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1-2 > Oblicon Midterms > Flashcards

Oblicon Midterms Flashcards

1
Q

What is an obligation?

A

It is a juridical relation whereby a person (creditor) may demand from another (debtor) the observance of a determinative conduct (giving, doing, or not doing), and in case of breach, may demand satisfaction from the assets of the latter

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2
Q

Elements of An Obligation: (APOC)

A

A) Active subject – has the power to demand the observance of a certain behavior or activity of another,
and if necessary coerce such behavior whether directly or indirectly. The power to demand is optional, not
required. The law does not provide that the creditor must demand or file for the observance of the activity.
P) Passive subject – this person must act or not act in a determined way for the satisfaction of the creditor’s
interest.
O) Object – the prestation; the conduct – to give, to do, or not to do that your debtor must observe. The
obligation represents the restraint on the liberty of the person. It must be determinable and has pecuniary
value

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3
Q

KINDS OF PRESTATION:

A
  1. OBLIGATION TO GIVE. Consists in the delivery of a movable or immovable thing to the creditor
  2. OBLIGATION TO DO. Covers all kinds of works or services whether physical or mental
  3. OBLIGATION NOT TO DO. Consists in refraining from doing some acts i.e. – Sale, deposit, pledge,
    donation, antichresis
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4
Q

Requisites of a Valid Object / Prestation:

A
  1. Lawful
  2. Possible
  3. Determinate or at least determinable
  4. Has pecuniary value; assessable in money
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5
Q

How is vinculum juris established?

A
  1. By law (i.e. – relation of husband and wife for support)
  2. By bilateral acts (i.e. – contracts)
  3. By unilateral acts (i.e. – crimes and quasi‐ delicts)(Tolentino, Civil Code Vol. IV, p.59, 1999 ed)
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6
Q

Requisite of Breach of Obligation:

A
  1. The existence of a valid obligation;
  2. There is conduct – either an act or an omission of a party giving rise to an injustice or violation of the
    legal order;
  3. Accountability of the conduct must be that of the debtor; accountability of the debtor have not
    performed due to malice, fault, and contravention;
  4. Absence of justification;
  5. There is injury
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7
Q

This is the only source of voluntary obligation.

A

Contracts

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8
Q

Is a non-involvement clause valid

A

Non-involvement clause – a stipulation in the contract that says that should the employee be separated
from the company for whatever reason that such employee should not be engaged in a different
company with the same work nature.
This is valid if it is limited to a space, place, and time.

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9
Q

Quasi‐ contracts

A

it is a relationship already established by the law. The law states that even if one
party did not consent, the law will step in to create the relationship between the creditor and debtor in
order to avoid unjust enrichment or benefit

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10
Q

Forms of Quasi-Contracts:

A
  1. Negotiorium gestio (inofficious manager) – arises when a person voluntarily takes charge of
    the management of the business or property of another without any power from the latter.
  2. Solutio indebiti (unjust enrichment) – takes place when a person receives something from
    another without any right to demand for it, and the thing was unduly delivered to him through mistake.
    (PAYMENT BY MISTAKE may be because of an overpayment or there is payment when there is no due;
    as a result, that who received it must return the same)
    Note: The delivery must not be through liberality or some other cause.
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11
Q

Delicts

A

These obligations arise pursuant to Article 100 of the RPC which
states that: “Every person criminally liable for a felony is also civilly liable.”

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12
Q

Quasi‐ delict

A

Quasi-delict or torts acts or omissions arising
from fault or negligence which causes damage to another, there being no pre‐ existing contractual relations
between the parties. The pre-existing obligation is to observe due care

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13
Q

accessory obligations of delivering a determinate thing

A

[1] To give the accessions or accessories of that determinate thing even if they have not been agreed
upon. (Article 1166);
[2] To deliver the fruits of the thing;
[3] To pay damages in case of breach of the obligation by reason of delay, fraud, negligence, or
contravention of the tenor of the obligation;
[4] To take care of the thing with the diligence of a good father (Article 1163) – this is imposed
because if the determinate thing is lost through fortuitous event, the obligation is extinguished. It is also
known as an ORDINARY DILIGENCE

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14
Q

Why is Ordinary Diligence required?

