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Two kinds of Quasi Contracts:

What is Obligation? Negotiorum Gestio - voluntary administration of
property, business or affairs of another w/o his consent.
It is a juridical necessity to give to do or not to do
(prestations). Article 1156 Rule: Reimbursement of expenses to the gestor.
Note: The definition pertains to a civil obligation. Solutio Indebiti – Payment of a thing not due.
What is juridical necessity? Rule : Return the payment.( Art. 2154)
It means that the court may asked to order the 4. Acts or ommisions punishable by Law.
performance of the obligation, if the debtor fails to
comply. -Crimes and felonies.

What are the REQUISITES of obligation? - It could be deceit (sinadiya); fault (kapabayaan, not
*Active Subject (creditor/obligee)- party who has the
right to demand performance Rule : The offender will be civilly liable, ( payment of
material damage) w/c includes:
*Passive subject (debtor/obligor) – party who is obliged
to perform the obligation. *Reparation of damages – the price of the thing + its
sentimental value
*Prestation – the subject matter. Given.
Indemnification – pay other damages (e.g loss of the
*Efficient cause – The juridical tie. It may be any of the obligee (profit) that he fails to obtain bec. of the crime)
five sources of obligation.
Restitution – ibabalik iyong thing
What are the five SOURCES of obligation? Article
1158. Consequential damages

1. Law A. What if the person is acquitted in a criminal case?

Will he still be held CIVILLY LIABLE?
It is not presumed ;only those expressly
determined in the civil code or special laws are No. If the acquittal was bec. the person did not commit
demandable. the crime.

2. Contracts Yes. If the acquittal is bec. the person is insane. His

guardian will be liable, if they’re insolvent, the person
-meeting of minds between two persons, where himself.
one binds himself (the debtor) Art. 1305
Yes. If acquittal was due to a guilt not proven beyond
- enforceable, must be complied with good faith. reasonable doubt.
Art. 1159
What if the defendant dies?
-to be Valid : it should not be contrary to the
law, good customs, public order, policy. Rule: The heirs will be civilly liable.

3. Quasi- Contracts Who are exempted from criminal liability?

Gen. rule : No one shall be unjustly enriched at • Insane person,unless acted during a lucid
the expense of another. (Art. 2142) interval.
• >9 – 15 years old. Except if: (9-15 y/o) acted
- No meeting of minds with discernment.
- Enforceable when someone is unjustly • Acted under compulsion/irresistible force.
enriched. • Acted from impulse of fear.
5. Quasi – Delicts
• tort, culpa acquiliana Suspensive Period/Condition : During its arrival
• Acts,omissions w/c cause damage to another
What is the right of the creditor?
because of fault, negligience .
• (NO CONTRACT) Personal right : jus in personam

Nature and Effects of Obligations a. Right to demand the delivery of thing/fruits

<Obligation to give, TWO kinds:> Real Right : jus in re, power over a thing
(represents possession, ownership); acquire
Determinate thing - If the things can be physical once delivered.
segregrated or particularly designated from all others of
the same class. Can be identified by individuality. a. Right enforceable vs. the world

Indeterminate Thing - the opposite of determinate. What is the primary difference of the two rights?
Identified by its specie.
Personal right is enforceable in one specific
What are the Obligations of the debtor in giving a person (the debtor) ; real right has no definite
determinate thing? passive subj. its enforceable against anyone.

*To take care of the thing w/ the diligence of a good *To deliver its accessions/accessories even if
father of a family. (Art. 1163) they have not been mentioned.

*to deliver the thing What is accessions & accessories?

*to deliver the fruits of the thing Accesions : naturally artificially attached, for
improvements. Di naman totally kailangan.
*To deliver its accessions/accessories even if they have
not been mentioned. Accessories: added for better use. It is
necessary for the principal, they should go
Lets dig in further: together. It follows the principal.
Three requisites of standard of care: What are the remedies of the creditor once the debtor
1. Law 2. Stipulation 3. Diligence of a good father. fails to deliver a determinate thing?

