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Article 1156. An obligation is a juridical necessity


to give, to do or not to do.

1. What is an obligation?

Ans. An obligation is a juridical necessity to give,


to do, or not to do. It is the juridical obligation of
a person which can be demanded by another for
his own benefit.

2. What are the kinds of an obligation?

Ans. The following are the types of an obligation:


(PROCES4U)
a. As to Imposition of Penalty
 Simple
 Obligation with penalty
b. As to Performance
 Positive
 Negative
c. Characteristic of Responsibility or liability
 Joint
 Solidary
d. As to person Obliged
 Unilateral
 Bilateral
e. As to Object
 Determinate/specific
 Generic
 Limited generic
f. As to Creation
 Divisible
 Indivisible
g. As to Capability of performance
 Possible
 Impossible
h. As to Existence of condition
 Pure
 Conditional
i. As to Sanction
 Civil
 Natural
 Moral
j. As to Subject matter
 Personal
 Real
k. As to Susceptibility to partial fulfillment
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 Divisible
 Indivisible
l. Right to choose Substitution
 Alternative
 Facultative
m. As to Undertaking
 Principal
 Accessory

3. Differentiate civil and natural obligation.

Ans. A civil obligation is formed from positive law


while a natural obligation is formed from equity
and natural law.

A civil obligation is enforceable in courts, while a


natural obligation is not.

4. What are the elements of an obligation?

Ans. The following are the elements of an


obligation:

a. Juridical tie – vinculum juris, it is the


efficient which binds the debtor to
perform the obligation
b. Active subject – creditor, the one
who demands the obligation
c. Passive subject – debtor, the one
who is liable for the performance of
the obligation
d. Prestation – object; the conduct of
giving, doing or not doing
 It must be possible,
determinate, lawful and has
pecuniary value
 To give is to deliver a
movable or an immovable thing
to the creditor
 To do covers all physical
or mental service
 To not do is an omission
of acts
e. Form

Article 1157. Obligation arise from:


1. Law;
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2. Contracts;
3. Quasi-contracts;
4. Delict; and
5. Quasi-delict

5. What are the sources of obligation and


how are they perfected?

Ans. The following are the sources of obligation:


a. Law – ex lege;
b. Contracts – ex contractu
c. Quasi-contracts – ex quasi-contractu
d. Delict – ex delicto
e. Quasi delict – ex quasi delicto

They are perfected by:


a. Law, quasi-contract, delict and quasi-
delict – from the time designated by law
establishing or regulating them
b. Contracts – from the perfection of
contract XPN: when there are
stipulations, or when the obligation is a
suspensive condition

Article 1158. Obligations arising from law are not


presumed. Only those which are expressly
determined in this Code or in special laws are
demanable, and shall be regulated by the
precepts of law which establishes them; and as to
what has not been foreseen by the provisions of
this Book.

6. What obligations are demandable?

Ans. Under Article 1158, only those obligations


which are determined by the NCC and special laws
are demandable.
7. How can we determine the source of the
obligation?
Ans.

Law - If the obligation is established by law and the


act is merely a factor to determine when the
obligation is demandable.

Contract, quasi-contract, delict or quasi-delict –


when the law merely regulates the obligation then
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it is said that the act is the source of the obligation


and not the law.

8. Give an example of an obligation which


came from the law.

Ans. If person A has lost a game of chance to


person B, person B is obliged to return the losses
of A with interest from the time he paid the
amount lost. This is in accordance with Article
2014.

9. What governs the obligations arising from


law?

Ans. Obligations arising from law are governed by


the stipulations of the law which establishes them.
The New Civil Code shall apply suppletorily.

10. What are the characteristics of an


obligation arising from law?
Ans.

a. It does not need the consent of the obligor


b. It is not presumed and must be expressly
provided in the law
c. The law creates the obligation

Article 1159. Obligations arising from contracts


have the force of law between the contracting
parties and should be complied with in good
faith.
11. What is a contract?

Ans. A contract is the meeting of minds between


two persons wherein one binds himself to perform
an obligation in favor of the other.
12. When are contracts perfected?

Ans.

a. Consensual contracts - Contracts are


perfected by mere consent, upon which,
the obligations arising from them has the
force of law between the contracting
parties.
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b. Real contracts – the perfection of which


depends on the delivery of the object of
obligation. (i.e., pledge, deposits and
commodatum)

13. Differentiate unilateral and reciprocal


obligations

Ans.

a. Unilateral obligations – obligations where


only the debtor is obliged to perform the
obligation
b. Reciprocal obligations – obligations where
both parties are mutually obliged to
perform an obligation
14. What are the requisites of a contract to
give rise to an obligation?

Ans.

a. It must contain all the essential elements


of a contract
b. The obligation must not be contrary to
law, public policy, public order, good
customs and morals

15. What does compliance in good faith


mean?

Ans. It is compliance in accordance with the


stipulations, clauses and terms and conditions of
the contract.

