Chapter 3 - Different Kinds of Obligations Flashcards
What are the primary classifications of obligations under the New Civil Code
- Pure and conditional obligations
- Obligations with a period
- Alternative and facultative obligations
- Joint and solidary obligations
- Divisible and Indivisible Obligations
- Obligations with a penal clause
Differentiate Pure and Conditional Obligation
Pure obligation is an obligation which is demandable at once. Conditional obligation is an obligation whose fulfillment or extinguishment depends upon a future and uncertain event
Differentiate Alternative and Facultative Obligations
Alternative obligation involves multiple prestations but debtor will only perform one prestation. Facultative obligation involves a principal prestation and a substitute prestation
Differentiate Joint and Solidary Obligations
A joint obligation is an obligation where each debtor can be made to pay only his share in the obligation. A solidary obligation is an obligation where one debtor can be made to pay for the whole obligation subject to reimbursement
Differentiate Divisible and Indivisible Obligations
A divisible obligation is an obligation whose performance of the prestation can be fulfilled in parts. An indivisible prestation cannot be fulfilled in parts.
Explain obligations with a period
An obligation whose fulfillment or extinguishment depends upon a future and certain event
Explain obligation with a penal cause
An obligation which contains an undertaking to assume greater liability in case of breach of said obligation
What are the secondary classification of obligations under the NCC
- Legal, conventional and penal obligations
- Real and personal obligations
- Determinate and generic obligations
- Positive and negative obligations
- Unilateral and bilateral obligations
- Civil and Natural Obligations
- Accessory and Principal Obligations
- individual and Collective Obligations
Differentiate Legal, Conventional and Penal Obligations
Legal obligation arises from law. Conventional obligation arises from contracts. Penal obligation arises from commission of a crime
Differentiate Real and Personal Obligations
Real is an obligation to give. Personal obligation is an obligation to do or not to do.
Differentiate Determinate and Generic Obligations
Determinate obligation is an obligation that is individualized and can be identified or distinguished from others of its kind. Indeterminate obligation is an obligation that is not individualized and cannot be identified or distinguished from others of its kind.
Differentiate Positive and Negative Obligations
Positive obligations are obligations to give or to do. Negative obligations are obligations not to do.
Differentiate Unilateral and Bilateral Obligations
Unilateral obligation is an obligation in which only one party is bound to perform an obligation. Bilateral obligation is an obligation where both parties are reciprocally bound to perform an obligation.
Differentiate Civil and Natural Obligations
Civil obligation is an obligation, which if not fulfilled when it becomes due and demandable, gives a right of action to compel their performance. Natural obligations are obligations which, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or rendered by reason thereof.
Differentiate Accessory and Principal obligation
Accessory obligation is an obligation where its existence depends upon a principal obligation. While principal obligation is an obligation which exists without depending upon another obligation.
Differentiate Individual and Collective Obligations
Individual obligations involves only one subject. Collective obligation involves several subjects
What does article 1179 say?
Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once
Define Condition
Condition has been defined as every future event and uncertain event upon which an obligation is made to depend. It is a future and uncertain event upon which the acquisition or resolution of rights is made to depend by those who execute the juridical act
Give the classification of conditions
- As to the effect of obligation
- As to the origin of the condition
- As to possibility
- As to mode
- As to divisibility
- As to numbers
- As to form
Classification of conditions as to the effect of obligation
- Suspensive Obligation
- Resolutory Obligation
What is a suspensive condition
Also known as conditions precedent, is a condition the happening of which will give rise to an obligation. The fulfillment of the condition results in the acquisition of rights arising out of the obligation. (Ex. X promises to give P10,000 to Y if the latter will get the highest final grade in their subject English I)
What is a resolutory condition
Also known as conditions subsequent, is a condition the happening of which will extinguish the obligation. The fulfillment of the condition results in extinguishment of rights arising out of the obligation (Ex. X bound himself to deliver his only motorcylce to Y until the latter will find a job)
Define period
A time of definite length. Definite, having distinct or certain limits; determinate in extent of character; limited; fixed - as definite period
What does art 1197 say about periods?
If the obligation does not fix a period, but from its nature and the circumstances, it can inferred that a period was intended, the courts may fix the duration thereof. The courts shall also fix the duration of the period when it depends upon the will of the debtor.
What is a potestative condition
A condition whose fulfillment depends upon the sole will of one of the contracting parties. If the fulfillment of a potestative condition depends exclusively upon the will of the debtor, the conditional obligation shall be void. If the fulfillment of a potestative condition depends exclusively upon the will of the creditor, the conditional obligation shall be valid.
What does the NCC prohibit about potestative, suspensive and conditional obligations
These obligations that depend on the whims of the debtor, because such obligations are usually not meant to be fulfilled. Indeed, to allow the fulfillment of conditions to depend exclusively on the debtor’s will would be sanction to illusory obligations. Example: “I will give you P50,000 if I will travel to Baguio City tomorrow”
What is an impossible condition
The condition is not capable of realization according to nature, law, public policy, or good customs
What are the kinds of impossible conditions
- Physical impossible conditions
- Legal impossible conditions
What is a physical impossible condition
These are conditions which are contrary to the law of nature (Ex. X obliged himself to give Y his house and lot if Y can make an invisible study table)
What is a legal impossible condition
These are conditions which are contrary to law, morals, public order or policy. (Ex. X promised to pay Y P100,000 if the latter will inflict serious physical injuries to Y”)
What is the general rule about impossible conditions
Impossible conditions annul the obligation which depends upon them. Consequently, both the condition and the obligation are void.
What is the exception to the general rule about impossible conditions
- In divisible obligation that part thereof which is not affected by the impossible or unlawful condition shall be valid.
