COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)

CHAPTER 1: GENERAL PROVISIONS

To simplify:
ART. 1156. An obligation is a juridical necessity to  must be complied with in good faith
give, to do or not to do.  it is the “law” between parties;
 neither the party may unilaterally evade his obligation in
the contract, unless
CHAPTER 1 – GENERAL PROVISIONS a. contract authorizes it
b. other party assents
ELEMENTS OF AN OBLIGATION  parties may freely enter into any stipulations provided they are
not contrary to law, morals, good customs, public order or
1. Active subject (obligee/creditor) public policy.
 one in whose favor the obligation is constituted
2. Passive subject (obligor/debtor) QUASI-CONTRACTS (ART. 1160)
 One who has the duty of giving, doing, or not doing  Obligations derived from quasi-contracts shall be subject to
3. Object (prestation) the provisions of Chapter 1, Title XVII, of Book IV of the Civil
 The conduct which has to be observed by the Code.
debtor/obligor
4. Juridical or Legal Tie  CONSENT: Unlike contracts where there is a meeting of the
 Binds or connects the parties of the obligation. minds, in quasi-contracts, there is no consent but the same
is supplied by fiction law. In other words, the law considers the
REQUISITES: parties as having entered into a contract, although they have
no actually done so, and irrespective of their intention, to
1. It must be licit (otherwise it is void) prevent injustice or the unjust enrichment of a person at the
2. It must be possible, physically and juridically (otherwise it expense of another.
is void)
3. It must be determinate or determinable (otherwise it is To simplify:
void) o Juridical relation resulting from lawful, voluntary
4. It must have pecuniary value and unilateral acts, which has for its purpose, the
payment of indemnity to the end that no one shall be
SOURCES OF OBLIGATION unjustly enriched or benefited at the expense of
another.
The following are the sources of obligations:
1. Law o Distinguished from other Sources:
2. Contracts 1. Act giving rise to a quasi-contract must be
3. Quasi-Contracts LAWFUL distinguishing it from delict
4. Acts or omissions punished by law 2. Act must be VOLUNTARY distinguished it from
5. Quasi-delicts contract which is based on agreement.
3. Act must be UNILATERAL distinguishing it from
LAW contract which is based on agreement.
 Obligations derived from law are not presumed. Only those
expressly determined in this Code or in special laws are KINDS OF QUASI-CONTRACTS
demandable, and shall be regulated by the precepts of the law
which establishes them; and as to what has not been 1. Nominate – those which have been given a
foreseen, by the provisions of Book IV of the Civil Code. particular name. There are 2 nominate quasi-
(Article 1158, Ibid.) contracts Under the Civil Code, there are two
Nominate quasi-contracts. These are negotiorum
To simplify: It must be expressly or impliedly set forth and gestio and solutio indebiti.
cannot be presumed
2. Those which have not been given a particular name
CONTRACT and not regulated by special provisions of the law.
 Obligations arising from contracts have the force of law These are regulated by Arts. 2164 to 2175 of the
between the contracting parties and should be complied with NCC.
in good faith. (Article 1159, Ibid.)
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
NEGOTIORUM GESTIO – MANAGEMENT OF BUSINESS
 unauthorized management; refers to the juridical relation
which arises whenever a person voluntarily takes charge of
the agency or management of another’s abandoned business
or property without the latter’s authority. He is obliged to
continue the same until the termination of the affair and its
incidents, or to require the person concerned to substitute him,
if the owner is in a position to do so (Art. 2144)
ELEMENTS OF NEGOTIORUM GESTIO
1. The gestor must voluntarily assume the agency or
management of the business or property of another.
2. The business or property must be either neglected or
abandoned.
3. The agency or management must not be authorized by the
owner either expressly or impliedly.
4. The assumption of the agency or management must be made
in good faith.
NO NEGOTIORUM GESTIO
This juridical relation does not arise in either of these instances:
a) When the property or business is not neglected or
abandoned, in which case the provisions of the Civil Code
regarding unauthorized contracts shall govern
b) If, in fact, the manager has been tacitly authorized by the
owner, in which case the rules on agency shall govern.
(Art. 2144.)
EXAMPLE:
 In fear of reprisals from lawless elements besieging his
barangay, X abandoned his fishpond, fled to Manila and left
for Europe. Seeking that the fish in the fishpond were ready
for harvest, Y, who is in the business of managing fishponds
on a commission basis, took possession of the property,
harvested the fish and sold the entire harvest to Z.
Thereafter, Y borrowed money from W and used the money
to buy new supplies of fish fry and to prepare the fishpond for
the next crop.
a. What is the Juridical relation between X and Y during
X's absence?
o The juridical relation is that of the quasi-contract of
"negotiorum gestio". Y is the gestor or officious
manager and X is the owner (Art.2144, Civil Code)
b. Upon the return of X to the barangay, what are the
obligations of Y to X as regards the contract with Z?
o Y must render an account of his operations and
deliver to X the price he received for the sale of the
harvested fish (Art, 2145, Civil Code).
c. Upon X's return, what are the obligations of X as
regards Y's contract with W?
o X must pay the loan obtained by Y from W because
X must answer for obligations contracted with third
persons in the interest of the owner (Art. 2150, Civil
Code)
d. What legal effects will result if X expressly ratifies Y's
management and what would
be the obligations of X in favor of Y? Explain all your
answers. (1992)
o Express ratification by X provides the effects of an
express agency and X is liable to pay the
commissions habitually received by the gestor as
manager (Art. 2149, Civil Code
SOLUTIO INDEBITI
 is the juridical relation which is created when something is
received when there is no right to demand it and it was unduly
delivered through mistake. (Art. 2154.) The obligation to pay
money mistakenly paid arises from the moment said payment
was made, and not from the time the payee admits the
obligation to reimburse.
REQUISITES FOR SOLUTIO INDEBITI
1. There must be a payment for the delivery made by one
person to another;
2. The person who made the payment or delivery was
under no obligation to do so;
3. The payment or delivery was made by reason of a
mistake
SOLUTIO INDEBITI ELEMENTS:
Solutio indebiti applies where:
a. payment is made when there exists no binding relation
between the payor, who has no duty to pay, and the
person who received the payment; and
b. the payment is made through mistake and not through
liberality or some other cause.
 Payment by reason of a mistake in the construction or
application of a doubtful or difficult question of law may come
within the scope solutio indebiti (Art. 2155, CC)
 Whoever in bad faith accepts an undue payment, shall pay
legal interest if a sum of money is involved, or shall be liable
for fruits received or which should have been received if the
thing produces fruits. He shall furthermore be answerable for
any loss or impairment of the thing from any cause, and for
damages to the person who delivered the thing, until it is
recovered. (Art. 2159, CC)
 He who in good faith accepts an undue payment of a thing
certain and determinate shall only be responsible for the
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
impairment or loss of the same or its accessories and refused and the Bank sued him. Is the Bank entitled to recover
accessions insofar as he has thereby been benefited. If he from D?
has alienated it, he shall return the price or assign the action
ANSWER:
to collect the sum. (Art. 2160, CC)
 Yes, the Bank is entitled to recover the $4,500 from D. We
have in this case an example of a quasi-contract of solutio
EXAMPLE: indebiti which arises whenever a person unduly delivers a
 If I let a storekeeper change my P50.00 bill and by error he thing through mistake to another who has no right to demand
gives me P50.60, I have the duty to return the extra P0.60. it. Its requisite are:
(See Art. 2154, Civil Code).
1. There must be a payment or delivery made by one person
to another;
EXAMPLE: (PROBLEM-SOLVING)
2. The person who made the payment or delivery was under
 C, a Filipino resident of the US sent to his father D in Manila no obligation to do so;
$500 through X Bank. Due to mistake of the employees of the 3. The payment or delivery was made by reason of a
Bank, D was paid $5,000 instead. Upon discovery of the mistake.
mistake, the Bank demanded from D the return of $4,500. D

