Labor aippine Col Atty. Nickolai Soriano, CPA Atty. Kenneth Manuel, CPA Atty. Reginald Laco, CPAoctober 2022 ¢ LE Sylialous ent Procurement 120 Act, ion Law FRIA, Consumer! mn Truthin Lending ‘Act, Labor Standards, insurance Law Philippine Competition Act A i tty. Nickolai Soriano, CPA Atty. Ken 5 eth Manuel, Atty. Reginald Laco, tenThe REBT Reviewer FOREWORD to the FIRST EDITION (2020) In the interest of making this very challenging and "deadly" subject, as they call it, alittle easier to understand and master, we have come together to create this reviewer. With the guidance of the Almighty, may it serve its purpose, God bless us all!a For FOREWORD to the SECOND EDITION (2022) ‘The ylabus fr Regulatory Framework for Basins Tanten (RT hasbeen vsti updated bythe Boor of Acounary forthe Cy 2022 Liste Beamon for Corie Pale Accountants With hig newts of accounting students naiontide for a curen, updated, ay ‘comprehensive reviewer i paramount Thus, we revised the 202 edition the RFT Reviewer and inserted new chapters to fully over the topiy included in the October 2022 eylabus, \Wehope that this reviewer will help you hurdle one ofthe tough, subjects ofthe CPA Licensure Examination. The RFBT Reviewer Track Your Progress! Sis deanna coor | quiiea [rennet | Sioe_|otions ‘Chapter! 0 Chapter 2 50 Capers 30 cupeert 3 ChapterS 5 | copier 30 unger? 30 upeers 20 Chapter mn CChapteri0 = Chapter 11 - [.cnapter12 ae CChapter23 - Chapter 4 i Cchupier1s ai Chapter 16 5 cnapter17 = Chapter 18 a Chapter 19 =Terenad Date] Date | MCQ [Number Chapter Seore_| of items Chapter 20 » Chapter21 5 Chapter 22 5 Chapter23, 2» Pron A 109 Proboard B 10 “The REBT Reviewer ris page e intently lft lank)¥ a dla, CONDENSED TABLE OF CONTENTS Obligations.. Credit Transactions ruearannnnnn Anti-Bouncing Checks Law Partnership. Corporatio: Securities Regulation Code... Cooperatives. Banking Law: Intellectual Property Law E-Commerce Act Data Privacy Act.. Ease of Doing Business Act. Labor Standards... Social Security Law. “The REIT Rowiwer Insurance Law, ‘Truth in Lending Act: Philippine Competition Act,== SS ore ‘The RFBT Reviewer TABLE OF CONTENTS “Answers to Multiple Choice Questions. Obligations... Contracts... Contracts, in General. Fundemental Characteristics/Principl CCasitication of Contracts Obligations, in General. Definition. Kinds of Obigtions as to Bass and Enforcebiiy scent Elements of Oba anno ‘Transmisibilty of Otgatons. Sources of Obligations. Nature and Effect of Obligations. Remedios for Breach of Obligations on Speci Circumstances Acting Obligations in Gener Elements of Contracts Essential Elements of a Contract ‘Consent of Contacting Parties ‘Objet Certain which i the Subject Matter. Cover or Consideration Forms of Contract. Reformation of Instruments. Kinds of Civil Obligations... ons ‘sto Perfection and Extingushnent si Interpretation of Contracts... ‘As toPluralty of Presation. Defective Contracts. Asta Rights and Obligations of Multiple Patties. Rescieibe ConA E8 none ‘Ast Performance of Preston (Obligation witha Penal Clase anne (te Cassifeations of Obligations. ‘Modes of Extinguishment of Obligations .w.acwms Voidable Contract Unenforeosble Contents. Veid or nexstent Contract ‘Multiple Choice Questions, Payment or Peformance. ee Answers to Multiple Choice Questions... 152 Liss the Thing Due ox impose of Fer ora onnnen--S Sales. = {Condonatin ot Hemi fhe Debt even Sales in General Confusion or Merger of Right ome Elements of a Contract of Sale cum = seni lemenis of Contract Sale SsisipiaChsta eck Perfection of a Contract of Sale. | werner” Recto Law a ti ees,Oder, Maceda Law Condominiums or Subdivisions... Obligations ofthe Vendor... ‘ToTake Careof the Thing = Delivergnnssen i Rights of an Unpaid Seller Double Sale... Conditions and Warranties... ‘Warranties under the Consumer Act (RA No. 73%). Warranty Again Becton. oon 7 ies gain Laden ic of Guy in Redhibitory Defects in Animal... [Worramty Againe Nor-Apparent Encumbrances Obligations ofthe Vendee. Wt Extinguishment of a Contract of Sale Conventional Redemption nnsneeten caine | 8 Lapa Redemption Assignment of Credit. Multiple Choice Question seoomennn Answers to Multiple Choice Questions. (Credit Transactions... Similarities Between Pledge, Retina Mere sa Ca Mortgage... 26 Pledge... Real Estate Mortgage ‘Chattel Morigage.. Pp The REBT Reviewer ‘Anti-Bouncing Checks Law.. Partnership Multiple Choice Questi ‘Answers to Multiple Choice Questions. Elements of Violation. Duty of the Drawee . Credit Construed Effect of Acquittal on Civil Liability Penalty and Prescriptive Period. Difference With Estafa by Post-Dating or Issuing a Worthless Cheek ones 238 Multiple Choice Questions... Answers to Multiple Choice Questions... ‘Contract of Partnership, in General Partnership vs. Corporation. Formal Reguitements.. Kinds of Partnerships... Kinds of Partners. M7 Obligations of a Partner. ‘To the Parnership and Other Partnets. sn 250 (Obligations of Partners to Third Parts secosune sure 254 Rights of a Partner. 257 ‘Sharing inthe Profits sn Property Right of Partner, Rules on Management. Dissolution and Winding-UjCauses of Disoltion ifct of Dissolution 2 2 Winding Up or Liuidation aod Limited Partnership By Limitations on a Limited Parmer. nl Rights of Limited Pattnae nsnnennn 4 Disoltion end Winding-Up ‘Multiple Choice Questions. Answers to Multiple Choice Questions Corporation anninnn Definition and Attributes Artifical Beng. Created by Operation of Law ight of Succession. Corporate Powers 3 21 ‘Advantages and Disadvantages of Forming a Corporation 285 Classes of Corporations 2% Organization and Incorporation. eo Contents he Artic of incceporton 98 Board of Direct01senennne 30 Qualifations and Disqusifatins. os Beaton of Memberscf the BoardTrustees and Vaca oovnneo 3 Reroval and Fling. of Vacanses Directo Duty of Loyaly ther Dates of Dicer. Commitee nen Compensation cf Directors st The REBT Reviewer Corporate Oiticers Shares of Stock Par and No-Par Value Shares. Rights of a Stockholder: Preemptive Right. Appel Right ‘orn Trost Ageement annonce By-Laws enon ‘Stock and Transfer Books. Meetings. Merger and Consolidation . Non-Stock Corporations ‘Close Corporations wm ‘One Person Corporation... Foreign Corporations... Dissolution and Liquidation ‘Multiple Choice Questions. ‘Answers to Multiple Choice Questions... = Securities Regulation Code Introduction to SRC. $38 Powers and FuRCONS on enen Securities on Registration and Reportorial Requirements. Registation Exemption from Registration Reportora Requirement————— Og igo General information Sheet (GI). of Anal Final Statements (AS)... Insider Trading and Other Fraudulent Transactions Insider Trading. ‘Fraudulent Transactions and Other Market Manipulations Mandatory Tender Offer Rule. Multiple Choice Questions... Answers to Multiple Choice Questions .. é Bees Bsegeege Cooperatives... Definition and Principles. Purposes ofa Cooperative. Powers and Capactis of 3 Cooperative. (Organization and Registration... Division Merger and Consolidation. Types of Cooperatives. Membership ene Termination of Membership General Assembly. Meetings. Voting System nn Board of Directors. Otter fhe Cooperatives. Comite. Compersationof Director. Deaings of Diecors Offcen, or Comite Membur st Cooperatives. an 40 afl The RFBT Reviwor Disha of aDieetor—- (Other Matters on Cooperatives. Keeping of Records Reports. : “Tax Exemption of Cooperatives Plage of Cooperatives Capital, Property and Funds. : ‘Audit Inquiry and Members’ Right to Examine Net Surplus Dissolution. Liguidat Mulple Chotce Questions ‘Answers to Multiple Choice Questions... Banking Laws. Bank Secrecy Law (RA 1405, as Amended) Pred Aeon Depots Covet nn ceptions. PDIC Act (RA 3591, as Amended)....... Irs OPO neon Deposit Aecounts not Ene to Payment. Dolernintionaf the Amount Det Preece forthe FDIC. ee ‘Anti-Money teers Act (RA 9160, as Amended by RA. S88 paces ATS Meeey Leundering es nlawiul Activ 475—— Covered Eris. Obigstions of Covered Insitutions. Covert Transaction suspicious Transaction -AnsMoney Laandoring Coun. Multiple Choice Questions... “Answers to Multiple Choice Questions Intellectual Property Law Trademarks. Mask Which Canna Be Registered. Kind of Te ern . erste Registration and Pry Clas. ignsConertat Tender ningerent star Conpettion Copyright Original and Desivative Works. Works Not Protated.. Exonomic Right ofan Author. Ovnesip of Copyright Litatons on Copysigt Mera Right Teams of Prot on Copyrghnngement oo Patent E Kinds of Patents Requss Rghttoa Patent Palen Rights. Tre RFBT Reviewer Potent infengement. Voluntary and Compulsory Licensing ‘Multiple Choice Questions. ‘Answers to Multiple Choice Questions. E-Commerce Act Introduction. Legel Recognition of Electronic Data Messages and Electronic Documents. : Legal Recognition of Blctronie Documents Presumption Relating to Bletronic Signatures Original acumen’. hentia ene Data Messages ae toni: Documents Aaya Eien Weight of Eestoic Dats Mop ot [lectonse Document. rs 3 Conmicentn of Hedonic Dats Messages or Heronle Docuents ares anne a) [Electronic Commerce in Carriage of Goods 558. Electronic Transactions in Government... 