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Delict Quasi-delict
Obligation Criminal or malicious intent Negligence only
[1156] – a juridical necessity to give, to do or not to or criminal negligence
do For punishment For indemnification
Public interest Private interest
Elements Criminal and civil liability Civil liability only
1. Passive subject (Obligor/Debtor)
- person bound to fulfill obligation
Classifications
2. Active subject (Obligee/Creditor)
- person who can demand fulfillment
3. Object (Prestation) Pure – not subject to a condition or period
- conduct to be observed by parties Conditional – depends on a future event
Real obligations – to give
With a period
Personal obligations – performance
– some space or time suspends demandability
Positive – to do
or produces extinction of the obligation
Negative – not to do
Simple – one prestation
Joint – obligation prorated among the parties
Multiple – many prestations Solidary – each party is entitled to the entire
Conjunctive – all are due and demandable obligation but the party shouldering the
Distributive – one or some must be performed entire obligation may demand
Alternative – only one of the several reimbursement from the others
Facultative – prestation due may be
substituted by another Divisible – may be partially performed
Indivisible – cannot be partially performed
4. Juridical tie (Vinculum Juris)
With a penal clause
Kinds
– an accessory undertaking (dependent upon
some other obligation to exist) to assume
Enforceability Basis greater liability in case of breach
Civil Court action Positive law
obligations Determinate – individualized or specified
Natural Conscience of Equity and Generic – referred by the class, kind or genus
obligations debtor natural justice
Unilateral – one debtor and one creditor
Sources Bilateral – reciprocal obligations
1. Law [1158] 1. both obligation arise from same source
2. each prestation is equivalent to the other
2. Contracts [1159] 3. performance of one is conditioned to performance
- stipulation of the parties of the other
3. Quasi-contracts [2142]
- lawful, voluntary and unilateral acts which
Individual – unipersonal
are enforceable to the end that no one shall
be unjustly enriched at the expense of another Collective – plurapersonal
1. Joint
2. Solidary
Negotiorum gestio [2144]
– voluntary management of the property
of another without the knowledge or Accessory – existence depends on another
consent of the latter Principal – can stand alone
Extinguishment of Obligations
[1231] (Payment or Performance, Loss or Impossibility, Condonation
3. Object (solutio)
or Remission, Confusion or Merger, Compensation, Novation) What is to be paid?
- the thing or service or abstention due
- debtor cannot compel the creditor to receive a
Payment or Performance different one
- in generic obligations, the thing paid must be
- carrying out of an obligation of the quantity and quality specified
- delivery of the money due - the legal tender in the Philippines includes all
- requires acceptance of the creditor notes and coins issued by he Central Bank
- debtor has burden of proving payment - payment by check or other negotiable
instruments shall only produce the effect of
1. payor (solvens) 4. manner (integrity) payment when they have been cashed
2. payee (accipiens) 5. time
3. object (solution) 6. place
7. expenses of making payment 4. Manner (integrity)
How is payment made?
- payment must be complete
1. Payor (solvens) - no partial payment is allowed except:
1. in case of express stipulation
Who can pay? 2. the debt it in part liquidated and in part
- debtor or his duly authorized agent unliquidated
- debtor’s heir or successor in interest (privy) 3. in case of compensation
- any person interested in the fulfillment 4. several guarantors invoke the benefit of
whether the debtor consents to it or not, and division
even without the debtor’s knowledge [1302] 5. debtor dies, each heir answers only for
- a third person not interested but the creditor his share
is not bound to accept payment by him [1236] 6. when work is to be done by parts
1. Consent Classification
2. Object
1. Subject matter
3. Cause
Things
2. Natural Services
– presumed to exists unless the contrary is stipulated
3. Accidental 2. Name
– exists only when stipulated
Nominate – law gives the contract a special name
Innominate [1307] – no special name
Characteristics
1. Obligatory force [1308] Do ut des – I give so that you may give
- obligations arising from contract have the
force of law between the contracting parties Do ut facias – I give so that you may do
- compliance in good faith is the observance of Facio ut facias – I do so that you may do
the standards of loyalty, fairness and diligence Facio ut des – I do so that you may give
required by society
2. Mutuality [1308-1310] 3. Perfection
- must bind both contracting parties and the
performance shall not be left to the will of one Consensual [1315] – consent is sufficient
3. Relativity Real [1316] – delivery is required
- contracts take effect only between the parties,
their assigns and heirs [1311] 4. Degree of Dependence
- no one may contract in the name of another Preparatory – contract based on future transaction
[1317]
Principal – contract may exist alone
Parties Accessory – depends upon some other contract
1. Auto-contracts
- one contracts with himself 5. Form
- valid because the existence of a contract Common/Informal - loan
is not determined by the number of persons Special/Formal – law requires formalities
who intervene but by the number of parties
2. Freedom to contract
6. Purpose
- the right to enter into contracts
Transfer of Ownership
Special disqualifications: Conveyance of Use
- spouses are disqualified to donate or sell to each Rendition of Services
other [1490]
- guardian; property of his ward 7. Parties obligated
- agents; property entrusted to them unless there is
consent of the principal Unilateral – only one party is bound
- executors and administrators; property under Bilateral – both parties are bound to reciprocal ones
administration
- public officers and employees; property of the state 8. Cause
- justices, judges, prosecuting attorneys, clerks or
superior and inferior courts and other officers and Onerous – exchange of correlative values
employees connected with the administration of Gratuitous – no correlative prestation
justice; property in litigation
9. Risk
Limitations: Commutative – fulfillment is predetermined
1. contrary to law Aleatory – fulfillment is dependent upon chances
Pactum commissorium [2088]
- appropriate things given by way of
pledge or mortgage – VOID! Stages
1. Preparation
Pactum leonina [1799] - negotiations are in progress
- stipulation which excludes one or more
2. Perfection
partners from any share in the profits or
- parties come to an agreement
losses – VOID!
