LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)

PRINCIPLE OF UNJUST ENRICHMENT (Solutio Indebiti) if you cannot

remember the specific law or provision, use this principle whenever
applicable
Negotiorum Gestio management of anothers property without the
owners consent; for example, As house is on fire. B saved it. B must be
compensated by A.

QUESTION:CAN YOU STILL INSTITUTE AN INDEPENDENT CIVIL ACTION
WITHOUT MAKING A RESERVATION?
ANSWER: You qualify. If the obligation arises from delict, in accordance
with Section 1, Rule 111 of the Rules of Court together Article 100 of
the RPC---I have to make a reservation before I can institute an
independent civil action. If the obligation arises from LAW, CONTRACT,
QUASI-CONTRACT, QUASI-DELICT, then YES. I can file an independent
civil action without reservation
*Always go back to the sources of obligation: law, contract, quasi-
contract, delict, quasi-delict*
ART. 100 OF RPC & RULE 111, SECTION 1 OF RULES OF COURT
Articles 29, 30, 31, 35, of the Civil Code: must be connected with
Article 100 of the RPC and Section 1, Rule 111 of the Rules of Court
Articles 32, 33, 34, 21, 77 : Obligations arising from law, contract, quasi
contract, quasi delict (in these cases, YES. YOU MAY FILE INDEPENDENT
CIVIL ACTION WITHOUT RESERVATION)
Civil Code obligations arising from a delict. Article 100 of the RPC
confirms that. A person who is criminally liable is civilly liable. Ex:
When FG filed a libel case, he was asking for damages in millions. One
single act which is defined as a crime will also give rise to damages (civil
obligation).
This is why S1 R111, if you file a criminal case, the civil case is DEEMED
INSTITUTED. This is the general rule. Exceptions:
1) if the Civil action was filed ahead
2) if there is a waiver
3) if there is A RESERVATION IN FILING AN INDEPENDENT CIVIL ACTION

WHEN MAY A RESERVATION BE MADE IN CASE OF A CIVIL LIABILITY
ARISING FROM A DELICT? Before the prosecution presents evidence in
a criminal case.
WILL THE DEATH OF THE ACCUSED EXTINGUISH THE CIVIL LIABILITY
ARISING FROM THE DELICT? The Court said that the death of the
accused shall extinguish the civil liability arising from the delict. But the
victim or the heirs of the victim can still pursue the civil liability
provided that it will now be based on the other sources of the
obligation.
For example: Reckless imprudence resulting to homicide or serious
physical injury; the civil liability from this delict is extinguished but the
victim or his relatives may still file a civil action for damages treating
the act not as a delict but as a quasi-delict. The respondent will now be
the estate of the accused who died.
If negligence is involved, you can treat it as a quasi-delict or a delict
you have no right to file TWO CASES for civil damages. Because that will
be tantamount to unjust enrichment. If there is a civil action already
instituted with the criminal action, the accused did not die, then thats
it. You cannot anymore file for another civil action based on quasi delict
because that would be double recovery.

VICES OF CONSENT
- Circumstances that affect ADVERSELY the decision of a party
in entering into a contract
***Consent is not freely given because of these VICES of consent.***
1. Vices Affecting Cognition (affects our intellect)
2. Vices Affecting Volition (affects our free will)
What are the vices that will affect intellect?
1) Incapacity in relation to Article 38
2) Error
3) Fraud
What will affect Volition?
1) Violence
2) Intimidation
3) Undue Influence
ERROR/MISTAKE: Mistake of FACT not Mistake of Law
GOOD FAITH refers to mistake of fact
- If the parties BELIEVE IN GOOD FAITH solemnizing the marriage really
has the authority but they are mistaken, marriage will still be valid
*Good faith of the contracting parties will save the validity of the
marriage.
*BUT IF THE ONE WHO SOLEMNIZED IS REALLY NOT AUTHORIZED,
GOOD FAITH WILL NOT SAVE THE MARRIAGE--- because this is a
mistake of LAW
Example: Former Justice Raul Gonzales (he has the title of a
Justice) celebrated your marriage. Accdg to the FC, members of the
judiciary can celebrate marriage---you thought that anyone who has a
title of Justice is member of judiciary. Gonzales then celebrated your
marriage. You believed in good faith that he has the authority. Will your
marriage be valid? NO. Because Gonzales truly has no authority. This is
a case of mistake of LAW.

