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LAW - rule of action/system of uniformity  Binding force – moral law is not

absolute; it varies with the changing


GENERAL DIVISIONS OF LAW
times
LAW (STRICT LEGAL SENSE) - enforced by the  Place in state law – moral law
state; state law influences or shapes state law.

LAW (NON-LEGAL SENSE) – not promulgated PHYSICAL LAW – uniformities of actions and
and enforced by the state; divine law, natural orders of sequence which are the physical
law, moral law, and physical law phenomena that we sense and feel.

SUBJECTS OF LAW  Order or regularity in nature – a


law of physical science, being
LAW AS A RULE OF ACTION (state law, divine
addressed to objects which have no
law, natural law, and moral law) – apply to men
power to disobey, is in reality
as rational beings only.
nothing more than an order or
LAW OPERATES ON ALL THINGS (physical law) – regularity in nature by which
including men, without regard to the latter’s certain results follow certain
use of their will power and intelligence. causes.
 Called law only by analogy – order
DIVINE LAW – law of religion and faith
or regularity is called law only by
 Source – promulgated by God analogy.
 Sanction – certain rewards and STATE LAW – particularly concerns us in this
punishments work; promulgated and enforced by the state.
NATURAL LAW – divine inspiration in man  Other terms used – this law is also
 Binding force – ever present and called positive law, municipal law,
binding on all men everywhere and at civil law, or imperative law.
all times; basic understanding of right  Binding force – only state law is
and wrong. enforced by the state.
 Compared to divine law – divine law by  Concern of state law – does not
means of direct revelation while natural concern itself with violations of the
law is the core of his higher self. latter rules of action unless they
 Place in state of law – reasonable basis also constitute violations of its
of state law. commands.

