OBLIGATIONS Flashcards
Definition
A juridical necessity to give, to do, or not to do
Essential elements
- Active Subject
- Passive Subject
- Legal Tie / Vinculum Juris
- Prestation / Object
Sources of obligations
- Law
- Contracts
- Quasi-contracts
- Delicts
- Quasi-delicts
Kinds of Obligations as to Basis and Enforceability
A. Civil Obligations
B. Natural Obligations
Civil Obligations
derive their binding force from positive/ substantive law and can be enforced by court
Natural Obligations
based on equity and natural law. After fulfillment by the obligor, they authorize retention of what has been delivered or rendered by reason thereof.
Requisites of an Object of an Obligations
i. It must be possible, physically and juridically
ii. It must be determinate, or, at least determinable according to pre-established elements or criteria
iii. It must have a possible equivalent in money
Diligence required for common carriers
Extraordinary Diligence
Diligence required (default)
Diligence of a good father of a family
Diligence required for medical professionals
Degree of care, skill and diligence which physicians in the same general neighborhood and in the same general line of practice ordinarily possess and exercise in like cases
Personal Right
Right that can be exercised only against a specific person
Real Right
Right that can be exercised against the whole world
Kinds of Fruits
a. Natural fruits
b. Industrial fruits
c. Civil fruits
Accessions
Permanent additions or improvements to the principal property.
Accessories
Items that complement or enhance the principal property but remain detachable and separate.
Reciprocal Obligation
type of obligation which arises from the same cause and in which each party is a debtor and creditor of the other, such that the obligation of one is dependent upon the obligation of the other.
Kinds of Obligations (As to perfection and extinguishment)
- Pure
- Conditional
- With a term or period
Pure Obligations
performance does not depend upon a future or uncertain event or upon a past event unknown to the parties
Demandable at once.
Resolutory Obligations
Obligations that remain in effect until a specific event occurs, after which the obligation is canceled.
Conditional Obligations
depends upon the happening of the event which constitutes that condition
Effect of condition to the obligation (to do something possible)
VALID Condition
VALID Obligation
Effect of condition to the obligation (to do something impossible)
VOID Condition
VOID Obligation
Effect of condition to the obligation (not to do something possible)
VALID Condition
VALID Obligation
Effect of condition to the obligation (not to do something impossible)
VOID Condition
VALID Obligation
Potestative Condition
Dependent solely on the will of one of the parties
Moral Damages
awarded by reason of physical suffering, mental anguish, fright, serious anxiety, etc.
Rules as to improvement, loss or deterioration
(Lost without debtor’s fault)
Obligation is extinguished
Rules as to improvement, loss or deterioration
(Lost through debtor’s fault)
Debtor is liable for damages
Rules as to improvement, loss or deterioration
(Deteriorate without debtor’s fault)
Creditor bears the impairment
Rules as to improvement, loss or deterioration
(Deteriorate through debtor’s fault)
Either:
1. Rescission + Damages
2. Exact fulfillment + Damages
Rules as to improvement, loss or deterioration
(Improved by its nature or time)
Improvement will inure to the benefit of the creditor
Rules as to improvement, loss or deterioration
(Improved at debtor’s expense)
Debtor is granted the right to use (usufructuary)
Kinds of Conditions (As to Plurality of Prestation)
- Conjunctive
- Disjunctive
a. Alternative
b. Facultative
Conjunctive Obligation
All must be performed
Alternative Obligation
Only one must be performed
Facultative Obligation
There is one primary obligation, but the debtor has the option to substitute it with a different performance if needed.
