Obligations Flashcards
What does juridical necessity mean?
one can court action
Real Obligation vs Personal Obligation
Real Obligation - to give
Personal Obligation - to do or not to do
Civil Obligation vs Natural Obligation
what law? juridical necessity?
Civil Obligation
- positive law
- has juridical necessity
Natural Obligation
- natural law
- no juridical necessity
Prescription Period of Civil Obligation
written? oral? quasi-contract? quasi-delict?
Written - 10 years
Oral - 6 years
Quasi-Contract - 6 years
Quasi-Delict - 4 years
Essential Elements of Obligation
PAPL (and specifics)
- Passive Subject - debtor / obligor
- Active Subject - creditor / obligee
- Prestation - subject matter (to give, to do, not to do)
- Legal Tie - reason why there is an obligation (sources of obligation)
can also be called Vinculum Juris
Can an obligation be oral?
YES (no form required for validity)
Sources of Obligation
- Law
example
not presumed, dapat nakalagay sa law
obligation of parents to support children
Sources of Obligation
- Quasi - Contract
definition and principle
- certain lawful, voluntary, unilateral acts
- no one unjustly enriched at expense of another
Kinds of Quasi Contract
- Negotiorum Gestio
2 requisites
- Neglected or abandoned
- WIthout consent or authority
Sources of Obligation
- Delict
what law supervise delict?
Revised Penal Code (not Civil Code)
If one is criminally liable, he is also civilly liable. T or F?
F (not always)
3 Examples of Civil Liability
- Restitution
- Reparation
- Indemnification
Sources of Obligation
- Quasi - Delict
Other Term, 4 Requisites
civil negligence / culpa aquilliana / torts
Requisites
1. no pre exisiting relation
2. act because of fault or negligence
3. caused damage
4. direct causal connection of act and damage
Obligations of Debtor to Give
Determinate Thing (4) vs Indeterminate Thing (2)
Determinate Thing
1. take care of the thing
2. deliver fruits, accessions, accessories
3. deliver the thing
4. answer for damages
Indeterminate Thing
1. deliver the thing
2. answer for damages
Preserve the Thing (DGFF)
- may the parties agree a higher or lesser diligence?
Higher - YES
Lower - NO (minimum kasi yung DGFF)
Preserve the Thing (DGFF)
- may the parties agree that the debtor will not take care of the thing?
NO (parang tanga lang)
3 Kinds of Fruits
- Natural - spontaneous products of soil, and young / products of animals
- Industrial - through cultivation or labor
- Civil - due to obligations or contracts
When does obligation to deliver the fruit arises?
time to deliver the thing arises
Personal Right vs Real Right
Personal Right
- only against a specific person
- only damages (not ownership)
Real Right
- against whole world
- possession or ownership
Deliver the Fruits
- May the parties agree that fruits will not be delivered?
YES
Accessions vs Accessories
Accessions
- produced by a thing, incorporated or attached there to
- can still function
Accessories
- for embellishment, better use, or completion
- cannot function (ESSENTIAL)
Deliver Accessions and Accessories
- may the parties agree that A&A will not be delivered?
YES
Obligation to Deliver INDETERMINATE THING
- since indeterminate naman, can I deliver something na mas pangit? something na mas maganda?
NO (cannot deliver inferior / superior quality)
Remedies of Creditor (to Give)
Determinate Thing (3) vs Indeterminate Thing (2)
Kailan pwede mag-rescission?
Determinate Thing
1. specific performance + damage
2. rescission + damage - if hindi pwede yung specific performance
3. ask for damages
Indeterminate Thing
1. substitute performance + damage
2. ask for damages
Substitute Performance - ibang tao gagawa then si debtor magbabayad sa tao na yon
Remedies of Innocent Party (Reciprocal Obligation - yung isa ready na, tapos yung isa hindi pa)
Some things to remember for rescission
- specific performance + damage
- rescission + damage
- can only choose one
- if i choose rescission → cannot choose specific performance anymore
- rescission is implied and must be declared by court
Remedies of Creditor
To Do (2) vs Not To Do (2)
What if ginawa naman pero contravention to tenor?
For To Do and Not To Do → cannot be specific performance because that would be tantamount to involuntary servitude
To Do (Contravention to Tenor)
1. substitute performance + damage
2. ask for damages - if si debtor LANG makakagawa
NOTE : poorly done be undone
Not to Do
1. undone @ expense of debtor + damage
2. ask for damages
Successive Rights of Creditor to Satisfy Claims Against Debtor
3 remedies possible
- Attachment of properties
- Accion Subrogatoria → exercise rights and bring actions of debtor
- Accion Pauliana or Rescission → impugn acts of debtor (to defraud)
2 Kinds of Fraud (Dolo)
- Incidental Fraud - @ time of performance
- Causal Fraud - @ time of perfection
If there’s a causal fraud, obligation is void. True or False?