NATURE AND EFFECTS OF OBLIGATION

Art. 1163. Every person obliged to give something

is also obliged to take care of it with the proper
diligence of a good father of a family, unless the
law or the stipulation of the parties requires
another standard of care.

 SPECIFIC/ DETERMINATIVE THING

o A thing is determinative when it is particularly
designated or physically segregated from all others
of the same class (Art. 1460, NCC)

 GENERIC/ INDETERMINATE THING

o A thing is generic or indeterminative when it refers
only to a class or genus to which it pertains and
cannot be pointed out with particularity

SPECIFIC VS. GENERIC

SPECIFIC THING
Identified by its individuality.
The debtor cannot
substitute it with another
although the
latter is of the same kind
and quality without the
consent of the creditor.
GENERIC THING
Identified
only by its specie. The
debtor can give anything of
the
same class as long as it is
of the same kind.

DUTIES OF A DEBTOR IN OBLIGATIONS TO GIVE A

DETERMINATIVE THING:
1. Preserve or take care of the thing (1163)
2. Deliver the fruits of the thing (1164)
3. Deliver the accessions and accessories of the thing
(1166)
4. Deliver the thing itself (1163)
5. Answer for damages in case of non-fulfillment or breach
(1170)
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
DUTIES OF DEBTOR IN OBLIGATION GIVE A GENERIC
THING:
1. To deliver a thing. Which is of the quality intended by the
parties taking into consideration the purpose of the
obligation and other circumstances; and
2. To be liable for damages in case of fraud, negligence, or
delay, in the performance of his obligation, or
contravention of the tenor thereof.
EXAMPLES:
SPECIFIC THING
 Toyota car with Plate No. AAV 316.
GENERIC THING
 Toyota Car
ANOTHER EXAMPLE:
 If S obligation is to deliver B a Bulova calendar watch, S can
deliver any watch as long as it is Bulova with calendar.
 But if S obligation is to deliver to B a particular watch, the one
S is wearing, S cannot substitute it with another watch without
B’S consent nor can B require S to deliver another watch
without S’s consent although it might be the same kind and
value.
DILIGENCE
 Duty to Exercise Diligence 1163 deals with the First effect of
an obligation to deliver a determinate thing (as distinguished
from a generic thing – or one of a class) – namely- the duty to
exercise proper diligence. Unless diligence is exercised, there
is a danger that the property would be lost or destroyed, thus
rendering illusory the obligation.
DILIGENCE NEEDED
a. That which is required by the nature of the obligation and
corresponds with the circumstances of person, time, and
place. (Art.1173 NCC). This is really diligence of a good father
of a family.
b. However, if the law or contract provides for a different standard
of care, said law or stipulation must prevail (Art. 1163, NCC)
An example of this would be the care required of common
carriers “extraordinary diligence”. It is contrary to public policy
to stipulate for absolute exemption from liability for the obligor
for any fault or negligence on his part.
 FACTORS TO BE CONSIDERED
o It is not necessarily the standard of care one always
uses in the protection of his property. In general, the
debtor is not liable if his failure to preserve the thing
is not due to his fault or negligence but to fortuitous
events or force majeure.
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.
(1095)
TYPES OF FRUITS
1. Natural Fruits - The spontaneous products of the soil and
the young and other products of animals.
a. Ex. Grass, trees, plants on land produced without
human intervention.
2. Industrial Fruits - Those produced by lands of any kind
through cultivation or labor.
b. Ex. Sugar cane, veggies, and all products
3. Civil Fruits - Those derived by virtue of a juridical
relation.
c. Ex. Rents of buildings, price of leases of lands other
property and the amount of perpetual or life annuities
or other similar income.
When does the obligation to deliver the thing and the fruits
arise?
 It depends on the nature of the obligation itself. In case
obligations arising from the law, quasi-contracts, criminal
offenses, and quasi-delicts, the obligation to deliver arises
from the time designated by the provisions of the Civil Code
or of special laws creating or regulating them.
 In case of obligations arising from contracts, the obligation to
deliver arises, as a general rule, from the moment of the
perfection of the contract. The basis of this rule can be found
in Art. 1537 if the Civil code which states that the vendor is
bound to deliver the thing sold and its accessions and
accessories in the condition in which they were upon the
perfection of the contract. In summary, the obligor or debtor
is bound to deliver the thing which is the object of the
obligation as well as the fruits thereof from the moment the
contract is perfected.
SUSPENSIVE CONDITION
c. A suspensive condition: one that makes the effectiveness of
a contract and the enforceability of the obligations arising from
it depending on a future and uncertain event as to the day, so
that its full legal effects do not occur until the same is fulfilled.
d. If there is a suspensive condition agreed upon, the obligation
to deliver the thing as well as the fruits shall arise only from
the moment of the fulfillment of the condition, and if it is subject
to a suspensive term or period the obligation to deliver arises
only upon the expiration of the designated term or period.
CONTRACTS OF SALE
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
e. The obligation arises from the perfection of the contract even
if the obligation is subject to a suspensive condition or a
suspensive period where the price has been paid.
Right of Creditor to the Fruits
 The creditor is entitled to the fruits of the thing to be delivered
from the time the obligation to make delivery arises.
 The intention of the law is to protect the interest of the obligee
should the obligor commit delay, purposely or otherwise, in
the fulfillment of his obligation.
KINDS OF DELIVERY
 Actual Delivery - where physically, the property changes
hands.
 Constructive Delivery - where physical transfer is implied.
This may be done by:
a. Traditio Symbolica (Symbolical Tradition) – as when the
keys of a bodega are given.
b. Traditio Longa Manu - delivery by mere consent or the