16. Why is good faith necessary?

Ans. Good faith is necessary to prevent one party


from taking unfair advantage over the other.

17. Is it allowed if one party evades the other


in the performance of an obligation after
he was benefited?

Ans. It is unlawful for a person to evade the other


party upon receiving the benefits of the contract
because this constitutes unjust enrichment.
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Article 1160. Obligations derived from quasi-


contracts shall be subject to the provisions of
Chapter 1, Title XVII, of this book.

18. What are quasi-contracts?

Ans. Quasi-contracts are juridical relations arising


from lawful, voluntary and unilateral acts based
on the principle that no one shall be enriched at
the expense of another.

19. What are the two common types of quasi-


contract?

Ans. The two common types of quasi-contract are:


a. Solution indebiti – when a person unduly
delivers a thing by mistake to a person
who has no right to demand it.

Note: Accio in remverso is different from


solution indebiti. It can only be availed of
if there are no more remedy based on
contract, quasi-contract, delict or quasi-
delict.

b. Negotiorum gestio – when a person


voluntarily takes charge on the agency or
management of a business or property
without any authorization from the
owner.

Article 1161. Civil obligations arising from


offenses shall be governed by the penal laws,
subject to the provisions of Article 2177, and the
pertinent provisions of Chapter 2, Preliminary
Title on Human Relations and of Title XVIII of this
Book, regulating damages.

20. What is the principle behind Article 1161?

Ans. That a person who is criminally liable, shall


also be held civilly liable.

21. Why do crimes have dual aspects?


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Ans. Because a person who committed a crime


does not only incur injury to a private individual
but also disturbs the peace of the society.

22. Do all crimes have civil liability?

Ans. No. Treason, rebellion, illegal possession of


fire arms and gambling do not carry civil liability.

23. When a criminal action is instituted, civil


liability is impliedly instituted with it,
unless?

Ans.
1. When the offended party waives the civil
action
2. When the offended party reserves his
right to institute it separately
3. When the civil action is instituted before
the criminal action

24. What degree of evidence is needed in civil


actions? In criminal actions?

Ans.
a. Only a preponderance of evidence is
required
b. Beyond reasonable doubt is required

25. Will the suspension of civil action acquit


the accused on his criminal liability?

Ans. No. The suspension of civil action is not a bar


to criminal liability because the actions require
different levels of evidence to rule acquittal. Civil
action requires a preponderance of evidence
while criminal actions require evidence beyond
reasonable doubt.

26. What is a prejudicial question?

Ans. It is an issue for the civil action, the resolution


of which determines whether the criminal action
should proceed.

Article 1162. Obligations derived from quasi-


delicts shall be governed by the provisions of
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Chapter 2, Title XVII of the Book, and by special


laws.
27. What are quasi-delicts?

Ans. Quasi delicts are fault or negligence of a


person, who by his act or omission, causes damage
to another person.

28. Who are the persons liable for the


performance of obligation arising from
quasi-delicts?

Ans. The following are the person liable for the


performance of obligation arising from quasi-
delicts:

a. Person directly responsible for the


damage
b. The father, or mother, with respect to
damages caused by a minor who is living
in their company
c. The guardian with respect to the damages
caused by a minor or an incapacitated
person who live in their company
d. The owners and managers of an
establishment with respect to their
employees who caused damages
e. The employer with respect to his
employees who caused damage to
another while on their assigned tasks
f. The state, when it acts through a special
agent
g. The teachers or heads of establishment of
arts with respect to the damages done by
their students or apprentices.

29. What can be a defense of the persons


liable for quasi-delict?

Ans. The exercise of all the diligence of a good


father of a family to prevent the damage.
30. What are the requisites for a person to
incur liability arising from quasi-delict?

Ans. The following are the requisites for a person


to incur liability arising from quasi-delicts:
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a. There must be negligence or fault


b. There must be damage suffered by the
plaintiff
c. There must be a causal connection
between the negligence and the damage
suffered.

31. What are delicts?

Ans. Delicts are criminal offenses

32. Differentiate delict and quasi-delict

Ans.
a. Delicts concern public interest; quasi-
delicts concern private interest
b. Delicts carry criminal and civil liability;
Quasi-delicts only carry civil liability
c. Delicts are punished if there is a law
punishing their conduct; Quasi-delicts is
broader, in which as long as it is proven
that there is negligence, a person can be
held liable for quasi-delict.

33. Give the coverages of quasi-delict which


do not overlap with the Revised Penal
Code:
Ans.
a. Negligence not covered by RPC
b. Strict liability torts
c. Intentional quasi-delicts or torts

Note: Those that overlap:


a. Criminal negligence
b. Negligence punishable by the RPC

34. Distinguish Culpa criminal and Culpa


aquiliana
Ans. Culpa criminal is civil liability arising from
crimes; Culpa aquiliana is civil liability arising from
negligence.

Note: These two are different and a person can


pursue legal actions from both however, he can
only recover damages from the action which
provides a bigger amount.
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35. Can an employer be held liable for the


negligence of his employee?

