OBLIGATIONS:

What: Juridical Necessity to give, to do or not do.

Juridical Necessity court can order the performance if the debtor does not fulfill
*If unenforceable, it may be disregarded with impunity
REQUISITES:
1. Active Subject creditor
2. Passive Subject debtor
3. Object/Prestation subject matter (give, do or not do)
4. Efficient Cause juridical tie which binds the parties

Civil Obligation based on positive law; enforceable in court

Natural Obligation based on natural law (equity and moral justice); unenforceable in

(1)
(2)

court

Sources of Obligation
1. Law (a) rule of conduct; (b) just and obligatory; (c) laid down by legitimate authority;
(d) for common observance and benefit
obligations are not presumed;
only those expressly determined in the civil code or in special laws are demandable
2. Contracts (a) Meeting of Minds (MOM); (b) One party binds himself to give
something or to render a service
have the force of law between the contracting parties
should be complied with in good faith
3. Quasi-contracts (a) Lawful, Voluntary and Unilateral acts giving rise to juridical
relation; (b) one shall not but unjustly enriched at the expense of another
a. Negotiorum Gestio voluntary administration without anothers consent or
authority
o Creates obligation to reimburse necessary and useful expenses
b. Solutio Indebiti payment by mistake of an obligation which was not due
o Creates obligation to return payment
*examples: pp. 4-6
Nature and Effect of obligations
Definitions:
1) Determinate particularly designated or physically segregated from all others of the
same class
2) Generic it is not particularly designated or physically segregated from all others of
the same class

*Rule of thumb: Loss of a determinate thing through a fortuitous event extinguishes the
obligation.
Obligations obligor to give: Determinate thing
1. To take care of the thing w/ diligence of a good father of a family or another standard
of care
2. To deliver the thing
3. To deliver fruits
a. Natural fruits Trees that grow naturally on the soil; Colt delivered by mare;
*For the young and other products of animals, natural fruits even with the intervention of
human labor

b. Industrial fruits produced by land of any kind through cultivation or labor (Ex. rice,
corn and other crops)
c. Civil fruits result of a juridical relation (Ex. rent of a building, price of lease of
land)
*Creditor has right to fruits from the time obligation to deliver arises. (But no real right)
Real right right enforceable against the world
Personal right right enforceable against a person
** Obligation to deliver arises: (1) From perfection or (2) upon arrival of the term of the
fulfillment of the condition
4. To deliver accessions and accessories
a. Accessions everything that is produced by a thing or is incorporated or attached
thereto, either naturally or artificially
b. Accessories joined to or included with the principal thing for the latters better
use
Remedies of the creditor
When debtor fails to perform obligation to
1. Deliver determinate thing
a. Compel the debtor to make delivery
2. Deliver generic thing
a. Ask that the obligation be complied with at the expense of the debtor
3. Do
a. (contravention of the tenor of the obligation) Have the obligation executed at the
expense of the debtor
b. (does it poorly) Have it undone at the expense of the debtor
4. Not do what is forbidden
a. Demand that what has been done be undone
**AT ALL INSTANCES: Demand damages from the debtor
*** Right to involuntary servitude: _________________________________________________

Specific Circumstances affecting obligations in general

1.)
2.)
3.)
4.)

