OBLIGATIONS OBLIGATION — juridical necessity to give, to do or not to do ‘4 ELEMENTS OF OBLIGATION 1. ACTIVE SUBJECT (creditor/obligee) — whose obligation is constituted 2. PASSIVE SUBJECT (debtor/obligor) ~ has duty to aive, to do or not to do 3. OBJECT/PRESTATION ~ subject mat ‘4. JURIDICAL/LEGAL TIE (vinculumietticient cause) ~ reason CIVIL OBLIGATION NATURAL OBLIGATION ‘| Berived from positive taw derived from equity & justice enforceable by court action not enforceable by court action 5 SOURCES OF OBLIGATION 4. LAW 2. CONTRACTS 3. QUASI-CONTRACTS ~ atise from lawful, voluntary acts: no one shall be unjustly enrichec... 2Kinds ‘a. Solutio indebiti ~ something received (delivered on a mistake), no right to demand it bb. Negotiorum gestio — voluntary mgt of property/affairs of another wio his knowledge/consent, 4, QUASI-DELICT/TORTS/CULPA AQUILIANA — arise from damage; faultinegligonce 5. CRIMES/ACTS/OMISSIONS punished by law — arise from civil lability that is a consequence of a criminal offense |DILIGENCE OF A GOOD FATHER OF A FAMILY |- care nees to be exercised by a debtor to deliver/give determinate thing Exception: When law/stipulation of parties requires a differnt standard of care (slighVextraordinary diligence) When creditor is entitled to the fruits Rule: The creditor has personal right (right to ask for delivery) from the time the obligation to deliver arises. But NO real right (right enforceable against the whole world) until itis delivered 3 KINDS OF FRUITS 1. NATURAL ~ wio human intervention 2. INDUSTRIAL ~ w/ human intervention 3. CIVIL — derived by virtue of juridical relation Croditor’s rights if debtor falls to comply w/ the obligation 1. Determinate Performance Damages Generic |. Performance |. Damages Obligation be complied at debtor's expense Creditor’s rights if debtor does in contravention 1. Damages 2. Ask it be UNDONE at debtor’s expense FORTUITOUS EVENT ~ cannot be foreseen, if foreseen, inevitable General Rule: No person liable to fortuitous event. Exceptions: 1. Law states 2. Stipulation/contract states 3. Assumption of risk 14, Delay 5. Debtor promises deliver to 2/more persons who do not have same interest (bad faith){EFFECTS OF FORTUITOUS EVENT to thing to be delivered - extinguish the obligation if determinate; generic does not extinguish the obligation 3 MISCELLANEOUS RULES ON PERFORMANCE OF OBLIGATION 1. When to deliver determinate, accessions (additions/ improvements) and accessories (joined/included with the principal) are INCLUDED even not mentioned. 2. If debtor fails to do, i shall be DONE AT HIS EXPENSE, same with doing the contravention; poorly done be undone, 3. In obligation not to do, and obligor does what is forbidden, shall be UNDONE AT HIS EXPENSE. 4 GROUNDS; debtor liable for damages 1. Defaulmora 2. Fraudidolo 3. Negligence/culpa '4. Contrary to terms of obligation 1. DEFAULTIMORA ~ delay ‘kinds ‘2. Mota solvendi - debtor's delay to give (teal ob), to do (personal ob.) b. Mora accipiande ~ creditor's delay to accept c. Compensatio Marae — delay of both in reciprocal obligation CONCEPT OF DELAY General Rule: No demand, No delay Exceptions: 1. Law states 2 Obligation states 3. Time is the essence ‘4. Demand be useless if delay 5. Debtor guilty of delay J EFFECTS OF DELAY 1. Damages 2. When to deliver determinate thing, STILL LIABLE in fortuitous event. 2. FRAUDIDOLO — conscious, deliberate, intentional evasion of fulfilment 2Kinds a. Dolo causante/Causal fraud — fraud in obtaining consent; consent is defective, contract is voidable. Remedy: annulment ’, Dolo incidentesIncidental fraud — fraud wic viiates consent. Remedy: damages 3. NEGLIGENCE/CULPA — voluntary act/omission; no bad faith intended ‘3Kinds a, Culoa aquiliana/Civil nealigence — quasi-delictvtorts 'b. Culpa contractual/Contractual nealiaence ~ breach ¢. Culpa criminal/Criminal negligence — crime/delict '4. Contrary to the terms of obligation 2 RULES OF PRINCIPAL & INSTALLMENT 1. Receipt of principal wio mention of interest, presumed interest is paid also. 12. Receipt of latter installment w/o mention of prior installment, presumed prior installment is paid also. ‘4 SUCCESSIVE RIGHTS OF CREDITOR to satisfy claim against DEBTOR 1. Exact payment 2. Attach debtor's properties 