What is the remedy?
False - Voidable (can be annulled)
If there’s an incidental fraud, obligation is void. True or False?
What is the remedy?
False - Valid (may only ask for damages)
Negligence is ommission of diligence required. What is the other term?
Culpa
3 Kinds of Negligence
- Culpa Contractual
- Culpa Aquiliana
- Culpa Criminal
Waiver of action for future fraud is valid. True or False?
False (Void)
Waiver of action for past fraud is valid. True or False?
True (treat it as condonation)
Waiver of action for future negligence is valid. True or False?
True (Void if extraordinary diligence / bad faith)
Waiver of action for past negligence is valid. True or False?
True (treat it as condonation)
May damages arising fron fraud be mitigated?
No (since fraud is intentional)
May damages arising from negligence be mitigated?
Yes
What kind of delay are we talking about? Ordinary or Legal?
Legal Delay
Kinds of Delay (Mora)
- Mora Solvendi
- Mora Accipiendi
- Compensatio Morae
Requisites of Legal Delay (3D)
- Obligation is Due and Demandable
- Did not perform the obligation on time
General Rule : No Demand, No Delay
whether demand is judicial or extrajudicial
Exceptions (no need for demand)
- Stipulated
- Law so provides
- Time is of the essence
- Demand would be useless
- In case of reciprocal obligations
Is it sufficient enough to be called fortuitous event if it cannot be foreseen?
No (it must be inevitable / impossible to avoid too)
General Rule : not liable if fortuitous events
Exceptions
- Stipulated
- Requires assumption of risk
- Law so provides
- guilty of FNDC
- promises to deliver the same thing to 2 or more persons
- thing is generic thing
- in bad faith
Pure Obligations have no condition, no period. It is demandable at once.
Yes
If future and uncertain
- Condition or Period?
Condition
Period if Certain
Debtor binds himself where his means permit him to do so
- Condition or Period?
Period
Kinds of Condition
- Suspensive vs Resolutory
- Potestative vs Casual vs Mixed
- Impossible vs Possible
- Positive vs Negative
Suspensive - give rise to obligation
Resolutory - extinguish obligation (demandable at once)
Potestative - depends on will of parties
Casual - depends on will of 3rd parties
Obligation may be void
- Potestative (certain case)
- Impossible (all cases)
Note to remember in case of pre-existing obligation
Potestative
- debtor + suspensive
- pre-existing obligation = only condition is void, obligation is still valid)
Impossible
- pre-existing obligation = only condition is void, obligation is still valid)
If the obligor voluntary prevents fulfillment, condition shall be deemed fulfilled.
Yes
To Give + Suspensive
- Art 1187 (retroactivity and fruits)
- shall retroact on day of constitution of obligation
- reciprocal = fruits are mutually compensated
- unilateral = debtor is entitled to fruits
For To Do and Not To Do
- retroactivity
court will determine
To Give + Suspensive
- Art 1189 (Improvement, Loss or Deterioration)
Lost
- Without Fault → extinguished
- With Fault → liable for damage
Deterioration
- Without Fault → borne by creditor
- With Fault → specific performance + damage OR rescission + damage (same in remedies of creditor)
Improvement
- Inherent → borne to creditor
- Expense of Debtor → lusufractuary only
Kinds of Period
- Suspensive vs Resolutory
- Conventional, Legal, Judicial
Suspensive (ex die)
Resolutory (in diem)
Conventional → agreed-upon
Parties = has the right to fix period
Exceptions
Court may fix a period in ff. cases:
- no period (but it can be inferred that a period was intended)
- duration depends upon will of debtor (e.g. I will pay when my means permit me to do so)
Benefit of Period
What is the general rule?
presumed to be established for benefit of both creditor and debtor
- debtor cannot be made to pay before period
- creditor cannot be made to accept before period
Debtor’s Loss of Benefit of Period (obligation is demandable at once)
- became insolvent (unless may security)
- failed to deliver the guaranty he promised
- own act → impaired the guaranty, then guaranty was lost through fortuitous event (unless gives new security)
- violation and attempt to abscond
In case of alternative obligation, nakanino yung right of choice?
Debtor
- XPN : expressly granted to creditor
Since na kay debtor yung right of choice, pwede ba siyang pumili ng prestation na iimpossible or unlawful?
