On obligations

ART. 1157 Sources of obligation:

1. Law
2. Contracts
3. Quasi-delict
4. Delict
5. Quasi-contracts
Kinds of Quasi-contracts:
1. Negotiorum gestio- X baby sitted Ys house when Y went to USA without
Ys knowledge. Y must pay X the expenses.
2. Solutio indebiti- You gave me P20 change but dapat P10 lang. I have the
obligation to give P10 back.

ART. 1163 Standard of care p. 35

1. Preserve the thing
a. Diligence of a good father of a family = ordinary care
b. Another standard of care
- When it is stipulated extraordinary diligence
- Common carriers e.g. busses & taxis must exhibit extraordinary diligence, not good
father.
c. If horse dies in less of ordinary care, debtor is liable.

ART. 1164 Fruits of the thing (what are, who are entitled to) p.37-38
2. Deliver the fruits
- The right of the fruits come when obligation to deliver a thing arises / deliverable.
Kinds of fruits:
1. Natural fruits (animals)
2. Industrial fruits (by lands / cultivation of labor)
3. Civil fruits (rents)

Obligation to deliver fruits arises p. 38-39

1. If suspensive condition, it arises upon the fulfillment of the condition or the arrival of the
term. But you can make stipulation.
2. If contract of sale, it arises when the contract is perfected. Even though it isnt suspensive.
3. Generally, the obligation to deliver the thing due and its fruits arises from the time of the
perfection (birth / meeting of the minds between parties) of the contract.
Ownership acquired by delivery p. 40
Horse and real right is creditors on the date of the deadline. Creditor has a personal right
against S to fulfill the obligation.

ART. 1169 When delay happens (including when demand is needed; form of delay) p. 48
Kinds of delays
1. Mora solvendi delay of debtor to fulfill
2. Mora accipiendi delay of creditor to accept
3. Compensatio morae delay of both creditor and debtor in reciprocal
Requisites for delay Mora solvendi
1. Failure of debtor to perform
2. Demand was made by creditor (writing/oral/non-judicial/judicial)
3. Failure of debtor to comply with the demand
Ex. X fails to pay Y car on Dec. 10. X has ordinary delay. Court assumes Y is giving
allowance lang. But if Y demanded on Dec. 15 that X pay Y na, and X didnt pa, he has legal
delay. So S considered default from Dec.15

When demand isnt necessary to put debtor in delay

1.
2.
3.
4.
5.

When stipulated (without the need of any demand)

When the law provides (taxes, etc.)
When time is of the essence (wedding cake on the day)
When demand will be useless (specific horse died)
When there is performance by a party in reciprocal obligations (if no date specified. S
already sent you the TV then you havent given the dog yet, delay na agad)

Negligence and fraud (what is, can it be waived) p.54

FRAUD
Deliberate intention
Waiver of liability for future fraud is void
Must be clearly proved
Liability cannot be reduced by court

NEGLIGENCE
No intention
Allowed
Presumed
Can be reduced

ART. 1171

Waiver for FUTURE FRAUD is VOID

Waiver for PAST FRAUD is VALID

Waiver for FUTURE NEGLIGENCE is VOID if you are a common carrier, but if not it is VALID

Fortuitous event p.65

Requisites of a fortuitous event:
1.
2.
3.
4.

Event must be independent of the debtors will

Could not be foreseen
Impossible to render obligation
Debtor is not negligent

Exemptions:
1. In provision of law
2. Both parties stipulated
3. If there is assumption of risk
ART. 1173
Negligence

Failure to observe for the protection/interest of another person that degree of care, precaution
and vigilance, which the circumstance justly demands, whereby such person suffers injury.
Factors for negligence:
1.
2.
3.
4.

Nature of obligation
Circumstances of the person
Circumstances of the time
Circumstances of the place

ART. 1179 Pure obligation vs. conditional obligations (including suspensive and resolutory

conditions) p. 79
Pure Obligation
-

No period & conditions

Can demand agad (also if resolutory period and condition)
So when pure, fruits can be immediately demandable

Conditional Obligation
1. Suspensive condition- When you graduate you get 5K (obli arises)
2. Resolutory condition- I will give you 3K till you graduate (obli extinguishes)
3. Postative condition- I will pay if I want condition VOID because it
depends solely on one of the contracting parties, obli demandable?
(ART. 1182)

When an obligation is subject to a period and its fruits are produced before the delivery, the
creditor will have the right over the puppies.

ART. 1182 Fulfillment of condition (plus implications when condition dependent on will of
debtor, of creditor, of third party) p.86
Suspensive condition depending on:
1. Debtor I will pay if I want conditional obligation VOID
2. Creditor I will pay upon your demand VALID (also if resolutory)
3. Third person + chance = mixed condition VALID
Third person / chance = causal condition VALID
o X promises to repair Ys condo if there was earthquake
o S binds himself to sell land to B if he wins lotto
ART. 1189
Loss
Perishes, or goes out of commerce, or disappears in such a way that its existence
unknown or cannot be recovered.