A

Because there is a danger that the obligation be destroyed or lost. The
effect of the destruction of the thing to be delivered will cause the extinguishment of the obligation. I
the debtor is at fault or negligent, then the obligation will not be extinguished. Moreover, there is no
standard of diligence, then the obligation will be illusory

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15
Q

Can parties agree to lower the standard of diligence based on contracts

A

NO. While parties in
a contract agree the stipulation, NONE OF THE STIPULATIONS SHALL BE CONTRARY TO THE LAW,
PUBLIC CUSTOM, PUBLIC MORAL, OR PUBLIC POLICY.

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16
Q

Diligence of a good father of the family

A

giving the care which the nature of the thing cared for demands. It refers to the ordinary diligence that a prudent man would exercise in taking care of his own property taking into consideration the nature of the obligation, the time and the place

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17
Q

Duties of debtor in obligation to give a determinate thing

A

(1) To preserve or take care of the thing due;
(2) To deliver the fruits of the thing;
(3) To deliver its accessions and accessories;
(4) To deliver the thing itself
(5) To answer for damages in case of non-fulfillment or breach

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18
Q

Duties of debtor in obligation to deliver a generic thing

A

(1) To deliver a thing which is of the quality intended by the parties taking into consideration the
purpose of the obligation and other circumstances (deliver the thing which neither of superior
nor of lowest quality); and
(2) To be liable for damages in case of fraud, negligence, or delay, in the performance of
his obligation, or contravention of the tenor thereof.

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19
Q

REAL right

A

It gives to a person a direct and immediate juridical power over a thing, which is susceptible of being exercised against the whole world

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20
Q

PERSONAL right

A

TO COMPEL THE DEBTOR TO DELIVER THE THING AS WELL AS THE FRUITS OF THE THING. It is the right or power of a person to demand from another — to give, to do, or not to do.

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21
Q

The obligation to deliver arises from:

A

a. If based on contract, from perfection of the contract;
b. If it is subject to a term, from the moment the term arrives (day certain);
c. If it is subject to a condition, from the completion or fulfilment of the condition.

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22
Q

Real Delivery

A

This contemplates the actual delivery of the thing from the hand of the grantor to the hand of the grantee , if it is a personal property

If it is a real property, it is
manifested by certain possessory acts executed by the grantee with the consent of the grantor such as
by taking over the property; occupying the property

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23
Q

Constructive Delivery

A

when the delivery of the thing is not actual but representative or
symbolical in essence. But there must be intention to deliver the ownership.

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24
Q

REMEDIES OF CREDITOR FOR NON FULFILLMENT

A

MEDIES OF CREDITOR
a. Demand for specific performance - This action presupposes that it is based on a contractual relationship between the contending parties. Specific performance is available even if the thing to be
delivered is indeterminate.
b. Rescission of the obligation which is under Art. 1380.
c. Resolution of the contract under Art. 1191 if it is a reciprocal obligation.
d. Damages exclusively or in addition to either of the first actions.

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25
Q

Determinate thing

A

 something which is susceptible of particular
designation or specification;
 obligation is extinguuished if the thing is lost due to fortuitous events

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26
Q

INDETERMINATE THING

A

 something that has reference only to a class or genus;
 obligation to deliver is not extinguished if the thing is lost

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27
Q

REMEDIES FOR FAILURE OF DELIVERY (determinate thing)

A
  1. Complaint for specific performance – an action to
    compel the fulfillment of the obligation.
  2. Complaint for rescission of the obligation – action to rescind
  3. Complaint for damages – action to claim for compensation of damages suffered
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28
Q

Accessions vs Accessories

A

Accessories – it is what is required for the completeness or perfection of the principal. These are joined or included with the principal for the latter’s better use, perfection, or enjoyment.

Accessions – incorporated to the principal naturally or artificially; and addition to or an improvement upon the principal. Those additions to or improvements upon a thing; this is the right pertaining to the owner of a thing over its products and whatever is attached to it naturally or artificially.

