1.

2.

D
D (give; to do[Specific performance is
not an allowable remedy in case of
breach of an obligor in obligations to
give & to do])

3.

debtor, he shall haveno other right than

that granted to the usufructuary.

A (Casual Obligation will validate an

Obligation)

Fulfillm ent of the condition depen ds upo n chance/or

upo n the w ill of a third person .
The obligation condition shall take effect.
(valid and enforceable )

4. C

5. D (1189)
(Effect of Loss, Deterioration, or Improvement
(Art. 1189)
1. If the thing is lost without the fault of the
debtor, the obligation shall be
extinguished;
2. If the thing is lost through the fault of the
debtor, he shall be obliged to pay
damages; it is understood that the thing is
lost when it perishes, or goes out ofcommerce,
or disappears in such a way
that its existence is unknown or it cannot
be recovered;
3. When the thing deteriorates without the
fault of the debtor, the impairment is to be
borne by the creditor;
4. If it deteriorates through the fault of the
debtor, the creditor may choose between
the rescission of the obligation and its
fulfillment, with indemnity for damages
in either case;
5. If the thing is improved by its nature, or by
time, the improvement shall inure to the
benefit of the creditor;
6. If it is improved at the expense of the

6. A (joint obligation)
Sec. 4. - Joint and Solidary Obligations
Joint obligation - obligation where there is a
concurrence of several creditors, or of several
debtors, or of several creditors and debtors, by
virtue of which each of the creditors has a right
to demand, and each of the debtors is bound to
render, compliance with his proportionatepart
ofthe prestation which constitutes the
obligation obligacion mancomunada
Solidary obligation obligation where there is a
concurrence of several creditors, or of several
debtors, or of several creditors and debtors, by
virtue of which each of the creditors has a right
to demand, and each of the debtors is bound to
render, entire compliance with the prestation
which constitutes the obligation obligacion
solidaria
Collective Obligations
(Art. 1207)
General rule: If there is a concurrence of several
creditors, or of several debtors, or of several
creditors and debtors,thepresumption is that
the obligation is JOINT and notsolidary.
Exceptions:
1. when the obligation expressly states that
there is solidarity;

jointly and severally

individually and collectively

2. when the law requires solidarity; and,
Art. 927, 1824, 1911, 1915, 2146,
2157, and 2194 NCC
Art. 110, RPC
3. when the nature of the obligation requires
solidarity.
Obligations arising from criminal offenses or
torts

7. D (Solidary)

8. C (insolvency only affects the

Reimbursementof the Debtor)
Extinguishment of Debtor's right to Period
(Art. 1198)
(1) When after the obligation has been contracted,
he becomes insolvent, unless
he gives a guaranty or security for the debt;
(a) insolvency needs no judicial declaration
(b) includes any case in which it would be
impossible financially for the debtor to comply
with his obligations
(c) such insolvency must not be preexisting;
arose after the constitution of the obligation
(d) if there is a guaranty or security for the
debt, the debtor, in spite of insolvency,
does not lose his right to the period.
(2) When he does not furnish to the creditor
the guaranties or securities which he has
promised;
(a) such failure renders the original obligation
pure and without any condition, and
consequently, the loan become due and
demandable.
(3) When by his own acts he has impaired said
guaranties or securities after their establishment,
and when through a fortuitous event they
disappear, unless he immediately gives new ones
equally satisfactory;

4. in either case of impairment or disappearance,

the debtor will not lose his right to period if he
gives a new guaranty or security which is equally
satisfactory.
(4) When the debtor violates any undertaking,
in consideration of which the creditor agreed to
the period;
(5) When the debtor attempts to abscond.
(a) Mere attempt of the debtor disappear
or run away from his obligation.

9. D (Art. 1229)
(Art. 1229)
The penalty may be reduced:
if the principal obligation has been partly com plied w ith
some but not all the prestation are com plied with by the
debtor
refers to the quantity or quality of the
Performance
if the principal obligation has been irregularly complied
with
allthe prestations were com plied w ith but not in
accordance w ith the tenor of the agreem ent refers to the
form
if the penaltyis iniquitous or
uncon scionable.
***The creditor cannot recover m ore than the
penalty stipulated even if he proves that the
damage suffered by him exceed in amount such
penalty.(the amount is already agreed upon )

10. B (Art. 1239)

(a) there is a difference between effects of

impairment and effects of disappearance

(Art. 1239)
***It is essential that the person who pays the
obligation should have the necessary legal capacity to
effect such paym ent.

1. if the guaranty or security is impaired through

the fault of the debtor, he shall lose his right to
the benefit of the period;

free disposal of the thing due

capacity to alienate the thing

2. if it is impaired without his fault, he

shall retain his right;
3. if the guaranty or security disappears through
any cause, even without the fault of the debtor,
he shall lose his right to the benefit
of the period

effect of absence of one or another w ill effect the invalidity

of payment
***Even if the creditor has alreadyaccepted the paym ent,
it m ay still be annulled by proper action in court, subject to
the exception provided in Art. 1427.
Part II
1.

