OBLICON (MIDTERMS) aware and acknowledge the risk of the

obligation, so he’s still liable for breach

ARTICLE 1174 – 1207 (EXPLANATIONS)
even in case of fortuitous events

ARTICLE 1174: ARTICLE 1175:

General rule: If the debtor is unable to • Usurious – means excessive

fulfill his obligations due to fortuitous events, - Interest being charge is
the obligations is extinguished, and more than that allowed by
cannot be held liable for damages. law

• This article defines fortuitous event • Usury Law (act no. 2655) –

as an event cannot be foreseen, or govern usurious transactions

which, though foreseen were inevitable • Maximum interest = 12% per

annum
Classification of fortuitous events:
• Hindi pwede maging excessive ang
1. Act of god – no human intervention
interest
or purely natural
ARTICLE 1176:
2. Force majeure or fuerza mayor –

acts of person other than the obligor • If the receipt from the creditor

(debtor) – with human intervention contains that the loan was paid, and

without reservation with respect to

Exemptions to General Rule: (means
interest, rise the presumptions that the
that even though, the unfulfilled obligations
said interest has been paid (same with
is due to fortuitous events, the debtor is still
the later installment of the debts)
liable for damages)
• Hindi dahil bayad na yung principal
1. If the law expressly so declare
value (full payment), ay bayad narin
2. If it is stated in the agreement
ang interest (interest is still not
3. If the debtor is aware that the nature
included sa principal value)
of obligation requires the
• Need evidence or date of payment
assumption of risk – debtor is
(receipt)
 • If ever na magbabayad ka ng full - Creditor acts in the name of

payment for your loan, make sure na the debtor

mayroong receipt and that receipt 3. Accion pauliana – rescind the

should contains proof na kasama na transactions to third party

yung interest sa binayaran mo - if the debtor try something

like sell his property nan aka

ARTICLE 1177:
collateral sa utang niya sa
If the debtor did not pay the creditor,
creditor, the creditor can
creditor has 3 remedies:
rescind or cancel the

1. Principal remedy of the creditor transaction para hindi

against the debtor – pursue the makaiwas si debtor

property of the debtor magbayad ng utang

- Hindi pwede kuhanin lahat - If the 3rd party knows that

ng property ni debtor, need the property he acquired

mo lang ibenta yung from the debtor is in the

property ni debtor and if collateral with the creditor,

there is an excess or labis na the 3rd person will also be

yung nakuha mong pera liable

mula sa property ni debtor

ARTICLE 1178:
na binenta mo, need ibalik
In virtue of obligation, we do have the right to
ni creditor kay debtor yung
transfer our rights, however, there are
sobra
exemptions: (limit right to transfer)
2. Accion subrogatoria – the right of

the debtor mapupunta sa creditor Rights not transmissible:

- Hindi lahat ng property ng

• Purely Personal right – only
debtor ay kukuhanin, kung
stipulated to you (inheritance ), bawal
magkano lang yung utang
i-transmit
ang dapat kunin
 - Ex. Jham is indebted to 2. Resolutory conditions

Reyes, jham cannot transmit (demandable at once) –

her inheritance to reyes, obligations is already existing,

because inheritance is for nandoon na agad yung obligation

you only - Nagagamit o nae-enjoy

- If yung pamana ay may na yung prestation ng

liability, bayaran muna yung obligation

liability and the excess lang - Ex. Addie(nasa Quezon) let

yung makukuha mo Juls(nasa dasma) used her

- Hindi pwede ipamana ang laptop until she return

utang - Habang hindi pa nabalik si

• As stipulated by the parties addie sa dasma, may

• By operation of Law Karapatan si JUls na mag

demand para magamit yung

SECTION 1
laptop (pwede siya mag
(Pure and Conditional Obligations)
demand kay addie na

