Académique Documents
Professionnel Documents
Culture Documents
expense of another.
TITLE I
OBLIGATIONS
CHAPTER 1
GENERAL PROVISIONS
Quasi-Delicts (quasi-maleficio)
Whoever by act or omission causes damage
to another, there being fault or negligence, is
obliged to pay for the damage done, if there is
no pre-existing contractual relation between
the parties (culpa aquiliana).
I - The Obligation
A.
Concept of Obligation
1
2
3
A.
Elements of Obligation
(1) an active subject, who has the power to demand the prestation,
known as the obligee or creditor;
(2) a passive subject, who is bound to perform the prestation,
known as the obligor or debtor;
(3) an object or the prestation; and
(4) the juridical tie or vinculum juris
CHAPTER 2
NATURE AND EFFECTS OF OBLIGATIONS
There are three kinds of prestations in obligations:
to give
to do
not to do
I - Obligations To Give
A.
A.
The creditor may compel the debtor to make the delivery. (1165 par.
1)
A.
The creditor may ask that the obligation be complied with at the
expense of the debtor. (1165 par. 2)
II - Obligations To Do
6
Concept
10
When a debtor fails to comply with his obligation, the creditor may
avail himself of the following remedies:
(1) an action for specific performance
(2) an action to rescind the obligation
(3) an action for damages, exclusively or in addition to
either of the first two actions
4
5
V - Damages
11 Those who in the performance of the obligations are guilty of fraud,
negligence, or delay, and those who in any manner contravene the
tenor thereof, are liable for damages. (1170)
Modes of Breach
1170. Those who in the performance of their obligations are guilty of
fraud, negligence, or delay, and those who in any manner contravene the
tenor thereof, are liable for damages. (1101)
A.
12
13
B.
C.
Delay is incurred from the time the obligee juridically or extrajuridically demands the fulfillment of the obligation. There can be
delay only in obligations to give and obligations to do.
Kinds:
Exceptions
CHAPTER 3
DIFFERENT KINDS OF OBLIGATIONS
1
Section 1
PURE AND CONDITIONAL OBLIGATIONS
I -- Pure Obligations
A.
Constructive Fulfillment
The condition shall be deemed fulfilled when the obligor voluntarily
prevents its fulfillment. (1186)
Classification of Conditions
(a)
(b)
Requisites:
Suspensive
condition or
condition
precedent - the happening of the condition
gives rise to the obligation
Resolutory or condition subsequent - the
happening of the condition extinguishes
rights already existing
(2)
(a) Potestative - depends upon the will of one of
the contracting parties
(a-1) Simple potestative - presupposes
not only a manifestation of will but also
the realization of an external act (If
you sell your house)
(a-2) Purely Potestative - depends solely
and exclusively upon the will (If I
like)
-- a purely potestative suspensive
condition is void (1182)
(b)Causal - depends exclusively upon chance or
upon the will of third
persons and not upon
the will of the contracting parties.
Mixed- depends not only upon the will of the
debtor but also upon chance or the will of
others (1183)
Creditor
1
(3)
B.
Debtor
1
Definition of Terms
(1) Loss - a thing is lost:
(a) when it perishes
(b) when it goes out of the commerce of man
(c) when it disappears in such a manner that its
existence is unknown or it cannot be
recovered
(2) Deterioration - any reduction or impairment in the
substance or value of a thing which does not amount to
loss
(3) Improvement - anything added to, incorporated in, or
attached to a thing that is Due
C.
VI - Retroactivity (1187)
A.
(3)
(4)
(5)
(6)
Section 2
OBLIGATIONS WITH A PERIOD
I - The Term or Period
A.
Concept of Term
3
A.
Obligations to give
B.
Kinds
(1)
(a)
(b)
C.
(1) When after the obligation has been contracted, the debtor
becomes insolvent, unless he gives a guaranty or security
for the debt;
(2) When the debtor does not furnish to the creditor the
guaranties or securities he has promised;
(3) When by his own acts the debtor 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;
II - Effects
A.
Presumption
1
Section 3
ALTERNATIVE OBLIGATIONS
I - Plurality of Objects
B.
II - Alternative Obligations
A.
D.
The courts may fix the term if from its nature and
circumstances it can be inferred that a period was
intended.
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 the parties.
E.
B.