Promise Offer
Perfect Promise - proposal made by one party to
- tends only to assure and pave the way for the
another to enter into a contract
celebration of a contract in the future
- rights and obligation not yet determined - a promise to act or to refrain from
Imperfect Promise (policitacion) acting on condition that the terms
- a mere unaccepted offer thereof are accepted
- must be certain [1319]
Third Persons - may fix time, place and manner of
1. Stipulations pour autrui [1311] acceptance [1321]
- stipulation in a contract clearly and deliberately - offer made through an agent is
conferring a favor upon a third person who has a
right to demand its fulfillment provided he
accepted from the time acceptance is
communicates his acceptance to the obligor before communicated [1322]
its revocation - offer becomes ineffective upon
e.g. Katz owes Yen 10 pesos at 2% death, civil interdiction, insanity,
interest. Yen owes Cuayo 2 pesos. They
agreed that the 2 peso interest will be paid
insolvency before acceptance is
by Katz directly to Cuayo. Cuayo shall conveyed [1323]
communicate his acceptance before Yen - business advertisement of things for
revokes the stipulation por autri. sale are not definite offers but mere
2. Contracts creating real rights [1312] invitations to make an offer [1325]
- third persons who came into possession of the
object of a contract over which there is a real
- advertisement for bidders are mere
right are bound thereby even if they were not invitations to make proposals [1326]
parties to the contract
- real right is binding against the whole world and Acceptance
attaches to the property over which it is
exercised wherever it goes
- must be absolute [1319]
e.g. Katz owes Yen 1M pesos and she
mortgaged a parcel of land as a security. Express
Katz then sold the same land to Cuayo. - oral or written acceptance
Cuayo is then bound by the contract
between Katz and Yen since the mortgage Implied
followed the parcel of land. - inferred by the conduct of the offeree
3. Entered into to defraud creditors [1313]
- creditor has the rights to impugn contracts of his Qualified
debtor intended to defraud them - constitutes a counter-offer
e.g. Katz owes Yen 1M. Katz’ only
remaining property is a house. She then
sold the house to Cuayo in order that Yen - if acceptance is made by letter or
may not attach the house to the payment telegram, it does not bind the offerer
of her debt. Yen, who is a stranger to the except from the time it came to his
contract between Katz and Yen, may ask
the rescission of the sale.
knowledge
4. Violated at the inducement of a third person - when the offerer has allowed the
[1314] offeree a certain period to accept, the
- stranger can be sued for damages for his offer may be withdrawn at any time
unwarranted interference with the contract before acceptance by communicating
e.g. Katz agreed to sell her laptop to Yen. such withdrawal [1324]
If Katz sells her laptop to Cuayo instead
because of his inducement, Yen can sue
for damages. Contract of option [1324]
- one giving a person a certain period within
which to accept the offer of the offerer
Essential Requisites of Contracts - separate and distinct from the contract which
[1319] (Consent, Object, Cause) will be perfected upon the acceptance
Dolo causante
Absolute – contract does not really exist and 2. statement of a false cause, unless
the parties do not intend to be bound at all – there is another true and valid cause
VOID! [1346]
[1353]
- parties bound by the true and valid
Relative – contract entered into by the cause if there is any
parties is different from their true agreement
3. lesion or inadequacy of cause [1355]
- apparent contract is VOID but hidden contract
- any damage cause by the fact that
is VALID
the price is unjust or inadequate
- lesion does not invalidate a contract
Natural Obligations
Estoppel
- based on equity and natural law, not positive
law, and do not grant right of action to - an admission or representation is rendered
enforce their performance [1423] conclusive upon the person making it, and
cannot be denied or disproved by him as
Natural Obligations Civil Obligations against the person relying thereon [1431]
Based not on positive law but on Arise from law, contracts, quasi- Technical Estoppel
equity and natural law contracts, delicts and quasi 1. by record or judgement (res
delicts judicata)
2. by deed, mortgage or bond
Do not grant right of action to Give a right of action to compel
enforce performance their performance Equitable Estoppel
1. by express representation
2. by silence
- when right to sue upon a civil obligation has 3. by laches
lapsed by extinctive prescription, the obligor
who voluntarily performs the contract cannot - estoppel is effective only as between the
recover what he has delivered or the value of parties thereto or their successors in interest
the service he has rendered [1424] even if one party is a minor [1439]
e.g. Katz owes Yen 10 pesos. After 10 years,
the debt prescribed for failure of Yen to file the
necessary action to recover the same. If Katz, On the party estopped:
even if she knew that the debt has already 1. conduct amounting to false representation or
prescribed, paid Yen 10 pesos, she cannot concealment of material facts
recover it anymore. 2. intent or expectation that this conduct shall be acted
upon by the other party
- when a third person pays the prescribed 3. knowledge of the truth
debt of the debtor, without the latter’s knowledge