pointing out of the object. Etymologically, “the extending
of the hand.”
a. Ex. Pointing out the car, which is the object of the
sale.
c. Traditio Brevi Manu - delivery by the short hand; that
kind of delivery whereby a possessor of a thing not as an
owner, becomes the possessor as owner
b. Ex. when a tenant already in possession buys the
house he is renting
d. Traditio Constitutum Possessorium - the opposite of
brevi manu; thus, the delivery whereby a possessor of a
thing as an owner, retains possession no longer as an
owner, but in some other capacity (like a house owner,
who sells a house, but remains in possession as tenant of
the same house).
e. Tradition by the execution of Legal Forms and
Solemnities (like the execution of a public instrument
selling land).
Ownership Acquired by Delivery
 Ownership and other real rights over property are acquired
and transmitted by law, by donation, by testate and intestate
succession, and in consequence of certain contracts by
tradition (Art. 712.) or delivery. Delivery in sale may be actual
or real, constructive or legal, or in any other manner signifying
an agreement that the possession of the thing sold is
transferred from the vendor to the vendee. 3 (see Arts. 1496-
1501.)
 The meaning of the phrase “he shall acquire no real right over
it until the same has been delivered to him,” is that the creditor
does not become the owner until the specific thing has been
delivered to him. Hence, when there has been no delivery yet,
the proper action of the creditor is not one for recovery of
possession and ownership but one for specific performance
or rescission of the obligation. (see Art. 1165.)
Rights and remedies of the creditor and debtor in obligations
to give:
f. SPECIFIC
In a specific real obligation, the creditor has the right to demand
the delivery of a determinate thing from the debtor. The creditor
can also exercise the following remedies in case the debtor fails to
comply with the obligation:
1. Demand-specific performance: The creditor can
compel the debtor to make the delivery of the specific
thing. This means that the debtor is legally obligated to
deliver the exact thing that was agreed upon.
2. Demand rescission or cancellation of the obligation
with a right to recover damages: If the debtor fails to
deliver the specific thing or delivers it in a defective
condition, the creditor can demand the cancellation of the
obligation. The creditor may also have the right to recover
damages to compensate for any loss or harm caused by
the debtor's failure to perform.
g. GENERIC
In a generic real obligation, the thing to be delivered is not
specifically determined or physically segregated from others of the
same class. The creditor has the right to demand a thing of the
same kind and quality from the debtor. However, the loss of the
thing through a fortuitous event does not extinguish the obligation.
h. Relate to 1177
Article 1177 of the Civil Code of the Philippines states: "The rights
and remedies of the creditor in case of breach of the obligation by
the debtor are: Action for specific performance, if the obligation is
determinate; Action for rescission, if the obligation is indeterminate
or generic; Action for damages, in either case."
Rights and Remedies of the Creditor:
1. Action for Specific Performance: If the obligation in a
real obligation is determinate, meaning it refers to a
specific thing, the creditor has the right to demand specific
performance. This means that the creditor can compel the
debtor to fulfill the obligation by delivering the specific
thing that was agreed upon.
2. Action for Rescission: If the obligation in a real
obligation is indeterminate or generic, meaning it refers to
a general type or class of things, the creditor has the right
to demand rescission. Rescission involves cancelling the
obligation and returning the parties to their original
positions before the obligation was made.
3. Action for Damages: In cases where the debtor
breaches the real obligation, regardless of whether it is
determinate or indeterminate, the creditor has the right to
seek damages. Damages are intended to compensate the
creditor for any loss or harm suffered as a result of the
debtor's failure to fulfil the obligation.
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
OBLIGATIONS OF THE DEBTOR:
The obligations of the debtor in real obligations include:
1. Fulfilment of the Obligation: The debtor must fulfil the
real obligation by delivering the specific thing (if the
obligation is determinate) or a thing of the same kind and
quality (if the obligation is indeterminate) to the creditor.
2. Delivery of the Thing: The debtor must deliver the thing
according to the terms and conditions agreed upon in the
obligation. This includes delivering the thing in the
manner, place, and time specified.
3. Liability for Breach: If the debtor fails to fulfil the real
obligation, they may be held liable for breach of contract.
The debtor may be required to compensate the creditor
for any damages caused by the breach, as determined by
the court.
ACCESSIONS
i. The term “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.
EXAMPLES:
j. House or trees on a land;
 Rents of a building
 Airconditioner in a car;
 Profits or dividends accruing from shares of stock
ACCESSORIES
 “Accessories,’’ on the other hand, must be understood
in its current and popular sense. It signifies all of those
things which have for their object the embellishment, use
or preservation of another thing which is more important
and to which they are not incorporated or attached.
 In other words, it includes all of those things which are
necessary or convenient for the perfection of another
thing, such as the equipment of a factory, the spare parts
and tools of a machine, the key of a house, and others of
a similar nature.
EXAMPLES:
 Key of a house
 Frame of a picture
 Bracelet of a watch
 Machinery in a factory
 Bow of a Violin
 Note that while accessions are not necessary to the
principal thing, the accessory and the principal thing must
go together. Both can exist only in relation to the principal.
Accession is also used in the sense of a right, i.e., right to
the fruits and/or accessories of a thing.
 The obligation to give a determinate thing includes that
of delivering all its accessions and accessories, even
though they may not have been mentioned. (1097a)