Ans. Yes. But only subsidiarily. The employer can


be held liable for the negligence of his employee
because he did not exercise ordinary diligence or
the diligence of a good father of a family in
choosing and supervising his employees.

36. Differentiate negligence from


imprudence.

Ans. Negligence is lack of foresight while


imprudence is lack of skill in preventing the injury.
For example, person A who just learned how to
drive and still does not have a drivers license,
drove in a very busy street, while doing so,
bumped into another car. He is liable for
imprudence resulting to injury. In negligence, if
person A omitted or did not perform the proper
diligence required to prevent the injury, for
example, if person A tried to beat the redlight, and
in so doing, bumped into another car.

37. Can quasi-delicts apply also to dolo?

Ans. The doctrine under the Reginald Hill case


expressly states that culpa quiliana includes
voluntary and negligent acts.
38. What is the effect of death during the
pendency of criminal action?

Ans. Death shall extinguish civil liability of the


accused arising from delict.
Article 1163. Every person obliged to give
something is also obliged to take care of it with
the proper diligence of a good father of a family,
unless the law or stipulation of the parties
require another standard of care.

39. What is the diligence required in taking


care of a determinate thing that is to be
given?

Ans. Under Article 1163, every person obliged to


give something must exercise the proper diligence
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of a good father of a family in taking care of the


thing.

40. Differentiate a determinate thing from a


generic thing

Ans. A determinate thing is a thing that is


particularly designated from all others of the same
class; a generic thing is a thing that has been
designated by its class.

41. Can the debtor deliver another thing if the


stipulation of the parties require a
determinate thing?

Ans. No. The debtor cannot deliver another thing


if the stipulations of the party requires the delivery
of a determinate thing, even if the thing to be
delivered is of superior quality.
42. Give an example of a determinate thing.

Ans. A taxi with a plate number of ABC123

Article 1164. The creditor has a right to the fruits


of the thing from the time of the obligation to
deliver it arises. However, he shall acquire no real
right over it until the same has been delivered to
him.
43. When does the obligation to deliver the
thing and the fruits arise?

Ans. It depends:

a. If the obligation arises from laws, the time


of the obligation to deliver the thing arises
from the time designated by the
provisions of Civil Code and any special
laws.
b. If the obligation arose from contracts, the
obligation to deliver arises from the
moment of the perfection of the contract.

Note: The same is true for the fruits.

44. Is the above rule absolute?


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Ans. No. These rules are not absolute. If the


obligation is subject to a suspensive condition, the
time to deliver is from the moment of the
fulfillment of the obligation.

45. What is the nature of the right from the


time of the obligation it arises?

Ans. The nature of the right is personal. Under


Article 1164, when the obligation to deliver arises,
the creditor still has no real right over it.
46. What is the implication?

Ans. The creditor cannot ask the court to compel


his ownership over the thing. He does not have the
right of ownership over the thing.

47. Differentiate real right to personal right.

Ans. Real right is the right of a person over a


specific thing. Personal right on the other hand is
the right of a person to demand an obligation from
another.

Real right is a right enforceable against the whole


world. Personal right on the other hand is a right
only enforceable to a definite person or group of
persons.

48. When does the person acquire real right


over the thing?

Ans. When the thing has been delivered to him.

49. What are the rights of a creditor in


determinate obligations?

Ans. The following are the rights of a creditor over


a specific thing:
a. The right to compel specific performance
– the debtor cannot compel the creditor
to receive another thing, Article 1244
b. The right to pursue damages in case of a
breach of obligation

50. What are the rights of a creditor in generic


obligations?
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Ans.

a. To ask for the performance of the


obligation. If it is to deliver a generic thing,
he can only ask for the delivery of the
thing which is neither of superior or
inferior quality.
b. To ask that the obligation be complied
with at the expense of the debtor
c. To pursue damages in case of breach of
obligation

51. What are the obligations of a debtor in


determinate obligations?

Ans. The following are the obligations of a debtor


over determinate obligations:
a. To perform the obligation specifically
b. To take care of the thing with the diligence
of a good father of a family
c. To deliver all the accessions and
accessories that comes with the thing
even though it was not expressly
mentioned
d. To be liable for damages in case of breach
of obligation

52. Does the debtor always need to observe


the diligence of a good father of a family,
or what is known as ordinary diligence?

Ans. As a general rule, the debtor must observe


ordinary diligence in taking care of a determinate
thing unless, the law or the stipulations of the
parties provide another standard of care.
Ex. In case of common carriers, the law requires
extraordinary diligence in transporting
passengers.

53. What are the obligations of a debtor in


generic obligations?
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Ans. The following are the obligations of a debtor


in generic obligations:

a. To deliver the thing which is neither of


superior or inferior quality
b. To be liable in case of breach of obligation

54. When can the debtor be liable for


damages in case of breach of obligation?

Ans. In case when there is fraud, delay, negligence


or contravention of tenor.