3. Accion subrogatoria — exercise rights & actions except inherent in person ‘4, Accion pauliana — cancel acts/contracts by debtor to defraud creditor | TRANSMISSIBILITY OF RIGHTS ‘General Rule: ALL RIGHTS are transmissible, 2. Contract states 53. Obligation is purely personal10 KINDS OF OBLIGATIONS 1. Pure 12. Conditional 3 Alternative 4, Facultative 5. Joint 6. Solidary 7. Divisible 8. Indivisible 9. Obligation w! a period 10. Obligation w/ a penal clause 1. PURE OBLIGATION = wlo condition, demandable at once (pure has resolutory condition/perioc) 2. CONDITIONAL OBLIGATION there is condition in performance; future & uncertain 2Kinds ‘2. Suspensive condition — happening of condition gives RISE to obligation », Resolutory condition — happening af condition EXTINGUISHES obligation 6 MISCELLANEOUS RULES ON CONDITIONAL OBLIGATION 1. Impossible conditions, contrary to law, shall ANNUL obligation. 2. The condition not to do an impossible thing is considered not agreed upon. 3. The condition that happens in determinate time, EXTINGUISHES obligation. ‘4. The condition that happens in INDETERMINATE time, obligation only effective at arrival 5. The condition is fuliled if DEBTOR prevents fulilment. 6. The effect of conditional obligation, once fuliled: to give: retroact to the day of constitution of obligation - has reciprocal prestations: fruits & interests be mutually compensated has unilateral obligation: debtor shall give fruits & interests RULES in case of Loss, Improvement, or Deterioration of thing during the pendency of condition 1. LOST ‘a. wi debtor's fault — damages ». wlo debtor's fault - extinguishes obligation 2. DETERIORATION ‘a. wi debtor's fault - (1) cancel obligation & damages; or (2) fulfil obligation w/ damages b. wlo debtor's fault ~ creditor suffer impairment 3, IMPROVEMENT a. By naturefime ~ benefit to creditor b. at_expense of debtor— debtor no right than that granted to usufructuary (debtor no right to compensate amount for improvement) {EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITION ' General Rule: The obligation becomes effective retroactively to the day obligation was constituted. ‘Exceptions: 1. In reciprocal obligation, fruits & interests during pendency of condition shall compensate each other. 2. In unilateral obligation, debtor gets fruits & interests unless there is a contrary intent. 3 EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION 1. Extinguish obligation. 2. Both parties restore what they received plus fruits & interests. 8. The rule on L, D, or | will apply to person who has to return the thing, When one of debtors in reciprocal obligation does not comply w/ his obligation 1. The right of injured party is (1) cancel contract & damages; or (2) fulfil obligation & damages3 Kinds of Obligation (Accdng to PERSON OBLIGED) 1. UNILATERAL ~ only 1 party obliged to comply 2, BILATERAL ~ both parties; performance not same time 3. RECIPROCAL — both patties; performance same time 3. OBLIGATION W/ A PERIOD DAY CERTAIN - must come, not known when 1. Little by litle 22. In partial payment 3. Payable ASAP 4, When | can afford it '5. When | have the money 6. When | am able to 7. When my means permit me to do so + demandabilty/extinguishment subject to the expiration of period PERIOD — interval of time; either suspends demandability or produces extinguishment 7 CASES CONSIDERED TO BE “OBLIGATION W/ A PERIOD” PERIOD. CONDITION ‘certain uncertain future cnly future/past but unknown, influence upon obligation) only upon its demandability (Von the very existence of obligation tself FOR WHOSE BENEFIT IS THE PERIOD? General Rule: Both the debtor & creditor. Exception: If the term of obligation has to favor one of them. 1. Debtor is insolvent. {2 Debtor attempts to abscond. 3. Impairment of guaranteesisecurites. 4. Failure to furnish quarantees/securities promised. 5. Violation of undertaking '4. ALTERNATIVE OBLIGATION + w/2 oF more prestations, only 1 is due. 5. FACULTATIVE OBLIGATION = w/ ONLY 1 prestation but can be substituted. ALTERNATIVE prestations LOST w! debtor's fault Creditor entitled to damages but needs ff requisites: 1. Debtor can choose. 