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29
Q

Ordinary vs. Legal Delay

A

ORDINARY DELAY – mere failure to perform an obligation at the appointed time.
LEGAL DELAY (DEFAULT) – tantamount to non-fulfillment of the obligation and arises after an extrajudicial or judicial
demand was made upon the debtor.

30
Q

MORA SOLVENDI (Elements and Requisites)

A

REQUISITES:
1. failure of the obligor to perform obligation on the DATE agreed upon;
2. demand (j/ej) by the creditor;
3. failure to comply with such demand

EFFECTS:
1) debtor – liable for damages and
interests
2) debtor – liable for the loss of a thing due to a fortuitous event

31
Q

MORA ACCIPIENDI

A

delay on the part of the creditor to accept the performance of the obligation;

Effects:
1. creditor – liable for damages
2. creditor – bears the risk of loss of the thing
3. debtor – not liable for interest from the time of creditor’s delay
4. debtor – release himself from the obligation

32
Q

COMPENSATIO MORAE

A

delay of the obligors in reciprocal obligation.

Effect: the default of one compensates the default of the other; their respective liabilities shall be offset
equitable.

33
Q

Culpa Aquiliana vs Contractual

A

Definition:
CA: Negligence between parties not so related by pre-existing contract
CC: Negligence in the performance of contractual obligation

Nature of Negligence:
CA: Direct, substantive and independent
CC: Incidental to the performance of the obligation.

Ordinary Diligence Defense:
CA: Complete and proper defense (parents, guardian, employers)
CC: Not complete and proper defense in the selection of employees.

Presumption of Negligence:
CA: No presumption – injured party must prove negligence of the defendant.
CC: There is presumption – defendant must prove that there was no negligence in the carrying out of the terms of the contract

34
Q

FORTUITOUS EVENT and EXCEPTIONS

A
  1. Independent of the human will (or at least of the obligor’s)
  2. Unforeseen or unavoidable
  3. Of such character as to render it impossible for the obligor to comply with his obligation in a
    normal manner
  4. Obligor – free from any
    participation/aggravation of the injury to the obligee (no negligence or imprudence)

EXCEPTIONS:
1. When it is expressly stipulated that he shall be liable even if non-performance of the obligation is due to
fortuitous events;
2. When the nature of the obligation requires the assumption of risk;
3. When the obligor is in delay;
4. When the obligor has promised the same thing to two or more persons who do not have the same interest;
5. When the possessor is in bad faith and the thing lost or deteriorated due to fortuitous event;
6. When the obligor contributed to the loss of the thing.

35
Q

PURE OBLIGATION

A

obligation which does not contain any condition or term upon which the fulfillment is made to depend; immediately demandable by the creditors and the debtor cannot be excused from not complying with his prestation.

36
Q

CONDITIONAL OBLIGATION

A

) Suspensive Obligation – its fulfillment gives rise to an obligation; the demandability of the obligation or the effectivity of the contract can take place only after the condition has been fulfilled.

b) Resolutory Obligation – its happening extinguishes the obligation which is already existing;

37
Q

PERIOD

A

a future and certain event upon the arrival of which, the obligation subject to it either arises or is extinguished.

38
Q

Suspensive vs. Resolutory CONDITION

A

Suspensive Condition – the acquisition of rights by the creditor depends upon the happening of the event which constitutes the condition; if such condition does not take place, it would be as of the conditional obligation had never existed.
(e.g. promise to give a car after graduating from law school as cum laude)

Resolutory Condition – the rights and obligations already existing are under threat of extinction upon the happening or fulfillment of such condition.
(e.g. donation by reason of marriage – the celebration of marriage is a resolutory condition; if the marriage did not push through, the donation may be revoked)

39
Q

Potestative, Casual and Mixed

A
  1. POTESTATIVE – a suspensive condition which depends upon the will of one of the contracting parties = if at the sole will of the debtor, it is void; if at the creditor’s, still valid. this is to prevent the establishment of illusory obligations.
  2. CASUAL – the condition depends upon chance or the will of a third person;(i.e. cellphone warranty)
  3. MIXED – the condition depends partly upon the will of the parties and partly upon chance or the will of a third person
40
Q

