Académique Documents
Professionnel Documents
Culture Documents
NPC VS. CA [161 S 334] - NPC RCPI VS. RODRIGUEZ [182 S 889]
cannot escape liability bec. its negligence - Resp. Rodriguez and RCPI entered
was the proximate cause of the loss and into a contract whereby for a fee RCPI
damage even though the typhoon was an undertook to send the respondent's
act of God.-- It is clear from the message overseas. When, therefore,
appellate court's decision that based on resp. Rodriguez paid RCPI to deliver his
its findings of fact and that of the trial message overseas by telegram, RCPI
court's, petitioner NPC was undoubtedly obligated itself to transmit the messages
negligent bec. it opened the spillway to the addressee. Clearly, RCPI reneged
gates of the Angat Dam only at the on its obligation when it failed to deliver
height of typhoon "Welming" when it the messages or to inform the sender
knew very well that it was safer to have about the non-delivery, thus making it
opened the same gradually and earlier, liable for damages.
as it was also undeniable that NPC knew
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 5
Zambales. Pablo. Gonzales
Fraud 3. Compensation Morae -- mutual
delay
Is it correct to say that fraud in Art.
1170 means deceit or insiduous ARTICLE 1172. Responsibility
machinations? No. arising from negligence in the
performance of every kind of
LEGASPI OIL VS. CA [224 S 213] - obligation is also demandable, but
Definition of Fraud.-- In general, fraud such liability shall may be regulated
may be defined as the voluntary by the courts, according to the
execution of a wrongful act, or willful circumstances.
omission, knowing and intending the
effects w/c naturally and necessarily CASE:
arise from such act or omission; the
fraud referred to in Art. 1170 is the METROBANK VS. CA [237 S 761] -
deliberate and intentional evasion of the As borne out by the records, the
normal fulfillment of obligation; it is dishonoring of the resp.'s checks
distinguished from negligence by the committed through negligence by the
presence of deliberate intent, w/c is petitioner bank on 4/6/82 was rectified
lacking in the latter. only on 4/15/82 or nine days after
receipf of the credit memo. Clearly,
Fraud as used in Art. 1170 is different petitioner bank was remiss in its duty
from fraud as a cause for vitiation of and obligation to treat pvt. resp's
consent in contracts (more properly account w/ the highest degree of care,
called deceit w/c prevents the contract considering the fiduciary nature of the
from arising; this is found in Art. 1380) relationship. The bank is under
obligation to treat the accounts of its
Q: What is a synonym for fraud as used depositors w/ meticulous care, whether
in Art. 1170? such account consists only of a few
A: Malice. hundred pesos or of millions. It must
bear the blame for failing to discover the
Effects of Fraud: mistake of its employee despite the
1. Creditor may insist on performance, established procedure requiring bank
specific or substitute (Art. 1233.) papers to pass through bank personnel
2. Creditor may resolve/ rescind (Art. whose duty it is to check and
1191.) countercheck them for possible errors.
3. Damages in either case (Art. 1170.) Responsibility arising from negligence in
the performance of every kind of
obligation is demandable. xxx
Negligence
Article 1173. The fault or
Negligence is the absence of something negligence of the obligor consists in
that should be there-- due diligence. the omission of that diligence which
is required by the nature of the
obligation and corresponds with the
Delay
circumstances of the persons, of the
time and of the place. When
Delay is the non-fulfillment of the
negligence shows bad faith, the
obligation w/ respect to time.
provisions of articles 1171 and 2201,
paragraph 2, shall apply.
Kinds of Delay:
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 17
Zambales. Pablo. Gonzales
RONQUILLO V. CA [132 S 274] - can be directly sued by a 3rd party-- this will
Clearly then, by the express term of the result in a violation of the principles
compromise agreement and the decision underlying solidary obligations and
based upon it, the defendants obligated insurance contracts.
themselves to pay their obligation
"individually and jointly." The term RCBC V. CA [178 S 739] - Where an
"individually" has the same meaning as obligation expressly states a solidary liability
"collectively," "separately," "distinctively," the concurrence of 2 or more creditors or 2
"respectively" or "severally." An agreement or more debtors in one and the same
to be "individually liable" undoubtedly obligation implies that each of of the former
creates a several obligation, and a "several has a right to demand, or that each one of
obligation" is one by w/c one individual the latter is bound to render, entire
binds himself to perform the whold compliance w/ the prestation (Art. 1207.)
obligation. The creditor may proceed against any one of
The phrase juntos or separadamente the solidary debtors or some or all of them
used in the promissory note is an express simultaneously.