Effect
1
C.
The choice shall produce no effect except from the time it has
been communicated. (1202)
Right to Damages
(1) Debtor
1
If through the creditors act the debtor cannot make
a choice according to the terms of the obligation,
the latter may rescind the contract with damages.
(1203)
(2) Creditor
o
has a right to damages when through the fault of
the debtor all the
things which are alternatively the object of the
obligation have been lost, or the compliance of the
obligation has become impossible.
D.
E.
C.
A.
When the choice has been expressly given to the creditor, the
obligation shall cease to be alternative from the day when the
selection has been communicated to the debtor.
Until then the responsibility of the debtor shall be governed by
the following rules:
(1) If one of the things is lost through a fortuitous event, he
shall perform the obligation by delivering that which the
creditor should choose from among the remainder, or
that which remains if only one subsists;
(2) If the loss of one of the things occurs through the fault of
the debtor, the creditor may claim any of those
subsisting, or the price of that which, through the fault of
the former, has disappeared, with a right to damages.
(3) If all the things are lost through the fault of the debtor,
the choice by the creditor shall fall upon the price of any
one of them, also with indemnity for damages.
1
I - Joint Obligations
Concept
3
4
Section 4
B.
Effects
(1) The demand by one creditor upon one debtor, produces
the effects of default only with respect to the creditor
who demanded and the debtor on whom the demand was
made, but not with respect to the others.
(2) The interruption of prescription by the judicial demand
of one creditor upon a debtor does not benefit the other
creditors nor interrupt the prescription as to the other
debtors.
(3) The vices of each obligation arising from the personal
defects of a particular debtor or creditor does not affect
the obligation or rights of the others.
(4) The insolvency of a debtor does not increase the liability
of his co-debtors, nor does it authorize a creditor to
demand anything from his co-creditors.
B.
II - Solidary Obligations
A.
Concept
1
(9) If the thing has been lost or if the prestation has become
impossible, and there was fault on the part of any one of
the co-debtors, or if through fortuitous event, the thing is
lost or the performance has become impossible after one
of the solidary debtors has incurred in delay, all shall be
responsible to the creditor, for the price and payment of
damages and interest, without prejudice to their action
against the guilty. (1221)
Active Solidarity
A solidary creditor cannot assign his rights without the
consent of the others (1213)
The debtor may pay any one of the solidary creditors; but if
any demand, judicial or extra-judicial, has been made by
one of them, payment should be made to him. (1214)
(3) Novation, compensation, confusion or remission of the
debt, made by any of the solidary creditors or with any
of the solidary debtors shall extinguish the obligation.
1
C.
D.
The creditor who may have executed any of these acts, as well
as he who collects the debt, shall be liable to the others for the
share in the obligation corresponding to them. (1215)
Passive Solidarity
(1) The creditor may proceed against any one of the solidary
debtors or some or all of them simultaneously. The
demand made against one of them shall not be an
obstacle to those which may subsequently be directed
against the others, as long as the debt has not been fully
collected. (1216)
Section 5
DIVISIBLE AND INDIVISIBLE OBLIGATIONS
I - Divisible and Indivisible Obligations
A.
B.
Distinction
3
Things to Consider
1
Section 6
OBLIGATIONS WITH A PENAL CLAUSE
I - The Penal Clause
Chapter 4
A.
Concept
EXTINGUISHMENT OF OBLIGATIONS
GENERAL PROVISIONS
The creditor cannot recover more than the penalty stipulated, even if
he proves that the damages suffered by him exceed the amount of
such penalty.
The principal obligation may be joint, and yet the penalty may
either be joint or solidary, depending upon the agreement of the
parties.
What is Payment?
Payment means not only the delivery of money but also the
performance, in any other manner, of the obligation (1232)
3
The creditor cannot demand the fulfillment of the
obligation and the satisfaction of the penalty at the same
time, unless this right has been clearly granted him.
B.
C.
Creditor
(1)
(2)
B.
Debtor
D.
Rule
(1) Should be in the currency which is legal tender in the
Philippines
(2) Promissory notes payable to order, or bills of exchange
or other mercantile documents shall produce the effect of
payment only when:
(a) they have been cashed
(b) when through the fault of the creditor they
have been impaired
B.
