CHAPTER 4- DIFFERENT KINDS OF OBLIGATIONS Flashcards
DIFFERENT KINDS OF OBLIGATIONS
- pure and conditional
- with a period
- alternative and facultative
- joint and solidary
- divisible and indivisible
- with a penal clause
One which is not subject to any condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable.
One without a condition or a term (hence, demandable at once, provided there will be no absurdity).
- PURE OBLIGATION
- One whose consequences are subject in one way or another to the fulfillment of a condition.
- CONDITIONAL OBLIGATION
WHEN IS AN OBLIGATION DEMANDABLE AT ONCE?
- When it is pure.
- When it is subject to a resolutory condition
- When it is subject to a resolutory period.
DEBTOR TO PAY “WHEN HIS MEANS PERMIT”
Obligation is one with TERM or PERIOD
- “When my means permit to do so”
- “When I can afford it”
- “When I am able to”
- “When I have money”
- A future and uncertain event, upon the happening of which, the effectivity or extinguishment of an obligation (or rights) subject to it depends.
- A condition must not be impossible.
CONDITION
- one the fulfillment of which will give rise to an obligation (or right).
SUSPENSIVE CONDITION
- one the fulfillment of which will
extinguish an obligation (or right) already existing.
RESOLUTORY CONDITION
THREE KINDS OF CONDITIONS
- POTESTATIVE
- CASUAL
- MIXED
- The happening of an event at a determinate time.
POSITIVE CONDITION
POSITIVE CONDITION
The obligation is extinguished:
(1) as soon as the time expires without the event taking place; or
(2) as soon as it has become indubitable that the event will not take place although the time specified has not yet expired.
- an event will not happen at a determinate time. The obligation shall become effective and binding:
NEGATIVE CONDITION
NEGATIVE CONDITION
- an event will not happen at a determinate time. The obligation shall become effective and binding:
(1) from the moment the time indicated has elapsed without the event taking place; or
(2) from the moment it has become evident that the event cannot occur, although the time indicated has not yet elapsed.
EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITIONS
A. Retroactivity
B. No Retroactivity
The obligation becomes effective to the day the obligation was constituted.
Retroactivity
No Retroactivity in___
- fruits or interests.
- period of prescription ( the period runs from the day the condition was fulfilled, because it can be enforced only from said date.
NO RETROACTIVE EFFECTS AS TO FRUITS AND INTERESTS
A. Unilateral Obligations- debtor gets the fruits and interests unless there is a contrary intent.
B. Reciprocal Obligations- The fruits and interests during the pendency of the condition shall (for the purpose of convenience and practical effectiveness) be deemed to compensate each other (even though they really be unequal).
- If not allowed to take the appropriate actions, there is a danger the creditor will receive nothing, as when the object is deliberately destroyed, or hidden, or alienated.
ACTIONS TO PRESERVE CREDITOR’S RIGHTS
- What was paid by mistake may be recovered be- cause, after all, the condition may not materialize. In the meantime, the debtor has lost the use of the object. It is unfair for the creditor to unjustly enrich himself. This is a case of SOLUTIO INDEBITI (undue payment).
RIGHT OF DEBTOR TO RECOVER WHAT WAS PAID BY MISTAKE
Art. 1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition:
(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor;
(4) If it 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;
(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor;
(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary.
WHAT ARE THE THREE THINGS THAT MAY HAPPEN TO THE OBJECT OF AN OBLIGATION PENDING THE FULFILLMENT OF A SUSPENSIVE CONDITION?
A. The object may be lost
a) without the fault of the debtor
b) with fault of the debtor
c) partly with and partly without the fault of the debtor
B. The object may deteriorate
a) without the fault of the debtor
b) with the fault of the debtor
c) partly with and partly without the fault of the debtor
C. The object may improve:
a) by nature or by time
b) through the expense of the debtor
c) partly through nature or time and partly by the debtor
EFFECTS WHEN RESOLUTORY CONDITION IS FULFILLED
- The obligation is extinguished.
- Because the obligation had been extinguished and considered to have had no effect, the parties should restore to each other what they have received.
- From the actual things received, the fruits or the interests thereon should also be returned after deducting of course the expenses made for their production, gathering, and preservation.
- The rules given in Art. 1189 will apply to whoever has the duty to return in case of the loss, deterioration, or improvement of the thing.
- right to cancel (or resolve) the contract or reciprocal obligations in case of non-fulfillment on the part of one.