ARTICLE 1179: sabihin kung nasaan yung

laptop)
Different kinds of obligations:
- The moment the nakabalik
1. Pure obligation – hindi subject to
na si addie, that’s the time
any condition, or any period (no
the obligation extinguished
condition or period)
3. Conditional obligation – one which
- Automatic, demandable at
is subject to condition
once
- This article – “future and
- Ex. Addie promise to give
uncertain events”
10k to Juls, at the time na
ARTICLE 1180:
nagsabi si addie,

demandable na agad yung • Obligations with the period

obligation
 • Ex. I promise to pay you 10k as soon na yung obligation na

as possible, or when the means permits pagamitin ka ng laptop

me to do so
ARTICLE 1182:
• However, obligations with the period is
• Potestative (called facultative
sometimes abused by the debtor, art.
condition) – under the debtors will
1197 (fixing a period), request
- Conditions set by the debtor,
fixing a period
and the one who will fulfill
ARTICLE 1181:
the condition is also the

• Suspensive condition – at the debtor

happening of the event, magkakaroon - Ex. I’ll give ypu 50k when I

ng obligation go to US

- Ex. I promise to give you - Debtor give the condition,

laptop when you passed the and also will perform the

CPA board exam condition

- Sa oras lang na pumasa ka sa - thus, the condition were

board exam, saka lang VOID

magkakaroon ng obligation - Kapag ang will ay nasa

to deliver the laptop debtor, void ang obligation

• Resolutory Condition – the • Obligation subject to a

happenings of the events or condition Resolutory Condition that is

will extinguish the obligation Potestative on the Part of the

- Ex. I’ll let you use this Debtor – valid ang condition and

laptop, until such time na obligation

pumasa ka sa board exam • Conditional Obligation that is

- At the moment na pumasa Potestative on the Part of the

ka sa board exam, extinguish Creditor – condition were set by the

debtor, however the fulfillment of that

condition was set to the creditor

 • Casual - depends upon chances or • If lumipas na yung date na binigay,

other factors extinguish na yung obligation kasi

• Mixed – upon the chance and upon nag lapse or expire na yung time

the will (of a 3rd person) • If the obligation has become

indubitable - if death is involved

ARTICLE 1183:
(the obligation is impossible to
• Constitute your “impossible
perform – extinguish na )
condition” – void condition and
ARTICLE 1185:
obligation

• Against policy, custom or law, void ang • Negative condition – not to do

obligation • Ex. If ana did not marry jack on or

• Void if the obligations or conditions before dec. 31

are impossible to do - If the time lapse na, and ana

did not marry jack, the

If the condition is ‘not to do’:
obligation arise
• Ex. I’ll give you 500k kapag hind imo
- Even, if there’s a
siya pinatay
circumstances where ana
- Therefore, since against law,
died, effective parin ang
as if, walang agreement, but
obligation
valid ang agreement
ARTICLE 1186: (di naturo ni sir to,
ARTICLE 1184:
nilaktawan )

• Positive conditions – there is a

• Condition is considered fulfilled if
factor, which is, the period
the debtor voluntarily prevents its
• Pertains to the period
fulfillment
• Ex. Kapag pinakasalan mo si a, on or
ARTICLE 1187:
before dec. 30, 2024, I’ll give you 50k
 • Conditional Obligation – kung • During pendency (hindi pa nag

ano ang agreement, babalik at a-rise yung obligation) naibigay

babalik tayo doon na kay ana yung 500k, therefore, since

- During pendency of of di pa naman nangyayari yung

the obligation – si debtor condition walang karapatan si ana na

parin ang may Karapatan sa i-keep yung pera, so pwede pa na mag

mga fruits, not unless may ask ng recovery of the money

pinag usapan
ARTICLE 1189

ARTICLE 1188:
Divided into 3:

1st paragraph:
1. Lost of the thing

• Just to protect our right, at 2. Improvement of the thing

happening in suspensive 3. Deterioration of the thing

condition:
6 Provisions:
• Ex. I’ll give ana this house and lot
1 and 2 provision – lost of the thing
when you passed the board exam
1. If the thing were lost on the pendency
• Ana will secure the house and lot,
of the obligation and the debtor is not
because the moment na pumasa
at fault, the obligation is extinguish
siya dapat ma-ideliver agad yung
2. thing were lost through the fault of the
house and lot
debtor – debtor is obliged to pay the
• Ang pwedeng gawin ni Ana ay i-
damages
preserve niya yung right niya,

which is pupunta sa registry of 3 and 4 provisions – deterioration

deeds and claim na hindi pwede (value is reduced or impaired – thing is hindi

ibenta yung house and lot pa nawawala, pwedeng nasira lang)

