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2. Essential Elements/Requisites
Active Subject – creditor/oblige, the party who has the right to demand performance of the obligation
b. Passive Subject – debtor/obligor, the party who is obliged to perform the obligation c. Prestation – the object or subject matter of the obligation. d. Efficient Cause – juridical tie, vinculum juris, legal tie, the tie that binds the parties to an obligation. The efficient cause of an obligation may be any of the following: i. ii. iii. iv. v. Law Contracts Quasi-contracts Acts or omissions punished by law (delicts) Quasi-delicts or torts
3. Law is a rule of conduct, just and obligatory, promulgated by legitimate authority for common observance and benefit.
4. Contract is a meeting of the minds between two persons whereby one binds himself with respect to another to give something or to render some service.
5. Quasi-contract – refer to certain lawful, voluntary and unilateral acts giving rise to a juridical relation to the end that no one shall be unjustly enriched at the expense of another.
Negotiorum gestio – refers to voluntary administration of the property, business or affairs of another without the consent or authority of the latter. It creates the obligation to reimburse the gestor or officious manager for necessary and useful expenses.
b. Solutio Indebiti – refers to payment by mistake of an obligation which was not due when paid. It creates the obligation to return the payment.
6. Acts or omissions punished by law – refer to crimes or felonies or delicts. All persons who are criminally liable is also civilly liable. Civil liability includes restitution, reparation of the damaged caused and indemnification of consequential damages.
7. Quasi-delicts – refer to culpa aquiliana or torts, these are acts or omissions that cause damage to another, there being no contractual relation between the parties.
8. Kinds of obligation:
Pure or Simple
b. With a period c. Conditional d. With a penalty clause e. Joint f. Solidary g. Divisible h. Indivisible i. j. Alternative Facultative
Deliver its accessions (produced by a thing or incorporated or attached thereto) and accessories (joined to or included with the principal thing for the latter’s better use. 1170 pertains to incidental fraud or dolo incidente) b. Deliver the thing c. Delay d. perfection or enjoyment) 11. Specific or determinate – when it is particularly designated or physically segregated from all others of the same class. Actual or compensatory b. Deliver the fruits of the thing (natural. law or nature requires another standard of care) b. 1170) a. Generic or indeterminate – genus nunquam perit (generic thing never perishes) b. Take care of the thing with the diligence of a good father of a family except SLN (stipulation of the parties. 10. Moral . Contravention of the tenor of the obligation 12. Negligence c. Kinds of things a.9. civil or industrial) d. Fraud (this fraud under Art.Kinds of damages a.Grounds for imposition of damages (FNDC – Art.Obligations of debtor to give a specific thing a.
c. Fraud in pactum 14. Temperate or moderate e. Nominal d. Liquidated f. Kinds of negligence: a. Kinds of fraud a. Civil negligence (culpa aquiliana or tort or quasi delict or culpa extracontractual – example: employer of a bus driver of an injured pedestrian c.Delay is the non-fulfillment of an obligation with respect to time. and of the place.Fraud is the deliberate or intentional evasion by the debtor of the normal compliance of his obligation. Criminal negligence (culpa criminal) – example reckless imprudence resulting to damage to property 15. Incidental fraud or dolo incidente – fraud committed at the time of the performance of the obligation c. of the time.Negligence is the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person. . Contractual negligence (culpa contractual) example: the bus driver and his employer of an injured passenger b. Causal fraud or dolo causante – fraud in obtaining consent b. Exemplary 13.
Fortuitous events are those that cannot be foreseen or even if foreseen are inevitable. C – cannot be foreseen or even if foreseen is inevitable c. Ordinary delay b. 1170 i.Rule on Delay – NDND except RTOLD No demand. No delay Except: Reciprocal obligation Time is of the essence Obligation declares Law provides Demand is useless 17. F – free from participation in or aggravation of the injury/damage sustained by the creditor .Kinds of delay: a. Legal delay – this is what is contemplated by Art. I – independent of the debtor’s will b. ii. iii. I – impossible for the debtor to perform the obligation in the normal manner d. Mora solvendi Mora accipiendi Compensatio morae 16. Elements of Fortuitous event (ICIF) a.