or against his will, he is not obliged to On the party invoking estoppel:
reimburse the former [1425] 1. lack of knowledge and means to ascertain the truth
2. reliance upon the conduct of the party estopped
- when a minor between 18 and 21 years old 3. action or failure to act so as to change his position
entered a contract without the consent of the prejudicially
parent or guardian, and the contract was later 4. prejudice unless estoppel is applied
on annulled, and the minor voluntarily returns
the whole thing or price received, there is no - when a person who is not the owner of a
right to demand the thing or price returned thing sells and delivers it, and later the seller
[1426] acquires title thereto, the title by operation of
- when a minor between 18 and 21 years old law passes to the buyer [1434]
entered a contract without the consent of the - when a person in representation of another
parent or guardian, voluntarily pays a sum of sells a thing, the former cannot set up his
money or delivers a fungible thing in own title against the buyer [1435]
fulfillment of the obligation, there shall be no - the lessee or bailee is estopped from
right to recover the same from the obligee asserting title to the thing leased or received
who has spent or consumed it in good faith [1436]
[1427] - when in a contract between third persons
- if after the action to enforce a civil obligation concerning immovable property, one of them
has failed, the debtor still voluntarily paid the is misled by a person with respect to the
creditor, the former cannot demand the return ownership or real right over the real estate,
of what he has delivered [1428] the person who misrepresented cannot assert
- when the heir voluntarily pays a debt of the his legal title or interest [1437]
decedent exceeding the value of the property
- one who has allowed another to assume - when property is sold, and the legal
apparent ownership of personal property for estate is granted to one party but the
purpose of making any transfer of it cannot, if price is paid by another for the
he received a pledge, set up his own title to purpose of having the beneficial
defeat the pledge [1438] interest of the property; if the person
to whom the title is conveyed is a
child, legitimate or illegitimate, of the
one paying the price of the sale, no
trust is implied by law, it being
disputably presumed that there is a
gift in favor of the child [1448]
- when a donation is made to a
person but it appears that although the legal
estate is transmitted to the donee, he
Trusts nevertheless is either to have no
beneficial interest or only a part
thereof [1449]
- a fiduciary relationship with respect to - price of a sale of property is loaned
property, subjecting the person holding the or paid by one person for the benefit
same to the obligation of dealing with the of another and the conveyance is
property for the benefit of another person made to the lender or payor to secure
- separation of the legal title from the the payment of the debt, a trust
beneficial title arises by operation of law in favor of
- differs from a stipulation pour autrui in that a the person to whom the money is
trust refers to a specific property loaned or for whom its is paid [1450]
- differs from a condition in that - when land passes by succession to
accomplishment of the latter is not any person and he causes the legal
enforceable, but performance of a trust is title to be put in the name of another,
enforceable a trust is established by implication of
- differs from guardianship in that the trustee law for the benefit of the true owner
has legal title to the property [1451]
- if two or more persons agree to
Parties [1440] purchase property and by common
1. Trustee consent the legal title is taken in the
- one who hold the property in trust
2. Trustor name of one of them for the benefit
- one who establishes or created a trust of all, a trust is created by force of
3. Beneficiary law in favor of the others in
- person for whose benefit property is held for proportion to the interest of each
by the trustee [1452]
- when property is conveyed to a
Express Trust
person in reliance upon his declared
- created by assent of the parties
intention to hold it for, or transfer it
Implied Trust to another or the grantor, there is an
- created by law implied trust in favor of the person
1. Resulting trust
whose benefit is contemplated [1453]
- imposed by law to carry out the
actual or presumed intent of the - absolute conveyance of property is
parties, where express trust fails made in order to secure the
2. Constructive trust performance of an obligation of the
- established by law regardless of
grantor toward the grantee, a trust by
intention, in order to prevent fraud,
oppression or unjust enrichment virtue of law is established [1454]
- when any trustee, guardian or other
person holding a fiduciary relationship
Express trusts uses trust funds for the purchase of
- cannot be proved by parol evidence property and causes the conveyance
[1443] to be made to him or to a third
- no particular words required as long person, a trust is established by
as a trust is clearly intended [1444] operation of law in favor of the
person to whom the funds belong [1455]
Implied trusts - if property is acquired through
- may be proved by oral evidence mistake or fraud, the person
[1457] obtaining it is, by force of law,
considered a trustee of an implied trust for
the benefit of the person from whom the
property comes [1456]