EVIDENCE – if may gusto kang iprove, provide ka ng ebidensiya

AFFIDAVIT – a written statement that refers to statements of fact that you want to state in a
document (Affidavit of loss). Piece of paper that contains your statement. Usually under oath,
notarized.
FELONY – is the legal term for crimes committed in violation of the revised penal code of the
Philippines. If you commit a felony/crimes, you will be imprisoned or sentenced to
imprisonment.
OFFENSE – if the crime is punishable under the Special Laws other than the Revised Penal
Code.
HEARSAY – if you have a statement and that statement of fact is not based on your personal
knowledge. You did not see what happened but you are the one who is making a statement.
ACTION – for filing a case in court
SMALL CLAIMS – this is a civil action whereby a person files a case to claim an amount not
exceeding 400,000.
DOMICILE – residence, kung saan ka nakatira. Residence may be temporary, domicile ay
permanent.
TESTIMONY – statements made in open court
DAMAGES – kunwari sinunog ni pedro bahay ni juan. Now Juan filed an action against Pedro
to demand for payment of his loses by reason of the arson. The amount demanded by Juan is
referred to as DAMAGES under law. It is an award granted by the court to the injured party for
payment of the losses suffered by him. Money awarded to the winning party, in layman’s term.
LIEN – claim of a person over a property owned by another. Pag walang lien ang property,
malinis siya walang sanla.
EJECTMENT – for evicting a tenant, lessee, or rentee. Evicting a person who is illegally
occupying your property. You can file an ejectment case against that person.
DEFENDANT – is the person against whom a case was filed. Pag civil case lang
STAY – stop.
PARTY – respondent and complainant, parehas na silang party. Vendor or buyer magiging party.
Parties to a contract, mga involved.
BAIL – for example, a person is arrested by police. You may appeal for a bail to escape from
prison while your case is going.
REST – when a party has finished presenting evidence. He can also REST his case. “I Rest my
case your honor”
PLAINTIFF – siya naman yung nagfile ng case, civil case
SUMMONS – documents issued by the court ordering the defendant to answer the complaint
filed against him/ Summon ka na sa court
WARRANT – iissue ng court kung kunwari ipapadakip nila yung tao
INDIGENT – a litigant who cannot afford to hire a lawyer and filing fees or court docket fees.
Court does not charge a filing or docket fee to them
PLEADINGS – complaint or answer, general term ng mga documents na pinapasa sa court
ALLEGATIONS – statements. Allegations ang mga nakasulat sa affidavit
WITNESS – nagbigay ng testimony
WRIT – order issued by the court
PARCEL – piece
JUDGMENT – decision of a court in a case
SENTENCE – penalty imposed by the court to the accused na naprove yung guilt nila
OATH - panunumpa, so that the person will be held liable if he makes false
VENUE – place where you file your case
PERJURY – when a person makes false statements under oath
INTRODUCTION TO LAW
Law – any rule of action or any system of uniformity.
General Divisions of Law
1. Law in its strict legal sense
- State law (promulgated and enforced by the state)
2. Law in its non-legal sense
- Divine Law, Moral Law, and Physical Law

 State law – positive law, imperative law, civil law, municipal law (civil law, RA, etc)
 Divine Law – philosophical theology. It is the law of religion and faith. Divine law
differs to what one’s beliefs. (Ten Commandments)
 Natural Law – law of nature or metaphysics, not by divine inspiration. It is a basis for
state law.
 Moral Law – Ethics, not absolute kasi based siya sa community, nag-iiba rin according sa
time. Polygamy (more than 1 asawa), same sex marriage, women’s fashion
 Physical Law – law of physical science or physics. Law of gravity
3 Main Branches of the Government
1. Legislative Department
- Congress >> Lower House (Congressman, Partylist Representatives) and Upper
House (24 Senators)
- Promulgate or enact law
2. Executive Department
- President and cabinet members
- Implement, enforce ng batas
- Law enforcement agency
3. Judiciary
- Supreme Court and other lower courts
- Interpretation of the law
- Pag may conflicts
Bago maging law, BILL and tawag. For example bill is initiated by the senate, kailangan may
concurrence ng two congress. After non, ipresent kay president (either veto or sign). Veto means
objections, then ireturn. Pag hinayaan ng president, within 30 days, bill becomes the law.
Divine law, moral law, and state law only apply to men, unlike physical law
State law in its general sense, it refers to all laws taken together.
Law in its specific sense, is a rule of conduct, just, obligatory, promulgated by legitimate
authority, and of common observance and benefit.
Characteristics of Law
1. Rule of Conduct
- Kasi nga yung batas sinasabi kung alin yung dapat at di dapat gawin
2. Obligatory
- Positive command, non-observance has punishments
3. Promulgated by legit authority
- Legislature (statutes)
- Local law (ordinance)
o Local legislative (in province, board members sanggunians panglalawigan. In
city, sangguniang panglungsod. In municipality, sangguniang bayan. In
barangay, kagawad.)
o Local executive (province – governor. City – mayor. Barangay – Kapitan.
Municipal – Mayor)
4. Of common observance and benefit
- Regulates relation of men to maintain harmony
Sources of Law
1. Primary Sources
a. Constitution
o People ang nagpromulgate. It is more powerful than statutes. PAg violate siya
sa constitutional, tanggal.
o Judiciary ang magiinterpret
b. Legislations
o Includes ordinances (LGUs)
c. Administrative or executive orders, and implementing rules and regulations (IRR)
o Pedeng maggaling sa executive, through various agencies (DOH, DILG,
DSWD)
d. Judicial Decisions or Jurisprudence
o Pag nagdecide ang supreme court sa isang particular controversy
o Doctrine of precedent
e. Custom
o Practice ng mga tao (bayad ganon)
2. Secondary
- Backup lang
- Hindi mandatory, persuasive lang
Classifications of Law
1. According to purpose
a. Substantive Law
o Portion of the body of law. Regulate and define rights and duty. Either private
(law of obligations and contracts – private individual to private law) or public
(criminal – people of the Ph VS you). Define lang yung rights and duties.
 b. Adjective Law
o Remedial or procedural law. Pano mo ieenforce yung karapatan na meron ka
(Pano mo makukuha kunwari yung utang ganon, yung law na susundin mo)