RIGHT TO RESCIND
- obligations where two parties are reciprocally obliged to do or give something. (Example: contract of sale).
RECIPROCAL OBLIGATIONS
CHOICE OF INJURED PARTY
- The injured party may choose between:
a. fulfillment (specific performance) plus
damages;
b. or rescission plus damages. - The right is alternative.
- The right is not conjunctive, that is, the plaintiff cannot ask for BOTH remedies.
- The injured party who has elected fulfillment may, if fulfillment be impossible, still ask for rescission (provided that rescission is otherwise proper).
RULE IF BOTH PARTIES COMMITTED A BREACH
A. First infractor known- One party violated his obligation; subsequently, the other also violated his part of the obligation. In this case, the liability of the first infractor should be equitably reduced.
B. First infractor cannot be determined- One party violated his obligation followed by the other, but it cannot be determined which of them was the first infractor. The rule is that the contract shall be deemed extinguished, and each shall bear his own damages.
- Certain length of time which determines the effectivity or the extinguishment of obligations.
PERIOD
REQUISITES OF A VALID PERIOD OR TERM
- It must refer to the future.
- It must be certain (sure to come) but can be extended. (If eliminated subsequently by mutual agreement, the obligation becomes pure and immediately demandable).
- It must be physical and legally possible, otherwise the obligation is void. (Example: “I’ll give you my house one year after your death.” The obligation here is void.)
- when the obligor is allowed to choose one out of several obligations which may be due and demandable.
ALTERNATIVE OBLIGATION
WHO HAS THE RIGHT OF CHOICE
GENERAL RULE: the right belongs to the debtor.
EXCEPTION: ____________
EXCEPTION: may belong to the creditor when such right has expressly been granted to him.
- when the obligor is allowed to substitute another obligation for one which is due and demandable.
FACULTATIVE OBLIGATION
- Each obligor answers only for a part of the whole liability and to each obligee belongs only a part of the correlative rights.
- To each his own.
A. Joint Obligations
- The relationship between the active and the passive subjects is so close that each of the former or of the latter may demand the fulfillment of or must comply with the whole obligation.
- One for all, all for one.
B. Solidary Obligations
GENERAL RULE
- Where there are two or more debtors or two or more creditors, the obligation is JOINT
exceptions??
EXCEPTIONS
1. When there is a stipulation in the contract that the obligation is solidary
2. When the nature of the obligation requires liability to be solidary
3. When the law declares the obligation to be solidary
- Referring to the TIE between the parties, who are merely proportionately liable, unless solidarity has been stipulated by the parties or the law The obligation is joint but since the object is indivisible, the creditor must proceed against ALL the joint debtors
INDIVISIBLE JOINT OBLIGATIONS
- Refers to nature of obligation
- May exist even if there is only one debtor and only one creditor
- The fault of one is not the fault of the others.
A. INDIVISIBILITY
- Refers to the Tie between the Parties.
- Needs at least two debtors or creditors
- The fault of one is the fault of the others.
B. SOLIDARITY
TO WHOM DEBTOR MUST PAY?
- To any of the solidary creditors
- Exception — payment must be made to solidary creditor who made a demand (judicial or extrajudicial)
what is divisible obligations?
- one capable of partial performance. (Example: to deliver 200 kilos of sugar)
- (a) When the object of the obligation is the execution of a certain number of days of work. Example: When a laborer is hired to work for 10 days.
- (b) When the object of the obligation is the accomplishment of work by metrical units. Example: When a laborer is hired to construct a street 3 meters wide and 50 meters long.
- (c) When the purpose of the obligation is to pay a certain amount in installments. Example: When a debtor is required to pay in ten annual installments.
- (d) When the object of the obligation is the accomplishment of work susceptible of partial performance.
what are indivisible obligations?
- one not capable of partial performance.(Example: to deliver a specific car)
- (a) Obligations to give definite things. Example: to give this car
- (b) Those which are not susceptible of partial performance. Example: to conduct the orchestra in a single rendition of Buencamino’s “Mayon Concerto”)
- (c) Even if the thing is physically divisible, it may be indivisible if so provided by law.
- (d) Even if the thing is physically divisible, it may be indivisible if such was the intention of the parties concerned.
- It is a coercive means to obtain from the debtor compliance from the debtor.
- A ________________ is an accessory undertaking to assume greater liability in case of breach. It is attached to obligations in order to insure their performance.
- Its principal purpose is to insure the performance of an obligation and also to substitute for damages and the payment of interest in case of non-compliance.
Penal Clause
