Part I Flashcards
What is an obligation?
An obligation is a juridical necessity to give, to do or not to do. (Art. 1156)
What are the kinds of obligations?
Natural and civil.
What do you mean by obligation being a juridical necessity?
Obligation is a juridical necessity because in case of non-compliance, the courts of justice may be called upon to enforce its fulfillment or, in default thereof, the economic value it represents.
Obligor or debtor v. obligee or creditor
Obligor or debtor
- he who has the duty of giving, doing, or not doing
Obligee or creditor
- he who has the right to the performance of the obligation
What are some of the natural obligations?
Title III, Articles 1423-1430.
Examples (not exclusive):
- performance after civil obligation has prescribed
- reimbursement of third person for debt that has prescribed
- restitution by minor after annulment of contract
- delivery by minor of money or fungible thing in fulfillment of obligation
- performance after action to enforce civil obligation has failed
- payment by heir of debt exceeding the value of property inherited
- payment of legacy after will has been declared void
Essential requisites of an obligation?
- Passive subject (debtor or obligor)
- Active subject (creditor or obligee)
- Object or prestation (subject matter of the obligation)
- Juridical or legal tie or efficient cause (like anong law or source ng obligation)
Under a building contract, X bound himself to construct a house for Y for P1,000,000. Point out the elements.
X = passive Y = active Building = Object Contract = Juridical Tie
After X had constructed the house, X becomes the active subject and Y becomes the passive subject.
When do actions prescribe?
Actions prescribe by the mere lapse of time fixed by law. (Article 1139)
Prescription of written contract? Prescription of oral contract?
Art. 1144 Upon a written contract Upon an obligation created by law Upon a judgment = Within 10 years from the time the right of action accrues
Art. 1145 Upon an oral contract Upon a quasi-contract = within 6 years - pero 4 years daw sabi ni sir ??
Art. 1146
Upon an injury to the rights of the plaintiff
Upon a quasi-delict
= within 4 years
Art. 1154
The period during which the obligee was prevented by a fortuitous event from enforcing his right is not reckoned against him.
**Dapat may demand muna kasi wala naman sa law na default yun.
What are the sources of obligations?
- Law
- imposed by the law itself - Contracts
- arise from the stipulation of the parties - Quasi-contracts
- arise from lawful, voluntary and unilateral acts which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of the other
a. Negotiorum Gestio
b. Solutio Indebiti
c. Other Quasi-contracts - Acts or omissions punished by law
- arise from civil liability as a consequence of a criminal offense - Quasi-delicts or torts
- arise from damage by fault or negligence without any contractual relation existing between the parties
What is a contract?
A meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. (Art. 1305)
Are there any other obligations as defined in Article 1156?
No. The enumeration by the law is exclusive.
Obligation came from what Latin Word?
Obligatio - tying or binding
Obligare - to bind
Difference between a creditor and an obligee
They can be used interchangeably but technically
creditor - obligation to give
obligee - obligation to do
Latin term for juridical tie
paritas iuris
Paano nagkakaroon ng juridical tie?
From the sources of obligations:
a. Law or unilateral acts
b. Contracts or bilateral acts
c. Delicts or quasi-delicts or unilateral acts
d. Auto contracts (One person but 2 parties. B is represented by A)
Does the court still have jurisdiction on natural obligations?
Yes.
A is entitled to pay P1M to B. It is a pure obligation without any conditions. The contract was executed on Sept. 21, 2020. No demand was given. On Oct. 21, 2030, B demanded from A. Nagprescribe na yung deadline to pay pero nagbayad padin sya kasi nahihiya sya. Tapos nung nawalan na sya ng pera naisip nya kukunin nya ulit kasi nagprescribe naman na eh. Pwede pa ba bawiin?
No right to enforce but there is a relative juridical effect pag natural obligation. Binigay na voluntarily eh.
Relative juridical effect - may right of retention na yung nakatanggap ng bayad
What is prescription?
Prescription is the loss or acquisition of a right through lapse of time.
What can stop prescription?
Demands.
**Different from “how is the running of prescription interrupted?”
What is a positive law?