REMEDIES OF CREDITOR IN POSITIVE PERSONAL OBLIGATION
1. If the debtor fails to comply with his obligation to do, the
creditor has the right:
a. to have the obligation performed by himself, or
by another unless personal considerations are
involved, at the debtor’s expense; and
b. to recover damages. (Art. 1170.)
2. In case the obligation is done in contravention of the terms of
the same or is poorly done, it may be ordered (by the court)
that it be undone if it is still possible to undo what was done.
Art. 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.
However, the demand by the creditor shall not be necessary in
order that delay may exist:
1. When the obligation or the law expressly so declares; or
2. When the nature and the circumstances of the obligation
it appears that the designation of the time when the thing
is to be delivered or the service is to be rendered was a
controlling motive for the establishment of the contract; or
3. When demand would be useless, as when the obligor has
rendered it beyond his power to perform.
In 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 upon him. From the moment one of the parties
fulfills his obligation, delay by the other begins.
BREACH OF OBLIGATIONS
 In general, the breach of an obligation may be either
voluntary or involuntary.
 It is voluntary if the debtor or obligor in the performance
of his obligation is guilty of default (mora), or fraud (dolo),
or negligence (culpa), or in any manner contravenes the
tenor thereof.
 It is involuntary if he is unable to comply with his obligation
because of an event which cannot be foreseen, or which,
though foreseen, was inevitable.
 In the first he is liable for damages, in the second he is
not.
DELAY
The word delay, is used in the law, is not to be understood
according to its meaning in common parlance. A distinction,
therefore, should be made between ordinary delay and legal delay
(default or mora) in the performance of an obligation.
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
1. Ordinary delay – is merely the failure to perform an
obligation on time.
2. Legal delay or default or mora – is the failure to perform
an obligation on time which failure, constitutes a breach
of the obligation.
Q. what are the kinds of delay or default?
1. Mora Solvendi – default on the part of the debtor/obligor/
a. Ex re – default in real obligations (to give)
b. Ex personae – default in personal obligations (to do)
2. Mora Accipiendi – default on the part of the
creditor/obligee.
3. Compensatio Morae – default on the part of both the
debtor and creditor in reciprocal obligations.
MORA SOLVENDI
Q. What are the requisites of mora solvendi?
 Obligation pertains to the debtor
 Obligation is determinate, due and demandable, and
liquidated
 Obligation has not been performed on its maturity date
 There is judicial or extrajudicial demand by the creditor
 Failure of the debtor to comply with such demand
Q. Does mora solvendi apply in natural obligations?
 No (Art. 1423, NCC), because performance is optional or
voluntary on the debtor’s part.
Q: Does mora solvendi apply in negative obligations?
 No because one can never be late in not giving or doing
something
Q: What are the effects of mora solvendi?
1. Debtor may be liable for damages or interests; and
2. When it has for its object a determinate thing, debtor may
bear the risk of loss of the thing even if the loss is due to
fortuitous event (Art. 1165, NCC).
Q: May the debtor’s liability be mitigated even if he is guilty of
delay?
 Yes. If the debtor can prove that loss would nevertheless
transpire even if he had not been in default, the court may
equitably mitigate his liability. (Art. 2215 (4), NCC; Pineda,
Obligations and Contracts, 2000 ed., p. 47)
MORA ACCIPIENDI
Q: What are the requisites of mora accipiendi?
 Offer of performance by a capacitated debtor;
 Offer must be comply prestation as it should be
performed; and
 Refusal of the creditor without just cause
Q: What are the effects of mora accipiendi?
1. Responsibility of DR is limited to fraud and gross
negligence.
2. DR is exempted from risk of loss of the thing; CR bears
risk of loss.
3. Expenses by DR for preservation of thing after delay is
chargeable to CR.
4. If the obligation bears interest, DR does not have to pay
from time of delay.
5. CR liable for damages.
6. DR may relieve himself of obligation by consigning the
thing.
Q: What are the rules on default?
1. Unilateral obligations
o GR: Default or delay begins from extrajudicial or
judicial demand – mere expiration of the period
fixed is not enough in order that DR may incur
delay.
o XPN’s:
a. The obligation or the law expressly so
dictates;
b. Time is of the essence;
c. Demand would be useless, as DR has
rendered it beyond his power to
perform; or
d. DR has acknowledged that he is in
default.
2. Reciprocal obligations
o GR; Fulfillment by both parties should be
simultaneous.
o XPN: When different dates for the performance
of obligation is fixed by the parties.
Q: What are reciprocal obligations?
 These are obligations created and established at the
same time, out of the same cause and which results in the
mutual relationship between the parties.
Q: In reciprocal obligations, when does a party incur in delay?
 In reciprocal obligations one party incurs in delay from the
moment the other party fulfills his obligation, while he
himself does not comply or is not ready to comply in a
proper manner with what is incumbent upon him.
Q: In reciprocal obligations, when is demand necessary in
order for a party to incur in delay?
 Only when the respective obligations are to be performed
on separate dates.
Q: What is the effect of non-compliance of both parties in
reciprocal obligations?
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
 If neither party complies with his prestation, default of one
compensates for the default of the other.
Q: What may cause the cessation of the effects of mora?
1. Renunciation (express/emplied)
2. Prescription
The above provision gives the four (4) grounds for liability which
may entitle the injured party to damages (infra; see Art. 2197.) for
all kinds of obligations mentioned in Article 1157.
Here, the breach of the obligation is voluntary; in Article 1174, it is
involuntary. There is breach when a person fails or refuses to
perform his obligation without legal justification.