What is the diligience of a good father? 1. To compel the debtor to make the delivery
2. To demand damages from the debtor.
What are the fruits?
*compel : force/oblige
1. Natural fruits – spontaneous products of the
soil,young, and product of animals. What are the remedies of the creditor once the debtor
2. Industrial Fruits – produced by land thru fails to deliver a generic thing?
cultivation and labor. 1. To ask the obligation be complied with at
3. Civil fruits- result of a juridical relation e.g the expense of the debtor.
rent, lease etc.) 2. To demand damages
When will the creditor acquire right to the fruits? What are the remedies of the creditor once the debtor
A.1164 The creditor has the right to the fruits of fails to perform his obligations to do?
the thing when the time the obligation to deliver 1. Creditor may have the obligations be executed at
it arises. the expense of the debtor
2. Also demand damages

When will the obligation to deliver it arises? What if the debtor performs the obligation but does it
Pure Obligation: Perfection of contract
1. Be undone @ debtors expense Future Fraud – waiver of an action cannot be made.
2. Also demand damages
Past Fraud – waiver of an action can be made.
What if the debtor does what has been forbidden him?
What is Negligience?
1. Be undone @ debtors expense
2. Demand damages It’s the omission of deligience required by nature of
obligation. (carelessness, inattention,abandonement –
What are the things committed w/c is liable for How to say that a person commit negligience?
damages? (FNDC)
Reasonable foresight of harm. Followed by the ignoring
1. Fraud of the admonition born of this provision is the constitute
2. Negligience fact of negligience.
3. Delay - Alam mong may mangyayaring masama
4. Contravention to the tenor thereof pero hindi ka nag-ingat o tinuloy mo pa rin.
Article 1170. Damages What are the 3 kinds of negligience?
What is the concept of damages? Negligience commited in:
a. Culpa Contractual – may kontrata
It is the harm done. The SUM OF MONEY that may be Rule : Master-servant rule (the negligience of the
recovered employee is the negligience of the employer) both are
liable for damages.
What is Fraud?
b. Culpa- acquillana :quasi-delict
It is the deliberate or intentional evasion by the debtor Rule : The servant is only liable for damages
of the normal compliance of his obligation. c. Culpa-criminal : results in commission of crime.
(e.g culpa criminal vs. physical injuries thru
What are the kinds of Fraud? reckless imprudence)
Causal Fraud/ dolo causante – contract voidable. If Rule :
fraud is not done, the consent wouldn’t have been given. Contractual : Culpa contractual + culpa criminal
(pumayag lang dahil niloko mo) Quasi-delict : Culpa Acquillana + culpa criminal

Rule : Contract Voidable

Incidental Fraud/Dolo incidente – If fraud is not done,
the terms given will be different. ( better iyong nakuha Non-fulfillment of the obligation w/ respect to time.
mo kasi nag-fraud ka); though u will be still given the
consent. What are the kinds of delay?

Rule : Contract valid. Pay for damages a. Mora solvendi – delay on the part of the creditor.
(ex re : delay in real ; ex persona : delay in
Fraud in the performance of the contract personal)
Fraud committed in the delivery of the thing. (e.g b. Mora accipiendi – delay on part of the creditor
nilagyan mo ng chalk iyong powdered soap na When the creditor refuses to accept the thing due.
Rule : Pay for the damages. c. Compensatio morae – delay in reciprocal oblig.

The contract cannot be void bec. It already took effect What is reciprocal obligations?
during the perfection, nalaman mo nalang iyong fraud Both parties are on delay, it is as if there is no delay.
ng dineliver na ‘yong thing.
When does the debtor incurs delay? How can you prove that fortuitous event exist?
Gen. rule : The creditor incurs delay from the time the It will be layover to the one who invokes it.
creditor demands its fulfillment, and debtor fails to
comply. Consideration:

Will delay exist even without demand? The debtor should not committed negligience or
misconduct that may have resulted the loss.
YES. If :
What are the presumptions if you have the receipt of
a. Law provides (e.g tax) principal or later installment?
b. Stipulation declares ( w/o need of demand)
c. Time is of the essence (time is the controlling Receipt of principal : interest paid
motive) Rationale : Principal cannt be paid, if interest is
d. Demand would be useless (thing destroyed or not yet covered.
deliver to other person)
e. Reciprocal obligations (fr. The moment one of Later installment : previous ones paid
the parties fulfills the obligation, the delay on the
What are the remedies of the creditor to enforce the
other arise, e.g time of sale – no need to demand)
payment of his claims against the debtor? (Obligations to
Common sense : there is no delay in obligations not to give payment.)
The remedies should be successive.
Whats the effect of DELAY?
a. Pursue all property (except those exempted by
Rule: law)
b. Accion subrogatoria : exercise the rights and
a. The debtor shall be liable for the payment of bring all actions of the debtor.
b. If the thing is determinate, and in case there’s a Example : A owes D. D owes E. E could file in court
fortituitos event, he shall be responsible. (note : that A should not pay D, but instead the payment will
delay is exempted for fortuitous event to be given to him.
c. Impugn the acts, w/c the debtor may have done
What is fortuitous event? to defraud his creditors.