statement making each of the persons who
signed it individually liable for the payment
of the full amount of the obligation QUISIMBING V. CA [189 S 325] -
contained therein. In the absence of a Joint obligation distinguished from solidary
finding of facts that the defendants made obligations; Concept of active solidarity--
themselves individually liable for the debts Distinguing it from the joint obligation,
incurred they are each liable only for 1/2 of Tolentino makes the ff. observation: A joint
said amount. The obligation in the case at obligation is one in w/c each of the debtors
bar being described as "individually and is liable only for a proportionate part of the
jointly," the same is therefore enforceable debt, and each creditor is entitled only to a
against one of the numerous obligors. proportionate part of the credit. A solidary
obligation is one in w/c each debtor is liable
for the entire obligation, and each creditor is
MALAYAN INSURANCE V. CA [165 S entitled to demand the whole obligation.
536] - The direct liability of the insurer Hence, in the former, each creditor can
under indemnity contracts against third- recover only his share of the obligation, and
party liability does not mean that the insurer each debtor can be made to pay only his
can be held solidarily liable with the insured part; whereas, in the latter, each creditor
and/ or the other parties found at fault.-- may enforce the entire obligation, and each
While it is true that where the insurance debor may be obliged to pay it in full.
contract provide for indemnity against The same work describes the
liability to 3rd persons, such 3rd persons can concept of active solidarity thus: The
directly sue the insurer, however, the direct essence of active solidarity consists in the
liability of the insurer under the indemnity authority of each creditor to claim and
contracts against third party liab. does not enforce the rights of all, w/ the resulting
mean that the insurer can be held solidarily obligation of paying every one what belongs
liable w/ the insured and/ or the other to him; there is no merger, much less a
parties found at fault. The liab. of the renunciation of rights, but only mutual
insurer is based on contract; that of the restitution.
insured is based on tort.
In the case at bar, petitioner as
insurer of Sio Choy, is liable to respondent REPUBLIC PLANTERS BANK [216 S
Vallejos, but it cannot, as incorrectly held by 738] - An instrument w/c begins w/ "I,"
the trial court, be made "solidarily" liable w/ "WE" or "Either of us" promise to pay, when
the 2 principal tortfeasors, namely signed by two or more persons, makes them
respondents Sio Choy and San Leon Rice solidarily liable. The fact that the singular
Mill, Inc. For if petitioner-insurer were pronoun is used indicates that the promise is
solidarily liable w/ said 2 respondents by individual as to each other; meaning that
reason of the indemnity contract, against each of the co-signers is deemed to have
3rd party liaibility-- under w/c an insurer
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 18
Zambales. Pablo. Gonzales
made an independent singular promise to
pay the notes in full.
In the case at bar, the solidary Cases:
liability of private resp. F. Canlas is made 1. Debtor upon whom demand was
clearer and certain, w/o reason for made pays to a creditor other than the one
ambiguity, by the presence of the phrase who made the demand in violation of Art.
"joint and several" as describing the 1214.-- This is considered payment to a
unconditional promise to pay to the order of third person (Art. 1241, par. 2) and the
Republic Planters Bank. xxx debtor can still be made to pay the debt. The
only concession given to the debtor is that he
CERNA V. CA [220 SCRA 517] - Only is allowed to deduct the share of the
Delgado singed the p/n and accordinly, he receiving creditor from the total amount due
was the only one bound by the contract of even if he paid the entire amount due to that
loan. Nowhere did it appear in the p/n that creditor.
petitioner was a co-debtor. The law is clear
that "(c)ontracts take effect only between the 2. Creditor A makes demand on
parties xxx" But by some stretch of the debtor Y. Does it mean that he cannot pay
imagination, petitioner was held solidarily the share pertaining to creditor B?
liable for the debt allegedly bec. he was a co- According to commentators he can. But this
mortgagor of the principal debtor, Delgado. is dangerous bec. there may already be an
This ignores the basic precept that "(t)here is agreement on the part of the creditors.
solidary liability only when the obligation
expressly so states, or when the law or the 3. There are three creditors -- A, B
nature of the obligation requires solidarity. & C and there are three debtors -- X, Y & Z.
