Obligations and Contracts
ARTICLE 1156 UNDER THE NEW CIVIL CODE
AN OBLIGATION IS A JURIDICAL NECESSITY
TO GIVE, TO DO, OR NOT TO DO.
- the court.
- Explains that an obligation is a legal requirement to
either provide something, perform a task, or refrain from
doing something.
- Laws regarding on how we treat, deal or behave towards
each other.
JURIDICAL NECESSITY
- If you fail to fulfill your promise, you can be sued.
OBLIGATION
- A civil obligation is enforceable by court action unlike
natural obligations. (Contract signing and borrowing a
book)
o Civil obligation – legal promises that the court
make sure you keep
o Natural obligation – doing or not doing what’s
right without having legal consequences.
- “to do” includes all kinds of work or service (positive
personal obligation)
- “to give” is a prestation which consists in the delivery of
a movable or an immovable thing in order to create a
real right
o "Prestation" refers to an action or service that
is required as part of fulfilling an obligation.
(object)
- “not to do” obligation of the debtor or obligor to not
perform some act in favor of the creditor or obligee
(negative personal obligation)
- A juridical relation whereby a person (creditor) may
demand from another (debtor) the observance of a
determinative conduct (the giving, doing, or not doing).
o The friend who lent the book is the creditor,
and the person who borrowed the book is the
debtor. The friend (creditor) can ask the person
(debtor) to return the book, which is a specific
action they expect the debtor to do.
If Trisha borrowed money from Yanna in the year 2000, can
Yanna still ask Trisha to give the money back in 2023?
- Yes, Yanna can still ask Trisha to give the money back
after 23 years however, this is already under natural
obligation and not under civil obligation since it is past
the prescriptive period. Yanna can still ask Trisha to pay
her back but she cannot take her to court or sue.
Prescriptive period – number of years kung hanggang kelan pde
singilin
- Once nag set in, di na pwede demanda magiging natural
obligation
- Cannot extend but can toll by Demand letter
CIVIL ACTION
- When one person takes another person to court to make
sure a right is respected or protected.
CAUSE OF ACTION
- When someone does violates the right of another
person.
COMPLAINT
- Written statements where someone writes down why
they think they have a problem and deserve help from
- The first letter you send to the court to begin a legal
disagreement.
COMPLAINT IN RELATION TO CAUSE OF ACTION
- This contains three essential elements of a cause of
action.
o Legal right of the plaintiff (person who starts a
legal case, the one who file complaints)
o The correlative obligation of the defendant
(what the defendant is expected to do in
response to the case filed against them)
o The act or omission of the defendant in
violation of said legal right (pointing out the
wrong of the defendant)
- If these are absent, then the complaint becomes
vulnerable to dismissal
REQUISITES/ ELEMENTS OF AN OBLIGATION:
Active Subject (Creditor or Obligee)
- The party who has the right to demand performance of
the obligation
o Sa oras ng singilan, siya yung mas may gustong
may push through yung event kaya active
subject
Passive Subject (Debtor or Obligor)
- the party who is required to perform the obligation
o Ang mga may utang, usually tahimik lang
hanggang hindi pa sinisingil or hindi agad mag-
volunteer kasi ikaw yung mawawalan ng pera
di naman sila.
o Tahimik: passive
Prestation (Object or Subject Matter)
- It may consist of giving, doing, or not doing something.
- Fact, object, or service
o Ito yung kailangang gawin
Efficient Cause (Vinculum Juris or Juridical Tie)
- That which binds the parties of an obligation
o Reason why need gawin ni passive subject yung
obligation niya kay active subject
Through a contract of loan, Diego borrowed P1,000,000 from
Cardo a year ago.
On the maturity date,
who/what is the active subject, passive subjective, prestation and
the efficient cause?
 Active subject: Cardo
 Passive subject: Diego
 Prestation: the giving of P1,000,000
 Efficient cause: contract of loan
FORMS OF AN OBLIGATION:
- Oral
- Written
- Partly oral and partly written
KINDS OF OBLIGATION ACCORDING TO THE SUBJECT MATTER
A. Real Obligations
- Latin word “res”- object
- Real obligations is the giving of an object
- Represents to give
o Example: magbigay ka, magdeliver ka ng
cellphone
KINDS OF REAL OBLIGATIONS
1. Determinate or Specific Real Obligation
Personal Obligation
- Obligation of a debtor or obligor to deliver a determinate
or specific thing to the creditor or obligee.
- Refers to the responsibility of the person who owes
something (debtor) to give a specific thing to the person
they owe (creditor). It's about fulfilling a promise to hand
over a particular item as part of an obligation.
- A thing is determinate when it's specifically pointed out
or physically separated from similar things of its kind. In
other words, it's singled out or made distinct from others
of its type. (Obligation to deliver a car with plate number
ABC123)
B. A thing is indeterminate when it's identified only by its
general category or type, without any specific name or
physical separation. It's not singled out from others of
the same kind.
C. Positive personal obligation
a. Represents to do
b. Gumawa ng bahay, kumanta sa concert
D. Negative personal obligation
a. Represents not to do
b. Huwag mong gawin yung bagay na yon
RIGHT
- A claim or title to an interest in anything
- A power, privilege, or immunity guaranteed under a
constitution, statute or decisional law
- Privilege
- For every right enjoyed by any person, there is a
corresponding obligation on the part of another person
to respect such right
o When someone has a right, someone else has a
responsibility to honor that right.
o For every right someone has, there's a
matching duty for others to respect it.
Imagine you borrowed a book from your friend. In this situation:
Your Obligation: You have an obligation "to return" the book to
your friend. This falls under the category of "to give."
Your Friend's Right: Your friend has the right to receive the book
back from you.
Not to Do: Tamper your friend’s book or not give it back.
ARTICLE 1157. SOURCES OF OBLIGATIONS
OBLIGATIONS ARISES FROM LAW, CONTRACTS, QUASI-
CONTRACTS, ACTS OR OMISSIONS PUNISHED BY LAW, AND
QUASI-DELICTS
- The sources of obligation under this provision are
exclusive.
PRACTICE OR CUSTOM (NOT AN OBLIGATION)
- Not a source of a legally demandable or enforceable right
- Does not create a legal right that can be enforced
- Just because something is done in a certain way
traditionally or commonly, does not mean you can legally
force other to follow it
o Leaving bowl of candies outside the house for
Halloween, if they decide to not do it the next
Halloween, no one can legally force them to
continue the practice.
LAW
- A rule of conduct, just, obligatory, promulgated by
legitimate authority, and of common observance and
benefit
- Law is a fair and necessary rule that comes from a proper
authority
- Article 1158
REPUBLIC ACT 623
- Meant to protect the intellectual property rights of
registrants of the containers and prevent unfair trade
practices and fraud on the public.
CONTRACT
- Meeting of minds between two or more persons
whereby one binds himself, with respect to another.
- Agreement of people on something.
- Negotiation, preparation, perfection, consummation
- Elements: Consent, Object, Cost
- Article 1159
Negotiation – the process that starts when people show they're
interested in making an agreement and continues until they
actually finalize and agree on the terms of the contract.
- Talking and discussing before both sides agree on
everything
Perfection – happens when all the important parts of the contract
come together and agree.
Consummation – begins when parties perform what they agreed
on.
Oral Contract – 6 years
- An agreement between people that's made through
spoken words, rather than being written down
- Harder to prove than written contracts
Written Contract – 10 years
QUASI-CONTRACTS (6 YEARS)
- Latin of “as if”
- No one shall be unjustly enriched or benefited at the
expense of another
- They're situations where even if there's no official
contract, nobody should unfairly gain or benefit from
someone else's loss. It's about making sure people are
treated fairly and not taking advantage of others.
- “Parang contract” hindi siya full-pledged contract
because of “unilateral” - isa lang ang nag decide to push
through unlike sa regular contract na bilateral
- Most common examples:
o Negotiorum gestio – If someone decides to
handle someone else's business or belongings
on their own, even if they weren't asked to,
they have to keep doing that until everything is
finished or they get permission from the owner
to stop.
 Example: nagpunta sa ibang bansa
yung kapitbahay mo tapos biglang
nagkaroon ng calamity, and nasira
yung bubong ng mga hawla ng hayop,
so there is a tendency na makatakas
sila. Bilang mabuting kapitbahay, on
your own initiative, pinaayos mo
yung hawla ng hayop
 Ikaw lang, unilaterally, ang nagdecide
 Upon returning of your neighbor,
may obligation na siya to reimburse
yung mga ginastos mo even though
initially he didn’t give any approval
 Question: what if sinabi ng
kapitbahay mo na bakit mo pinaayos,
sino nagbigay ng consent? ANG
BATAS MISMO ANG NAGSABI OR
NAGBIGAY NG CONSENT.
 Ang point of view ng batas is if yung
may-ari ang nasa bahay and nakikita
niya na sira na ang hawla, yon din
naman ang gagawin niya. And kung
may ibang tao na gumawa non para
sayo, it is your obligation to
reimburse.
o Solutio Indebiti – This refers to the payment by
mistake of an obligation, in excess of what
should have been paid or payment to a person
not due to receive it.
 Namali ang bayad or sumobra, may
obligation tayo na ibalik to.
 Hindi ka pwedeng makinabang at the
expense of another person.
 If you get something you shouldn't
have asked for, and it was given by
mistake, you have to give it back.
 Must be proven: the absence of a
right to collect the excess sums; the
payment was made by mistake (If
you weren't supposed to receive
extra money, and it was given to you
by accident, you have to give it back
because you don't have the right to
keep it.)
DELICTS OR ACTS OR OMISSIONS PUNISHED BY LAW
- A violation of the law; especially a wrongful act or
omission giving rise to a claim for compensation.
- Crime produce obligation
- Intentional
- Every person criminally liable for a felony is also civilly
liable.
- Revised Penal Code: laws about different crimes, special
penal laws (specific crimes)
- Pinagmumulan ng obligation ang crimse kasi may
criminal liability na makukulong ka at meron dong civil
liability na kailangan may babayaran ka.
- Example: crime of arson (panunuyog ng bagay na
pagmamay-ari ng ibang tao) makukulong ka na at
kailangan mo pa i-reimburse yung halaga ng nasunog mo
QUASI-DELICTS
- Negligence
- If you do something wrong or fail to do something, and it
harms someone else, you have to compensate them for
the damage you caused.
- tort or culpa aquiliana (refers to a legal concept where
someone can be held responsible for causing harm to
another person due to their negligence or fault. It's a
basis for seeking compensation when someone's actions
or omissions lead to someone else's injury or damage.)
- There are acts or omissions that cause damage to
another. There being fault or negligence but without any
existing contractual relation between the parties. There
is now an obligation to pay for damages.