560 ‘Obligotions Under the E-Commerce Act wman Multiple Choice Questions... ‘Answers to Multiple Choice Questions, Data Privacy Act. Definition of Terms. Scope.. : ‘The National Privacy Commission. Processing of Personal Information.a —ae Obtisan, ‘The REDT Reviewer Se User “~3 Night Shift Differential and Overtime Pay ---~ Sit vate ott Mra ; pt a “Sey Ret eed and Holidays Day Pas ate el ein Holiday Pay... Rights of the Data Subject gg AVES Security of Personal Information. Wages and 13* Month Pay... ‘Accourtabtyfor Transfer of Perso ICAO vnn.-nuna, Multiple Choice Questions. city of Sentve Personal Infomation in Government. “Ansorers to Multiple Choice Questions. Unlawful Acts and Penalties. Multiple Choice Questions. Answers to Multiple Choice Questions .. Ease of Doing Business Act.. Introduction to Ease of Doing Business Act. AntiRed Tape Authority Gitizon’s Charter. oro.Contact Policy enn HON an Scope and Coverage Pension, Retirement and Other Benefits. ‘Morty Pension. Revrement Benefits 652 vot nh Benefits Permanent Dieabilty Benefits Rules in Accessing Government Services ne Funeral Bnei ‘Automatic Approval or Extension of License, Clearanx Sishness Benefit Permit, Certification or Authorization. Er Manan Lene Beet aa rammed Unemplnyment Insurance or nectar Seperation Benefit. Non-Trarelesbility of Benefit Frc OR Big aie ear a ion From Tas, Legal and Lien Multiple Choice Questions et ee aewsuaee, fq. EmPloye'sand Employe’s Contributions, 15 to Multiple Choice Ques ‘Contbutions of he Sl-Employed.. Labor Standards. 5 _Governmont Consibation. Coverage., snwne6! Remittance of Contributions. eeCr Employment Records and Reports. Penal Clauses. Multiple Choice Questions. ‘Anewers to Multiple Choice Questions Consumer Act of the Philippines.. Introduction. Definition of Terms si : Protection Against Deceptive, Unfair and Unconscionabj Sales Acts or Practices. Regulation of Sales Acts and Prectces Unfair or Uncorsconeble Sales Actor Practice Labeling and Fair Packaging Prohbited Acton Labeling and Packaging. sen TE Minimum Labeling Requirements for Consumer Product onennonJ0 Specisl Packaging of Consumer Products for the Protection of Chilére ed Adaitional Labeling Requirements... 7m Mishabeled Food zt oe Mislabeled Cosmetics : -Mislabelod Drugs and Devices... ‘Misabeled Hazardous Substances. Consumer Product and Service Warranty... ‘Warranties in Supply of Services Price Tag Requirement . Multiple Choice Questions.. Answers to Multiple Choice Questions Lemon Law sennsnsem ‘The REBT Reviewer Introduction. tion of TermS..ue0 Requisites to Invoke Lemon Law Rights: Repair Attempts Notice of Availment.. _Availmentof Lemon Law Rights Remedies for Dispute Resolution. Determination of Reasonable Allowance for Use... Disclosure on Resale Multiple Choice Questions. Answers to Multiple Choice Questions... Financial Rehabilitation and Insolvency Act. Introduction. Debtors TH Creditors, scacamaraa, Suspension of Payments... Features ‘Suspension Order. Prohibited Aco ofthe Debtofuneaun Ceeltors Meeting Rehabilitation wun ‘Types of Rehabilitation CommencementStay Order. lake nnnonenneennnnnn fect of Stay Order on Secured Credits. Court Action . 2 2 M9 78 748 “9 ‘Who Will Manage the Business ofthe Debtor.a Obs, habitation Receiver and Management Committees senses, ignition vs. Suspension OF Payments \Voluniary vs Invohutary Liquidation. Aetsof Incchveney ‘Conersion bythe Cour into Liquidation Order. Rights of Secured Creditors Liguideto Determination of Claims. Liguidation Plan Multiple Choice Questions Answrers to Multiple Choice Questions » Retabiltation Pin. . = Distinction with SUSPENSION OF PAYMENTS. 2 Pre-Nogotiated (Out-of-Court) Rehabilitation... x ‘standstil Por ; Cram Down Efe a Liquidation... a Liquidator nvenem A 2 3 7a Insurance Law se ‘Concept/Elements/Characteristics of an Insurance Contr (Concep¥Chanseeristice of Insurance. ‘Bement ofan Insurance Contact Classes of Insurance Contracts. Life tava, NomLife insurance... nT ” m xh “The REBT Reviewer Insurable Interest. Life Insurance Property Ineuraneeson- Insurable Interest in Property ve In Lif Inaurable Interest on Mortgaged Property Beneficiary. Assignee. fect of Change of interest in Insured Property Perfection of the Contract of Ineurance Perfection Premiums - Rescission of Insurance Contracts. Claims Settlement and Subrogation Subrogation. Multiple Choice Questions... ‘Answers to Multiple Choice Questions Truth in Lending Act mmm Introduction. Definition of Terms. Required Information, Ansivers to Multiple Choice Questions. Philippine Competition Act Introduction.ecartion of Ply Applicability Definition of Terms Prohibited Acts. [Anti Compebtive Agreement Abuse of Dominant Position... Mergers and Acquisitions Review of Mecgets ane Acquisitions Prohibited Mergersand Acquisitions. Compulsory Notcation. Fines and Penalties... “Multiple Choice Questions... Answers to Multiple Choice Questions. Government Procurement Law. General Principles, so and Application Desdaration of Poi Goveming Principles on nnsnnn Scope and Application. Definition of Terms .aonesenne Preparation of Bidding Documents.. orm and Contents of idling Documents. Invitation to Bi Advetsng ed Contents ofthe lnvtation to Bid. Receipt and Opening of Bids... Submission and Receipt of Bids. “The REBT Reviewer bid Evaluation Post-Qualification | = = = “Alternative Methods of Procurement Maltiple Choice Questions.. “Answers to Multiple Choice Questions... Objective an Process of Post ulation Frilure of iain, Single CaeulteRstod and Responsive Bid Submission ‘Award, Implementation and Termination of the Contract. 632 [Notice and Execution of Award. Teriod of Action on Procurement Activities Performance Sout oo 2 Failure fo Ener Into Controct and Poet Performance Security ....833 Grounds for Teination iacosute of Relations oo Limited Source Bidding. Dine Contacting. Repeat Oxcer. Stepping. Negotiated Procurementarn —. Nnoblgaton is juridical necessity to giv ou EE Hig, the RFT Reviewer Chapter 1 OBLIGATIONS OBLIGATIONS, IN GENERAL ae ‘to door not to do. (Art. 1156) OBLIGATIONS sonccrccenn seston rernatural orcvi ‘Ari 1423f the Civil Code provides that obligations are ether natural or civil; Chil ctigations give a right of action to compel their performance oF fulfillment. In this sence thet juridical necessity to perform the obligation because it can test in judi o legal sanction. KINDS OF OBLIGATIONS AS TO Basis AND ENFORCEABILITY |& Civil obligations - derive their binding force from positive law or substantive law (Civil Obligation of Parents to give support to their dlildren under Family Code) and can be enforced by court action or the ‘coercive power of public authority. 1b. Natural obligations, not being based on positive love but on equity and raturt la, dont grant aright of action to enforce thele performance, Dbutafer voluntary fullilmentby the obligor they authorize the retention ‘of whathas been delivered or rendered by reason thereof. (Art. 1426, Coit cde TLCUSTRATION: X is indebted to ¥, but the debt already prescribed Ssnce tbe ation already prescribed, the cbligation is converied from civil to natural where there is no longer a right of action to compel the 2 LS——— Odin (Sasa Sena el ieee ‘evformance Te performance will jst be dependent upon Xs conscensy Te sil voluntary fulled after the period has expired. the debtor canny longer demand the return of what has been delivered. ‘Examples of Natural Obligations i. When without the knowledge or against the wil of tho debtor,» thas person pays a debi which the obligor is net legally bound to bectuse the action thereon has prescribed, but the debtor be, ‘voluntarily reimburses the thd person, the obligor cannot recover rb Ihe ae paid (Art 1425) fi, When, afteran ation to enforcea civil obligation hasfalled the defend: voluntarily performs the obligation, he cannot demand the retum what be has delivered or the peyment ofthe valu ofthe service he sendered. (Art. 1428) lil When a testale or intestate heir voluntarily pays a debt ofthe decor exceeding the value ofthe property which he received by will ory te lave of intestacy fom the estate ofthe deceased, the payment is vad ant cannot be rescinded by the payer. (Art. 1829) -SSENTIAL, sTION 1. Active subject (creditorfobligee) ~ the person in whose favor the ‘obligation ie consitated crthe one who can demand the performance the obligation 2. Paesve subject (ebtor/obligoe) =the person who is required or bound to perform the obligation 3. Object or Prestation = subject matter of the obligation ~ refers to promise ot particular conduct to be performed i the flfillmente renuition of the obligation, which may be to give todo ornot tod. Requistes ofan Object or Pestaton of an Obligation: 4. “Mmastbe posibe, physically and jriicaly. 