGLIGENCE or CULPA CRIMINAL

commission of
-

negligence resulting in the crime

FACTORS TO BE CONSIDERED TO DETERMINE NEGLIGENCE ( AND WE 11737

Nature
A. of
obligation IT DEPENDS UPON THE CIRCUMSTANCES
B. circumstances of the person RULE :
C- circumstances of time

D. circumstance of the place

-

the
God "
:
on

warmth
independent
+

FORTUITOUS EVENT
'
acts
,
-

FORTUITOUS EVENT or ACT OF GOD or FORCE MAJEURE ON CASO FORT HITO

is which foreseen which event

-

any event cannot be ,

on though foreseen is inevitable otherwise it is
, ,
.

,
an

which is either impossible to foresee or impossible to avoid It is independent on the will of

. the debtor

and which happening ,

makes the normal fulfillment of the obligation impossible ,
.
 REQUISITES OF A FORTUITOUS EVENT

A The event must be of the human will at least of the debtor 's will
.

independent or .

B . The event could not be foreseen , or if foreseen ,

is inevitable .

c . The event must be of such a character as to render it impossible for the debtor to comply with his

obligation .

D . The debtor must be free from

any participation in , on the aggravation of, the
injury to the creditor that is ,

there is no concurrent
negligence on his part -

RULES AS TO LIABILITY IN CASE OF FORTUITOUS EVENT

A. GENERAL RULE
-
As a
general rule ,
a person is not responsible for loss or damage caused to another resulting from

his
obligation fortuitous
the non -

performance of due to events .

In other words ,
the
obligation is

EXTINGUISHED .

B .
EXCEPTIONS ( WHEN OBLIGATION IS NOT EXTINGUISHED ) ( Article 1174)

1 . When expressly specified by law

a .
the debtor is guilty of fraud negligence , ,
or
delay or contravention of the tenor of the
( Article
obligation 1170)

deliver the same ( specific)

b .
The debtor is in bad faith on has promised to
thing to two or more

who do not have the same interest L Article 1165 )

persons .

c. The obligation to deliver a specific thing arises from a crime ( Article 1262)
be delivered is generic ( Article in accordance with the principle genus
d. the
thing to 12631

never perishes .

2 . When declared by stipulation

The basis for this exception rests upon the freedom of contract Article 1306)

s . when the nature of the obligation requires the assumption of risk or Doctrine of created risk
of
damage is essential element in the
the risk loss or an
obligation insurance
-

USURY
Simple loan ( Mutuum)
-
is a contract whereby one of the parties delivers to another ,
money .
or other consumable thing .
upon the
condition that the same amount of the same kind and quality shall be paid .
It
may be gratuitous or

with a stipulation to
pay interest ( Article 1933) .

( Article 1175 )
Usury
-
it is
contracting for or receiving interest in excess of the amount allowed by law for the loan
of goods chattels credits In other words usury is the exaction of excessive
or use
money ,
, or .
,

interest .

for payment usurious interest is void

-
A stipulation of ,
that is ,
as if there is no
stipulation as to

interest .
 USURY LAW

virtue however of Central Bank circular No 905 ( December 10 1982 ) of interest and other
By
.
-

, .

charges on a loan on forbearance of

money goods , ,
or
regardless of maturity and

whether secured or unsecured .

that may be charged or collected shall not be subject to any ceiling
prescribed under the
Usury Law .

Usury is now
legally INEXISTENT . Parties are now free to stipulate any amount of interest . It does

not ,
however ,
give absolute right to the creditor to the
charge the debtor interest that is iniquitous
or unconscionable .

REQUISITES FOR RECOVERY OF INTEREST

( Article
A. Payment of Interest must be expressly stipulated 1956 )
in
B . The
agreement must be writing .
Rolando
c . the interest must be lawful .

DELA PAZ v L IJ company

-576K
paid LET , Dp returned 226k
PRESUMPTION
inference of fact not arising from its usual connection with another which
-
The a
actually known

is known or proved .

Two kinds of Presumption

A. CONCLUSIVE PRESUMPTION
-
one which cannot be predicted .

B .
DISPUTABLE or REBUTTABLE PRESUMPTION

can be contradicted or rebutted

by presenting proof to the contrary
- .

TWO PRESUMPTIONS ( 1176)

A. The receipt of the principal by the creditor without reservation with respect to the interest ,
shall
give rise to

the presumption that said interest has been paid .

later installment without reservation installments shall likewise

B . The receipt of a of a debt as to
prior ,

raise the presumption that such installments have been paid .

