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Oblicon > Chap 2 - Nature and Effect of Obligations > Flashcards

Chap 2 - Nature and Effect of Obligations Flashcards

1
Q

What is a specific or determinate thing?

A

A thing is said to be determinate if it is particularly designated and physically segregation from other things in the same class.

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2
Q

What is a generic or indeterminate thing

A

A thing is indeterminate if it is designated merely by its class without particular designation or physical segregation from other things in the same class.

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3
Q

What are the obligation of the debtor in a specific or determinate real obligation?

A
  1. To deliver the specific or determinate thing which he has obligated himself to give.
  2. To take care of the thing with the proper diligence of a good father of a family
  3. To deliver the accessions and accessories
  4. To pay damages in case of breach of the obligation.
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4
Q

What are the obligations of the debtor or obligor in a generic or indeterminate real obligation?

A
  1. To deliver a generic or indeterminate thing which must be neither of superior nor inferior quality.
  2. To pay damages in case of breach of the obligation.
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5
Q

What are the rights of the creditor in a specific or determinate obligation?

A
  1. To compel specific performance
  2. To demand rescission or cancellation of the obligation (in reciprocal obligation)
  3. To recover damages in case of breach of the obligation
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6
Q

What are the rights of the creditor in a generic or indeterminate obligation?

A
  1. To ask for performance of the obligation
  2. To ask that the obligation be complied with the expense of the debtor.
  3. To recover damages in case of breach of the obligation.
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7
Q

Define the contents of Article 1163

A

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

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8
Q

What is diligence?

A

Diligence is the care, caution, attention and care required from the person in a given situation.

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9
Q

What is due diligence?

A

The diligence reasonably expected from, and ordinarily exercisable by a person who seeks to satisfy a legal requirement or to discharge an obligation.

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10
Q

What is extraordinary diligence?

A

Extreme care that a person of unusual prudence exercises to secure rights or property.

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11
Q

What is the general rule in the diligence required in a real obligation?

A

To take care of the thing with the proper diligence of a good father of the family.

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12
Q

Explain the exemption: “The stipulation of the parties requires another standard of care”

A

There are cases where the debtor obligor agrees on a higher standard of care which is higher than ordinary diligence or diligence of a good father of a family.

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13
Q

Explain the exemption: “Law requires another standard of care”

A

There are cases where the debtor or obligor in obligation to give must observe a higher standard of care than ordinary diligence or diligence of a good father of a family because a specific law provides. (Example: Banks)

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14
Q

Define the contents of Article 1164

A

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

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15
Q

What is delivery?

A

The formal act of transferring something, such as a deed, the giving or yielding possession or control of something to another.

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16
Q

What is actual delivery?

A

The act of giving real and immediate possession to the buyer or the buyer’s agent.

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17
Q

What is constructive delivery?

A

An act that amounts to a transfer of title by operation of law when actual transfer is impractical or impossible.

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18
Q

What is the concept of Specific Performance?

A

It is the right of the creditor or obligee to compel the debtor to make delivery of the determinate thing if the debtor or obligor will not perform his/her obligation. Specific Performance is requiring the exact performance which is specified in the contract according to the precise terms agreed upon.

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19
Q

In a indeterminate or generic real obligation whose quality and circumstances are not stated, ? (FILL IN THE BLANKS)

A

the creditor cannot demand a thing of superior quality and neither can the debtor deliver a thing of inferior quality.

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20
Q

What are reciprocal obligations?

A

Are obligations where each party is both a debtor and a creditor of the other, such that the obligation of one is dependent upon the obligation of the other. They are to be performed simultaneously, so that the performance of one is conditioned upon the simultaneous fulfillment of the other.

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21
Q

What are accessions?

A

It signifies all of those things which are produced by the thing which is the object of the obligation as well as all of those which are naturally or artificially attached thereto.

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22
Q

What are accessories?

A

It signifies all of those things which have for their object, the embellishment, use, or preservation of another thing which is more important and to which they are not incorporated or attached. In other words, it includes all of those things which are necessary or convenient for the perfection of another thing.

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23
Q

What are the rights of the Creditor or Obligee in Positive Personal Obligations?

A
  1. Have the obligation performed or executed at the expense of the obligor
  2. Ask that what has been poorly done be undone
  3. Recover damages under Article 1170
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24
Q

What are the rights of the Creditor or Obligee in Negative Personal Obligations?

A
  1. If the obligor does what has been forbidden, the obligor is required to undo it at the obligor’s expense.
  2. To ask for damages under Art. 1170
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25
Q

When does delay begin?

A

Delay begins from the time the obligee judicially or extrajudicially demands from the obligor the performance of the obligation.

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26
Q

Enumerate the three instances when judicial or extrajudicial demand is not necessary.

