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OBLIGATION SORIANO MADE QUICKER.

Use at your own risk.

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ART. 1156-1162

Obligation - a juridical necessity to give to do or not to do.

Requisites

Active subject- (obligee) entitled to demand

Passive subject- (obligor) has a duty

Prestation/Object- subject matter

Juridical/Legal tie- efficient cause; binds or connect the parties.

Civil obligation is positive law so enforceable by court

Natural obligation is based on natural law so not enforcable by court action.

KINDS OF OBLIGATION; SUBJECT MATTER

Real obligation- to give

Personal obligation- to do; not to do.

Sources of obligation

Law - imposed by law itself

Special laws - laws that's not contained in the Civil code

Contract - arise from stipulation of the parties; meeting of minds between 2 person

Breach of Contract - failure to comply obligation w/o legal reason


Compliance in good faith - sincerity and honesty must observed

Quasi contract - lawful, voluntary or unilateral act; no one shall be unjustly enriched at the expense of
other

Negotiorium gestio - voluntary management; without consent of latter.

Solutio indebiti - no rights to demand; unduly delivered thru mistake.

Crime - civil liability; consequence of criminal offense

Quasi delicts - damage caused thru act or omission

Civil liability (Delicts)

SCOPE

Restitution - returning losts things

Reparation- claiming the obligation for the family of victim

Indemnification - damages

ART. 1163-1178

NATURE AND EFFECT OF OBLIGATION

Determinate if specific or particually designated; debtor cannot substitute

Generic if not determinate; cannot be pointed out; debtor can give anything

Why to know?

Loss of determinate thing through fortitous event exthinguishes obligation.

Obligation of one Obliged to give a determinate thing

1. To take care of thing with the diligence of a good father of family unless agreement or law requires
another standard of care
2. To deliver the accessions and accessories

Accessions - addition or improvements upon a thing (principal)

Accessories - joined to or included with a thing; completion.

3. To deliver the fruits of the thing

KINDS OF FRUITS

Natural fruits - products of the soil

Industrial fruits - produced by lands thru labor

Civil fruits - virtue of a juridical relation

The creditor has personal right to the fruit from the obligation to deliver arises but no real right to it.

Personal right - right to demand; can enforced by 1 person to another

Real right - right or interest over specific thing; enforceable against the world

REMEDIES OF CREDITOR

If the debtor fails to*

*deliver determinate thing

- compel to make delivery

-demand damages

*deliver generic thing

-ask debtor to comply at debtor expense

-demand damages to debtor


Grounds for liability to pay damages

1.fraud - (deceit or dolo) intentional dishonesty

DOLO INCIDENTE - committed in the performance

DOLO CAUSANTE - execution of contracts

2. Negligence - (fault or culpa) voluntary act or omission; no bad faith

CULPA CONTRACTUAL - negligence in contracts; breach

CULPA AQUILIANA - (civil) not supported preexisting contract; tort or quasi-delict

CULPA CRIMINAL - commission of a crime

3. Delay

Ordinary - merely failure to perform obligation on time

Legal - failure to perform on time which constitue breach of obligation

MORA SOLVENDI - debtor's delay; to give or to do

MORA ACIPIENDI - creditor's delay; to accept performance

COMPENSATIO MORAE - delay of obligors in reciprocal obligation

4. Contravention of the tenor of the obligation - violations of the terms and conditions in obligation

Damages

1.Damages

-harm done

-some of money that may be recovered in reperation for the harm done.

Injury

-wrongful unlawful tortious act that causes harm to others.


2. Kinds of damages

A. Actual or compensatory

B. Moral

C. Nominal

D. Temperate or moderate

E. Liquidated damages

F. Exemplary or corrective damages

3. Proof of precutionary loss

A. Actual - proof is required

B. Other damages- proof is nit required.

Fortuitous events are those events that cannot be foreseen or if can be forseen is inevitiable.

ACTS OF MAN - intentional acts of man

ACTS OF GOD (force majeure) independent will of human; flood, earthquake etc.

MUTUUM (Simple loan) - same amount of the same kind and quality shall be paid; gratuitous.

USURY - receiving imterests in excess of the loan

Presumption - inference of fact; arises from usual connection

• Conclusive- cannot be contradicted

• Disputable- rebuttable

Commodatum- essentially gratuitous


ART. 1179-1192 (SEC 1)

Different kinds of obligation.

1.Pure obligation - not subject to any condition

2. Conditional obligation - consequences are subject in one way to fulfill

CONDITION - effectivity or extinguishment of an obligation

• Future and uncertain

• Past but unknown

[[ effect ]]

Suspensive - will give rise to an obligation

Resolutory - will extinguish an obligation

[[ form ]]

Express - clearly stated

Implied - merely inferred

[[ possibility ]]

Possible - capable of fulfillment

Impossible - not capable

[[ cause or origin ]]

Potestative - depends upon the will; contracting parties

Casual - depends upon chance; third person

Mixed - depends partly upon chace and will

[[ mode ]]

Positive - performance of an act

Negative - omission of an act


[[ numbers ]]

Conjunctive - all must fulfilled

Disjunctive - only one or some

[[ divisibility ]]

Divisible - susceptible

Indivisible - not susceptible

USUFRUCT - enjoy the uss and fruits of a thing belongs to other.