EXCEPTIONS TO PRESUMPTIONS ( when presumptions do not

apply )

A .
WITH RESERVATION AS TO INTEREST
-
The presumption do not arise where there is reservation that no payment has been made as to interest
or prior installments ,
as the case
may be .
The reservation may be in writing or
verbally .

B . RECEIPT WITHOUT INDICATION OF PARTICULAR INSTALLMENT PAID

- The presumption is not applicable if the receipt does not recite that it was issued for a parti -

cut an installment due as when the receipt is

only dated
- -

C . RECEIPT FOR A PART OF THE PRINCIPAL

receipt without the interest creditor waives his

-
such a ,
mentioning .
implies that the
right
to apply payment first to the interest and then to the principal .
It is
only when the principal
is fully receipted for and there is failure by the creditor to reserve claim for interest, that the
that the said interest
paid will arise
presumption has been .
 D. PAYMENT OF TAXES

-
there is no
presumption that previous taxes have been paid by payment of later ones .

E . NON -
PAYMENT PROVEN

A presumption cannot prevail against a

proven fact
-

REMEDIES AVAILABLE TO CREDITORS IN CASE OF BREACH

A .
Exact fulfillment or SPECIFIC PERFORMANCE ( specific real obligations) , or SUBSTITUTE PERFORMANCE

( Personal obligations ) with damages .

B .
Pursue the leviable ( not exempt from attachment under the law ) property of the debtor .

C . Exercise all
rights ( like right to redeem ) and bring all actions of the debtor ( like the right to collect )

from the debtor of his debtor ( SUB ROGATORY ACTION or ACCION SUBROGATORIAD except those inherent in

to the of the
personal person debtor .

Ask the court to rescind acts contracts which the debtor have done to re fraud
D . or
impugn or
may
him when he cannot in manner recover his claim ( RESCISSORY ACTION or ACCION PAULI ANA )
any

TRANS MISS 11314M OF RIGHTS

* General Rule

All rights are acquired by virtue of an

obligation are transmissible .

EXCEPTIONS
A .
Prohibited by law
-
when prohibited by law like the rights in partnership ,
agency and commodatum which are purely
character
personal in .

B .
Prohibited by stipulation of the parties
-
when prohibited by stipulation of the parties ,
like the stipulation that upon the death of
the creditor the obligation shall be extinguished
,
or ,
that the creditor cannot assign his credit to

another .

such stipulation being contrary Very least

-
,
to the
general rule ,
must be
clearly proved or ,
at the

clearly implied from the wordings or terms of the contract itself .

 Chapter 3 Section 1 Pure and conditional obligations

Different kinds of obligation

Classification of obligation Classification of Obligation

Primary :
secondary :

i .
Pure i .
Unilateral

2 .
Conditional 2 .
Bilateral

s .
With a period z .
Real

4 .
Alternative 4 . Personal

s . Facultative s .
Determinate

a . Joint 6 . Generic

7 .

solidary y . Civil

8 .
Divisible 8 .
Natural

a .
Indivisible a .

Legal
to .
With a
penal clause to .
Conventional

it .
Penal

section 1 and conditional

.
Pure
obligations
unreasonable
Pure
obligation ( Article 1179 )
date fulfillment
is not
subject to any condition and no specific period or for its
- .

-
it is immediately demandable provided that there will ,
be no
absurdity .

Condition
which of obligation
- A future or uncertain event , upon the happening of ,
the effectivity or
extinguish ment an

or right subject to it depends .

It also refer to past event unknown to the parties which refers to the knowledge to be acquired
may a
-

in the future of event which at the moment is unknown to the parties interested
a past .

Conditional obligation
whose subject in another to the fulfillment of condition
one consequences are one
way or a
-
.

depend e kung mangy ayah

'

ang obligation o hindi .

do on magkakaroon o hindi ng isang conditional obligation .

acquisition extinguish ment already acquired shall

the of rights as well as the or loss of those are
-

, ,

depend upon the happening of the event which constitutes the condition .

characteristics of a condition

A. Future and Uncertain

-
In order to constitute an event as a condition , it is not enough that it be future ,
it must also be uncertain .