Human-made laws that oblige or specify an action.
What is the rationale behind a prescription?
To protect the rights of those who are vigilant. If di ka naman maingat to protect your rights, edi why would the courts do the same? the court will not aid those who are sleeping with their rights.
Explain Article 1158.
“Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book.”
Obligation mo to read and comply; wag na mag-assume nakasulat na nga sa mga batas eh! lol
An agreement is necessary in order that a party may demand from another the fulfillment of an obligation. T or F
FALSE
There are sources of obligations which do not necessitate an agreement. - law (ex: payment of taxes)
What is the characteristic or fundamental principle of contract that gives them the force of law?
Autonomy of contracts
Contract has the force of law provided that it is not contrary to law, morals, good customs, public order or public policy.
What is a quasi-contract?
Art. 2142.
Juridical relations arising from lawful, voluntary and unilateral acts by virtue of which the parties become bound to each other.
“Parang contract”
Requisites: lawful, unilateral, voluntary
Objective: that no one shall be unjustly enriched at the expense of others
Nominate v. innominate contracts
Nominate contracts are those which have a particular name to distinguish them; as, purchase and sale, hiring, partnership, loan for use, deposit, and the like.
Innominate contracts, are those which have no particular name.
Principal forms of quasi-contracts
- Negotiorum Gestio (inofficious manager) - Arises when a person voluntarily takes charge of the management of the business or property of another without knowledge or consent from the latter
- Solutio Indebiti (unjust enrichment) - Takes place when a person received something from another without any right to demand for it, and the thing was unduly delivered to him through mistake.
Elements of negotiorum gestio
- The gestor must voluntarily assume the agency or management of the business or property of another
- The business or property must be either neglected or abandoned
- The agency or management must not be authorized by the owner either expressly or impliedly
- The assumption of the agency or management must be made in good faith
Pumasok ka sa Jollibee tapos sabi mo ikaw na magmamanage. Pwede ba yun?
No. Hindi naman abandoned eh.
Requisites of solutio indebiti
- Something has been received when there was no right to demand it
- The same was unduly delivered through mistake
Examples of innominate contracts
Art. 2164 - support given by a stranger
Art. 2165 - funeral expenses borne by a third person without knowledge of relatives
Art. 2166 - support orphan, insane, indigent
Art. 2167 - accident, injured, ill, treatment - victim not in a position to give his consent
Art. 2168 - fire flood storm or other calamity - property destructed but saved by another
Art. 2169 - government, upon failure of person to comply with health and safety regulations, undertakes necessary work
Art. 2170 - accident or fortituous event - movable separately - co-owners
Art. 2173 - a third person, without knowledge of debtor, pays debt
Solutio indebiti v. Accion in rem verso
Solutio indebiti (SI) v. Accion in rem verso (AIRV)
- Mistake is an essential element in SI which is not necessary in AIRV;
- An AIRV is merely an auxilliary action, available only when there is no other remedy on contract, quasi-contract, crime or quasi-delict
Prescription v. Laches
EFFECT OF THE DELAY
Laches
- case to case basis; based on equity
- basta maestablish na pinabayaan mo yung right mo
Prescription
- provided by the law (statutory-based)
- you are the owner of a parcel of land. Hinayaan mo na magsquat doon mga tao. Your land is untitled. For how many years, although ikaw ang may-ari, dahil sa iyong negligence, that parcel of land may become a property of those informal settlers.
What is a quasi-delict?
An act or omission by a person which causes damage to another in his person, property, or rights giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties.
Difference between a quasi-delict and a tort?
Tort is broader.
Requisites of a quasi-delict
- There must be an act or omission by the defendant
- There must be fault or negligence by the defendant
- There must be damage caused to the plaintiff
- There must be a direct relation or connection of cause and effect between the act or omission and the damage
- There is no pre-existing contractual relation between the parties
What is negligence?
Negligence or culpa. The failure to take reasonable care, causing injury or loss to another person
a. Culpa aquiliana - quasi-delict
b. Culpa contractual - Art. 1173
Test of Negligence
Would a prudent man foresee harm as a reasonable consequence to the act pursued?