- “Parang crime”
- Intent: meron sa crime wala sa quasi-delict
o Sa crime, nandon yung intention mo na
makasakit
o Sa quasi-delict walang intention na makasakit
pero nakasakit ka pa rin due to negligence
- Example: nagmamaneho ka ng sasakyan pero dahil sa
pagmamadali ka, nakasagasa ka (wala kang intent pero
dahil sa negligence mo nakaasksidente ka) so you have to
pay for the damages such as bill sa hospital
ARTICLE 1158
OBLIGATIONS DERIVED FROM LAW ARE NOT PRESUMED.
- Only the things specifically stated in this code or in
special laws can be legally enforced, and they will be
governed by the rules set in those laws. If something isn't
covered, the regulations in this particular section will
apply.
- not presumed: dapat may actual or specific law bago mo
masabi na may obligation ang tao
- Example: Tax Laws or Train Law - obligation to pay taxes
- Family Code of the Philippines: obligations of family
members to each other
o Obligation ng mga magulang na alagaan ang
mga anak lalo na ang mga menor de edad
kasama na dito ang pagbigay ng sustento
o Civil obligation and criminal liability ang hindi
pagbibigay ng sustento

ARTICLE 1159
OBLIGATIONS ARISING FROM CONTRACTS HAVE THE FORCE OF
LAW BETWEEN THE CONTRACTING PARTIES AND SHOULD BE
COMPILED WITH IN GOOD FAITH.
- When people make agreements (contracts), those
agreements are like legal rules between them, and they
should be followed honestly and fairly by both parties.
- Once may contract, such as contract of sale, may force of
law. Para sa inyo (buyer and seller), yon ang batas and
ano man ang nailagay sa contract as long as it is not
contrary to law, public morals, policy and good customs
pwede, mag-stipulate (demand or specify) kung ano
gusto niyo ilagay na provisions sa contract.
- Good faith – a concept that doesn't have a specific
definition but generally means having honest intentions.
o It suggests that a person is acting sincerely and
doesn't have knowledge of important facts that
should make them investigate further. In other
words, it's about being genuine and not trying
to deceive others.
ARTICLE 1160
OBLIGATIONS DERIVED FROM QUASI-CONTRACTS SHALL BE
SUBJECT TO THE PROVISIONS OF CHAPTER 1, TITLE XVIII, OF THIS
BOOK
NEGOTIORUM GESTIO
SOLUTIO INDEBITI
OTHER QUASI-CONTRACTS
- The support given by strangers as enumerated under
article 2164 to 2175 (support, funeral expenses, accident,
fire, flood, storm)
ARTICLE 1161
CIVIL OBLIGATIONS ARISING FROM CRIMINAL OFFENSES SHALL BE
GOVERNED BY PENAL LAWS
- Civil liability of a person guilty or felony – every person is
criminally liable for a felony is also civilly liable
o When a person is found guilty of committing a
crime, they can also be held responsible for any
damages or harm caused by that crime. This
means that their criminal liability is linked to
their civil liability – they might have to
compensate the victim financially or otherwise,
in addition to facing criminal consequences.
o If someone committed a crime they can face
consequences:
 Criminal liability – against the state
 Imprisonment
 Fine
 Both
 Civil liability – against the innocent
person or victim
 Restitution (pagsoli) or
Reparation (repair) – fix
situation or make up for it
 Indemnification of damages –
compensation or payment
o MENTAL
 Moral
 Exemplary
 Nominal
 Temper
 Actual
 Liquidated
ACTUAL – needs to be justified by the presentation of actual
receipt
- Kunware si victim nabangga ng sasakyan, tas naospital
sya, pano nya mapapareimburse sa accused yung mga
nagastos nya sa ospital. He needs to present in court
different official receipts coming from the hospital and
pharmacy to prove reimbursement. Pag napakita nyam
ga resibo, the court will automatically grant actual
damages in his favor
MORAL – ginagrant kapag ang victim ay nagsuffre ng: MWSSS
(Mental Anguish, Wounded Feelings, Social Humiliation, Serious
Anxiety, Sleepless Nights)
- If the victim suffered any of the MWSS, pwede syang mag
claim ng moral damages
- Di need ng proof, need lang magtestify na sa court
- Kunware sa rape victim, naturally entitled sya sa moral
damages dahil lahat ng MWSS naranasan ng isang rape
victim. Pwede nya sabihin sa court “Your honor, I
suffered all of these emotions, these traumatic
expriences because of the crime that was committed
against me” and that will be sufficient for the court to
grant sufficient damages.
EXEMPLARY – magkakambal moral and exemplary. Most of the
time sabay ginagrant
- Serves as a deterrent to the public na kapag gagawa ng
crime yung isang tao pwede sya magbayad ng exemplary
damages sa victim
NOMINAL – ginagrant sa isang victim kahit hindi seryoso yung
damages na nasuffer nya (may nagawang mali yung accuse but it is
not serious enough for them to pay for moral or exemplary)
- Pinakamababang form of damages
- 1,000 pesos to 50,000
PEOPLE OF THE PHILIPPINES VS ACCUSED (JUAN DELA CRUZ)
- Nangyayari kasi yung accused has now become a public
charge, security risk na sya, nagiging kalaban nya na lahat
ng tao na nakatira sa bansa
- People of the Philippines hindi Filipinos – nagiging risk na
sya di lang sa Filipinos kundi sa lahat ng nagrereside sa
Philippines kaya need sya ikulong
- Yung victim ang primary witness for the offense
FAILURE TO PROSECUTE
- May mga kasong nadidismiss kapag wala nang witness
kasi wala na magtetestify especially kapag primary
witness na yung hindi sumipot (di na uusad ung kaso)
- Subsidiary liability
o Innkeepers (people who run hotels or similar
places) or any other persons or corporations
can be held responsible for crimes that happen
in their establishments. They can also be held
 accountable for helping to return stolen goods,
even if they weren't directly involved in the
crime. This is a type of shared responsibility
where they might have to compensate for
losses caused by criminal activities on their
property.
o Shall also apply to employers, teachers,
persons, and corporations engaged in any kind
of industry for felonies committed by people
under them (employees, students)
- What is included in civil liability?
o Restitution – means giving back or returning
something that was taken or stolen. When
restitution is required, it's best to return the
actual item itself if possible. If the item has
been damaged or deteriorated in some way,
the person returning it should consider that
and make appropriate allowances.
o Reparation – involves compensating someone
for the harm or damage caused. In legal cases,
the court will decide how much money should
be paid as compensation. This decision is based
on factors such as the value of the item that
was harmed and its emotional or sentimental
importance to the person affected.
o Indemnification – refers to compensating
someone for losses or damages. In this context,
it means that the compensation should cover
not only the harm suffered by the injured
person but also the losses experienced by their
family members as a result of the incident.
ARTICLE 1162
OBLIGATIONS DERIVED FROM QUASI-DELICTS SHALL BE
GOVERNED BY THE PROVISIONS OF CHAPTER 2, TITLE XVII OF
THIS BOOK, AND BY SPECIAL LAWS
- If there is no pre-existing contractual relation between
the parties, it is called quasi-delicts.
- The responsibility for mistakes or carelessness, as
mentioned in the previous section, is completely
separate from the civil liability that comes from
negligence under the Penal Code.
- In other words, being accountable for errors or
negligence in one situation is different from being held
responsible for negligence as a criminal offense under
the law.
QUASI-DELICTS
- There was a crime but no intent against the accused
- Hindi sinasadya
- Quasi means parang oo, parang hindi
NEGLIGENCE
- Lack of care, foresight, diligence
- Kaya nagkakaron ng aksidente kasi di nagiingat, there is
lack of foresight but there was no intent to injure or to
harm
RES IPSA LOQUITUR
- The thing speaks for itself
- Usually applicable in medical negligence case
- Kunware nagpaopera sa tyan si misis, pagkatapos
maoperahan, nagpahinga ng ilang araw sa ospitlal tsaka
pinauwi ng doctor. Everytime she goes to cr to pee,
napapansin nya na may lumalabas na hibla ng tela. So
she thought na baka yung sinulid na ginamit lang pantahi
yun kaya lang habang lumilipas ung araw, mas lalo
sumasakit ung tyan nya at mas kumakapal ung hibla ng
tela na lumalabas sakanya. Nung di nya na kaya yung
sakit, pumunta sya ulit sa hospi para magpaultrasound
tas Nakita sa tyan nya yung gauze so naiwan pala yung
gauze sa tyan nya. So kasalanan nung nag opera sakanya.
- The thing speaks for itself – yung presence nung gauze.
Yung gauze yung makakapagsabi na yung doctor ung
liable for medical negligence. The thing doesn’t do the
talking but its presence will speak for itself. Di pwede
sabihin nung doctor na walang witness kasi nandun nga
yung gauze tsaka highly restricted ung operating room so
walang ibang ituturo kundi sila sila rin na nag opera
sakanya kahit tulog ung misis nung inooperahan sya.
- Walang defense yung doctor. Di lang di ung doctor ung
liable kundi ung buong team na nag opera
PROXIMATE CAUSE
- If the event did not happen, would the injury still have
resulted
- Ano yung pinaka puno’t dulo ng lahat?
- Bataclan vs Medina - a bus was traveling to Southern
Luzon, mabilis ung takbo ng bus hanggang nabangga sa
puno. Dahil sa lakas nung impact, bumaliktad ung bus at
nagleak ung gasoline. Sa lakas nung impact nagising ung
mga tao sa barrio eh wala pa kuryente nung panahon nay
un so nung pumunta sila para icheck nagdala sila ng torch
kasi madaling araw palang nun mga 3 am, kaya lumiyab
yung bus tsaka namatay yung mga pasahero
- Yung proximate cause nyan nya is ung accident (turning
of the bus upside down) encountered by the bus kasi dun
nagkaron ng leak
- Yung immediate cause is yung contact ng torch sa fuel
COUNTER CLAIM – kontra demanda
CROSS CLAIM – may third party involved (may tao nakatayo sa gilid
ng poste tas nabangga ng car yung poste tas tumumba)
CONTRIBUTORY NEGLIGENCE
- the victim contributed to the negligence of the accused
- may patient na nagttake ng blood thinner tas sinabihan
sya top bago operation kaso di ya stinop so nung cinut
sya na comatose kasi d tumigil pagdugo. Liable doctor
kasi di nagconduct ng lab test bago operation, liable yung
patient kasi di sumunod sa doctor.
NATURE AND EFFECT OF OBLIGATIONS
ARTICLE 1163
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
- If you have to give something to someone, you also have
to take care of it properly, like how a good parent would.
This is unless the law or what you both agreed on says
you need to take care of it differently.
- One of the obligations of the obligor or debtor in Specific
Real Obligation
 o In a specific real obligation, which is a type of
legal duty, the person who owes something
must fulfill a particular action tied to a specific
item or property.
- tulad ng isang pag-aalaga ng isang ama sa isang pamilya:
gagawin mo ang lahat para hindimapahamak ang iyong
mag-ina
o Example: nagtitinda ka ng pets at may bumili
sayo ng aso tapos iddeliver mo sa buyer next
week. Hindi porket bayad na, pababayaan mo
na lang yung aso. Proper diligence of a good
father of a family implies na kailangan alagaan
mo pa rin siya.