WHEN DEMAND IS NOT NECESSARY 1. Fraud (deceit or dolo) – as s used in Article 1170, it is
the deliberate or intentional evasion of the normal
1. When the obligation or the law expressly so declares fulfillment of an obligation. (see 8 Manresa). As a ground
– Attention must be called to the fact that what the law for damages, it implies some kind of malice or dishonesty
means is that the obligation or the law itself must and it cannot cover cases of mere mistake and errors of
judgment made in good faith.
expressly declare that the demand is not necessary in
order that the debtor shall incur in delay. FRAUD is when someone lies, cheats, or tricks others to get
money, goods, or benefits dishonestly. It’s a form of deception for
2. When from the nature and the circumstances of the personal gain.
obligation it appears that the designation of the time when
the thing is to be delivered or the service is to be rendered  Article 1170 refers to incidental fraud (dolo incidente)
was a controlling motive for the establishment of the committed in the performance on an obligation already
contract. existing because of contract. It is to be differentiated from
causal fraud (dolo causante) or fraud employed in the
extecution of a contract under Article 1338, which vitiates
3. When demand would be useless, as when the obligor has
consent.
rendered it beyond his power to perform.
Q. What are the two kinds of fraud (dolo)?
DAMAGES (INCIDENTAL VS CAUSAL
1. Incidental Fraud also known as Innocent
INCIDENTAL CAUSAL misrepresentation, occurs when false information is
provided unintentionally, without any malicious intent.
Present only during the
performance of a pre- Present only at the time of EXAMPLE:
the birth of the obligation.
existing obligation.  Bruno sell a used laptop online, he honestly believes it’ in
perfect working condition for the reason that it was
Employed for the purpose working fine the last time he used it. However, George,
Employed for the purpose of
of securing the consent of the buyer, after he receive it, he discovers that there is a
evading the normal
the other party to enter into minor issue with the keyboard that Bruno were unaware
fulfillment of an obligation
the contract. of when he listed it for sale.
o This is unintentional misrepresentation of the
If it is the reason for the
laptop’s condition is an example
other party upon whom it is
Results in the nonfulfillment
employed for entering into
or breach of the obligation 2. Causal Fraud (dolo causante) is a deception of a
the contract, results in the serious character employed by one party and without
vitiation of his consent. which the other party would not have entered into a
contract. This is when fraud used to induce a person to
Gives rise to a right of the
agree to a contract. This kind of fraud is a ground for
Gives rise to a right of the innocent party to ask for the
annulment of the contract plus damages
creditor or oblige to recover annulment of the contract if
damages from the debtor or the fraud is causal or to EXAMPLE:
obligor recover damages if it is  There was an ad offering work to female college
incidental graduates to work as English tutors to rich Hong Kong
families but in truth that was recruitment to work in a red
light district or pleasure district