2. As to its subject matter

a. Public
o Relationship of state to people (party yung state)
b. Private
o Relationships of private people to another (arbiter yung state dito)
Obligation is a juridical necessity to give, to do, or not to do. Obligatio latin word, binding or
tying. To give, to do, or not to do are the duties of obligor/debtor.
Juridical Necessity, pag di nagcomply, the courts may compel the person who’s obliged to
deliver (This is done to avoid impunity – exemption from punishment or freedom)
Nature of Obligations
1. Civil
- Example ay utang, you are obliged to pay (you enforce it on court)
2. Natural
- You cannot enforce it in court and demand compliance, the debtor may voluntarily
perform the obligation. Not based on positive law. (for justice lang)
- Quasi-contracts, Solutio Indebti, Negotium Gesto
Essential Requisites of Obligation
Without them, obligation would not be binding between two parties
1. Passive Subject
o The person bound to the fulfillment of the obligation
2. Active Subject
o The person entitled to demand the fulfillment of the obligation
3. Object or prestation
o The conduct required to be observed by the debtor
4. Juridical/Legal Tie
o Vinculum juris, it binds or connects the parties to the obligation
Form of an Obligation
It is the manner in which an obligation is manifested. It may be oral, written, or both.
Right is the power to demand from another any prestation. Without this, no obligation is present.
Legal wrong is an act or omission of a person in violation of the legal right of another.
Cause of action – need na meron ka bago ka magfile ng action (scrap of paper)
Elements of Legal Wrong or Injury
1. Legal right in favor of a person (plaintiff or creditor)
2. Correlative legal obligation on the part of the debtor or defendant not to violate the right
(to respect the right of creditor)
3. An act or omission in violation of the right which resulted into an injury or damage
Two Kinds of Obligations according to subject matter
1. Real
- To give, to deliver, I bind myself to deliver a box of facemask to you
2. Personal
- To do, or not to do
1. Positive Personal Obligation – obligation to do or to render some service
2. Negative Personal Obligation – obligation not to do
Sources of Obligation
2. Law – obligations is imposed by the law itself (pay taxes (train law), support one’s law
(family code))
o Obligations derived from law are not presumed (so clear statement must be
expressed because without it, there is no obligation)
o Legal obligations
3. Contract – arising from the stipulations of the parties (stipulation - a condition or
requirement that is specified or demanded as part of an agreement.)
o Obligations arising from contracts have the force of law between the
contracting parties to be complied with in good faith
o Contractual Obligation
o Freedom of contract has constitutional and statutory limitations (Contracts
should not run contrary to what the law provides)
o Validity of contracts (consent, object, and cause)
o … with in good faith, dapat kung ano yung stipulations (sincerity and honesty
should be observed to prevent undue advantage on the part of the other)
o Breach of contract – violation of contract in absence of legal justifiable
reasons
4. Quasi-contracts – no one shall be unjustly enriched at the expense of another (lawful
voluntary and unilateral acts – provision against unjust enrichment) Example ay yung
nagbayad ka nang sobra, solutio indebiti tawag don
o Quasi-contract is not a contract because the consent is supplied by fiction of
law
o Negotiurum Gestio and Solution Indebiti (two types of quasi-contracts)
o Negotiurum Gestio – parang niligtas mo yung property ng iba may obligation
sila na bayaran yung medical expenses mo kasi kung di mo niligtas edi totally
damaged na yung property niya
 o Solutio Indebiti – by mistake yung delivery sayo (1. There is no right to
receive something delivered 2. By mistake)
5. Acts or omissions punishable by law: crimes or delicts – obligation na dahil sa kapalit ng
crime mo (civil liability arising from criminal offense)
o Example ay rape, yung criminal aspect non yung imprisonment, pero yung
civil aspect nun ay civil liability for damages
o Sometimes not only moral evil but also material damage is caused
o Crimes na walang civil (Election, Drugs, etc)
o Civil liability (1. Restitution – return (if can be return) 2. Reparation for the
damage caused if restitution is not possible– babayaran mo yung damage 3.
Indemnification for Consequential Damages – anxiety, sleepless nights)
6. Quasi-delicts or tort - negligence or fault, no contractual relation, may damage (pag
meron edi contract na) (2176) (2183 meron dapat pede kasuhan)
o There must be an act or omission that causes damage to another
o … through fault or negligence
o Direct connection between the act or omission and the resulting damage
o No pre-existing contractual relation between the parties
o Dito, pedeng isettle na lang ng parties unlike sa crime

Quasi-Contracts, Quasi-Delicts or Acts or Omission Punishable by Law is actually under LAW

NATURE AND EFFECTS OF OBLIGATIONS
Real Obligations
Every person obliged to give something is also obliged to take care of it with proper diligence of
a good father of a family unless the law or the stipulation of the parties requires another standard
of care.
Note: some requires extraordinary diligence such as common carrier as imposed by law. May
presumption of negligence pag aksidente
1. Specific or Determinate Thing - if particularly designated or physically segregated of the
same class (determinate)
Example: The watch you wear, 100 Pesos Bill with serial number of 12345678
2. Generic or Indeterminate Thing – a thing is indeterminate when it refers only to a class or
genus
Determinate is identified by its individuality; however, generic is identified by its specie.
In specific thing, debtor cannot substitute without the creditor’s consent either superior or
inferior. (Specific Real Obligation)
For generic things, the debtor can give anything of the same class and of the same kind.
(Generic Real Obligation)
Duties of the debtor in an obligation to give or to deliver a specific or determinate thing
1. Preserve the thing (take care of the thing with the proper diligence of a good father of a
family - ordinary care/ ordinary diligence/ due diligence)
2. Deliver the fruits of the thing (The creditor has a right to the fruits of the thing from the
time the obligation to deliver it arises. However, he shall acquire no real right over it until
the same has been delivered to him – pag bayad na, may ownership na si creditor)
3. Deliver the accessories and accessions
4. Deliver the thing itself
5. Answer for damages in case of non-fulfillment or breach
Duties of a debtor in an obligation to give or to deliver a generic or indeterminate thing
1. Deliver a thing which is of the quality intended by the parties
2. To be liable for damages in case of fraud, negligence, delay or contravention of the tenor
thereof
3 Kinds of fruits
1. Natural fruit
- product of the soil or by animals (no human intervention or human labor)
2. Industrial fruit
- through cultivation or labor
3. Civil fruit
- By virtue of juridical relation (renter and landlord) (renta ng mga building, interest)
Ownership is acquired through delivery (actual delivery – shoppee, lazada; constructive delivery
– mga lupa). Walang delivery, walang ownership ang creditor (Therefore, if you do not have
ownership yet, you cannot compel him about the thing, you compel him to deliver it again)
1. Personal right
- To demand the fulfillment (laging may kagalit)
2. Real right
- Interest of a person over a specific thing, no definite passive subject (Ownership)
Remedies of a creditor in a real obligation whether generic or specific
Three options of a creditor in a specific real obligation (alternative – one at a time)
1. Demand specific performance with a right to indemnity for damages (kunwari di
dineliver)
2. Demand rescission or cancellation of obligation with a right to recover damages (pag di
dineliver magcancel ka na lang)
3. Demand payment of damages only if it is the only feasible remedy
Remedies of a creditor in a real obligation whether generic (no specific performance)
 1. Can be performed by a third person
2. Ask a third person to fulfill the obligation at the expense of the original debtor
General rule, pag may fortuitous event, exempted from liability ang debtor (2 exceptions) only
applies to specific thing because “genus never perishes”
1. Obligor delays the delivery
2. When the obligor has promised to deliver the same (determinate) thing to two or more
persons having different interests (pero pag di pa nadedeliver ganon pa rin)
In specific real obligations, all accessions and accessories must be delivered as well. Accessions
are fruits of or additions to or improvements upon the principal thing. (puno ganon) Accessories
are things joined to the principal thing for the latter’s better use or completion. (battery ng
cellphone, they should go together. Key of the house) – “accessory follows the principal so even
if not expressed, it is automatically added”
Personal Obligations
Positive Personal Obligation
Remedies of creditor sa poorly done, contrary to contract, not done positive personal obligation
1. The creditor siya na lang gumawa, yung expenses niya ay sa debtor’s expense
2. Recover damages
“What has been poorly done must be undone.”
Bawal dito (personal) yung specific performance something kasi nga involuntary servitude.
For example, contrary, you cannot compel them to perform it again, hire another third person
while the debtor pays the expenses
If poorly done, the debtor could be asked to undone, but cannot compel, hire third person.
If the debtor’s qualification is the determining motive for contract, then other performing
debtor’s obligation is considered not performed.
Negative Personal Obligation
1. Kunwari bawal, di siya pede specifically compel kaya ang gagawin, ipapaundo yung
forbidden thing + damages; If impossible, action for damages.
Types of Delay
Ordinary delay - merely the failure the perform the obligation on time (promised to
deliver a bicycle today, tomorrow is already an ordinary delay)
Legal delay (Default/Mora) - failure on time, which failure constitutes breach of
obligation
Legal delay ang tinutukoy, obligation to pay for damages
Types of Legal Delay
Mora Solvendi – delay on the part of the debtor
Mora Accipiendi – creditor (to accept)
Compensatio Morae – delay of the obligors in reciprocal obligations like in sale (the delay of
obligor cancels the delay of obligee)
Requisites for a Mora Solvendi to arise
1. Failure of the debtor to perform his positive obligation on the date agreed upon
2. May demand na dapat by the creditor (judicial – court, extra-judicial – outside of court)
3. Failure of the debtor to comply with such demand
Creditor shall prove that demand has been made (if not yet demanded, ordinary delay and the
court expects the creditor gives extension)
Debtor shall prove that delay was not due to his fault to relieve himself from liability. (This is
not applicable for negative personal obligation)
Exemptions for demand
1. No need for demand (expressed clearly) – 20,000 on or before without the need of any
demand (if the debtor failed to pay, the debtor would be in default)
2. When the law provides (tax law for example)
3. When time if not off the essence (event – after the time the obligation would no longer
benefit the creditor)
4. Demand would be useless (kunwari may namatay before yung date, impossible to
perform the obligation)
5. When there is performance of a party in reciprocal obligations (no delay if neither has
delay, pero pag ready na yung isa ayun lagot)
Reciprocal Obligations – kaliwaan (may gawin ka, may gagawin din yung isa)
Voluntary breach of obligation
1. Fraud/deceit/dolo – deliberate or intentional evasion of the normal fulfillment.
Dishonesty, malice (di kinoconsider yung nagkamali lang yung debtor ganon puro bad
faith)
a. Incident fraud (dolo incidente) – may existing contract (considered here)
Bigasan store obliged themselves to deliver rice to mayora. Instead of
denorado rice ipadala, NFA pinadala e ayun yung napag-usapan
b. Causal fraud (dolo causante) – fraud in the execution (may fraud na agad before
sa paggawa) nagiging voidable yung contract
In incident fraud, liable for damages unlike in causal fraud (void contract)
 2. Fault/negligence/culpa – voluntary omission without malice, though it prevents you to
oblige
Gross negligence – failure to express even slight diligence, care
3. Mora
4. Contravention of the tenors in the obligation – di mo pagsunod sa stipulations ng contract
(unless fortuitous – involuntary)
Responsibility arising from fraud is demandable in all obligations. (Incidental fraud or fraud
employed in the fulfillment of obligation). Unlike in the case of responsibility arising from
negligence.
Pag negligence, the court can decrease the damages. Intentional kasi ang fraud. Any waiver of an
action for future fraud is void. Any waiver for past fraud is valid, because a waiver of past fraud
is considered as an act of generosity and magnanimity on the part of the party that is the victim
of fraud.
Responsibility arising from negligence in the performance in any kind of obligation is
demandable when such liability may be regulated by the court according to such circumstances.
Future waiver can be accepted unless extraordinary diligence is required such as common
carriers, when the negligence is so gross that shows bad faith (almost fraud).
Different kinds of negligence
1. Contractual Negligence or Culpa Contractual
- Negligence in contracts resulting in breach
- Namatay yung horse bago ideliver
- Sources of obligation is not the negligence but the contract
2. Civil Negligence or Culpa Aquiliana
- Quasi-delict no contract
- Kunwari nasa buyer na yung horse tas namatay
3. Criminal Negligence or Culpa Criminal
- Crime is commited
Effects of the Negligence on the Injured Party
1. Pag yung plaintiff ang may negligence, wala yon
2. Pag defendant pero may contributory negligence, the court will mitigate the damages
(Contributory negligence)
3. Pag walang contribution, walang mitigation
Factors to be considered when it comes to negligence
1. Nature of obligation
2. Circumstances of the person, time and place
Negligence is never presumed but must be proven by the party who alleges it.
Different kinds of diligence required
 1. Kung ano napag-usapan
2. Pag wala, edi kung ano provided ng law
3. Good father of a family
Fortuitous event – impossible to foresee or avoid
Requisites of F Event
1. The event must be independent of the obligor’s will
2. The event could not be foresee, if you could foresee, it must be unavoidable
3. Dapat impossible na magcomply in normal manner
4. Dapat di niya kasalanan yung damages
Generally, extinguished ang obligation if all these requisites are present
Except: (kunwari sabi ng law kunwari may fraud ka, kunwari nagpromise ka to deliver
determinate thing sa dalawang tao, pag galling sa crime kunwari ninakaw magiging liability to
pay na lang)
Pero pag insurance, assumption of risk ang nature of obligation nila kaya kahit may fortuitous
event, liable sila