1 Wemust be determinate, or, at least, determinable according to Pr ‘tablished elements or criteria, Ii, must have possible equivalent in money 4+ Visculam Juris/Eficent Cause/furdical Tie ~ that which binds & patis to the obligation: the reason vehy the obligation exits which ©? beany of the five sources of ebligations. 3 ‘TheRFBTReciewer sents A promised 1 give 2 specific ILLUSTRATION: Thicugh an agree Wet igridebtor or passive subject B isthe In this lusration. A is the obli est eS Obligec/creditce oF the acive subject giving the & reson th agement oc conrac ithe efficent use ordi SSIS JOns General Rae: alright acquired in virtue of an obligation are transmissible. Exceptions: 1 tent mateo clon th ised namie when he see pany or scypoonal nate Le. he quantins THe ale pron hove boon cosdered fn the consintion of the 1 Byatipulon: eg thigh o sublets rane byw = ut may be pressed ty sipunion By pono tre bees as tote uerct-The lw provides ht the righs ofa usutuctaary shall not be transmitted tothe bits, unless tho partic stipulateotharwise SOURCES OF OBLIGATIONS 1. LAW (OBligationser eg) Lave refer to the principles and regulations established in commurity by ‘some authority and applicable tolts people, whether in the form of legislation ‘of custom and policies rcognized and onforced by judicial decision. (Obligations derived from aw are not presumed. Only thote expressly termined in this Code on special laws are demandable. Sech ebligations shall be regulated by: 1a. The precepts ofthe lor which establishes them and7. Obigat, As to awhat hes not been forescen, by the provisions of the Civil ¢, (Art 1158, Ciel Coee) Examples of obligations arising ftom law ae duty of support (Family Cy, and duty topay tres Tax Code). 2. CONTRACTS (Obligations x contrectu) ‘A contract a meeting of minds between two persons whereby one big ‘imelfwith respect tothe other, togive something o torender some sry (Art. 1305, Cit Cade) CCbligations arising from contracts have the force of law between contracting patties and should be complied with in good faith (Ar. tts Cin Cote) 3. QUASECONTRACTS (Obligations ex guastcontac) ‘The furiicl relation resulting from lawful, voluntary and unilateral acs virtue of hich the parties become bound to-ach other to theend that roe ‘willbe unjustly enriched or benefited atthe expense of another. NOMINATE QUASI-CONTRACTS: &. NEGOTIORUM GESTIO -rofes to the voluntary management of property or affairs of another without the knoieedge or concent of Inter. ‘Whoever voluntarily takes charge ofthe agency or management of business or property of another, saithout any pase from the late ‘obliged to continue the same unl the terrnation of the afi and® ‘ecdents, ort require the person concerned to substitute him. cme isin a position o do se, This juridical relation does et art ® citer of these instances: 1. When the property orkusiness is nat neglected orabsndonsd> 2 infact tbe manager has been tacitly authorized by the oven. 2148) The RFBY Reviewer Obligation af the owner: sit me 1 Aout ofious management ay not have been Prey ‘rifled: the owner of the propety or Business who enogs th $dvantages of the sore shal be liable fr obligations incur mats. and shal relmiaurse the officious manager for the ecemary and usefal expenses and for the damages which the Incr ay have stfeed inthe performance of his duties. (Art. 2150) 2. The same obligation pall be Incumbent upon Bim wien the ion of am management had for its purpose the prevent and manifest loss lt it may have been derived nt. 2150) 13, Even though the owner did not derive any benefit and there has been apimminent and morifest danger tothe property or business, the owner is Lablo asunder the frst pasegraph of the preceding ance provided: = The offcous manager has acted in good faith, and bs. The property of businose is intact, ready to be ceturmed to the Cbtgatans of theotTonsmaneger Soar slay Sie ate alo ape Rogar te banc ox prpeey of ent, wht ony pote om the ter abtged overture the sve unt he tena of he ‘fi ed Se den ort require Ue pean conrad 2 Sisttehin,tbeovner sina poston todo se Ast 20) a. Te otscous angel pero he dts wt a te gree cle goodtateote analy nd poy the damage wich vous his pl igleninle ei opted opal eae neta] ‘tin under mrapoment (0 216) 2. Mie tio nanaper deep to another ese allr some ofhs ‘tes salt atl oh acoder ped (ot dec olan oe ter tonard ower tebe fang 4 The ropmobity of two or more offdus manages shall be saminy, em te roragentat mao toceaed Bans he ingot Deser omienert anger a 2) 8. Thott anger sal Ste for ny otous even ih underlay oprtone whch he ovr ma ot scouted embark pen 6CE oy "ns, by fhe has prefered his own intrest to tha ofthe one, the fais to return he property oF business afer demang owe hy 4. lhe assumed the management in bad faith. (Ar. 2147) 6; Eset when the management satu oa property, from imminen! dango, the offiious manager shall be Hable ior, fortuitous events 2 Ifheismarifztly unit to cary on the management; by fy hisintervertion he prevented a more competent person taking up the management. (Art 2148) [HLLUSTRATTON: For his mental health, X ofthis Fahpond an wo Europe for © Uday vacotion. Y seeing the fishes zeedy for hon harvested the me, and sold them to Z ¥ borrowed fom 8 Bes Prepare the ishpond for therext batch Is therenigatioram gist, XandY? ANSWER: None. Since the business isnot abandoned oF negles) merely left the business for vacation and will presumably have inter eben, oie ss ILLUSTRATION: in fear of reprisals, X lef Ris fehpond and wan Europe without any intention of returning Y seeing the fishes rad harvest harvested thesame, and sold ther to Y borrowed from Bie to prepare the fishpond for the next batch, Is there negotiorum go Betcen X and ¥? and if yes ehat will be the consequences of thes? ANSWER: Yes, There is nepotioram seats. Y lawfully, voluntary a Unllateraly took over the business of X that was abandoned/negice 20 there is create juridical relation between them where Xi clst ‘e brovide compensation to Y because if not, X will be unjustly eric at the expense of Y. As the offcious manager oc the gestor.Ycan wld (uct into contacts in relation to the business, such asthe ele to 222 ‘he loan with Bank and these contracts wil kewise be binding ©. Officious Managers: exe management obligation merely ine generally lable solidaiy unk! ‘was done under imminent danger which mekes “The REBT Reviewer SOLUTIO INDEBITE ~ the juridical relation whichis created when. ‘something is received when there 4 no right to demand it and it was unduly delivered through mistake. b. Requisites: 1. There ie no ight to receive the thing delivered 2, Thething was delivered through misteke [Maple Payees ere Hable soliderily forthe return of the payment received by mistake ‘omer example f Quas-Contacs: When funeral expenses ace bome by a third person, without the Anowedge of those relatives who were obliged to give suppor 10 the deceased ssid relatives hall ximburse the thd person, should the Inter clo ceimbursement. (Art 2155) [HEUSTRATION: A, cident ofan bland struck by a storm, found’ decaying body and baried the same without intention for it to be @ ‘ratutous act. Finding % fatber of the deceased, demanded relmbursement forthe cest of burial, Is thete an obligation to reimburse on the part of X? ANSWER: Yes. There nasa lawiu, voluntary and unilateral ac onthe art of Ato bury the decaying body. Since X, the father, is liable for ‘Suppor hei likewise liable to shoulder the funeral expenses of his sort As such, there isa juridical relation created between A ord X, where X is required to reimburse A, because otherwise, X will be “unjustly enriched atthe expense of A 1. A inotead found C, the AUNT of the deceased, may he demand reimbursement? 