- Unless nanghihingi pa ng higher standard of care
o Example: everytime sumasakay tayo sa jeep
and other public transportation, we enter a
contract of carriage. Under the law, it requires
the kind of care na extraordinary diligence, ibig
sabihin na ganon ka dapat alagaan ng mga
transportation vehicles. Pinapangako ng drivers
na safe ka makakarating ka sa pupuntahan mo
and if naaksidente kayo, that is a breach of
contract dahil hindi nasunod ng driver yung
extraordinary diligence
o Pagsasakay ka ng jeep at hindi ka pa nakakaupo
at nasubsob ka, liable pa rin yung driver dahil
hindi niya in-exercise yung extraordinary
diligence. It is a violation to take good care of
the passengers.
DILIGENCE
- Care, caution, attention, and care required from the
person in a given situation
o Being really careful and paying good attention
to what needs to be done in a certain situation.
o Being careful in general
- Opposite of negligence
DUE DILIGENCE
- The diligence reasonably expected from, and ordinarily
exercised by a person who seeks to satisfy a legal
requirement or to discharge an obligation
o Level of care and attention that a person
should give when they're trying to meet a legal
rule or fulfill a responsibility. It's what a
reasonable person would do in that situation.
o Being thorough and careful in a legal or
business context
EXTRAORDINARY DILIGENCE
- Extreme care that a person of unusual prudence
exercises to secure rights or property
o Being extremely careful in a way that goes
beyond what a very careful person would
normally do.
o It's like when someone takes exceptional
measures to protect their rights or belongings.
- Necessary for Industries imbued with public interest and
public policy
- Example of these industries:
o Medical, Banking, Common Carriers (Contract
of Carriage), Food Industry
STANDARD DILIGENCE
- Ordinary standard of care (diligence of a good father)
NEGLIGENCE
- Slight Diligence is equivalent to Negligence
- Omission of that diligence required by the nature of
obligation and corresponds with the circumstances of the
persons, of the time, and place.
o Not being as careful as you should
o Not doing what’s needed according to the
obligation’s requirements
- The conduct that creates an undue risk of harm to others
- Failure to observe that degree of care
ARTICLE 2179 OF THE CIVIL CODE
- When the plaintiff’s own negligence was the immediate
and proximate cause of his injury, he cannot recover the
damages.
- But if his negligence was only contributory, the
immediate and proximate cause of the injury being the
defendant’s lack of due care, the plaintiff may recover
damages (court shall mitigate the damages ti be
awarded)
o If the person who is suing (plaintiff) is mostly
responsible for their own injury, they can't ask
for compensation.
o However, if their responsibility is only a part of
the problem and the main reason for the injury
is the lack of care from the other person
(defendant), the plaintiff can ask for
compensation, but the court might reduce the
amount.
DILIGENCE REQUIRED IN REAL OBLIGATION
(OBLIGATION TO GIVE)
General Rule: to take care of the thing with the proper diligence
of a good father of a family
-
EXCEPTIONS:
1. Law requires another standard of care
- A case where the debtor or obligor in obligation must
observe a higher standard of care than ordinary diligence
because a specific law provides.
o If a law says you need to be even more careful
than the usual standard, you have to do that.
o It's like having to take extra care because the
law says so.
ARTICLE 1755, OF THE NEW CIVIL CODE
- A common carrier is bound to carry the passengers safety
as far as human care and foresight can provide, using the
utmost diligence of very cautious persons
o Transport companies must keep passengers
safe by using the utmost care like very cautious
people would.
SECTION 2 OF RA NO. 8791 THE GENERAL BANKING LAW OF 2000
- The State recognized the “fiduciary nature of banking
that requires high standards of integrity and
performance”
 o Banking is seen as a highly trustworthy and
responsible job because it involves handling
people's money and financial matters.
2. The stipulation of the parties requires another standard
of care
- A case where the debtor or obligor and the creditor or
oblige agrees on a higher standard of care which is higher
than ordinary diligence of a good father of a family
o When the person who owes something and the
person who should receive it agree to be more
careful than usual, even more than what a
good parent would do.
DETERMINATE
- A thing is considered to be determinate if it is particularly
designated and physically segregated from all other
objects of the same class.
o Specifically chosen and physically separated
from other similar things.
Example:
1. I will give you a Toyota vios with plate number ABC123.
- Naging mas specific with the plate number kasi bawat
kotse ay may plate number but sya lang yung may
number na ganon.
2. I will give you a house located at 54B Scout Tuazon,
Quezon City. (Specific because of the location)
3. I will give you the pen that I am holding right now. - Kahit
hindi mo pangalanan, but you are pertaining to a specific
object.
GENERIC
- Indeterminate thing
- Identified only by its species. The debtor can give
anything of the same class as long as it is of the same
kind.
Example: I will give you a car.
- Generic object kasi maraming uri ng kotse.
- You need to identify kung ano ang determinate or
specific kasi yun yung kailangan mo alagaan sa obligation
mo.
- Correlating sa example in the pet shop: hindi lang basta
aso yung aalagaan mo, kundi si Casper na binili mo. And
if hindi i-specify like: I will give you a dog; pwedeng hindi
mo alagaan ng todo yung aso kasi kung mamatay man,
matutupad mo pa rin yung pangako or obligation mo na
magbigay ng aso.
Genus nungram perit - genus never perishes, na kahit mamatay
yung aso may iba pa namang aso sa ibang lugar (money)
- Even if specific instances within a category may
disappear, the broader category itself continues to exist.
OBLIGATIONS OF A DEBTOR OBLIGED TO GIVE A DETERMINATE
THING
1. To take good care of the thing with the diligence of a
good father of a family unless the law or agreement of
the parties requires another standard of care.
- The rule is to take care of something as a
responsible parent would, unless the law or an
agreement asks for a different level of care.
2. To deliver the thing.
- Ang delivery ng subject matter ang nakapagpapalit
ng ownership
- Pag nadeliver na ni seller kay buyer yung subject
matter, that’s the only time na nalilipatyung
ownership.
3. To deliver the fruits of the thing.
a. Natural fruits: they are the spontaneous products
of the soul and the young and other products of
animals.
- Tumubo na lang nang hindi na kailangan ng
tulong ng tao
- Anak ng hayop (puppy, cattle)
- Hayop na ipinanganak na may tulong ng
veterinary
o Under the law, ang mga hayop ay
natural fruits
b. Industrial fruits: they refer to those produced by land of
any kind through cultivation or labor.
- Kailangan ng tulong ng magsasaka bago tumubo
(palay, mais, tobacco)
c. Civil fruits: refer to fruits that are the result of a juridical
relation.
- Interest income, fruit from the loan
- Rent income, from your property
PERSONAL OBLIGATION
- Obligation to do or not to do
o Because you cannot compel a person to do
something which is against or not against his
will
ARTICLE 1164
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
- The person who is owed something (creditor) can enjoy
the benefits that come from the item as soon as the
obligation to give it starts. But they don't actually own
the item until it's physically given to them.
o Creditor is considered a buyer or the active
subject
Illustration: On August 1, Mr. A promised to give a specific dog to
Mr. B. Based on their agreement, the dog should be delivered to
Mr. B on August 15. Unfortunately, the dog was delivered on
August 31. Unknown to Mr. B, the dog gave birth to 3 puppies on
August 21. Who should be entitled to the three puppies?
- Under the law, lahat ng fruits of the right kay creditor
dapat from the time the obligation to deliver it arises. So
on August 15, lahat ng fruits (natural fruits) ng dog are
entitled to Mr. B kahit na nanganak sa bahay ni Mr. A.
- What if the dog gave birth on August 10? The puppies are
entitled to Mr. A kasi hindi pa dumarating yung time para
i-deliver yung dog.
- If hindi napag-usapan yung date of delivery sa isang
contract of sale, dapat itong madeliver immediately.
Example: if the dog gave birth the night before your
supposed delivery, the puppies are entitled na sa buyer.
(Immediately demandable yung delivery kung walang
napag-usapan)

DELIVERY
- Formal act of transferring something (deed, giving or
yielding possession, control to something or another)
- Need ideliver yung isang bagay from the due date or else
delayed
o Kunware umorder ka sa Lazada, nakalagay na
due date sa delivery ay today, kaso di pa
dumadating. Yung actual delivery date nya
could be delayed
o Kapag due date, creditor has personal right
over the thing
o Kapag delivery date, creditor already has a real
right over the thing
ACTUAL DELIVERY
- Act of giving real and immediate possession to the buyer
or the buyer’s agent.
o Physically handing over
o Giving real and immediate control to buyer
CONSTRUCTIVE DELIVERY
- Amounts to a transfer of title by operation of law when
actual transfer is impractical or impossible
o A legal way to transfer ownership when giving
the actual item is too hard or not doable. It's
like a special rule to change ownership without
physically handing over the item.
- Imagine you're buying a big piece of land, but you can't
physically go to the land to receive it. Instead, the seller
hands you the keys to a gate that leads to the land. Even
though you haven't physically gone there, this "key
delivery" symbolizes that you now own the land.
PERSONAL RIGHT
- Power of one person to demand of another, as a definite
passive subject, the fulfillment of a prestation to give, to
do, or not to do.
o One person having the authority to ask another
person to do something specific for them, like
giving, doing, or not doing something
- Only arises prior to delivery of the thing
- Kahit nabayaran mo pa at di pa dumadating personal
right lang ang meron ka
REAL RIGHT
- The power belonging to a person over a specific thing,
without a passive subject individually determined,
against whom such right may be personally exercised
o Having control over something specific, and
you don't need to focus on a particular person
to use that control.
- Only arises in actual delivery kasi may actual possession
ka na
Example:
Si seller may ibinentang specific dog, hanggang hindi pa naiddeliver
ni seller yung specific dog kay buyer, ang tanging meron lang si
buyer mula kay seller dahil may perfected contract naman is
personal right. Hanggang wala pa sa kanya yung aso, wala pa
siyang karapatan don sa aso. Since personal right lang meron siya,
pwede niya kulitin si seller na ideliver na yung dog, pwede siya
magdemand or ilaban against that person. Ang real right naman,
magkakaroon ka nito pag na-deliver na yung mismong aso sayo.
Yung karapatan niya sa aso pwede niya na ilaban against the world.
Ikaw na yung mismong owner since na tanggap mo na upon
delivery, kaya hindi na pwedeng kunin sayo. If ever may kumuha
nung aso sayo, pwede mo na kasuhan.
Yung personal right mo magiging real right pag na-deliver na sayo.
Pag wala pang delivery, ang pwede mo lang habulin ay yung
nagtitinda.
- Ownership over properties are acquired and transmitted
by delivery.
KINDS OF FRUITS
NATURAL FRUITS
- They are the spontaneous products of the soul and the
young and other products of animals.