A
  1. When the obligation or the law expressly so declares
  2. When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or is to be rendered was a controlling motive for the establishment of a contract.
  3. When the demand would be useless, as when the obligor has rendered it beyond his power to perform.
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27
Q

Enumerate the three requisites in order for a debtor to be announced as default.

A
  1. That the obligation be demandable and already liquidated
  2. That the debtor delays performance
  3. That the creditor requires the performance juridically and extrajuridically. Default generally begins from the moment the creditor demands the performance.
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28
Q

What is mora or delay?

A

Mora or delay is the failure to perform the obligation in due time because of dolo (malice) and culpa (negligence)

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29
Q

When is a debt considered as liquidated?

A

A debt is liquidated when the amount is known or is determinable by inspection of the terms and conditions of the relevant promissory notes and related documentation. In other words, both parties must clearly understand and know the amount owed.

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30
Q

What is Mora Solvendi?

A

Mora solvendi or debtor’s default, is defined as a delay in the fulfillment of an obligation, by reason of a cause imputable to the debtor.

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31
Q

What are the two types of Mora Solvendi?

A
  1. Mora Solvendi ex re
  2. Mora Solvendi ex persona
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32
Q

When does Mora Solvendi ex re occur?

A

When the delay is from an obligation to give

33
Q

When does Mora Solvendi ex persona occur?

A

When the delay is from an obligation to do

34
Q

What is Mora Accipiendi

A

Mora accipiendi is the delay of the obligee or creditor to accept the delivery of the thing which is the object of the obligation.

35
Q

What is Compensatio Morae?

A

It is the default on both parties because neither has completed their part in their reciprocal obligation. This mutual delay of the parties cancels out the effects of default, such that it is as if no one is guilty of delay.

36
Q

What are two kinds of breach of the obligation?

A
  1. Voluntary Breach
  2. Involuntary Breach
37
Q

What is a voluntary breach of the obligation?

A

It arises either by fraud, negligence, delay, and in any manner contravene the tenor of the obligation. The debtor or obligor may be held liable for damages if these will result in the breach of the obligation.

38
Q

What is an involuntary breach of the obligation?

A

Are breaches that arise from fortuitous events. The debtor or obligor will be exempted from liability.

39
Q

What are the four different modes of voluntary breach of the obligation?

A
  1. Fraud or dolo
  2. Negligence or culpa
  3. Delay or default or Mora
  4. Contravention of the tenor of the obligation
40
Q

Define Fraud

A

It refers to all kinds of deception, whether through insidious machination. manipulation, concealment or misrepresentation, that would lead an ordinary prudent person into error after taking the circumstance into account.

41
Q

What are the two types of Fraud?

A
  1. Dolo causente or causal fraud
  2. Dolo incidente or incidental fraud
42
Q

What is Dolo causente or causal fraud?

A

It is basically a deception used by one party prior to or simultaneous with the contract, in order to secure the consent of the other.

43
Q

What is Dolo incidente or incidental fraud?

A

It is a fraud which is not serious in character and without which the other party would have entered into the contract anyway.

44
Q

Distinguish Dolo Causante and Dolo Incidente

A

Dolo Causante is fraud which induces a party to enter into a contract. It is a fraud which renders the contract voidable. On the other hand, Dolo Incidente is a fraud which it is not the reason that induced the party to enter into a contract. It is a fraud which renders a party to be liable for damages.

45
Q

Distinguish Fraud and Bad Faith

A

Fraud must be established by clear and convincing evidence while Bad faith, on the other hand, imports a dishonest purpose or some moral obliquity and conscious doing of a wrong, not simply bad judgment or negligence. They are both designed to mislead or deceive another.

46
Q

Distinguish Fraud (Dolo) and Negligence (Culpa)

A

Fraud is the willfulness or deliberate intent to cause damage or injury to another. Its liability cannot be mitigated by courts and the waiver for future fraud is void. Negligence is the mere want of care or diligence and not the voluntariness of omission. Its liability can be mitigated by the courts and the waiver for future negligence is valid.

47
Q

What is negligence?

A

Negligence is the omission to do something which a reasonable man, guided by those considerations which ordinarily regulate the conduct of human affairs, would do, or the doing of something which a prudent and reasonable man would not do.

48
Q

What are two kinds of Negligence?

A
  1. Civil Negligence
  2. Culpa Criminal
49
Q

What are two kinds of Civil Negligence?

A
  1. Culpa Contractual
  2. Culpa Aquiliana/Quasi-delict
50
Q

What is Culpa Contractual?

A

It is the fault or negligence of the obligor by virtue of which he is unable to perform his obligation arising from a pre-existing contract.

51
Q

What is Culpa Aquiliana/Quasi-Contract

A

The fault or negligence of a person, whose failure to observe the required diligence to the obligation causes damage to another.

52
Q

What is Culpa Criminal?