It is an events that cannot be foreseen, or though Ex. If A owes D. And to defraud D, A sold his only
foreseen are inevitable. property to B. (to make him as if insolvent). D may ask
the court to order the rescission of the sale made by A.
- It is impossible for the debtor to perform his Later, the property will be sell in public auction and all
obligation. ( wala nang magagawa) proceeds will be to A.
- The cause must be independent of the
debtors will. ( walang kinalaman si debtor)
Whats the rule for fortuitous events? Are rights TRANSMISSIBLE?

Gen. rule : no one shall be responsible for fortuitous Gen. rule: All rights are transmissible. ( to heirs, third
events. person)

Exceptions: Exceptions:

a.Law ( delay, bad faith) a. Law prohibits (gen. partner)

b. Stipulated
b. Stipulation c. By nature not transmissible (e.g scholarship)
c. By nature
3. OBLIGATION W/ A PERIOD Q. What if the suspensive condition fulfilled?
5. FACULTATIVE OBLIGATIONS Gen. Rule: The effect of the fulfillment of the
6. JOINT OBLIGATION obligation retroacts to the day of the
7. SOLIDARY OBLIGATION constitution.
8. DIVISIBLE OBLIGATION -Once nangyari na ‘yong condition, the obligation is
9. INDIVISIBLE OBLIGATION treated as if it existed during its constitution,
10. OBLIGATION W/ A PENAL CLAUSE though the fruits and interest will just compensated
the day the condition happened.
What is Pure Obligations?
Q. What are the rights of the parties before the
It is an obligation without a term/condition fulfillment of the condition?
Demandable @ once, during the perfection of the
contract. Creditor : preserved his right, by registering his
claim/ informed debtor for a security when the
What is conditional obligations? debtor is insolvent.
Debtor : Recover what he has paid by mistake. (e.g
The demandability/extinuishment of the obligation
nagbayad na siya kahit di pa due date.)
depends upon the happening of the condition.
Future, uncertain, past but unknown. A. What if the debtor doesnt want to comply with his
What are the classifications of obligation?
Rule: Obligation become immediately demandable.
a. Resolutory : the obligation will be extinguish
when the condition already existed. A. What if the thing is loss,deteriorate,improved before
b. Suspensive : oblig. arise when the condition the occurrence of the suspensive condition?
Positive : Extinguished – when the event did not (Art. 1189)
happen ‘til the expiration of the said LOSS of the thing
date/impossible to happen
c. Negative : Obligation exist : when the event did a. w/o debtors fault : extinguished
not happen until the expiration date/impossible b. debtors fault : pay damages
to happen.
d. Divisible : capable of partial performance, for an
obligation were the others are invalid, the part a. w/o debtors fault : impairment borne by creditor
w/c are possible and legal is valid. b. debtors fault : Creditor may choose- Rescission +
damages/Fulfillment + damages
e. Indivisible : x capable of partial performance by
nature, law and stipulation Improvement of the thing
f. Potestative: condition depends upon the will of a. By nature : inure by debtor
one of the contracting parties b. Debtor’s expense : debtor has rights of
Which is void, valid? usufructuary
Potestative(debtor) Potestative
Q. What is usufructuary?
RESOLUTORY (creditor)
SUSPENSIVE • Debtor could enjoy the use of the thing
Potestative impossible
Chance illegal
Involved the will of
third party
• He can remove the improvement, if it cannot Yes. When he attempts to abscond
damage the principal thing.
Consequence : Creditor may asked immediate payment
Q. What if the resolutory condition fulfilled?
What is alternative obligations?
• Extinguished
-Several prestations are due, but the performance of
• Parties shall return to each other what they have
one, extinguished the obligation.
• In case LDI happened art. 1189 applies Who has the right to choose the prestation?
Q. What are the remedies of the creditor for resolutory Rule : On debtor, unless stipulated that it is given to the
condition? creditor.
Rule: Fulfillment/ recission w/damages What are the limitations on the right to choose of the