MORAL LAW – totality of the norms of good CONCEPTS OF (STATE) LAW


and right conduct  General sense – laws taken
 Determination of what is right and together.
wrong – privilege to determine  Specific sense – particular statute
what is right and what is wrong. or legal rule
 Sanction – no definite legal
sanction
CHARACTERISTICS OF LAW 2. Legislation – declaration of legal rules
by a competent authority.
 It is a rule of conduct – what shall
(enacted/statute law)
be done and what shall not be
3. Administrative or executive orders,
done.
regulations, and rulings – issued by
 It is obligatory – positive command administrative officials under legislative
imposing a duty to obey authority.
 It is promulgated by legitimate 4. Judicial decisions or jurisprudence –
authority – in a democratic country, the decisions of the courts, particularly
like the Philippines, the legitimate the Supreme Court, applying or
or competent authority is the interpreting the laws or the
legislature. Constitution form part of the legal
 It is of common observance and system of the Philippines.
benefit – law is intended by man to 5. Custom – habits and practices which
serve man. It regulates the relations through long and uninterrupted usage
of men to maintain harmony in have become acknowledged and
society and to make order and co- approved by society as binding rules of
existence possible. conduct.
NECESSITY AND FUNCTIONS OF LAW 6. Other Sources – only supplementary;
resorted to by the courts in the absence
1. What would life be without law? of all the other sources.
The need for internal order is as
constant as the need for ORGANIZATION OF COURTS
external defense. 1. Regular courts
2. What does law do? 2. Special courts
Law secures justice, resolves 3. Quasi-judicial agencies
social conflict, orders society,
protects interests, controls CLASSIFICATIONS OF LAW
social relations.
1. As to its purpose:
3. What is our duty as members of
society? a.) Substantive law – creating, defining,
Every citizen should have some and regulating rights and duties
understanding of law and
b.) Adjective law – prescribing the
observe it for the common
manner or procedure by which rights may be
good.
enforced or their violations redressed.
SOURCES OF LAW
2. As to its subject matter:
1. Constitution – written instrument by
a.) Public law – the body of legal rules
which the fundamental powers of the
which regulates the rights and duties arising
government are established, limited,
from the relationship of the state to the people.
and defined.
(fundamental/supreme/highest law) b.) Private law – the body of rules
which regulates the relations of individuals with
one another for purely private ends.
CHAPTER 1 (GENERAL PROVISIONS) FORM OF OBLIGATIONS – manner in which an
obligation is manifested or incurred.
ARTICLE 1156 – AN OBLIGATION IS A JURIDICAL
NECESSITY TO GIVE, TO DO OR NOT TO DO. 1. As a general rule, the law does not
require any form in obligations arising
Obligation – derived from Latin word obligatio
from contracts for their validity or
which means tying or binding; tie or bond
binding force.
recognized by law by virtue of which one is
2. Obligations arising from other sources;
bound in favor of another to render something.
do not have any form at all
CIVIL CODE DEFINITION OF ARTICLE 1156
OBLIGATION, RIGHT, AND WRONG
- The duty under the law of the debtor or DISTINGUISHED
obligor (he who has the duty of giving
1. Obligation – act or performance which
doing, or not doing) when it speaks of
the law will enforce.
obligation as a juridical necessity.
2. Right – power which a person has
Juridical necessity – debtor must comply with under the law, to demand from another
his obligation whether he likes it or not; any prestation
otherwise, his failure will be visited with some 3. Wrong (cause of action) – act or
harmful or undesirable consequences. omission of one party in violation of the
legal right or rights of another; injury is
NATURE OF OBLIGATIONS UNDER CIVIL CODE also used to refer to the wrongful
Civil Obligations – creditor/oblige a violation of the legal right of another.
right under the law to enforce their Essential elements of a legal wrong or
performance in courts of justice. injury
Natural Obligations – not being based a.) Legal right in favor of a person
on positive law but on equity and natural law, (creditor/oblige/plaintiff)
do not grant a right of action to enforce their b.) Correlative legal obligation
performance. (debtor/obligor/defendant) to
ESSENTIAL REQUISITES OF AN OBLIGATION respect or not to violate said right
