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Legal obligations are not presumed. They must be clearly set forth in the law to be
demandable. Why? Because obligations imposed by law, just like any other
obligations sourced from other sources are burdens upon the debtor.
2. CONTRACTS - when they arise from the stipulation of the parties. It may also be
referred to as CONTRACTUAL OBLIGATIONS or VOLUNTARY AGREEMENTS.
Contract is the meeting of the minds between two (2) persons whereby one binds
himself, with respect to the other, to give something or to render some
service.(Art. 1305)
Obligation arising from contracts have the force of law between the
contracting parties. They have same binding effect of a legal obligation. Does
this mean that contract is superior to the law? NO. Take note that for a contract to
be valid, it must not be against the law, morals, good customs, public order and
public policy. Otherwise, contract is invalid. In the eyes of the law, there is no
contract to speak of. Consequently, no obligation will arise.
If a party to the obligation violates the contract by one’s failure or refusal to comply
with his obligation, said party shall be liable for breach of contract. Parties to the
obligation are mandated to comply in good faith with the contract, i.e. they
comply or perform their contractual obligation on accordance with the
stipulations and terms of the contract or agreement.
Under the Civil Code, there two popular kinds of quasi-contracts, i.e. Negotiorum
Gestio and Solutio Indebiti.
Ex. House almost razed by fire but was prevented. Civil obligation to
reimburse expenses incurred for saving the house from being burned.
This creates a civil obligation on the part of the recipient to return the thing
mistakenly delivered.
Ex. Debtor pays Creditor more than the amount of his debt. Creditor must
return the excess.
Basis: Article 100 of the Revised Penal Code provides that “every person
criminally liable for an act or omission is also civilly liable for damages.”
Justification: Commission of a crime causes not only moral evil but also
material damage. However, there are crimes does not result to material damage
like contempt, insults to person of authority, gambling, violations of traffic
regulations, etc. In such cases, no civil liability can be enforced.
Scope of Civil Liability - (1) Restitution, (2) Reparation for the damage caused;
and (3) Indemnification for consequential damages. (Art. 104, RPC)
Ex. Carnapping. Civil liability includes: (1) To return the car or to pay its
value if it was lost or destroyed; (2) to pay for any damage caused to the
car; and (3) to pay such other damages suffered by as a consequence of
crime.
Requisites of Quasi-Delict
These articles speak of real obligations or the obligation to give or deliver a thing.
What are the different kinds of things?
What are the duties of the debtor in obligation to give a determinate thing?
The obligor has the INCIDENTAL duty to take care of the thing due with the
diligence of a good father of a family pending delivery.
EXN: Unless the law or the stipulation of the parties provides another
standard of care like slight or extraordinary diligence. In such a case, the
law or stipulation must prevail.
2) Deliver the fruits of the thing. (1164) - The creditor has a right to the
fruits of the thing from the time the obligation to deliver it arises. However, he
shall acquire no real right over it until the same has been delivered to him.
What are the different kinds of fruits being referred in the law?
(a) Natural fruits - the spontaneous products of the soil, and the young
and other products animals. Ex. grass, trees, plants on lands produced
without the intervention of human labor.
(b) Industrial fruits - produced by lands of any kind through
cultivation or labor. Ex. Sugar cane, vegetables, rice, all products of lands
Brough about by reason of human labor.
(c) Civil fruits - derived by virtue of juridical relations. Ex. Rents, price
of leases, perpetual or like annuities, royalties.
Why is the creditor accorded the right over the fruits of the thing?
- To secure and protect his interest should the debtor commit delay
in the performance of or fulfillment of his obligation.
Second part of Art. 1164 states that, he, pertaining to the creditor, shall
acquire no real right over it, the fruit of the thing, until the same has been
delivered to him. What do you mean by real right?
- Real right is the right or interest of a person over a specific thing
(ownership, possession, mortgage), without definite passive subject
against whom the right may be personally enforced.
Prior to the delivery of the thing, what then is the right of the creditor in
relation to the fruit of the thing?
- He may only exercise his personal right, i.e. to demand from the
debtor the fulfillment of the latter’s obligation to give, to do, or not to do.
What is an accession?
- fruit of a thing, addition to or improvements upon a thing (the
principal). Ex. House or trees on a land; rents of a building; air conditioner
in a car; profits or dividends accruing from shares of stocks.
What is an accessory?