55. In relation to the previous, what can be


the remedy of the creditor if the debtor
insists to deliver a different thing?

Ans. The creditor can file an action to compel the


debtor to comply with the specific performance.

Article 1165. When what is to be delivered is a


determinate thing, the creditor, in addition to the
right granted him by Article 1170, may compel the
debtor to make the delivery.

If the thing is indeterminate or generic, he may ask


that the obligation be complied with at the
expense of the debtor.

If the obligor delays, or has promised to deliver the


same thing to two or more persons who do not
have the same interest, he shall be responsible for
any fortuitous event until he has effected the
delivery.

56. Can the creditor compel the debtor to


make the delivery?

Ans. Yes. The creditor can compel the debtor to


make the delivery in case the thing to be delivered
is a determinate thing.

57. What if it is a generic thing?

Ans. Then the creditor can ask a third person to do


the delivery at the expense of the debtor.
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58. What is the effect if the person promises


to deliver the same thing to two persons
in case of fortuitous event?

Ans. The person shall still be responsible in the


fulfillment.

Note: This is only applicable to obligations to give


a determinate thing. Not applicable to obligations
to do, not to do and to give generic things.

Note: You can only compel a person if the


obligation is to give a determinate thing. If it is a
generic thing, you can only ask for the
performance of the obligation, for the debtor to
give a thing that is neither inferior or superior
quality.

You cannot also compel another person to do


something that he does not want to do. You can
however ask for the fulfillment of the obligation,
at the expense of the debtor.

Article 1166. The obligation to give a determinate


thing includes the delivery of all its accessions
and accessories, even though they may not have
been mentioned.

59. A promised to deliver his specific car to B.


At the time of delivery, A did not include
the wheels of said car. Is this allowed
under the NCC?

Ans. No. Under Article 1166 of the NCC, the


obligation to give requires the delivery of all the
accessories and accessions of a determinate thing.
Article 1167. 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.
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60. Can the creditor comply the debtor to do


something he does not want to do?

Ans. No. Unlike the obligation to give, the creditor


cannot compel the debtor to the specific
performance of the debtor. What the creditor can
do is to ask for the fulfillment of the obligation at
the expense of the debtor.

61. Why is it not allowed to compel the debtor


to perform an obligation to do?

Ans. Because it is considered an act of violence


and is unconstitutional.
62. If the debtor refuses to comply with the
obligation, can the creditor ask the
another person to comply the obligation
even at a higher price?

Ans. Yes. The creditor has a right to ask from


another person the performance of the obligation
even at a higher price.

63. What if it is only the obligor who has the


expertise to perform the obligation?

Ans. The obligee has no other recourse than to


proceed against the obligor for damages.

64. What are the rights of the obligee in case


of contravention of tenor?

Ans. The following are the rights of an oblige in


case of contravention of tenor:

a. To ask for the performance of the


obligation at the expense of the debtor
b. To ask for the undoing of what has been
poorly undone
c. To file an action for damages because of
the breach of obligation

65. Can the oblige ask for the reconstruction


of a building that has no qualities of what
has been specified?
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Ans. Yes. Under Article 1167, the obligee can ask


for the undoing of the building that is poorly done.
This is also at the expense of the obligor.
Article 1168. When the obligation consists in not
doing and the obligor does what he has been
forbidden, it shall also be undone at his expense.

66. What are the remedies of the oblige in


case the obligor did something that he is
forbidden to do so?

Ans. The obligee can ask for the undoing of the


thing, at the expense of the obligor. He can also
file for an action to recover damages.

67. Can the obligor always ask for the undoing


of the thing?
Ans. No. Although Article 1168 expressly states
that the oblige can ask for the undoing of the
thing, it still has exceptions:
a. If the undoing is physically and legally
impossible to do so
b. If the undoing results to permanent
consequences

Article 1169. Those obliged to deliver or to do


something incur in delay from the time the oblige
judicially or extra-judicially demands from them
the fulfillment of the obligation.

However, the demand by the creditor shall not be


necessary in order that delay may exist:

1. When the obligation or the law expressly


so declares; or
2. When from the nature and the
circumstances of the obligation it
appears that the designation of the 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 obligor 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
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to comply in a proper manner incumbent upon


him. From the moment one of the parties fulfill
the obligation, delay by the other begins.

Article 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 of the obligation shall be
liable for damages.

Article 1171. Responsibility arising from fraud is


demandable in all obligations. Any waiver of
future fraud is void.
Article 1172. Responsibility arising from
negligence in the performance of every kind of
obligation is also demandable, but such liability
may be regulated by the courts, according to the
circumstances.

Article 1173. The fault or negligence of the


obligor consists in the omission of that diligence
which is required by the nature of the obligation
and corresponds with the circumstances of the
persons, of the time and of the place. When
negligence shows bad faith, the provisions of
Articles 1171 and 2201, shall apply.

If the law or contract does not state the diligence


which is to be observed in the performance of the
obligation, that which is expected is the diligence
of a good father of a family.

