OBLIGATIONS 3/31/2018 11:07:00 AM

Obligations- juridical necessity to give, to do or not to do

Requisites
 Parties
o Active subject- creditor or obligee
o Passive subject- debtor or obligor
 Prestation- object or subject matter ( giving, doing or not doing)
 Efficient Cause- vinculum/ legal tie (maybe the 5 sources of
obligation)
Civil obligation
 Based on positive law; enforceable in court
Natural obligation
 Based on natural law; not enforceable in court
Sources of Obligation
 Law (obligation ex lege)
 Contract (obligation ex contractu)
 Quasi-contracts- lawful, voluntary & unilateral acts giving rise to a
juridical relation to the end that no one shall be unjustly enriched at
the expense of another
o Negotiorum gestio- voluntary management of the property
or affairs of another w/o the knowledge or consent of the
latter
o Solutio indebiti- juridical relationship w/c is created when
something is received when there is no right to demand for it
and it was delivered through mistake
 Delicts (crimes)
 Quasi-delicts/culpa aquiliana/ tort- acts or ommisitions that cause
damage to another, there being no contractual relation between the
parties
TERMS
Specific or determinate thing- particularly designated or physically
segregated from all of the same class
Generic or indeterminate thing- class or genus w/c it pertains to &
cannot be pointed out with particularity
Accessories- things joined to principal thing for its Better use,
Embellishment or Completion. (e.g. keys to a car or house)
Accessions- fruits of the thing or anything produced by it. Addition or
improvement
Note: the creditor shall be entitled to the fruits of the thing at the time the
obligation to deliver the principal thing arises. The creditor however, will
acquire real right or ownership over the fruit only after the same has been
delivered to him.
OBLIGATIONS OF THE DEBTOR
 Obligation to give determinate things:
o Take care of the thing with the diligence of a good father of a
family; (unless the law or agreement of the parties requires
another standard of care)
o To Deliver the thing
o To deliver the fruits of the thing
 Kinds of fruits
 Natural Fruits (animals, trees etc.)
 Industrial Fruits (rice, corn, crops etc.)
 Civil Fruits (rent of bldg. annuities etc.)
 When creditor has a right to the fruits of a determinate
thing?
 From the time the obligation arises
 he shall acquire no real right over it until the thing
has been delivered to him
 When obligation to deliver the thing arises?
 Pure obligation- arises from perfection
 Suspensive period/condition- arises upon arrival
of the term or the fulfillment of the condition
 Rights of the creditor
 Personal right (jus in personam or jus ad rem)-
ex. Right of the creditor to demand the delivery of
the thing & its fruits from the dedbtor
 Real right (jus in re)- right or power over a
specific thing, such as possession or ownership,
w/c is a right enforceable against the whole world.
o To deliver its accessions & accessories even if they have not
been mentioned
 Obligations to give a generic thing
 o To deliver the thing w/c is neither of superior nor inferior
quality
o To pay damages in case of breach of the obligation by reason
of Delay, Fraud, Negligence or contravention of the tenor
thereof
REMEDIES OF THE CREDITOR
 If debtor fails to perform his obligation to deliver a determinate
thing
o To compel(force) the debtor to make delivery
o To demand damages from the debtor
 If debtor fails to perform his obligation to deliver a generic thing
o To ask that the obligation be complied w/ at the expense of
the debtor
o To demand damages from the debtor
 If debtor fails to perform his obligation in obligations to do
o Creditor may have the obligation executed @ the expense of
the debtor
o Demand damages from the debtor
 If the debtor performs the obligation but does it poorly
o Creditor may have the same be undone at debtor’s expense
o Creditor may demand damages from debtor
 If the debtor does what has been forbidden him
o Creditor may demand that what has been done be undone
o He may also demand damages from the debtor
STANCES AFFECTING OBLIGATION *grounds for liability to pay damages
1. FRAUD
 deliberate or intentional evasion by the debtor of the normal
compliance of his obligation
 must be present during the performance of the obligation & not
fraud at the tie of the birth of the obligation
o Dolo causante- casual fraud, vitiating consent; contract
becames voidable
o Dolo incidente- incidental fraud, giving rise to the right to
demand damages; contract is valid
o Future fraud- waiver for future fraud cannot be waived, even
if there is an agreement, the latter shall be void
 o Past fraud- waiver for past fraud can be waived
2. NEGLIGENCE
 omission of that diligence w/c is required by the nature of the
obligation corresponding to the circumstances of the person, of the
time & of the place
 TEST diligence of a good father of a family
o Culpa contractual-contractual negligence; master-servant rule
applies. (employees negligence is also the employer’s
negligence)
o Culpa criminal- criminal negligence; negligence that results in
the commission of a crime
o Culpa aquiliana- civil negligence/tort/quasi-delict/culpa extra
contractual- causes damages to another, there being no
contractual relation between the parties; master-servant rule
does not apply.
3. DELAY (mora)
 non-fulfillment of an obligation w/ respect to time
o mora solvendi- delay on the part of the debtor
 ex re- delay in real obligations (obligations to give)
 ex persona-delay in personal obligation(obligation todo)
o mora accipiendi- delay on part of creditor
o Compensatio morae- delay on the part of both parties in
reciprocal obligations (*no delay)
 Note: demand is necessary before one incurs delay except:
o Law expressly so declares
o Obligation itself so stipulates
o Time is of the essence
o Demand is useless as when obligor has rendered it beyond his
power to perform
o When there is performance by a party in reciprocal obligation