- things joined to or included with the principal thing for the latter’s
embellishment, better use, or completion. Ex. Key of a house, frame of a
picture, bracelet of a watch, machinery in a factory, bow of a violin.
What are the duties of the debtor in obligation to give an indeterminate thing?
If a person obliged to do something fails to do it, the same shall be executed at his
cost.
The same rule shall be observed if he does it in contravention of the tenor of the
obligation. Furthermore, it may be decreed that what has been poorly done be
undone.
What are the three (3) situations contemplated in the article tantamount to breach
of an obligation to do?
What are the remedies of the creditor in the three (3) situations contemplated by
the article?
(1) If the debtor fails to comply with his obligation to do, the creditor has
the right to:
(a) have the obligation performed by himself, or by another,
unless personal consideration are involved (damages only), at the
debtor’s expense; and
(b) recover damages.
Can you compel the debtor by court order the performance of an obligation
to do that he fails to perform? No. A specific performance cannot be
ordered in a personal obligation to do because this may amount to
involuntary servitude which, as a rule, is prohibited under our
Constitution (Art. III, Section 18[2]).
When the obligation consists in not doing, and the obligor does what has been
forbidden him, it shall also be undone at his expense.
The obligation is fulfilled by not doing what is forbidden. The duty of the
obligor is to abstain from an act. Specific performance is not a remedy.
Those oblige to deliver or to do something incur in delay from the time the obligee
judicially or extrajudicially demands from them the fulfillment of their
obligation.
However, the demand by the creditor shall not be necessary in order that delay
may exist:
(2) when from the nature and the circumstances of the obligation it appears
that he designation of time when the thing is to be delivered or the service is to
be rendered was a controlling motive for the establishment of the contract; or
(3) when demand would be useless, as when the debtor has rendered it beyond
his power to perform.
In reciprocal obligations, neither party incurs in delay if the other does not
comply or is not ready to comply in a proper manner with what is incumbent
upon him. From the moment one of the parties fulfills his obligation, delay by the
other begins.
What is DELAY?
(1) Mora Solvendi - delay on the part of the debtor to fulfill his obligation
i.e. to give or to do.
(2) Mora Accipiendi - delay on the part of the creditor to accept the
performance of the obligation; and
No. In an obligation not to do, non-fulfillment may take place but delay is
impossible for the debtor fulfills his obligation by not doing what has been
forbidden him. Delay is incurred when there is failure to timely do a
positive act.
What are the requisites of delay or default by the debtor (mora solvendi)?
(2) failure of the debtor to perform his positive obligation on the date
agreed upon;
(3) demand (not merely a reminded or notice) made by the creditor upon
the debtor to comply with the obligation which demand may be either
judicial (complaint is filed in court) or extrajudicial (outside court, oral or
in writing); and
Delay of the obligor cancels the delay of the obligee and vice versa.
No default or delay on the part of both parties.
What are the instances when demand is not necessary to put the debtor in delay?
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.
What are the difference grounds for liability? i.e. which entitles the injured party
to damages. Results to voluntary breach of obligation as distinguished from
involuntary breach as provided by Art. 1174 on fortuitous event.
Ex. Contract of Lease - Lessee has the obligation to pay the rent
while the Lessor has the duty to maintain the peaceful possession
of lessee. Ejectment must be for a valid reason.
Fortuitous events are happening which are independent of the will of the
debtor and which makes the normal fulfillment of the obligation impossible.
Fortuitous event results to the breach (involuntary) of an obligation but, generally,
no civil liability will be attached.
(2) Acts of God - majeure or which are totally independent of the will of
every human being.
Both, FE and FM exempts the obligor from liability because both are
independent of the will of the obligor.
(1) the event must be independent of the human will or at least of the
debtor’s will;
(3) the event must be of such character as to render it impossible for the
debtor to comply with his obligation in a normal manner;
(4) the debtor must be free from any participation in, or the aggravation
of, the injury to the creditor, that is, there is no concurrent negligence on
his part.
To exempt the obligor from obligation, all the requisites must concur.
GR: A person is not responsible for loss or damage caused to another resulting
from the non-performance of his obligation due to fortuitous event. Obligation is
extinguished.
EXCEPTIONS:
(b) the debtor has promise to deliver the same (specific thing) to
two (2) or more persons who do not have the same interest.
(3) When the nature of the obligation requires the assumption of risk.
Here, risk of loss or damage is an essential element.
ARTICLE 1175.
What is Usury?