A makes a demand on Y. X pays B. This is
Art. 1212. Each one of the not covered by Art. 1214.
solidary creditors may do
whatever may be useful to the
others, but not anything which Art. 1215. Novation,
may be prejudicial to the latter. compensation, confusion or remission of
the debt, made by any of the solidary
***There is an apparent conflict bet. Art. creditors or with any of the solidary
1212 and 1215. Art. 1212 states that the debtors, shall extinguish the obligation,
agency extends only to things w/c will without prejudice to the provisions of
benefit all co-creditors. But not anything article 1219.
w/c is prejudicical to the latter. In Art. The creditor who may have
1215, he can do an acts prejudicial to the executed any of these acts, as well as he
who collects the debt, shall be liable to
other creditors, like remission for instance. the others for the share in the obligation
corresponding to them.
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 21
Zambales. Pablo. Gonzales
event which constitutes the If the uncertainty consists in
condition. whether the day will come or not, the
obligation is conditional, and it shall be
*** A condition is a future and uncertain regulated by the rules of the preceding
Section.
event upon w/c an obligation or provision
is made to depend. Futurity and
uncertainty must concur as characteristics Kinds of Conditional Obligations
of the event.
*** A past thing can never be a condition. A (i) Condition precedent
condition is always future and uncertain.
Art. 1187. The effects of a
conditional obligation to give, once the
Past event unknown to the condition has been fulfilled, shall
parties.-- It is really the knowledge of retroact to the day of the constitution of
the event w/c constitutes the future. It the obligation. Nevertheless, when the
is the knowledge w/c is future and obligation imposes reciprocal
prestations upon the parties, the fruits
uncertain. For example, when I say " I and interests during the pendency of the
will treat you for lunch if you get the condition shall be deemed to have been
highest score in the Civil Law Final mutually compensated. If the obligation
Exams (on the assumption that our is unilateral, the debtor shall
professor has already finished checking appropriate the fruits and interests
received, unless from the nature and
the papers.)" Here, the event (getting circumstances of the obligation it should
the highest score) is already a past event, be inferred that the intention of the
yet the knowledge is future and person constituting the same was
uncertain. different.
In obligations to do and not to
do, the courts shall determine, in each
Condition compared to a term.-- case, the retroactive effect of he
As to element of futurity, condition and condition that has been complied with.
element are the same. They differ in the
aspect of certainty-- a condition is ***This article refers to suspensive
uncertain whereas a term is certain. condition. This article sets forth the rule of
retroactivity in an obligation to give. This
Conditions can either be: rule is logical but impractical. Many modern
1. Suspensive condition Civil Codes have discarded it.
No Retroactivity as to the Fruits.--
(condition precedent) wherein the Notice that there is no retroactivity with
happening of the event gives birth to an respect to the fruits. The fruits are deemed
obligation to cancel out each other. If only one of the
2. Resolutory condition thing produces fruits, there is no obligation
(condition subsequent) wherein the to deliver the fruits.
happening of the event will extinguish
the obligation. (ii) Condition subsequent
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 22
Zambales. Pablo. Gonzales
As for obligations to do and not
to do, the provisions of the second Mixed Condition is one w/c depends
paragraph of article 1187 shall be partly upon the will of one of the parties and
observed as regards the effect of the partly on either chance or the will of a third
extinguishment of the obligation.
person.
Art. 1187. xxx In obligations to
do and not to do, the courts shall Q: What if the condition is suspensive,
determine, in each case, the retroactive potestative and depends solely on the will of
effect of the condition that has been the creditor, is the conditional obligation
complied with. valid?
NOTE : Art. 1190 refers to resolutory A: Yes. In fact, the obligation is not even a
conditions. This is just the opposite of condition obligation. It is a pure obligation,
Art. 1189. binding at once.
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 24
Zambales. Pablo. Gonzales
the choice may be made by a third person is liable to indemnify the creditor for
upon agreement of the parties. damages.-- Art. 1204.
Art. 1201. The choice shall Art. 1204. The creditor shall
produce no effect except from have a right to indemnity for damages
the time it has been when, through the fault of the debtor, all
communicated. the things which are alternatively the
object of the obligation have been lost,
Requirement of Communication of choice.-- or the compliance of the obligation has
If the choice belongs to the creditor, of become impossible.
course, he has to communicate his choice to
the debtor. The indemnity shall be fixed
Q: If the choice belongs to the debtor, why taking as a basis the value of the last
require communication before performance thing which disappeared, or that of
if the choice belongs to him anyway? the service which last became
A: To give the creditor an opportunity to impossible.
consent to the choice or impugn it. (Ong v. Damages other than the
Sempio-Dy, 46 P 592.) BUT how can the value of the last thing or service may also be
creditor impugn it if the choice belongs to awarded.