(Art. 1174)

1. w here such liability is expressly specified

by law;
2. w here it is declared by stipulation of the
parties;
3. w here the nature of the obligation requir es
the assumption of risk.

For tuito us event (caso fortuito)- event which

could have not been foreseen, or though foreseen, were
inevitable.
Act of God For ce majeure
Independent of human intervention
events that arisefrom legitimateor illegitimate
acts of persons other than the obligor.
As to foreseeability
Ordinary extraordinary
General rule: If the reason for the non-compliance in the
obligation is a fortuitous event, the obligor is exempted
from liability w hatsoever.
EXCEPT:
1. w here such liabili ty is expresslyspecified
by law;
2. w here it is declared by stipulation of the
parties;
3. w here the nature of the obligation requires
the assumption of risk.
-(volenti non fit injuria) no w rong is
done to one w ho consents
***Art. 1174 applies only to determ inate obligations and
not to generic ones.
***res ipsa loquitur
***The caso fortuito must m e the SOLE and
proximate cause of the incident, to avail of it as a defense.
***Co-mingling negligence on the part of the
obligor forfeits the defense of caso fortuito.
Essential cond itions for Art. 1174 to apply:
1. that the event must be independen t of the
w ill of the obligor;
2. that the event must be either foreseeable
or inevitable;
3. that the event must be of such a character
as to render it impossible for the obligor to
fulfill his obligation in a norm al manner;
4. that the obligor must be free from any
participation in the aggravation of the injury
to the obligee.
2.

In re cip roca l oblig atio n, the moment the other

party complied with his oblig atio n failure to comply

3.

will cause the other party to be in delay

xxx xxxxxx xxx xxxxxx xxxxxxxxx xxxxxx

4.

(1) When after the obliga tion has been

contracted , he become s insolvent,
unless
he gives a guaranty or security for the deb t
(2 ) W hen he doe s not furnish to the creditor
the guaran ties or securities which he has
pro mised;
(3 ) W hen by his ow n acts he has impaired said
guaranties or securities after their
establishmen t, and when throu gh a fortuitou s
event they disappear, unle ss he immedia tely
gives new one s equ ally satisfactory;
(4 ) W hen the debtor violates any underta king,
in consideration of which the creditor agreed to
the period;
(5 ) W hen the debtor attempts to abscond .

(Art. 1255)
Cession or assignment - special form of payment
whereby the debtor abandons all of his property for
the benefit of the creditor in order that from the
proceeds thereof the latter may obtain payment of
their credits.
Requisit es:
plurality of debts
partial or relative insolvency of the debtor
acceptance of the cession by the creditor
insolvency Law- applicable if the creditor did not
accept the cession
Kinds of Cession:
contractual- Art. 1255, NCC
judicial- Insolvency Law
5.

Cession vs Dation in Payment

Number of Par ties:

(c) Plurality of creditors is essential
(d) There may be only one creditor
Financial c ondition of the par ties:
(c) Debtor is in partial or relative insolvency
(d) Debtor not necessarily in financial difficulty
Objec t:
(c) Universality of debtor's property
(d) Thing equivalent of the performance of
the obligation
Effec t:
(c) Release the debtor for the net proceeds of the
things ceded or assigned, unless there is a contrary

intention.
(d) Extinguishes the obligation to the extent the value
of the thing deli vered (as equivalent of the
performance ofthe obligation)

Art. 1197. If the obligation does not fix a period, but

from its nature and the circumstances it can be
inferred that a period was intended, the courts may
fix the duration thereof.

ESSAY

1.

For tui tous Ev ent.

Essential cond itions for Art. 1174 to apply:

1. that the event must be independen t of the
w ill of the obligor;
2. that the event must be either foreseeable
or inevitable;
3. that the event must be of such a character
as to render it impossible for the obligor to
fulfill his obligation in a norm al manner;
4. that the obligor must be free from any
participation in the aggravation of the injury
to the obligee.
to take care of the things with proper

diligence of a good father of a family.