Simple loan or mutuum – contract na nagdedeliver ng pera

Usury – sobsobrang pagkolekta ng interest (bawal na to, bali di na law yung magbibigay ng
interest)
Bawal maginterest unless stipulated, lawful, written etc.

1176
Presumption – the inference of fact na actually known usually arising from its usual connection
with another which is known or proved.
Kunwari humiram si debtor, later si debtor nagpakita ng receipt na wala namang sinasabi na
nagbayad, may presumption na payment unless may forgery.
Types of Presumption
Conclusive Presumption – cannot be contradicted (kunwari nangungupahan, nagbabayad siya ng
5k per month, kunwari di nakapagbayad ng feb at march. Usually business practice is that prior
installments are first liquidated)
Disputable or Rebuttable Presumption - (kunwari nagbigay ng resibo si creditor na nagbayad na
ng principal si debtor, it is presumed na dapat bayad na yung interest kasi dapat lagging nauuna
interest sa principal) Disputable kasi pede mong patunayan na hindi
Except kung may reservation
Except kung kunwari nilagay yung mismong amount
Except kung di specified kunwari di sinabi na april yung binayaran
Except sa taxes, kunwari nagbayad ka ng tac ngayun di pede na ipresume na nabayaran mon a
yung mga previous
Except naprove mon a di nagbayad
Remedies available to the creditors for the satisfaction of their claims (in order of preference)
1. Exact fulfillment or specific performance with the right to damages
2. Pursue the leviable properties of the debtor (ask mo yung court na iaunction yung
properties ni debtor)
3. Creditor may exercise the rights of the debtor with exceptions (debtor ng debtor mo pede
mo singilin, ginagarnish kunwari sa bank) (exception yung mga karapatan ng debtor na
personal sa kanya kunwari yung mga financial support from tatay niya)
4. Creditor may ask the court to rescind or impugn acts made by the debtor to defraud him
(kunwari nagbenta ka ng lupa para maitakas mo sa number 2, pede pumunta ng court si
creditor para icancel yung benta mo tas pag may sobra pa sa worth ng lupa mo,
mapupunta yon sa pinagbentahan mo hindi sayo)

Pede mong ipasa yung rights yung nakuha mo from obligations, except
1. When prohibited by law (partnership)
2. Contract of Agency
3. Como Datum (kunwari humiram ka ng book)
KINDS OF OBLIGATIONS
There are 2 major classifications of obligations (Primary and Secondary)
Primary Classifications of Obligationss
1. Pure and Conditional Obligations
- Pure Obligation – one which is not subject to any condition. There is no specific date
is mentioned for its fulfilment and immediately demandable.
Example: Debtor obliges to pay 1k, it is immediately demandable if there is no date
specified (or pag upon demand, pure pa rin)
- Conditional Obligations – subject to a condition. Condition is a future and uncertain
event upon the happening of which the effectivity or extinguishment of obligation or
right subject to it depends. It may also be past event It must not be impossible)
Is death a condition? No, it is a period. Although it is future, it is certain because you
know it would happen.
Example: If you pass a course
o Suspensive Condition – the fulfillment of which will give rise to an obligation
or right. The demandability is suspended until the happening of the condition.
(You cannot demand until the condition is fulfilled)
Example: I would give 10k, if Uy passed the board exam.
o Resolutory Condition – fulfillment of which will extinguish an obligation or
right already existing. (It is a condition subsequent, kasi existing na siya)
Example: Until you graduate, I will give you 10k. It is immediately
demandable until you graduate.
When is the obligation demandable at once?
a. When it is pure
b. When it is subject to resolutory period
c. When it is subject to a resolutory period

2. Obligations with a period

- It is where the duration of period depends upon the will of the debtor
A period is a future and certain event upon the arrival of which the obligations subject
to it either arises or extinguish.
When the debtor promises to pay when his means permit him to do so. What’s left on
the will of the debtor is only the duration of the period. (It is invalid if what’s left on
the will is the fulfillment of the obligation)
Example: Babayaran kita paunti-unti, ASAP, etc.
- When the fulfillment of the obligation depends upon the sole will of the debtor the
conditional obligation shall be void (condition and obligation is void). If it depends
upon chance or upon the will of a third person, the obligation shall take effect in
conformity with the provisions of this code.
o Potestative Condition is a condition suspensive in nature and depends upon
the sole will of one of the parties.
Example: I will pay you if I recover from my own debtor. I will pay you if I
win the lottery.
- Only the condition is void but the obligation is valid. May pre-existing obligation tas
yung condition is valid pa rin, edi may obligation pa rin. It means the debtor would
still be demandable.
Example: Nanghiram si debtor ng pera payable within 2 months (may period, pre-
existing obligation). The debtor will pay once he sells his car and the creditor agrees.

What’s the effect is the suspensive condition depends on the sole will of the creditor?
Such obligation is valid since the creditor is always interested on the fulfillment of the
obligation.