1b A stranger gives support to a child of another person without the ‘krowiege af the person cbiged fo give support. (An. 2166, Civil Code)_— Obits When trough an acident er other cuse a person injured o Bcc seriously il and he tate or helped while hei not ine conden pre concnt ta criceche hl be lable o pay forthe ori fe Fysian cr ober person sling himy snles the service has bas, fendered out of pute generosity (Ar 2067, Cal Code) 4A ponsen saves the property of aesher pert during fis od, stam Gx other calamity without the knowledge of the ownet (Art. 28 Cay cote 4 DELICT (Obligations ex males ore dette) ‘Dict isan act oromission punishable by lvr which may be govemed by th Revised Penal Code, other peral laws, ofthe Tite on Haman Relations unde the Gil Code. Every person criminally lable for a flony ie alzo civilly lable (Art. 10, Rese Penal Cote) [Not als that under the Rules of Court, whenever @cviinal ction i Institute, the civil action for the civil liability 1 impliedly sesttwtd erent Cie ity eicing from a exisnal act includes: 1 Resthuton- refers to restoration of the thing itself even though it be found in he poteeien ofa ted person who has acquired it by lewd Reparation ofthe damage caused - shall be determined by the Cows taking into consideration of the price ofthe thing and ite sentimen’s value © Indemnieation for consequential damages shall include not ony thes ‘tusedtheinjared party but also those sulfered by his family orby thi Detsonby reason af the erie. (Art. 108, Rest Pen Coe Proofnecessary: 2 Criminal ability ~ proof beyond reesonable doubt , Givi ably ~ preponderance of evidence po REBT Reviewer itl of acusel ‘AeTreiitel because the acused did not doth at complained of-no dil, visbity ip. Anita due to reasonable doubt —there con sll be ci iii. enployr's subsidiary laity anemployer engaged inany kind of industry thal be subsidiary liable for llonies commited by their employees in the ‘Jechrge of tir dues (40.103, Revie Pens Cade) Porous Exempt from Criminal Liabiity: 2 "Animbeale er insane person. A person under 18 years of age ©. Anpperton who acs under the compulsion of an iressibeforca, 4. Any person who acts under the impulse of an uncontrollable fear of an qual or greater ing Purons Exerap from Both Civil aul Criminal Liabiliry: 2. Any person who acts in saltdeferee of one-self of relatives or of strange. ‘Any person who acts nthe performance of his duis or cbligations. Avtemaa sufering from batiered woman syndrome 5. QUASLDELICTS (Obligations ex qus-dello cree quasi nalefii) Whoever by actor omission causes damage to another, there being fault oF Begigenc, obliged to pay fr the damage done. Such fault or negligence, # there is no preexisting contractual relation between the parties, is clled 4 ‘qushdelt (Art 2176, Cif Cae) Tere is no. pre-sxising relation (contract) between the offender (espondent-defendant) and offended pare (complainant-plainkf) (However, exceptional cass allow filing of civil action based on quasi- it despite the presence of contractual relations i the act that violated ‘ke correct cnet etuos act nits) We exis rrongful actor omission imputable on the defendant ‘eason of is faut or negligene® eS Z Thee exist a damage or hry which must be proved by the porton ‘himing recovery (paitit-complainan) 10 i_ Oigaton 4. There musth a direct causal connection ora relation of ause and of, ‘between the al oF negligence and the damage orinory or that Ua fee ‘or negligence bo the ease ofthe damage or injury. Here the act wis diving rcklnly; there was nepligence, sce the rrured gre of ate was Bt me: there was damago fo the pedeting (iho wes injured and the cause ofthe demage was the reckless dng Lapeer reel | Vierous Lnbilig Under Art 2180 of the Civil Colo, the follwing response for the damages caured by: Aa donate ‘Minor culdren who liven thelr company Who is esponsible? “The father, n esse of Rs death or incapacity, the Guardians ‘Owners and Managers a establishment * enterprise Employers ‘Minar and incapacitated persons Employees inthe service of the Branches fa which they are employed or on the occasion of hel fundtions Employees end Rouschold helpers acing ‘shin the scope oftheir assigned tasks, even ifthe employer isnot engaged in any business or nut Special agent except when the damage was used by theofficial to whom the task done The Site se RET Reviewer ror the enplse, specially, he is able to prove due diligence in the er on and supervision of the employee fense is not availble 9 Note that this defense is not 8 Metis arising froma delctor crime. the employer's subsidiary is-Delict ws. Crime!Delict aaa righ violated by a quasicdelict i a private sight while the right ‘rolated by a crime sa public right. tp. Inquasisdelit the name ofthe case e Private-Plaintit vs. Respondent or ‘Defendant while in eime thename of the case is People ofthe Philippines scouted. Every quasi-elit gives rico to lability for damages te the injured party bat there ane erimes from which no civ! Habiity arses. 4 Quasideliet can be compromised but eximinal ability for imprisonment and fines can never be compromised except in ease of vienna nagligance fe Inquasicdlict criminal intent is not necessary, while in exime, criminal ston is necessary excep in (1) eiminal negligence and (2) ria probit corcrimes iehere good faith is nota dofense where criminal intent is not required, Chime arising from quasi deliet must be proven by preponderance of ‘evidence while conviction for erime must be proven by proof beyond reasonable doubt although civil damages arcing from crime may be proven only by preponderance of evidenceby the private offended party Plieif oe views a the crime MULTIPLE SOURCES OF OBLIGATIONS: asingle act canbe the cource of ‘aliple sources of obligations, and Trade Defense the responsivity shall cease when the persons above-mentionel rove they cseved al he dignc ofa goo father of family tpreve® amaze. [propery pertains Pops and student orappriniicn coTongae [Taaiae or ends ol) [WUSTRATION: D, a watbdchen aching vey) Bile Xo they rensinin thei astedy Establishments of Aas | POdestian, and injured P his passenger. The ovener of thc taxi is 0 (the ‘rployeeofX). What are the sources of obligation that may aise? 1 OnthepartofD, the diver his Habiity willbe: 2 AstoX (the pedestrian) 4. Delict- or reckless imprudence resulting to homicide Quasi-Delic ~ since all the requisites for quasi-delict are Present 2= Obtptin, AL Quast Dalit = since all th requis for quests preont Contac cannot be the source of Habilty en the part o the D (tho eves ‘Snot the contract of eariage ie Between P (the passenger) and O he ‘ovneremploye | Late i Quasi-Delict - vicarious lability of the employer | passenger) and O (he ownerfemployer). Double recovery not allow Responsibility fr fault or negligence under preceding article is entirely separate and distinc from the civil Habit ftising irom negligence under the Penal Code. But the plant creo, recover damages twice forthe same act or omission ofthe defendant (det 2177, Ciel Cae) NATURE AND EFFECT OF OBLIGATIONS ‘CONCURRENT_OSLIGATIONS_IN_OBLIGATIONS_TO_GIv_4 DDETERMINATETHING: Te primary obligation ofthe cebor would 90 delves the thing, which may be ether actual or constructive, and Be folowig sal bes cencrret obligation 1 Totakecare fit with the proper lgence of «gon father of fil tetera nts teres siplation orth law rules athe standard fete. (Ark 163, Ci Ce) 2 Todatverthe eit tho thing fom the time the oigation to deve stars. Note homever, ht the crete wll ot acquires gts °€ the fas rt vere toi. (At 164, Ci Cat) B she RFAT Reviewer ‘persona ight refers to rgh thatcanbe exercised only against specific vi thereby pronibiting an action to recover the ownership or possession Br pecii thing if lead with a third person but only allows ation for Gages against 3 specie person. om heather hand, a neal right refers t2 right that can be exercised agsinat the whale world thereby allowing an action to recover the nership OF ponssson ofa speifi thing regardless ofthe posesor of uch thing, TLLUSTRATION: D obliged imal to deliver to C a parcel of land with fruitbeoring tres on April 15,2020. the trees bore raiton April 35,2000, Dis likewise obliged to deliver the same to C Chas ¢ porn right to demand delivery ofthe fruits. But he does not Scqute ownership over the fruits, or ra ight over them, until they are dalvered to him. Such tat if the fits ane cold by 0 toa buyer in good faith X the latter shall have a beter right over ther. C's remedy isto ack for damages from D but not recovery of possession ofthe fruits (rom X. Kinds of Fras Natural —spontancous preducts ofthe soll and the youngand other product of animals 1b Industral those preduced by lands of any kind through cultivation or labor © Civ are feitsasa result of evization or frit arising ot of jiical relation or contracts such a the rents of building, the price of leases of lands and other property andthe amount of perpetual ore annuities or other similar income, 3. To deliver all accessions and accessories, ever though they may not have been mentioned. (Art 1166, Civil Cove) ‘Avcevons~ include everything which is produced by a thing, oF vic is ‘incorporated or aiached theret, ether naturally or arfically. Accesories ~ refer to those which destined forthe embellishment, se oe thle Preservation of another thing of more ieportance, have fr their object the ‘completion ofthe latter for which they are indispensable or convenient, u= Obtains serie hing, no such concurrent clip, NOTE Inn ebigaton to, a ReNeDIEs £08 BREACH OF OMLIGATIONS OBLIGATIONS TO GIVE: 1. Determine thing ~ speciic performance only if i & legally ant physaly pose, Substitute performances not posite. 