c.) Act or omission by the latter in
1. Passive subject (called debtor/obligor) violation of said right with resulting
– bound to the fulfillment of the injury or damage to the former.
obligation; he who has duty
2. Active subject (called creditor/obligee) KINDS OF OBLIGATION ACCORDING TO THE
– entitled to demand the fulfillment of SUBJECT MATTER
the obligation; he who has right 1. Real obligation (obligation to give) -
3. Object or prestation (subject matter of obligor must deliver to the obligee.
the obligation) – conduct required to 2. Personal obligation (obligation to do or
be observed by the debtor not to do) – subject matter is an act to
4. Juridical or legal tie (called efficient be done or not to be done.
cause) – binds or connects the parties
to the obligation; can easily be
determined by knowing the source of
the obligation.
2 kinds of Personal Obligation: delicts or crimes or not punishable
in the case of quasi-delicts or torts
a.) Positive personal
obligation – obligation to ARTICLE 1158 – OBLIGATIONS DERIVED FROM
do or to render service. LAW ARE NOT PRESUMED. ONLY THOSE
b.) Negative personal EXPRESSLY DETERMINED IN THIS CODE OR IN
obligation- obligation not SPECIAL LAWS ARE DEMANDABLE, AND SHALL
to do BE REGULATED BY THE PRECEPTS OF THE LAW
WHICH ESTABLISHES THEM; AND AS TO WHAT
ARTICLE 1157 – OBLIGATIONS ARISE FROM:
HAS NOT BEEN FORESEEN, BY THE PROVISIONS
1. LAW OF THIS BOOK.
2. CONTRACTS
Special laws refer to all other laws not
3. QUASI-CONTRACTS
contained in the Civil Code
4. ACTS OR OMISSIONS PUNISHED BY
LAW ARTICLE 1159 – OBLIGATIONS ARISING FROM
5. QUASI-DELICTS CONTRACTS HAVE THE FORCE OF LAW
BETWEEN THE CONTRACTING PARTIES AND
SOURCES OF OBLIGATIONS
SHOULD BE COMPLIED WITH IN GOOD FAITH
1. Law – when they are imposed by law
Contract – a meeting of minds between
itself.
2 persons whereby one binds himself ,
2. Contracts – when they arise from the
with respect to the other, to give
stipulation of the parties.
something or to render some service.
3. Quasi-contracts – when they arise from
lawful, voluntary and unilateral acts 1. Binding Force – have the
which are enforceable; considered as force of law between the
arising from law. contracting parties
4. Crimes or acts or omissions punished 2. Requirement of a valid
by law – arise from civil liability which is contract – a contract is
the consequence of a criminal offense. valid if it is not contrary to
5. Quasi-delicts or torts – when they arise law, morals, good customs,
from damage caused to another public order, and public
through act/omission, there being fault policy. It is invalid or void if
or negligence, but no contractual it is contrary to law, morals,
relation exists between the parties. good customs, public order,
or public policy
SOURCES CLASSIFIED
3. Breach of contract – a
1. Emanating from law contract may be breached
2. Emanating from private acts which or violated by a party in
may be further subdivided into: whole or in part.
a.) Arising from licit acts, in the case of
contracts and quasi-contracts
b.) Arising from illicit acts, which may COMPLIANCE IN GOOD FAITH – sincerity and
be either punishable in the case of honesty must be observed to prevent one party
from taking unfair advantage over the other.
ARTICLE 1160 – OBLIGATIONS DERIVED FROM 1. Every person criminally liable for an act
QUASI- CONTRACTS SHALL BE SUBJECT TO THE or omission is also civilly liable for
PROVISIONS OF CHAPTER 1, TITLE XVII OF THIS damages.
BOOK. 2. In crimes, however, which cause no
material damage (like contempt, insults
Quasi-contract – juridical relation resulting
to persons in authority, gambling,
from lawful, voluntary and unilateral acts by
violations of traffic regulations, etc.)
virtue of which the parties become bound to
there is no civil liability to be enforced.
each other to the end that no one will be
But a person not criminally responsible
unjustly enriched or benefited at the expense of
may still be liable civilly.
another.
SCOPE OF CIVIL LIABILITY
KINDS OF QUASI-CONTRACTS
1. Restitution
1. Negotiorum gestio – voluntary
2. Reparation for the damage caused
management of the property or
3. Indemnification for consequential
affairs of another without the
damages
knowledge or consent of the latter
2. Solutio indebiti – created when ARTICLE 1162 – OBLIGATIONS DERIVED FROM
something is received when there is QUASI-DELICTS SHALL BE GOVERNED BY THE
no right to demand it and it was PROVISIONS OF CHAPTER 2, TITLE XVII OF THIS
unduly delivered through mistake. BOOK, AND BY SPECIAL LAWS.

