You are on page 1of 66

Obligation

obligation is a juridical necessity to


give, to do or not do. (Art.1156, Civil Code
of the Philippines)
Juridical necessity means that the court
may be asked to order the performance of
an obligation if the debtor does not fulfill
it. If an obligation cannot be enforced
through the courts, it may be disregarded
with impunity.
An

Requisites of obligation
1. Active subject (creditor or obligee) - The party who
has the right to demand performance of the obligation.
2. Passive subject (debtor or obligor) - The party who
is obliged to perform the obligation.
3. Prestation - The object or subject matter of the
obligation. It may consist of giving, doing or not doing
something. .
4. Efficient cause - The vinculum or the legal or
juridical tie which binds the parties to an obligation.
The efficient cause of an obligation may be any of the
the sources of obligation.

Examples:

1. D is obliged to give C P50,OOO.00with


interest at 12% per annum on December 31,2015
pursuant to a contract of loan. D is the passive
subject; C is the active subject; the giving of
P50,OOO.00with 12% interest is the prestation; and
the contract of loan is the efficient cause. The
obligation here is unilateral, i.e., only one party is
required to perform a particular conduct.

Examples:
D is obliged to transport the goods of C from Manila to
Cebu, and C is obliged to pay D P1,OOO.00as transport
costs, under a contract of carriage. 'As regards the
transport of the goods which is the prestation, C is the
active subject and D is the-passive subject. As regards
the payment of transport costs which is the prestation,
C is the passive subject and D is the active subject.
The contract of carriage is the efftcient cause for the
obligations of both D and C. The obligations here are
bilateral, i.e., each party is required to perform a
particular conduct.

Civil obligation and natural obligation distinguished

Civil obligation and natural obligation distinguished


A civil obligation (as defined in Art. 1156) is based on
positive law; hence, it is enforceable by court action.

A natural obligation, on the other hand, is based on


natural law; hence, it is not enforceable by court action.
The obligation, however, exists in equity and moral
justice, such that if the debtor voluntarily performs it,
he can no longer recover what he has given.

Example:

M is the maker of a promissory note with P as payee


for P20,OOO.OO. If M does not pay on due date, P
can enforce payment by filing a court action. If P
does not file a court action against M within 10
years from due date which is the prescriptive period
for actions upon a written contract, ~ loses the right
to enforce payment by court action. However, if M
voluntarily makes the payment to P although the
obligation has prescribed, M will no longer be
allowed to recover the payment because in equity
and moral justice; he still owed P the amount of
P20,OOO.OO.

Sources of obligation ( Art. 1157)


1. Law

- A rule of conduct, just and obligatory, laid


down by legitimate authority for common observance and
benefit. (Sanchez Roman). Obligations derived from law are
not presumed. Only more expressly determined 'in the
Civil Code or in special laws are demandable, and shall be
regulated by the precepts of the law which establishes
them; and as to what has not been foreseen, by the
provisions on Obligations. (Art 1158)

Examples: The National Internal Revenue Code which


provides for the payment of taxes; the Anti-Mendicancy
Law which prohibits the giving of alms to beggars.

2. Contracts - A contract is a meeting of


minds between two persons whereby one binds
himself, with respect to the other, to give
something or to render some service (Art. 1305).

Obligations arising from contracts have the force


of law between the contracting parties and should
be complied with in good faith (Art. 1159)

Examples:
A contract of lease which provides for the
payment of rental by the lessee;
A contract of sale which requires the seller to
deliver the thing sold and the buyer to pay
the price.

3. Quasi-contracts - They 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. (Art. 2142).

Examples: (Quasi-contracts)

Negotiorum gestio - This refers to' the voluntary


administration of the property, business or affairs
of another without his consent or authority. It
creates the obligation to reimburse the gestor
for necessary and useful expenses. (Art. 2150)

Example: (Quasi-contracts)
D and C are the owners of adjacent vegetable
farms. One day, D was not around to tend to his
farm, When C noticed that D had not been around'
for almost a week, he himself cultivated the soil
and placed fertilizer on it, watered the plants,
removed the weeds and wilted leaves, C
incurred necessary and useful expenses in the
process. D must reimburse C for such expenses.
Otherwise, he will be unjustly enriching himself at
C's expense,

Example: (Quasi-contracts)
Solutio indebiti - This refers to payment by
mistake of an obligation which was not due
when paid. It creates the obligation to return
the payment (Art. 2154)
Example:
D, the payee of check for P5,000,00 cashes it
with the drawee bank, but the teller gives him
P10,000.00 by mistake. D is duty bound to
return the excess of P5,000.00 to the bank.
Otherwise, he will be unjustly enriching himself
at the expense of another.