Alternative Obligations: Effects of Loss (Fortuitous Event)
Choice: Debtor or Creditor
All are lost
Debtor is released from the obligation
Alternative Obligations: Effects of Loss (Fortuitous Event)
Choice: Debtor or Creditor
Some but not all are lost
Deliver the chosen from among the remainder
Alternative Obligations: Effects of Loss (Fortuitous Event)
Choice: Debtor or Creditor
Only one remains
Deliver that which remains
Alternative Obligations: Effects of Loss (Debtor’s Fault)
Choice: Debtor
All are lost
Creditor has right of compensation for damages based on the value of the LAST thing which disappeared or services which becomes impossible
Alternative Obligations: Effects of Loss (Debtor’s Fault)
Choice: Debtor
Some but not all are lost
Deliver the chosen from among the remainder
Alternative Obligations: Effects of Loss (Debtor’s Fault)
Choice: Debtor
Only one remains
Deliver that which remains
Alternative Obligations: Effects of Loss (Debtor’s Fault)
Choice: Creditor
All are lost
Creditor may claim the price/value of any of them + compensation for damages
Alternative Obligations: Effects of Loss (Debtor’s Fault)
Choice: Debtor
Some but not all are lost or only one remains
- Creditor may claim any of those subsisting without a right to damages; or
- Price/ value of the things lost + rights to damages
Kinds of Obligations (As to rights and obligations of multiple parties)
- Joint Obligation
- Solidary Obligation
Joint Obligation
Debtors is liable only for a proportionate part of the debt; or
Creditor is entitled only to a proportionate part of the credit
Solidary Obligation
Each debtor is liable for the ENTIRE obligation; or
Each creditor is entitled to demand the WHOLE obligation
Sources of obligation; nature of liability
CONTRACTS
Joint, unless stipulated
Sources of obligation; nature of liability
QUASI-CONTRACT
Solidary
Sources of obligation; nature of liability
DELICT
Joint, unless provided by law
Sources of obligation; nature of liability
QUASI-DELICT
Solidary
Passive Solidarity
Debtors are solidary
Active Solidarity
Creditors are solidary
Mixed Solidarity
All debtors and creditors are solidary
Breaches of Obligations
- Delay or Default
- Fraud
- Negligence
- Breach through contravention of tenor of the obligation
Kinds of Delay (Mora Solvendi)
delay on the part of the debtor
Kinds of Delay (Mora Accipiendi)
delay on the part of the creditor
Kinds of Delay (Compensatio Morae)
delay on the part of both parties
Causal Fraud (dolo causante)
Fraud in obtaining consent. Fraud employed in the execution of the contract (voidable)
Remedy for Causal Fraud
Annulment + Damages
Incidental Fraud (dolo incidente)
Deliberate and intentional evasion of the normal fulfillment of the obligation (does not affect validity of the contract)
Remedy for Incidental Fraud
Damages
Treatment of Waiver for future fraud
Void
Treatment of waiver of past fraud
May be considered valid (provided public interests are not involved)
Negligence (Culpa)
omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place.
prevents the NORMAL fulfillment of an obligation
Culpa Contractual (contractual negligence)
Negligence in the performance of a contractual obligation
Culpa Aquiliana (Civil negligence)
quasi-delict
Culpa Criminal (criminal negligence)
which results in the commission of a crime or a delict
Remedy for negligence that shows bad faith
Obligor is responsible for all damages attributed to the non-performance of the obligation
Remedy for the negligence of creditor that was only contributory
May recover damages but the courts can mitigate or reduce the same
Any other manner of contravention
illicit act which impairs the strict and faitful fulfillment of the obligation or every kind of defective performance
Remedy for “any other matter of contravention”
indemnify for the losses and damages cause
Remedy for “any other matter of contravention” (by sir nico)
Undone
Excuse for non-performance
- Fortuitous Event
- Act of Creditor
Obligation is determinate and loss due to fortuitous event
Debtor cannot be held liable for damages
Genus numquam peruit
An indeterminate or generic thing can never perish
Loss of generic thing through fortuitous event
Obligation not extinguished
Requisites of Fortuitous event
- Independent of human will
- Unforeseeable or unavoidable
- Impossible to fulfill in normal manner
- Debtor must be free from participation
Remedies for breach of obligations
- Extrajudicial Remedies
- Judicial Remedies
Remedies for breach of obligations
- Specific Performance
- Rescission
- Damages
Specific Performance
Exact fulfillment by specific or substitute performance + damages
Exemplary Damages
corrective or to set an exampleN
Nominal Damages
in order that a right of the plaintiff which has been violated may be recognized
Temperate Damages
when the exact amount of damages can not be determined
Actual Damages
losses suffered and proved by the plaintiff
Liquidated Damages
damages agreed upon by the parties to a contract to be paid in case of breach. Based on contractual stipulation of the parties.
Remedies for Breach of Obligation
Subsidiary remedies of creditors (Accion Subsogatoria)
refers to the right of a creditor to step into the shoes of a debtor to recover debts.
To exercise all rights and actions of the debtor, except those which are inherently personal to him.
Remedies for Breach of Obligation
Subsidiary remedies of creditors (Accion Pauliana)
Ask for rescission or cancellation of the contracts made by the debtor in fraud of creditor’s rights
allows creditors to challenge and undo certain transactions made by a debtor that are intended to defraud or evade their creditors
Remedies for Breach of Obligation
Subsidiary remedies of creditors (Accion Directa)
right of the lessor to go directly to sublessee for unpaid rents of the lessee
Application of payments
If debtor and creditor did not designate (different nature)
to debt which is most onerous to the debtor
Application of payments
If debtor and creditor did not designate (same nature)
Apply proportionately
Tender of Payment
Manifestation made by the debtor to the creditor of her decisions to comply immediately with her obligation
Consignation
legal term that refers to the act of placing a payment into a third party’s hands (competent court) when the person owed money can’t or won’t accept the payment
Two notices to the creditor required in consignation
- Before making the consignation
- After the consignation was made
When does extinguishment happen in Consignation?
After consignation
Loss of the things due
The thing:
1. Goes out of commerce
2. Perishes
3. Disappears in such a way that its existence is unknown or that it cannot be recovered
Loss of the thing due (Force Majeure) - General Rule
Debtor is not liable for damages
Sir Nico: Suspension or Exonerate