" "

balsa mangy ari sa future

B . Past but Unknown

condition refer past If it refers future event both its the time
A
may
to a event unknown to the
parties to a
very occurrence and
-
. .

such occurrence must be certain ,

otherwise ,
it is not a condition .

c .
Possible
-
A condition must not be impossible .
 Two Principal kinds of conditions

A. suspensive condition or condition Precedent or condition Antecedent

-
one the fulfillment of which will
give rise to an
obligation or
right . The demand
ability of the
obligation is

suspended until the

happening of the uncertain event which constitutes the condition .

Kapag nangyari ang suspensive

condition do on
pa lang magkakaroon ng right ,
do on pal ang magiging demandable

ability obligation acquisition demand of the the

condition
rights
-
when the of or must await occurrence of the

( Article 1181 ) .

if condition did obligation

the not happen ,
the is
extinguished .

B .
Resolve tory condition or condition subsequent
-
one the fulfillment of which will extinguish an
obligation or
right already existing .

immediately demandable pero mawawala ang obligation kapag nangyari any condition .

when the
obligation is at once due and demandable but the right is extinguished lost
-

, or upon
the fulfillment of the condition ( Articles 1779 and 1181 ) .

When the
obligation is demandable at once

I . when the
obligation is
pure
.
Pweae mo
siyang idem and
kaagad
2 .
when it is
subject to a
resolution condition .

subject resolution period immediately demandable but when

period obligation is
extinguished
-

3 . when it is to a .
comes, .

Past event unknown to the parties

r .
A past event cannot be said to be a condition since the demand ability of an
obligation subject to a condition depends upon

will happen will not happen What is contemplated the law the knowledge to be acquired in the
whether the event or .

really by is

future of a past event which at the moment is unknown to the parties interested .
for it is
only in the sense that the event can be

deemed uncertain .
This knowledge determines whether the
obligation will arise or not -

future knowledge

PERIODIC OBLIGATIONS
PERIOD

A future and certain event upon the arrival of which the obligation subject to it either arises or is

extinguished .

a death is certain .

where duration of period depends upon the will of debtor (Article 1180
-
if the debtor promises to
pay when his means
permits him to do so , the obligation shall be deemed to be one

with a period . In this case ,

what depends upon the debtor's will is not whether he should pay or not for indeed

he binds himself to pay . what is left only to his will is the duration of the period .

If the debtor and creditor cannot agree as to the specific time for payment ,
the court shall fix the same on

the application of either ( Article 1197)

party
 Kinds of condition
classifications of conditions :

1- As to Effect

2 .
Form

g. possibility
4. cause or
origin
5 .
As to mode

6 .
As to numbers

5 .
As to divisibility

POTE STATIVE or FACULTATIVE CONDITION

A condition suspensive in nature which depends upon the sole will of one of the contracting parties .

Kinds of Potestative condition

A. suspensive Pote stative dependent upon the will of the debtor

i .
Conditional obligation Void ( Article 1182 )
where condition depends upon the
will of the debtor the conditional obligation shall be void because its
the pote stative solely
-

will it therefore demanded

validity and compliance is left to the of the debtor and cannot . , be easily .
In order not to be liable ,

the debtor will not just fulfill the condition .

there is no burden on the debtor and consequently ,
no
juridical tie is created . The obligation
fulfill the
is really illusory since the debtor will simply choose not to condition to evade the
obligation .

-
Both condition and obligation is void .

2 .
Only condition void
-
If the
obligation is a pre
-

existing one and ,

therefore ,
does not
depend for its existence upon
the fulfillment
by the debtor

of the pote stative condition .

only the condition is void leaving unaffected the obligation itself . Here the condition is

imposed not on the obligation itself but on its fulfillment .

B .

Resolutory Pote stative dependent upon the will of the debtor

obligation is valid its fulfillment fulfillment condition

the
although depends upon the sole will of the debtor since the of the
-

fulfillment
merely causes the extinguishment or loss of rights already acquired The debtor is
naturally interested in its
.
.

c. Pote stative dependent upon the will of the creditor

-

the obligation and condition is valid because the creditor is

naturally interested in the fulfillment of the
obligation -

"
"
l 'll give you money if
you want .

CASUAL
If the suspensive condition depends upon chance or upon the will of a third person obligation subject to it

is valid .

"

I will sell land if I win the lotto

"
you a .

MIXED
The obligation is valid if the suspensive condition depends partly upon chance and partly upon the will of a

third person .