Fraud
Negligence
Delay or Mora
Fortuitous Event

Definitions:
Damages harm done and the sum of money recoverable
a. Actual/Compensatory value of the loss suffered and the profits not realized
b. Moral human injury, physical/mental/emotional
c. Nominal damages to vindicate a right
d. Temperate/Moderate more than nominate but less than compensatory; may be
recovered if pecuniary loss is proven but amount is uncertain
e. Liquidated agreed upon by the parties in case of breach
f. Exemplary/Corrective imposed by way of example or correction for public good
*Proof of pecuniary loss
Actual damages required unless provided by law
Other damages not required; assessment is left to the discretion of the court
depending on the circumstance
Injury wrongful, unlawful or tortuous act; legal wrong to be redressed.
Grounds for liabilities to pay damages (4)
1. Fraud (1) deliberate or intentional evasion of the normal compliance of his obligation;
(2) fraud committed at the time of the performance of the obligation
a. According to meaning
i.
Fraud in obtaining consent
a) Causal Fraud/Dolo causante Consent would not have been given;
VOIDABLE
b) Incidental Fraud/Dolo incidente Consent is still given but different
terms; Valid BUT WITH DAMAGES
ii.
Fraud in the performance of the obligation
a) Contract is Valid BUT WITH DAMAGES; no effect on validity of
contract
b. According to time of commission
i.
Future fraud waiver cannot be made
ii.
Past fraud waiver is allowed
2. Negligence omission of the diligence required by and corresponds with (1) the nature
of the obligation; (2) the circumstance of the person, time and place.
*Test of negligence if person used reasonable care and caution which an
ordinary person would use
**GENERAL RULE: Diligence of a good father of a family

a. Culpa Contractual (contractual negligence) Negligence in the performance of the

contract *Master-servant rule DOES apply*
b. Culpa Aquiliana (civil negligence/tort) acts/omissions that cause damage or harm;
NO CONTRACTUAL RELATION *Master-servant rule DOES NOT apply*
c. Culpa Criminal (criminal negligence) Negligence which results in the commission
of a crime;
3. Delay or Default or Mora non-fulfillment of an obligation with respect to time.
a. Mora Solvendi Delay of DEBTOR
a. Ex re Real obligations
b. Ex persona Personal obligatons
b. More Accipiendi Delay of CREDITOR; refuses to accept with justifiable reason
c. Compensatio Morae - Both are in default
GENERAL RULE: Debtors delay is from the time creditor demands fulfillment of the
obligation; debtor fails to comply
Requisites of delay:
a. Debtor does not perform on due date
b. Creditor demands performance
c. Dr. does not comply with demand
Exceptions to above requisites:
a. Law provides
b. Obligation expressly so declares
c. Time is of the essence
d. Demand would be useless
e. Reciprocal obligations (Sale)
Effects of delay:
a. Liable for the payment of damages
b. Responsible for any fortuitous event until delivery effected

4. Fortuitous Events Could not be foreseen; Inevitable; Impossible to foresee or avoid

Elements:
a. Must be independent of debtors will
b. Impossibility of foreseeing the event; unavoidable if able to foresee
c. Render it impossible for the debtor to perform obligation in normal manner
Liability for fortuitous events:
a. GENERAL RULE: No person shall be liable for fortuitous events; Obligation
extinguished
Exception:
a. Law expressly provides for liability
b. Parties have declared liability
c. Nature of obligation requires assumption of risk

Burden of proving loss due to fortuitous event:

a. Rests on him who invoked it; He must have not committed no negligence or
misconduct that may have occasioned the loss.
5. Presumptions on receipt of principal or of later installment (Art. 1176)
a. Without reservation as to interest INTEREST HAS BEEN PAID
b. Without reservation as to prior installments PRIOR INSTALLMENTS HAVE
BEEN PAID
6. Remedies of creditor to enforce payment of claims against Dr.
a. Property in the possession of the DR, except those exempt by law
b. Exercise all rights and brill all the actions of the DR, except personal
c. Impugn acts which DR may have done to defraud creditors (accion pauliana)
ii. Must be done as a last resort
7. Rule on transmissibility of rights exceptions thereto
a. GENERAL RULE: All rights acquired in virtue of an obligation are transmissible
b. Exceptions:
ii. Law Prohibits
iii. Parties agreed against transmissibility
iv. By nature not transmissible