Extra-Ordinary Circumstances
1
The third person who pays may demand from the debtor what
he has paid, except that if he paid without the knowledge or
against the will of the debtor, he can recover only insofar as
the payment has been beneficial to the debtor. (1236) But as
between the debtor and the creditor, the obligation is
extinguished.
V.
8
C.
Subsection 1
APPLICATION OF PAYMENTS
Requisites:
The debtor must have:
various debts ; and
(1) of the same kind
(2) due and demandable
(3) in favor of one and the same creditor
Payment made to the creditor by the debtor after the latter has
been judicially ordered to retain the debt shall not be valid.
(1243)
Invalid Payment
2
The third person who paid against the will of the debtor without the
knowledge or against the will of the latter cannot compel the
creditor to subrogate him in his rights (1237)
7
B.
Rules of Application
(1) Declaration of the debtor to which of them payment
must be applied.
If the debtor makes a proper application of the
payment, but the creditor refuses to accept it because he wants
to apply it to another debt, such creditor will incur in delay.
(2) Creditor can also make an application of payment by
Subsection 2
PAYMENT BY CESSION
Concept
The assignment gives to the creditors the right to proceed to the sale
of the property, and to pay themselves in the amount which
the proceeds of the sale permit and in the manner agreed upon.
Requisites
(1) debtor is on the verge of insolvency; and
(2) he has two or more creditors
C.
(2)
(3)
(4)
Subsection 3
TENDER OF PAYMENT AND CONSIGNATION
I - Concepts
A.
Tender of Payment
B.
Consignation
F.
The obligation having been extinguished by the loss of the thing, the
creditor shall have all the rights of action which the debtor may
have against third persons by reason of the loss (1269)
The following cases constitute exceptions to the rule that loss of the
determinate object by fortuitous event extinguishes the obligation:
Section 2
(1) When the law provides it (1174). (Ex: Arts. 1492; 1979;
2147; 2159)
(2) When it is stipulated
Concept of Loss
B.
C.
Requisites
(1) Loss must be subsequent to the execution of the contract.
(2) Loss must be without the fault of the debtor.
(3) Loss must be before the debtor has incurred in delay.
Scope
2
D.
Section 3
CONDONATION OR REMISSION OF THE DEBT
I - Condonation
A.
(2) As to extent
(a) total
(b) partial - may refer to the amount of the
indebtedness, or to an accessory obligation
only (such as pledge or interest), or to some
other aspect of the obligation (such as
solidarity)
Temporary Impossibility
(1) Does not extinguish the obligation if temporary obstacles
to the performance of the prestation may be expected to
disappear in the near future.
(2) Extinguishes the obligation if the obstacle is of an
unknown or unforeseen duration. The obligation is
extinguished and is not revived by the fact that it
becomes possible later when circumstances change.
E.
Presumption
(3) As to manner
(a) inter vivos - effective during the lifetime of
the creditor
(b) mortis causa - effective upon the death of the
creditor
-- must be contained in a
will or a testament
II - Applicable Rules
A.
Express Remission
D.
Benefits
B.
(2)
(3)
Section 5
COMPENSATION
I - Compensation
A.
Concept of Compensation
14
15
B.
Section 4
Requisites
10
B.
Implied Remission
(1) The delivery of a private document evidencing a credit,
made voluntarily by a creditor to the debtor, implies
remission. (1271 par. 1)
(1)
Causes of Merger
C.
Several Debts
1
II - Kinds of Compensation
A.
Legal
2
But where the creditor inherits from the debtor, there can be no
confusion if the debt is for a sum of money, because the debt is not
transmitted to the heir under our present law.
C.
Revocation of Merger
12
B. Facultative Compensation
3
V - Prohibition of Compensation
Compensation shall not be proper when:
C. Conventional Compensation
4
D.
Judicial Compensation
NOVATION
1
I - General Principles
A.
Concept of Novation
2
B.
C.
Requisites
(1) Previous valid obligation
(2) The agreement of all the parties to the new contract
(3) The extinguishment of the old contract.
(4) The extinguishment of the old contract
(5) The validity of the new one
4
(2) If the debtor does not consent, and the credit assigned to
a third person matures after that which pertains to the
debtor, the debtor may set up compensation provided
that the credit of the debtor became due before the
assignment.