Suspensive – the happening of which gives rise to an obligation b. Stipulation b.2 potestative on the part of the creditory: a. Suspensive – the obligation is void b. Law c. Suspensive – the obligation is valid .Kinds of Condition a. Resolutory – the obligation is valid c.obligation is extinguished Except: SLN a. Nature 19.1 potestative on the part of the debtor: a. Resolutory – the happening of which extinguishes an obligation c.Period vs. condition Period certainly arrives while condition may or may not happen 20.18. Potestative – depends upon the will one of the contracting parties c.Rule on Fortuitous event General Rule .
Rescission plus damages or Fulfillment plus damages Note: if creditor chose rescission. e. he can still demand for rescission if fulfillment becomes impossible. Improvement by nature or time – improvement shall inure to the benefit of the creditor . the obligation becomes effective as soon as the time indicated has elapsed or has become evident that the event will not occur (Art. 1185) Divisible and indivisible j. Casual – depends upon chance or upon the will of a third person e. Loss without the fault of the debtor – extinguished b. Impossible – physical or legal impossibility.b. Possible g. 1184) i. Resolutory – the obligation is valid d. Negative – a condition that some event will not happen at a determinate time. but if creditor chose fulfillment. the obligation is extinguished as soon as the time expires or has become indubitable that event will not happen (Art. ii. Deterioration through the fault of the debtor: i. Mixed – depends partly upon the will of one of the parties and partly upon chance or the will of a third person f. Positive – a condition that some even will happen at a determinate time. Deterioration without the fault of the debtor – impairment shall be borne by the creditor (no liability for damages on the part of the debtor) d. 21.Rule in case of Loss. The obligation and the condition are void h. Loss through the fault of the debtor – pay damages c. Deterioration or Improvement of Specific Thing before delivery or fulfillment of condition a. he cannot later on demand fulfillment.
the debtor becomes insolvent.Alternative obligation is one where several prestations are due but the complete performance of one of them is sufficient to extinguish the obligation. ii. The debtor has the right to use the period except: i. unless he give a guaranty or security for the debt When the debtor fails to furnish the guaranties or securities that he has promised When the debtor impairs the said guaranties or securities by his own acts. iii. 22. When after the obligation has been constituted. . 23. When a period is fixed. it is fixed for the benefit of both the debtor and the creditor except if it can be established that it was fixed for the benefit of one of the parties only. iv. unless it has been expressly given to the creditor.Obligation with a period a. NO PARTIAL PERFORMANCE.f. v. Limitations on debtor’s right of choice: a. Complete performance. b. Right of choice belongs to the debtor. Improvement at the expense of the debtor – the debtor has the right granted to a usufruct (right to use the thing). unless the debtor gives new guaranties or securities equally satisfactory When the debtor violates the undertaking in consideration of which the creditor agreed to the period When the debtor attempts to abscond. or when through a fortuitous event the said guaranties or securities disappear.
If one or some but not all are lost without the fault of the debtor – debtor may deliver any of the remainder depending on the choice of the creditor b. If all are lost through the fault of the debtor – indemnity for damages based on the value of the last thing that was lost If right of choice belongs to the creditor a.b. with or without the fault of the debtor – extinguish . If all are lost without the fault of the debtor – extinguish c. If all are lost through the debtor’s fault – creditor may claim the price of any of the objects plus damages 24. If one or some but not all are lost through the fault of the debtor – creditor may claim any of the subsisting object or the price of any of those which were lost plus damages d. before substitution. illegal. If the substitute is lost. or which could not have been the object of the obligation Rule in case of loss: If right of choice belongs to the debtor a. Debtor cannot choose those which are impossible.Facultative obligation is one where only one prestation is due but the debtor may render another in substitution. before substitution. If the principal object is lost. Rules: a. through the fault of the debtor – damages c. If the principal object is lost. without the fault of the debtor – extinguish b. If all are lost without the fault of the debtor – extinguish c. before substitution. If one or some but not all are lost without the fault or even through the fault of the debtor – debtor may deliver any of the remainder b.