2. Gener thing~ fe Specic performance oF BF sitsitute performance ~ the creditor can have another person ty ave sich kindof thing bo dior a the cot ofthe deter ha mage. (At 165 Ci Code OBLIGATIONS TO DO: If» person abligad todo something fs o doit ‘he sare shal be executed at his cos. This same rle shall be observed ihe oes itincontavetiono the tenor ofthe obligation Furhermory, stm be decreed that what has been poorly done be undone, (Ar. 1167, Ci Cat Only subsite performance is available since freing the obligor to comply would violnie the constituticnal prohibition agaist involuntary ssritse adr AI, Sec. 18, pa. 2 of te 1887 Constitution which provides: “No Inclnry sre im any form shal eth excepto paint fr rine ohh ply sal hace bo dy conoid.” OBLIGATIONS NOT TO DO: and the cliger does it the creditor may have itundone athe expense ofthe debler. (Art. 166, Ci Cae) KRESCISSION IN RECIPROCAL OBLIGATIONS: Reciprocal obligation ‘eerste type of oblgetion which arses from the same cause and in ich ‘schpaty isa dsbiorand ereditor ofthe other, such thatthe obligation o one |s dependent upon the obligation ofthe other. Examples: Contact of st tne, ese common carietor service. Rescston in riprocal cligation, otherwise known as “zesoluton’, B Drimary remedy where the cause of action 6 substantial or fandamertal breoch or non-compliance. This is avaable ence a party is ready’ to ecm ‘with ls par ofthe obligation and the other nl. Ths doesnot, HOWE it thermody oft party ready t perform his pat othe obligation 15 “phe RFDT Reviewer the injured party may opt to ask for the exact fulfillment or ert Rl te Geet performance of ebligation with damages, but he en no longer ask see rire ranean of Dlgaon afer inal sleon of ct futinet , vere i cating falimento specie performance becomes feplly Her tna ection the ined pry may ecep onal esk fereemsin of he oblpaton. ini jon or cancellation of the Hence, if the injured party lected resis ‘oligaton plus damages, be row absolutely prohibited from arking exact faifliment of the obligation Decaise they are inconsistent remedies (seal Jute Term, then curs re sutorice to ust fica period inset of ddecngrescision) DAMAGES ~ an action for damages may be demanded in ease of ren {ullment of an obligation KINDS OMENTALE 1 Moral ~ are damagot warded by reason of physical sulfering. mental anguish, fright, serious ansoty, boomirched reputation, wounded fesings, moral shock, sodal huzllation. and sinllar injury. They are swntded inthe folowing «380 ‘Acriminal offense resulting in physica injures; ‘Quastedetcts causing physical iris: Seduction, abduction rape or othe lascivious aes; ‘Adultery or concubinags: legal or atitrary detention or arrest; gal search {ibe slander or anyother form of defamation; ‘Malicious prosseution: ‘Acts mentioned in acile 30 of te Civil Code; ‘Acs and actions refereed tn aticles 21, 26,27, 28, 29,30, 32,38, and ‘of the Cul Code (Art. 2219, Cid Cos) Witla injury to property may bea legal ground for ewarding moral slarages the coiet shoul find that der the crcumetances, such damages arojusty dvs. 6— Oblate, 1. Te same rule applies to breaches of contract where the defendin evel faudulenily inti ath (Art. 2220, Cc Cade) 2, Eeemplary-aredamnges imposed, by way f example oF corcton fg the pbc good, edition to the mora, temperate, ligidated ¢ compensatory damages. Moral end Exemplary Damages may be imposed together with iy Sveceesing othe four typeof damages or may be aearded in additce tothen, 4 Nominal ave damages edjadicated in order that ight ofthe paint which har ben lated or invaded by the defondany may be windilet ‘rrecopizes, ad not fr the purpose of indemnify the pint ny is suffered by hi, 4 Temperate ~ are moro than nominal but less than compencatn damages They aay be recovered when the court finds that som pecienay loss has heen euffered but is amount cannot, fom the at ‘th case be provided with certainty. '. Acual ~ are those pecuniary losses suffered and duly proved by de Phintit The 4 te only type of damage that would roquire pre. Example: LeelInerest (Lega interest of % per arn starting July 2013, and 1% before Jal 1, 2013) 6 Liguidstodore damages agroed upon bythe parties tos contract whe paidin case of reach there I refers to the type of demages thts sued by the court but meroly applied based on the contac stipultn of the pois, Thisis akin to penalty in an ebligetion with petalcause. REMEDIES OF A JUDGMENT CREDITOR IN A SPECIFIC ACTIOX SUIT: udgerterecitor ie cne who hae succssfally obtained a fvorae udgrent in a vil action to exet falfillment or a specie performance, il have the folowing remedies: 1. “Tolewyty attschment and exceation upon al the property of the debit fnchadng gamishiment of bank deposits, except those prove ‘ep bylaw rom execution ‘Toorero allright and actions ofthe deb, except those rights Wn ‘einheretly personal to him. Acco Subogeoria) ine REBT Reviewer ies of con Seboria ne db’scrte rate cent a ay cis against his i The cece must have pursed all propre f the debtor eject tboecton «¢_eghtol acon mst notbe purely perersh and {Theatr hoe ight of acon exerci mest be indebted tothe csbitor |4. Toask or the rxcesion cancellation ofthe contracts made by the debtor in fea of creditor’ rights. (Aci Pain) itso Aion Pion 1 rat he ali aking for ein hs @ cet pro 6 the Sleronathogh demands aes bs The he ctr an made soba cnc exon Forlmorl enna bind pee Tut ior taro ater ep ome os ici bt wrk tect scan of thecreyane tothe thd peso, 4. attesting impopred feud and The te Od pov eho sce ie propery conveyed. by ‘eeu tle habe an acomplia 4. Toflean action for damages agin the third pecton who acquire the property of debtor in Bd ai, ‘Srecirtc CIRCUMSTANCES AFFECTING OBLIGATIONS IN GENERAL, ‘hose who in the performance of thelr obligations are gully of fraud, eligene, or delay, and those who in any manner contavene the tenor ‘hero, aro ible for damages. (Ar. 1170, Cl Cae) 3 TRAUD (Da1L0) espns ang fom fe is daandsble nll bias 1 mantle nal aligns An ‘alver of an action for future froud is void. (Art. 1171) Y nsf rane * Dolocnsane (al Gono fin cang consents appah yt blgatre we conser cnr, ech scan 18 5bate ts affects thewaliity thereof making i voldable. There is rad whey through inddiou words or machinations of one of the cont pases the oho ced to enter into a contract which thot te Pe would netheve agreed to, (Art 1338) Under this kind of fraud, the party would net have entered into Siterct were it not for the food; armulnent i the romedy ofthe pay, ‘Ghose consent wae obtained through feud, TBaanple: material mistepresenations made in an application fx inverance. bb Deloincidene(incdental fraud) -the deliberate ane intentional vase cf the normal fulillment of the oblgatin. This is fraud in te ofthe obligation and applicable to obligations assing en Eiyaouree This Kind, however, doesnot affect the validity of theconne fret makes tbe party gui of aud ible for damages. Under this hind, 9 pasty would have entored the obligation with without the fraud. The proper remedy is not the annulment of t lligton but for damages, ‘ample tx evasion, where the payment of taxes i lowered thet lege means suchas under daiaation of income o over-echratond expenses. Water 2 Far ra - Waiver of an action fr ftur aud is void becuse centery fo low and. public policy. Sach veniver wil erent? ‘omission of eine Pat raud- Waiver ofa action for past aud may be considered! ‘onthe pat of plaintif and defendant provided publi interests ae» Involve Hovver, te post oud involves publi crime the we of cil dawages made By the private complainant in favor of dkfendant ll not bar the state from continuing the posecton criminal, ey ee ‘he REBT Reviewer ‘2 NEGLIGENCE (CULPA) netgnce: onsets in he ovission ofthat ilignce which sree by the ature of the eon ofthe time ard ofthe pce (Art. 1173 Cie Cold ‘obligation and corresponds with the circumstances of the eaporitlily arising from negligence In the performance of every kind of ‘Rigatoni leo demandable, But such lab may be regulated by the eure acorn tthe drcumstances (Av. 1172, Cif Cee) gre of care required: “asa “Tha equired by Lavi oF fi, Thataproed upon by the partes Inthe absence ofthe iva above diligence of a good father ofa fry. samples of degre of ear requced by laws 2 Contract of common camer - Extraocinary dligence on the part of > Common carters, from the rature oftheir business and for reasons ‘ofpublie policy are bound to observe extraordinary diligence in the viglhnce ever the goods and for the safety of the passengers a. Sefer by then cdg ale dcursanes ofeach ese common caries bona o carey’ the patsongers safely ae far a¢ Thurman care and foresight can provide, using the wimost dlgence of very cuss persons with ade regard forall the circumstances. Contract of Necessary Deposit (Things brought in hotel or motel) ~ Extraordinary diligence oa te pat of hotel or mote or inn keeper Te hot business ike the common cri’ business is imbued with Public inert Catering to the public hotetheper are bound to provide ‘ot ely lndging for Rotel guests and sscurty to thei person ond Seergings The tin dy cee the eee of he ures Tre lawintum does tallow sacha tothe pe tobe nega or ited ‘by any coniary stipulation in old “undertaking” that oedinatly 2pzer in pepe ors mse by hod Bez on ges or etOdie, Banks -Extaceinay ilignce on the part ofthe bank. The fducin ature of honking rogues high slandard of integrity ad petformane, Kinds of Negligence esto SOURCE: 2 Culpa Contoctual ~ contractual negligence ~ or AeligeMee