68. What are the two types of breach of


obligation? Differentiate the two.

Ans. Breach of obligation can either be voluntary


or involuntary.

Voluntary obligations arises if the debtor is guilty


of fraud, negligence, default or contravention of
tenor.

Involuntary obligations on the other hand arises if


the obligor is unable to comply with his obligation
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because of events that cannot be foreseen, or if


foreseen, is inevitable.

69. What is default?

Ans. Default is delay with respect to time.

70. What are the three kinds of delay?

Ans. The following are the three kinds of delay:

a. Mora solvendi – there is a delay in the


performance of the obligation
b. Mora accipiendi – there is a delay in the
acceptance of the delivery of the thing
c. Compensatio morae – delay of the two
parties in reciprocal obligations

71. When is it said that the debtor is in delay


in the performance of his obligation?

Ans. The debtor is in delay if:


a. The obligation is already demandable
b. The debtor is in delay in the performance
of his obligation
c. The creditor has demanded the
performance of the obligation either
judicially or extra-judicially

72. Differentiate judicial and extra-judicial


demand

Ans. The demand is said to be judicial if the


creditor files a complaint to the court. The
demand is said to be extra-judicial if the creditor
demands the fulfillment of the obligation either by
writing or orally.

73. When should the interest for delay be


demandable? Is it from the time the
obligation is demandable or when the
creditor has demanded the obligation?

Ans. The interest shall be computed from the time


the obligation has been demanded by the creditor,
either judicially or extra-judicially because this is
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the only time that the debtor has incurred delay.


Interest shall be computed from the time the
obligation is demanded.

74. When is demand unnecessary?

Ans. Demand is unnecessary on the following


instances:

a. If the law expressly so declares


Ex. When one of the partners expressly so
declares that he shall contribute a certain
amount to the fund, under Article 1788,
there is no more need for demand
b. If demand is no longer necessary when the
debtor has rendered it beyond his power
to perform the obligation
c. When the designation of time when the
obligation shall be fulfilled is a controlling
motive for execution

75. Can the obligor incur delay in negative


obligations? (Or obligations not to do)

Ans. It is not possible for a person to be delayed in


non-performance of an obligation however, non-
fulfillment or violation is possible.

76. What are reciprocal obligations?

Ans. Reciprocal obligations are obligations


wherein two parties are mutually obliged to
perform an obligation.

Note: The fulfillment of one party depends on the


fulfillment of the other.

77. What is the rule n reciprocal obligations?

Ans. Fulfillment of the two parties in reciprocal


obligations must be simultaneous or at the same
time.
78. When can one party considered in delay in
reciprocal obligations?

Ans. One party is considered in delay if the other


has already performed his obligation. As long as
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neither performs or is ready to perform their


obligation, neither is in delay.

79. What is fraud?

Ans. Fraud is the conscious evasion of normal


fulfillment of the obligation.

80. What are the two types of civil fraud?

Ans. The two types of civil fraud are:

a. Fraud in the performance of the


obligation – is conscious evasion of the
normal fulfillment of obligation
b. Fraud in the establishment of the
obligation – it is fraud to acquire the
consent of the creditor

Fraud in the Fraud in the


performance of establishment of
obligation contract
Done to evade the Done to acquire the
normal performance consent of the
of an obligation creditor in agreeing to
the contract
Gives a right to the Gives a right to the
creditor to file an creditor to annul the
action to recover contract
damages
Already has a pre- No obligation yet.
existing obligation

81. Is the waiver of past fraud allowed?

Ans. What is prohibited is the waiver of future


fraud, and not the renunciation of past fraud or
after the fraud has already been committed.
Waiver of future fraud is void.

In laymans term. Kapag niloko kita (past fraud),


pwede kitang patawarin and you are no longer
eligible for damages. Pero kapag lolokohin kita
(future fraud), at “ok lang” na nakalagay yun sa
contract, hindi yun ok.
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82. What is negligence?

Ans. Negligence is the omission of the required


diligence in the performance of the obligation.

83. What is the diligence required in case of


silence of required diligence in the
stipulation or law?

Ans. The diligence of a good father of a family.

84. It ordinary diligence always the diligence


required?

Ans. No. When the law or the stipulations of the


contracting parties require another standard of
diligence.
85. What are the two types of civil
negligence? Differentiate.

Ans. The following are the two types of civil


negligence:

a. Culpa contractual – negligence which


results to the non-performance of
obligation
b. Culpa aquiliana – negligence which results
to damage of another

CULPA CONTRACTUAL CULPA AQUILIANA


Negligence is merely Negligence is
an incident in the independent
performance of
obligation
There is a pre-existing There is no pre-
contractual relation existing contractual
relation
Source of obligation is Source of obligation is
the breach of the the negligence itself
obligation
As required to proof, it It is necessary to prove
is sufficient that the negligence
contract was breach
Proof of diligence is It is a defense
not a defense
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86. How is negligence tested or determined?