ART. 1193-1998 (SEC 2)

3. Obligation with a period - consequences are subjected to expiration of said period.

Period - future and certain event upon arrival; day certain to come

[[ effect ]]

Suspensive - begins from a day certain of arrival

Resolutory - valid up to a day certain; terminated upon arrival

[[ source ]]

Legal - law

Conventional/Voluntary - agreed by the parties

Judicial - fixed by the court

[[ definiteness ]]

Definite - known when it will come

Indefinite - not fixed whn to come

GENERAL RULE: obligation is not demanable before the lapse of the period

ART. 1199-1206 (SEC 3)


4. Alternative obligation - several prestation are due but performsnce is sufficient

5. Facultative obligation - only one prestation are due but debtor may substitute another

ART 1207-1222 (SEC 4)

6. Joint obligation- ( mancomunada) to be paid proportionately by different debtors; demanded by


creditors; WE PROMISE TO PAY

Debtor- each debtor is liable only in proportionate share of the liab.

Creditor- each creditor is entitled only in proportionate amount.

7. Solidary obligation- (separadamente) each one of the debtors is bound to render; creditors to
demand; I PROMISE TO PAY

Passive - debtor; anyone can be liable of fulfillment

Active - creditor; anyone can demand fulfillment

ART.1223-1225 (SEC 5)

Divisible obligation - one is capable of partial performance.

Indivisible obligation - not capable of partial performance

ART. 1226-1230 (SEC 6)

Obligation with penal clause- imposes a greater liability to debtor in case of non compliance.

Penal clause - is accessory undertaking.

FUNCTION

A penal clause is attached to an obligation in order to insure performance amd has double function.

1.To provide for liquidated damages.

2. To streghthen the coercive force of obligation.


Kinds of penal clause.

[[ origin ]]

Legal- Imposed by law

Conventional - by agreement of parties.

[[ purpose ]]

Compensatory - penalty takes place of damages

Punitive - imposed merely for breach

[[ effect ]]

Subsidiary- when only penalty can be imposed

Joint- when both obligation and penalty may be imposed.

General rule: The penalty takes place of the damages and interest of non compliance.

ART. 1231-1261 (SEC 1)

Extinguishment of obligations

Causes of extinguishment of obligation

1.Payment or performance -not only in money but also in performance or in any mannner of an
obligation

Special forms of payment

Dacion en pago (dation in payment) conveyance of ownership of a thing as an accepted equivalent of


performance

Judicial cost - statutory amounts alloweds to an action for his expenses incurred in the action
Legal tender - currency which debtor can legally compel a creditor to accept in payment

Inflation- sharp sudden increase of money

Deflation- reduction in volume and circulation of money

2. Application of payment - designation of the debt

3. Payment by cession - assignment or abandonment of all properties of debtor

4. Tender payment- debtor; offering to a creditor the thing or amount due

Consignation- depositing the thing with the proper of court

ART. 1262-1269 (SEC 2)

2. Loss of the thing due - thing is los if it perishes or goes out of commerce or disapprears in such way
that its existense is unknown or cannot be recovered. Includes physical or legal imposibility.

Loss effect on obligation

1. Loss of determinate thing

Gen rule: will extinguished the obligation except

When the loss due to fault of debtor

When debtor incures delay

When law so provides

When stipulayed of parties

When nature ob obligation includea assumption of risk.

When debts proceeds from criminal offenses.

2. Loss of a generic thing.

- will not extinguish obligation exept on delimited generic.

3. Loss in personal obligation(obligation to do)

-When the prestation became legally or physically impossible with out fault of debtor the obligation is
extinguished.
- when the service has become so dificult as to tbe manifestly beyond the contemplation of parties, the
onligor will be released wholely or partly in the ibligation.

ART. 1270-1274 (SEC 3)

3. Condonation or remission - gratuitous abandonment by creditor

REQUISITES:

• gratuitous

• accepted by obligor

• have the capacity

• not be inofficious

• made expressly; comply with the forms of donation

[[ extent ]]

Comple - covers entire obligation

Partial - not cover entire

[[ form ]]

Express - made verbally or writing

Implied - inferred from conduct

[[ date of effectivity ]]

Inter vivos - take effect during lifetime of donor

Mortis causa - upon death of donor; will of testament

ART.1275-1277 (SEC 4)

4. Confusion or merger - meeting in one person the quality of creditor/debtor with respect to same
obligation

ART. 1278-1290

5. Compensation- when 2 persons become creditors and debtor of each other.

[[ extent ]]

Total - both are same amount; entirely extinguished


Partial - two are different amount; balance remains

[[ origins ]]

Legal - take place the operation of law; without knowledge

Voluntary - take place agreement of parties

Judicial - take place by order form a court in a litigation

Facultative - can be set up only by 1 of the parties

6. Novation - total or partial extinction thru creation of new one; substition

[[ origin ]]

Legal - operation of law

Conventional - agreement of parties

[[ constituted ]]

Express - unequivocal terms

Implied - old and new are essentially incompatible

[[ effect ]]

Extinctive - old; extinguished

Modificatory - old; modified

[[ subject ]]

Real - objective; change

Personal - subjective; debtor substituted

Mixed - both are changed

KINDS: Personal Novation

Substitution - person of debtor substituted

Subrogation - third person is subrogated in the rights of creditor

KINDS: Substitution
Expromision - take place with his own initiative

Delegacion - take place when creditor accepted the third person

7. Abutment

8. Rescission

9 fullfillment of resolutory condition

10 prescription

11 others

Partial or modificatory.OBLIGATION SORIANO MADE QUICKER.

Use at your own risk.

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