in de etfomancs of contractual obligation, ‘ [TULUSTRATION: A passenger of @jeopnay I hur because of Te) Aver’ neligence. Hore, there ie contract of carriage between the ‘passenger and the ewaer ofthe jpn; and the negligence was in {elton tothe absence oF Ick f the dligonce ruined ofthe diver (eepresenttve ofthe ownes) by vinta of such contract. As such the passenger can sue the ovener for breach of contract through negligence 1b. Culpa Aquiana “civil negligence or quasi-deict a TLUSTRATION: A passerby iit by the same jeepney from te shove illustration. Hers, there ie no. preoxisting contacts relationship. In this case, the passer-by can sve both the driver andite| a ‘owner for quastdelc. However, thegumer ean ale the dete, sd prove that he exercised the required diligence in the selection and supervision of the driver Calpe Criminal ~ criminal negligence ~ or that which results in be comalsioncfa cimeara dei. TELUSTRATION: In the same Hlostation, the passenger or the passer-by can so the diver fr culpa criminal, ockassimpradence ininally is the driver only. However, civil damages can be ‘covered from the owner employer who is considered subsidiary Table if he drivers insolvent Here, the defense of diigence inte selection and supervision ofthe drive ie not available [Nelgece on th part of he supposed crtitorinjared partys Uisrepigence was the immediate and proximate cause of th i> ‘here no recovery for damages a ‘essing to physical injuries to be exact. Nete that whe can be sued |» STUSTRATION: 9 pedestian not looking where be was Boing tengo cr parked on the toe. Hote tere is no repigenice oh the prt ofthe car own. fa fact if ony damage is cauted tothe ext, Ie pedestrian canbe lable for sich. this negligence was only contributory —he may stil recover damages, [BUT th courts can miigatoor rede te same TILUSTRATION® + pedesian, despite the ironed, crsted the set. He was iby 2drver ofa cat, whoby a ‘gi was movingsince the traffeigh! as te him was green. Here the prosinat catise ofthe loss Is stil the eer hitting the pedestrian. [though the pedestrian wae likawice negligent since he did not stop ‘nthe red light, his negligence was ely contributory. Thus the courts wwillonly reduce oe mitigate the damages he is ened to peLay Kinds of Delay ‘Mors Sclvendi ~ delay onthe pat of the debtor, which may either be: Mora soivenet ox tn eal obligations ii. Mors solvend ex persona: in pereoral obligations fete The debtor becomes lable for damages forthe delay or default oF |i. When thas forits object daterminat thing, the delay or default or tora places the risk of loss of the determinate thing onthe debtor Mors Accipiendi~ delay onthe pat ofthe creditor fects: Le The creditor becomes liable for damages. |i. The debtor may relieve himself ofthe obligation by the consignation tthe thing afer a valid tender of payment. |W, The creditor bears the risk ofthe loss of the determinate thing, 's. The responsibilty ofthe debtor fr the loss of the determinate thing ‘is ecuce and limited to fraud and grose negligence.= OUtEAog, ‘y All expenses for the preservation of the thing after the delay g ‘efault or mora shallbe chargeable to the creditor. & Compersatio Moras delay onthe part ofboth parties fic The delays of bath debtor and creditor are compensiied oF of ‘Therefore, no ene will beable for damages by eason of delay, WHEN CONSIDERED IN DEFAULT: Genera! Rule upon demand, whig may be adil or extrajudicial (Ar 1169, Ci Code) Exceptions ‘When stipulated ~ a due date in itself isnot enough what should ty stipulated ie that thor i no nee fr domand to concider the debtor 3 ofall When the law co declares ~ eg, delivery of » partner's share in th parterhip ‘When rom the nature and the circumstances of the obligation it appeas thatthe designation ofthe te when the thing i lobe delivered or be tervioe fet be rendered eas a controlling motive fr the establish! of he contract ea florist fora wedding 4 When demand would be useless ~ eg. when the debtor alrexé) tuansered the thing toancther; er had it destroyed or hidden © In repro! obligations, where the respective obligations must ke performed simultaneously and one party wasnet ready. (Art 1168, i? (Code Nove however, that ifthe partes agreed to specified due dates fr thei respective ebligations, no delay shall atin ues tere i demand Oblgetion Not To Do» theo ie no delay in obligations not todo, 4 ANVOTHERMANNEn OF CONTRAVENTION (VIOLATION ‘Ths refers fol act which impairs the suet ane ath flfilment of obligation or every kind of defective performance. It reirs othe viniatiendt the fers and conulitons of obligation or defets in the pexformence ‘becbigaton. Jn general every debtor who fails in performance of his obligations is bout 'o indemnity for the losses and damages cautd thereby. The phrase “a? ‘manner contrevene the tno" of the oblgaticn includes any iit act wit B ‘ VENT: isan excuse for non-performance ernine ves by detonation eet ot fos o Fa pers a nog te eet nt Fave een se saeco emmony loved bot MUS be one tower or Hlements: To constitute 2 formitous event the following elements mast Pe cause ofthe uforestn and unexpected ecarrence ox ofthe Fire ae debtor to comply with obligations must be independent of human by Temas be impose fo forete the event tht conttes the cs fro rifitean be reser i must beinpossble to avoid «¢ Thecesurnce mutt ke sch ato render itimpossible or de debtor to frit obligatios ine normal merce, nd, 44 Thecbligar must be fe fom any patton inthe agaravaion of te inary oles General Resi that no personal shall be resporsibl for those ovens which could net be frese, or which though foreseen, were inevitable. (Art, 1174 Ci cae) Exceptions Declared by stipulation; When the natute ofthe obligation cequires the assumption of risk. Insurance contact © Bxpresaly specified by Iw: examples 1A possessor in bad fat. (47.552) | Ifthe biigor i already in delay or has promised the same thing to ‘sro or mote persons who do not have the same interests. (Art, 1165) |i The officous manager may be liable for any fortuitous event under An.2007, ‘When negligence, delay or trad concurred withthe fortuitous event. a= Obtain, KINDS OF CIVIL OBLIGATIONS FECTION AND EXTINGUISHBEN 6. BURKOBLIGATIONS: an obligation whose performance docs my depend pana Fate or uncertsin event oF upon a past event unhney tothe partes andi demandable at once ‘Also demandable et once are Obligations with « reseluary condition cey _rsluory term Since the happening ofthe conditien or the arial thee Catingashes the alssdy demandable ligation. b. CONDITIONAL OBLIGATIONS: In conditions! obligations, oe acquisition of ights as well as the extinguishment of loss of than siteady acquire, shall depend upon the happening ofthe event wives constitutes the condition. (Ar. 1181, Cio Cee) Conditions: ate uncertain events which wields an influence on a ld relaionstip. Kinds of Conditions Rat ‘Suspersive | happening of which ges] to tho obligation (condition preceden) 540 when the obligation Resoinery [happening of whieh a a cntinguishes the ight already existing (condition ssubsoquen’) sepends on the will of iy tothe ric! relation Poses 35 10 whom or where it mee Casual [depends cance Mised | ply depends on wa af arty or arly on ches © apecy_w be | Dvisble—[can be performed ingans _pertormed in parte Indivisible | cannot be performed in parts_| & 10 runber af [ Gonuncte [all mstbeprormed sttgsion “ae tobe [Aerts [ony one mists peared) 2s she ROT Reviewer Ferme win hare are Feral ofthe Festive | ac sstonature ‘Negative | emission ciohow made own 6 [Express [sated theother party Implied | merely inferred Possible | canbe filed at whoiher the “impossible cannot be fulfilled either ligation canbe flfillod oe -conditin dependent colaly on the will of PoTESTATIVE CONDITION ne ofthe parties. Wher ois is dependentesllyon the wil ofthe debtor and the condition {a muspensive in character. (At. 182) Ths sso, because fit were allowed by Thor theresa porsoiity thatthe obigation wl ever arise CCONSTUCTIVE OR PRESUMED FULFILLMENT: The condition shall be ‘domed fuled when the cbligor voluntarily prevents its fuBlimene. (Ar 1186, Cini Cae) IMPOSSIBLE CONDITIONS: shall annul the obligation which depends upon them. Ifthe obligation i divsbe, hat pat thereof whichis no affected ‘bythe impossible or unlawful eanddon shal be valld (Art 1283, Clif Code) Imposibiityscan ther be: 1.” Physically impossible ~ such a a condition requiring the debtor ta go to 2 Leplly impossible ~ such as when itis contrary to law, good customs public poly, such asa condition quiring the debtor to ill somebody, fet 1 When an impossible condition is imposed in an obligation to do, the bigetion and the condition ave treated as void singe the debtor knows ‘hat ro fulfilment con be done and therefore is na serious about being sbi 'n obligations not to door ifthe condition is negative, the impossible ‘endian can jit be isegarded nd the clgaion remaina 6ee Obtisaog, Examples: 1 Toil sl to you my lan