A

The fault or negligence which results in the commission of a Crime

53
Q

DIstinguish Culpa Contractual and Culpa Aquiliana

A

In Culpa Contractual, there is already an existing obligation and because of the negligence, there will be more liability from the debtor. In Culpa Aquiliana, there is no pre-existing contract and because of the negligence, a obligation will be formed.

54
Q

What does Contravention of the tenor of the obligation mean?

A

It means violation of a contract or breach of contract. It includes not only any illicit act which impairs the strict and faithful fulfillment of the obligation.

55
Q

Enumerate the six kinds of damages under the Civil Code (DAMAGES = COMPENSATION)

A
  1. Actual or Compensatory Damages
  2. Moral Damages
  3. Nominal Damages
  4. Temperate or Moderate Damages
  5. Liquidated Damages
  6. Exemplary or Correlative Damages
56
Q

Explain Actual or Compensatory Damage

A

One is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved.

57
Q

Explain Moral Damages

A

It includes physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, moral shock, social humiliation, and similar injury. They are incapable of monetary compensation but it may be recovered if it is the proximate result of the defendant’s wrongful act or omission.

58
Q

Explain Nominal Damages

A

They are a small compensation for a small damage that does not lead to a financial loss to the person owed to.

59
Q

Explain Temperate or Moderate Damages

A

Are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount cannot, from the nature of the case, be provided with certainty.

60
Q

Explain Liquidated Damages

A

Are those agreed upon by the parties to a contract, to be paid in case of a breach.

61
Q

Explain Exemplary or Corrective Damages

A

Imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated, or compensatory damages.

62
Q

What does “waiver is void in future frauds” mean?

A

It means that it has no legal effect but it does not expressly prohibit waiver of an action for fraud already committed.

63
Q

What is a waiver?

A

It is the voluntary relinquishment or abandonment, express or implied, of a legal right or advantage. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals or customs, or prejudicial to a third person with a right recognized by law.

64
Q

Explain how a waiver should be clear

A

For a waiver to be value and effective, it must be in the first place, clear and unequivocal terms which will leave no doubt as to the intention of a party to give up a right or benefit which legally pertains to him.

65
Q

What is an action?

A

It is a civil or criminal judicial proceeding. It has been defined to be an ordinary proceeding in a court of justice, by which one party prosecutes another party for the enforcement or protection of a right, the redress or prevention of a wrong, or the punishment of a public offense.

66
Q

What is bad faith?

A

Bad faith imports a dishonest purpose or some moral obliquity or conscious doing of a wrong that partakes of the nature of fraud.

67
Q

What is a fortuitous event?

A

It is any event which cannot be foreseen, or which, though foreseen, is inevitable. They are extraordinary events not foreseeable or avoidable. The mere difficulty to foresee the happening is not impossibility to foresee the same.

68
Q

What are two possible classifications of a fortuitous event?

A
  1. Act of God
  2. Act of Man (force majure)
69
Q

What is an Ordinary Fortuitous Event?

A

An event which usually happens or which could have reasonably foreseen.

70
Q

What is an Extraordinary Fortuitous Event?

A

Am event which does not usually happen and which could not have been reasonably foreseen. They are uncommon and which the contracting parties could not have reasonably foreseen.

71
Q

What are the four elements of a fortuitous event?

A
  1. The cause must have been independent of human will.
  2. The event that constituted it must have been impossible to foresee, or if foreseeable, impossible to avoid.
  3. The occurrence have made it impossible for the debtors to fulfill their obligation in a normal manner.
  4. The obligor must have been free from any participation in the aggravation of the resulting injury of the creditor.
72
Q

What are the three exceptions to the Rule that no person shall be responsible for fortuitous events

A
  1. Cases expressly specified by law
  2. Cases declared by stipulation
  3. When the nature of the obligation requires the assumption of risk.
73
Q

What is the doctrine of assumption of risk?

A

It refers to situation in which the obligor or debtor, with full knowledge of the risk voluntarily enters into some obligatory relation with the creditor or obligee. No wrong is done to one who consents.

74
Q

Define Presumptions

A

A legal inference or assumption that a fact exists based on the known or proven existence of some other fact or group of facts. It permits a court to assume that is a fact until there is a greater weight of evidence to be used.

75
Q

Enumerate the two kinds of presumption?

A
  1. Disputable Presumption
  2. Conclusive Presumption
76
Q

What is a Disputable Presumption?

A

A presumption is disputable or rebuttable if it may be contradicted or overcome by other evidence.

77
Q

What is a Conclusive Presumption?

A

A presumption is conclusive when the presumption becomes irrebuttable upon the presentation of the evidence and any evidence tending to rebut the presumption is not admissable.

78
Q

What are the exceptions to the general rule “All rights acquired by virtue of an obligation are transmissible”?

A
  1. When prohibited by law
  2. When prohibited by stipulation of parties

Oblicon (5 decks)

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