New Era University

College of Law
New Era, Quezon City

CIVIL LAW REVIEW 2

(Obligations, Sales & Credit Transactions) Atty. Danny F. Villanueva Saturdays 7 !! A" # 7 !! $" ANSWERS BY: Bridget Agbada

1.

The civil code provides that an obligation is a juridical necessity to give to do or not to do. In every form of obligation, a creditor has a set of right that he can avail of. When the obligation is to give, the following are the rights of the creditors as provided for by the civil code: a. If the obligation is to give a determinate object the creditor has a right to compel specific performance as provided under Art. 11 !, par. 1 of the #ivil #ode. The creditor also has a right to recover damages in case of of the obligation as given in Art. 11$% of the "ew #Ivil #ode. b. &n the otherhand, if the obligation to give is an indeterminate object, the creditor has the right to as' for performance of the obligation as stated in Art. 1() of the "ew #ivil #ode, as' that the obligation be complied with the e*pense of the debtor as provided by Art. 11 !, par ( of the "ew #Ivil #ode and he also has the right to recover damages in case of breach of the obligation at can be found under Art. 11$% of the "ew #ivil #ode. "o, the creditor will not be held liable for damages. Article 1( ( of the #ivil #ode provides that an obligation which consists in the delivery of a determinate thing shall be e*tinguished if it should be lost or destroyed without the fault of the debtor, and before he has incurred in delay.

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In the case at bar, the object that is the subject of the obligation is a determinate thing. It is a specific computer set and such computer set was destroyed by fire of accidental origin and it was before delay is incurred. Thus, Article 1( ( of the #ivil #ode applies. The creditor is not liable for damages in the given e*ample.

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According to Article 11 , of the "ew #ivil #ode those obliged to deliver or to do something incur in delay from the time the obligee judicially or e*trajudicially demands from them the fulfillment of their obligation. Thus, a debtor incurs delay from the time he is unable to fulfill his obligation despite the creditor-s demand of fulfillment either judicially or e*trajudicially.

). a. In an ordinary contract, the parties may be two or more persons of the same or different se*es. &n the other hand in a marriage contract, it is necessary that the parties must be one man or one woman. In an ordinary contract, the nature conse.uences and incidents are governed primarily by the agreement of the parties. &n the other hand in marriage the nature, conse.uences and incidents of an obligation are governed by law. In an ordinary contract, once the contract is e*ecuted, the result is a contract. While in marriage once marriage is celebrated the result is a status, A contract can be terminated or dissolved by mere agreement while marriage cannot be dissolved by mere agreement. In case of breach in a contract, the usual remedy is for the injured party to institute an action for damages. In case of breach in marriage, the usual remedy is for the injured party to institute a civil action for legal separation or a criminal case of adultery or concubinage. b. A contract is the cause while an obligation is the effect. Thus, there can be an obligation without a contract but there can never be a contract without resulting in an obligation. c. A contract involves an agreement or promise by both parties. &n the other hand, an imperfect promise is not a contract. It however represents the starting point for the formation of a contract. d. A contract consist of promises or stipulations which will govern the whole contract. Thus, a stipulation is an essential part of the contract which cannot be separated from the principal agreement. !. Article 1!( of the "ew #ivil #ode provides for the remedies that an unpaid seller could avail of. These are: a. lien on the goods or right to retain them for the price while he is in possession of them b. In case of the insolvency of the buyer, a right of stopping the goods in transitu after he has parted with the possession of them

c. right of resale d. right to rescind the sale . A contract of loan is a real contract.

The civil code provided a definition of a contract of loan under Art. 1,++. It states that a by a contract of loan, one of the parties delivers to another, either money or other consumable thing, upon the condition that the same amount of the same 'ind and .uality shall be paid. And under Article 1+1 that real contracts are not perfected until the delivery of the object of the obligation. Thus, since a contract of loan is perfected when one of the parties delivers to the other party money or other consumable things, it can be validly stated that a contract of loan is indeed a real contract. $. a. In /ease the object may be anything whether movable or immovable, fungible or non0fungible. While in 1utuum, the object is money or any consumable thing. In lease, the owner does not lose his right of ownership while in 1utuum the thing loaned becomes the property of the debtor. In /ease, the relationship created is that of a landlord and tenant or a lessor and lessee. &n the other hand, a 1utuum creats a creditor and debtor relationship. b. A lease is a consensual contract in contrast with commodatum which is a real contract. The object of a /ease can be wor' or service while in commodatum only non0 consummables could be its object. A lease is not a gratuitous contract. While a commodatum is essentially gratuitous. 2. 3es, Tim is liable for the loss of 4mman-s truc'. Article 1,)(, par. ! of the "ew #ivil #ode provides that the bailee is liable for the loss of the thing, even if it should be through a fortuitous event if being able to save either the thing borrowed or his own thing, he chose to save the latter. In the given e*ample, A fortuitous event of fire burned Tim-s garage along with a truc' he borrowed from 4mman. 5uring the fire Tim has the chance to save

either hir car or 4mman-s truc'. Tim thereafter saved his car instead of the truc' he borrowed from 4mman. Thus, eventhough the cause of loss of 4mman-s truc' is a fortuitous event, Tim is still liable since the condition under Article 1,)( par. ! of the "ew #ivil #ode was fulfilled. ,. The civil code provides under Article (11! that The sale of the thing pledged shall e*tinguish the principal obligation, whether or not the proceeds of the sale are e.ual to the amount of the principal obligation, interest and e*penses in a proper case. If the price of the sale is more than said amount, the debtor shall not be entitled to the e*cess, unless it is otherwise agreed. If the price of the sale is less, neither shall the creditor be entitled to recover the deficiency, notwithstanding any stipulation to the contrary. 1%. "o, registration in the 6egistry of 7roperty is not necessary for the validity of a contract of real estate mortgage.

A contract of pledge is a contract. Thus it is perfected with the consent of both parties. 1oreover, Article (%2! of the new civil code provides the essential re.uisites of a contract of mortgage. They are: 8a9 That they be constituted to secure the fulfillment of a principal obligation: 8b9 That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged: 8c9 That the persons constituting the pledge or mortgage have the free disposal of their property, and in the absence thereof, that they be legally authori;ed for the purpose. The civil code do not provide that registration of property is necessary for a contract of real estate mortgage to be valid between the contracting parties. 6egistration in the 6egistry of 7roperty is only necessary to bind third persons.