Resolutory condition depending upon the will of the debtor is valid.

o Casual Condition – if suspensive condition depends upon chance or upon the

will of a third person.
Example: If a building contractor obliges himself in favor of the building
owner to repair at the building contractor’s expenses when earthquake
happens within 10 years. Upon chance upon earthquake so casual condition
siya.
Seller binds himself to sell parcel of land to a buyer, in a condition of seller
winning the contract. (yung lawyer or supreme court ang magdedecide hindi
yung mismong obligor)
o Mixed Condition – the obligation because the condition is valid when it
depends partly upon chance and upon the will of a third person
Example: Contractor obliges in favor of the owner to pay at his expense any
damages on the building when earthquake happens and may tagatingin kung
earthquake nga ba ang cause.

Kanina di ba suspended tapos yung impossibility ay nag-eexist na when the

obligation is already constituted. If the impossibility occurs after the creation of the
obligation.
o Physical Impossible Conditions – when in the nature of things, they cannot
exist or cannot be done
Example: I will give you 10,000 provided that it would not rain in the
Philippines for two years
o Legally Impossible Conditions – contrary to policy, good customs
 Example: I will give you 10,000 provided that you kill Pedro.

Effects of Impossible Conditions

1. Conditional Obligation is void
- Ieextinguish ng imposible conditions yung obligation which depends upon them.
Both are void
Example: I will give you 10,000 provided that you kill Pedro. (The obligation is also
void because it is subject to conditional)
2. Conditional obligation is valid
- Condition must be negative or not to do an impossible thing
- It is disregarded and the obligation is rendered pure and valid
- The same as if there is no condition
Example: I will give you 10,000 provided that you do not kill Pedro.
3. Only the affected obligation is void
- If the obligation is divisible (susceptible for partial fulfillment)
Example: I will give you 10,000 if you sell my land, and I will give you my car if you
kill Pedro. (Susceptible to partial fulfillment, valid yung lupa)
4. Only the condition is void
- If the obligation is a preexisting obligation and therefore does not depend upon the
fulfillment of the condition which is impossible. Only the condition is void.
Before you impose the condition, there is already a valid obligation.
Example: Debtor incur obligation in the amount of 10,000. If the debtor kills Pedro
before he pays the 10,000. Pre-existing obligation (yung pagbayad) is still valid.
Positive Suspensive Condition
Art 1184. The happening of an event at a determinate time. The obligation is extinguished as
soon as the time expires without the event taking place or as soon as it has become indubitable
that the event will not take place even if the time specified has not yet expired.
Example: Kris obliges herself to pay 10,000 to Jason if he marries Melai before the age of 23.
Kris is liable if Jason marries Melai before the age of 23. After or on the time he reaches 23, Kris
is not liable. (Yung indubitable na part yung pag namatay na, edi di niya na magagampanan yung
roles niya)
Negative Condition
Art 1185. The condition that some event will not happen at a determinate time shall render the
obligation effective (magiging effective dito) from the moment the time indicated has elapse of if
it has become evident that the time cannot occur. If no time has been fixed, the condition shall be
deemed fulfilled at such time as may have probably been contemplated bearing in mind the
nature of the obligation. The condition is fulfilled upon the expiration of the time indicated.
Example: Kris will give 10,000 to Jason if he is not married to Melai on December 30. (not to do
ito kaya negative). Liable kapag di December 30 kasi di niya nafulfill.

Constructive fulfillment of suspensive condition

Art 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its
fulfillment.
Constructive kasi walang actual fulfillment. The law still considers it fulfilled.
Requisites
1. Condition must be suspensive
2. Obligor prevents the fulfillment of the condition
3. Obligor acts voluntarily
Not necessarily may malice

Example: Si Prince sinabihan niya yung ahente na magbibigay siya ng 5% ng benta

kapag nabenta yung lupa niya. Nakahanap naman ngayon yung ahente, ang ginawa ni
Prince, siya mismo yung kumausap sa ahente para maprevent yung 5% na pinangako
niya.

Retroactive effects of the fulfillment of suspensive condition

Art 1187. Nafulfill na yung suspensive condition, we would be talking about its effects
(retroactive – nagbabaliktanaw ka).
Obligations to give
An obligation to give subject to a suspensive condition becomes demandable only upon
the fulfillment of the condition; however, once the condition is fulfilled, its effects shall
retroact to the day when the obligation was constituted.
The rise will commence on the time the obligation was constituted.
Example: January 20 – Obligation to sell the parcel of land was constituted between S
and B.
April 10 – S sold the same parcel of land to another person named C
December 10 – Suspensive condition was fulfilled when B lost his case.
B has the higher power because B is entitled to lot since January 20.
If C is in good faith and it is not annotated that S promised, C may have the higher right
and B will cause action for damages.
It is wrong to say that “B” only has the ownership on the land on December 4.

Obligations to do or not to do
 In obligation to do or not to do, there is no fixed rule as regards the retroactive effect.
(Pero di laging retroactive ang magpeprevail dito kasi nakapende pa rin sa court)
Example: In some instances, retroactivity principle can be applied.
Akusado obliges himself to condone the debt of Abugado should Abugado wins
Akusado’s case in the supreme court. If Abugado wins, fulfillment is reached, Akusado is
not entitled on the interest.
Pending the fulfillment of the suspensive condition, the parties have the rights to preserve
their rights
Art 1188. The creditor may, before the fulfillment of the condition, bring the appropriate actions
for the preservation of his right. The debtor may recover what during the same time he has paid
by mistake in case of a suspensive condition.
Example: I will give you a parcel of land provided you pass the board exam. Di ka pa
nakakapasa ng board, pano mo ipepreserve yung right. Annotate the obligation sa certificate of
title. May karapatan siyang (creditor) bawiin yung pagkakamali niyang bayad prior to the
happening of the suspensive condition.
Art 1189. When the conditions have been imposed with the intention of suspending the efficacy
of an obligation to give, the following rules shall be observed in case of the improvement, loss or
deterioration of the thing during the pendency of the condition: (Kasi di mo naman maiiwasan na
mangyari talaga before the fulfillment of the suspensive condition)
1. Obligation is a real obligation (to give)
2. Object is a specific or determinate thing
3. Obligation is subject to a suspensive condition
4. Suspensive condition has been fulfilled
5. Loss, deterioration or improvement of the thing during the pendency of the
suspensive condition

1. Loss of thing without debtor’s fault

Debtor give creditor his car if the creditor sells the debtor’s property. The car was lost
without debtor’s fault; the obligation is deemed extinguished. Debtor is not liable even if
Creditor sold his property.
2. Loss of the thing with debtor’s fault
The creditor can demand damages. The obligation is extinguished yet it is converted into
payment for damages.
3. Deterioration (the value of the object reduces without debtor’s fault)
Nabangga kunwari yung kotse, creditor shall suffer the deterioration if the same is not
due to the debtor’s fault.
4. Deterioration through the fault of debtor
Creditor may choose between (1) rescission or cancellation of obligation with damages
(2) fulfillment of obligation with damages
5. Improvement of the thing by nature or by time
 Market value of the car increased, improvement shall inure to the benefit of the creditor
(kasi sa dete si creditor pag walang fault si debtor, dito naman by nature)
6. Pag si debtor ang nagimprove
Walang right si debtor other than usufructuary (yung naeenjoy niya yung improvement na
ginawa niya)
Effects of the fulfillment of resolutory condition
Art 1190. When the conditions have for their purpose the extinguishment of an obligation to
give, the parties, upon the fulfillment of said conditions, shall return to each other what they
have received.
Example: Si debtor inoblige niya sarili niya para gamitin ni creditor yung car habang nasa
province. Pagkabalik ni debtor, ibabalik yung car (once resolutory condition is fulfilled).
Kunwari nanghiram ka ng book tas ibabalik mo after the course. After the condition, the
obligation is extinguished and you need to return the book.
As for the obligations to do and not to do, the provisions of the second paragraph of article 1187
shall be observed as regards the effect of the extinguishment of the obligation. May retroactivity
2 Kinds of Obligations according to the person obliged
Unilateral obligation – when only one party is obliged to comply with the prestation
Example: Contracts of loan (creditor has the obligation to give, after that, debtor has the
obligation to pay. Isa-isa lang), donation
Bilateral obligation – when both parties are mutually bound to each other as debtor and creditor
of one another
Example: Contract of sale (the seller is bound to deliver the thing to the buyer, and in return is
bound to pay)
- Reciprocal
- Non-reciprocal (not dependent on simultaneous)
Kunwari nanghiram ng pera, si creditor hiniram niya naman yung kotse ni debtor.
Walang effect sa obligation ng isa’t isa
Remedies of the Injured Party
1. Action for specific performance with damages
2. Action for rescission of the obligation with damages
Example: In contract of sales, S bound himself to deliver the car, B will deliver the payment on
the same date. If S did not comply, B demand the delivery with damages, B demand to court
rescission of the contract with damages.
Art 1192. In case both parties have committed a breach of the obligation, the liability of the first
infractor shall be equitably tempered by the courts. If it cannot be determined which of the
parties first violated the contract, the same shall be deemed extinguished, and each shall bear
his own damages.
Kung sino nauna, liable siya, irereduce mo yan kasi may violation din yung isa. Court ang
magtetemper (mitigate or reduce) non. Pag naman di mo alam kung sino, kanya-kanya na lang
tayo.