- Tumubo na lang nang hindi na kailangan ng
tulong ng tao
- Anak ng hayop (puppy, cattle)
- Hayop na ipinanganak na may tulong ng
veterinary
o Under the law, ang mga hayop ay
natural fruits
INDUSTRIAL FRUITS
- They refer to those produced by land of any kind through
cultivation or labor.
- Kailangan ng tulong ng magsasaka bago tumubo
(palay, mais, tobacco)
CIVIL FRUITS
- Refer to fruits that are the result of a juridical relation.
- Interest income, fruit from the loan
- Rent income, from your property
ARTICLE 1165
WHEN WHAT IS TO BE DELIVERED IS A DETERMINATE THING, THE
CREDITOR, IN ADDITION TO THE RIGHT GRANTED HIM BY ARTICLE
1170, MAY COMPEL THE DEBTOR TO MAKE THE DELIVERY
IF THE THING IS INDETERMINAET OR GENERIC, HE MAY ASK THAT
THE OBLIGATION BE COMPLIED WITH AT THE EXPENSE OF THE
DEBTOR
IF THE OBLIGOR DELAYS, OR HAS PROMISED TO DELIVER THE
SAME THING TO TWO OR MORE PERSONS WHO DO NOT HAVE
THE SAME INTEREST, HE SHALL BE RESPONSIBLE FOR ANY
FORTUITIOUS EVENT UNTIL HE HAS EFFECTED THE DELIVERY
- Creditor can force debtor to give it (Article 1170)
- Creditor can ask debtor to do it at debtor’s cost
- Debtor is responsible for accidents or delays until given
REMEDIES:
SPECIFIC PERFORMANCE WITH DAMAGES
- Bumili ka ng kotse tas bayad mo na, kaso mag 1 month
na di parin dinideliver, ano ngayon ang remedy mo
against the car dealer?
 o Specific Performance with damages,
cinocompel mo sya na ideliver na yung bagay
na binili mo
DEMAND DAMAGES IN CASE OF FRAUD, NEGLIGENCE OR DELAY
IN THE PERFORMANCE OF HIS OBLIGATION, OR CONTRAVENTION
OF THE TENOR
- Kunware napagusapan nyo is red vios car tapos yung
dumating sayo pearl white so merong contravention
pwede ka mag demand
RESCISSION WITH DAMAGES IN CASE OF RECIPROCAL
OBLIGATION
- Article 1191 VS 1380
- Ipapawalang bisa yung contract
DETERMINATE
- A thing is considered to be determinate if it is particularly
designated and physically segregated from all other
objects of the same class.
o Specifically chosen and physically separated
from other similar things.
Example:
4. I will give you a Toyota vios with plate number ABC123.
- Naging mas specific with the plate number kasi bawat
kotse ay may plate number but sya lang yung may
number na ganon.
5. I will give you a house located at 54B Scout Tuazon,
Quezon City. (Specific because of the location)
6. I will give you the pen that I am holding right now. - Kahit
hindi mo pangalanan, but you are pertaining to a specific
object.
GENERIC
- Identified only by its species. The debtor can give
anything of the same class as long as it is of the same
kind.
Example: I will give you a red car.
- Hindi tumupad yung dealer, you can let somebody
deliver a red car for you tapos yung nag deliver ng red car
sayo, pwedeng sya yung maningil dun sa dealer a pwede
din singilin ng damages
ARTICLE 1166
THE OBLIGATION TO GIVE A DETERMINATE THING INCLUDES
THAT OF DELIVERING ALL ITS ACCESSIONS AND ACCESSORIES,
EVEN THOUGH THEY MAY NOT HAVE BEEN MENTIONED
- If you're supposed to give someone a particular item,
you're also responsible for giving them anything extra
that naturally comes with it, even if you didn't specifically
mention those extras before.
ACCESSIONS
- Signifies all of those things which are produced by the
thing which is the object of the obligation as well as all of
those which are naturally or artificially attached thereto
o Includes things that come from the main thing
itself and things that are added to it.
- ATP – it should be attached (steering wheel), produced
(fruits), incorporated (nakakabit sa whole thing)
- Removal of accession can cause damage of the whole
thing as opposed to the accessory
Example:
Bumili ka ng lupa and may nakatanim na puno ng mangga. Kahit
hindi sinabi sa contract kung kasama yung puno sa pagmamay-ari
mo o delivery, kasama ito dahil ito ay considered na accession kasi
naka-incorporate ito sa lupa. But kung explicitly sinabi sa contract
na hindi kasama yung puno ng mangga, hindi ito kasama sa
delivery.
ACCESSORIES
- All the things that are meant to make another, more
important thing look better, be more useful, or last
longer.
- These accessories aren't physically attached or part of
the main thing, but they serve to improve or protect it.
- Cellphone. Yung battery considered as an accession kasi
pag tinanggal mo yung battery hindi na gagana yung
cellphone.
- Yung accessories kahit tanggalin mo, kaya pa mag-
function nung principal object but yung accession if
tinanggal mo, (may effect sa principal object) hindi mo na
magagamit or ma-eenjoy nang maayos yung principal
object.
o Tools sa loob ng sasakyan: accessory
- Removal will not damage the whole thing
REMEDIES OF THE CREDITOR
- If the debtor fails to perform his obligations to deliver a
determinate thing:
o To compel the debtor to make the delivery
o To demand damages from the debtor
- If someone owes you something specific but doesn't give
it to you, you have two options to make things right:
o Ask for the thing: You can make them give you
what they owe.
o Ask for payment: You can also ask them to pay
you money instead, to make up for what they
owe you.
- Yan lang option mo because it is a determinate thing,
hindi pwedeng bumili sa iba kasi specific yon
- If the debtor fails to perform his obligation to deliver a
generic thing:
o To ask that the obligation be complied with at
the expense of the debtor.
 Sa iba na bibili, pero si seller na ang
magsshoulder ng expenses
o To demand damages from the debtor.
 Pwede mong hanapin sa ibang seller
yung bagay, kasi meron pang same
kind sa iba.
- If the debtor fails to perform his obligation in obligations
to do:
o If the debtor fails to perform the obligation or
performs it but contravenes the tenor thereof,
the creditor may have the obligation executed
at the expense of the debtor or he may also
demand damages from the debtor.
 Nag-usap kayo ng karpintero na
magpapagawa ka ng bahay, pero
biglang ayaw nya na. As a customer
pwedeng sa ibang karpintero mo na
 ipagawa pero yung charges shoulder
na nung unang karpintero. Pero kung
hindi ka makahanap ng iba, pwede
mong singilin sa damages. Hindi mo
siya pwedeng pilitin gawin yung
bahay kung labag na sa loob niy dahil
it is a violation of his right against
involuntary servitude.
o If the debtor performs the obligations but does
it poorly, the creditor may have the same be
undone at the debtor’s expense or he may also
demand damages from the debtor.
 If the person who owes you
something completes their task but
does it poorly, you have two options:
 Request a redo: You can
ask them to fix their work
and cover the costs
themselves.
 Ask for payment: You can
also ask them to pay you
money to compensate for
the poor quality of their
work.
- If the debtor does what has been forbidden him:
o The creditor may demand that what has been
done be undone but at his expense.
o He may also demand damages from the debtor.
Remedies of the Creditor in Obli to Give Spec Gen
Demand delivery of the (generic) thing from / /
the debtor (specific performance) (1165)
Demand delivery of the generic thing from a X /
third person at the cost of the debtor (1165)
Creditor may obtain the generic thing X /
himself and charge the cost to the debtor
(substituded performance)
Demand damages in case of fraud, / /
negligence, delay, or contravention of the
tenor of the obligation (1170)
Rescission w/ damages in reciprocal obli / /
(1191)
Duties of the Debtor in Obli to Give Spec Gen
Standard diligence (1163) / X
Deliver the fruits of the thing (1164) / X
Deliver the specific thing (1165) / /
Deliver the accessions and accessories of / X
the thing (1166)
Pay damages in case of fraud, negligence, / /
delay, or contravention of the tenor of the
obligation (1165, 1170)
ARTICLE 1167
IF A PERSON OBLIGED TO DO SOMETHING FAILS TO DO IT, THE
SAME SHALL BE EXECUTED AT HIS COST
THIS SAME RULE SHOULD BE OBSERVED OF HE DOES IT IN
CONTRAVENTION OF THE TENOR OF THE OBLIGATION.
FURTHERMORE, IT MAY BE DECREED THAT WHAT HAS BEEN
POORLY DONE BE UNDONE
o If someone was supposed to do something but
didn't do it, they have to pay to get it done.
o Personal obligation
o You need to qualify
- This same rule shall be observed if he does it on
contravention of the tenor of the obligation.
- It may be decreed that what has been poorly done be
undone.
o The same applies if they do it against what they
were supposed to do. The work done poorly
might need to be reversed.
- Provides for the right of the creditor or oblige on positive
personal obligation in case of non-performance by the
debtor or obligor of his obligation to do.
o This explains the rights of the creditor when
the debtor doesn't do what they were
supposed to do.
- Substituted performance is sometimes not allowed
because you hire someone because of their qualification
and unique skills
Let's say you hired a painter to paint your house. You both agreed
that the job should be completed within a week. However, after a
week has passed, the painter hasn't even started the work.
According to the rule mentioned, since the painter has not fulfilled
their obligation to paint your house, you have the right to take
action.
You can choose to do one of two things:
1. Have the work done at their cost: You can hire another
painter to complete the job, and the original painter
would have to cover the expenses.
2. Demand damages: You can also ask the original painter
to compensate you for the inconvenience caused by not
completing the work on time.
This rule gives you the power to make sure that the obligations are
fulfilled or that you're adequately compensated if they aren't.
ARTICLE 1168
WHEN THE OBLIGATION CONSISTS IN NOT DOING, AND THE
OBLIGOR DOES WHAT HAS BEEN FORBIDDEN HIM, IT SHALL ALSO
BE INDONE AT HIS EXPENSE
- Explains that if someone is obligated to not do
something, but they go ahead and do it anyway, they are
responsible for undoing their action at their own cost.
- Vandalisms during the time of Isko
RIGHTS OF THE CREDITOR OR OBLIGEE IN PERSONAL
OBLIGATIONS
POSITIVE PERSONAL OBLIGATIONS OR OBLIGATION “TO DO”
(ART 1167)
The obligee can:
1. Have the obligation performed or executed at the
expense of the obligor (except when the prestation
consists of an act where the personal and special
qualification of the obligor is the principal motive for the
establishment of the obligation. In such case the remedy
is an action for damages under Art. 1170)
o Make them do it at their expense: The obligee
can force the person owing to do the task and
 pay for it. (Unless the task needs their specific
skills.)
2. Ask that what has been poorly done be undone
o Fix bad work: If the job is done poorly, the
obligee can ask for it to be corrected.