Classification of Novation
(1) As to Form
(a) Express - the extinguishment of the old
obligation by the new one must be declared
in unequivocal terms
(3)
B.
Conventional Subrogation
3
C.
Partial Payment
4
The initiative for the change does not emanate from the debtor
and may even be made without his knowledge, since it
consists in a third person assuming the obligation. It logically
requires the consent of the third person and the creditor.
TITLE II
CONTRACTS
CHAPTER 1
GENERAL PROVISIONS
In expromision, the new debtors insolvency or nonfulfillment of the obligation shall not give rise to any liability
on the part of the original debtor. (1294)
I - General Principles
A.
The new debtor can recover only insofar as the payment has
been beneficial to the old debtor. In this case, there is no
subrogation.
Concept of Contract
5
Delegacion
1
The new debtor could demand from the old debtor what he has
paid. Subrogation takes place.
B.
Characteristics of Contracts
C.
Limitations
6
Legal Subrogation
2
D. Stages of A Contract
A.
Expromision
1
B.
A.
II - Third Persons
(1)
A.
(2)
Determination of performance
7
B.
Effects
(1)
(2)
(3)
C.
B, Ineffectivity
The law permits the offeror to withdraw the offer at any time before
acceptance
(1) If there is a fixed period, the offeree may accept at
anytime until such period expires. However, the offer
can be withdrawn even before the period for acceptance
has expired.
(2) When the offeror has not fixed a period,
C.
III - Acceptance
CHAPTER 2
ESSENTIAL REQUISITES OF CONTRACTS
A.
Concept
The person making the offer may fix the time, place, and manner of
acceptance all of which must be complied with.
B.
11
II - Offer
A.
Requisites
plurality of subjects
capacity
intelligence
express or tacit manifestation of the will
conformity of the internal will and its manifestation
V - Vitiated Consent
3
4
B. Kinds
A contract where consent is given through mistake, violence,
intimidation, undue influence, or fraud is voidable.
A.
Scope
C.
B. Burden of Proof
1
D.
Error of Law
D.
Concept of Simulation
4
Violence
(1) physical force employed must be irresistible
(2) such force is the determining cause in giving the consent
to the contract
B.
(2)
Requisites
A.
VI - Mistake
(1)
B.
Intimidation
(1) the intimidation must have caused the consent to be
given
(2) the threatened act be unjust or unlawful
(3) the threat be real and serious
(4) produces a reasonable and well-grounded fear that the
threat can and will be carried out
VIII - Fraud
A.
Concept
Kinds
Effects
(1) Absolutely simulated - void
(2) Relatively simulated - valid provided that:
(a) it does not prejudice third persons
(b) not intended for any purpose contrary to law,
morals, good customs, public order, or public
policy
(c) concealed contract must have all the essential
requisites such as consent, object, and cause.
5
Section 2
OBJECTS OF CONTRACTS
C.
I -- The Object
A. Concept of Object
6
B.
CAUSE OF CONTRACTS
I - The Cause
A.
B.
Requisites
Concept
8
A.
Onerous Contracts
7
B.
9
C.
Remuneratory Contracts
8
II - Impossible Things
B.
Concept
A.
Requisites of Object
(1) within the commerce of man
(2) licit, or not contrary to law, morals, good customs,
public policy, or public order at the time the contract
entered into
(3) it must be possible
(4) it must be determinate or determinable as to its kind; the
quantity may be indeterminate, so long as the right of the
creditor is not rendered.
C.
Partial Impossibility
Gratuitous Contracts
10
I - General Principles
A.
Requisites
(1) there must have been a meeting of the minds upon the
contract
12
B.
CHAPTER 3
FORM OF CONTRACTS
I - General Principles
A.
General Rule
III - No Reformation
(1) Simple donations inter vivos wherein no condition is
involved
(2) Wills (subject to the exception in Art 789)
(3) When the real agreement is void
II - Public Documents
The following must appear in a public document:
(1)
(2)
(3)
(4)
1
IV - Procedure
(1) Governed by the rules promulgated by the Supreme
Court
(2) When one of the parties has brought an action to enforce
the instrument, he cannot subsequently ask for its
reformation.
(3) If mistake was mutual, reformation may be ordered at
the instance of either party or his successors in interest.
(4) In other cases, upon petition of the injured party, or his
heirs and assigns.