Different kinds of obligations

1.) Pure
2.) Conditional
3.) With a period
4.) Alternative
5.) Facultative
6.) Joint
7.) Solidary
8.) Divisible
9.) Indivisible
10.)
With a Penal Clause
1.) Pure Obligation Without a term or condition; demandable at once
2.) Conditional Obligation Demandability or extinguishment depends upon the
happening of a condition
Condition:
- Uncertain event; Influences a legal relationship
- Types

a. Suspensive happening gives rise to obligation; Condition antecedent/Condition

precedent
b. Resolutory happening extinguishes an obligation; Condition Subsequent
c. Potestative depends upon the will of the contracting parties
i. Part of the debtor
- Suspensive VOID
- Resolutory VALID
ii. Part of the Creditor
- Suspensive and Resolutory - VALID
d. Casual Depends upon chance OR upon the will of a third person
e. Possible capable of fulfillment in its nature and by law
f. Impossible not capable of fulfillment in its nature or due to operation of law
i. if condition is not to do an impossible thing deemed demandable at once
g. Positive some event WILL happen at a determinate time; obligation extinguished
when time expire OR inevitable that it will not happen
h. Negative some event will NOT happen at a determinate time;
3.) Divisible capable of partial performance (one thing is demandable per condition met)
4.) Indivisible not capable of partial performance by its nature or by law (both
conditions must be met)
Effect of fulfillment of suspensive condition
- GENERAL RULE: Retroacts to the day of the constitution of the obligation
- Exceptions:
a. Reciprocal Obligations fruits & interest received prior to fulfillment of condition
b. Unilateral Obligations debtor keeps F&I before fulfillment of condition
-

Rights of the parties before fulfillment of the condition

Creditor: Bring appropriate actions for the preservation of his right
Debtor: Recover what he has paid by mistake

Debtor voluntarily prevents fulfillment of condition, Effects:

Condition deemed fulfilled
Immediately demandable

Loss, Deterioration or Improvement of determinate thing before fulfillment of

Suspensive Condition
- Loss: Perishes; Goes out of commerce; Existence is unknown; cannot be recovered
a. w/o Debtors fault extinguished
b. w/ Debtors fault damages
-

Deterioration of the thing

a. w/o Debtors fault impairment borne by creditor

b. w/ Debtors fault
i. Rescission + damages
ii. Fulfillment + damages
- Improvement of the thing
a. by Nature or by Time inure to the benefit of the creditor
b. Expense of the debtor right of a Usufructuary; remove improvement IF no damage is
done
Rules in case fulfillment of RESOLUTORY condition
- Obligation is extinguished
- Return to each other what they have received
- In case of loss, deterioration or improvement, rules ABOVE apply
-

Reciprocal Obligation
Arises from the same cause
Each party is a debtor and a creditor of the other
Obligation (1) is dependent upon Obligation (2)
To be performed SIMULTANEOUSLY
Remedies of injured party in Reciprocal Obligation
a. Rescission + Damages
b. Fulfillment + damages
*Cannot ask for both
5.) Obligations with a Period demandability/extinguishment is subjected to the
expiration of a term which must necessarily come
a. Suspensive effect (EX DIE)
b. Resolutory effect (IN DIEM)
Concept of Period and Day Certain
a. Period space of time which determines the effectivity or extinguishment of an
obligation
b. Day Certain must necessarily come although it may noe be known when
Period VS. Condition
a. As to fulfillment
i. Condition may or may not happen
ii. Period must necessarily come
b. As to time
i. Condition future or past
ii. Period future only
c. As to influence on the obligation
i. Condition arise or cease
ii. Period fixes the time for the efficaciousness of an obligation
d. As to the will of the debtor
i. Condition may or may not happen

ii. Period must necessarily come

Period: Kinds
a. Ex die Suspensive effect; demandable upon the lapse of the period
b. In Diem Resolutory effect; extinguished upon the lapse of the period
c. Legal Fixed by law
d. Voluntary Fixed by the parties
e. Judicial Fixed by the court
Presumption: Who benefits from the period?
- Both the Creditor and Debtor
- EXCEPTIONS:
a. Debtor only no compel; perform before expiration AT HIS OPTION
b. Creditor only no compel; demand before expiration AT HIS OPTION
Debtor loses benefit of period, Creditor may demand immediate payment
a) Insolvent, unless guarantee is given
b) Fails to furnish the guarantees or securities promised
c) Impairs said guaranties or securities on his own acts, or thru fortuitous events they
disappear, unless equally satisfactory is given
d) Violates any undertaking in consideration
e) Attempts to abscond