Q. What is a period? 1. He should offer: Complete performance of

chosen prestation
Space of time w/c determines the effectivity or 2. Prohibits : unlawful, illegal, outside of the
extinguishment of the obligation. It is an interval of time subject prestation.
(future + certain)
When will the alternative obligation become simple?
Q. What are the kinds of period?
a. Choice is already communicated
a. Ex die : suspensive b. When only one prestations left
b. In diem: resolutory
c. Legal : period fixed by law Whats the rule if prestations are loss/impossible to
d. Voluntary : by parties make?
e. Judicial : fixed by court (e.g when the debtor will When the right of choice (DEBTOR)
comply if his means permit him to do so)
a. Kung may natira pa, ideliver iyong natira.
Who is benefited in the period?
b. All loss due to fortuitous event(w/o debtors
Presumption : Both creditor and debtor fault): extinguished
c. All loss , fortuitous event( debtors fault) : pay the
Creditor : interest amount of the last thing lost
Debtor : to accumulate the debt When the right of choce (CREDITOR)
They cannot be compelled to pay/accept the obligation a. Some loss (WDF)- creditor may choose his
as long as the period is not yet expired. preference
Could debtor lose to make use of the period? b. Some loss (DF) – creditor may claim any of the
subsisting or ; price of the lost ones + damages.
Yes. If he became insolvent and no security/ guaranty c. All lost (WDF) – extinguished
given. d. All lost (DF) – creditor may claim any of the price
of any prestations + damages
Yes. If he fails to furnish the guaranty he has promised.
Yes. If he guaratees impaired/loss due to fortuitous
event unless he gives new guaranty w/ equal What is facultative obligation?
One is due, but the debtor could render substitution.
Yes. Breach of contract.
What if the principal thing or substitute thing is loss ?
Rule : • The acceptance/payment of one of the
creditor/debtors should be reimbursed.
Before Substitution :
• The remission of debtor from an obligation will
Principal thing : not free him from responsible to his co-debtors
• The remission of the whole obligation granted to
(WDF) – EXTINGUISHED; (DF) – PAY DAMAGES a debtor, will not entitled him to reimburse that
Substitute : no effect to his co-debtors.
• One’s fault, evrybody’s fault
After Substitution: • If one or more solidary debtors offers to pay, the
creditor may choose who among them.
Principal thing : wala lang
• Solidary may exist even if creditors and debtors
Substitute: have various proportions,periods,conditions
• Solidarity should always do what might be
(WDF) – EXTINGUISHED; (DF) – PAY DAMAGES useful to the other.
When will the substitution took place? • A solidary creditor cannot assign his rights w/o
others consent.
When it is already communicated to the creditor. • The debtor whom the fulfillment is demanded
JOINT OBLIGATIONS should be the one to performed it.
• Indivisibility doesn’t mean solidarity.
What is joint obligations?
It’s the concurrence of two or more creditor and debtor
What is divisible obligations?
in one obligation.
• One capable of partial performace
GENERAL RULES (JOINT OBLIGATIONS) • Execution for certain number of days
• Each debtor is only liable for a proportionate • Accomplishment by metrical units
part of the debt, and each creditor is liable for • Analogous things (by nature)
proportionate part of the credit only.
• There is as may debts/credits as many equal • X capable of partial performance
shares as debtors and creditors. • Definite thing
• Insolvency or incapacity of one debtor will not • Said by law, stipulation
make others liable.
• Vitiated consent of one debtor will not make Q. What is Joint indivisible Obligation?
others liable. • Debtors and creditors are jointly bound bt the
• Default debtor by the demand of the creditor will prestation is indivisible. (di pwedeng maghati)
not affect others.
• All creditor should make the demand for it to be
Joint can be solidary if: effective. They can select representative.
• Be demanded to all creditors
a. Obligation expressly states • The renunciation of one creditor renounce his share
b. Law requires ( I promise to pay signed by only. The obligation be converted into monetary.
2/more persons) • If one of the debtor doesn’t comply, the obligation will
c. Nature be converted into monetary amount, divided by
debtors proportion.
GENERAL RULES (SOLIDARY OBLIGATIONS) • The insolvent debtor will still be liable to pay +
damages when his financial condition improves.
• All for one, one for all.
• If one of the debtors is insolvent the others are not
• Insolvency of one, will make others liable. liable.
OBLIGATIONS W/ A PENAL CLAUSE What is the effect of nullity of principal thing and
penal clause?
What is this obligation?
- The nullity of the principal thing with it
It is one w/c provides greater liability on the part of the the the penal clause.
debtor when he doesn’t comply. - The nullity of penal clause doent carry
The accessory to the principal thing is called : The penal with it the prinicipal thing.