No
Rules on Loss of Object (Alternative Obligation)
- ano yung reckoning point if the right belongs to debtor?
NOTE : Kung isang prestation na lang natititra, obligation is now a simple obligation and demandable at once.
yung last prestation (walang pake sa mga naunang prestation)
Rules on Loss of Object (Alternative Obligation)
- if right of choice belongs to creditor, hindi na reckoning point yung last item. What will happen if 1 out of the 3 prestations is lost through own fault?
debtor can still deliver other OR value of the thing + damages (since yung right is na kay creditor na)
Rules on Loss of Object (Alternative Obligation)
- isang prestation na lang yung natitira. Is the obligation now a simple obligation and is demandable at once?
NO
- since right belongs to creditor, he can still choose yung prestation na nawala because of your fault (YES, kahit nawala na siya)*
- in effect, alternative pa rin yung obligation
*He cannot choose those lost through FE
Rules on Loss of Object (Facultative Obligation)
- Before Substitution
- After Substitution
Anong bagay yung dapat ideliver?
Before - Principal
After - Substitute
If silent yung problem, ano yung assumption? Joint or Solidary?
Joint (shares are equal)
Keyword for Joint → proportionate
May joint obligation. Yung isang debtor is minor / insolvent. Dapat ba magshare yung ibang partner?
NO (since this is a joint obligation, meaning proportionate lang yung share nila)
Other Terms for Solidary Obligation
- mancomunada solidaria
- joint & several (!!!)
- in solidum
- juntos o separadamente
- individually & collectively (!!!)
- “I promise to pay” signed by more than 1 individual (!!!)
Remember This!
Yes
Instances when Obligation is Solidary
- when the law so provides
- when nature of obligation requires solidarity
Some examples of “when the law so provides”
- agent exceeded authority BUT principal allowed him to act as though he had full powers
- bailees (loan)
- quasi-delict (!!!)
May solidary obligation. A solidary debtor or solidary creditor made a mode of extinguishment of obligation. Is the obligation extinguished?
YES (since this is a solidary obligation, meaning parang iisa lang sila) - pwedeng manghingi ng reimbursement
May solidary obligation. One of the debtor paid already the obligation, that’s why nanghihingi na siya ng reimbursement sa other debtors. However, A is insolvent.
Other debtors are not liable for the share of A since this is a solidary obligation. True or False?
False (Other debtors WILL BE liable in case one of them is insolvent)
Divisible or Indivisible
- obligation to give a specific thing
Indivisible
An obligation is indivisible. Thus, it cannot be a joint obligation. True or False?
False (indivisibility does not affect joint or solidary)
Penal clause shall substitute the damage and interest. True or False?
NOTE : Penal Clause is only an accessory obligation.
General Rule → True
Exceptions
- debtor refuses to pay the penalty
- debtor is guilty of incidental fraud
General Rule : Payment must be Complete
Exceptions
- Substantial performance in good faith → less damages suffered
- Creditor accepted without protest
Payment by 3rd Person
(✓ Consent, ✓ Interest)
- can the creditor be compelled to accept the payment?
- what is the rights of the 3rd person?
- Yes
- Full Reimbursement + Right of Subrogation
Payment by 3rd Person
(✗ Consent, ✗ Interest)
- can the creditor be compelled to accept the payment?
- what is the rights of the 3rd person?
- No (pero if yung creditor is inaccept naman, walang magagawa)
- Beneficial Reimbursement ONLY
To whom payment is to be made (CSA)
- Creditor
- Successor in Interest (pero syempre, dapat patay na si creditor para maging valid)
- Authorized Person
What is the rule in case paid to a third person?
Valid insofar as it redounded to benefit of creditor
Legal Tender is the payment to which the creditor can be compelled to accept. What are the rules in the ff:
- bills
- coins (P1 above)
- coins (cents)
Are negotiable instruments considered legal tender?
Bills - any amount
Coins (P1 above) - up to P2000
Coins (cents) - up to P200
No
Special Forms of Payment (DPAT)
- Dacion en Pago
- Payment by Cession
- Application of Payments
- Tender of Payment & Consignation
What law govern Dacion en Pago?