"

A who is a building contractor obliges himself in favor of the owner to repair at ACE own expense any damage to the building taking place
"
after an earthquake or found by inspectors that there are construction defects .

TWO KINDS OF IMPOSSIBLE CONDITIONS

\
covered by 1183 which refers ONLY to SUSPENSIVE CONDITION .

A . PHYSICALLY IMPOSSIBLE CONDITIONS

-
when they ,
in nature of things ,
cannot exist or cannot be done . Includes
logical impossibility .

"
Kita ng mabuhay
"
Big yah pera pag mo ang patay .

B -
LEGALLY IMPOSSIBLE CONDITIONS or ILLEGAL CONDITIONS

-
when they are
contrary to or prohibited by LAW ,
MORALS .
GOOD CUSTOMS ,
PUBLIC ORDER , PUBLIC POLICY .

"

pinata y
"

Big yan Kitano pera pay mo

Siya .
 EFFECTS OF IMPOSSIBLE CONDITIONS ARTICLE 1183)

Conditional void
A .

obligation
Impossible conditions which depends upon them Both obligation and the condition
-
annul the obligation . the

are void .
The reason behind the law is that the obligor knows his
obligation cannot be fulfilled . He has

no intention to comply with his obligation .

"

condition and obligation are void because debtor is aware that the condition will not
happen .

B . CONDITIONAL OBLIGATION VALID

+ If the condition is negative , that is ,

not to do an impossible thing ,
it is
disregarded and the obligation is

pure and valid fulfilled when it impossible

rendered Actually the condition is .
,
always is not to do an

that it is the same as if there were no condition

thing so .

" "

Big yah Kitano pera kung di mo

bubuhayin ang patay
.

c- ONLY THE AFFECTED OBLIGATION VOID

-
if the
obligation is divisible ,
the part there of not affected by the impossible condition shall be

valid .

"

Big yan Kitano 10K

"

kapag ndbehta Kobe si Pedro

mo
yung lupa Ko at pay napatay mo
.

D . ONLY THE CONDITION IS VOID

If the obligation is existing obligation and therefore does not depend upon the fulfillment of
a
pre
- -

, ,

condition which is impossible for its existence the condition is void

the , , only .

RULES REGARDING CONDITIONS

POSITIVE CONDITION ( 1184)

-
the condition that some event happen at a determinate time shall
extinguish the obligation as soon as

the time expires or if it has become indubitable that the event will not take place .

dapat mangy avi nangyari impossible mangyavi obligation extinguished

* is
merong sa allotted time frame ,
pag di or ng ,
.

"

Kapag ki nasal ka before end of Kiang

"
2020 big yan Kote .

refers to positive and suspensive condition -

the happening of an event at a determinate time .

WHEN THE OBLIGATION IS EXTINGUISHED

A . As soon as the time expires without the event taking place .

B As soon as it becomes indubitable that the event will not take place although the time specified
has not expired .

NEGATIVE CONDITION 11185)

condition that will

-
The some event not happen at a determinate time shall render the obligation
effective from the moment the time indicated has elapsed ,
or if it has become evident that the event

cannot occur .

condition Wag gagawin hang gang sa determinate time

* is
negative Mong
.
.

* should NOT happen

"
ka
Huwag Muna
Mag aandk hanggang end of this year Bibigyan ko
-
"

Kayo ng kotse
.
.

speaks of a negative condition -

that an event will not happen at a determinate time .

WHEN THE OBLIGATION BECOMES EFFECTIVE

A . From the moment the time indicated has elapsed without the event taking place .

B . From the moment it has become evident that the event cannot occur ,
although the time indicated has

not yet elapsed .

 DOCTRINE OF CONSTRUCTIVE or PRESUMED FULFILLMENT OF SUSPENSIVE CONDITION ( Article 1186)

condition shall fulfilled its fulfillment for must

The be deemed when the obligor voluntarily prevents one not

by his own fault or bad faith . The act must be voluntary and there must be actual prevention .

REQUISITES :

A . The condition is suspensive .

B- The obligor actually prevents the fulfillment of the condition .

c . He acts
voluntarily .

prevents fulfillment Ex : pinainom PWEDE MAGDEMAND ANG VICTIM

* obligor Ka
ng pampatae para matalo ka sa pustahan
.
.
.

DOCTRINE OF CONSTRUCTIVE or PRESUMED FULFILLMENT OF RESOLUTORY CONDITION

This article applies also to an obligation subject to a resolutory condition with respect to the debtor who is

bound to return what he has received upon the fulfillment of the condition .