(accessory follow the principal) Right of choice to substitute belongs to the debtor only. the possible object must be delivered Facultative Only one object is due (the principal) If the principal object is void. the obligation remains to be valid. with or without the fault of the debtor – extinguish e.d. there is no need to substitute because the obligation is void.Other terms to remember . If the principal object is lost. Same rule applies to facultative obligation in case the substitution has been communicated by the debtor to the creditor.Joint and Solidary obligation General Rule: All obligations are JOINT except: SLN (Stipulation. Right of choice belongs to the debtor unless it is expressly given to the creditor If one or some but not all objects are impossible. no need to deliver the substitute Note: Once the choice is communicated by the debtor to the creditor or by the creditor to the debtor in case the right of choice is given to the creditor. Nature) 27. If the substitute is lost.Distinctions: Alternative Several objects are due but performance of one is sufficient to extinguish the obligation If one or some but not all objects are void. after substitution. after substitution. without the fault of the debtor – extinguish f. If the principal object is impossible. through the fault of the debtor – damages 25. Law. 26. the alternative obligation becomes simple. If the substitute is lost. after substitution.
Jointly and severally b. However.Kinds of Solidarity a. damages and interest may also be charged: . Mancomunada simple Solidary: a. Mixed – solidarity on the part of both debtors and creditors 29. In solidum d. Passive – solidarity on the part of the debtors b. Pro rata c. Juntos o separadamente 28. Mancomunada d.Obligation with a penal clause – penalty takes the place of the damages and interest in case of non-compliance. Proportionately b.Joint: a. Active – solidarity on the part of the creditors c. Individually and collectively c.Divisible – object is capable of partial performance Indivisible – object is not capable of partial performance 30. Mancomunada solidaria e.
1184 (positive suspensive condition) . Others: i. if there is a stipulation for that purpose b.a. when the debtor is guilty of dolo incidente or causal fraud Note: the nullity of the principal obligation carries with it the nullity of the penalty but the nullity of the penalty does not carry with it the nullity of the principal obligation. Novation g. Rescission i. iii. Compensation f. Condonation or remission d. v.Modes of extinguishment of obligations a. ii. Payment or performance b. (accessory follow the principal) 31. Fulfillment of resolutory condition Prescription k. when the debtor refuses to pay the penalty c. Loss of the thing due (only if the object is specific or determinate) c. j. Annulment h. Confusion or merger e. Compromise Withdrawal Death of one of the parties Arrival of resolutory period Art. iv.
the place of payment is the domicile of the debtor 34.Place of payment a. Creditor’s choice c.Application of payment a.Payment by cession – assignment of all the property of the debtor in favor of all his creditors so that the creditors may sell the property and apply the proceeds thereof to the outstanding obligation of the debtor 36.32. If no stipulation and the object is generic. Most onerous d. If no stipulation and the object is specific. Proportionately 33. Stipulation b.Distinctions Dacion No plurality of creditors (may be one or some but not all) Debtor’s insolvency is not an issue but only liquidity Creditor becomes the owner of the Cession All creditors Debtor’s insolvency is an issue Creditor becomes the assignee of the . Debtor’s choice b. dation in solutum) – payment in kind 35.Dacion en pago – (dation in payment. the place of payment is the place where the specific object is located at the time of the constitution of the obligation c. adjudicacion en pago.
Law f.Loss of the thing due as a mode of extinguishment of obligation is applicable only in case the object is specific except: a.property Debtor is released from his obligation Does not affect all the property of the debtor property Debtor is not released from his obligation Affects all the property of the debtor 37. Debtor has promised to deliver the same thing to two or more persons who do not have the same interest d. Debtor has incurred legal delay c. b. Stipulation e. Presumptions as to condonation: a.Confusion or merger of rights of the creditor and debtor in one and the same obligation . The loss is through the fault of the debtor b. Nature Generic thing never perishes – genus nunquam perit 38. When the thing pledged after its delivery to the creditor or pledgee is found in the custody or possession of the debtor or the pledgor 39. When private document evidencing the obligation is found in the custody of the debtor unless the contrary is proved.Condonation or remission – the gratuitous abandonment by the creditor of his right.
with respect to the other. in their own right.Novation is the modification or extinction of an obligation by the creation of a new obligation.40. Changing the principal object or condition b.Substitution of the person of the debtor a. 44.Contract is a meeting of minds between two persons whereby one binds himself.Compensation where parties in an obligation. Subrogating the rights of the creditor 42. to give something or to render some service. Cause or consideration . 41. Expromission – substitution without the knowledge or against the will of the debtor b. Consent b.Essential elements or requisites of contract a. are principal debtors and creditors of each other. Delegacion – substitution initiated by the original debtor 43. Object c. Substitution the person of the debtor c. How Novation is made: a.