Fraud v. Negligence
(1)
F: deliberate intention to cause damage or injury
N: no such intention
(2)
F: waiver for liability is void
N: may be allowed in negligence
(3)
F: must be clearly proved, mere preponderance of evidence not sufficient
N: presumed from the breach of a contractual obligation
(4)
F: Liability cannot be mitigated by the courts
N: may be reduced according to the circumstances
In criminal cases, only 1 remedy can be chosen, either from delict or quasi-delict. The plaintiff cannot recover twice. T or F.
True.
Quasi-delict v. Crime
(1)
QD: Negligence
C: Criminal or malicious intent
(2)
QD: Concerns private interest
C: Affects public interest
(3)
QD: Civil liability only
C: Two liabilities - criminal and civil
(4)
QD: Restitution, reparation and indemnification
C: Imprisonment
(5)
QD: Liability can be compromised as any other civil liability
C: Criminal liability cannot be compromised or settled
(6)
QD: Preponderance of evidence
C: Beyond reasonable doubt
(7)
QD: Liability of the person responsible for the author of the negligent act or omission is direct and primary.
C: Subsidiary
What is a crime?
Acts/omission punishable by law
Civil liability and criminal liability are generally tried together unless…
There is
- Waiver
- Reservation
- Civil case filed prior to the prejudicial question
*Civil case and criminal case cannot be tried simultaneously except in cases falling under Articles 32, 33, 34, and 2176
Why is it important to know the source of a particular obligation?
Theory of plaintiff, defense of defendant, who to sue, etc. will vary depending on the source of obligation.
Ex: Criminal case in a contract of common carrier. Who will you sue?
If plaintiff chooses
a. Delict - the complaint shall be against the DRIVER; operator will be subsidiarily liable.
b. Quasi-delict - the complaint shall be against BOTH the driver and the operator, both are principally liable.
c. Breach of contract of carriage - the complaint shall be against the OPERATOR
- Although victim has a choice, he cannot recover twice from what he is entitled to.
- Read Araneta v. Hoya
Who is the creditor or debtor in bilateral agreements?
Both parties are reciprocally debtors and creditors.
What are the forms of obligations?
The form of an obligation refers to the manner in which an obligation is manifested or incurred. It may be in oral or in writing, or partly oral and partly in writing.
Period of prescription for actions based upon a written contract
Actions based upon a written contract should be brought within 10 years from the time the right of action accrues. The period of prescription commences, not from the date of execution of the contract but from the occurrence of the breach.
Kinds of obligation according to subject matter
- Real obligation (to give)
- Personal obligation (to do)
a. Positive personal obligation (to do or to render service)
b. negative personal obligation (not to do)
The liability of the defendant in a single action may arise from more than one source of obligation. T or F.
True. Ex: law and contract.
Can an employee demand free legal assistance from his employer?
No. No law requires this. He cannot demand such even if the said legal assistance is needed from his recovery of damages to a stranger while in the performance of his duties.
Does a private school have a legal obligation to provide clothing allowance to its teachers?
No law imposes this.
Does a person who wins money in gambling have the duty to return his winnings to the loser?
Yes. In pursuant to Article 2014.
X, by virtue of having been sent for by B and C, attended as physician and rendered professional services to a daughter-in-law of B and C during a difficult and laborious childbirth.
Who is bound to pay the bill: B and C, the parents-in-law of the patient, or the husband of the latter?
The rendering of medical assistance in case of illness is comprised among the mutual obligations to which spouses are bound by way of mutual support. If spouses are mutually bound to support each other, there can be no question that when either of them by reason of illness should be in need of medical assistance, the other is to render the unavoidable obligation to furnish the services of a physician and is liable for all expenses, including the fees for professional services.
B and C not having personally bound themselves to pay are not liable.
X of legal age, bought 2 vessel from B, the purchase price thereof being paid by C, X’s father. Subsequently, differences arose between X and C. The latter brought action to recover the vessels, he having paid the purchase price.
Is there any obligation on the part of X to transfer the ownership of the vessel to C?