Obligations with a period

Art 1193. Obligations for whose fulfillment a day certain has been fixed, shall be demandable
only when that day comes.
Period or term – future and certain event, it must necessarily happen even you do not know
when. It merely fixes the time of effectivity, unlike conditional that it arises or extinguishes the
obligation.
Pag nakadepende sa will ng debtor yung period, the court has the power to fix the duration.
Unless there is an agreement to the contrary, the arrival of the period does not have any
retroactive effect. Period must be possible, otherwise, it is void.
Kinds of Period According to Effect
1. Suspensive Period – begins only from a day certain upon the arrival of the period (not the
obligation that arises but the demandability)
2. Resolutory – demandable at once, the arrival of period extinguishes the obligation
Legal Period – when the period is provided by law
Conventional/Voluntary – agreed to by the parties
Judicial Period – fixed by the court
Definite (it is known when it will come) and Indefinite (not fixed, not known) Period. Usually sa
indefinite, court ang magpifix.
Art 1194. Same lang sa nakaraan pag may loss, deterioration
Art 1195. Anything paid or delivered before the arrival of the period, the obligor being unaware
of the period or believing that the obligation has become due and demandable, may be
recovered, with the fruits and interests (Real Obligations) However, no right to recovery if the
debtor had knowledge of the period. Debtor cannot recover what he had paid by mistake if the
debt had already matured.
Art 1196. Whenever in an obligation a period is designated, it is presumed to have been
established for the benefit of both the creditor and the debtor, unless from the tenor of the same
or other circumstances it should appear that the period has been established in favor of one or
of the other. (Presumed na magbebenefit kayo both sa period na napag-usapan niyo) Pwede
marepute.
Example: Debtor borrowed from the creditor 10,000 payable on December 31 at 18% interest.
The debtor cannot pay before December 31 without consent of C, neither can creditor demand
for immediate payment.
Exception 1: Benefit for the debtor alone
He cannot be compelled to pay prematurely but he can if he do so.
Exception 2: Benefit for the creditor
C may demand fulfillment even before but the debtor cannot pay before.
Art 1197. If the obligation does not fix a period, but from its nature and the circumstances it can
be inferred that a period was intended, the courts may fix the duration thereof.
Judicial period can be fixed by court. Kung wala naman period, di mapifix ng court. Pag may
intention lang talaga tas di nareflect.
General: Courts are not empowered
Exception: When there is no period, but a period is intended,
Example: Nag-agree to construct house of Y pero walang napag-usapan kung kalian matatapos.
Pero sinabi na titirhan yon.
Exception: When the duration based upon the will of the debtor

Legal Effect where suspensive period or condition depends upon the will of the debtor
- Existence of the obligation is not affected although the period depends upon the sole
will of the debtor
- Suspensive condition ang bawal (potestative condition)
Period fixed (matured na) cannot be changed by the court.
Pag nafix na ng court, the parties give their acceptance. Kung ayaw mo, both of you make a new
agreement.

Art 1198. The debtor shall lose every right to make use of the period:
(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt; (Insolvent – kapag hindi makapagbayad at the time the
obligation becomes due, he is in financial distress mas malaki liabilities kaysa assets)
Example: Naging insolvent before December 30, pwede magdemand agad si creditor. Unless
nagguarantee si debtor.
Note that insolvency need not be judicially declared for the creditor to avail the remedy under
this provision.
(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
Example: Kunwari need na magfurnish ni debtor.
(3) When by his own acts he has impaired (disappears) said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he immediately
gives new ones equally satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to
the period;
Example: Kunwari ayusin piano free or charge, kunwari di niya ginawa, pede niya singilin
(5) When the debtor attempts to abscond
Example: Kunwari nagpalit ng address, nagtatago (kahit intent lang), nagpapakita kasi yon ng
bad faith
There are cases can be demanded agad kahit wala pa. The debtor wala ng benefit sa period.