Other Quasi-contracts:
1. When without the knowledge of the person
obliged to give support, it is given by a
stranger, the latter shall have the right to
claim the same from the former, unless it
appears that he gave it out of piety and without
intention of being paid in return.

2. When funeral expenses are borne by a third


person, without knowledge of those relatives who
were obliged to give support to the deceased, said
relatives shall reimburse the third persons;
3. When through an accident or other cause a
persons is injured or become serioulsly ill, and he is
treated or helped while he is not in a condition to
give consent to a contract, he shall be liable for the
services of the physician or other person aiding him,
unless the services has been rendered out of pure
generosity.

4. Acts or omission punishable by law (Delicts);


Example: The obligation of a thief to return the car stolen
by him.

5. Quasi delict or Torts.


Example:
a. The obligation of the head of a family that lives
in building or a part thereof to answer for damages
caused by things thrown or falling from the same.
b. The obligation of the possessor of an animal to
pay for the damages which it may have caused.

NATURE AND EFFECT OF OBLIGATIONS


Concept
A thing' is determinate when it is particularly designated or
physically segregated from all others of the same class. (Art.1460).
Examples:
A 2009 Toyota Corolla with engine no.123456 body no. 546611,
and plate no. FRS 840; my only wristwatch; the house located at
234 Moret Street, Sampaloc, Manila; my horse named "Black
Stallion."

A thing is indeterminate or generic when it is not particularly


designated or physically separated from all others of the same
class, i.e, one of a class. Examples: A horse, a car,

Importance of knowing whether a thing is determinate or generic

As a rule, the loss of a determinate thing through a fortuitous event extinguishes the
obligation. (Art. 1262)

Obligations of one obliged to give a determinate


thing.

1. To take good care of the thing with the


diligence of a good father of a family unless the
law or agreement of the parties requires
another standard of care. (Art. 1163)
Diligence of a good father of a family means the
ordinary care that an average person
exercises in taking care of his property.

2. To deliver the thing. (Art. 1163)

This involves placing the thing in the


possession or control of the creditor
either actually or constructively.

3. To deliver the fruits of the thing. (Art. 1164)


a. Kinds of fruits

1. Natural fruits - They are the spontaneous


products of the soil and the young and other
products of animals. (Art. 442) Thus, the trees
that grow naturally on the soil without the
intervention of man and the colt delivered by a
mare are natural fruits. For the young and other
products of animals, they are natural fruits even
with the intervention of human labor.

2. Industrial fruits - They refer to those produced


by land of any kind through cultivation or labor.
(Art. 442) Examples are rice, corn and other crops
produced through the intervention of human labor.
3. Civil fruits - They refer to fruits which are the
result of a juridical relation such as the rent of a
building, price of lease of land and other
property and the amount of perpetual or life
annuities. (Art. 442)

b. When creditor has a right to the fruits of a


determinate thing
The creditor has the- right to the fruits of a
thing from the time the obligation to deliver
it arises. However, he shall acquire no real
right over it until the thing has been
delivered to him. (Art11164)

c. When obligation to deliver the thing arises

1). If the obligation is a pure obligation or


one whose performance is not subject to a
suspensive period or suspensive condition, the
obligation to deliver arises from perfection..

2) If the obligation is subject to a suspensive period


or suspensive condition, the obliqation to deliver
arises upon the arrival of the term or the fulfillment
of the condition.

Thus, if 0 is obliged to give C a specific car on


Christmas day next year, the obligation to deliver
arises only on the arrival of such date. Or if the
obligation of 0 is to give C such car if C passes the
CPA Examination, then the obligation to deliver
arises only upon the fulfillment of such condition.

d. Rights of the creditor


1) Personal right - This is a right that may be enforced
by one person on another, such as the right of the creditor to
demand the delivery of the thing and its fruits from the
debtor. This is also called jus in personam or jus ap rem.