POSSIBLE CONDITION

A

if it is capable of realization or
actualization according to nature, law, public policy or good customs

41
Q

2 KINDS OF IMPOSSIBLE CONDITIONS:

A
  1. Physically Impossible – cannot exist or cannot be done in its nature;
  2. Legally Impossible – contrary to law, good customs, or public policy.
42
Q

DOCTRINE OF
CONSTRUCTIVE FULFILLMENT

A
  1. The condition is SUSPENSIVE;
  2. The obligor ACTUALLY PREVENTS the fulfillment of the condition;
  3. He acts VOLUNTARILY.
43
Q

RESCISSION

A

– resolution or cancellation of the contract
 Applies only to reciprocal obligations where two
parties are mutually debtor and creditor of eachother in the same transaction. The cause must be identical ad the obligations must arise
simultaneously.
 The party who can demand rescission should be the party who is ready, willing, and able to comply with his own obligations while the other is not capable to perform his own.

44
Q

The period is disregarded and the obligation becomes pure and immediately demandable: [IGIVA]

A

[I] When debtor becomes insolvent;  The insolvency need not be judicially
declared. It is sufficient that debtor could not pay his debts due to lack of money or funds.
 [G] When the debtor does not furnish guaranties or securities;
 [I] When guaranties or securities given have been impaired or have disappeared;
 If security was lost through debtor’s fault -impairment
 If security was lost through fortuitous event - disappearance
 [V] When debtor violates an undertaking;
If such undertaking is the reason for the creditor to agree
with such period.
 [A] When debtor attempts to abscond (escape).

Mere attempt to abscond is sufficient. It is an indication of
bad faith.

45
Q

OBLIGATIONS WITH PLURAL PRESTATIONS:

A
  1. CONJUNCTIVE/COMPOUND OBLIGATION - an
    obligation where the debtor has to perform ALL the several prestations in the contract to extinguish the obligation.
  2. ALTERNATIVE OBLIGATION – an obligation where the debtor is required to fulfill ONLY ONE of the several prestations to extinguish the obligation.
  3. FACULTATIVE OBLIGATION – an obligation where the debtor is bound to perform ONLY ONE prestation, with a reserved right to choose
46
Q

JOINT INDIVISIBLE OBLIGATION

A

an obligation where solidarity is not provided and the prestation or object is not susceptible of division;

its fulfillment requires the concurrence
of all debtors, while doing each one’s parts.

47
Q

NOVATION

A
  1. Changing their object or principal conditions;
  2. Substituting the person of the debtor; and
  3. Subrogating (placing) a third person in the rights of the creditor. [Art. 1291, CC]
48
Q

COMPENSATION

A

takes place when two persons, in their own right, become creditors and debtors of each other

49
Q

CONFUSION

A

takes place when the characters of creditor and debtor are merged in the same person

50
Q

REMISSION

A

the gratuitous abandonment by the creditor of his right; acceptance of the obligor is necessary.

51
Q

Payment

A

–consists in the delivery of the thing or the rendition (rendering) of the service which is the object of the obligation.

52
Q

Loss of the thing or impossibility of prestation (Effects on Solidary Debtors)

A
  1. NO FAULT – solidary debtors –
    obligation is extinguished
  2. FAULT of any one of them – all are
    liable because of their mutual agency
  3. FORTUITOUS EVENT – delay on the
    part of the debtors – all will be liable
53
Q

DEFENSES OF A SOLIDARY DEBTOR:

A
  1. Defense arising from the nature of the obligation –
    such as payment, prescription, remission, statute of
    frauds, presence of vices of consent, etc.
  2. Defenses which are personal to him or which
    pertains to his own share alone – such as minority,
    insanity and others purely personal to him.
  3. Defenses personal to the other solidary creditors but
    only as regards that part of the debt for which the
    other creditors are liable.
54
Q

INDIVISIBLE obligations

A
  1. Obligation to give definite things
  2. Obligations which are not susceptible of partial
    performance
  3. Even though the object or service may be physically divisible, it is indivisible if:
    a. the law so provides
    b. when the parties intended it to be indivisible
55
Q

DIVISIBLE Obligations

A
  1. When the object of the obligation is the execution of a certain number of days of work
  2. When the object of the obligation is the
    accomplishment of work measured in units
  3. When the object of the obligation is susceptible of partial compliance
  4. When the object of the obligation is such that the debtor is required to pay in installments
56
Q

When may damages be enforced when there is a penalty clause?