Requisites are: Quasi-delict – act or omission by a person


which causes damage to another in his person,
a.) There is no right to receive the
property, or rights giving rise to an obligation to
thing delivered
pay for the damage done, there being fault or
b.) The thing was delivered through
negligence but there is no pre-existing
mistake
contractual relation between the parties.
3. Other examples of quasi-contracts
– the cases that have been REQUISITES OF QUASI-DELICT
classified as quasi-contracts are of
1. There must be an act or omission
infinite variety
2. There must be fault or negligence
ARTICLE 1161 – CIVIL OBLIGATIONS ARISING 3. There must be damage caused
FROM CRIMINAL OFFENSES SHALL BE 4. There must be a direct relation or
GOVERNED BY THE PENAL LAWS, SUBJECT TO connection of cause and effect between
THE PROVISIONS OF ARTICLE 2177, AND OF the act or omission and the damage
THE PERTINENT PROVISIONS OF CHAPTER 2, 5. There is no pre-existing contractual
PRELIMINARY TITLE, ON HUMAN RELATIONS, relation between the two parties.
AND OF TITLE XVIII OF THIS BOOK,
CRIME DISTINGUISHED FROM QUASI- DELICT
REGULATING DAMAGES.
1. In crime, there is criminal or malicious
CIVIL LIABILITY ARISING FROM CRIMES OR
intent or criminal negligence, while in
DELICTS
quasi-delict, there is only negligence.
2. In crime, the purpose is punishment, 2. A generic thing is identified only by its
while in quasi-delict, indemnification of specie. The debtor can give anything of
the offended party the same class as long as it is of the
3. Crime affects public interest, while same kind.
quasi-delict concerns private interest
DUTIES OF DEBTOR IN OBLIGATION TO GIVE A
4. In crime, there are generally two
DETERMINATE THING
liabilities: criminal and civil, while in
quasi-delict, there is only civil liability 1. Preserve the thing – the obligor has the
5. Criminal liability can not be incidental duty to take care of the thing
compromised or settled by the parties due with the diligence of a good father
themselves, while the liability for quasi- of a family pending delivery.
delict can be compromised as any other a.) Diligence of a good father
civil liability of a family – ordinary care
6. In crime, the guilt of the accused must or that diligence which an
be proved beyond reasonable doubt, average (a reasonably
while in quasi-delict, the fault or prudent) person exercises
negligence of the defendant need only over his own property.
be proved by preponderance (superior b.) Another standard of care –
or greater weight) of evidence. if the law or the stipulation
of the parties provides for
CHAPTER 2
another standard of care
(NATURE AND EFFECT OF OBLIGATION) (slight or extraordinary
diligence), said law or
ARTICLE 1163 – EVERY PERSON OBLIGED TO
stipulation must prevail
GIVE SOMETHING IS ALSO OBLIGED TO TAKE
c.) Factors to be considered –
CARE OF IT WITH THE PROPER DILIGENCE OF A
the diligence required
GOOD FATHER OF A FAMILY, UNLESS THE LAW
necessarily depends upon
OR THE STIPULATION OF THE PARTIES
the nature of the obligation
REQUIRES ANOTHER STANDARD OF CARE.
and corresponds with the
Specific/determinate thing – physically circumstances of the
segregated others of the same class. person, of the time, and of
the place.
Generic/indeterminate thing – only to a class d.) Reason for debtor’s
or genus to which it pertains and cannot be obligation – the debtor
pointed out with particularity. must exercise diligence to
SPECIFIC THING AND GENERIC THING insure that the thing to be
DISTINGUISHED delivered would subsist in
the same condition as it
1. A determinate thing is identified by its was when the obligation
individuality. The debtor cannot was contracted.
substitute it with another although the 2. Deliver the fruits of the thing
latter is of the same kind and quality 3. Deliver the accessions and accessories
without the consent of the creditor. 4. Deliver the thing itself
5. Answer for damages in case of non- suspensive period where the price has
fulfillment or breach been paid.
4. In obligations to give arising from law,
DUTIES OF DEBTOR IN OBLIGATION TO
quasi-contracts, delicts, and quasi-
DELIVER A GENERIC THING
delicts, the time of performance is
1. To deliver a thing which of the quality determined by the specific provisions of
intended by the parties taking into the law applicable.
consideration the purpose of the
MEANING OF PERSONAL RIGHT AND REAL
obligation and other circumstances
RIGHT
2. To be liable for damages in case of
fraud, negligence, or delay, in the 1. Personal right – right or power of a
performance of his obligation, or person (creditor) to demand from
contravention of the tenor thereof. another (debtor)
2. Real right – right or interest of a person
ARTICLE 1164 – THE CREDITOR HAS A RIGHT TO
over a specific thing
THE FRUITS OF THE THING FROM THE TIME
THE OBLIGATION TO DELIVER IT ARISES. PERSONAL RIGHT AND REAL RIGHT
HOWEVER, HE SHALL ACQUIRE NO REAL RIGHT DISTINGUISHED
OVER IT UNTIL THE SAME HAS BEEN
1. Personal right – definite active subject
DELIVERED TO HIM.
and a definite passive subject
DIFFERENT KINDS OF FRUITS Real right – only a definite active
subject without any definite passive
1. Natural fruits – spontaneous products
subject
of the soil, and the young and other
2. Personal right – binding or enforceable
products of animals.
only against a particular person
2. Industrial fruits – produced by lands of
Real right – directed against the whole
any kind through cultivation or labor
world
3. Civil fruits – derived by virtue of a
juridical relation OWNERSHIP ACQUIRED BY DELIVERY