2) Real right - This refers to the right or power over a specific


thing, such as possession or ownership, which is a right
enforceable against the whole world. This is the right
acquired by the creditor over the thing and its fruits when
they have been delivered to him. This is also called jus in
reo

4. To deliver its accessions and accessories even if they


have not been mentioned. (Art. 1160)
a. Accessions - They include everything that is produced
by a thing or is incorporated or attached thereto, either
naturally or artificially, (Art. 440) such as alluvium, the
soil gradually deposited by the current of a river on a river
bank, or whatever is built, planted or sown on a parcel
of land.
b. Accessories - Those joined to or included with
the principal thing for the latter's better use, perfection
or enjoyment (such as the keys to a car or a house, or the
bracelet of a wristwatch).

Remedies of the creditor


Remedies of the creditor
1. If the debtor fails to perform his obligation to
deliver a determinate thinga.
a.

To compel the debtor to make the delivery. (Art. 1165) .

b. To demand

damages from the debtor. (Art. 1170)

Example:
D is obliged to give C a specific car. On due date, C
demands delivery but D does not deliver. In this case, C
can compel D to deliver the car because there is no other
person in possession or control of it. C can also demand
payment of damages from him.

2. After the debtor fails to perform his obligation to


deliver a generic
a. To ask that the obligation be complied with at
the expense of the debtor. (Art. 1165)
b. To demand damages from the debtor. (Art. 1170)
Example:
D is obliged to deliver 10 sacks of rice to C. It D does not
perform his obligation as stipulated, C can obtain 10
sacks of rice from other sources at the expense of D. C
can do so because the thing is generic and thus can be
replaced with the same kind. C can also ask for damages
from D.

3. If the debtor fails to perform his obligation in


obligations to do
a. If the debtor fails to perform the obligation or
performs it but contravenes the tenor thereof1) Creditor may have the obligation executed at the
expense of the debtor. (Art. 1161)
2) He may also demand
debtor. (Art. 1170)

damages from the

Example:

D is obliged to construct a hollow block fence for C. By agreement,


the fence will be 2 meters high and 10 meters long, fine-finished and
painted. If D does not perform his obligation, C can ask another
person to, or he himself may, construct the fence at the expense of
D. . C can also ask for damages from D. C cannot compel D to
perform the obligation because compulsion will violate D's right
against involuntary servitude.
If D constructs the fence but did not follow the measurements
agreed
upon (i.e., there was contravention of the tenor
of the obligation), C will have the same rights
1) Creditor
may have the same
expense. (Art. 1167)

be undone at debtor's

2) Creditor may also demand damages from the debtor.


(Art.1170)


Example:
If in the same illustration above, D constructs
the fence following the measurements
but it was not properly aligned, the finishing
was rough, and materials used were
substandard,
C can have the fence be
demolished by another person or even by
himself at D's. expense. C can also demand
damages from D.

4. If the debtor does what has been forbidden him


a. The creditor may demand that what has been done be
undone.
b. He may also demand damages from the debtor. (Art.1168)
Example:
B bought a farm lot from S. However, the only access from the
road to B's lot is the lot of D. So B entered into a
contract with D for a right of way over a period of 10 years
and paid a sum therefor. It was agreed that for the duration
of the contract D would not construct any fence between B's
lot and his. Sometime thereafter, however, D constructed a
fence in violation of the agreement. B may demand that D
remove the fence at D's expense.and pay damages.

Grounds for liability to pay damages

1. Fraud
2. Negligence
3. Delay
4. Contravention of the tenor of the obligation.
(Art. 1170.)

Damages
1. Concept, distinguished from injury

Damages refer to the harm done and the


sum of money that may be recovered.

Injury refers to the wrongful, unlawful or


tortuous act. It is the legal wrong to be
redressed.

Kinds of damages (MENTAL)


a. Moral damages - They include physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded feelings, . moral shock,
social humiliation, and similar injury. (Art. 2217)
b. Exemplary or corrective damages - These are imposed by way of example or
correction for public good, in addition to the moral, temperate,
liquidated or compensatory damages. (Art. 2229)
c. Nominal damages - They refer to damages to vindicate a right. (Art. 2221)
d. Temperate or moderate damages - They are more than nominal but less than
compensatory damages, but may be recovered if the court finds that some
pecuniary loss has been suffered but its amount cannot, from the nature of the
case, be proved with certainty. (Art. 2224)
e. Actual or compensatory damages - These refer to the pecuniary loss, (such as
loss in business or profession) that may be recovered. It includes the value of the
loss suffered and profits not realized. (Art. 2199)
f. Liquidated damages - Those agreed upon by the parties to a contract, to be paid
in case of breach. (Art. 2226)

Fraud
1. Concept
Fraud is the deliberate or intentional evasion'
by the debtor of the normal compliance of his
obligation. Under Art.1170, this actually refers
to the fraud committed by the debtor at the
time of the performance of his obligation.