***Court Administrator (Midas Marquez) has no authority
to solemnize marriage.

WHEN WILL IT BE MISTAKE OF FACT?
An EX-Seminarian, expelled from the seminary, decided to continue as
a sacristan. One day, while the parish priest was incapacitated to
celebrate the marriage, he misrepresented himself to be the priest,
celebrated the marriage. The parties believed in good faith that he
really was the priest. Is the marriage valid? YES. Parties believed in good
faith that he was the PRIEST (and the priest is vested with authority to
celebrate marriage). Good faith saved the validity of the marriage.
CIVIL CODE: If the error/mistake will affect the consent of the
contracting party, then it will be considered as VICE and will be a
ground for the annulment of the contract.
LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)



The consent is there BUT If you are AWARE of the error, you would not
have given your consent. That is why the contract is considered
VOIDABLE.

FRAUD
- Fraud in celebration of contract (dolo causante)
o Fraud existing BEFORE the contract
o If you are aware of the fraud, you would not have
given your consent
o Remedy: Annulment

- Fraud in execution of contract (dolo incidente)
o Fraud existing AFTER the contract
o If you are aware of the fraud, you would still have
given your consent but UNDER DIFFERENT
CIRCUMSTANCES
o Remedy: Damages


In the Bar Exam:
If the cases do not involve INSURANCE or MARRIAGE, apply the general
rule: presence of fraud will be a ground for the annulment of contract

Difference in Marriage:
Nullity
The ground is existing even BEFORE the celebration of the marriage

Annulment
The ground is existing AT THE TIME of the celebration of the marriage

The party would not have given his consent if he is aware that there is
fraud. Hence, it is a ground for the annulment of the contract.

ANNULMENT: If the ground is existing AT THE TIME OF THE
CELEBRATION of the marriage

LEGAL SEPARATION: If the ground is existing after the marriage is
celebrated

Ex: CONCEALMENT of lesbianism; if no concealment, just legal
separation (take note of these details)


Formality of Contracts: Generally, no prescribed form. If there is, form
must be followed. Affects enforceability not validity.

SOLEMN contracts: form must be followed, otherwise void. (FORM is an
essential element for validity)

Example: sale of things for more than P5,000, antichresis


MODES OF EXTINGUISHMENT

I. CONDONATION / REMISSION gratuitous (act of liberality),
therefore it has to comply with the formalities of a donation-
depends upon the kind of property being donated:
Personal value doesnt exceed 5K, does not have to be in
writing; only requires simultaneous delivery and acceptance by donee.
If exceeds 5k: writing + acceptance

Real writing AND in public instrument
(these formalities are essential for VALIDITY, not just enforceability)

Requisites for condonation: GAD
Gratuitous
Accepted by debtor
Due and Demandable obli

Condonation may be TOTAL or PARTIAL. If TOTAL, it benefits everybody
(if joint/solidary debtors).

II. CONFUSION/MERGER merger of character of debtor and creditor
in one personality
Requisites:
Must take place in the person of PRINCIPLE debtor or creditor
Must be definite and COMPLETE (no such thing as partial)

-DOES NOT APPLY TO JOINT OBLIGATION (because how can it apply if
the debtor is only liable for his corresponding share?)


III. LEGAL COMPENSATION Quits tayo!
Requisites: PRIMO DLN
PRI Principal Debtor & Principal Creditor (both are principal debtor
and principal of creditor of each other)

MO Money (debt is a sum of money or if consumable, SAME KIND and
QUALITY)

D debts are DUE

L debts are LIQUIDATED (meaning determined and certain: for
example, an obligation with a penalty of 5% interest. This is not yet
Liquidated. You still have to compute the 5%. If it is an obligation of 5%
interest which is totalling 35,000 pesos, then it is already Liquidated.)