3. Recover damages under Art. 1170
o Get paid for harm: The obligee can also ask for
compensation if there's harm or loss under
Article 1170.
NEGATIVE PERSONAL OBLIGATIONS OR OBLIGATION “NOT TO
DO” (ART.1168)
If the obligor does what has been forbidden him, the oblige shall
have the following remedies:
1. Have it undone at the expense of the obligor; and
o Undo at the obligor's cost: The obligee can
make the person who did the forbidden thing
reverse their action, and the cost is on them.
2. To ask for damages under Art. 1170
o Claim damages: The obligee can also ask for
compensation for any harm or loss suffered
under Article 1170.
ARTICLE 1169
THOSE OBLIGED TO DELIVER OR TO DO SOMETHING INCUR IN
DELAY FROM THE TIME THE OBLIGEE JUDICIALLY OR
EXTRAJUDICIALLY DEMANDS FROM THEM THE FULFILLMENT OF
THEIR OBLIGATION
- If someone owes you something and you ask them to
give it or do it, they're considered late from that point if
they don't fulfill their obligation.
HOWEVER, THE DEMAND BY THE CREDITOR SHALL NOT BE
NECESSARY IN ORDER THAT DELAY MUST EXIST:
1. When the obligation or the law expressly so declare; or
- Payment of taxes. Every 2nd week of April. Di na
need magpadala ng demand letter ng BIR sa mga
payer para magbayad sila ng tax dahil sabi ng batas
di na need ng demand letter
2. 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 was a controlling
motive for the establishment of the contract; or
- Nakasulat sa contract na due and demandable yung
utang after 1 year, pag nakasulat don that the
creditor does not need to send a demand letter to
put the debtor in delay, matik magiging in delay sya
once dumating yung due date
o If the specific timing for delivering something
was a really important reason for making the
deal, then delay can exist even without a
formal request for it.
3. When demand would be useless, as when the obligor has
rendered it beyond his power to perform.
- Umorder kayo ng isang bday cake, di na need ng
demand letter kasi time is of the essence
o If it's impossible for the person who owes to
fulfill the obligation, asking them won't make a
difference.
RECIPROCAL OBLIGATIONS
- Neither party incurs in delay if the other does not comply
or is not ready to comply in a proper manner with what is
incumbent for him.
o If one person doesn't fulfill their obligation
properly, the other person isn't considered
late.
- From the moment one of the parties fulfills his
obligation, delay by the other begins.
o Once one party fulfills their obligation, the
other party is then considered late if they
haven't done their part.
- Contract of sale: Bumili ka ng kotse tas bayad mo na,
kaso di pa dinideliver yung car sayo, delaer is considered
to be in delay without the need of making any demand
- Pag delayed yung debtor liable na sya for interest and
damages
REQUISITES:
1. OBLIGATION IS ALREADY DUE AND LIQUIDATED
- Pag sinabi ko na yung interest na babayaran is 6% of the
principal amount kahit di ko sinabi yung principal
amount, madedetermine mo parin
- Pag sinabi ko na ung interest na babayaran mo for 100
thousand pesos is 6% of whatever profit my company will
earn in 2025, that is unliquidated kasi pano
madedetermine exact amount
2. CREDITOR MAKES A JUDICIAL OR EXTRAJUDICIAL DEMAND
- Judicial: nagfile ka na ng kaso sa korte to demand the
collection of the loan or the performance of an obligation
- Extrajudicial: outside the court
3. THE DEBTOR DOES NOT COMPLY DUE TO FRAUD , FAULT,
OR NEGLIGENCE
- Due na yung utang kaso ayaw magbayad ni debtor, as a
general rule, no demand = no delay
DELAY
- Begins from the time the oblige judicially or
extrajudicially demands from the obligor the
performance of the obligation.
ARTICLE 1170
THOSE WHO IN THE PERFORMANCE OF THEIR OBLIGATIONS ARE
GUILTY OF FRAUD, NEGLIGENCE, OR DELAY, AND THOSE WHO IN
ANY MANNER CONTRAVENE THE TENOR THEREOF, ARE LIABLE
FOR DAMAGES
FRAUD
- Intentional or conscious design to evade the normal
fulfillment of the existing obligations
- Panloloko
DEFAULT
- Delay with the cause of malice or negligence
CONTRAVENTION OF THE TENOR OF THE OBLIGATION
- Doing an act that is contrary to the stipulations of the
parties
INJURY
- Legal invasion of a legal right

DAMAGE
- Is the hurt, loss, or harm which results from the injury
DAMAGES
- Damages are the recompense or compensation awarded
for the damage suffered
BREACH OF CONTRACT
- Unang una dapat may contractual relations kayo. Pag
meron kayo neto, and any of the parties violated the
terms and conditions of the contract, pwede syang
maging liable for the payment of damages
- Existence of a perfected contract, breach by the
contracting party
ARTICLE 1171
RESPONSIBILITY ARISING FROM FRAUD IS DEMANDABLE IN ALL
OBLIGATIONS. ANY WAIVER OF AN ACTION FOR FUTURE FRAUD
IS VOID.
- Article 6 NCC – rights granted by law may be waived
provided that such waiver is not contrary to the public
interest or public order or prejudicial to a third person
- Waiver of an action for future fraud is void because it
gives license to a perpetuate fraud liability
- Free and harmless flaws: mga pinapapirma ng school pag
fieldtrip na di sila liable in case something happens to us
- Actions from past frauds may be waived because it is
equivalent to pardon
o Nagkamali yung accused, the complainant does
not want anymore to file a case to the person
who injured them
WAIVER
- Voluntary relinquishment or abandonment, express, or
implied, of a legal right or advantage.
- Rights may be waived , unless the waiver Is contrary to
law, public order, public policy, morals or customs, or
prejudicial to a third person with a right recognized by
law.
- Must be clear or else it will not be valid and effective
ACTION
- Civil or criminal judicial proceeding
- An ordinary proceeding in a court of justice
ARTICLE 1172
RESPONSIBILITY ARISING FROM NEGLIGENCE IN THE
PERFORMANCE OF EVERY KIND OF OBLIGATION IS ALSO
DEMANDABLE, BUT SUCH LIABILITY MAY BE REGULATED BY THE
COURTS, ACCORDING TO THE CIRCUMSTANCES
- Contributory negligence
o The court may mitigate or reduce the award of
damages because the victim who is partly
responsible for his own injury should not be
entitled to full damages but must
proportionately bear the consequences of his
own negligence
- If victim ung mismong proximate cause of injury, he
should not be allowed to recover
o May taong tumawid sa expressway tas
nainjure, di liable ung nakasagasa kasi ung
taong tumawid mismo ung proximate cause
wala din contributory negligence
ARTICLE 1173
THE FAULT OR NEGLIGENCE OF THE OBLIGOR CONSISTS IN THE
OMISSION OF THAT DILIGENCE WHICH IS REQUIRED BY THE
NATURE OF THE OBLIGATION AND CORRESPONDS WITH THE
CIRCUMSTANCES OF THE PERSON, OF THE TIME AND OF THE
PLACE. WHEN NEGLIGENCE SHOWS BAD FAITH, THE PROVISIONS
OF ARTICLES 1171 AND 2201, PARAGRAPH 2, SHALL APPLY.
IF THE LAW OR CONTRACT DOES NOT STATE THE DILIGENCE
WHICH IS TO BE OBSERVED IN THE PERFORMANCE, THAT WHICH
IS EXPECTED OF A GOOD FATHER OF A FAMILY SHALL BE
REQUIRED.
- Article 2201 – refers contracts and quasi-contracts
- Debtor who acted in good faith and in bad faith
- Pag walang nakasulat sa contract standard diligence lang
need
GOOD FAITH
- State of mind denoting honesty
- Hindi nya alam na mali
- Hindi intention ng tao na makasakit ng kapwa nya
- Magbabayad ka na ng credit card, tas yung bill nyo
15,550, kaso Malabo mata mo naoverlook mo ung isang
5, ang binayad mo lang is 15,500 so kulang ng 50 kaya
considered ka to be in default by the credit card
company sinisingil ka ng finance charge. You are
considered a negligent debtor in good faith
BAD FAITH
- Imports a dishonest purpose or some moral obliquity or
or conscious doing of a wrong that partakes of the nature
of fraud
- Motivated by ill will
- Nagbebenta ka ng itlog tas alam mong luma na mga itlog
mo pero binenta mo parin at a regular price. Ikaw ay
isang negligent (badbitch) debtor in bad faith
General Rule: Diligence expected of a good father of a family
Exceptions: Law and Stipulation
ARTICLE 1174
EXCEPT IN CASES EXPRESSLY SPECIFIED BY THE LAW, OR WHEN IT
IS OTHERWISE DECLARED BY STIPULATION, OR WHEN THE
NATURE OF THE OBLIGATION REQUIRES THE ASSUMPTION OF
RISK, NO PERSON SHALL BE RESPONSIBLE FOR THOSE EVENTS
WHICH COULD NOT BE FORESEEN, OR WHICH, THOUGH
FORESEEN, WERE INEVITABLE.
- Unless the law clearly says otherwise or it's written in an
agreement, people won't be held responsible for things
that couldn't have been expected or that, even if
expected, were bound to happen due to the nature of
the situation.
 - Kunware bumili ka kotse sa dealership tapos sa Saturday
mo na makukuha kaya lang Sunday na wala pa tapos
bumagyo binaha yung sasakyan.
o Liable for obligation parin yung dealership kasi
kahit may fortuitous event, delayed sila eh.
FORTUITOUS EVENT
- Events that cannot be foreseen, or which, though
foreseen, is inevitable
ARTICLE 1175
USURIOUS TRANSACTIONS SHALL BE GOVERNED BY SPECIAL
LAWS.
- Usury is contracting for or receiving interest in excess of
the amount allowed by law for the loan or use of money,
goods, chattels or credits.
- Usury is now legally non-existent. Parties are now free to
stipulate any amount of interest. This is due to Central
Bank Circular No. 905 that took effect on January 1, 1983.
- It does not, however, give absolute right to the creditor
to charge the debtor interest that is “iniquitous or
unconscionable.” (wala nang limit sa interest ngayon
pero wag naman yung masyadong abusado)
- Court has the power to reduce interest rate if it is
shocking
- 5-6 scheme (u borrow 5k from the lender and u return
6k), interest is earned monthly (20% interest), it is a
usurious transaction because interest is exorbitant
USURIOUS
- Refers to practices or transactions involving excessively
high interest rates on loans or lending, often to the point
of being considered exploitative or unfair.