Alternative and Facultative Obligations

Art 1199. A person alternatively bound by different prestations shall completely perform one of
them. The creditor cannot be compelled to receive part of one and part of the other undertaking
According to object
1. Simple Obligation – only one prestation
Seller obliged to deliver piano, S promised to repair car of B
2. Compound – two or more prestations
Conjunctive – all of them are due
Distributive – two or more are due
An alternative obligation is one where several prestations are due but performance of one of
them is sufficient.
Example: Nanghiram si D ng 10k. Kunwari pede ka rin magbigay ng TV, or paint the house. The
debtor has the option to choose.
Art 1200. The right of choice belongs to the debtor, unless it has been expressly granted to the
creditor.
Bawal unlawful prestations
Art 1201. The choice shall produce no effect except from the time it has been communicated.
Alternative becomes simple kapag nakapagchoose ka na. Once choice is communicated, it is
irrevocable.
The notice may be oral, anything that comes from D
Art 1202. The debtor shall lose the right of choice when among the prestations whereby he is
alternatively bound, only one is practicable.
Art 1203. If through the creditor's acts the debtor cannot make a choice according to the terms
of the obligation, the latter may rescind the contract with damages
Di makapagdecide si D dahil kay C.
Example: Nanghiram si D ng 20k, instead of 20k D could deliver item 1, 2, or 3. Dahil kay C,
nasira yung item 1. D can rescind the contract agad-agad kahit may natitira pa. Kailangan
magbayad ng 20k with interest, si C naman magbabalik ng item 1 with damages. Pede rin instead
of rescind, choose item 2 with the right to receive the amount of item 1 with damages.
Art 1204. The creditor shall have a right to indemnity for damages when, through the fault of the
debtor, all the things which are alternatively the object of the obligation have been lost, or the
compliance of the obligation has become impossible.
Di liable ang debtor pag may nasira sa mga choices, unless lahat ay sira na. 1203 at 1204 ay
pareho sa debtor ang choice
But pag sa fortuitous, may general rule tayo diyan
Pinakahuling nawala (usually pinakamahal kasi) yung basis sa indemnity. The fact na siya yung
may kasalanan ng huli, liable pa rin siya kahit fortuitous na yung iba.
Art 1205. When the choice has been expressly given to the creditor, the obligation shall cease to
be alternative from the day when the selection has been communicated to the debtor.
1. Through fortuitous event, pipili si creditor sa mga remainder
2. Through the debtor’s fault, B may claim item 1, 2, or 4. With the right to damages kung 1
pipilin or iba pala
3. Through the debtor’s fault, nawala lahat. C may demand for payment sa kahit ano with
damages
Art 1206. When only one prestation has been agreed upon, but the obligor may render another
in substitution, the obligation is called facultative.
Facultative Obligation – only one prestation but the obligor may render another for substitution
Example: I promise to give a piano, but I told you I may also give television as substitute.
Pag nawala yung piano, liable ka kasi ayun lang yung due. Icommunicate niyo ngayun yung
substitute. Pag nawala substitute e walang liability kasi di naman yun yung due e.
Joint and Solidary Obligations
Art 1207. The concurrence of two or more creditors or of two or more debtors in one and the
same obligation does not imply that each one of the former has a right to demand, or that each
one of the latter is bound to render, entire compliance with the prestation. There is a solidary
liability only when the obligation expressly so states, or when the law or the nature of the
obligation requires solidarity.
Joint – the whole obligation is to be paid or fulfilled proportionately by the different debtors and
demanded proportionately by different creditors. This is the presumption in all collective
obligations unless solidarity is stated. It is less burdensome.
Example: Friends A, B, and C. They borrowed 15k from X. A month after, X demanded
payment from A, B, C. C paid. X asks C for the payment of other. Creditor cannot demand kay C
separate silang tatlo.
Solidary – 2 or more debtors who owe the same thing to the same creditor. It is solidary if it can
be performed by either of the obligors.
Example: A, B, and C bound themselves to pay jointly and severally the full amount of 45k. A
month after, X demanded payment from C. C only paid 15k. However, X still demanded C for
the payment of others. Obligee can demand. C can reimburse from A and B.
Art 1208. If from the law, or the nature or the wording of the obligations to which the preceding
article refers the contrary does not appear, the credit or debt shall be presumed to be divided
into as many shares as there are creditors or debtors, the credits or debts being considered
distinct from one another, subject to the Rules of Court governing the multiplicity of suits.
The solidarity cannot be presumed.
Indivisibility (prestation – kung sino lang di makagampan) VS Solidarity (juridical or legal tie
that binds the party – all of the debtors are liable)
Example: X and Y are jointly liable to deliver W a yacht. The object is indivisible but the
obligation is joint.
Solidarity does not mean indivisibility.
Kunwari nangutang ng 100k, divisible yun. Divisible na solidary. Either x or may pay. PAg joint,
pareho sila.
Art 1212. Any of the solidary creditor may do any act provided that it would be useful and
beneficial for the other solidary creditors. Each should not be prejudicial (ipapahamak)
The reason or rule is based on the theory of mutual agency among solidary creditors.
A owes B and C 10k. B make a demand to A for the payment. That is beneficial for C that is why
he can do it. PAg nagcondone si B ng payment, obligation ni B bayaran si C.
Art 1213. A solidary creditor cannot assign his rights without the consent of the others.
Art 1214. The debtor may pay any one of the solidary creditors; but if any demand, judicial or
extrajudicial, has been made by one of them, payment should be made to him.
Payment to any solidary creditor. Pwede ka magbayad kahit kanino, pero may nagdemand, ayun
ang preferred mon a bayaran.
Example: A is liable to pay B and C 10k. A may pay B or C but if a demand is made by B,
payment should be made to B. Despite the demand, A paid to B. B is obliged to get the share
from C. Babayad ulit si A. If they demand at the same time, A may pay either of them.
Art 1215. Novation, compensation, confusion or remission of the debt, made by any of the
solidary creditors or with any of the solidary debtors, shall extinguish the obligation, without
prejudice to the provisions of article 1219.
Example: A (debtor), B C D (creditors) may utang si A ay 30k. If B validly condones 18k. B has
liablity to make reimbursements ng tig 6k sa C and D. Pag kunwari nangolekta si B, paghahatian
yun ng tatlo.
Art 1216. The creditor may proceed against any one of the solidary debtors or some or all of
them simultaneously. The demand made against one of them shall not be an obstacle to those
which may subsequently be directed against the others, so long as the debt has not been fully
collected.
The right of the creditor to any debtor. Not applicable to joint.
A B and C solidarity owes D the amount 3k. D can collect from A, B or C alone, two or all. If
demand is made against A. The latter cannot require D to make demand on the other as D has the
right to proceed any one of them. D has the power to choose the other party defendant.
Effects of payment by a solidary debtor (Art 1217)
1. Between the solidary debtors and creditors
- Paid by any debtor in full extinguishes the obligation. Creditor may choose kung
kanino siya tatanggap.
2. Effects on solidary debtors
- It will not be extinguished. Paying solidary debtor can ask for reimbursement for the
proportionate share of co-debtors with interest from the time of payment. (Naging
creditor tuloy si debtor) (pag may insolvency, hati yung natira)
3. Among the solidary creditors
- Receiving creditor is jointly liable to the others for their corresponding shares.
Art 1218. Payment by a solidary debtor shall not entitle him to reimbursement from his co-
debtors if such payment is made after the obligation has prescribed or become illegal.
If the payment ay ginawa pa rin kahit illegal na, di siya entitled na mangolekta.
Example: May utangan may contract hanggang 10 years to collect, pag natapos na 10 years,
illegal na.
Art 1219. The remission made by the creditor of the share which affects one of the solidary
debtors does not release the latter from his responsibility towards the co-debtors, in case the
debt had been totally paid by anyone of them before the remission was effected.
May payment na, but after the payment, the creditor, wag mo na bayaran sa isa.
Example: A and B liable in solidum (solidarity) to the creditor C amount of 1k. Creditor remits
share of A (500), tas nagbayad si B, di na siya entitled na mangolekta kay A but kay A due to
solution indebiti. But pag before the remission, A is still liable to pay his share kasi no effect
yung remission.
Art 1220. The remission of the whole obligation, obtained by one of the solidary debtors, does
not entitle him to reimbursement from his co-debtors.
Ito ay para sa buo. Kunwari wag niyo na bayaran sabi ni creditor, di liable si A na mangolekta
from other solidary debtors kasi unjust enrichment na yon.
Art 1221. If the thing has been lost or if the prestation has become impossible without the fault
of the solidary debtors, the obligation shall be extinguished.
Kunwari may fault, all shall be responsible sa creditor pati sa damages. Pero pede naman
ispecify sa may kasalanan.
Kunwari walang fault, after delay. Upon demand, the provisions, liable pa rin di ba.
Art 1222. A solidary debtor may, in actions filed by the creditor, avail himself of all defenses
which are derived from the nature of the obligation and of those which are personal to him, or
pertain to his own share. With respect to those which personally belong to the others, he may
avail himself thereof only as regards that part of the debt for which the latter are responsible
A and B are solidarily liable to C by a 4,000. And the entire debt of A and B was paid by
D, a third person. Tapos kunwari nireklamo ni C yung A and B, pede pa rin nila idefend
sarili nila.
If the action of C is against B. B was insane at the obligation is constructed. Personal to B
alone, and a complete defense. A is not liable to be defended by insanity. Pero pede niya
idefend yung partial bayad niya dahil insane si B.

Divisible and Indivisible Obligations

Art 1223. The divisibility or indivisibility of the things that are the object of obligations in which
there is only one debtor and only one creditor does not alter or modify the provisions of Chapter
2 of this Title.
Divisible Obligation – the object of which ay pedeng partial fulfillment
Indivisible – its delivery and fulfillment is not liable to partial fulfillment
The controlling the circumstance is not the possibility of partial, but the intention of the parties.
Kunwari bayad pero ang intention ay buong bayad daw, edi indivisible
Effect of non-compliance by a debtor in a joint indivisible obligation
Art 1224. A joint indivisible obligation gives rise to indemnity for damages from the time anyone
of the debtors does not comply with his undertaking. The debtors who may have been ready to
fulfill their promises shall not contribute to the indemnity beyond the corresponding portion of
the price of the thing or of the value of the service in which the obligation consists.
Kapag yung isa ay di nagcomply, simply convert it into one tas pay with damages, kasi nga
indivisible.
Art 1225. For the purposes of the preceding articles, obligations to give definite things and
those which are not susceptible of partial performance shall be deemed to be indivisible.
1. The obligations to give definite things
2. Not susceptible to partial fulfillment
3. Obligations provided by law even if divisible
4. Intended by the parties to be indivisible
Deemed divisible
1. Execution of number of days of work
2. Accomplishment of work by metrical units
3. By nature partial performance
Obligations not to do na divisible or indivisible (Kunwari bawal ka magbenta ng sigarilyo sa
isang taon, indivisible)
Obligations with a Penal Clause
Art 1226. In obligations with a penal clause, the penalty shall substitute the indemnity for
damages and the payment of interests in case of noncompliance, if there is no stipulation to the
contrary. Nevertheless, damages shall be paid if the obligor refuses to pay the penalty or is
guilty of fraud in the fulfillment of the obligation.
Principal (stand by itself and does not depende on validity of other obligation) and Accessory
Obligation (cannot stand alone)
Obligation with a penal cause is an accessory undertaking. To compel the parties to perform
what is incumbent upon.
Purpose
1. Reparation (To ensure the performance)
2. Punishment (you pay the penalty – will the substitute for damages and interest)
Payment ng penalty ay minsan di sapat, minsan you pay penalty, damages, and interest.
- When stipulated between parties
- When the obligor refuses to pay penalty (madodoble pa)
- Fraud (may damages)
Demandable lang ang penalty kapag may breach, at kapag di contrary sa law. Pag fortuitous
event, di demandable ang penal clause.
Penalty not as a substitute to a performance
Art 1227. The debtor cannot exempt himself from the performance of the obligation by paying
the penalty, save in the case where this right has been expressly reserved for him. Neither can
the creditor demand the fulfillment of the obligation and the satisfaction of the penalty at the
same time, unless this right has been clearly granted him. However, if after the creditor has
decided to require the fulfillment of the obligation, the performance thereof should become
impossible without his fault, the penalty may be enforced.
Bawal na magbayad na lang ng penalty no.
Pwede bang ang debtor ay exempted from nonfulfillment of the obligation only when this right
ay expressly described.
Bawal din na magdemand ng fulfillment tapos magbabayad din ng penalty, unless expressly
described.
Pag di nagperform, pedeng penalty or demand specific performance.
Art 1228. Proof of actual damages suffered by the creditor is not necessary in order that the
penalty may be demanded.
Penalty is always demandable pag may breach, di na need ng proof ng damages. Di rin pwede na
magexceed sa penalty kapag sobra sobra damages. Yung sa damages lang ipuproof para masabi
magkano ibabayad pero penalty ay fixed na.
Art 1229. The judge shall equitably reduce the penalty when the principal obligation has been
partly or irregularly complied with by the debtor. Even if there has been no performance, the
penalty may also be reduced by the courts if it is iniquitous or unconscionable. (1154a)
1. Partial or irregular performance (pwede bawasan ng court)
2. Liquituous or unconscionable (kung sobra sobra yung penal, against morale kasi)
Art 1230. The nullity of the penal clause does not carry with it that of the principal obligation.
It will not invalidate the principal obligation kasi nga it can stand alone.
Kunwari magbebenta dapat si C, pero pag di natupad magbibigay ng bawal na droga kay B.
Yung principal don yung pagbenta, yung accessory kung kapag hindi … benta ng droga.
Damages lang kapag di natupad ni C yung obligation kasi illegal yung penal clause niya.
If principal obligation is void, the penal clause is also void. But if the penal clause is void, pede
pa yung obligation.
Kunwari bad faith si obligor, the penalty may be enforced.

