AUGUST 24, 2022
What is the problem with the Art. 1156 of the NCC?
- It only views the concept only from the debt side. Debt
cannot exist w/o a credit and that the credit is an asset in
the patrimony of the creditor just as the debt is a liability
of the obligor.
What are the requisites of obligation for it to exist?
(Article No. 1157) Passive Subject(debtor); Active Subject(creditor);
Prestation (to give, to do or not to do); Juridical Tie
What are the sources of obligation?
(Article No. 1157) Law, contracts, quasi-contracts, acts or omissions
punished by law, quasi-delicts.
Definition of obligation by Arias Ramos (Makati Stock Exchange v.
Campos):
- A juridical relation whereby a person (creditor) may
demand from another (debtor) the observance of a
determinate conduct, and in case of breach, may obtain
satisfaction from the assets of the latter.
Can you sue someone for non-payment of debt?
- ❌NO. According to Sec. 3, Art. III of the 1987 Constitution
no person shall be imprisoned for debt or non-payment of
a poll tax.
MARIANO UN OCAMPO III v PEOPLE
(G.R.Nos. 156547-51)
Source of obligation? Contract
Who is the Creditor? Governor Ocampo
Who is the Debtor? Lingkod Tarlac Foundation
Prestation? To give the money to the foundation and the foundation
will return the money to the government
Why is the case not a malversation? Because there is no element of
public fund present in the case.
Civil vs. Natural Obligation
- The former give right to action to compel their
performance while the latter do not grant a right of action
to enforce their performance as it is based on equity and
natural law.
RURAL BANK OF PARANAQUE v REMOLADO
(G.R.No. L-62051)
Kind of Obligation? Natural Obligation (no binding agreement on
repurchase; there is no obligation)
“Equity follows the Law” there may be moral obligation but if there
is no enforceable legal duty the action has to fail. Although the
disadvantage deserves sympathy.
DEVELOPMENT BANK OF THE PHILIPPINES v ADIL
(G.R.No. L-4889)
Evidence of debt? Promissory note
Is it prescribed? YES. Because it is way past the prescribed period
which is 10 years.
What did the debtor do para mabuhay ulit yung utang niya after
10yrs? Debtor recognized his debt by applying for a new promissory
note
How long is the prescriptive period of paying debt?
10 years(written), 6 years (unwritten;verbal)
Is verbal debt allowed? YES.
10 years of written debt is a Civil Obligation because it is due and
demandable.
MANZANILLA v COURT OF APPEALS
(G.R.No. 75342)
Source? Contract (Mortgage Loan)
Who is the Creditor? GSIS
Who is the Debtor? Manzanilla spouses
Remedy made by GSIS? Foreclosure of the property
Is it GSIS’s obligation to allow the redemption of property?
- ❌NO. Because there is no law available allowing the grant
of redemption.
SEPTEMBER 2, 2022
> Pure or Conditional?
“Supposed Ms. Y oblige herself to give Mr. X P5 Million.”
-Pure Obligation because there is no condition given.
When will Mr. X demand payment from Ms. Y? Anytime. As it is
demandable at once.
Examples of Conditional Obligation:
“Ms. Y is obliged to give Mr. X P5 Million if he passes his licensure
exam.”
“I will give you P5,000 if you pass oblicon”
Conditional Obligation Elements:
-No assurance (Uncertain Event)
If Obligation happens, retroactive of benefits is possible.
> Resolutory or Suspensive?
“I will give you P5,000 monthly until X dies.”
-Resolutory because the happening of X’s death will extinguished
the obligation.
“I will give you P5,000 if Rodrigo dies.”
-Suspensive. May mangyayari muna bago mag arise ang obligation
> Conditional or Obligation with Period?
“I will give you P5,000 when my means permit me to do so.”
-Obligation w/ Period. There is no subject to condition just a period
When and how will you demand payment? Ask the court to set the
period.
“Supposed Ms. Y promised Mr. X to pay him P5,000 only if she feels
like paying her debt.”
-❌VOID. Kasi yung will nasa debtor
-Protestative on the part of debtor
Contract to Sell is not yet perfected. Therefore, you cannot use
Art. 1191(Resolution).
Supposed Gold Corp and Silver Corp enter to a contract to sell.
Silver gave the down payment to Gold but Silver conditioned that
he will give the remaining balance after Gold subdivided the
property. Silver gives him 6 months to fulfill the obligation. 6
months passed until it become 1 year but the property is not yet
subdivided. Silver wants to use Article 1191 to sue Gold. As his
lawyer, will you allow it or not?
Answer:
❌NO. Because there is no consummated sale at hindi pa
reciprocal ang obligation. The most we can do is to file for
damages/civil liability/estafa.
If both parties are at fault? Mitigation. (Art. 1192).
Loss of the thing due
What if the obligation is not yet performed but the thing due is lost?
-Correlate with fortuitous event
> Alternative v. Facultative
Alternative: given more than one option to fulfill obligation. But the
fulfillment of one is enough.
Facultative: only one prestation but creditor can give substitution
Choice is given to debtor, unless stated otherwise.
SEPTEMBER 3, 2022
There is Joint Obligation if each debtor is liable only for a
proportionate part of the debt.
As a general rule, obligation is joint unless expressly stated.
Solidary Liability Imposed by Law: Page 173 (Book of Rabuya)
Words/Phrases indicating Solidarity
- Joint and severally
- Juntos o separadamente
- “I promise to pay…” Signed by two or more persons
Application:
“I Promise to pay Mrs. Alphabet the amount of P12,000 in
September 12, 2022” Sgd. Ms. A; Sgd. Ms. B; Sgd. Ms. C

How much may Mrs. Alphabet collect from Ms. A on the due date?
P12,000. Because the obligation is solidary and Mrs. Alphabet
demanding full payment from one debtor is enough.

>Divisible and Indivisible Obligation

“A contract between Silver Corp. and Gold Corp. The obligation is for
Silver to deliver 100 sacks of rice to Gold this coming Sunday.”
-Divisible. Because Silver can deliver the sacks of rice partially
- Object is Generic.

Application:
“Ms. A and Ms. B are obliged to give Ms. C a brand-new Toyota
fortuner.”
-Obligation is Indivisble. Hindi Pwede hatiin yung sasakyan. Duh🙄
-Object is Generic.
What if Ms. A is ready to perform the obligation but Ms. B refuse?
What will be the remedy? Ms. A will pay for the full car and deliver
the same to Ms. C. Then take half of the full payment from Ms. B

Other Example:
“BTS was invited in the Philippines for a 15-minute performance.”
-Indivisible. Because no one can deliver the same quality of
performance made by BTS.