RIGHT OF CREDITOR TO THE FRUITS Ownership and other real rights over property
are acquired and transmitted in consequence of
The creditor is entitled to the fruits of the thing
certain contracts by tradition or delivery.
to be delivered from the time the obligation to
make delivery arises. ARTICLE 1165 – WHEN WHAT IS TO BE
DELIVERED IS A DETERMINATE THING, THE
WHEN OBLIGATION TO DELIVER FRUITS ARISES
CREDITOR, IN ADDITION TO THE RIGHT
1. Arises from the time of the “perfection GRANTED HIM BY ARTICLE 1170, MAY COMPEL
of the contract” THE DEBTOR TO MAKE THE DELIVERY.
2. Subject to a suspensive condition or
IF THE THING IS INDETERMINATE OR GENERIC,
period
HE MAY ASK THAT THE OBLIGATION BE
3. In a contract of sale, the obligation
COMPLIED WITH AT THE EXPENSE OF THE
arises from the perfection of the
DEBTOR.
contract even if the obligation is subject
to a suspensive condition or a
IF THE OBLIGOR DELAYS, OR HAS PROMISED 2. Accessories – things joined to or
TO DELIVER THE SAME THING TO TWO OR included with the principal thing
MORE PERSONS WHO DO NOT HAVE THE
RIGHT OF CREDITOR TO ACCESSIONS AND
SAME INTEREST, HE SHALL BE RESPONSIBLE
ACCESSORIES
FOR FORTUITOUS EVENT UNTIL HE HAS
EFFECTED THE DELIVERY. All accessions and accessories are considered
included in the obligation; In order that they
REMEDIES OF CREDITOR IN REAL OBLIGATION
will be excluded, there must be a stipulation to
1. Specific real obligation (obligation to that effect.
deliver a determinate thing)
ARTICLE 1167 – IF A PERSON OBLIGED TO DO
a.) Demand specific performance or
SOMETHING FAILS TO DO IT, THE SAME SHALL
fulfillment
BE EXECUTED AT HIS COST.
b.) Demand rescission or cancellation
c.) Demand payment of damages only THIS SAME RULE SHALL BE OBSERVED IF HE
2. Generic real obligation (obligation to DOES IT IN CONTRAVENTION OF THE TENOR
deliver a generic thing) can be OF THE OBLIGATION. FURTHERMORE, IT MAY
performed by a third person since the BE DECREED THAT WHAT HAS BEEN POORLY
object is expressed only according to its DONE BE UNDONE.
family or genus; not necessary for the
creditor to compel the debtor to make SITUATIONS CONTEMPLATED IN ARTICLE 1167
the delivery , although he may ask for 1. Debtor fails to perform an obligation to
performance of the obligation. do
WHERE DEBTOR DELAYS OR HAS PROMISED 2. Debtor performs an obligation to do but
DELIVERY TO SEPARATE CREDITORS contrary to the terms thereof
3. The debtor performs an obligation to
Paragraph 3 gives 2 instances when fortuitous do but in poor manner
event does not exempt the debtor from
responsibility. It likewise refers to determinate REMEDIES OF CREDITOR IN POSITIVE
thing. An indeterminate thing cannot be the PERSONAL OBLIGATION
object of destruction by a fortuitous event 1. If the debtor fails to comply with his
because genus nunquam perit (genus never obligation to do, creditor has the right:
perishes) a.) To have the obligation
ARTICLE 1166 - THE OBLIGATION TO GIVE A performed by himself, or by
DETERMINATE THING INCLUDES THAT OF another, unless personal
DELIVERING ALL ITS ACCESSIONS AND considerations are involved,
ACCESSORIES, EVEN THOUGH THEY MAY NOT at the debtor’s expense
HAVE BEEN MENTIONED. b.) To recover damages
2. In case the obligation is done in
MEANING OF ACCESSIONS AND ACCESSORIES contravention of the terms of the same
or is poorly done, it may be ordered (by
1. Accessions – fruits of a thing or
the court upon complaint) that it be
additions/improvements upon a thing
undone if it is still possible to undo
(the principal)
what was done.
PERFORMANCE BY A THIRD PERSON PARTIES FULFILLS HIS OBLIGATION, DELAY BY
THE OTHER BEGINS.
Only feasible remedy of the creditor is
indemnification for damages. MEANING OF DELAY