Ans. Did the defendant who was negligent


exercised the necessary care and caution which a
prudent person would have done in the same
situation?

87. Can the action for future negligence be


waived?

Ans. Yes. It can be waived unless obligation and


public policy require extraordinary diligence.
Heacock doctrine.
88. What is the role of the courts when the
person is negligent in the performance of
his obligation?

Ans. The role of the courts is to regulate the


liability of the accused depending whether he was
in good faith or bad faith.
89. If in good faith?

Ans. He is only liable for natural and probable


consequences of the breach of obligation and
which the parties have foreseen or could have
reasonably foreseen.

90. If in bad faith?

Ans. The negligent person is held liable for all


damages which may be reasonably attributed to
the nonperformance of obligation.

Note: If the obligee contributed to the negligent


act of the obligor, he cannot recover damages.

91. What does the phrase “in any manner


contravene the tenor” includes?

Ans. It includes any illicit act which impars the


strict and faithful fulfillment of the obligation but
also every kind of defective performance.
Article 1174. Except in cases expressly specified
by the law, or when it is otherwise declared by
stipulation, or when the nature of the obligation
requires the assumption of risk, no person shall
be responsible for those events which could not
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be foreseen, or which though foreseen, were


inevitable.

92. Is the debtor still liable for the obligation


even if the thing to be delivered has been
lost due to fortuitous event?

Ans. Under Article 1174, he is no longer liable for


the fulfillment of the obligation in case the thing
due is lost because of fortuitous event, unless:

a. If the law has declared otherwise


b. If it is otherwise declared by the
stipulation of both the parties
c. If there is an assumption of risk

93. What is a fortuitous event?

Ans. A fortuitous events are events which cannot


be foreseen, or if foreseen, is inevitable.
94. What are the two types of fortuitous
events?

Ans. The following are the two types of fortuitous


event:

a. Fortuitous event proper – act of God. Free


from human intervention. Ex. Typhoon,
earthquake, floods and other similar
calamities
b. Force majeure – with human intervention.
Arises from legitimate or illegitimate acts
of persons. Ex. Rebellion, war, robbery
and similar acts.

95. What is the general rule in the fulfillment


of obligation in case of fortuitous events?

Ans. The liability is extinguished.

96. Is there liability on the part of a driver of a


bus accident, which resulted from faulty
break?

Ans. Yes. There is a liability on the part of the


driver. Because he was negligent in checking the
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conditions of the bus. The effect of fortuitous


event shall not be appreciated because the
accident could have been prevented if only the
driver exercised proper diligence.

Note: To avail of the benefit of fortuitous event,


the person concerned must be free from any
negligence or misconduct.
97. When can a person be held liable even
though the thing due was lost because of
fortuitous event?

Ans. The debtor shall still be liable even though


thing due was lost because of fortuitous event if:

a. The law expressly provides for the liability


b. The liability is declared by the stipulations
of the parties
c. There is an assumption of risk

98. Why does the assumption of risk allow the


liability of a person even though there is a
fortuitous event?

Ans. It is based on the legal maxim, volenti non fit


injuria or “no wrong is done to one who consents”.

Article 1175. Usurious transactions shall be


governed by special laws.

99. What is a usury?

Ans. It is the receiving of something in excess of


the amount allowed by law for loan or
forbearance of money, goods or chattels.
Note: That the ceiling rates of the usury law have
been abolished on Jan 1, 1983. Circular 905
suspended the usury law. The usury law is not
amended nor repealed.

Article 1176. The receipt of the principal by the


creditor, without reservation with respect to the
interest shall give rise to the presumption that
said interest has been paid.
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The receipt of a later installment of a debt


without reservation as to prior installments, shall
likewise raise the presumption that such
installments have been paid.

100. What is the presumption if it is


shown in the receipt that the principal has
been paid without reservation with the
interest?

Ans. It shall be presumed that the interest has also


been paid. This is in conformity with the rule that
if the debt produces interest, payment of the
principal shall not be deemed to have been made
until the interest has been paid.

101. What is the presumption if the


debtor is issued a receipt by the creditor
acknowledging payment of a latter
installment without any reservation to
prior installments?

Ans. It shall be presumed that the prior


installments have been paid.
Article 1177. The creditors, after having pursued
the property in possession of the debtor to satisfy
their claims, may exercise all the rights and bring
all the actions of the latter for the same purpose,
save those which are inherent in his person; they
may also impugn the acts which the debtor may
have done to defraud them.

102. What are the remedies of the


creditor to protect and enforce his credit?

Ans.
1. (Principal) To exhaust all the debtor’s
property
2. To be subrogated to all the rights and
actions of the debtor
3. To impugn all the acts done by the debtor
to defraud him

103. Does the exhaustion of the


properties of the debtor, as a remedy of
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the creditor, only cover present


properties?

Ans. No. The exhaustion of properties cover both


present and future properties.

104. What happens when the


corporeal properties of the debtor is
insufficient to comply with his obligations
to the creditor?