N NOT subject to retention/controversy (there are no other 3
rd

persons with interest over it)
LEGAL COMPENSATION: BY OPERATION OF LAW, THE OBLIGATION IS
EXTINGUISHED.

DO NOT FORGET: The term PRINCIPAL is controlling. It has to be
principal debtor and creditor. There are accessory principals, example:
guarantor

Tip: Bear in mind these requisites. If the bar question has everything,
there is legal compensation. The absence of one will not give rise to
legal compensation.

CONVENTIONAL COMPENSATION: BASED ON THE AGREEMENT OF THE
PARTIES. Therefore, they will not follow the requisites.

JUDICIAL COMPENSATION: Has to be in court. Involves a case where
there is another case involving the same parties and then damages are
awarded. You inform the court that judicial compensation can take
place.

WHEN IS COMPENSATION PROHIBITED?
1. Obligation arising from a DEPOSIT (obligation where you
deliver the property to a party for safekeeping)

2. Obligation arising from COMMODATUM (bailee has the
obligation to deliver/return the same property that was
handed to him for use. There is no transfer of ownership)

3. SUPPORT by gratuitous title (Dad, you did not support me.
You sold me your car. I wont pay you anymore so quits na.
Cannot be)

LOPEZ ROSARIO NOTES TRANSCRIPT OF AUDIO LECTURES (ObliCon)


4. If it involves a CIVIL LIABILITY arising from a CRIMINAL
OFFENSE/DELICT (Because delict cannot be made subject to
settlement. I kill you, I pay you na lang)

5. DAMAGE caused to the PARTNERSHIP by a PARTNER
(explicitly provided by law)

6. Obligation IN FAVOR OF THE GOVERNMENT (example:
government owes you for eminent domain, you owe govt
income tax. You cannot offset that. Because different
brances of government)

CAN A CREDITOR ASSIGN HIS INTEREST TO A THIRD PERSON AND THERE
CAN STILL BE COMPENSATION?
Article 1285 (three cases of assignment)
1) Assignment WITH CONSENT OF DEBTOR
2) Assignment WITHOUT CONSENT OF DEBTOR
3) Assignment WITHOUT KNOWLEDGE OF DEBTOR
MEANING--- The creditor STILL HAS THE RIGHT TO ASSIGN HIS CREDIT.
But the assignment will have a different effect depending on those
three cases.
1) WITH CONSENT OF DEBTOR: NO. Debtor cannot set up
compensation UNLESS HE RESERVES THE RIGHT at the time
he gave his consent
2) WITHOUT CONSENT OF DEBTOR: YES, to those debts that
were due PRIOR to the assignment. Those that will become
due after assignment, no more compensation.
3) WITHOUT KNOWLEDGE OF DEBTOR: Yes. For as long as the
debtor is still unaware, because the assignment will only be
binding to the debtor when he has knowledge of it
III. NOVATION: Novation will take place if any of these change:
1) Object / principal obligation
2) Debtor
3) Credtor
Strictly speaking, novation does not totally extinguish: because once
the old obligation is terminated, A NEW OBLIGATION is created. (her
opinion) Memorize the requisites:
1) Old obli
2) New obli
3) Substantial difference between old obli and new obli
4) Capacity of the parties
5) Intention to extinguish
***INTENTION TO EXTINGUISH is an essential requisite.
Novation is not presumed. It must be in unequivocal terms. If in the bar
exams, the question is IS THERE A NOVATION? Find out if there is an
explicit stipulation that the old obligation is extinguished and the new
obligation will substitute.or the replacement of a third person in lieu of
the debtor/creditor will extinguish the obligation of the old
debtor/creditor. Because it has to be in unequivocal terms. Any
element that is missing = your answer should be there is no novation.
The new obli and old obli must be INCOMPATIBLE.



Remember Expromision and Delegacion. When debtor delegates the
debt---if he knew new debtor is insolvent, his old obligation will be
revived.

OBLIGEE CREDITOR ACTIVE SUBJECT
OBLIGOR DEBTOR PASSIVE SUBJECT
PRESTATION OBJECT OF THE OBLIGATION

MONEY FUNGIBLE. GENERIC THING.
**