Exringuishment of Obligations
Art 1231. Obligations are extinguished:
(1) By payment or performance;
(2) By the loss of the thing due;
(3) By the condonation or remission of the debt;
(4) By the confusion or merger of the rights of creditor and debtor;
(5) By compensation;
(6) By novation.
Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment of a
resolutory condition, and prescription, are governed elsewhere in this Code.

Payment of Performance
Art 1232. Payment means not only the delivery of money but also the performance, in any other
manner, of an obligation.
Di lang siya pagbibigay ng pera, paggagawa rin siya ng obligations mo.
Payment and performance in obligations are synonymous.
Partial Performance
Art 1233. A debt shall not be understood to have been paid unless the thing or service in which
the obligation consists has been completely delivered or rendered, as the case may be.
1. Integrity of prestation (debt to deliver a thing is paid only when the thing is completely
delivered or rendered) (partial ay not counted)
2. Identity of prestation (the very thing due must be delivered) (kailangan ayun na ayun)
Doctrine of Substantial Performance
Art 1234. If the obligation has been substantially performed in good faith, the obligor may
recover as though there had been a strict and complete fulfillment, less damages suffered by the
oblige.
First exception sa 1233. Substantial performance in good faith, even if di complete, pero may
substantially performed, inaallow ng law na complete. (1. Substantial – essential part of contract
has been performed, 2. Good faith ang debtor)
Example: The seller obliges himself to deliver 500 bags of sement for a certain price. Despite
diligent effort, the seller was only able to deliver 400 bags due to sement shortage. The seller
wants to deliver but wasn’t able to do it because for the reason beyond his control.
When is partial performance considered a payment?
Art 1235. When the obligee accepts the performance, knowing its incompleteness or irregularity,
and without expressing any protest or objection, the obligation is deemed fully complied with.
Pagka tinanggap mo siya
1. Obligee/creditor knows that the performance is irregular or incomplete
2. Obligee/creditor accepts the performance without expressing any protest or objection
Art 1236. The creditor is not bound to accept payment or performance by a third person who
has no interest in the fulfillment of the obligation, unless there is a stipulation to the contrary.
Bawal magtanggap si creditor ng galing sa ibang tao unless nasa kontrata. Pag wala sa will ng
debtor, the creditor may refuse payment, in case na tanggapin ni creditor, walang utang si debtor.
If creditor accepted, if without the knowledge ng debtor, the payer can recover from the debtor as
if beneficial sa kaniya. Pwede ba irecover yung kulang ng debtor, kunwari nagbayad na siya ng
50, tas 100 utang na binayad mo, 50 lang pwede mong singilin mo kasi 50 lang nagging benefit
sa kaniya.
If may knowledge ng debtor, the payer has the right of reimbursement and subrogation. Wala na
si creditor ditto ngayon, yung payer na creditor kasi nga may subrogation (may rights na rin
siya). Pag ka kunwari may knowledge yung debtor na magbabayad nang sobra si payer, may
right na si payer na bawiin yung 100. Yung debtor na yung maghahabol ng 50 na sobra sa
creditor.
Art 1237. Whoever pays on behalf of the debtor without the knowledge or against the will of the
latter, cannot compel the creditor to subrogate him in his rights, such as those arising from a
mortgage, guaranty, or penalty.
Subrogation (the person who pays for the debtor is put into the shoes of the creditor, he may not
only reimburse what he has paid, all other rights which the creditor has, he got it)
Reimbursement (has mere right to refund what he has paid)
Art 1238. Payment made by a third person who does not intend to be reimbursed by the debtor is
deemed to be a donation, which requires the debtor's consent. But the payment is in any case
valid as to the creditor who has accepted it.
Kunwari nagbayad pero ayaw ng reimbursement, donation siya, kailangan may acceptance ng
debtor. Kunwari tinaggap ni creditor pero walang knowledge ng debtor, accepted pa rin. Need ng
acceptance kasi baka magbago desisyon ni donator.
Art 1240. Payment shall be made to the person in whose favor the obligation has been
constituted, or his successor in interest, or any person authorized to receive it.
Kung kanino pa dapat magbayad, to creditor, kung kanino kinonstitute, successor ng interest,
person authorized.
Pag namatay si creditor, ang kukuha ng utang ay guardian, executor, or any other authorized by
law.
Kunwari may ibang nangolekta, di extinguished ang obligation mo.
Art 1241. Payment to a person who is incapacitated to administer his property shall be valid if
he has kept the thing delivered, or insofar as the payment has been beneficial to him.
Payment to incapacitated person (hindi siya valid, minor, wards) unless kineep niya (ikaw,
debtor and magpapakita ng proof) and payment to a third person .
Kunwari nagbayad si debtor kay minor C, pero si minor loses 700 sa gambling. In this case,
liable pa magpay si debtor ng 700 kasii 300 lang nagging beneficial kay C. Pero kung
pinangbayad kunwari sa tuition, kailangan pa iprove ni debtor. (Babayaran mo ulit si
incapacitated kapag nagging capacity na siya)
Payment to a third person, is not valid, except benefited ang creditor. Di siya presumed kailangan
pa ng proof. Di na need iprove,
Exception sa pagprove (understood na yung benefit ng creditor)
1. Subrogation of the payor in the creditor’s rights
2. Ratification by the creditor
3. Estoppel on the part of the creditor
The debtor 1000 utang. The day of maturity debtor paid to a third person. If the payment is
beneficial to creditor, the obligation is extinguished, need to prove. (1) Di ba nagbayad kay T, si
C ay nagging D ni T, kunwari kung may utang naman si C kay T, nasubrogate yung rights ni C
kay T. (2) D bayad kay T, sinabi ni D kay C, nagconsent si C niratify niya … ratification means
walang consent pero after sinabi mo (3) T ay agent ni C, kunwari lagging si T yung naniningil
talaga. Di pede ideny ni C
Art 1242. Payment made in good faith to any person in possession of the credit shall release the
debtor.
Valid payment sa third person
Example: Si D is indebted kay C, kaso nawala ni D yung promissory, tas may nakapulot ng
promissory tas siningil si D, just because he holds the document does not mean you have to pay
it.
Art 1243. Payment made to the creditor by the debtor after the latter has been judicially ordered
to retain the debt shall not be valid.
Example: Kunwari may bayad ka kay C pero may kaso siya, pede sabihin ng court na ihold mo
muna raw.
Art 1244. The debtor of a thing cannot compel the creditor to receive a different one, although
the latter may be of the same value as, or more valuable than that which is due.
Real obligations – bawal yung ibang bagay
Personal obligations – the prohibited cannot be substitute
Art 1245. Dation in payment, whereby property is alienated to the creditor in satisfaction of a
debt in money, shall be governed by the law of sales.
Special forms of payment (Dation in payment, Application of Payment, Payment by Cession,
Tender of Payment and Consignation)
Dation in payment – conveyance of ownership of a thing as an accepted equivalent or
performance. (Special kasi di siya ordinary payment)
Example: Si X may utang kay Y, in amount of 1M, si X ay wala masyadong pera, binigay mo
rolex mo. Depende sa value ng binigay mo yung halaga.
Art 1248. Unless there is an express stipulation to that effect, the creditor cannot be compelled
partially to receive the prestations in which the obligation consists. Neither may the debtor be
required to make partial payments.
1. When there is expressed stipulation
2. When debt is in part liquidated and in part unliquidated
3. When different prestations are subject to different terms or conditions
D ay may utang na 5,000 due today. The D cannot compel C to receive 3,000. Neither can C
compel D to pay 4,000.
Kunwari D owes C 5,000. However not yet liquidated yung sales, C may demand.
4,000 of the debt of D, 1,000 tomorrow, the obligation can be obliged with partially.

