Joane Luna

BSA 4th Year

Asynchronous formative assessment

1. Obligations arising from law are not presumed.
Only those which the law clearly stipulate or express are demandable. If the law does not
include, therefore it excludes.
2. Obligations arising from contracts have the obligatory force between the contracting parties.
Obligations either arise from law or contracts and they are juridical necessities. In other
words, they have to be complied with. It follows that, under the law, obligations arising
from contracts and those arising from law are viewed as having the same binding effect.
They are necessities the compliance with which may be enforced in court and
noncompliance with the same has legal consequences.
3. The debtor incurs delay when there is judicial or extrajudicial demand except when demand is
not necessary by express provision of law or by stipulation of the parties.
The debtor incurs in delay from the time the obligee judicially or extrajudicially demands
from them the fulfillment of their obligation but the debtor fails to perform his obligation.
Again the general rule apply that if there is no demand there is no delay. Demand is a must.
But, there are instances where demand is not necessary: When the obligation or the law
expressly so declare, when from the nature and the circumstances of the obligation it
appears that the designation of the time when the thing is to be delivered or the service is to
be rendered was a controlling motive for the establishment of the contract or when demand
would be useless, as when the obligor has rendered it beyond his power to perform.
4. The obligor is not responsible for the loss of the thing due to fortuitous event except when he has
already incurred delay.
When the thing is loss due to fortuitous event, obligor will not be responsible as long as
he/she does not already incurred delay
5. Diligence of a good father of a family.
It means an ordinary care. Just like a father of a family, it is a care that an average person
would do in taking care of his property.
6. Determinate things
A thing is determinate when it is particularly designated or physically segregated from all
others of the same class.
7. Accessions
Accession generally refers to the addition of something to personal property through the
addition of labor.
8. Accessories
It is anything that is necessary for the perfection, use, and preservation of a thing.
9. Distinguish period with conditions. Cite illustrations
A condition is an uncertain event; but a period is an event which must happen sooner or
later, at a date known beforehand, or a time which cannot be determined.
10. Distinguish resolutory condition with suspensive condition. Cite examples
If the obligation may not be enforced until the uncertain event occurs, the condition is
suspensive. If the obligation may be immediately enforced but will come to an end when
the uncertain event occurs, the condition is resolutory.
11. Distinguish resolutory period with suspensive period. Cite Examples.
In suspensive period (ex die) the obligation begins only from a day upon the arrival of
period, while in resolutory period (in diem) the obligation is valid up to a day certain and
terminates upon arrival of the period.
12. Discuss the rule on loss, deterioration and improvement of thing subject of the obligation during
the pendency of the suspensive period and suspensive condition.
If the thing is lost without the fault of the debtor, the obligation shall be extinguished. If the
thing is lost thru the fault of the debtor, he shall be obliged to pay damages. When the thing
deteriorates without the fault of the debtor, the impairment is to be borne by the creditor. If
it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either case. If
the thing is improved by its nature, or by time, the improvement shall inure to the benefit of
the creditor. If it is improved at the expense of the debtor, he shall have no other right than
that granted to the usufructuary.
13. Cite illustrations for the different kinds of obligations.
Condition – future and uncertain event upon which the existence or extinguishments of an
obligation is made to depend.
Pure Obligation – one which does not contain any condition or term upon which its
fulfillment is made to depend.
Conditional Obligation – kind of obligation which is subject to condition.
1. Suspensive (condition precedent/antecedent) – its fulfillment gives rise to the
obligation, if not fulfilled, no obligation will arise.
2. Resolutory (condition subsequent) – extinguishes the obligation which is already
existing.