ARTICLE 1168 – WHEN THE OBLIGATION 1. Ordinary delay – the failure to perform
CONSISTS IN NOT DOING, AND THE OBLIGOR an obligation on time
DOES WHAT HAS BEEN FORBIDDEN HIM, IT 2. Legal delay or default or mora – failure
SHALL ALSO BE UNDONE AT HIS EXPENSE. to perform an obligation on time which
failure constitutes a breach of the
REMEDIES OF CREDITOR IN NEGATIVE
obligation
PERSONAL OBLIGATION
KINDS OF DELAY OR DEFAULT
In an obligation not to do, the duty of the
obligor is to abstain from an act. The very 1. Mora solvendi – delay on the part of
obligation is fulfilled in not doing what is the debtor to fulfill his obligation
forbidden. 2. Mora accipiendi – delay on the part of
the creditor to accept the performance
ARTICLE 1169 – THOSE OBLIGED TO DELIVER
of the obligation
OR TO DO SOMETHING INCUR IN DELAY FROM
3. Compensatio morae – delay of the
THE TIME THE OBLIGEE JUDICIALLY OR
obligors in reciprocal obligations w
EXTRAJUDICIALLY DEMANDS FROM THEM THE
FULFILLMENT OF THEIR OBLIGATION. REQUISITES OF DELAY OR DEFAULT BY THE
DEBTOR
HOWEVER, THE DEMAND BY THE CREDITOR
SHALL NOT BE NECESSARY IN ORDER THAT 1. Failure of the debtor to perform his
DELAY MAY EXIST: (positive) obligation on the date agreed
upon
1. WHEN THE OBLIGATION OR THE LAW
2. Demand (not mere reminder or notice)
EXPRESSLY SO DECLARES
made by the creditor upon the debtor
2. WHEN FROM THE NATURE AND THE
to comply with his obligation which
CIRCUMSTANCES OF THE OBLIGATION
demand may be either judicial or
IN APPEARS THAT THE DESIGNATION
extrajudicial
OF THE TIME WHEN THE THING IS TO
3. Failure of the debtor to comply with
BE DELIVERED OR THE SERVICE IS TO
such demand
BE RENDERED WAS A CONTROLLING
MOTIVE FOR THE ESTABLISHMENT OF EFFECTS OF DELAY
THE CONTRACT
1. Mora solvendi
3. WHEN THE DEMAND WOULD BE
a.) The debtor is guilty of
USELESS, AS WHEN THE OBLIGOR HAS
breach or violation of the
RENDERED IT BEYOND HIS POWER TO
obligation
PERFORM.
b.) He is liable to the creditor
IN RECIPROCAL OBLIGATIONS, NEITHER PARTY for interest or damages. In
INCURS IN DELAY IF THE OTHER DOES NOT absence of extrajudicial
COMPLY OR IS NOT READY TO COMPLY IN A demand, the interest shall
PROPER MANNER WITH WHAT IS INCUMBENT commence from the filing
UPON HIM. FROM THE MOMENT ONE OF THE of the complaint
c.) He is liable even for the 1. Fraud (deceit or dolo) – malice or
fortuitous event when the dishonesty and it cannot cover cases of
obligation is to deliver a mistake and errors of judgment made in
determinate thing good faith.
2. Mora accipiendi 2. Negligence (fault or culpa) – any
a.) The creditor is guilty of voluntary act or omission, there being
breach of obligation no bad faith or malice, which prevents
b.) He is liable for damages the normal fulfillment of an obligation
suffered 3. Delay (mora)
c.) He bears the risk of loss of 4. Contravention of the terms of the
the thing due obligation – violation of the terms and
d.) Where the obligation is to conditions stipulated in the obligation;
pay money, the debtor is must not be due to a fortuitous event
not liable for interest from or force majeure
the time of creditor’s delay
FRAUD AND NEGLIGENCE DISTINGUISHED
e.) The debtor may release
himself from the obligation 1. Fraud – deliberate intention to cause
by the consignation or damage or injury
deposit in court of the thing Negligence – no such intention
or sum due 2. Fraud – waiver of the liability for future
3. Compensatio morae is void
There is no default or delay on the part Negligence – such waiver in a certain
of both parties. sense, be allowed
If the delay of one party is followed by 3. Fraud must be clearly proved, while
that of the other, the liability of the first negligence is presumed from the
infractor shall be equitably tempered or violation of a contractual obligation
balanced by the courts. 4. Liability for fraud cannot be mitigated
or reduced by the courts, while liability
WHEN DEMAND IS NOT NECESSARY TO PUT
for negligence may be reduced
DEBTOR IN DELAY
according to the circumstances.
1. When the obligation so provides
ARTICLE 1171 – RESPONSIBILITY ARISING
2. When the law so provides
FROM FRAUD IS DEMANDABLE IN ALL
3. When time is of the essence
OBLIGATIONS. ANY WAIVER IF AN ACTION FOR
4. When demand would be useless
FUTURE FRAUD IS VOID.
5. When there is performance by a party
in reciprocal obligations RESPONSIBILITY ARISING FROM FRAUD
DEMANDABLE
ARTICLE 1170 – THOSE WHO IN THE
PERFORMANCE OF THEIR OBLIGATIONS ARE This provision refers to incidental fraud which is
GUILTY OF FRAUD, NEGLIGENCE, OR DELAY employed in the fulfillment of an obligation
AND THOSE WHO IN ANY MANNER
CONTRAVENE THE TENOR THEREOF, ARE WAIVER OF ACTION FOR FUTURE FRAUD VOID
LIABLE FOR DAMAGES A waiver of an action for future fraud is void as
GROUNDS FOR LIABILITY being against the law and public policy.
ARTICLE 1173 – THE FAULT OR NEGLIGENCE OF
THE OBLIGOR CONSISTS IN THE OMISSION OF
WAIVER OF ACTION FOR PAST FRAUD VOID
THAT DILIGENCE WHICH IS REQUIRED BY THE
A past fraud can be the subject of a valid waiver NATURE OF THE OBLIGATION AND
because the waiver can be considered as an act CORRESPONDS WITH THE CIRCUMSTANCES OF
of generosity and magnanimity on the part of THE PERSON, OF THE TIME AND OF THE PLACE.
the party who is the victim of the fraud. WHEN NEGLIGENCE SHOWS BAD FAITH, THE
PROVISIONS OF ARTICLES 1171 AND 2201,
ARTICLE 1172 – RESPONSIBILITY ARISING PARAGRAPH 2, SHALL APPLY.
FROM NEGLIGENCE IN THE PERFORMANCE OF
EVERY KIND OF OBLIGATION IS ALSO IF THE LAW OR CONTRACT DOES NOT STATE
DEMANDABLE, BUT SUCH LIABILITY MAY BE THE DILIGENCE WHICH IS TO BE OBSERVED IN
REGULATED BY THE COURTS, ACCORDING TO THE PERFORMANCE, THAT WHICH IS EXPECTED
THE CIRCUMSTANCES. OF A GOOD FATHER OF A FAMILY SHALL BE
REQUIRED.
RESPONSIBILITY ARISING FROM NEGLIGENCE
DEMANDABLE MEANING OF FAULT OR NEGLIGENCE