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. (1101)
NEGLIGENCE (FAULT OR CULPA)
 it is any voluntary actor omission, there being no bad faith
or malice, which prevents the normal fulfillment of an
obligation. (see Arts. 1173,1174.)

GROUNDS FOR LIABILITY

COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
 Failure to exercise reasonable care or caution in a
situation, which deals with civil wrongs and liability for
harm caused by one party’s actions or inaction.
EXAMPLE:
 Let's say you're driving a car, and you're texting on your
phone instead of paying attention to the road. As a result,
you don't notice that the traffic light ahead has turned red,
and you fail to stop your car in time. You end up colliding
with the car in front of you, causing damage to both
vehicles and minor injuries to the occupants.
 In this scenario, your negligence is evident because you
failed to exercise reasonable care and attention while
driving, which directly resulted in the accident and harm
to others. Your distraction and failure to obey traffic laws
constitute negligence in this situation.
DELAY (MORA)
 a legal delay or default and it consists of failure discharge
a duty resulting to one’s own disadvantaged.
 The debtor incurred delay if:
o The debtor fails to perform his obligation when it
falls due; and
o A demand has been made by the creditor
judicially or extra judicially
CONTRAVENTION OF THE TERMS OF THE OBLIGATION
 This is the violation of the terms and conditions stipulated
in the obligation without justifiable excuse or reason. The
contravention must not be due to a fortuitous event or
force majeure. (Art. 1174)
 It is a legal concept that refers to a situation where one
party to a contract fails to perform their obligations in the
manner specified by the contract. In other words, they do
not fulfill the terms of the contract as agreed upon.
EXAMPLE:
 Suppose you enter into a rental agreement for an
apartment, and one of the terms of the contract is that you
must not have any pets in the unit. Despite this clear
provision in the lease, you bring in a dog and keep it in
the apartment without the landlord's knowledge or
consent.
 In this case, your actions contravene the terms of the
obligation outlined in the rental agreement. You've
breached the contract by violating the specific provision
that prohibits pets in the apartment. This breach could
lead to consequences such as eviction, fines, or legal
action by the landlord for not adhering to the agreed-upon
terms of the lease.
FRAUD NEGLIGENCE
There is deliberate intention
There is no such intention
to cause damage or injury
Such waiver may, in a certain
Waiver of the liability for
sense, be allowed in
future fraud is void.
negligence
Negligence is presumed from
Fraud must be clearly proved the violation of a contractual
obligation
Liability for fraud cannot be Liability for negligence may
mitigated or reduced by the be reduced according to the
courts circumstances.
They are similar in that both are voluntary, that is, they are
committed with volition. Where, however, the negligence is gross
or there is failure to exercise even slight care or entire absence of
care that it shows bad faith or amounts to malice or wanton attitude
on the part of the defendant, the rules on fraud shall apply. In such
case, no more distinction exists between the two, at least as to
effects. In other words, negligence that is gross or shows bad faith
is equivalent to fraud.
Article 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an
action for future fraud is void. (1102a)
Responsibility arising from fraud demandable.
 This provision refers to incidental fraud which is employed
in the fulfillment of an obligation. (Art. 1170.)
Responsibility arising from fraud can be demanded with
respect to all kinds of obligation and unlike in the case of
responsibility arising from negligence (Art. 1172), the
court is not given the power to migiate or reduce the
damages to be awarded. This is so because fraud is
deemed serious and evil that its employment to avoid the
fulfillment of one’s obligation should be discouraged.
Waiver of action for past fraud valid.
 What the law prohibits is waiver anterior to the fraud and
to the knowledge thereof by the aggrieved party.
 A past fraud can be the subject of a valid waiver because
the waiver can be considered as an act of generosity and
magnanimity on the part of the party who is the victim of
the fraud. Here, what is renounced is the effect of the
fraud, that is, the right to indemnity of the party entitled
thereto. The waiver must be expressed in clear language
which leaves no doubt as to the intention of the obligee to
give up his right against the obligor.
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. (1103)
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
Responsibility arising from negligence demandable.
 In the performance of every kind of obligation, the debtor
is also liable for damages resulting from his negligence.
1. Discretion of court to fix amount of damages. – the
courts are given wide discretion in fixing the measure of
damages. The reason is because negligence is a
question which must necessarily depend upon the
circumstances of each particular case. (see Art. 1173.)
Moreover, negligence is not as serious as fraud because
in the case of the former, there is no deliberate intention
to cause injury or damages. When justified by the
circumstances, the court may increase or decrease the
damages recoverable.
2. Damages where both parties mutually negligent –
When both parties to a contract are mutually negligent in
the performance of their respective obligations, the fault
of one may cancel or neutralize the negligence of the
other. Thus, the rights and obligations of the parties may
be determined under the equitable principle that none
shall enrich himself at the expense of another.
3. Validity of waiver of action arising from negligence.
o An action for future negligence (not fraud)
maybe renounced except where the nature of
the obligation requires the exercise of
extraordinary diligence as in the case of
common carriers. (see Art. 1733.) Thus, in the
preceding example, the law allows an
agreement between S and B, whereby S will not
be liable for damages arising from negligence in
the performance of his obligation. But if S is a
common carrier (e.g., bus, shipping or airline
company) such waiver is void. (2) Where
negligence is gross or shows bad faith (ie.,
deliberately committed), it is considered
equivalent to fraud. (Art. 2201, 2nd par.) Any
waiver of an action for future negligence of this
kind is, therefore, void.
Kinds of negligence according to source of obligation.
They are:
1. Contractual negligence (culpa contractual)
o or negligence in contracts resulting in their
breach. Article 1172 refers to culpa contractual.
This kind of negligence is not a source of
obligation, (Art. 1157.) It merely makes the
debtor liable for damages in view of his
negligence in the fulfillment of a pre-existing
obligation (Arts. 1170, 1172.);
2. Civil negligence (culpa aquiliana)
o or negligence which by itself is the source of an
obligation between the parties not so related
before by any pre-existing contract. It is also
called tort or quasi-delict (Art.1162; see Art.
2176.); and
3. Criminal negligence (culpa criminal)
o or negligence resulting in the commission of a
crime. (Arts. 3, 365, Revised Penal Code.) The
same negligent act causing damages may
produce civil liability arising from a crime under
Article 100 of the Revised Penal Code (supra.),
or create an action for quasi- delict under Article
2176, et seq, of the Civil Code.
EXAMPLES:
1. If S entered into a contract of sale with B to deliver a
specific horse on a certain day and the horse died through
the negligence of S before delivery, S is liable for
damages to B for having failed to fulfill a preexisting
obligation (contract may be either express or implied)
because of his negligence. This is culpa contractual.
2. Assume now, that the horse belongs to and is in the
possession of B. The negligence of S which results in the
death of the horse is culpa aquiliana. In this case, there is
no pre-existing contractual relation between S and B. The
negligence itself is the source of liability. (Art. 1157(5)
3. A crime can be committed by negligence. If B wants, he
can bring an action for culpa criminal (damage to property
through simple or reckless imprudence) Here, the crime
is the source of the obligation of S to pay damages. (Arts,
115714]: 1161.) But B cannot recover damages twice for
the same act or omission of S. In other words,
responsibility for quasi-delict is not demandable together
with the civil liability arising from a criminal offense. (Art.
2177.)
Effect of negligence on the part of the injured party.
Suppose the creditor is also guilty of negligence, can he recover
damages?
 Article 2179 of the new Civil Code provides: “When the
plaintiff’s own negligence was the immediate and
proximate cause of his injury, he cannot recover
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, but the courts shall mitigate the damages to be
awarded." (see Arts. 2214, 2215.)
FORTUITIOUS EVENTS
 An event which could not be foreseen, or which though
foreseen, was inevitable
REQUISITIES:
1. The cause of the breach of the obligation must be
independent of the will of the debtor
2. The event must be either unforeseeable or unavoidable
3. The event must be such as to render it impossible for the
debtor to fulfill his obligation in a normal manner
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
4. The debtor must be free from any participation in, or
aggravation of injury to the creditor
RULE ON FORTUITOUS EVENT:
When presumptions in Art. 1176 do not apply
1. With reservation as the interest – The reservation may be made
in writing or verbally.