the debtor. The better reason would be to
give the creditor a chance to prepare for the d. If some things are lost
performance. through the debtor's fault,
the debtor can still choose
Articles 1202 to 1205 talk of the loss from those remaining.
of some of the prestations before
performance. e. If all are lost through
fortuitous event, the obligation is
1. If the choice is debtor's extinguished.
Art. 1202. The debtor shall lose g. If all but one are lost
the right of choice when among through the fault of the
the prestations whereby he is debor and the last one was
alternatively bound, only one is lost through fortuitous
practicable. event, the obligation is
extinguished.
b. If the choice is limited
through the creditor's own acts, the 2. Choice is the creditor's
debtor can ask for resolution plus
damages.-- Art. 1203 Art. 1205. When the choice has
been expressly given to the
Art. 1203. If through the creditor, the obligation shall
creditor's acts the debtor cannot make a cease to be alternative from the
choice according to the terms of the day when the selection has
obligation, the latter may rescind the been communicated to the
contract with damages. debtor.
________________________________________________________________________
WARNING: Unauthorized Reproduction of this material is strictly prohibited. ©2007
San Beda College of Law-Alabang Alabang Hills Village, Muntinlupa City
John Michael U. Zambales: (0920) 617-4954; balez_2223@yahoo.com
Homer L. Pablo: (0928) 502-7405, (0917) 334-9831; homerlopezpablo@yahoo.com
Nil Ryan Gonzales: (0920) 536-4309, (0906) 488-5216 : nil_ryan17@yahoo.com
OBLIGATIONS & CONTRACTS 25
Zambales. Pablo. Gonzales
(1) If one of the things is lost Art. 1206. When only one prestation has
through a fortuitous event, he been agreed upon, but the obligor may
shall perform the obligation by render another in substitution, the
delivering that which the obligation is called facultative.
creditor should choose from
among the remainder, or that
The loss or deterioration of
which remains if only one the thing intended as a substitute, through
subsists; the negligence of the obligor, does not
(2) If the loss of one of the render him liable. But once the substitution
things occurs through the fault has been made, the obligor is liable for the
of the debtor, the creditor may loss of the substitute on account of his delay,
claim any of those subsisting, negligence or fraud.
or the price of that which,
through the fault of the former, Distinguished from Alternative.--
has disappeared, with a right to
damages;
(3) If all the things are lost 1. As to contents of the obligation:
through the fault of the debtor, In the alternative, there are various
the choice by the creditor shall prestations all of w/c constitute parts of the
fall upon the price of any one of obligation; while in facultative, only the
them, also with indemnity for principal prestation constitutes the
damages. obligation, the accessory being only a means
to facilitate payment.
The same rules shall be applied
to obligations to do or not to do
2. As to nullity: In alternative
in case one, some or all of the
prestations should become
obligations, the nullity of one prestation
impossible. does not invalidate the obligation, w/c is still
in force w/ respect to those w/c have no vice;
a. If one or some are lost through while in facultative, the nullity of the
fortuitous event, the creditor may choose principal prestation invalidates the
from those remaining.-- Art. 1205 (1), supra. obligation and the creditor cannot demand
the substitute even when this is valid.
b. If one or some are lost through
the debtor's fault, the creditor has choice 3. As to choice: In alternative, the
from the remainder or the value of the right to choose may be given to the creditor;
things lost plus damages.-- Art. 1205 (2), while in facultative, only the debtor can
supra. choose the substitute prestation.
Art. 2147. The officious manager shall Art. 1306. The contracting parties may
be liable for any fortuitous event: establish such stipulations, clauses,
(1) If he undertakes risky operations terms and conditions as they may deem
which the owner was not accustomed to embark convenient, provided they are not
upon; contrary to law, morals, good customs,
(2) If he has preferred his own interest public order, or public policy.
to that of the owner;
(3) If he fails to return the property or Aleatory Contract (ex. Insurance
business after demand by the owner; contracts)
(4) If he assumed the management in
bad faith. Art. 2010. By an aleatory contract, one
of the parties or both reciprocally bind
Solutio Indebiti themselves to give or to do something in
consideration of what the other shall
Art. 2159. Whoever in bad faith accepts give or do upon the happening of an
an undue payment, shall pay legal interest if event which is uncertain, or which is to
a sum of money is involved, or shall be liable occur at an indeterminate time.
for fruits received or which should have been
received if the thing produces fruits. Article 1170. Supra.
He shall furthermore be answerable for
any loss or impairment of the thing from any
cause, and for damages to the person who
delivered the thing, until it is recovered.
Common Carrier
Mora solvendi
Mora accipiendi