Kinds of fraud in general


a. According to meaning
1) Fraud in obtaining consent
a) Causal fraud or dolo causante - This refers to fraud
without which consent would not have been given. It
renders the contract voidable.
Example: B bought a ring from S who told. him that the ring
was embellished with diamond. However, S knew all alorig
that the embellishment was not diamond but ordinary glass.
B here gave his consent because of the fraud employed by
S, hence, the contract is voidable.

b) Incidental fraud or dolo incidente - This refers to


fraud without which consent would have still been given
but the person giving it would have agreed on different
terms. The contract is valid but the party employing it
shall be liable for damages.
Example: C hired D to teach in the school of C. D placed
in his application that he had earned units in MBA.
However, D had actually dropped the subjects for the
said units. If C would have hired D even if D did not
complete the said units but that he would have given
a lower salary to D, the fraud committed by D was only
incidental but it would entitle C to recover damages.

2) Fraud in the performance of the obligation


This is the deliberate act of evading fulfillment of
an obligation in a normal manner. This presupposes an
existing obligation; hence, the fraud has -no effect on
the validity of the contract since it was employed
after perfection. However, the party employing it shall
be liable for damages. (Art. 1170)
Example: B ordered 10 bags of powder soap from S who
agreed to deliver the same after 2 days. On due date, S
delivered 10 bags of powder soap which he mixed with
chalk. This is fraud in the performance of an obligation
which entitles B to recover damages. The fraud,
however, does not have any effect on the validity
of the contract.

b. According to time of commission


1) Future fraud
A waiver of an action for future fraud cannot be
made. If there is an agreement for its waiver, the
same is void. (Art. 1171)' Thus, the debtor will
still be liable for damages if he commits fraud
in the performance
of his obligation despite
the waiver.
2) Past fraud
A waiver of an action for past fraud may be made,
since the commission of fraud can no longer be
encouraged. Such waiver is an act of liberality on
the part of the creditor.

Negligence
1. Concept
It

is the omission of that diligence which is required by


the nature of the obligation and corresponds with the
circumstances of the person, of the time, and of the
place. (Art. 1173). It is the failure to observe, for the
protection of the interest of another person, that
degree of care, precaution and vigilance which the
circumstances justly demand, whereby such other
person suffers injury. (National Power Corporation
vs. Heirs of Noble Casionan, supra; Guillang vs.
Bedania, G.R. No. 1629a7, May 21, 2009) .

The test of negligence is whether the defendant in doing


the alleged negligent act used that reasonable care and
caution which an ordinary person would have used in the
same situation. (GuiJlangvs. Bedania, supra)

If the law or contract does not state the diligence which is


to be observed in the performance of the obligation, the
debtor must observe the ~iligence of a good father of a
family.

Examples:
a. If the obligation is to deliver a specific window
glass, the debtor must ensure that the glass,
considering its fragility, is well-protected when
he transports it as required by the nature of the
obligation. Otherwise, he will be negligent.
b. A baby-sitter, 21 years old strong and healthy,
will be negligent if she sleeps while on duty
considering that the circumstances of her person
were considered when she was hired for the job.

c. If the driver of a car drives at night without


any headlight, he will be considered negligent
considering that the circumstances of night
time require such light.

d. If the same car driver drives at 50


kilometers per hour along a busy street where
many people are crossing, he will be negligent
because the circumstances of the place.
require that he should drive slowly.

Kinds:
a. Culpa contrectuei (contractual negligence)
This is negligence' in the performance of a contract (such as
the negligence committed by the driver of a bus when a
passenger is hurt during a trip because there is here a
breach of contract of carriage)
Here, the master-servant rule applies, ie., the negligence
of the servant is the negligence of the master.
Accordingly, the defense of a good father of a family in the
selection and supervision of employees is not a defense on
the part of the employer although it may mitigate the
liability. Thus, in the example, the negligence of the
bus driver is also the negligence of the bus owner.

Saludaga vs. Far Eastern University G.R.No.