None. If any such obligation was ever created on the part of X, said obligation must arise from law. But obligations derived from law are not presumed. Only those expressly determined in the Civil Code or in special laws are demandable. Whatever right C may have against X either for the recovery of the money paid or for damages, it is clear that such payment gave him no title, either legal or equitable, to these vessels.
** If X were a minor, the vessels would belong to C in ownership and usufruct under Article 161 of the old Civil Code (now Art. 324). Under Art. 1448, the payment may give rise to a gift or an implied trust.
Do contracts need to be approved by the government?
Only some.
Ex: Contract for overseas employment must be approved by the Philippines Overseas Employment Administration under Art. 21 of the Labor Code
X verbally agrees to pay Y the balance of an account in advance, notwithstanding the different stipulation of a prior written agreement.
Is X bound to perform said obligation?
Yes. Since he agreed to pay Y the balance of the account independently of the terms of the written contract, he must perform his obligation to pay according to the tenor if his verbal agreement which has the force of law between them.
D borrowed money from C to be paid within a certain period, under the agreement that, if D fails to pay at the expiration of said period, the house and lot described in the contract would be considered sold for the amount of the loan.
D failed to pay as promised. C brought action for the delivery of the house and lot.
Are both contracts valid and, should therefore be given effect?
Yes. The fact that the parties have agreed at the same time, in such a manner that the fulfillment of the promise of sale would depend upon the non-payment or return of the amount loaned has not produced any change in the nature and legal conditions of either contract, or any essential defect which would nullify them.
As the amount loaned has not been paid and continues in possession of the debtor, it is only just that the promise of sale be carried into effect, and the necessary instruments be executed. That which is agreed to in a contract is law between the parties, and must be enforced.
**In this case, the Court found that no contract of mortgage, pledge, or antichresis was entered into.
By virtue of an agreement between X and Y, X assisted Y in improving a large tract of land which was later declared by the court as belonging to C.
Has X the right to be reimbursed by Z for X’s services and expenses on the ground that the improvements are being used and employed by Z?
No. From the language of Article 2142, it is obvious that a presumed quasi-contract cannot emerge as against one party when the subject matter thereof is already covered by an existing contract with another party. X’s cause of action should be against Y who, in turn, may seek relief against Z.
X, a tax-exempt cooperative store, paid taxes to the City of Manila, believing that it was liable.
May X recover the payment?
Yes, as it was made under a mistake.
X stole the car of Y. If X is convicted, the court will order X to…
- to return the car (or to pay its value if it was lost or destroyed)
- to pay for any damage caused to the car
- to pay such other damages suffered by Y as a consequence of the crime
What is a specific or determinate thing?
Something that is particularly designated or physically segregated from all others of the same class.
What is a generic or indeterminate thing?
Something that belongs to a class or genus to which it pertains and cannot be pointed out with particularity.
Duties of debtor in obligation to give a determinate thing
- To preserve or take care of the thing due
- To deliver the fruits of the thing
- To deliver its accessions and accessories
- To deliver the thing itself
- To answer for damages in case of nonfulfillment or breach
Duties of debtor in obligation to deliver a generic thing
- To deliver a thing which is of the quality intended by the parties taking into consideration the purpose of obligation and other circumstances
- To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or contravention of the tenor thereof.
Different kinds of fruits
- Natural fruits - spontaneous products of the soil and the young and other products of animals
- Industrial fruits - produced by lands
- Civil fruits - derived by virtue of a juridical relation
S sold his horse to B for P15,000. No date or condition was stipulated for the delivery of the horse. While still in the possession of S, the horse gave birth to a colt.
Who has the right to the colt?
In a contract of sale, “all the fruits shall pertain to the vendee from the day on which the contract was perfected. Hence, B is entitled to the cold.
But S has the right to the colt if it was born before the obligation to deliver the horse has arisen and B has not yet paid the purchase price.
Personal right v. Real right
(1)
PR: right or power of a person to demand from another the fulfillment of the latter’s obligation to give, to do, or not to do.
RR: right or interest of a person over a specific thing without a definite passive subject against whom the right may be personally enforced.