ARTICLE 1176
THE RECEIPT OF THE PRINCIPAL BY THE CREDITOR WITHOUT
RESERVATION WITH RESPECT TO THE INTEREST, SHALL GIVE RISE
TO THE PRESUMPTION THAT SAID INTEREST HAS BEEN PAID
THE RECEIPT OF A LATER INSTALLMENT OF A DEBT WITHOUT
RESERVATION AS TO PRIOR INSTALLMENTS, SHALL LIKEWISE
RAISE THE PRESUMPTION THAT SUCH INSTALLMENTS HAVE BEEN
PAID
- Disputable presumptions
- 2 kinds: Conclusive and Disputable
- 2ND PAR: there is a monthly amortization, the debtor paid
the 7th monthly amortization and the creditor accepted it
but did not react, dahil walang reaction it is presumed
that the debtor paid his previous installments (1-6), to be
disputed, the creditor could write a demand letter for the
debtor to pay the previous installments, if debtor denies
then creditor can challenge the debtor to present a proof
of payment, no proof = no payment of previous
installments
Presumptions on receipts of principal and installment payments
- The receipt of the principal without reservation as to
interest, shall give rise to the presumption that the
interest has been paid
- ex. Pinautang kita 1,000 ang usapan natin after one year
ay 100 so ang total na utang mo sakin is 1,100. Nung
bayaran na 1,000 lang yung inaabot mo. Ang tamang pag
resibo ay yung 100 ay bayad don sa interest at yung 900
ay bayad sa principal. Hindi mo pwedeng resibo na yung
1,000 lang (yung principal lang) dahil may nag-aarise na
isang presumption: na dahil ini-indicate mo na ang
payment, yung 1,000 ay para sa buong payment ng
principal, iniimply mo na bayad na yung interest, which in
reality hindi pa bayad interest. Logic states na una mo
dapat bayaran yung interest bago yung principal.
o Kung magresibo ka ng 1,000 na for principal
lang, ilagay mong “Received 1,000 for the
payment of principal but the interest is not yet
paid.” , para hindi mag-arise yung presumption
- The receipt of a later installment without reservation as
to prior installments, shall give rise to the presumption
that prior installments have been paid.
- ex. I have a boarding house, per room is 5,000 per
month. Yung isang nagdorm, tatlong buwan na hindi
nakapagbayad, January-March. Then nung nakasalubong
mo siya, nagbayad siya ng 5,000. Under the law, ang
pinaka tamang buwan para sa resibo ng 5,000 ay para sa
buwan ng January. Kasi kung ang nilagay mo na ang
bayad niya ay para sa February or March, it gives rise to
the presumption: na dahil nagreresibo ka na para sa
March, bayad na siya ng January at February.
o Kung gagawin mong for March yung bayad sa
resibo idagdag mo na January and February has
not yet been paid. Para hindi mag give rise sa
assumption na bayad na yung ibang buwan.
- The foregoing are mere disputable presumptions (not
conclusive) and the creditor may rebut such with clear
and convincing evidence to the contrary.
CONCLUSIVE PRESUMPTION
- Presumption remains regardless of your arguments
o Ignorance from law excuses no one (Article 3)
o As citizens, you are presumed to know the law
of the country , even foreigners
- When the presumption becomes irrebuttable upon the
presentation of the evidence and any evidence tending
to rebut the presumption is not admissible
- This means that in certain situations, once a presumption
is established and evidence is presented, any attempt to
challenge or dispute that presumption is not allowed,
and any counter-evidence that aims to challenge it
cannot be considered.
DISPUTABLE PRESUMPTION
- You can present arguments to rebut such presumption
(akala)
- Receipt of the principal in relation to the interest
o If debtor pays his loan and only pays the
principal, it is also presumed that he also paid
the interest
o May loan si trisha na 10000 kay lianne with
12% interest annum, nagbayad na trisha ng
10000 tas no reaction si lianne it is then
presumed that trisha already paid the interest
of the loan kasi di sya umimik pero pwede mag
rebut si lianne pero as soon as possible dapat di
ung paaabutin ng prescriptive period. Pwede si
lianne magwrite ng demand letter na di pa
 nagbayad ng interest si trisha tas pwede
maghingi ng proof of payment kung di sya
nakapag present disputed na
ARTICLE 1177
THE CREDITORS, AFTER HAVING PURSUED THE PROPERTY IN
POSSESSION OF THE DEBTOR TO SATISFY THEIR CLAIMS, MAY
EXERCISE ALL THE RIGHTS AND BRING ALL THE ACTIONS OF THE
LATTER FOR THE SAME PURPOSE, SAVE THOSE WHICH ARE
INHERENT IN HIS PERSON; THEY MAY ALSO IMPUGN THE ACTS
WHICH THE DEBTOR MAY HAVE DONE TO DEFRAUD THEM.
- Creditors can take over the debtor's rights and legal
actions related to recovering their money, except for
things specific to the debtor's personal self. They can also
challenge any tricky actions the debtor took to cheat
them.
- Refers to the remedies of the creditor
o Somebody obtained a loan from you, if the
debtor doesn’t pay you, there are 3 remedies:
 Exhaustion of property of the debtor
through levying attachment and
execution upon all the property of
the debtor except such are exempt
from execution
 ABC bank extended a 300 million
clean loan to XYZ corporation, clean
loan – unsecured and high risk, pag di
nagbayad wala kang pwede habulin
kasi clean loan pero pwede gawin
yung ay magpadue diligence remedy
sa bullet before to.
Different remedies of the creditor to enforce payment of his
claims against the debtor
Specific performance
- Exact fulfillment of the obligation by specific or substitute
performance with a right to damages in either case
- If may utang sayo yung isang tao, pwede ka mag-file ng
collection case at yung judge ang mag-uutos sa debtor na
magbayad ng utang niya sayo
Attachment
- Pursue the property in the possession of the debtor,
except those exempt by law Hihilain ng korte ang mga
ari-arian ng debtor, ibebenta para ikaw ay mabayaran
- Properties exempt by law: Family home unless ito yung
nakasangla, gamit sa paghahanapbuhay, clothing and
kailangan mag-iwan ng provision for at least 3 months.
Accion subrogatoria
- To be subrogated to all the rights and actions of the
debtor save those which are inherent in his person
- Si A may utang sayo, si B naman may utang kay A.
Pwedeng utusan na lang ng korte si B na direktang
magbayad sayo, this process is called process of
garnishment
Accion pauliana
- Remedy of last resort
- Asking the court to rescind or to impugn all the acts
which the debtor may done to defraud the creditors
- Minsan may loko-lokong debtors na, pinapasok sa sa
deed of sale yung properties nila para hindi mo ma-
attach or mahila. Pwede mo i-request sa korte na i-
impugn or i-cancel yung mga kontrata na pinasok nung
loko-lokong debtors sa ibang tao, para bumalik yung
ownership sa debtor at pwede mo na ma-attach.
Before using the remedy of accion pauliana, you need to exhaust
the three remedies first, making it your last resort, because in
accion pauliana, there is a third party affected.
RELATIVITY OF CONTRACTS
- A contract can only bind the parties who have entered
into it or their successors who have assumed their
personality or their juridical position and that, as a
consequence, such contract can neither favor nor
prejudice a third person.
- Ang pwede lang maapektuhan ng isang kontrata ay kung
sino lang mismo ang pumasok doon at yung successors
nila. Ang hahabulin lang nung kontrata ay kung sino ang
nakapirma.
- Hindi mo pwedeng manahin ang utang ng ibang tao.
Under the relativity of contracts, hindi mo dapat utang
yon. Lumalabas lang na utang ang minana mo dahil konti
na lang ang matitira sa assets niya pagkabayad sa mga
utang ng lolo mo.
o Bago makuha ng successors ang mana sa assets
ng lolo nila, kailangan bayaran muna yung
utang ng lolo noong buhay pa siya. Lahat ng
hindi mababayaran na liabilities ng lolo niya,
kailangan i-write off na ito ng creditors. Hindi
ka dapat habulin o hindi dapat maapektuhan
yung personal assets mo para pambayad sa
utang ng lolo mo.
o Yung ibang tao na binabayaran yung utang ng
kamag-anak nila, it is not a civil obligation but
more of a moral obligation.
EXCEPTIONS ARE INTRANSMISSIBLE RIGHTS AND OBLIGATIONS
- By their nature as when the special or personal
qualification of the obligor constitutes one of the
principal motives for the establishment of the contract
- By stipulation of the parties, as when the contract
expressly provides that the obligor shall perform an act
by himself and not through another
- By provision of law, as in the case of those arising from a
contract of partnership or of agency
o A, B and C ay partners sa isang partnership.
Namatay si A, hindi pwedeng successor yung
anak niya. Hindi transmissible ang karapatan
maging miyembro sa isang partnership dahil
ang isang partnership ay dapat may mutual
trust at confidence.
ARTICLE 1178
SUBJECT TO THE LAWS, ALL RIGHTS ACQUIRED IN VIRTUE OF AN
OBLIGATION ARE TRANSMISSIBLE, IF THERE HAS BEEN NO
STIPULATION TO THE CONTRARY
- If you have to do something because of an agreement,
like a promise or a contract, those things you're
 supposed to get can be given to someone else if the rules
allow it, unless the agreement says you can't.
General Rule: All rights acquired by virtue of an obligation are
transmissible. (the things you’re supposed to get can be given to
someone else if the rules allow it)
Exceptions:
1. When prohibited by law
- Contract of partnership (fiduciary), agency, and
commodatum
- Upon the death of the partner, contract will come to
dissolution
- Kunware may partnership kayo sa business tas namatay
ka, di mo pwede itransfer yung partnership sa anak mo
or asawa
- Sa agency need may consent
- Commodatum: pinahiram book ng oblicon sayo (not
consumable) so need mo isalo. Yung hiniram mong book
di mo pwedeng ipahiram sa iba except immediate family
members
2. When prohibited by stipulation of parties
ARTICLE 1179
EVERY OBLIGATION WHOSE PERFORMANCE DOES NOT DEPEND
UPON A FUTURE OR UNCERTAIN EVENT, OR UPON A PAST EVENT
UNKNOWN TO THE PARTIES, IS DEMANDABLE AT ONCE
EVERY OBLIGATION WHICH CONTAINS A RESOLUTORY
CONDITION SHALL ALSO BE DEMANDABLE, WITHOUT PREJUDICE
TO THE EFFECTS OF THE HAPPENING OF THE EVENT
- If you have to do something and it's not based on
something uncertain in the future or something that
already happened but you didn't know about, you have
to do it right away.
- Even if there's a condition that could end the obligation
(like "if this happens, then you don't have to do it
anymore"), you can still ask for it to be done, while
keeping in mind that if the condition happens, things
might change.
6 PRIMARY CLASSIFICATIONS OF OBLIGATION
PURE OBLIGATION
- Is one without a term or condition and is demandable
immediately. (no condition and date)
- “upon demand”
- This is an obligation that doesn't have any waiting time or
special conditions attached. You can ask for it to be
fulfilled right away.
- Article 1179. Every obligation whose performance does
not depend upon a future or uncertain event, or upon a
past event unknown to the parties, is demandable at
once.
o Ex. Sabi ko sayo, “Bibigyan kita ng ₱20,000.” Ito
ay isang pure obligation, walang kasunod na
condition, walang hinihintay na period of time
na dumaan muna.
o Kailan mo ko pwedeng hingan ng ₱20,000?