if you donot draw a citcle with thre side Hire the condition is actually always fulfilled, Tye not sol drugs if you kil, [EFFECT OF FULFILLMENT OF CONDITIONS: Genert Rule Onco tre condition hasbeen fulfile, i shall etrozt to the de ‘ofthe consttatien ofthe obligation " {mn conden obligation to door net todo, the courts shall determine, in ead «2st thereroactive efecto tho frat. of the condition that hasbeen coms ‘wth taking ito account the agreement ofthe porties, Except 1 Fruits of interests in obligations to give 1 Reciprocal Cbligations the fruits are deemed munud compensate, , Unilateral obligations: in unilateral obligations the debtor sa ue Isentiled tothe futs, unloss a contrary intontion appears TLLUSTRATION: Or jarvary 1,202, 8 promised toselltoB hiehowe nd lot fB passed the CPA Board Exam on October 2022. The howe and lot were lated tL fom Jan 1, 2022, to October 2022.8 pase the CPALE, who shall be entitled to the rentals for the period Jan. £2022 (when the obligation was constituted) to October 2022 (when ie ‘onetion was fulled)? ANSWER: 5, Since the obligation is reciprocal, ie, § to trans ‘vesship ofthe house and lt, and B to pay the price the nuts (= 1m the house and lot and interest on the price) are doomed mul compensated 2. Peviod of prescription = counted stil from the time the condition W* ‘ule, CONDITION WHERE OBLIGATION IS TREATED AS ONE WITH? PERIOD: When he deblor binds himself to pay when hs meats per {050 thecbligation hal be ceemed tobe one witha period. rt 100 u she RFBT Reviewer SUSPENSIVE CONDITIONS WITH A DEADLINE: The condition that ome event happen at @ determinate time shall extinguish the obligation as foam asthe ie expires or fithes become indubitale tha! the event vill not fake place [TELUSTRA TION T will give you my land ifyou marry Xby the December 312082. MitisJan. 12023 tho obligation is extinguished since the time has expired lori X dies before the deadline of December 31, 2022 the obligation is likewise extinguichod since iti slresdy indubitable that the event will not tahe place. RULES AS TO IMPROVEMENT, LOSS OR DETERIORATION: Ani. 1189 provides that in case of obligations to give s specific or determinate thing is subjettoa suepensive condition, the folowing ules shallbe observed incase ofthe improvement, oss or deterioration of he thing during the pendency of the condition: Without fault of the | Obligation sextinguished debioe — With the foul of the | Debior ls Table for debioe damages Without the fault of | Impairment isbome by The the debtor creditor WIth fault of the | Creditor can cher DETERIORATION | debicr 1. Exact fulfilment and ask | for damages 2. Ask for rescission and | damages Bynatareortime | Improvement will inure to thetenefit ofthe creditor "At the exponce ofthe |The debtor shall have no Irrovemenr | €bi0r ‘other right than that granted t0 a usufuctuary. eg. he may remove the improvement if i will not ‘couse damage ta tha thin aObtain, “The above rues ikewise apply to obigeions wi period. The thingie considered Tost when it 1, Perishes 2. Geesoutaf commerce 4. Disappears in such way that ts existence is unknown. or I cannaty revovered. ; 4. ea dearoyed specific thing or determinate thing or delimited genes, thing Realy f Croiter during pendency ofthe conto: Belore the fulillnert suspen condition or during pendency ofthe suspensive condition, tcedior may bing appropriate actions for the preservation of his sight oe tho ceterminste thing suchas fling peo before regional nal cours the isuane of asst paservation ondar over the determinate thing © OBLIGATIONS WITH A PERIOD/TERME A peri isa certain leg of ime which determines the effectivity or the extinguishment of be oblgetion. Unlike a condition, a period ie certain to arrive or rus necessarily come even though itmay net be knaven when, KINDS OF TERM: Definite ~ specific date, eg, Dec. 31, end ofthe yout this yes, withiné months; 2 Indefinite - period may artive upon the fulfilment of o certain eve! whichis certain tohappen. Eg, death 3. Lega ~ impose or provided bylaw, eg. ling of tues; obligation ee support within the first S days the month, 4 olunary~ agreed upon by the parties 5 Joa ~ these fed by cours Sto ofc, a term/period may be 1. Exdie~a period witha sspensive effect. 2, Indiem =a period with aresolutory effec. 2» Iho RFDT Reviower se COURTS CAN PIX THE PERIOD IN) THE FOLLOWING TincoMsrANCES: cde A Dh, pe: repeats, when ne prt asa tthe cscs teblato, he ou sl des sich econ {tea anes the beet anesthe ing a» pend 2 Pe bliation dees nl in eto bat fom te atr andthe ‘Gecmtrcs tenn be ined tot’ period wae nnd the auc ny lathe Gunton eres 1 Tires salah duran ef he prod when depends don te wl ofthe debt (ramp when the obton peyton th teas emt) BENEFIT OF THE PERIOD: Gener Role: Whenever in an obligation a period Is designated, it is presumed to have been established for the benefit ofboth the creditor and sthedebtor Exception from the tenor ofthe ebligation or other circumstances it should appear thatthe period hae been established in favor of one oF ofthe other (ar. 198), Consoguonces of general rile 1. Thedebice cannot te made to pay before the period; 2. The creditar cannot be made to secept payment before the period. TLLUSTRATIONDis mndebtedtoC for P0000 payable on orbelore ] December 31,2022. Con D pay before the due dae? ANSWER: Yes. Because by the tenor of the obligation the pettod was ‘constitute in favor of the debtor. As such he can compel the creditor to recive paymoat oven bofore the due date, DEBTOR'S LOSS OF BENET OF THE PERIOD: the debtor loses the sight ‘emake use ofthe period inthe fellowing cases: 2 When after the ablation hasbeen contacted, he Becomes insolvent ness gives a guarany oF ecu forthe debt= btigation, TLLUSTRATION D i Fndebted t C for PIOGOO due on june 3h, tna. D beesme insolvent on March 31, 2022. tn this ease, the Jnaeieoes is immediately demandable since 1D loses the ight te | smakeuscoftwpergd, ‘b. When he does not furnish to the creior the guaranties or secure, ‘whieh eas promised TILUSTRATION®D borrowed F100,000 nom C payable on December 31, 2822, and promised to deliver his diamond ring 2s security therefor. However, D lost the diamond ring prior to delivery In this ‘cae, the P10,000 is due immetiately since he fled to provide the sccrity a8 promised ‘& Whenby hisownacs he has impaired said guaranties or ccurtes fe ‘her establishment and whon through fortuitous evens they dsappen, ‘unlessheimmeditely gives new ones equally satisfactory; [RRUSTRATION:Dporowed POD EEO om Cpapabo on Desenn] 431, 202, and mortgaged his house as security. On June 30,2022, te house was destoyed by a typhoon. The debt shal be duo an | “demandable on June, 2022, unless the debir ean providea secur whichis equally atistacory- 4. When the debtor violates any undertaking In consideration of which be creditor greed to the pesiod; TLUSTRATION.D borrowed 100)000 ram C payable on Deseret 51,2922, upon the condition thatD would not goto any casino. wer! toacasinoon Mareh3, 272, The dob shall be derandal ao ble on Mert © When the dbtorattsnps to abscond. ‘An step onthe pt ofthe dabior to asco s3sign f ad fat 2 Inventonnotto comply with he obligation. Whats maori hae tei ‘ft debtor skeconding, Ths, ihe merely went cut of te county ‘ecaton the debtor does mat lose the benefit ofthe period since there wes" Intention tras the creditor. a ‘he RFBT Reviewer ayrent by Mistake during pendency of the suspensive condition or perieds 1, If during the pendency othe suspensive sondiion the debtor has pale by mistake a sum of money, the debtor can recover the sum of money, but the interests can be recovered only if the creditor acted in bad faith. Whoever in bad faith accopts an undue payment, shall pay Iogalintrost ifa sumo! money is involved. If during the pendency of the suspensive period in an obligation with 2 ‘sspensive period, the debior has pald by mistake a sum of money, the eblor ean recover not only the sim of money but also additional “interests whether the creditor acid in good faith or bad faith. Anything pid or dlvered before the artival of he suapersive pio, thectiger bg unaware ofthe prod er beleving thatthe oblgaten secre du ond demandable may be recovered, with he rl and fee dung he pene ofthe euspensve sedition or sspensve pesiod he dcbior as delivered a dtersinate oc specie ting by isk, he dior may fe) an acon reinaestns the hag ‘i wihthe cero an aio forindemaifcaton for damages tenga lage whe edn 1 wnawver i lath accpt an due payment shall beable for rite recived or wich should ave Been reed Hf the thing proluces fs He sal thermore be seswerble for an leno Sater he thing fom sy caoe and fo damages fo the eon ede enti s covee. le who In god tath acess une payment ofa thing certain and terminate hal ny be apo oti oe ‘fheanme or aceon a castors nselar she as ee Seer nee he at stented he chal stun te pe ‘See eadontecl eum in pid lered efor the neil ofthe pensive Peso he obligor beng unaware of the pred or bing eee bgsiontias ecome da and denne maybe meow ‘the fruits and interests. " he 2 —= Obitgaben, AsTOPUW TION he CONIUNCTIVE usually use the word “end”, eg, deliver a cow, SEND a darond tng. In thi a, all he prestations must be compe frthin order to fail the obligation. tb. ALTERNATIVE woually use the word “ors, delivers cow, carey, 2 amond ing. I this ase, performance of the one ofthe prestang {uth obligation i Where several objets ae due he flillment of ones stcien AL. RightofChece: generally, tbelongs tothe debtor, exept: ik, When epresly granted tothe creditor ie, teannet be ipa: er ix. When the ight of choices given third party. 1 The deo’ right of hoi is iio in such a way thet he san choose ay prestaton which impossible or unawful or that wh Could not have been the objeto the cligation. Mi. The die, to tke effec, must be commuted Th ‘eommanicaion of the choice made is technically alk Semen” sil The choice cannato part of one and part of anchor ‘44. When fom al the choices. nly one is practicable the debtor sa Tae the right of choi. Logeally the cbligation woul e to dane star which remains Estes Right of coi bong t Torauos Bvent | Extngaied 4M en ‘Value of the last * weeiot[Fratetderor | PMS a Deane ious Deliver easing | someyere, Eten of Debtor st Fauitof creitor= | Reiision= Danae,