4. CONTRAVENTION OF THE TENOR OF THE OBLIGATION

DAMAGES [MENTAL]
 Moral- physical suffering, mental anguish, fright, serious anxiety….
 Exemplary-corrective damages
 Nominal- damages to vindicate a right
 
Temperate-moderate damages; more than nominal but less than
compensatory
 Actual/compensatory-pecuniary loss (loss in business/profession)
 Liquidated- agreed upon by the parties to a contract, to be paid in
case of breach
FORTUITOUS EVENTS
 Events that cannot be foreseen or although foreseen are inevitable
 Elements:
o Cause is independent of the will of the debtor
o Event must be unenforceable or unavoidable
o Occurrence of the event must be such as to render it
impossible for the debtor to fulfill his obligation in a normal
manner
o Debtor must be free from any participation in the aggravation
of the injury resulting to the creditor
 General rule: no liability in case of fortuitous event, except:
o When expressly declared by stipulation
o When the nature of the obligation requires the assumption of
risk
o When expressly declared by law
 Burden of proving loss due to fortuitous event
o Rests to the one who invokes it
RELATED RULES:
All rights acquired by virtue of an obligation are transmissible. Exceptions:
 When the law prohibits the transfer of rights
 When the stipulation of the parties prohibits the transfer of rights
The creditor has the following remedies to satisfy his claims against his
debtor:
Exact fulfillment/ specific performance
Pursue the leviable properties of the debtor
Accion subrogatoria ( A to B, B to C, A to C)- “transfer of credit”
Accion pauliana- rescind contracts entered into by the debtor to
defraud the creditor
PRESUMPTIONS
 When the creditor received the principal amount of an obligation
w/o reserving his right w/ respect to the interest, it is presumed
that said interest has been paid
 When the creditor received a later installment of a debt w/o
reserving his right as to the prior installments, it is presumed that
such prior installments have been paid
DIFFERENT KINDS OF OBLIGATIONS 3/31/2018 11:07:00 AM