clause NOTE : were talking about validity here.
Why is penal clause attached?
a. To ensure performance
b. To prevent breach
c. Provide liquidated damages
d. Substitute of interest and damages in case of NO-C0-ME-RE-PA-LO, PRE-RE-FUL-AN
non-compliance 1. Novation
2. Compensation
What are the kinds of penal clause?
3. Merge
A. Legal : by law 4. Remission
B. Conventional : agreement 5. Payment
C. Subsidiary : only one penalty can be enforced 6. Loss
D. Joint : Both can be enforced 7. Prescription
8. Remission
General Rules (Obligations w/ Penal Clause) 9. Fulfillment
• The penalty takes place the damages and 10. Annulment
interest in case of non-compliance. <PAYMENT>
• The fulfillment of performance + payment of
penalty is not demandable at the same time, if
the debtor is on default (delay)
When does payment occurs?
• The debtor cannot choose to pay the penalty to
extinguished the obligation, if he could still Performance of obligation + payment of money.
perform it.
General Rules in making a payment
• The delivered thing should be what is
• Aside fr. Penalty, Interest & damages may be contemplated.
demanded, if: • The debtor cannot compel the creditor to
o Stipulation declares accept a different thing even though the
o Debtor refuses to pay the penalty latter is better or more valuable.
o Fraud by debtor • In obligations to do, an act cannot be
substituted against the obligees will
Can the court reduced the penalty?
• The creditor cannot demand a thing with
Yes. If the obligations is partly complied superior quality, if the thing is
Yes. If the obligation is irregularly complied. • The debtor cannot provide a thing of
Yes. When the penalty is iniquitous, unconscionable. inferior quality.
• The performance must be complete
• If the obligation is a monetary obligation,
the payment must be in legal tender.
- Free disposable of the thing due : the thing
should not be subjected to any claims by
What is legal tender? other prties.
Money or currency that a debtor may compel - Capacity to alienate things – capable of
the creditor to receive. giving consent.
What is the required medium of payment?
It must be made in the currency w/c is legal What if the debtor doesn’t possess these things?
tender in the Ph, except if there’s stipulation
which requires otherwise. Rule : Payment is invalid except cases provided by law.
What are the legal tender in the Philippines? If the payment was already made, the guardian of the
• P1000 – P1, P5, P10 incapacitated person, or the person himself, shall annul
• P100 – 1c, 5c,10c,25c the payment.
• All bills are legal tender to any amount.
What if a person ordered by court to retain his debt
What if there’s an inflation/ deflation? paid the orig creditor (became invalid) ;case like : accion
Rule : The value of the currency @ the time of the subrogatoria ?
establishment of the obligation shall be the basis of Rule : Payment VOID.
payment unless there is an agreement to the contrary.
The competent authorities will declare the application What if the payment was done by third person?
of the effectivity of the inflation or deflation.
Rule : the creditor is not bound to accept payment or
How does it apply? performance of a third person.
Use the formula : A=(B/C) x B Except:
A : Amount to be paid @ maturity - Said by stipulation
B : amt. of the obligation (orig) - If the 3rd person has interest in the
C: Value on maturity date fulfillment (e.g guarantor/co-debtor)
What is the rights of the 3rd person who makes the
What’s the effect of delivery of mercantile documents? payment?
The effect of payment shall only produce when they are Case 1. w/ the knowledge of debtor
cashed or impaired by creditor.
a. He can reimburse the payment
What are the considerations that an incomplete b. Entitled for subrogation (e.g rights in
performance is deemed complete? property,guaranty etc.)
- If performed with good faith, less Case 2. w/o the knowledge or vs. will of the debtor
- Acceptance by obligee (no protest or a. He can only recover the amt.,w/c became
objection) beneficial to the debtor.
b. Not entitled with subrogation
Can partial payments be made?
Case 3. 3rd person doesnt want to be reimbursed
Rule : No. except:
a. w/ debtors consent :Payment will be deemed as
- There is an agreement donation.
- Debt is partly liquidated and unliquidated b. w/o debtors consent : payment valid, the case 2
(amt.fixed) provisions applied.
Who must make the payment?
The debtor who must have:
To whom shall payment be made? 3. Payment by cession : assignment of debtors all
valid property to his creditors in payment of his
a. Creditor debt. It could be legal or conventional.
b. Creditor’s successors
c. Authorized person Rules:
What if payment was made to an incapacitated person? - The debtor only released by the net proceeds
of the sold property.
Rule : Invalid except: - There must be two or more creditors
a. If He KEPT the delivered thing. - The debtor should be insolvent
b. The amt. w/c became beneficial to him is valid - The creditor accept the abandonment

What if payment was made to a third person?