CHAPTER 5
INTERPRETATION OF CONTRACTS
(1)
(2)
(3)
(13) The written portion prevails over the printed portions of a policy.
(14) Where the intention of the parties relative to the objects of the
contract cannot be known, the contract shall be null and void.
(1)
(2)
(3)
(4)
(5)
(6)
CHAPTER 6
RESCISSIBLE CONTRACRTS
I - General Principles
A.
Concept of Rescission
3
B.
D.
How Attacked
4
E.
Prescriptive Period
5
6
F.
Requisites
(1) The contract must be a rescissible contract.
(2) The party asking for rescission must have no other legal
means to obtain reparation for the damages suffered by
him. (The action for rescission is subsidiary.)
(3) The person demanding rescission must be able to return
whatever he may be obliged to re if rescission is granted.
(4) The things which are the object of the contract must not
have passed legally to the possession of a third person
acting in good faith.
(5) The action for rescission must be brought within the
prescriptive period of four years.
(6) Rescissible contracts must be attacked directly, not
collaterally
(7) A valid contract can be rescinded only for cases
established by law.
C.
Effects of Rescission
CHAPTER 7
VOIDABLE CONTRACTS
I - General Principles
A.
Concept
1
B.
Voidable Contracts
2
Prescriptive Period
III - Damages
3
4
E.
Effects of Annulment
By Defendant
If lost through his fault, he shall return the fruits received and
the value of the thing at the time of the loss, with interest
from the same date.
If lost through fortuitous event, he shall pay the value of the
thing at the time of its loss but without interest.
CHAPTER 8
UNENFORCEABLE CONTRACTS
Concept
An unenforceable contract is one which cannot be enforced unless it
is first ratified in the manner provided by law. It is
distinguished from the rescissible and the annullable contracts
in that the latter two contracts produce legal effects unless
they are set aside by a competent court, while the
unenforceable contract does not produce any effect unless it is
ratified.
The Unenforceable Contracts
Those entered into in the name of another person by one who
has been given no authority or legal representation, or
who has acted beyond his powers.
Those that do not comply with the Statute of Frauds.
Requisites
Ratification extinguishes the action to annul a voidable contract. It may
either be express or implied.
Ratification, to be effective, must comply with the following requisites:
That the contract is a voidable contract
That ratification is made with knowledge of the cause for
nullity
That at the time the ratification is made, the cause of nullity
has already ceased to exist
Who May Ratify?
injured party
guardian of the incapacitated person
heirs of the party entitled to such right
Effects
Extinguishes the action to annul a voidable contract
Cleanses the contract from all its defects
TITLE III
NATURAL OBLIGATIONS
I - Types of Obligations
In juridical science, four types of obligations can be known:
Moral - duties of conscience completely outside the field of
law
Natural - not sanctioned by any action but have a relative
juridical effect
Civil - juridical obligations which are in conformity with
positive law but are contrary to juridical principles and
susceptible of being annulled.
Mixed - have full juridical effect
Enforceability
For contracts entered into within the Statute of Frauds to be
enforceable, a note or memorandum , in writing, and subscribed by the
party charged, or by his agent, evidence thereof, of the agreement is
needed.
Ratification
Jurisprudence has reduced this classification into only two: natural and
civil.
Concept
Natural obligations are midway between the civil obligations and the
purely moral obligations. Civil obligations are enforceable by
action, while moral obligations rest entirely upon conscience. It is
distinguished from the moral in that it produces some juridical
effect; such as the right to retain what has been voluntarily paid by
the debtor; and from the civil in that it does not give rise to an
action to compel performance.
TITLE IV
ESTOPPEL
Concept
Estoppel is a bar which precludes a person from denying or asserting
anything to the contrary of that which has, in contemplation of law,
been established as the truth, either by the acts of judicial or
legislative offices or by his own deed or representation, either
express or implied.
However, if the act, conduct or representation of the party sought to be
estopped is due to ignorance founded on innocent mistake, estoppel
will not lie.
Estoppel is effective only as between the parties thereto or their
successors in interest.
Requisites
Reliance
Prejudice
C Kinds
Estoppel by Record
Estoppel by Deed
Estoppel In Pais (Equitable Estoppel
Estoppel by Silence
Estoppel by Acquiescence
Laches
Estoppel From Benefits