179337, April 30, 2008

Facts: S, a student of X University, was shot and wounded by G, a security guard of the
school, while inside the campus. S sued X University for damages on the ground that it
breached its obligation under the enrollment contract to provide students with a safe and
secure environment and an atmosphere conducive to learning. In defense, X University
pleaded fortuitous event on the ground that it could not have reasonably foreseen nor
avoided the accident since G was not its employee, and that it complied with its obligation to
ensure a safe environment for its students by having exercised due diligence in selecting the
security services of the SA Security Agency.

Held: Respondent school is liable for damages for breach of contract due to negligence in
providing a safe learning environment. It is settled that in culpa contractual, the mere
proof of the existence of the contract and the failure of its compliance justify, prima facie, a
corresponding right of relief. The school failed to prove that it undertook steps to
ascertain that the security guards assigned to it actually possessed the required
qualifications. A learning institution should not be allowed to completely relinquish security
matters in its premises to the security agency it hired. To do so would result in contracting
away its inherent obligation to ensure a safe learning environment for its students. The
defense of fortuitous event or force majeure must also fail. An act .of God cannot be
invoked to protect a person who has failed to take steps to forestall the possible adverse
consequences of the loss sustained.

b. Culpa aquiliana (civil negligence or tort or quasi-delict


or culpa extra-contractual)
These are acts or omissions that cause damage to
another, there beinq no contractual relation between
the parties. (Art. 2176)
The master-servant rule does not apply. Hence, the defense
of a good father of a family in the selection and supervision
of employees is a defense on the part of the employer to
escape liability. Thus, if a pedestrian is hit by a bus
through the reckless driving of the driver, the latter's
negligence is not the negligence of the owner.

c. Culpa criminal (criminai negligence) This is negligence that results in the commission of a crime.
Defense of a good father of a family is not proper
because the employee's guilt is automatically the employer's
civil guilt if the former is insolvent.
The passenger of the bus may bring a court action not only
for culpa contractual against the bus owner, but also one for
culpa criminal against the bus driver for physical injuries
through reckless imprudence. In the same way, the pedestrian
may bring not only a suit for culpa aquiliana against the
driver and the owner, but also one for culpa criminal against
the bus driver for physical injuries through reckless
imprudence.

Delay or default or mora


Concept
Delay or default or mote
respect to time.

is the 'non-fulfillment of an obligation with

Kinds
a. Mora solvendi - Delay on the part of the debtor.
1) Ex re - Delay in real obligations (obligations to give)..
2) Ex persona - Delay in personal obligations (obligations to
do).
b. Mora accipiendi - Delay on the part of the creditor.
This exists when the creditor refuses to accept the thing due without
justifiable reason.
c. Compensatio morae - Delay in reciprocal obligations, Le., both
parties are in default. Here, it is as if there is no delay.

When debtor incurs in delay in obligations to give


or to do, requisites:

General rule: The debtor incurs in delay from the time


the creditor demands fulfillment of the obligation but the
debtor fails to comply with such demand (no demand,

no delay, as a rule).

The following are the requisites

of delay:
a. The debtor does not perform his obligation on the date
it is due.
b. The creditor demands the performance of the
obligation. c.
The debtor does not comply with the
creditor's demand.

Example:
D owes C P5,OOO.OO. The obligation is due
on May 15. If D does not pay on May 15, he
is not yet in delay. But if C makes a
demand on him to pay on that date or
thereafter and D does not comply, then D
will be in delay.

Exceptions, i.e., delay will exist even without


demand in the following cases (Art. 1169):

a. When the law so provides.


Thus, where the law provides for the payment of
penalty if the obligation is not performed on due
date (such as in the case of taxes), then demand
shall not be necessary.

b. When the obligation expressly so declares.


Hence, no demand is necessary if a lease contract provides
that "(T)he rental shall be paid by the Lessee within the first
five days of the month in advance without need of demand."

c. When time is of the essence of the contract.


Thus, where a rent-a-car company is obliged to provide for
the bridal car during a wedding at a particular date, time and
place, the said company is liable if it fails to perform the said
obligation notwithstanding the absence of demand since time
was a controlling motive for the establishment of the
contract.

d. When demand would be useless.


Thus, the debtor will be in delay even without demand from
the creditor if the thing he is obliged to deliver has been
destroyed through his fault or he has delivered it to another
person.
e. In reciprocal obligations, where the obligations arise
out of the same cause and must be fulfilled at the same
time,
from the moment one of the parties fulfills his
obligation, delay by the other begins notwithstanding the
absence of demand.