Dams debtor 4 » ‘The REBT Reviewer [one Fortuitous | Demand from remaining Event Some were Price of that which wes est Faultof Tost + Damages Debtor Demand from Remaining +Damay «¢ FACULTATIVE: When only one prestation las been agreed upon, but the ebligor may render snather in substitution, th obligation is called facutive Rigi t substitutes snake the subetttion. livays with the debtor. He cannot be compelled to “The obligation] BEFORE aubeition [Bisel AFTER substitution Pee Rent sented "Bough eons rent ASTORIGHTS AND OBLIGATIONS OF MULTIPLE PARTIES 4% SOUDARY OBLIGATION ‘A soldary obligation is ono in which each dabtor i lise forthe entice bigation, or each creditors ened to demand the whole obligation. Salary arise when the obligation: ‘ Expcesly so states (stipulate): Terms which may indicate solidarity: Mancemanada solaris; Joint & severe; In solidum; Juntos © ‘sxparadasente; Individually and collectively Individually; Collective Separately, Distintvely; Respectively; Severally; “| promise to pay" Signed by more than one individual When the lw requires solidarity, 1) When toro oF more heits take possession of the estate, they are solidarity labo for the loss or destruction of a thing devised or oquenthed (Art. £27) M4 ee=_ er nL A iapmen of whats ot de sodary (Ar 2157) ‘oe al en ation requires solidasty. [ENFORCEMENT OF SOLIDARY OBLIGATIONS: 1 The debtor may pay any one ofthe solidary creditors; butif any dement, jadidl or extrajudicial, has boen made by one of them. payment hoz bemade tohim. (Art. 21, Cinl Cole) fi. Novation, compensation, confusion or remission ofthe debt, made any of the soldary creditors or with any of the solidary debtors, sl ‘extinguish the obligation (Ar 1225) 1) Thecreditor who may have executed any of these acts, as wellash tnbo collects the debt, shall be liable tothe others forthe share inh obligation corresponding to them. (Art. 1215, 2. par, Ciel Cole) 2) Theremission made by the creditor ofthe shere which affects ones the soidary debtors doesnot release the late from his resporstit| towards the co-debtors, in case the debt had been totally pai anyone of them before the remission was effected. (Art. 1219, Code) 3) The remission of the whole obligation, obtained by one of sclidary debtors, does not enti hin to reimbursement from he ‘ebtors. (Ar, 120, iil Code) WHUSTRATION A Pond © indiidaaly, -sbary edo, oro, 4 ICC promied to X that he wil paint the house of X rsa Paving he Tt, to whe the Iter agree ‘The entre obligation willbe extinguished by novation Cwithaveanghtot reimbursement from A snd Bf [kao _1consoned teenie cbigation because he hea cus 98 ware indebted to X and 38 she RFT Reviewer 1 The entire obligation will be remissiorVcondonation Cis NOT entitled to reimbarceront extinguished by sik Asolidary debtor may in actions fled by the creditor, avail himself ofall Gefenses which are derived from the nature ofthe obligation and of those ‘which ae personal to him, or pertain to hie own share. With respect to ‘those which personally belong tothe others, he may avail himself thereof only as tegards that part ofthe dabt for which the latter ae responsible, (a. 122, iol Cate) Examples of Total Defenses: 1) Payment by another co-debtor, at to a eubsequent demand of editor, 2) Ifthe contracts woid; 3) Ifthe obligetion has prescribed. ILLUSTRATION: A, Band C jointly and saldaniy, are ndebled to X and ¥,soldary creditors, for P6D,00. A turns out tobe « minor, B's share was condoned by X. a this case, | Ifeoiection it made from A —ho cannot be made to pay eny hing, because he can ease his minority asa toal defense. feollecton is made from B — he ean be made 1 pay P20,000; his share has already been condoned and he can likewise raise A’s ino a PARTIAL cents bia dfese paolo 1f collection fs made from C ~ he ean be made to pay F20,000 ‘ning the vision of Bs sha and A's mina oe defenses. fi ete b Paymentmadeby rw of telnet ing ors etngushes the biatin. Xoo or moe tliary debi of top, the cede say Sore ‘teh fe to acept He who mete pment may dain nae ees ert the ewe cones ‘ ds to each, with the interest for {Re Peyment already made. ithe payment smadetefore the debts ve TRuRRTestfocthe intervening period ey be demanded. (Ar. 1217 Ci Iie one of the solidary debtors cannot, because of his iso Imbure Fis share tothe debtor paying the obligation, such shore shou 6 a ———Obi ‘pebornebyalthisco-lbtors,inproporton edhe debt of each (Art. 2 las por, CoCo) GLINSTRATION. A, Band © jointly and solidaily, are indebted Xand tscidary creditors for P60}000. A turns out tobe insolver,| In this case ifB is made to pay: He shal be Hable to pay the entire PEO00, since the insolvency “oncofthe solidary dabtors do not affect the abligation or the righ tthe crditrsto enforce the same. 2 He can seck reimbursement from C, the amount of F'0,000. Sine (Cis NOT incclvent, he willbe Hable for his share (P20,000) plus portion ofthe share of A, the insolvent debtor (PI0,000), si, Thecreditor may proceed against any one ofthe solidary debtors or sane rall of them simultaneously. The demand made against one of ther tll ot bean abstale to those which may subsequently be directed Sanat the others, 9 log oe the debt has not been fully collected, (At 16, Ci Caled vi. Paymentty asolidary debtor shall not entitle him toxeimbursoment fon ‘iseo-debtorsf such payment made after the obligation has pres or become illegal. (Art 1236, Civil Code) b, IOINTOBLIGATIONS: enone ofthe above circumstances which would give rite to solidarity. # resent, the obligation i considered joint. | joint obtgain sone in which anch ofthe debtors i Hable only 1! proportionate part of the debt or cach creditor is entitled only proportion part of the eet. In jint OBLIGATIONS, there ae a8 (OBLIGATIONS as there ate debtors multiplied by the mamber of eet errects: } 4. The demand by ona creditor upon one debtor, proses the fe efvalt only with repect to the creditor who demanded fe the deb} whom the demand was ae, but mt with respect to tethers a = the REBT Reviewer “The intoruption of prescription by the judicial demand of one creditor upon a debtor docs not benefit the other creditors nor interrupt the reseription ao other deblors. On the same principle a partial payment {Eracknowledgement made by one of several joint debtors does not stop the running ofthe statute of limitations as tothe others; ‘The vices of each obligation arlsing feom the personal defect of a particular debtor or ereditor does notafec the obligation or right of the ‘others “The insolvency ofa debtor does not increase the responsibility of his co- debtors, nor does it authorize a creditor to demand anything from his co- editors, TAUSTRATION: A.B. C Dard Bare lable w X and ¥ for P10000. 1. Here, there is nothing in the problem which would suggest that the partes agree t solidarity in debt or credit nor the law or the ature ofthe obligation require the same, Accordingly, the debtors are pint debtors and the creditors are joint creditors 2. Accordingly, since thore aro § joint debtors and 2 joint creditors, ‘there are 10 debis (x 2~ multiplying the numberof joint debtors ‘with the numberof joint creditors), of P1,000 exch as follows Ais liablefor P1000 to Ais iableforP1,000t0 Bic ible for P1,000 to Bisliable for P.000 0 Cis lable for P1200 to Cisliable for PL0 to Dicliable for P1000t0 Disable for P1000 Eis liable for P1,000 0 Eisliable for P.000 0 KKK KKK Accondngly,X can only elect PLAGO exh fom A,B,C, D or E 4 SLAs ony or, 0X or ¥ 7 ‘A turns out to bea minor this does non any way, affect ities af8,C, Dor E. mone #€A turns ou tobe insolvent this does net. in any way, affet the ilies of8,C, Dor EAS such they wil not shat inthe debt of