(2)
PR: there is a definite active subject and a definite passive subject
RR: there is only a definite active subject without any definite passive subject
(3)
PR: binding or enforceable only against a particular person
RR: directed against the whole world.
How is ownership and real rights over property acquired?
Ownership and other real rights over property are acquired and transmitted by law, by donation, by testate and intestate succession, and in consequence of certain contracts by tradition or delivery.
Remedies of creditor in real obligation
- Specific real obligation
a. demand specific performance or fulfillment (if still possible) with a right to indemnity for damages
b. demand rescission or cancellation with a right to recover damages
c. demand the payment of damages only - Generic real obligation
a. can be performed by a third person since the object is expressed only according to its family or genus
b. creditor has right to recover damages under Article 1170 in case of breach of obligation.
Can in indeterminate thing be the object of destruction by a fortuitous event?
No. Genus never perishes.
What is an accession?
Accessions are the fruits of, or additions to, or improvements upon a thing.
What is an accessory?
Accessories are joined to, or included with, the principal thing for the latter’s embellishment, better use, or completion.
Right of creditor to accessions and accessories.
All accessions and accessories are considered included in the obligation to deliver a determinate thing although they may not have been mentioned.
In the phrase, “If a person obliged to do something fails to do it…” what are the situations contemplated here? (Art. 1167)
- the debtor fails to perform an obligation to do
- the debtor performs an obligation to do, but contrary to the terms thereof
- the debtor performs an obligation to do but in a poor manner
Remedies of creditor in positive personal obligation?
- If the debtor fails to comply with his obligation to do, the creditor has the right:
a. to have the obligation performed by himself, or by another unless personal considerations are involved, at the debtor’s expense
b. to recover damages - In case the obligation is done in contravention of the terms of the same or is poorly done, it may be ordered by the court upon complaint that it be undone if it is still possible to undo what was done.
Remedies of creditor in negative personal obligation
- Undoing of the forbidden thing plus damages.
- If not possible to undo what was done, his only remedy is an action for damages caused by the debtor’s violation of his obligation.
What is delay?
Failure to perform an obligation on time which failure, constitutes a breach of obligation.
Legal delay v. ordinary delay (failure to perform an obligation on time)
What are the kinds of delay?
- Mora solvendi - delay on the part of the debtor to fulfill his obligation by a reason of a cause imputable to him
- Mora accipiendi - delay on the part of the creditor without justifiable reason to accept the performance of the obligation
- Compensatio morae - the delay of the obligors in reciprocal obligations
Requisites of delay
- failure of the debtor to perform his (positive) obligation on the date agreed upon
- demand (not mere reminder or notice) made by the creditor upon the debtor to fulfill, perform, or comply with his legal obligation which demand, may be either judicial or extra-judicial
- failure of the debtor to comply with such demand
Explain demand and delay.
There is no delay if the obligation is not yet due or demandable. The creditor has the burden of proving that a previous demand has been made.
Effects of mora solvendi
a. the debtor is guilty of breach of the obligation
b. he is liable for interest in case of obligations to pay money or for damages in other obligations
c. he is liable even for a fortuitous event when the obligation is to deliver a determinate thing. However, if the debtor can prove that the loss would have resulted just the same even if he had not been in default, the court may equitably mitigate the damages.
The general rule is that delay is established only upon demand. What are the exceptions? When is demand not necessary?
- When the obligation so provides
- When the law so provides
- When time is of the essence
- When demand would be useless
- When there is performance by a party in reciprocal obligations
Effects of mora accipiendi
a. the creditor is guilty of breach of obligation
b. he is liable for damages suffered, if any, by the debtor
c. he bears the risk of loss of the thing due
d. where the obligation is to pay money, the debtor is not liable for interest from the time of the creditor’s delay
e. the debtor may release himself from the obligation by the consignation of the thing or sum due
Effects of compensatio morae
a. delay of obligor cancels out the effects of the delay of the obligee and vice versa
b. if the delay of one party is followed by that of the other, the liability of the first infractor shall be equitably tempered or balanced by the courts. If it cannot be determined which of the parties is guilty of delay, the contract shall be deemed extinguished and each shall bear his own damages.