Ex : Si X pinapahiram kotse Kay Y ha bang

nag aaron
-

siya .
si Y
Sadiya n'
yang binabagsak grades para tumagal Kote sa Kanya . The
obligation is EXTINGUISHED .

RETROACTIVE EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITION ( ARTICLE 1187 )

A .
IN REAL OBLIGATIONS

-
An obligation to
give subject to a suspensive condition becomes demandable
only upon the fulfillment of the
condition the day when the obligation was
condition . However ,
once the is fulfilled .
its effect shall
retroact to

constituted .
babalik

Ex : will land to B the BAR

A give if B passes exam .

B .
IN PERSONAL OBLIGATIONS

fulfillment of
with respect to the retroactive effect of the a suspensive condition in
obligations to do or not
-

to do , no fixed rule is provided . This does not mean , however, that in these obligations the principle of

retroactivity is not applicable -

The courts the discretion and mind the intent of the

are empowered by use of sound bearing in
parties ,
to determine ,
in each case ,
the retroactive effect of the suspensive condition that has been

complied with . It includes the power to decide that the fulfillment of the condition shall have no

retroactive effect or from what date such retroactive effect shall take effect .

RETROACTIVE EFFECTS AS TO FRUITS AND INTEREST IN REAL OBLIGATIONS ( Article 1187 )

A . In Reciprocal Obligations
-

there is no retroactivity because the fruits and interests during the pendency of the condition shall
deemed to compensate each other though they really be unequal for the purpose
be mutually even

of convenience and practical effectiveness since the parties would not have to render mutual

have received
accounting of what
they
.

B . In unilateral
Obligations
-
there is
usually no retroactive effect because
they are
gratuitous . The debtor receives nothing from the
fruits and interests to the debtor from the nature and other circumstances
creditor . Thus ,
belong unless

of the obligation it should be inferred that the intention of the person constituting the same was different -

kung simony nakakuha fruits and interests Sonja magtalalsi The retroactive OWNERSHIP
*
ng any
.

only is .

RIGHTS PENDING FULFILLMENT OF SUSPENSIVE CONDITION ( Article 1188 )

of creditor
A .

Rights
his
-
He may bring appropriate actions
take or for the preservation of right ,
as the debtor may render nugatory
condition
the
obligation upon the happening of the
.
 B. Rights of Debtor
-
He is entitled to recover what he has
paid by mistake
prior to the
happening of the suspensive condition . This
the debtor because the creditor not able fulfill the condition
right is
granted to
may or
may be to

that the This

imposed and hence, it is not certain
obligation will arise . is a case of SOLUTIO IN DEBIT

Note that the payment before the fulfillment of the condition must be
by mistake otherwise , ,

the debtor is deemed to have impliedly waived the condition .

In any case ,
he cannot recover what he has

prematurely paid once the suspensive condition is fulfilled .

RULES IN CASE OF LOSS , DETERIORATION ,

OR IMPROVEMENT OF THING DURING PENDENCY OF SUSPENSIVE CONDITION ( 1189 )

A .
loss of thing without debtor 's fault
-
the
obligation extinguished As
is . a
general rule , the debtor is not liable for a fortuitous event .

B .
loss of thing through debtor 's fault

the debtor is
obliged to
pay damages
-

C. DETERIORATION OR IMPAIRMENT OF THING WITHOUT DEBTOR 'S FAULT

- The creditor suffers the deterioration ,

impairment , or reduction in value .

D. DETERIORATION OF THING THROUGH DEBTOR 'S FAULT

creditor may choose between the rescission its with

indemnity for
-
The of the
obligation or fulfillment
in either case
damages .

E .
IMPROVEMENT OF THING BY NATURE OR TIME

the improvement shall inure to the benefit of the creditor civil

rigghtyog
- .

Article 579 of code

✓
F- IMPROVEMENT OF THING AT EXPENSE OF DEBTOR .

-
The debtor shall have no other
right than that
granted to the
usufruotua
EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION ( Article 1190)

A .
In real
obligations
-
when the resolutory condition in an
obligation to
give is fulfilled ,
the
obligation is
extinguished and
the parties are
obliged to return to each other what
they have receive under the
obligation .