- If the condition is negative (not to do an impossible thing), it shall be considered as not having been agreed upon. Thus, the obligation is pure and valid
- If the obligation is pre-existing and not depending on the fulfillment of the impossible condition for its existence, only the condition is void
Article 1185 provides that if an obligation is conditioned on the nonoccurrence of a particular event at a determinate time, that obligation arises:
a. at the lapse of the indicated time; or
b. if it has become evident that the event cannot occur
What does article 1186 state regarding fulfillment of a condition
The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment
Article 1186 refers to what doctrine
Doctrine of constructive fulfillment of suspensive condition
What are the requisites of the doctrine of constructive fulfillment of suspensive condition?
- The intent of the obligor to prevent the fulfillment of the condition; and
- The actual prevention of the fulfillment
The principle of retroactivity in suspensive condition is limited to
the effects of the obligation
What is the retroactive effect of the condition in an obligation to give
Once the condition has been fulfilled, it shall retroact to the day of the constitution of the obligation. The condition is only an accidental element of a contract. Hence, the obligation is still valid even in the absence of such condition.
What is an accidental element of a contract?
The accidental elements are those which exist only when the parties expressly provide for them for the purpose of limiting or modifying the normal effects of the contract (Ex. Conditions, terms and modes)
What is the retroactive effect of the condition in an obligation to do or not to do
Court is empowered to determine retroactive effect of the suspensive condition that has been complied with. This rule is also applicable to obligations to do or not to do with resolutory condition in accordance with Art. 1190, par. 3, NCC.
Retroactive effect as to the fruits and interests in obligation to give in reciprocal obligation
There is no retroactive effect. The fruits and interest during the pendency of the condition shall be deemed to have been mutually compensated
Retroactive effect as to the fruits and interests in obligation to give in unilateral obligation
There is no retroactive effect. The debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting the same was different. Unilateral obligations are usually gratuitous.
What are the rights of the creditor before the fulfillment of the condition
The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of his right
What are the rights of the debtor before the fulfillment of the condition
The debtor may recover what during the same time he has paid by mistake in case of a suspensive condition. If the debtor paid with knowledge of the condition and not by mistake, he impliedly waives the condition. Therefore, he cannot recover. However, if the debtor paid with knowledge that the condition did not happen, the debtor can recover otherwise the creditor will be unjustly enriched at the expense of the debtor
A thing is lost when it:
- Perishes
- Goes out of commerce; or
- Disappears in such a way that its existence is unknown or it cannot be recovered
What is the rule in case of the thing being lost without the fault of the debtor
The obligation shall be extinguished
What is the rule in case of the thing is lost through the fault of the debtor
The debtor shall be obliged to pay damages
What is the rule in case the thing deteriorates without the fault of the debtor
The impairment is to be borne by the creditor
What is the rule in case the thing deteriorates through the fault of the debtor
The creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case
What is the rule in case of the thing is improved by its nature or by time
The improvement shall inure to the benefit of the creditor
What is the rule in case of the thing improved at the expense of the debtor
The debtor shall have no other right than that granted to the usufructuary
What is usufruct?
Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, unless the title constituting it or the law otherwise provides.
What is a rescission
Rescission has the effect of “unmaking a contract, or its undoing from the beginning, and not merely its termination.” Hence, rescission creates the obligation to return the object of the contract. It can be carried oy only when the one who demands rescission can return whatever he may be obliged to restore. To rescind is to declare a contract void at its inception and to put and end to it as though it never was.
What is a mutual restitution
Mutual restitution is required in cases involving rescission under Article 1191. This means bringing the parties back to their original status prior to the inception of the contract. Article 1385 of the Civil Code provides the effects of rescission, to wit: Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.
What is an extrajudicial rescission
Where parties agree to a stipulation allowing extra-judicial rescission, no judicial decree is necessary for rescission to take place; the extra-judicial rescission immediately releases the party from its obligation under the contract, subject only to court reversal if found improper
What are the aternative remedies of injured party?
- Fulfillment of the obligation with damages (refers to specific performance)
- Rescission of the obligation with damages
What are obligations with a period?
Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day comes
Meaning of day certain
Is understood to be that which must necessarily come although it may not be known when. Moreover, when the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period.
What is a term or period
is an interval of time, which, exerting an influence on an obligation as a consequence of a juridical act, either suspends its demandability or produces its extinguishments
Requisites of a term or period
- Future
- Certain
Kinds of Period or Term
- As to Effect (Suspensive and Resolutory Period)
- As to Expression (Express and Implied)
- As to Definiteness (Definite and Indefinite)
- As to source (Conventional, Legal, Judicial)
Kinds of obligation according to object
- Simple obligation (An obligation where there is only one object)
- Compound Obligation (An obligation where there are two or more objects)
What are the kinds of distibutive obligation?
- Alternative obligation (An obligation where two or more objects are due but performance of one is sufficient)
- An obligation where only one object is due but the debtor may substitute another object
What are the kinds of compound obligation?
- Conjunctive Obligation (An obligation where all of them are due. All of the objects must be performed to extinguish obligation
- Distributive Obligation (Obligation, where one, two or more of the objects are due. One of the objects must be performed to extinguish the obligation)
What does Art.1199 state about alternative obligation
A person alternatively bound by different prestations shall completely perform one of them. The creditor cannot be compelled to receive part of one and part of the other undertaking.
Art. 1200 states about what to the right of choice
The right of choice belongs to the debtor, unless it has been expressly granted to the creditor. The debtor shall have no right to choose prestations which are impossible, unlawful or which could not have been the object of the obligation.
What does Art. 1201 state about the choice producing no effect?
The choice shall produce no effect except from the time it has been communicated