PURE & CONDITIONAL OBLIGATION

 Pure- not subject to any condition; no specific date is mentioned for its
fulfillment; demandable at once. RULE: *obligation is demandable at once
 When it is pure
 When it is subject to a resolutory condition
 When it is subject to a resolutory period
 Conditional- depends upon the happening of a condition
 Characteristics:
o Future & uncertain
o Past but unknown
o Must not be impossible
 Kinds of Condition
o Suspensive/ condition antecedent or condition precedent
 If fulfilled, obligation arises or becomes effective
 If NOT fulfilled, no juridical relation is created
 Rights are not yet acquired, but there is a hope or
expectancy that they will soon be acquired
o Resolutory/ condition subsequent
 If fulfilled, obligation is extinguished
 If NOT fulfilled, juridical relation is consolidated
 Rights are already acquired, but subject to the threat or
danger of extinction
o Possible- capable of fulfillment
o Impossible- not capable of fulfillment (Void)
o Positive- an act is supposed to be performed
o Negative- an act is supposed not to be performed
o Potestative- depends upon the will of one contracting parties
 Potestative on the part of debtor
 Suspensive- obligation is void
 Resolutory- obligation is valid
 Potestative on the part of creditor
 VALID in any case ( suspensive/resolutory)
o Casual- depends upon chance or upon the will of third person
o Mixed- depends partly upon chance & will of third person
o Divisible- capable of partial performance
o Indivisible- not capable of partial performance
 Effect of fulfillment of Suspensive Condition
o Gen rule: Effect of fulfillment of Suspensive Condition
retroacts to the day of the constitution of the obligation;
except: there shall be no retroactive effect:
 In reciprocal obligations, the fruits & interests shall be
deemed to have been mutually compensated
 In unilateral obligations, the debtor keeps the fruits &
interests received before the fulfillment of the condition
o Rights & obligations before the fulfillment of the obligation
 Creditor- bring appropriate actions for the preservation
of his right (registering his claims w/ the Register of
Deeds)
 Debtor-may recover what he has paid by mistake
o Effects when the debtor voluntarily prevents fulfillment of the
condition
 Condition is deemed fulfilled & obligation becomes
immediately demandable
o Rules in case of loss, deterioration or improvement of
determinate thing before the fulfillment of the suspensive
condition
 Loss of the thing
 w/o debtor’s fault- obligations is extinguished
 w/ debtor’s fault- debtor is obliged to pay
damages
 Deterioration of the thing
 w/o debtor’s fault-impairment shall be borne by
the creditor
 w/ debtor’s fault- creditor may choose between
 rescission plus damages
 fulfillment plus damages
 Improvement of the thing
 By nature or by time-improvement shall inure to
the benefit of the creditor
 At the expense of the debtor- debtor will have
rights granted to a usufructuary
o Rules in case of fulfillment of resolutory condition
 Upon fulfillment of the condition, the obligation is
extinguished
 Parties shall return to each other what they have
received
 In case of loss, deterioration or improvement of the
thing, same rules shall apply on suspensive condition.
OBLIGATION W/ A PERIOD
 One which demandability or extinguishment is subjected to the
expiration of the term w/c must necessarily come.
 Ex die- period with suspensive effect
 In diem- period w/ resolutory effect
 Legal- period fixed by law
 Voluntary-period fixed by the parties
 Judicial- one that is fixed by the court
 Presumption
o Established for the benefit of both the parties (debtor &
creditor)
o Benefit of debtor- he cannot be compelled to perform his
obligation before the expiration of the term, but he may
choose to perform before such expiration at his option.
(payable on or before)
o Benefit of creditor-he cannot be compelled to accept
performance before expiration of the term, but he may
choose to demand performance before such expiration at his
option (collectible on or before)
 When debtor losses his right to make use of the period if it is for his
benefit; the creditor may demand immediate payment
o When he becomes insolvent, unless he gives a guaranty or
security for the debt
o When he fails to furnish the guaranties or securities that he
has promised
o When he impairs the guaranties or securities by his own acts,
or when through fortuitous event they disappear, unless he
gives a new ones equally satisfactory.
o When he violates any undertaking of which the creditor
agreed to the period
 o When he attempts to abscond (takas)
ALTERNATIVE & FACULTATIVE OBLIGATIONS
JOINT & SOLIDARY OBLIGATIONS
DIVISIBLE & INDIVISIBLE OBLIGATIONS
OBLIGATION W/ A PENAL CLAUSE
EXTINGUISHMENT OF OBLIGATIONS 3/31/2018 11:07:00 AM

1. Payment or performance
 payment of money, performance of obligation
2. Loss of the thing due
 considered loss when it perishes, or goes out of commerce, or
disappears in such way that its existence is unknown or can’t be
recovered.
3. Condonation or remission of the debt
 gratuitous abandonment by the creditor of his right (forgiveness of
debt)
4. Confusion or merger of rights of creditor and debtor
 meeting in one person of the qualities or the characteristics of of
creditor & debtor
5. Compensation
 extinguishing an obligation when two persons, in their own right,
are debtors & creditors of each other
6. Novation
 modification or extinguishment of an obligation by another, either
by changing the object or principal condition, substituting the
person of the debtor, or subrogating a third person in the rights of
the creditor
7. Annulment
8. Rescission
9. Fulfillment of resolutory Condition
10. prescription
11. other causes