IMMEDIATELY DEMANDABLE
CONDITIONAL OBLIGATION
- An obligation where its demadability or creation depends
on the fulfillment of a condition
- Depende sa condition
- Must be future and uncertain, past but unknown and
must not be impossible
- Death is a period not a condition kasi lahat tyo
mamamatay kaya certain
- Pwede mag give rise sa obligation or existing obligation
ay mawala
Classifications of Conditions:
A condition must be both a future and uncertain event.
(If it is a future but certain event, it is not a condition but is called a
period)
- Suspensive - a condition where the happening of which
will give rise to the obligation, also known as condition
antecedent or condition precedent.
o Condition na kapag nangyari na yung bagay na
yon (yung condition na yon), doon pa lang
magkakaroon ng obligation yung nangako
o Ex.: “I will give you ₱20,000 kapag pumasa ka
sa paparating na CPA na Board Exam.” Ang
tawag sa condition ay suspensive condition
dahil yung obligation sayo na bibigyan ng
₱20,000 ay nakadepende pa kung matutupad
mo yung condition.
o Kailan lang ako magkaroon ng obligation na
magbigay ng ₱20,000? KAPAG NAPASA MO NA
YUNG PAPARATING NA BOARD EXAM. pag
hindi ka pumasa, walang obligation na
magbigay ng ₱20,000
o Kapag nangyari o natupad yung condition,
doon pa lang magkaroon ng obligation
- Resolutory - a condition where the happening of which
extinguishes the obligation, also known as condition
subsequent. The obligation is demandable immediately
but shall be extinguished upon the happening of the
Resolutory condition.
o Kabaliktaran ng suspensive condition
o Kapag natupad na yung Resolutory condition,
titigil na yung obligation ko sayo
o Ex.: “Anak, bibigyan kita ng sustento every
month hangga’t hindi ka pa nakapagtatapos ng
college.” Tawag dito ay Resolutory condition
dahil nakadepende na kung titigil yung
obligation ko sayo kung ikaw ay makakatapos
ng college. Kung hindi man makakatapos ng
college, hindi titigil yung obligation ko na
magbigay ng allowance every month.
o Kailan mo ko pwede kulitin tungkol don sa
allowance? AGAD-AGAD. (Demandable
immediately)
o Pag nangyari na yung condition, titigil na yung
obligation.
- Potestative - a condition that depends upon the will of
one of the contracting parties
o Either will ng debtor or will ng creditor
o Article 1182. When the fulfillment of the
condition depends upon the sole will of the
debtor, the conditional obligation shall be void.
o Ex.: “Bibigyan kita ng ₱20,000 kapag gusto ko
na.” Ako yung magbibigay/ debtor, ikaw yung
 tatanggap/creditor, pero yung condition ay
nakadepende sa will ko.
o This is called a Purely Potestative Condition,
dahil nakadepende sa will ng debtor, which is
considered void. Void dahil possible na hindi
magkatotoo ang condition, dahil puwedeng
gumawa ng paraan si debtor na hindi
magkatotoo yung condition para hindi
magkaroon ng obligation. May risk na pwedeng
hindi mag-arise yung obligation dahil
nakadepende sa debtor.
o Allowed pag yung condition nakadepende sa
will ng creditor
 Ex.: “Bibigyan kita ng ₱20,000 kapag
gusto mo na.” Kapag sinabi mong
gusto mo na, mag aarise na yung
obligation ng debtor.
- Casual - a condition that depends upon chance or upon
the will of a third person
o Ex.: “Bibigyan kita ng ₱20,000 kapag nag-
champion sa NBA ang Los Angeles Lakers.”
Nakadepende upon chance, walang assurance
na sila ang magiging champion.
o Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka
ng nililigawan mo.” Nakadepende sa will ng
nililigawan mo, kapag sinagot ka na, mag aarise
na yung obligation na bigyan ka ng ₱20,000.
- Mixed - a condition that depends partly upon the will of
one of the parties and partly upon the will of a third
person.
o Ex.: “Bibigyan kita ng ₱20,000 kapag nag-apply
ka sa SGV at natanggap ka.” Dalawa yung
condition, nakadepende sayo kung mag-apply
ka at nakadepende sa HR ng SGV kung
tatangapin ka.
- Possible - one that is capable of fulfillment by nature or
law
o Ex.: “Bibigyan kita ng ₱20,000 kapag natapos
mong basahin yung libro ni Atty. De Leon na
Oblicon.” Possible mo makuha kapag natapos
mo na, medyo mahirap pero possible.
- Impossible - one that is not capable of fulfillment in its
nature, or impossible in law; the effect would be to
nullify both the condition and the obligation.
o Imposibleng gawin o bawal sa batas
o impossible by nature: “Bibigyan kita ng ₱20,000
kapag nakapag-dunk ka mula sa half court
line.” Walang bisa ang ganitong condition dahil
parang sinabi mo na rin na hindi ka
makakapagbigay dahil hindi naman talaga
kakayanin.
o impossible by law: “Bibigyan kita ng ₱20,000
kung papatayin mo yung kaaway ko.” Possible
pero sa mata ng batas impossible o mali kaya
considered na null o void.
- Positive - a condition that is supposed to happen or
occur or something that must be done
o Ex.: “Bibigyan kita ng ₱20,000 kapag nilinis mo
ang kwarto mo.” Kailangan mong gawin ●
Negative - a condition characterized by an
event not supposed to happen or something
that must not be done.
○ Ex.”Bibigyan kita ng ₱20,000 kapag hindi ka
muna lalabas ng bahay ngayong weekend.”
Something negative: hindi mo dapat gawin.
Hindi ka dapat lumabas ng bahay, pag natupad
mo yung condition, mag-arise na yung
obligation ko na magbigay
ARTICLE 1180
WHEN THE DEBTOR BINDS HIMSELF TO PAY FORMS OF PROMISE
OR COMMITMENT, THE OBLIGATION IS DEEMED WITH A PERIOD
OR TERM. THE MOMENT OF PAYMENT IS DEPENDENT UPON THE
WILL OF THE DEBTOR.
- Pag sinabi ng debtor na magbabayad siya ng kanyang
utang when his means permit him to do so, hindi ito
considered a condition, but a period
- Terms for when his means permit him to do so: Little by
little, as soon as possible, from time to time, at any time I
have the money
- Ex.: “I will pay you ₱5,000 when my means permit me to
do so.” Babayaran kita kapag kaya ko na
o one with a period kasi isa siyang future and
certain event
o magkaiba yung kapag gusto ko na (purely
potestative - void because it depends on the
will of the debtor) sa kapag kaya ko na (hindi
pwedeng never niya kakayanin ng debtor, hindi
physically possible na mangyari na never niyang
kayanin kasi ang isang tao hanggang siya ay
nabubuhay, meron siyang pag-asa na kayanin
mabayaran ang utang)
EXCEPTION:
1. When prohibited by law
2. When prohibited by stipulation of parties
PERIOD
- A time of definite length
- Definite, having distinct or certain limits; determinate in
extent of character; limited; fixed – as definite period
ARTICLE 1181
IN CONDITIONAL OBLIGATIONS, THE ACQUISITION OF RIGHTS , AS
WELL AS THE EXTINGUISHMENT OR LOSS OF THOSE ALREADY
ACQUIRED, SHALL DEPENDS UPON THE HAPPENING OF THE
EVENT WHICH CONSTITUTES THE CONDITION.
- If obligations are conditional, getting or losing rights
depends on the event that the condition is about.
SUSPENSIVE CONDITION
- Will give rise to an obligation
RESOLUTORY CONDITION
- Will extinguish the obligation
On January 15, 2004, Mr. X sold his property to Pandayan Inc. The
sale agreement stated that if the buyer couldn't get the property
rezoned, the sale would be canceled, and both parties would
return to their original state.
Later, after the buyer had the property, their rezoning request was
denied. So, the property sale had to be reversed, and the money
paid to Pandayan Inc. had to be returned.
ARTICLE 1182
WHEN THE FULFILLMENT OF THE CONDITION DEPENDS UPON THE
SOLVE WILL OF THE DEBTOR, THE CONDITIONAL OBLIGATIONS
SHALL BE VOID. IF IT DEPENDS UPON CHANCE OR UPON THE WILL
OF A THIRD PARTY, THE OBLIGATIONS SHALL TAKE EFFECT IN
CONFORMITY WITH THE PROVISION OF THIS CODE.
- If a condition's fulfillment relies on the debtor's own
choice, the conditional obligations are not valid.
However, if it's based on luck or the decision of a third
party, the obligations will be carried out according to the
rules laid out in this code.
POTESTATIVE CONDITION
- One depends upon the will of one of the contracting
parties
- Power in which one of the party realize or prevent
- If fulfillment depends exclusively upon the will of the
debtor, the conditional obligation shall be void vice versa
- Let's say there's a contract where Company A agrees to
pay Company B a certain amount of money if Company
A's CEO decides to do so. If the fulfillment of the
condition depends solely on the CEO's choice without
any objective criteria, it's a potestative condition and the
contract might be deemed void.
PURELY POTESTATIVE CONDITION
- Ex.: “Bibigyan kita ng ₱20,000 kapag gusto ko na.” Ako
yung magbibigay/debtor, ikaw yung tatanggap/creditor,
pero yung condition ay nakadepende sa will ko.
- This is called a Purely Potestative Condition, dahil
nakadepende sa will ng debtor, which is considered void.
Void dahil possible na hindi magkatotoo ang condition,
dahil puwedeng gumawa ng paraan si debtor na hindi
magkatotoo yung condition para hindi magkaroon ng
obligation. May risk na pwedeng hindi mag-arise yung
obligation dahil nakadepende sa debtor.
- Ex.: “Bibigyan kita ng ₱20,000 kapag gusto mo na.” Kapag
sinabi mong gusto mo na, mag aarise na yung obligation
ng debtor.
CASUAL
- A condition that depends upon chance or upon the will of
a third person
- Ex.: “Bibigyan kita ng ₱20,000 kapag nag-champion sa
NBA ang Los Angeles Lakers.” Nakadepende upon
chance, walang assurance na sila ang magiging
champion.
- Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka ng
nililigawan mo.” Nakadepende sa will ng nililigawan mo,
kapag sinagot ka na, mag aarise na yung obligation na
bigyan ka ng ₱20,000.
MIXED
- A condition that depends partly upon the will of one of
the parties and partly upon the will of a third person.
- Ex.: “Bibigyan kita ng ₱20,000 kapag nag-apply ka sa SGV
at natanggap ka.” Dalawa yung condition, nakadepende
sayo kung mag-apply ka at nakadepende sa HR ng SGV
kung tatangapin ka.