EFFECTS

There is a return to the status In other words the effect of the fulfillment of the condition is retroactive
quo
.

r .
.
,

returned is possession third in faith the the entitled to

2 .
In case the
thing to be
legally in of a person good ,
remedy of party
the
restitution is
against party bound to return .

restitution is fruits
s .
the obligation of mutual absolute .
It
applies not
only to the
thing received but also to the and interests .

The fruits or the interests thereon should also be returned after deducting of course the expenses made for their production
and preservation ( Article 443)
gathering .

The rules in Article 1189 will apply whoever has the to return in the loss
4 . to
duty
deterioration or improvement of the
thing .

The intention the avail of restitution

b- only exception to the rule is the of parties not to .
.

B . In Personal
obligations
-
In such
obligations ,
the courts shall determine the retroactive effect of the fulfillment of the resolution
condition courts in the exercise of discretion disallow retroactivity taking into
. the
may even ,

account the circumstances of each case .

BILATERAL OBLIGATIONS
KINDS OF BILATERAL OBLIGATION
contract of sale
usually
,
( nap
A Reciprocal Bilateral obligation
-
Arises from the same cause and the performance of one party is
designed to be the equivalent and the

condition for the performance of the other Each treat the fulfillment of what is incumbent upon
.

party may
the other as a suspensive condition to this
obligation and its non -
fulfillment ,
as a tacit or implied resolutovy
rescission of
condition ,
giving him the
right to demand the the contract .

B. NON
reciprocal Bilateral
Obligation
-

-
those which do not impose simultaneous and correlative performance on both parties .
The performance
of one party is not dependent upon the simultaneous performance by the other .

REMEDIES IN RECIPROCAL OBLIGATIONS ( Article 1191 )

A . Action for specific performance or fulfillment of the

obligation with damages
with
B. Action for rescission of the obligation damages
rescission in Article 1191 where there is non compliance by of the contracting parties in
governs one case
-
-

of reciprocal obligations . The

remedy is granted for breach by the other
contracting party that violates
the reciprocity between them .

limitations on the right to demand rescission

A. Resort to the courts

-
The rescission contemplated by Article 1191 is a
judicial rescission or one
granted by a court .

rights judicially for the

The injured party has to resort to the courts to assert his same article
that rescission claimed just authorizing
"
the court shall decree the there be
provides ,
unless cause
"
the fixing of a period .

B .
Power of court to fix period
-
The court has
discretionary power to allow a
period within which a person in default may be
to
permitted to perform obligation if there
his is a just cause for
giving time the
guilty party
such as when he is willing to comply with his obligation but needs time to do so and not where

he refuses to perform The default incurred was not willful

.
or could be excused in view of the

surrounding circumstances .

c .

Right of Third person

-
If the thing subject matter of the
obligation is in the hands of a third person who acted in
good
faith rescission is not available as a
remedy .

D. substantial violation
rule is rescission will not be granted for trivial causes
slight breaches of contract
-

the general or

substantial fundamental to
the violation should be and as defeat the
object of the
parties in

making the
agreement .

waiver
E of
right
-

rescind waived expressly impliedly

-
the
right to
may be ,
or .

F- Available only to innocent party

-
It can be demanded only if the plaintiff ready, willing and able to comply
is with his own

obligation and the other is not .

Moreover, the
guilty party cannot rescind .
 RESCISSION WITHOUT PREVIOUS JUDICIAL DECREE

A .
where automatic rescission expressly stipulated
The parties may validly enter into an
agreement that violation of the terms of the contract would cause
-

cancellation there of even without judicial intervention or permission Where the

.
contract itself contains
such a stipulation ,
the right rescind is not implied but expressly recognized by the parties .
Hence ,
Article
Mai is not applicable .

B .
where contract still executory
-
di par na perform
is
where there no performance yet by both parties but one
ready and willing to comply with what
is
-

is incumbent upon him and the other is not the , willing party may by his own declaration
,
,

rescind the contract without a previous judicial decree of rescission .

in such a case ,
it is not

necessary that there be stipulation providing for automatic rescission .

RULES IN CASE OF BREACH BY BOTH PARTIES 1 Article 1192)

A . First Infractor known

-

one
party violated his obligation ; subsequently ,
the other also violated his part of the obligation . In this

case ,
the liability of the first infractor should be
equitably reduced .

B .
First Infract cannot be determined

violated his obligation followed by the other but it cannot be determined which of them the
one partly was
-

first infractor .
The rule is that the contract shall be deemed extinguished and each shall bear his

own
damages .