14. Payment of Performance

Payment, the performance of an obligation to pay money. A person under such an
obligation is called a debtor, and a person to whom the obligation is owed is called a
creditor. The obligation may arise in various ways, but it is most commonly the result of a
commercial transaction or contract between the parties.
15. Dation in payment
A mode of discharging a debt or claim by the debtor's giving to the creditor with the latter's
consent something in full satisfaction of the obligation but of a character different from that
originally called for by the obligation.
16. Payment by cession
It is the assignment or abandonment of all the properties of the debtor for the benefit of his
creditors in order that the latter may sell the same and apply the proceeds thereof to the
satisfaction of their credits.
17. Tender of payment
A tender of payment may be defined as an unconditional offer by a debtor or obligor to pay
another, in current coin of the realm, a sum not less in amount than that due on a specified
debt or obligation.
18. Consignation
The act of depositing the thing due with the court or judicial authorities whenever the
creditor cannot accept or refuses to accept payment and generally requires a prior tender of
payment.
19. Loss of the thing due
 An obligation which consists in the delivery of a determinate thing shall be extinguished if
it should be lost or destroyed without the fault of the debtor, and before he has incurred in
delay.
20. Condonation or remission of debt
A mode of extinguishment of obligation wherein the creditor gratuitously renounced his
right against the debtor with the latter's acceptance. The remission is simply a form of
donation. It may be made expressly or impliedly.
21. Confusion or merger of rights
It is a combination of the rights of debtor and creditor in the same individual. It eliminates
the debt or obligation of a person subjected to it.
22. Compensation
An act which a court orders to be done, or money which a court orders to lie paid, by a
person whose acts or omissions have caused loss or injury to another, in order that thereby
the person damnified may receive equal value for his loss, or be made whole in respect of
his Injury.
23. Novation
A novation is an agreement made between two contracting parties to allow for the
substitution of a new party for an existing one.
24. Subrogation
When one party takes on the legal rights of another, especially substituting one creditor for
another. Subrogation can also occur when one party takes over another's right to sue.
25. Legal Subrogation
The substitution of one person in the place of another with reference to a lawful claim,
demand, or right, so that he or she who is substituted succeeds to the rights of the other in
relation to the debt or claim, and its rights, remedies, or Securities.
26. Conventional Subrogation
When one individual satisfies the debt of another as a result of a contractual agreement that
provides that any claims or liens that exist as security for the debt be kept alive for the
benefit of the party who pays the debt.
27. The obligatory force of contracts
Obligations arising from contracts have the force of law between the contracting parties and
should be complied with in good faith. Under this principle of obligatory force, it can also
be said that contracts are the law and, as a result, courts must enforce them between the
contracting parties.
28. Autonomy of contracts
The principle of autonomy considers contracts as tools for realizing individual self-
determination by means of voluntarily entering legally binding agreements. This means that
parties are free to enter or not to enter into agreements.
29. Mutuality of contracts
Mutuality of contract refers to the reciprocal understanding or agreement between parties.
This is an essential ingredient in the creation of a legally enforceable contract. An important
part of a contract is mutuality, which states that both parties should be bound or neither
should be.
30. Relativity of contracts
The principle of relativity of the contract's effects means that a contract can generate rights
and obligations only in favor of, or regarding the obligation of the contracting parties, as
well as of persons who became parties after closing the contract or assimilated to the
parties.
31. Consensual contracts
A consensual contract is a contract that is founded on the mere unanimous agreement of
interested parties and doesn't need to be implemented through an official procedure.
32. Preparatory contracts
Is a type of contract that is intended to prefigure, secure or outline a future definitive
contract, which gives it its reason for being? The preparatory contract is in itself an
obligation, a commitment to enter into another contract in the future, we must mention then
that the preparatory contract will have a formal effect and later the definitive contract to be
concluded will contain the substantive effects.
33. Accessory contracts
An Accessory contract is a contract that is entered into primarily for the purpose of carrying
out a principal contract. It is made for the purpose of assuring the performance of a prior
contract.
34. Nominate contracts
Nominate contract is a contract distinguished by a particular name, such as sale, insurance,
or lease. The use of these terms determines some of the rules governing the contract and the
contractual rights of the parties without the need for special stipulations.
35. Innominate Contracts
Innominate contract refers to a contract which is not classifiable under any particular name.
In an innominate contract, the law supplies nothing in addition to the express agreement of
the parties.
36. Gratuitous contract
A gratuitous contract is one, the object of which is for the benefit of the person with whom
it is made. It is a contract in which one party promises to do something without receiving
anything in exchange. Therefore in such contracts only one person is benefited.
37. Fraud
Any intentional act or omission designed to deceive others, resulting in the victim suffering
a loss and/or the perpetuator achieving a gain.
38. Mistake
An error in comprehending facts, meaning of words or the law, which causes one party or
both parties to enter into a contract without understanding the obligations or results. Such a
mistake can entitle one party or both parties to a rescission (cancellation) of the contract.
39. Violence
Conduct by force or threat of force, physical or other harm or threat of physical or other
harm, or intimidation directed against the woman or child.
40. Intimidation
Intimidation means causing of a reasonable apprehension of injury to a person or to the
person's spouse, de facto partner, child or defendant, or of violence or damage to any person
or property.
41. Undue Influence
Undue influence occurs when an individual is able to persuade another's decisions due to
the relationship between the two parties. The more powerful individual uses this advantage
to coerce the other individual into making decisions that might not be in their long-term
best interest.
42. Discuss why there are defective contracts?
Defective contracts can be classified in several ways: Voidable and Annullable Contracts:
These can be defective if one party was incapable of giving consent or if consent was
granted by mistake, threat, violence, fraud, or undue influence.
43. Discuss different rescissible contracts and the recourse of the aggrieved party.
A rescissible contract is one that was entered into legally by the contracting parties but has
resulted in economic damage to one of the parties or an outside party. The court can
therefore rescind, or set aside, the contract for equitable reasons. Valid contracts can be
legally rescinded under certain circumstances. Types of contracts that are rescissible under
Article 1381 include:
 Any contracts entered into by guardians when their wards suffer lesion by more than
one-fourth of the items that are the object thereof.
 A contract agreed to in representation of an absentee, if the absentee suffered the lesion
mentioned above.
 Any contracts relating to fraud of creditors when the creditors cannot collect what is
owed to him or her in any other manner.
 Anything in litigation if it was entered into by the defendant without the knowledge or
approval of the litigants themselves or a competent judicial authority.
 Any other type of contract the law declares subject to rescission.