2.

one with a period, subject to the provisions

of Article 1197. (1197 Court will fix a
period)

The courts shall also fix the duration of the period

when it depends upon the will of the debtor.
In every case, the courts shall determine such
period as may under the circumstances have been
probably contemplated by the parties. Once fixed
by the courts, the period cannot be changed by
them. (1128a)
3. Recip rocal ob ligatio ns
(Art. 1191)

*Failu re to give notice of the re scission of contract: ground

for offe nded party to file a case fo the re fund of the amounts
he had paid
Re me dy for the injure d p a rty:
re scission or fulfillme nt

A rt. 1180 (Period of obli gation)

Art. 1180. When the debtor binds himself

to pay when his means permit him to do so,
the obligation shall be deemed to be one
with a period, subject to the provisions of
Article 1197. (1197 Court will fix a period)
2. Joint and Solidary Obligations
Joint oblig ation - obligation where there is a concurrence of
several creditors, or of several debtors, or of several
creditors and debtors, by virtue of which each of the creditors
has a right to demand, and each of the debtors is bound to
render, compliance with his proportionate part ofthe
prestation which constitutes the obligation obligacion
mancomunada
Solidary oblig ation obligation where there is a
concurrence of several creditors, or of several debtors, or of
several creditors and debtors, by virtue of which each of the
creditors has a right to demand, and each of the debtors is
bound to render, entire compliance with the prestation which
constitutes the obligation obligacion solidaria
Collective Obligations
(Art. 1207)
General rule: If there is a concurrence of several creditors, or
of several debtors, or of several creditors and debtors ,the
presumption is that the obligation is JOINT and not solidary.

3. Art. 1180. When the debtor binds himself

to pay when his means permit him to do
so, the obligation shall be deemed to be

Re cip roca lo bligatio n- cre ate d or established at the same

time, out of the same cause and which re sults in the mutual
re lationship of cre ditor and de btor be twe e n the parties.
-charac te rize d by re cip rocity; one obligation
is corre lative of the othe r.
-bilate ral in characte r.
-tacit resolutory condit ion.
***Ge ner al r ule : If one of the parties fails to
comply with what is incumbent upon him,the re is a right on
the part of the othe r to rescin d (or re solve) the obligation.
Right of r esc ission- be longs to the injure d party alone .
-must be invoke d ju dicially by filing the prope r action of
re scission.
not absolu te ;the court is give n the
discre tionary power to fix a pe riod
within which the obligor in default may
be pe rmitted to comply with what is
incumbent upon him.
4. DBP vs CA(pactum comm issorium)
1. WON co ndition no . 12 o f the de ed of assignme nt
co nstitute d pa ctum c ommissionrum, a s was he ld b y the
tr ialc o urt
1. NO
Ra tio
To have a pactum commissiorum, the following ele me nts

must be pre se nt:

(1) there should be aproperty mortgage d by way of security
for the payme nt of the principal obligation, and
(2) there should be a stipulation for automatic appropriatio n
by the cre ditor of the thing mortgaged in case of nonpayment of the principa l obligation within the stipulate d
period.
Rea soning
Condition no. 12 me rely provided for the appointme nt of
DBP as attorne y-in-fact wit h authority, among othe r things,
to se ll or othe rwise dispose of the said re al rights, in case of
default by CUBA, and to apply the procee ds to the payment
of the lo an.-The provisio n is a standard conditio n in
mortgage contracts and is inconformity with Article 2087 of
the Civil Code , which authorizes the mortgage e to fore close
the mortgage and alie nate the mortgaged prope rty for the
payment of the principal obligation
2. W ON the act of D BP of appropriating CUBA
s leasehold
rights w as violative of Art. 2088 of the Civil Cod e, and that
D BP should have just conducted a foreclosur e proceeding,
so that the executio n of the D eed of Condition al Sale in
favor of Caperal w as void
2. YES
Ratio
Even in cases where foreclosure proceedings were had,
this Court had not hesitated to nullify the consequent
auction sale for failure to com ply with the requirements
laid down by law, such as Act No. 3135, as am ended.
15W ith more reason that the sale of proper ty given as
security for the paym ent of a debt be set aside if there was
no prior foreclosure proceeding.
Reasoning
Article 2088 of the Civil Code forbids a creditor from
appropr iating, or disposing of, the thing given as security
for the payment of a debt.- DBP knew that foreclosure
proceedings w ere necessary, how ever it did not conduct
any. In view of the false representation of DBP that it had
already foreclosed the mortgage, the Bureau of Fisheries
canceled CUBA's original lease permit, approved the deed
of conditional sale, and issued anew perm it in favor of
CUBA. Said acts which w ere predicated on such false
representation, as w ell as the subsequent acts em anating
from DBP's appropr iation of the leasehold rights, should
therefore be set aside. To validate these acts w ould open

the floodgates to circumvention of Article2088 of the Civil

Code
Possible bon us questio n
Ten m odes for extinguishment of Obligation
1. By Paymen t o f Performan ce
2. By th e L oss o f th e thin g d ue
3. Co ndon ati o n or remissio n o f the deb
4. Co nfu si on or merger o f the rig hts of

credi tor an d d eb tor

5. Co mp en sation
6. No vatio n
7. An nul men t
8. Resci ssi on
9. Fu lfi l lment of a reso lu tory con di tion
10. prescrip tio n
Or she mi gh t ask for the meani n g o f the ff:
Commod atum
Cul pa aqu il ian a
Daci on en p ag o
Mora acci piendi
Mora solvien di