When car value increases na but promised to sell it for 10K to Y, Y gets the benefit same when

it degrades
When X makes cover leather, improvement. So X gets unsufructuary. He may remove it also

Extinguishment of obligation
Impossible conditions
1. Obligation and condition is extinguished
Ex. You kill Z then I will give you 30K
Ex. I will give you 2K if pigs fly
2. Conditional obligation is valid
Ex. I will sell you card if you do not fly
Condition is negative (not to do) an impossible, so obligation is valid
3. Only the affected obligation is void
Ex. I will give you 5K if you graduate, & 6K if you kill X VOID
4. Only the condition void
If there is a pre-existing obligation that does not depend on the fulfillment
of the condition.
Ex. X owes Y 5K, if Y agrees to kill A before X pays him, the condition to
KILL is VOID but not the pre-existing obligation of X to pay Y

ART. 1191 Kinds of obligation accdg to the person obliged

1. Unilateral Person obliged to someone (donation, loan)
2. Bilateral Both parties are mutually bound to each other
a. Reciprocal Seller buyer (same transaction)
b. Non-reciprocal X borrowed 5K from Y, Yborrowed Xs car (not the same transaction)

Remedies of parties (when obligations not performed; in reciprocal obligations)

1. Choice of remedies when one obligor does not comply
a. fulfillment of performance w/ damages
b. recission w/ damages

ART. 1193 Period in an obligation p.115

If no fixed period, but they wanted a date talaga, the court can fix it for them
o The court cant fix for them if wala talaga

Debtor presumed aware of the period

A future but certain event
A day certain

Kinds of obligation accdg to object

1. Simple obligation 1 prestation
2. Compound obligation 2 or more prestations
a. Conjunctive obligation several prestations that ALL of them are due
b. Distributive obligation - 1, 2, or more prestations is due
i.

Alternative obligation several prestations due but u can choose 1

Right of choice is debtors
Right of choice can be creditors if debtor says p.137
o

When an alternative is lost through the debtors fault, creditor

may claim damages + the thing. He can also claim the $ of the

ii.

o
o

item that w as lost + damages.

If fortuitous, creditor can choose sa tira
If all are gone through debtors fault, payment of the one item +

damages
When all things lost through fortuitous, EXTINGUISHED

Facultative obligation one prestation is due but can substitute

ART 1207, 1208 Joint and Solidary

Joint
o Debts are distinct from each other.
Solidary
o One person for all or unequal

ART. 1251 Place where obligation shall be paid

1. If specific thing, it is where it is. If in transit, house of debtor
2. No stipulation, generic = domicile of debtor

ART. 1291 Novation

Extinguishes an obligation and gives birth to a new one

Never presumed
If the old obligation is suspensive/resolutory, it will be the same for the new one
If obligation is void, novation too
Dapat INCOMPATIBLE
o Ex: 1st obligation X build house on land,2nd is X build condo on land
INCOMPATIBLE
o Not Ex: S agreed to deliver car to b, on the same day truck to B XX

Requisites of novation
1. Theres a previous valid obligation
2. Capacity & intention of parties to modify
3. Modification or extinguishment of the obligation
4. Creation of new valid obligation
Kinds of personal novation
1. Substitution
a. Expromision W/out debtors consent of the 3rd part assuming his place, but needs the
consent of the creditor and 3rd. AND debtor must be released
* If the new debtor cant pay, cannot go against old debtor
b. Delegacion - W/ creditors knowledge. C, D, 3rd must agree.
* same with EXP, but if before existing na and debtor and public knew wala na
2. Subrogation

On contracts

What is a contract?
Meeting of the minds between two contracting parties

Elements of contract
1. Consent of the contracting parties
2. Object certain
3. Cause of the obligation established

ART. 1330 On consent (including knowing who has no capacity to give and what are the vices
to consent)
Characteristics of consent
1. Intelligent
2. Free and voluntary
3. Conscious and spontaneous
Vices of consent
1. Error or mistake
2. Violence or force
3. Intimidation or threat
4. Undue influence
5. Fraud or deceit
Persons who cannot give consent
1. Unemancipated minors
2. Insane or demented
3. Deaf-mutes
4. Hospitalized lepers
5. Prodigals
Voidable
1. Drunk
2. Hypnotic spell
ART.1338 Fraud
Causal fraud
o Fraud to induce one to the contract
o Insidious
o Grounds for annulment and damages

Incidental fraud
o Not the principal inducement
Requisites of a causal fraud
1. There must be misinterpretation & concealment
2. Serious
3. Must be done by only ONE of the contracting parties
Fraud by a 3rd person doesnt vitiate consent unless kasabwat
4. Bad faith & with intent
5. Must be proved with evidence

Simulated contract, onerous contract (just a basic idea of what are)

ART. 1390 What makes a contract voidable / annullable?

1. Incapable of giving consent
2. Mistsakae, intimidation, undue influence, fraud

Annulment period = 4 years from the time violence ceases

Incase of fraud, from the time discovered

What makes a contract void?

* Cannot be ratified
1.
2.
3.
4.
5.
6.
7.

Contrary to law
Fictitious
Cause or object non-existent at time of transaction
Object outside commerce of men
Impossible service
Intention not certain
Void by law

When is there delivery in a contract?

Unenforceable contracts
Statute of frauds

1. History
2. Purpose
3. Application

On sales contracts
ART. 1448
Equivalence
Commercial documents (checks and promissory notes)
Nature, elements of contract of sale
Characteristics:
1. Consensual
2. Bilateral
3. Onerous

4. Commutative
5. Nominate
6. Principal
Requisites:
1. Consent / meeting of the minds
2. Object
3. Cause

Contract of sale vs. contract price

Different modes of delivery

Execution of public

Double or triple sales

o Depends who
1. Registers first REGISTRATION
2. First one in possession POSESSION
3. Older title between or among the 2 or more TITLE

-Payment / performance in contract of sale

-What can be the proper subject of a contract of sale
-Gross inadequacy of price (implications)
-Option money, earnest money
-Disqualification to enter into contract of sale (e.g., spouses)
-When is there delivery in a contract of sale (knowing the rule when there is delivery;
understanding the basic idea of other modes of delivery, i.e., traditio brevi manu etc)
-Double sale (implication, e.g., who has the better right under what scenario)
-Warranty vs. hidden defect
-Warranty vs. eviction