Ans. The law shall look at the incorporeal


properties of the debtor. This includes the rights
and actions of the debtor to a third person.

105. When can the creditor pursue the


rights and actions of a debtor to third
persons?

Ans. The creditor can pursue the rights and actions


of the debtor to a third person when the following
conditions are present:

a. If the debtor is indebted to the creditor


b. If the creditor is prejudiced by the inaction
of failure to comply with the obligation of
the debtor
c. If the creditor has exhausted all of the
properties of the debtor

Note: The creditor cannot exercise the all the


rights of a debtor against third persons except:

a. When the right is purely personal or family


relations
b. When the right is public or honorary in
character

106. What is the principle behind


accion subrogatoria?

Ans. The property of the debtor, future or present,


shall serve as a guarantee for the payment of
obligation.

107. What is accion pauliana?


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Ans. Right available to the creditor by virtue of


which he can secure the rescission of any act of
the debtor which is in fraud and to prejudice of his
rights as a creditor.
Article 1178. Subject to the laws, all rights
acquired in virtue of an obligation are
transmissible, if there has been no stipulation to
the contrary.

108. Can rights arising from obligations


be transferred?

Ans. Yes. Rights arising from obligations can be


transferred to third persons. There are exceptions
however:

a. If the right is purely a personal right


b. If the stipulations of the parties say that
they are not transmissible
c. If the right is not transmissible by
operation of law

Article 1179. Every obligation whose


performance does not depend upon a future or
uncertain event, or upon a past event unknown
to the parties, is demandable at once.

Every obligation which contains a resolutory


condition shall also be demandable, without
prejudice to the effects of the happening of the
event.

109. What are pure obligations?

Ans. Pure obligations are obligations that do not


depend upon a future event or upon a past event
unknown to the parties

110. Can pure obligations be


demanded immediately?

Ans. Yes. Pure obligations can be demanded


immediately. The law however is careful on this
one because immediate demandability may
sometimes include a reasonable grace period for
the debtor.
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111. How long is the grace period?

Ans. Under the doctrine of floriano v delgado, the


grace period is 10 days.

112. What is the remedy of the


creditor if the contract stipulates that the
creditor shall pay the obligation “as soon
as he has the money”?

Ans. The courts shall determine the duration of


the period

113. What are the different types of


conditions?

Ans. The following are the different types of


conditions:

As to rights
 Suspensive – if the fulfillment of
the condition results to
acquisition of rights (birth of the
obligation)

Note: Rights are not yet acquired but is hoped to


be acquired

 Resolutory – if the fulfillment of


the condition results to the
extinguishment of rights (threat
of extinction of obligation)

Note: Rights are already acquired but is


threatened by extinction

As to will
 Potestative – if the fulfillment of
the obligation depends upon the
will of the debtor
 Causal – if the fulfillment of the
obligation depends upon chance
or the will of third persons
 Mixed – combination of
potestative and causal
As to realization
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 Possible – possible conditions are


those conditions which are
capable of performance
 Impossible – impossible
conditions are those conditions
which are incapable of realization
As to act
 Positive – when the condition
requires the performance of an
act
 Negative - when the condition
requires the omission of an act

As to susceptibility to partial fulfillment


 Divisible – if the condition is
susceptible to partial realization
 Indivisible – if the condition is not
susceptible to partial realization
As to conditions
 Conjunctive – there are many
conditions and all of them must
be realized
 Alternative – there are many
conditions but only one of them
must be realized
As to statement
 Express – when the condition is
expressly stated
 Implied – when the condition is
tacit

Article 1181. In conditional obligations, the


acquisition of rights, as well as the
extinguishment or loss of those already acquired,
shall depend upon the happening of the event
which constitutes the condition.

114. What will happen if the


suspensive condition happens?

Ans. The fulfillment of the suspensive conditions


shall result to the birth of the obligation.

115. And if the suspensive condition


does not happen?
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Ans. It is as if the conditional obligation had never


existed.

Article 1182. When the fulfillment of the


condition depends upon the sole will of the
debtor, the conditional obligation shall be void. If
it depends upon chance or upon the will of a third
person, the obligation shall take effect in
conformity with the provisions of this Code.

116. Is the condition and obligation


valid when the potestative condition
depends solely on the creditor? On the
debtor?

Ans. Yes. when the condition depends solely on


the creditor, the condition and obligation is valid.
However if it depends solely on the debtor, the
condition as well as the obligation is void.

117. Why is it that potestative


conditions that is dependent on the
solewill of the creditor valid?

Ans. Because the creditor is the one who stands to


be benefited.

118. If the condition is resolutory and


potestative, is the obligation and
condition valid if it is made upon the will
of the debtor?

Ans. Yes. In case when the condition is both


resolutory and potestative, which is made
dependent upon the will of the debtor, it is said
that the obligation and condition is valid because
the debtor is the one who stands to be benefited
through reacquisition of rights from the obligee.