POSSIBLE
- One that is capable of fulfillment by nature or law
- Ex.: “Bibigyan kita ng ₱20,000 kapag natapos mong
basahin yung libro ni Atty. De Leon na Oblicon.” Possible
mo makuha kapag natapos mo na, medyo mahirap pero
possible.
IMPOSSIBLE
- One that is not capable of fulfillment in its nature, or
impossible in law; the effect would be to nullify both the
condition and the obligation.
- Imposibleng gawin o bawal sa batas
- impossible by nature: “Bibigyan kita ng ₱20,000 kapag
nakapag-dunk ka mula sa half court line.” Walang bisa
ang ganitong condition dahil parang sinabi mo na rin na
hindi ka makakapagbigay dahil hindi naman talaga
kakayanin.
- Impossible by law: “Bibigyan kita ng ₱20,000 kung
papatayin mo yung kaaway ko.”
- Possible pero sa mata ng batas impossible o mali kaya
considered na null o void.
POSITIVE
- A condition that is supposed to happen or occur or
something that must be done
- Ex.: “Bibigyan kita ng ₱20,000 kapag nilinis mo ang
kwarto mo.” Kailangan mong gawin
NEGATIVE
- A condition characterized by an event not supposed to
happen or something that must not be done.
o Ex.”Bibigyan kita ng ₱20,000 kapag hindi ka
muna lalabas ng bahay ngayong weekend.”
- Something negative: hindi mo dapat gawin. Hindi ka
dapat lumabas ng bahay, pag natupad mo yung
condition, mag-arise na yung obligation ko na magbigay
ARTICLE 1183
IMPOSSIBLE CONDITIONS, THOSE CONTRARY TO GOOD CUSTOMS
OR PUBLIC POLICY AND THOSE PROHIBITED BY LAW SHALL
ANNUL THE OBLIGATION WHICH DEPENDS UPON THEM. IF THE
OBLIGATION IS DIVISIBLE, THAT PART THEREOF WHICH IS NOT
AFFECTED BY THE IMPOSSIBLE OR UNLAWFUL CONDITION SHALL
BE VALID.
THE CONDITION NOT TO DO AN IMPOSSIBLE THING SHALL BE
CONSIDERED AS NOT HAVING BEEN AGREED UPON.
- If the condition is impossible, goes against what's right,
or breaks the law, any obligation connected to it
becomes invalid. But if the obligation can be split, the
part that's not affected stays valid.
 - If a condition is about not doing something impossible,
it's like it was never agreed upon.
KINDS OF IMPOSSIBLE CONDITIONS
PHYSICAL IMPOSSIBLE CONDITION
- Contrary to the law of nature
- Trisha will give Yanna a gold necklace if she swims across
the Pacific Ocean.
LEGAL IMPOSSIBLE CONDITION
- Conditions contrary to the law, morals, good customs,
public order, or public policy.
- If a contract offers a reward for carrying out an illegal
action, like smuggling, the condition becomes legally
impossible due to its conflict with the law and societal
norms.
General Rule: Impossible conditions annul to the obligation which
depends upon them. Consequently, both the condition and the
obligation are void.
Exception:
1. In divisible obligation that part thereof which is not
affected by the impossible or unlawful condition shall be
valid.
2. If the condition is negative (not to do an impossible
thing), it shall be considered as not having been agreed
upon. Thus, the obligation is pure and valid.
- Considered as not written
- Condition has no effect, seen as straightforward
and unconditional
- Trisha promised to pay 10,000 if Yanna will not
assemble a flying chair.
3. If the obligation is pre-existing and not depending on the
fulfillment of the impossible condition for its existence,
only the condition is void.
DIVISIBLE OBLIGATION
- Those which have as their subject a prestation which is
susceptible of partial performance without the essence
of the obligation being changed.
- Task can be partially done without changing the main
obligation's essence
ARTICLE 1184
THE CONDITION THAT SOME EVENT HAPPEN AT A DETERMINATE
TIME SHALL EXTINGUISH THE OBLIGATION AS SOON AS THE TIME
EXPIRES OR IF IT HAS BECOME INDUBITABLE THAT THE EVENT
WILL NOT TAKE PLACE.
- States that if a condition is tied to a specific time, the
obligation will end either when that time is reached or if
it becomes certain that the event won't happen
Example:
1. Yanna promised to give Trisha a parcel of land if Trisha
will marry her daughter, Lianne, this year. If Lianne died
or married someone else, or Trisha has not still married
Lianne within the said year, the obligation of Yanna to
give is extinguished.
When No Period is Stipulated – the rule in second
paragraph of Article 1185 is applicable.
2. Yanna promised to give Trisha a parcel of land if Trisha
will marry her daughter Lianne. If Lianne died or married
someone else, the obligation of Yanna to give is
extinguished.
ARTICLE 1185
THE CONDITION THAT SOME EVENT WILL NOT HAPPEN AT A
DETERMINATE TIME SHALL RENDER THE OBLIGATION EFFECTIVE
FROM THE MOMENT THE TIME INDICATED HAS ELAPSED, OR IF IT
HAS BECOME EVIDENT THAT THE EVENT CANNOT OCCUR.
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.
- Explains that if a condition is about an event not
happening at a specific time, the obligation starts as soon
as that time passes or if it's clear the event won't occur.
- If no specific time is set, the condition is considered met
at the time that was likely intended, taking into account
the nature of the obligation
The condition that some even will not happen at a determinate
time will make the obligation effective when:
a. The determinate time has elapsed without the event
having occured;
- Illustration: Jun obligated himself to deliver a piece of
land to Mario on the condition that Mario shall not run
for Vice-Mayor in their municipality within 9 years.
- More than 9 years had elapsed without Mario running
for Vice-Mayor. The obligation to deliver the piece of
land becomes effective.
b. It has become evident that the event will not occur.
- Illustration: Jun obligated himself to deliver a piece of
land to Mario on the condition that Mario shall not run
for Vice-Mayor in their municipality within 9 years.
- Before 9 years had elapsed, the Municipality became
totally submerged by lahar and ceased to be a
municipality. The residents had to transfer to other
municipalities. In this case, even before the lapse of 9
years it is clear that the obligation has become effective
because of the disappearance of the Municipality. It is
not evident that Mario can never run for Vice-Mayor
anymore in that Municipality because it ceased to be
one.
ARTICLE 1186
THE CONDITION SHALL BE DEEMED FULFILLED WHEN OBLIGOR
VOLUNTARILY PREVENTS ITS FULFILLMENT.
- States that if the person obligated intentionally prevents
the condition from being fulfilled, the condition is
considered met.
REQUISITES:
1. There is intent on the part of the obligor to prevent the
happening of the condition
- Trisha promises to pay Lianne $100 if they don't eat any
dessert for a month. Trisha intentionally tries to tempt
Lianne with sweets throughout the month to prevent
them from fulfilling the condition.
2. The obligor actually prevents its fulfillment.
- In a business deal, a company agrees to supply goods to
another company only if they pay a certain amount
upfront. However, the first company deliberately fails to
deliver the goods despite receiving the payment,
effectively preventing the fulfillment of the condition.
ARTICLE 1187
THE EFFECTS OF A CONDITIONAL OBLIGATION TO GIVE, ONCE THE
CONDITION HAS BEEN FULFILLED, SHALL RETROACT TO THE DAY
OF THE CONSTITUTION OF THE OBLIGATION. NEVERTHELESS,
WHEN THE OBLIGATION IMPOSES RECIPROCAL PRESTATIONS
UPON THE PARTIES, THE FRUITS AND INTERESTS DURING THE
PENDENCY OF THE CONDITION SHALL BE DEEMED TO HAVE BEEN
MUTUALLY COMPENSATED. IF THE OBLIGATION IS UNILATERAL,
THE DEBTOR SHALL APPROPRIATE THE FRUITS AND INTERESTS
RECEIVED, UNLESS FROM THE NATURE AND CIRCUMSTANCES OF
THE OBLIGATION IT SHOULD BE INFERRED THAT THE INTENTION
OF THE PERSON CONSTITUTING THE SAME WAS DIFFERENT.
IN OBLIGATIONS TO DO AND NOT TO DO, THE COURTS SHALL
DETERMINE, IN EACH CASE, THE RETROACTIVE EFFECT OF THE
CONDITION THAT HAS BEEN COMPLIED WITH.
- When a conditional obligation to give is fulfilled, its
effects go back to when the obligation was created.
- If both parties have obligations, benefits during the
condition balance out.
- If it's one-sided, the debtor keeps what they gained,
unless the obligation's nature suggests otherwise.
- For obligations to do or not do, the courts decide the
retroactive impact of the fulfilled condition.
Principle of retroactivity in suspensive condition
- It is limited only to the effects of the obligation
IN OBLIGATION TO GIVE
- Ince the condition has been fulfilled, it shall retroact to
the day of the constitution of the obligation. The
condition is only an accidental element of a contract.
Hence, the obligation is still valid even in the absence of
such condition.
- On Jan 2, 2020, Lianne obliges herself to give her only car
to Trisha if she will pass her May 2020 board exams.
Subsequently, Trisha passed the said board exam. By
operation of law, as if Trisha owns the car beginning Jan
2, 2020
ACCIDENTAL ELEMENTS OF A CONTRACT
- Those which exist only when the parties expressly
provide them for the purpose of limiting or modifying the
normal effects of the contract
- Conditions, terms, and modes
IN OBLIGATION TO DO OR NOT TO DO (Personal Obligation)
- Court is powered to determine retroactive effect of the
suspensive condition that has been complied with
- This rule is also applicable to obligation to do or not to do
with resolutory condition in accordance with Art. 1190
RETROACTIVE EFFECT AS TO THE FRUITS AND INTERESTS ON
OBLIGATION TO GIVE
1. In Reciprocal Obligation
- There is no retroactive effect. The fruits and interests
during the pendency of the condition shall be deemed to
have been mutually compensated.
- No backward effect
- The fruits and interests during the time the condition is
pending are seen as having balanced out between the
parties.
UNILATERAL OBLIGATION
- There is no retroactive effect. The debtor shall
appropriate the fruits and interests received, unless from
the nature and circumstances of the obligation it should
be inferred that the intention of the person constituting
the same was different.
- Usually gratuitous
- This type of obligation is typically given without any
expectation of receiving something in return and is often
gratuitous in nature.
- If Sarah promises to donate $100 to a charity if they
reach a certain fundraising goal, and the goal is met,
Sarah is obligated to give the money. Since this is a
unilateral obligation, there's no retroactive effect. If
Sarah had already received any benefits, like recognition
for her promise, she gets to keep those unless it's clear
from the situation that she intended otherwise. Such
obligations are often acts of generosity without the
expectation of receiving something in return.
ARTICLE 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 HAS PAID BY MISTAKE IN CASE OF
SUSPENSIVE CONDITION.
- States that before the condition is fulfilled, the creditor
has the right to take legal actions to protect their rights.
If the condition is suspensive (waiting for a future event),
the debtor can ask for a refund of any payments made by
mistake during that waiting period.