Natural elements are those found in certain contracts unless set aside or suppressed by the parties like warranty against eviction or warranty against hidden defects in a contract of sale. kindness) f. compassion. 46. Innominate – without a name: i. Onerous – valuable consideration is given in exchange e. Real – perfected by delivery c. Preparatory – a means by which another contract maybe executed Nominate – with name specially given by law k. place of payment) 47. iii. Remuneratory – the cause is the service or benefit remunerated g.Accidental elements are those that refer to particular agreements of the parties like mode of payment. Do ut des – I give that you may give (this is actually barter.Characteristics: a. Accessory – its existence depends upon another contract i. therefore. Gratuitous – only one party gives valuable consideration (the giver is prompted by his pure beneficence. j. Consensual – perfected by mere consent b. ii. Principal – can stand by itself h. iv. Solemn – perfected by the execution of public instrument d. nominate) Do ut facias – I give that you may do Facio ut des – I do that you may give Facio ut facias – I do that you may do .45. liberality.
within the commerce of men) including future things Requisites: a.48. Public Order. and Good Customs d.all things which are NOT outside of the commerce of men (thus. Violence or physical coercion c. and c. Public Policy. Fraud (dolo causante) 50. Must be determinate AS TO ITS KIND . Voluntarily given 49.Vices of consent a. Mistake b. Transmissible c.Objects . Undue influence e. Intimidation or moral/mental coercion d. Intelligently b. Not impossible e.Consent is the meeting of the minds as to the object and the cause Essential elements of a valid consent: a. Morals. Freely. Within the commerce of men b. Not contrary to Law.
Cause is the reason for which parties enter into a contract 52. Remuneratory contract – the service being remunerated c. pure beneficence of the giver 53. Those entered into by guardians whenever the ward whom they represent suffer lesion by MORE than ¼ of the value of the things which are the object of the contract b. Kinds: a. Those entered into in fraud of creditors d.51.Cause of Contracts a. Onerous contract – the prestations or object or service by the each other b. Kinds: . Those agreed to in representation of absentees. Gratuitous contract – liberality of the benefactor. if the latter suffer lesion by MORE than ¼ of the value of the things which are the object of the contract c.Rescissible Contracts – are those which have all the essential elements or a contract but which may be set aside by reason of equity on account of damage to one of the parties or on third person. kindness. Those which refer to things under litigation if entered into without the knowledge and approval of litigants or competent court e. All others specifically declared by law to be rescissible 54.Voidable Contracts are those that are defective by reason of the incapacity or vitiated consent of one of the parties.
Agreement in consideration of marriage. Sale of goods. Those entered into in state of drunkenness d. other that mutual promise to marry d. Those that do not comply with the Statute of Frauds c. otherwise. Those entered into under hypnotic spell 55. Sale of real property or an interest therein g.a. Representation as to the credit of a third person . Those where ONE of the parties is incapable of giving consent b.Unenforceable Contracts are those that cannot be enforced unless ratified Kinds: a. Special promise to answer for the debt. Those where BOTH parties are incapable of giving consent The following MUST be in writing.00 e. Agreement for the leasing of a real property or of an interest therein for MORE than one year f. chattels or things in action at a price NOT LESS THAN P500. Those entered into in the name of another without the authority of the latter b. unenforceable (Statute of Frauds) a. Agreement that by its terms is not to be performed within a year from the making thereof b. default or miscarriage of another (guaranty) c. Those where consent is vitiated c.
Those which contemplate impossible service f.Void Contracts are those that has no force and effect from the very beginning (void ab initio) Kinds: a. or public policy b.S 60.56. Contract upon future inheritance except in marriage settlements 57.S . 58. Those where the intention of the parties pertaining to the principal object CANNOT BE ASCERTAINED g. Those expressly prohibited or declared VOID by law: 1. Those whose object or cause DID NOT EXIST at the time of the transaction d. Simulated or fictitious contracts c. public order. Those whose object is outside of the commerce of men e. Those whose cause. Donation between spouses during the existence of marriage except moderate ones on occasion of family rejoicing 2. good customs. Sale between spouses except if there is separation of property 3. object or purpose is contrary to law. m orals.S 59. Household service WITHOUT compensation 4.
S 68.61.S 63.S 65.S 70.S 72.S 64.S 71.S 62.S .S 73.S 66.S 67.S 69.
S 77.S 80.S 84.S 85.S 75.S 83.S 82.S 78.S 79.S 76. .74.S 81.
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