119. If person A promises to deliver a


car at the end of the month if he is in the
mood to do so, will this condition
prosper?

Ans. No. Because under Article 1182, if the


obligation to deliver is made dependent upon the
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sole will of the debtor, the obligation is said to be


void.
Article 1183. Impossible conditions, contrary to
good customs, public policy and those prohibited
by law shall annul the obligation which depends
upon them. If the obligation is divisible, that part
thereof which is not affected by the impossible or
unlawful condition shall be valid.

The condition not to do an impossible thing shall


be considered as not having been agreed upon.
120. What are impossible conditions?
Possible conditions?

Ans. Impossible conditions are conditions which


are incapable of realization by virtue of its nature
or is contrary to law, public policy, good customs
or morals. Possible conditions are conditions
which are capable of realization by virtue of its
nature and is allowed by law.

Ex of impossible conditions
a. Contact inhabitants of mars for a sum of
money
b. Secure a divorce for a sum of money

Note: if there is a pre-existing obligation, only the


impossible condition is void and not the
obligation.

If divisible, only the part which is unaffected by the


impossible condition is valid.

121. If A promises B to deliver 1M if B


secures a divorce with his wife, is the
condition valid?

Ans. No. The condition is void because it is


contrary to law. An impossible condition is
deemed to not have been agreed upon.

Article 1184. The condition that some event


happen at a determinate time, shall extinguish
the obligation as soon as the time expires or if it
has become indubitable that the event will not
take place.
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Article 1185. The condition that some event will


not happen at a determinate time shall render
the obligation effective from the moment the
time indicated has elapsed or if it has become
evident that the event cannot occur.

If no time has been fixed, the condition shall be


deemed fulfilled at such time as may have
probably been contemplated, bearing in mind
the nature of the obligation.

122. If the time expires and the


obligation is not fulfilled, what will happen
to the obligation?

Ans. The obligation will be extinguished.


Article 1186. The condition shall be deemed
fulfilled when the obligor voluntarily prevents its
fulfillment.

123. What is the doctrine of


constructive fulfillment of suspensive
condition?

Ans. When the obligor prevents the fulfillment of


the oblige to the condition, the condition shall be
deemed fulfilled.

Note: It can only be applied to suspensive


conditions.

Article 1187. The effects of a conditional


obligation to give once the condition has been
fulfilled, shall retroact to the day of the
constitution of the obligation. Nevertheless,
when the obligation imposes reciprocal
prestations upon the parties, the fruits and
interests during the pendency of the condition
shall be deemed to have been mutually
compensated. If the obligation is unilateral, the
debtor shall appropriate the fruits and interests
received, unless from the nature and
circumstances of the obligation it should be
inferred that the intention of the person
constituting the same was different.
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In obligations to do and not to do, the courts shall


determine in each case, the retroactive effect or
the condition that has been complied with.

Article 1188. The creditor may, before the


fulfillment of the condition, bring the
appropriate actions for the preservation of his
right.

The debtor may recover what during the same


time he has paid by mistake in case of a
suspensive condition.

124. What is the effect of suspensive


condition before fulfillment and after
fulfillment?

Ans.

Before fulfillment – condition is only a hope or


expectancy
After fulfillment – the hope or expectancy is
perfected
125. When will the effect of a
suspensive condition retroact?

Ans. It shall take place at the time the essential


elements which gave birth to the obligation have
taken place. It is from the moment the contract is
perfected.

Ex. If A promised B to give a land if he graduates.


B also promised to compensate A for 1M. After 3
years, B graduated from highschool. The
retroactivity of suspensive conditions shall be
traced back to the time the contract is perfected.
That is 3 years before. Thus A will be giving the
land as well as the fruits earned from the said year.
B will also pay A for the interest.

Article 1189. When the conditions have been


imposed with the intention of suspending the
efficacy of an obligation to give, the following rules
shall be observed in case of the improvement, loss
or deterioration of the thing during the pendency
of the condition:
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1. If the thing is lost without the fault of the


debtor , the obligation shall be
extinguished

2. If the thing is lost with the fault of the


debtor, he shall be liable for damages. The
thing is considered lost if it perishes, it
goes out of commerce or it disappears in
such a way that its existence is unknown
or cannot be recovered

3. If the thing deteriorates without the fault


of the debtor, the creditor shall bear the
impairment

4. If the thing deteriorates with the fault of


the debtor, the creditor may choose
between bringing an action for rescission
with damages or bringing an action for
specific performance with damages

5. If the thing is improved by its nature, or by


time, it shall inure to the benefit of the
creditor

6. If it is improved at the expense of the


debtor, he shall have no right other than
that granted by usufructuary.

Note: the debtor cannot ask for


reimbursement for the incurred expenses
for useful improvements or for
improvements of mere pleasure. He can
however ask for the reimbursement of
necessary expenses.

126. Is the debtor allowed to remove


his improvements?

Ans. Yes. The debtor is allowed to remove all his


improvements in the thing, as long as it does not
damage the thing or property.
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