Art 1249. The payment of debts in money shall be made in the currency stipulated, and if it is not
possible to deliver such currency, then in the currency which is legal tender in the Philippines.
Legal Tender – is that currency which if offered by the debtor in the right amount, the creditor
must accept in payment of a debt in money. Debts in money shall be paid in the currency
stipulated.
Bawal yung puro 50 to 25 cents and above. Amounts exceed 20 Pesos, 10 centavos.
Commercial documents are not legal tender and creditors cannot be compelled to accept them.
Merchantile documents (checks) ay di need tanggapin ng C.
PAg tinanggap ni C, di paid unless naencash na, or kapag naimpair na yung document kasalanan
ni C, may payment na yon.

Application of Payments
Art 1252. He who has various debts of the same kind in favor of one and the same creditor, may
declare at the time of making the payment, to which of them the same must be applied. Unless
the parties so stipulate, or when the application of payment is made by the party for whose
benefit the term has been constituted, application shall not be made as to debts which are not yet
due.
1. One debtor and one creditor
2. Two or more debts
3. Debts must be of the same kind
4. The debts to which the payment made by the debtor has been applied must be due
5. Payment made must not be sufficient to cover all the debts
Rule 1: The debtor has the first choice (The time of making payment not afterwards)
Example: D owes creditor C (1,500 on Sept 5, 1,200 on Sept 20, Specific Horse worth 10,000 on
Sept 20, 1,000 on Oct 15). He paid 1,500 on Sept 20. What can be done as to application of
payments?
1,500 to debt A, or to debt B and a portion of debt A. The debts must be of a same kind kaya
bawal din sa horse.
Payment by Cession
Art 1255. Payment by Cession is the assignment of abandonment of all the properties of the
debtor for the benefit of his creditors.
1. Two or more creditors
2. D must be partially insolvent
3. Assignment must involve all the properties of the D
4. Cession must be accepted by the C
It extends to all the properties of D. Sa Dation sabi does not necessarily involve all the property.
Effects:
Assignment does not make the creditors the owners of the properties of the debtor.
Debtors is released from his obligation only up to the net proceeds of the sale of the properties
assigned.
Debtor is still liable if there remains a balance.
Example: D is indebted to several creditors in a total amount of 2M. His properties are not
enough, therefore he is insolvent. In the consent of his creditors, the debtor may assign his
properties to them to satisfy his credits. If the net is only 1.5M, the D is still liable.
Art 1256. Tender of payment and consignation
Tender of payment – is an act of the debtor offering to the creditor the thing or amount due (the
debtor must show that he is in possession of the thing)
Consignation – is depositing to the proper court the thing or the amount due when the creditor
does not receive it. (when there is a debt, always a judicial and requires a prior tender of
payment)
Requisites of Consignation:
1. Para marelease ang D from Consignation, existence of a valid debt which is due
2. Tender of payment by the debtor and refusal by the creditor without justifiable reason
3. Previous notice of consignation to the persons interested in the fulfillment of the
obligation
4. Actual consignation of the thing or sum due
5. Subsequent notice of consignation made to the interested parties
Kunwari gusto na magbayad ni D, nirefuse ni C. In this case, this obligation will not be
extinguished unless may valid consignation. (Para ito sa mga gusto magbayad pero ayaw ng mga
C) Sa court mo siya ibibigay ngayon.
Cases where tender is not required, When the creditor is absent or unknown or does not appear in
the place of payment. When the creditor is incapacitated when the time is due. When two or
more persons claim the same to collect. When the title of the obligation has been lost.
Pano ba ginagawa ang consignation? Consignation is made by depositing the things due at the
disposal of the judicial authority. (Bawal sa mayor, kapitan, ganon)

Pag nawala ng debtor yung bagay, edi extinguished ang obligation pag dahil sa fortuitous at
walang delay. Pero pag kasalanan niya, liable for damages siya. Pag earthquake presumed nay un
kasi madali lang naman iexplain.
PAg generic, genus never perishes kaya pede mo pa rin icomply
Condonation or Remission of Debt is another form of extinguishing obligations (donation)
1. It must be gratuituous not onerous (walang monetary consideration or any consideration)
2. It must be accepted by the obligor
3. Parties must have the capacity
4. It must not be inofficious
5. If made expressly, it must comply with the forms of donations
Example: When X is about to pay Y. Sabi ni Y, kalimutan mo na yon. The obligation is
extinguished na rito kasi may consent e.
Pag nirenounce mo na yung principal debt, pati yung accessory rin extinguished na. “The
accessory follows the principal”
It is assumed na pumayag si C na kahit walang sangla when the thing pledged ay nasa debtor na.
(Pero pede naman idefend ng creditor)
Confusion or Merger of rights as a mode of extinguishing an obligation
Extiguished na kapag nagmerge ang D at C. Pero pa gang accessory ay namerge, di necessarily
maeextinguish ang principal.
Example: May utang si D. Nagpromissory note kay C, tapos nakapunta rin siya after some time.
Merger benefits the guarantor.
Example: X indebted to Y in the amount of 10,000. W is the guarantor. When there is a merger,
W is freed. Accessory obligation yung pagguarantee niya.
If the obligation is joint, it is extinguished unless lahat sila ay confusion.
If the obligation is solidary, isa lang ay sapat na sa lahat. Pero the confused demand from co-
debtors. It is as if he paid the entire debt.
Compensation is when the two persons are debtors and creditors of each other. It involves
simultaneous balancing.
Example: May utang ka na 700 pero may utang siyang 1000. May partial compensation, may
utang pa siyang 300.
Purpose of compensation is to prevent unnecessary litigation (kasi bat pa magbabayad kung pede
naman na ibawas sa utang)
Confusion (nagmerge ang C at D into ONE person) while in compensation (there are TWO
persons)
1. Compensation by its effect or extent (Partial or Total Compensation)
2. By its course or origin (Legal compensation – by operation of law, Voluntary – by agreement,
Facultative – one of the parties, Judicial – ordered by court in a litigation)
Requisites of Legal Compensation
 1. Parties are debtors and creditors of each other
2. Both debts consist in a sum of money or of a consumable thing of the same kind and quality
3. Two debts are due and demandable
4. Liquidated (Alam mon a kung magkano, determined)
5. No retention or controversy of a third person (kunwari may utang pa sa kabila, suspended until
natalo na sa kaso yung third person)

Exceptions:
1. May agree if not yet due (voluntary)
2. Prior to recession and annulment, pede pa magcompensate (Bago Manalo sa court or
maannul, may valid compensation)
Basta nasatisfy lahat ng requisites, kahit walang consent ng D at C, extinguished na yung obligation.
https://quizlet.com/6022897/law-1-obligations-and-contracts-flash-cards/