Tender of Payment and Consignation
Rule : Invalid, except:
What is tender of payment
a. If the payor gains the right of the creditor after
the payment The act of debtor in offering to creditor of what is due to
b. Creditor ratifies the payment to the 3rd person. him.
c. The debtors believe that the 3rd person is What is consignation?
authorized, by creditors conduct
d. If the payment is made in good faith. The act of depositing the sum or thing due, judicially,
when the creditor refuses to accept the legal tender, or
Where should the payment be made? when he cannot accept it.
a. If there’s stipulation, in the place designated. What are the requisites of the consignation to
b. If theres no stipulation: extinguished the obligation?
a. Determinate : wherever the thing might
be @ the time of constitution. A. There must be a valid tender of payment
b. Generic : @ the domicile of the debtor (complete, and is what has been contemplated)
B. The creditor refuses to accept the payment w/o
just cause.
What are the special forms of payment? C. The interested parties shall be notified about the
1. Dation in Payment – payment of the debt by intention to consign.
property of the debtor. D. The sum or thing due is deposited w/ juridical
2. Application of Payment – designation of debt, if authorities.
the debtors have several debts to one debtor w/c E. After consignation,the interested be again
is all due. notified.
Requisites of AOP: What if the consignation already made?
*2 or more debts sre due
*debts are of the same kind The debtor may order the judge to cancel the obligation.
*same debtor, same creditor
*all debts are due, unless it was Obligation extinguished atm the creditor accept the
stipulated that payment should be applied payment. Or judge declares.
to the thing not due. Can the debtor withdraw the payment deposited?

Whats the hierarchy of application of payment? Case 1 : Yes. He has the right to withdraw it, until the
1. Debtor will designate, if not: creditor has not yet accepted it, or the judge so declares.
2. Creditors will designate (debtor cannot
Whats the effect of withdrawal?
complain), if not:
3. Designate to most onerous, if not: 1. The obligation remains enforceable.
4. Designate proportionately 2. Co-debtors, guarantors, sureties not released.
Case 2. Yes. Of the creditor already accepts the 4. Partial loss : if the obligation is so important, that
consignation, but he permits the debtor to partial loss can extinguished the obligation.
withdraw it.
Condonation / Remission
Whats the effect? Forgiveness of indebtness by creditor.

1. Obligation be revived What are the kinds of Remission?

2. Creditor may lose all the preference he may a. Total : Prinicipal + accessory remitted.
have over the thing. b. Partial : part of the obligation, or accessory
3. Interested parties released is remitted.
4. Joint debtors still liable. c. Express : made orally/writing
5. Solidary debtos become joint.
What are formalities of the remission “expressed”
What if there’s no tender payment? Will consignation
still be effective? A. Remission w/ Immovable property :
a. Be made in public instrument.
a. Yes. When the creditor is absent or uknown at B. Remission w/ movable/personal property:
the place of payment. a. >5000, remission be in public
b. Yes. When the creditor is incapacitated to b. <5000 (public/private);
receive the payment at the time it is due.
c. Yes. If the creditor refuses to accept w/o just
d. Yes.When 2 or more persons claims the same
right to collect.
e. Yes. If the title was lost.

When will you considered a thing as LOST?
When it perishes, or goes out of commerce, disappears
in such that its existence is unknown or it cannot be
recovered. Physical or legal impossibility of the service
in w/c the obligation exists.
What’s the effect of a thing loss?
General Rule for Loss
1. The loss of a determinate thing extinguished the
obligation except:
- Delay
- Stipulated
- Nature requires
- When the debt proceeds fr. Criminal offense.
2. The loss of a generic things does not
extinguished the obligation, bec. Genus never
perishes, except: if it’s a delimited generic thing.
3. Obligations to do, its impossibility to perform
extinguished the obligation.