2. All prestations lost/become Impossible due to debtor's fault, ‘Therefore, NEITHER of them can demand performance of obligation, 5 INSTANCES WHEN DEBTOR LOSES RIGHT TO USE “PERIOD” "ALTERNATIVE OBLIGATION FACULTATIVE OBLIGATION Several prestations due, giving one is sufficient ‘one prestation due, but can be subtituted fight to choose (debtor) unless granted to creditor right to choose DEBTOR ONLY. If of the prestation is illegal, others may be valid, ‘obligation remains nullity of principal carries w/ it nullity of accessory! substitute loss/impossibilty of ALL prestations due, wo debtor's fault, extinguishes obligation loss/impossibilty of presta-tion due, wio debtor's fault, extinguishes obligation(3) SUMMARY OF RULES, OBLIGATIONS, & RIGHTS OF DEBTOR IN ALTERNATIVE OBLIGATION 1. If of prestations lost through fortuitous event, shall still be perform by choosing (creditor) from the remainder. 12. If of prestations lost through debtor's fault, creditor may claim any of remainders w/ damages. 3. IL ALL prestations lost through debtor's fault, crecitor choose price w/ damages. RULES on LOSS/DETERIORATION of the thing intended as SUBSTITUTE in FACULTATIVE OBLIGATION 1. If there is a loss/deterioration of thing intended as substitute, debtor is NOT liable if NOT HIS FAULT. But if substitution is already made, debtor is liable for loss of substitute when in DELAY, NEGLIGENCE, or FRAUD. 6. JOINT OBLIGATION obligation is to be pi proportionately by debtors or to be demanded proportionately by creditors 7, SOLIDARY OBLIGATION each one of debtors has right to render or each one of creditors has right to demand the entire compliance w! prestation MAXIMS & SYNONYMS MAXIMS ‘SYNONYMS: _[QOINT Obligation “To each his own” proportionate ‘SOLIDARY Obligation “One for all, all for one” individually & collectively (3) SOLIDARY OBLIGATION EXIST ONLY IF: ‘RULES 1. Law states, 2. Stipulation states 3. Nature of obligation requires 2 PRESUMPTIONS THAT OBLIGATION IS JOINT 1. The debts be divided as many shares as there are debtorsicreditors. 2. The debtors/creditors are distinct from one another. DIVISIBLE OBLIGATION + prestation is capable of partial performance 9. INDIVISIBLE OBLIGATION prestation incapable of partial performance 10, OBLIGATION W/ A PENAL CLAUSE one w/ accessory undertaking attached to obligation to assume greater liablty in case of breach/non-fulfilment of obligation 3 PURPOSES OF PENAL CLAUSE {1 Ensure performance of obligation 2. Substitute for damages & interest in case of noncompli-ance 3. Penalize debtor in case of breach In case obligation has a PENAL CLAUSE General Rule: Penalty takes the place of damages & interest in case of non-compliance. Exceptions: 1. Stipulation states. 2. Debtor refuse to pay penalty. 3. Debtor guilty of fraud in performance of obligation, NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL CLAUSE Nullty of principal obligation = nullity of penal clause Nullty of penal clause = NOT nulity of principal obligation10 MODES OF EXTINGUISHMENT OF OBLIGATIONS 1. Payment or performance 22, Prescription 3. Compensation ‘4. Confusion/merger '5. Condonation/remission 6. Fulfilment of resolutory condition 7. Annulment 8. Rescission 9. Novation 10. Loss of thing due 1. PAYMENT/PERFORMANCE - Payment means delivery of money & performance of obligation 2 PLACE OF PAYMENT 1. Atplace agreed upon 22. Itw/o agreement ‘a. Object is indeterminate — paid at domicile of DEBTOR . Object is determinate — place of thing at the time of constitution of obligation |4 SPECIAL MODES OF PAYMENT ‘a. Application of payment b. Cession c. Tender of payment & consignation 1d. Dacion in payment a. APPLICATION OF PAYMENT designation of debt 10 w/e payment must be applied when debtor has several creditor. igations of same kind in favor of same| 3 REQUISITES OF APPLICATION OF PAYMENT 1. Only 1 debtor & 1 creditor 2.2 ot more debts, same kind 3. All debts are due 4. Insufficient payment to exinguish ALL debts 3 RIGHTS TO MAKE APPLICATION OF PAYMENT 4. Right belongs to CREDITOR. 12. If debtor does not avail, creditor can give him receipt designating the debt from which payment will be applied. 3. It debtor accepts the receipt, he cannot complain unless THERE IS just cause to invalidate the contract. b. CESSION = debtor abandons ALL his property for creditor's benefit to obtain payment from proceeds of his property 5 REQUISITES OF VALID CESSION 1.1 debtor & 2 or more creditors 12. Debtor is in partialtotal insolvency. 