2nd paragraph: 3. thing deteriorates without the fault of

the debtor – hindi saluhin ng debtor

• Ex. I’ll give ana 500k when she passed

the board exam

 ang impairnment, si creditor ang ARTICLE 1190: (apply mo lang daw yung

sasalo sa impairment 1189 )

4. thing deteriorates through the fault of

• Resolutory condition :
the debtor, 2 possible actions:
- Ex. I’ll let you stay in my
- rescission and damages
house until you graduated
- fulfillment plus damages
college
(note: if there’s a fault, don’t forget to ask for
- After you graduate you shall
damages)
return the house,
5 and 6 Provisions – improvement
- any lost, deterioration or

5. if by nature, nagkaron ng improvement improvement is bound to the

– entitled si creditor sa lahat ng one who will return

nagging improvement something

6. if thing was improved by

ARTICLE 1191:
debtor’s expense :
Reciprocal obligation:
- ex. Debtor improved the

land, place fruit bearing tree, • Automatic, demandable ang

during the pendency of the obligation

obligation • at the moment na na-render na ni

- the moment the land were debtor ang kaniyang obligation, the

transfer to the creditor, creditor or the other party should

debtor cannot demand perform their obligation

creditor to pay the • however, the injured party may

improvement he made, choose:

but pwede kunin ni debtor - exact fulfillment of the

mismo yung puno obligation

(bubungkalin), pero dapat - if delay, despite many

walang masisira sa principal demands, seek rescission

thing (land) and demanding damages

ARTICLE 1192: ARTCICLE 1194:

• Infractor – means offender • Same lang sa article 1189

• If Both parties breach the

ARTICLE 1195:
contract
• When the debtor forgot the due date of
- Kung sino ang 1st offender
his debts and paid it before the said
shall be held liable
date, the debtor may still recover the
• If wala nagsasabi kung sino ang
payment including the fruits and
1st offender
interest, since the agreed period has
- Each shall bear his own
not comes yet
damages
• Since di pa due date, being unaware,
Section 2
pwede pa i-recover

(Obligations with a Period)

ARTICLE 1196:

Period – certain and refers to the future

• Period is designated, it gives benefit
ARTICLE 1193: for both debtor and creditor

• Pag dumating ang deadline saka lang • When period is designated the debtor

pwede mag demand will be aware when is the due date, and

• Once resolutory period takes place, creditor will know when to ask or

obligations is terminate demand for the payment

• If the uncertainty consists in whether • Unless in favor of one:

the day will come or not, obligation is - Will ay nasa debtor, (like no

conditional fixed period)

• Conventional – convenient with ARTICLE 1197:

both parties kaya may stipulation sila
• Walang pinag usapan (No fixed
• Definite – known before hand
period), or meron pinag usapan but
• Indefinite – although not known
nagc-cause ng conflict
before hand (death)
 • Once the period is fixed in the court, it - The moment na nagging

cannot be change insolvent, na-lost yung

benefit of the period

ARTICLE 1198:
- But the moment na na-
When the debtor lost the benefit of the
assure si creditor na
period
makakabayad si debtor,

5 Provisions (instances): babalik agad ang benefit of

1. Yung insolvency na tinutukoy ay not the period kay debtor (balik

permanent, occasional lang na sa original due date)

- Prior to the due date, 2. When he does not furnish to the

nagging insolvent si debtor creditor the guaranties or

- At the moment na nagging securities which he has

insolvent si debtor, prior to promised:

the payment, the debt is - Ex. Anna borrowed 500k to

automatically lena, due on dec. 30, 2024,

demandable unless but lena ask anna to give a

guaranty or security for the security, diamond ring of

debt is given anna as part of the security

- Ex. Ana ask Lena to lent her - Dec. 15, Nawala ni anna

50k, but need bayaran dec. yung diamond ring, so at the

30 2024 moment na Nawala yung

- Dec. 15 naging insolvent si ring, anna lost the benefit of

ana (occasional lang), at that the period

moment demandable na - The moment na Nawala

agad ang obligation even yung ring, which is part pf

though hindi pa due, kasi the security, why lena grant

matatakot si lena na baka di yung hiniram na pera ni

na magbayad si ana
 anna, demandable na agad debpt yung benefit of the

yung obligation period

3. Even though kasalanan niya or 4. When the debtor violates any

due to fortuitous events, condition agreed to the period

regardless - Ex. Anna borrowed 500k to

- Ex. Anna borrowed 500k to lena, due on dec. 30., but

Lena, lena agrred but she lena said a condition, not

ask anna na i-collateral yung allowing anna to go to any

bahay niya, due on nov. 30 casino before the due date

- Nov. 15, anna’s house was - Need follow ni anna yung

struck with typhoon, agreement

nagkaron ng fortuitous event - Dec. 15, nagpunta si anna sa

- At the moment na nasira casino, and lena saw her

yung bahay noong nov. 15, - At that moment, since anna

demandable na agad yung violated the contract,

obligation demandable na agad yung

- Regardless if it was due to obligation

fortuitous events, the - Hindi na pwede ma-restore

moment na nasira yung kay debtor yung benefit of

collateral mo which is the the period

reason kung bakit na-grant 5. Abscond – have intention to evade

yung pangungutang mo, the obligation

magiging demandable parin - Ex. Anna borrowed 50k to

agad yung 0bligation, the lena, due on dec, 30

debtor will still lost the - Dec. 15 nagsabi si anna na

benefit of the period mag babakasyon siya sa

- Unless may bago na Japan

collateral, babalik ulit sa

 - On dec. 15, the obligation of General rule: always kay debtor ang right of

anna is not demandable, choice

since vacation lang naman,

• Right of choice given to the debtor
walang balak na takas an
• Na-communicate na lahat ng
yung utang
prestations kaya may right na si debtor
- But if anna said on dec. 15,
kung ano ip-perform niya
that she will stay in Japan
ARTICLE 1201:
for good, at that moment,

demandable na yung • need parin communicate sa both

obligation, since anna is debtor and creditor, kahit na may right

leaving for good na, not only of choice si debtor

for vacation • Consentration – ito nalang ang

focus
SECTION 3
• As a debtor, the moment na na
(Alternative Obligations)
communicate ko na mismo yung yung
Alternative – maraming options, there are
mga prestations, doon nalang ako
several prestation, but the delivery of one is
magf-focus
enough to extinguish the obligation
- Ex. If debtor nasabi na kay
- Conjunction is “or” (one lang
creditor na yung rings,
ang need i-deliver)
bracelet or necklace lang
ARTICLE 1199:
yung mga prestation, ito

• 2nd paragraph - Conjunctive – nlang ang focus ni debtor, sa

conjuction the word “and” 3 prestations nalang siya

- Need i-deliver lahat ng mamimili

sinabing things, para ma-

ARTICLE 1202
extinguish yung obligation
• The debtor shall lose the right of
ARTICLE 1200:
choice when one nalang ang natitira,

wala na talaga choice

ARTICLE 1203: - Deliver what is remaining

• Some were lost, through the fault of

• Kasalanan ni creditor, kaya di na
creditor. What would be our action as
nakapag make a choice si debtor may
debtor?
ask to rescind the contract with
- Debtor may rescind the
damages
contract plus damages
ARTICLE 1204:
(rescission plus damages)

• Creditor shall have the right to - Deliver or perform plus

indemnity for damages when, through damages

fault of the debtor (wala na lahat ng

ARTICLE 1205:
alternative)
Right of choice expressly given to
Articles 1200-1204 (examples)
creditor

Right of choice given to the debtor:

• Responsibility of the debtor:

• All things were lost, through fortuitous 1. If one thing were lost through

events fortuitous events, deliver the

- Obligation is extinguish, no remaining things

fault, no liability - If all things lost through

• All things were lost, through the fault fortuitous events, obligation

of debtor, what are the actions of the is extinguish

creditor? 2. If one thing were lost through fault of

- Creditor can ask the debtor, creditor may ask:

payment of the last thing - Any of the remaining

lost plus demand for alternatives

damages - Price of the thing lost

• Some were lost, through fortuitous - With right to damages

event or fault of the debtor. What 3. All things were lost through the fault of

would be the effect to the obligation? the debtor

 - Creditor may choose one of - may principal thing and

the things value plus substitute

indemnity for damages • debtor ang may right of

substitute with proper

Examples:
communication:
Right of choice give to the creditor:
effect on fortuitous events:
• All things were lost through the fault of
• before substitution
the debtor. What is our ruling?
- if principal thing were lost
- Creditor may choose one of
through fortuitous events,
the things value plus
extinguish obligation
indemnity for damages
- if through debtors fault,
• Some were lost through fortuitous
liable for damages
events.
- if the substitute thing were
- Accept or choose to the
lost with or without debtors
remaining things and
fault, said loss will not affect
demand delivery of the
the principal obligation
thing, hindi pwede mag
- obligation of the debtor to
demand ng damages
deliver the principal thing
- Damages – if may fault lang
subsists
• Some things were lost through the
• after substitution
fault of the debtor. What is our ruling?
- if the principal thing were
- Demand what is remaining
lost at any cause, debtor is
plus damages
no longer liable for the said
- Price of the thing lost plus
loss dahil yung substitute
damages
naman na yung need i-
ARTICLE 1206:
deliver (obligation does not

• Facultative obligation – only one extinguish)

prestation but may substitution

 - if substitute were lost (P100.000) is divided by 2 (joint

through fortuitous events, debtors.)

extinguish obligation - Individual utang lang ang

- if through debtors fault, pwede singilin

liable for damages - Pro-rated = divide mo kung

ilan naghahati
SECTION 4

Case 2: Joint Debtors (2), Joint

(Joint and Solidary Obligation)
Creditors (4)
(note: pag walang sinabi sa problem whether if joint

or solidary : A and B are joint debtors of C. D, E and F.

General rule: automatic joint obligation)

joint creditors, to the amount of P100.000.

ARTICLE 1207: • C can demand from A P12.500 only,

and from 8 P12,500 only The

Joint – wala kang pakialam sa iba (utang o
obligation of 100.000 is divided by 2
pautang mo lang) – individual
(joint debtors): quotient (P50.000) is
Solidary – synonyms ‘severaly’
divided by 4 (joint creditors.)

- babayran ang buong utang, - Hindi pwede maningil ang

may pakialam ka na mga creditor ng 25 000 kay

- as a whole A man o kay B, dahil joint

- if naningil si creditor, buong nga, 12 500 lang ang utang

babayaran ni debtor mg debtor at pinautang ng

creditor
ILLUSTRATION:

Case 3: Solidary Debtors (2), Creditor

Case 1: joint debtors (2), creditor (1)
(1)
A and B are joint debtors of C to the amount
A and B are solidary debtors of C to the
of P100.000.
amount of P100.000
• C can demand from A P50.000 only,

and from B P50.000 only The debt

 • C can demand the whole P100.000 from to the amount of 50.000. B's

from A, the obligation being soory on share of the obligation & on the other

the part of the debtors. A after paving hand, should give 25.000 each to D. E

C. can ask reimbursement from to the and F

amount of P50.000
Case 5: Solidary Debtors (2), Joint
- Maniningil si c either kay a
Creditors (3)
or b ng 100 000,
A and B are solidary debtors of D. E and F.
- For example, si a ang
joint creditor, to the amount of 90.000
nagbayad ng 100 000 kay C,

A will ask B to reimburse the • D can collect from A P30.000 only.

50 000, since A’s debts is Even if A is a solidary debtor. ha

only 50 000, obligation to Dis only P30.000 because

- binayaran lang niya muna Da only a joint creditor. The credit

yung kay B, but that doesn’t (P90,000) is divided by 3 (joint

mean na di na need creditor)

magbayad ni B, ang need Case 6: Joint Debtors (2). Solidary

bayaran ni B after mag Creditors (3)
bayad ni A ng utang kay C ay
A and are joint debtors of D. E and F, solidary
si A
creditors so the amount of P90,000
Case 4: Solidary Debtors (2). Solidary
• D can collect from A 45.000 only.
Creditors (4)
Although D is a solidary creditor, he
A and are solidary debtors of C. D. E and F. can only collect P45,000 from A
solidary creditors to The amount of P100,000 because As only a joint debtor. The

• C (or any creditor) can demand from A debt (P90.000) is divided by 2 (joint

for the whole 100.000 because the debtors.

obligation is solidary on both sides A PAG WALA NAKALAGAY SA PROBLEM

after paving C. con ask reimbursement WHETHER JOINT OR SOLIDARY, MEANS

JOINT NA AGAD YUN