Note: There is no delay in an obligation not to do as one


cannot be in delay for not doing something.

Effects of delay
a. The debtor shall be liable for the
payment of damages. (Art. 1170)

b. If the obligation consists in the delivery


of a determinate thing, he shall be
responsible for any fortuitous event until he
has effected the delivery. (Art. 1165)

Fortuitous events

1. Concept
Fortuitous events are those events that could not be .
foreseen, or which, though foreseen, are inevitable. (Art.
1174).
It is not enough that the event should not been foreseen or
anticipated, but it must be one impossible to foresee or
avoid. (Sicam vs. Jorge, GR. No. 159617, August 8, 2007)

Examples: Natural calamities or acts of God such as


earthquake, typhoon and lightning; and acts of man ("force
majeure") such as war and armed robbery.

Elements
a. The cause must be independent of the debtor's will.
b. There must be impossibility of foreseeing the event or
of avoiding it even if it can be foreseen.
c. The occurrence of the event must be of such
character as to render it impossible for the debtor to
perform his obligation in a normal manner. (See Sicam
vs. Jorge, G.R No. 159617, August 8,2007, for similar
elements or characteristics.)

Liability for fortuitous events

General rule: No person shall be


liable for fortuitous events, i.e., his
obligation will be extinguished.

Exceptions to the rule (Art. 1174):


a. When the law. expressly provides for liability even in
case of fortuitous events (such as that provided in Art.1165
where the obligor is liable for fortuitous events if he delays
or has promised to deliver the same thing to two or more
persons who do not have the same interest).
b. When the parties have declared liability even in case of
fortuitous event.
c. When the nature of the obligation requires the
assumption of risk (such as the obligation of an insurer who
must pay the policy holder even if the loss is caused by a
fortuitous event if the cause thereof is the risk insured
against).

Burden of proving loss due to fortuitous event

The burden of proving that the loss was due to


fortuitous event rests on him who invokes it.
And, in order for a fortuitous event to exempt
one from liability, it is necessary that he must
have committed no negligence or misconduct
that may have occasioned the loss. (Sicam vs.
Jorge, supra)

Presumptions on receipt of principal or of later installment


(these are disputable presumptions and evidence may be
introduced to the contrary by the creditor) (Art. 1176)

1. The receipt of the principal without reservation as,


to interest, shall give rise to the presumption that the
interest has been paid.
2. The receipt of a later installment without reservation
as to prior installments, shall give rise to the
presumption that such prior installments have been
paid.
The above presumptions are disputable; hence, they
may be rebutted by contrary evidence. If the
presumption is conclusive, then no evidence to the
contrary may be admitted.

Remedies of creditor to enforce payment of his


claims against debtor (Art. 1177)
1. Pursue the property in the possession of the debtor, except
those exempt by law.
This is usually by attachment where the creditor files a court
action to exact fulfillment with a prayer that the court set aside a
property belonging to the debtor. If the court decides infavor of
the creditor and the debtor does not pay, the property
attached will be ordered sold and the proceeds thereof applied
to the payment of the obligation.

Exercise all the rights and bring all the actions of the
debtor except those personal to him (accion subrogatoria).

Example: A owes D. D owes C. If C files a court


action against D to collect, he may ask the court to
order A not to pay D so that in the event that the
court rules in favor of C, A will be required to pay
C. In effect, C is exercising the right to collect
from A which is a right that belongs to D.

Impugn the acts which the debtor may have done to


defraud his creditors (accion pauliana).

This remedy must be of last resort. The creditor must have


taken the successively the foregoing measures before he
can bring this action. (Metrobank vs International
Exchange Bank, G.R. No. 176008,August10, 2011)
Example: D owes C P50,000.00. To defraud C, D sells his
lot, his only property, to B who knows of the fraudulent
intention of D. C may ask the court to order the rescission
of the sale made by D. Once the sale is rescinded and
the lot is returned to D, C may ask the court to order its
attachment and its sale at public auction, and the proceeds
of the sale applied in payment of his claim.

DIFFERENT KINDS OF OBLIGATIONS


(Primary classification under the Civil Code)
1. Pure obligation
2. Conditional obligation
3. Obligation with a period
4. Alternative obligation
5. Facultative obligation
6. Joint obligation
7. Solidary obligation
8. Divisible obligation
9. Indivisible obligation
10. Obligation with a penal clause.