3. Debtor to deliver ALL his property to creditors 14. Debt is cue & demancable. 5. Creditors must sell the properties & apply the proceeds to their respective credits proportionately. ¢. DACION IN PAYMENT (dacion en pago) + alienation of property to the creditor in satisfaction of debt 3 REQUISITES OF DACION IN PAYMENT 1. Consent of creditor 12. NOT prejudicial to another creditor 3. Debtor not insolvent dectared by a judicial decreeCESSION, DACION IN PAYMENT [alproperties NOT all properties require more than 1 creditor NOT require all creditors [NOT act of novation ‘act of novation [Nor transfer ownership ‘transfer ownership requites partiaVtotal insor-vency ‘may happen curing solvency of debtor d. TENDER OF PAYMENT & CONSIGNATION ‘TENDER OF PAYMENT — act of offering the creditor what is due to him w/ a demand that the creditor accept it CONSIGNATION — act of depositing thing due w/ the court when creditor cannot/refuses acceptance of payment 5 REQUISITES OF CONSIGNATION 1. Debt due. 2. Creditor refused the tender of payment w/o just cause 3. Notice of consignation already given to persons interested in fulfillment of obligation '4. Consignation of thing/amount due 5. Subsequent notice of consignation to interested persons 5 VALID CONSIGNATION W/O PREVIOUS TENDER OF PAYMENT 1. Creditor is absent/unknown, '2. Creditor is incapacitate to receive at time itis due. 3. Creditor refused give a receipt, w/o just cause. '4. 2 oF mare persons claim the right to collect. 5. Title of obligation lost. 2. LOSS OF THING DUE perishes, disappears, or goes out of commerce: existence is unknown; cannot be recovered 3 REQUISITES TO EXTINGUISH OBLIGATION DUE TO LOSS 1. Determinate thing 2. Wio debtor's fault 3. No delay. 3. CONDONATION/REMISSION + gratuitous abandonment of right by the creditor 3 REQUISITES OF A VALID CONDONATION/REMISSION 41. lt must be gratuitous, 2. Accepted by obligor. 3. Obligation is demandable. 4, CONFUSION/MERGER meeting in 1 person of qualities of debtor & creditor w/ same obligation. 3 REQUISITES OF VALID CONFUSION/MERGER 1. The merger of characters of debtor & creditor must be in same person, 2. Take place between principal debtor & creditor. 3. Clear & definite. 5. COMPENSATION = 2 persons are debtors & creditors of each other 6 ESSENTIAL REQUISITES OF COMPENSATION 1. Parties both principal debtors & creditors of each other. 2. Compensation is not prohibited by law. 13. No retention/controversy by 3* person. 14. 2 debts are due & demandable. 5. 2 debts are liquidated 6. 2 debts both in money/consumable things.(2) CLASSES OF COMPENSATION 1.As to offect ‘a. TOTAL ~ obligations completely extinguished. ‘>. PARTIAL ~a balance remains. |2. As to origin or cause a. LEGAL by law b. VOLUNTARY/CONVENTIONAL ~ agreement of parties ic. JUDICIAL - order from the court d. FACULTATIVE 1 of parties can choose/oppose claiming compensation 8. NOVATION - substitution/change of obligation = substitution of debtor = subrogation of creditor (3) OBLIGATIONS MAY BE MODIFIED BY: 1. Changing abject/principal conditions. (REAL NOVATION) 2. Changing the person of debtor/creditor. (PERSONAL NOVATION) ‘a. Substitution ~ change of debtor . Subrogation — change of creditor '3. Changing person of the parties & the abjects of principal condition. (MIXED NOVATIGN) ‘4 REQUISITES OF NOVATION 1. Old valid obligation. 12. Agreement of parties to new obligation. 3. Extinguishment of old obligation. ‘4. Validity of new obligation. 2 FORMS OF NOVATION BY SUBSTITUTION OF DEBTOR 1. EXPROMISION — w! consent of creditor, NO consent of old debtor 2REQUISITES a. Initiative of 3° person, bb. Consent of creditor. 12. DELEGACION — all must agree (crecitor, old debtor, new debtor) SREQUISITES a. Initiative from old debtor. b. Consent of debtor. . Acceptance by creditor. ‘7. SUBROGATION + change of creditor |2 KINDS OF SUBROGATION 1. CONVENTIONAL — consent of original parties & 3% person 2. LEGAL — by law 2, creditor pays another preferred creditor even wio debtor's knowledge 3 person pays the express approval of debtor ¢. 3" person pays even wio knowledge of debtor Credits: introvertandsmart.blogspot.com