44. Discuss different voidable contracts and the recourse of the aggrieved party.
A voidable contract is a formal agreement between two parties that may be rendered
unenforceable for any number of legal reasons, which may include:
 Failure by one or both parties to disclose a material fact
 A mistake, misrepresentation, or fraud
 Undue influence or duress
 One party's legal incapacity to enter a contract (e.g., a minor)
 One or more terms that are unconscionable
 A breach of contract
45. Discuss the different unenforceable contracts and the reason for unenforceability.
An unenforceable contract is a written or oral agreement that will not be enforced by courts.
Contracts may be unenforceable because of their subject matter, because one party to the
agreement unfairly took advantage of the other party, or because there is not enough proof
of the agreement. The following contracts are unenforceable, unless they are ratified:
 Those entered into in the name of another person by one who has been given no
authority or legal representation, or who has acted beyond his powers;
 Those that do not comply with the Statute of Frauds as set forth in this number.
46. Discuss void or inexistent contracts.
Inexistent and void contracts cannot be ratified neither can the right to set up the defense of
illegality be waived, they are the following:
 Those whose cause, object or purpose is contrary to law, morals, good customs, public
order or public policy;
 Those which are absolutely simulated or fictitious;
 Those whose cause or object did not exist at the time of the transaction;
 Those whose object is outside the commerce of men;
 Those which contemplate an impossible service;
 Those where the intention of the parties relative to the principal object of the contract
cannot be ascertained