The debtor is also liable for damages resulting Negligence is the failure to observe for the
from his negligence protection of the interests of another person,
that degree of care, precaution, and vigilance
VALIDITY OF WAIVER OF ACTION ARISING which the circumstances justly demand,
FROM NEGLIGENCE whereby such other person suffers injury.
1. An action for future negligence (not FACTORS TO BE CONSIDERED
fraud) may be renounced except where
the nature of the obligation requires 1. Nature of the obligation
the exercise of extraordinary diligence 2. Circumstances of the person
as in the case of common carriers. 3. Circumstances of time
2. Where negligence shows bad faith, it is 4. Circumstances of the place
considered equivalent to fraud.
MEASURE OF LIABILITY FOR DAMAGES
KINDS OF NEGLIGENCE ACCORDING TO
Damages signify the money compensation
SOURCE OF OBLIGATION
awarded to a party for loss or injury resulting
1. Contractual negligence (culpa from breach of contract or obligation by the
contractual) – makes the debtor liable other.
for damages in view of his negligence in
KINDS OF DILIGENCE REQUIRED
the fulfillment of a pre-existing
obligation 1. That agreed upon by the parties, orally
2. Civil negligence (culpa aquiliana) – or in writing
obligation between the parties not so 2. In the absence of stipulation, that
related before by any preexisting required by law in the particular case
contract. 3. If both the contract and law are silent,
3. Criminal negligence (culpa criminal) – then the diligence expected of a good
resulting in the commission of a crime father of a family
ARTICLE 1174 – EXCEPT IN CASES EXPRESSLY 4. The debtor must be free from any
SPECIFIED BY THE LAW, OR WHEN IT IS participation in, or the aggravation of,
OTHERWISE DECLARED BY STIPULATION, OR the injury to the creditor, that is, there
WHEN THE NATURE OF THE OBLIGATION is no concurrent negligence on his part
REQUIRES THE ASSUMPTION OF RISK, NO
The absence of any of the above requisites
PERSON SHALL BE RESPONSIBLE FOR THOSE
would prevent the obligor from being
EVENTS WHICH COULD NOT BE FORESEEN, OR
exempt from liability
WHICH THOUGH FORESEEN, WERE
INEVITABLE. Mere pecuniary inability or poverty is not
an excuse for the non-fulfillment of an
MEANING OF FORTUITOUS EVENT
obligation.
Any event which cannot be foreseen, or which,
RULES AS TO LIABILITY IN CASE OF
though foreseen, is inevitable.
FORTUITOUS EVENT
FORTUITOUS EVENT DISTINGUISHED FROM
A person is not, as a rule, responsible for loss or
FORCE MAJEURE
damage caused to another resulting from the
1. Acts of man – event independent of the non-performance of his obligation due to a
will of the obligor but not of other fortuitous event. In other words, his obligation
human wills is extinguished.
2. Acts of God – called majeure or those
1. When expressly specified by law
events which are totally independent
a.) The debtor is guilty of
will of every human being
fraud, negligence, or delay,
Fortuitous events and force majeure are or contravention of the
identical as they exempt an obligor from liability tenor of the obligation
b.) The debtor has promised to
KINDS OF FURTUITOUS EVENTS
deliver the same (specific)
1. Ordinary fortuitous events – common; thing to 2 or more persons
contracting parties could reasonably who do not have the same
foresee interest
2. Extra-ordinary fortuitous events – c.) The obligation to deliver a
uncommon; could not have reasonably specific thing arises from a
foreseen crime
2. When declared by stipulation
REQUISITES OF A FORTUITOUS EVENT 3. When the nature of the obligation
1. The event must be independent of the requires the assumption of risk
human will or at least of the debtor’s ARTICLE 1175 – USURIOUS TRANSACTIONS
will SHALL BE GOVERNED BY SPECIAL LAWS
2. The event could not be foreseen, or if
foreseen, is inevitable MEANING OF SIMPLE LOAN OR MUTUUM
3. The event must be of such a character
A contract whereby one of the parties
as to render it impossible for the debtor
delivers to another, money or other
to comply with his obligation in a
consumable thing, upon the condition that
normal manner
the same amount of the same kind and WHEN PRESUMPTIONS IN ARTICLE 1176 DO
quality shall be paid. NOT APPLY