Law on Sales (there must be COC)
Dacion en Pago vs Payment by Cession
- ownership is transferred to creditor
Dacion en Pago
- Cession → possession lang yung natransfer since ibebenta ng creditors
Dacion en Pago vs Payment by Cession
- General Rule : Obligation is Extinguished
- Exception : Value of the thing (as agreed upon)
Dacion en Pago
- Cession → Obligation is not extinguished (Up to net proceeds only, kaya if kulang pa rin yung proceeds pwede ka pa rin habulin)
Dacion en Pago vs Payment by Cession
- Many creditors, Many Property
Cession
- Dacion en Pago → 1 Creditor, 1 Property
Dacion en Pago vs Payment by Cession
- Debtor must be insolvent
Cession
- Dacion en Pago → not required
Requisites of Dacion en Pago (1DCP-A)
- 1 Debtor, Creditor, Property
- Acceptance by creditor of delivery
Requisites of Dacion en Pago (1ID, CPM-A)
- 1 INSOLVENT Debtor
- Creditor, Property is many
- Acceptance by creditor of delivery
Application of Payment
- yung isang utang is cash, yung isang utang is sack of rice. Is application of payment applicable?
No (debt must be of same kind)
Application of Payment
- Due date ng utang is December 31,2020. I offered to pay on June 30, 2020. Is application of payment applicable?
No (debt must be due and demandable)
Application of Payment
- Due date ng utang (PHP 100K) is February 16,2020. I offered to pay (PHP 95K) on February 28, 2020 since ayokong lumaki pa lalo yung interest. Is application of payment applicable?
No (payment must be complete - partial payment X)
Requisites of Application of Payments (DDS-C)
- debts are due and demandable, same kind
- complete payment
If debtor exercise right to apply payment, the above requisites are required.
What if debtor did not exercise right?
- creditor issued receipt
- creditor did not issue receipt
if nag-issue yung creditor ng receipt, dun sa obligation na yun maaapply yung payment
if hindi nag-issue ng receipt
- unahin muna yung most onerous
- if same burden lang lahat, apply proportionately
Nagtender of payment ako. Sabi ko kay creditor gagawin ko na yung obligation. Is the obligation extinguished?
No (tender of payment is only a preparatory act)
Requisites of Consignation
- Today is February 12, 2025. Due date ng debt ko is noong February 1 pa. Can I apply for consignation?
No
- tama naman na valid debt must be due and demandable
- however, dapat is nagtender of payment ulit ako between February 1 and February 12
Requisites of Consignation
- I already gave prior notice of my consignation. With that, I applied for consignation. I can already give my payment.
No
- tama naman na dapat may prior notice of consignation
- however, dapat is may subsequent notice of consignation din
Requisites of Consignation
- May prior notice na, may subsequent notice na. The obligation is not extinguished. True or False?
False
- there must be approval of the court
Requisites of Condonation / Remission
- must be accepted by debtor (!!!)
- gratuitous and both have legal capacity
- comply with forms of donation
Explain the forms of donation.
- If real property → public instrument
- Personal Property (less than 5K) → oral or written
- Personal Property (more than 5K) → written
Requisites of Compensation
- both parties must be principal debtor and principal creditor of their own right
- both debts are money
What is the meaning of principal? What if both debts are consumable?
- principal → compensation cannot take place if yung right to collect mo is because of contract of agency
- must be of same kind or quality
Requisites of Compensation
- both debts must be due, demandable, liquidated
- no controversy
What is the meaning of liquidated?
- liquidated → exact na dapat yung amount
Instances when Compensation Won’t Take Place
- depositum (as to depositary)
- bail (as to bailee)
- commodatum
- support (as to one giving support)
- crimes
Give illustration
Yes
Nafulfill yung mga requisites of compensation stated above. Is compensation automatic?
Yes (kahit di pa aware yung creditor at debtor sa compensation, automatic macocompensate)
Original obligation is void. Because of that, magnonovation kami para nga hindi na maging void yung obligation. Can novation go through?
No (both the old and new obligation must be VALID)
Real Novation vs Personal Novation
- there is a change in object / change in principal condition
Real Novation
Real Novation may be
- Express
- Implied
- Express → unequivocal terms
- Implied → old and new obligations are incompatible of each other (they cannot stand together)
Personal Novation (Subrogation)
- Conventional
- Legal
Legal
- creditor pays another creditor who is preferred (even if w/o consent)
- 3rd person pays (w consent)
- interested person (even if w/o consent)
Personal Novation (Substitution)
- Expromision
- Delegacion
What if 3rd person (new debtor) pays? What can he get from the original debtor?
Expromision → beneficial reimbursement
Delegacion → full reimbursement
Personal Novation (Substitution)
- Expromision
- Delegacion
What if 3rd person (new debtor) is insolvent? Is the original debtor still liable?
Expromision → not liable
Delegacion → not liable (XPN : insolvency was already existing, public knowledge, alam na ni debtor)
Personal Novation (Substitution) will go through without the creditor’s consent. True or False?
False (dapat may creditor’s consent)