 GENERAL RULE: No liability for fortuitous event 2. Receipt without indication of particular installment paid – If the
 EXCEPTIONS: receipt does not recite that it was issued for a particular installment
1. When expressly declared by law (bad faith, subject matter due as when the receipt is only dated.
is generic, debtor is in delay)
2. When expressly declared by stipulation or contract 3. Receipt for a part of the principal – such a receipt without
3. When nature of obligation requires assumption of risk mentioning the interest, implies that the creditor waives his right to
4. When the obligor is in default or has promised to deliver apply the payment first to the interest and then to the principal as
the same thing to two or more persons who do not have permitted by Art. 1253. Art 1176 presumption applies to a receipt
the same interest (Art. 1165) of the whole of the principal. 4. Payment of taxes – no application
to taxes at all.
EFFECT OF FORTUITOUS EVENT
5. Non-payment proven – a presumption cannot prevail over a
Determinate Obligation Generic Obligation proven fact.
Obligation is not
extinguished based on the Art. 1178. Subject to the laws, all rights acquired in
Obligation is extinguished
rule that the genus never
virtue of an obligation are transmissible, if there
perishes
has been no stipulation to the contrary.

Art. 1176. The receipt of the principal Exceptions:

by the creditor without reservation
with respect to the interest, shall give
rise to the presumption that said
interest has been paid.
a) Those not transmissible by their nature like purely personal
rights;
b) Those not transmissible by provision of law;

c) Those not transmissible by stipulation of parties.

 The receipt of a later installment of a debt without Transmissibility of rights

reservation as to prior installments, shall likewise raise the
presumption that such installments have been paid.
Presumption
• The inference of a fact not actually known arising from its usual
connection with another which is known or proved.
Two kinds of Presumption
1. Conclusive Presumption – one which cannot be contradicted,
like the presumption that everyone is conclusively presumed to
know the law; and
1. Prohibited by law – like the rights in partnership, agency, and
commodatum which are purely personal in character.
a. By the contract of partnership, two or more persons bind
themselves to contribute money, property, or industry to
a common, with the intention of dividing the profits
among themselves.
b. By the contract of agency, a person binds himself to
render some service or to do something in
representation or on behalf of another, with the consent
or authority of the latter.

2. Disputable Presumption - one which can be contradicted or 2. Prohibited by the stipulations of the parties.
rebutted by presenting proof to the contrary.

CHAPTER 3: DIFFERENT KINDS OF OBLIGATIONS

b. Alternative
Primary Classification of Obligations under the Civil Code c. Facultive
3. Plurality of subject
1. Demandability
a. Simple
a. Pure
b. Joint
b. Conditional
c. Solidary
c. With a period
4. Performance
2. Plurality of object
a. Divisible
a. Simple
b. Indivisible
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
5. Sanctions for breach  Dependent on sole will of 1 party; if on part of debtor and
a. With a penal clause suspensive – void
b. Without a penal clause
CAUSAL – dependent on chance or hazard

MIXED – chance, or any of parties

PURE AND CONDITIONAL OBLIGATIONS
WITH TERM
PURE – one whose effectivity or extinguishment does not depend
upon the fulfillment or non-fulfillment of a condition or upon the a. Positive – extinguished if time expires or indubitable of
expiration of a period and is demandable at once. condition to happen
b. Negative – effective from moment of time elapsed or
CONDITIONAL – one whose effectivity is subordinated to the evident it can’t happen
fulfillment or non-fulfillment of a future AND uncertain event or upon
a past event unknown to the parties IMPOSSIBLE AND ILLEGAL CONDITIONS

CONDITION – future and uncertain event or a past event unknown  GENERAL RULE: They shall annul the obligation which
to the parties depends upon them
 EXCEPTIONS:
SUSPENSIVE
a. Pre-existing obligation
 happening of condition given rise to obligation b. If obligation is divisible
c. In simple or remuneratory donations
Effects: d. Testamentary dispositions
e. Conditions not to do an impossible thing
a. Effectivity retroacts to the day of the constitution of
the obligation OBLIGATIONS WITH A PERIOD
b. No retroactivity with reference to fruits or interest and
prescription WITH A PERIOD – An obligation which depends on a future and
c. Creditor may preserve rights certain event (see Arts. 1193, 1196)
d. Debtor – recovery of payment by mistake or even w/o WHEN STIPULATION SAYS “PAYABLE WHEN ABLE” – IT IS
mistake. WITH A PERIOD, REMEDY:

1. Agreement among parties

RULES ON LOSS, DETERIORATION, AND IMPROVEMENTS 2. Court shall fix period of payment when parties unable to
DURING PENDENCY OF A SUSPENSIVE CONDITION (Art. agree
1189)
KINDS:
Improvement If by nature or by If at the expense of 1. Resolutory (in diem) – demandable at once but
time  insures to the debtor 
terminates upon arrival of the day certain
the benefit of the debtor’s right is
o Day certain – that which must necessarily
debtor only that of a
usufructuary come, although it may not be known when
 Suspensive (ex die) – obligation becomes demandable
on the day stipulated
REQUISITES FOR THE APPLICATION OF ARTICLE 1189
TERM CONDITION
a. The obligation must be a real obligation
Fact or event which is future
b. The object is a specific or determinative thing Interval of time which is future
or uncertain or a past event
c. The obligation is subject to a suspensive condition and certain
unknown to the parties
d. The condition is fulfilled
e. There is loss, deterioration or improvement of the thing Time w/c must necessarily Future and uncertain fact or
during the pendency of the happening of the condition come although it may not be event which may or may not
known when happen
RESOLUTORY
Exerts an influence upon the
Exerts an influence upon the
 Happening of condition extinguishes obligation time of demandability or
very existence of the
extinguishment of an
Effects obligation itself
obligation
a. No retroactive effect Does not have any retroactive
b. Obligation extinguished effect unless there is an Has retroactive effect
c. Restore to each other what was received plus agreement to the contrary
interest/fruits

POTESTATIVE
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
When it is left exclusively to
When it is left exclusively to
the will of the debtor, the
the will of the debtor, the
existence of the obligation is RIGHT OF CHOICE IN ALTERNATIVE OBLIGATIONS
obligation is void.
affected
WHEN COURTS MAY FIX PERIOD EFFECTS OF
OBLIGATIONS
1) If the obligation does not fix a period, but from its nature
and circumstances it can be inferred that a period was
intended by the parties
2) If the duration of the period depends upon the will of the
debtor
3) In case of reciprocal obligations, when there is a just
cause for fixing a period
4) If the debtor binds himself when his means permit him to
do so
PERIOD FOR WHOSE BENEFIT
 GENERAL RULE: when a period is designated for the
performance or fulfillment of an obligation, it is presumed
to have been established for the benefit of both creditor
and debtor.
 EXCEPTION: when it appears from the tenor of the
obligation or other circumstances that the period has been
established in favor of one or the other.
PERIOD FOR THE BENEFIT OF THE CREDITOR
 Creditor may demand the fulfillment of the obligation at
any time but the debtor cannot compel him to accept
before the expiration of the period.
PERIOD FOR THE BENEFIT OF THE DEBTOR
 Debtor may oppose any premature demand of the creditor
but he may renounce the benefit of the period by
performing his obligation in advance REQUISITES FOR MAKING THE CHOICE
WHEN DEBTOR LOSES RIGHT TO PERIOD
 Insolvency of debtor, unless security provided
 Did not deliver security promised
 Impaired security through his own acts or through
fortuitous event unless he gives new securities equally
satisfactory
 Violates undertaking in consideration of extension of
period
 Attempts to abscond
ALTERNATIVE OBLIGATIONS (Arts. 1199 – 1206)
 FACULTIVE – only one prestation has been agreed upon Various things are due but
but another may be given in substitution the giving principally of one
EFFECT OF LOSS OR DETERIORATION THRU NEGLIGENCE,
DELAY, OR FRAUD OF OBLIGOR:
If one of prestations is illegal,
 Of thing intended as substitute – no liability
 Of the substitute after substitution is made – with liability
 ALTERNATIVE – bound by different prestations but only
one is due
 As a general rule the right of choice belongs to debtor
LOSS OF OBJECTS OF ALTERNATIVE
1) If the right of choice belongs to the debtor
o If through a fortuitous event all were lost, debtor
cannot be held liable for damages
o If 1 or more but not all of the things are lost or
one or some but not all of the prestations cannot
be performed due to fortuitous event or fault of
the debtor, creditor cannot hold the debtor liabile
for damages because the debtor can still comply
with his obligation
o If all things, except one, were lost, the debtor
must comply by performing that which remain
o If all were lost by fault of the debtor the later is
liable for the value became impossible
2) If right of choice belongs to the creditor
o If 1 of the things is lost through a fortuitous event,
the debtor shall perform the obligation by
delivering that which the creditor should choose
from among the remainder or that which remains
if only 1 subsists
o If the loss of 1 of the things occurs through the
fault of the debtor, the creditor may claim any of
those subsisting or the price of that which,
through the fault of the former, has disappeared
with a right to damages.
o If all the things are lost through the fault of the
debtor, the choice by the creditor shall fall upon
the price of any 1 of them, also with indemnity
for damages.
 Made properly so that creditor or his agent will actually
know
 Made with full knowledge that a selection is indeed being
made
 Made voluntarily and freely
 Made in due time – before or upon maturity
 Made to all proper persons
 Made w/o conditions unless agreed by the creditor
 May be waived, expressly or impliedly
ALTERNATIVE FACULTIVE
Only one thing is due but a
substitute may be given to
render payment/fulfillment
is sufficient
easy
If principal obligations is void
and there is no necessity of
others may be valid but
giving the substitute; nullity
obligation remains
of P carries with it nullity of S
COMLAW: REVIEWER (IST SEMESTER: MIDTERM EXAMS)
If it is impossible to give all
except one, the last one
must still be given
Right to choose maybe given
either to debtor or creditor
If it is impossible to give the
principal, the substitute does
not have to be given; if it is
impossible to give the
substitute, the principal must
still be given
The right of choice is given
only to the debtor

MEMBERS:

 NOFIES, EDREE ANGELA

 GALLER, MA. ELLA
 OLVIDO, RONGIE
 DEGRACIA, KRIZIA
 CAIN, LYNDSYANNE
 ESTACION, JAMELIA
 DEMAFILEZ, DYLE
 HILARIO, MG
 CEPEDA, MIZPAH
 LEUTERIO, EISHA