MEANING USURY 1. With reservation as the interest


Article 1176 do not arise where there is
Contracting for or receiving interest in
a reservation that no payment has been
excess of the amount allowed by the law for
made as to interest or prior
the loan or use of money, goods, chattels or
installments, as the case may be
credits.
2. Receipt without indication of particular
REQUISITES FOR RECOVERY INTEREST installment paid
Receipt does not recite that it was
1. The payment of interest must be issued for a particular installment due
expressly stipulated as when the receipt is only dated
2. The agreement must be in writing 3. Receipt for a part of the principal –
3. The interest must be lawful such a receipt, without mentioning the
A stipulation for the payment of usurious interest, implies that the creditor
interest is void, as if there is no stipulation as to waives his right to apply the payment
interest. first to the interest.
4. Payment of taxes – article 1176 does
ARTICLE 1176 – THE RECEIPT OF THE PRINCIPAL not apply to payment of taxes.
BY THE CREDITOR, WITHOUT RESERVATION 5. Non-payment proven – article 1176 is
WITH RESPECT TO THE INTEREST, SHALL GIVE not applicable where the non-payment
RISE TO THE PRESUMPTION THAT SAID of prior obligations has been proven.
INTEREST HAS BEEN PAID.
ARTICLE 1177 – THE CREDITORS, AFTER HAVINF
THE RECEIPT OF A LATER INSTALLMENT OF A PURSUED THE PROPERTY IN POSSESSION OF
DEBT WITHOUT RESERVATION AS TO PRIOR THE DEBTOR TO SATISFY THEIR CLAIMS, MAY
INSTALLMENTS, SHALL LIKEWISE RAISE THE EXERCISE ALL THE RIGHTS AND BRING ALL THE
PRESUMPTION THAT SUCH INSTALLMENTS ACTIONS OF THE LATTER FOR THE SAME
HAVE BEEN PAID. PURPOSE, SAVE THOSE WHICH ARE INHERENT
MEANING OF PRESUMPTION IN HIS PERSON; THEY MAY ALSO IMPUGN THE
ACTS WHICH THE DEBTOR MAY HAVE DONE TO
The inference of a fact not actually known DEFRAUD THEM.
arising from its usual connection with another
which is known or proved. REMEDIES AVAILABLE TO CREDITORS FOR THE
SATISFACTION OF THEIR CLAIMS
TWO KINDS OF PRESUMPTION
1. Exact fulfillment
1. Conclusive presumption – cannot be 2. Pursue the leviable
contradicted; conclusively presumed to 3. “after having pursued the property in
know the law possession of the debtor”, exercise all
2. Disputable (or rebuttable) the rights and bring all the actions of
presumption – can be contradicted or the debtor
rebutted by presenting proof of 4. Ask the court to rescind or impugn acts
contrary or contracts which the debtor may have
done to defraud him when he cannot in
any other manner recover his claim

ARTICLE 1178 – SUBJECT TO THE LAWS, ALL


RIGHTS ACQUIRED IN VIRTUE OF AN
OBLIGATION ARE TRANSMISSIBLE, IF THERE
HAS BEEN NO STIPULATION TO THE
CONTRARY.

TRANSMISSIBILITY OF RIGHTS

1. Prohibited by law
a.) By the contract of partnership
b.) By the contract of agency
c.) By the contract of commodatum
2. Prohibited by stipulation of the parties