A

If the debtor refuses to pay the penalty

If the debtor is guilty of fraud in the fulfillment of the obligation

If there is express stipulation that the other damages or interests are demandable to the
penalty in the penal clause

57
Q

JUDICIAL REDUCTION OF PENALTY

A

Principal obligation – partly complied with by the debtor (but not in indivisible obligation, because it is tantamount to non-compliance)
 Principal obligation – complied not in accordance with the tenor of the agreement (refers to irregular performance)
 Penalty – iniquitous or unconscionabl

58
Q

WHEN IS PENALTY NOT ENFORCEABLE?

A
  1. Impossible performance of principal obligation due to fortuitous events
  2. Creditor prevented the debtor from fulfilling the obligation
  3. Penalty is contrary to good morals or good customs
  4. Both parties are guilty of breach of contract
  5. Breach of contract by the creditor
  6. None of the parties committed any willful or culpable violation of the agreement
59
Q

Obligations are extinguished:

A
  1. by payment or performance
  2. by loss of the thing due
  3. by condonation or remission
  4. by confusion or merger of the rights of
    creditor and debtor
  5. by compensation
  6. by novation
60
Q

APPLICATION OF PAYMENTS

A
  1. 1 debtor and 1 creditor only
  2. 2 or more debts of the same kind
  3. all debts must be due
  4. amount paid by the debtor must not be sufficient to cover the total amount of all the debts
61
Q

Cession

A

a special form of payment whereby the debtor abandons or assigns all of his property for the benefit of his creditors so that the latter may obtain payment of their credits from the proceeds of the property.

62
Q

Requisites of Cession

A
  1. plurality of debts
  2. partial or relative insolvency of the debtor
  3. acceptance of cession by the creditors
63
Q

Consignation

A

(1) When the creditor is absent or unknown, or does not appear at the place of payment;
(2) When he is incapacitated to receive the payment at the time it is due;
(3) When, without just cause, he refuses to give a receipt;
(4) When two or more persons claim the same right to collect;
(5) When the title of the obligation has been lost.
(6) Creditor refuses, without just cause, to accept the thing

64
Q

Requisites of merger or confusion

A

(1) It must take place between the creditor and the principal debtor,
(2) the very same obligation must be involved, for if the debtor acquires rights from the creditor, but not the particular obligation in question in question there will be no merger,
(3) the confusion must be total or as regards the entire obligation.

65
Q

. In order that compensation may be proper, it is necessary:

A

(1) That each one of the obligors be bound principally, and that he be at the same time a principal creditor of the other;
(2) That both debts consist in a sum of money, or if the things due are consumable, they be of the same kind, and also of the same quality if the latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any retention or controversy, commenced by third persons and communicated in due time to the debtor. (1196)

66
Q

Total vs. Partial Compensation

A

 Total Compensation—debts are of the same amount.
 Partial Compensation—Debts are not of the same amount; operative only up to the concurrent amount.

67
Q

Obligations may be modified by:

A

(1) Changing their object or principal condition
(2) Substituting the person of the debtor
(3) Subrogating a third person in the rights of a creditor

68
Q

When an obligation is provided by law, when is there an obligation!

A

When it is provided by law- either express or implied

69
Q

Contracts are governed by?

A

Stipulations
Terms and Conditions
Clauses

70
Q

Why is contact the only voluntary source of obligation?

A
  1. Other sources are based on law
  2. Parties gave consent before entering into the contract
71
Q

Essential elements of a contract?

A

COC

72
Q

Suspensive period vs suspensive condition

A

4 - ask Memphis

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