OBLICON QUIZ 2 REVIEWER

CLASSIFICATIONS OF OBLIGATIONS (NEW CIVIL CODE)

A. On when will it be due and demandable
1. Pure
2. Conditional
3. With a Period
B. On what will be delivered/done
1. Alternative
2. Facultative
C. On who will demand and perform
1. Joint
2. Solidary
D. On how will the obligation be performed
1. Divisible
2. Indivisible
E. On the effect of non-performance
1. Obligation with a Penal Clause

PRIMARY CLASSIFICATIONS OF OBLIGATIONS

A. By Judicial Quality and Efficaciousness
1. Natural – Equity and natural law
2. Civil – Positive or statute law
3. Mixed – Both natural and positive laws
B. By the parties – their number and relation
1. Number
a. Unilateral
b. Bilateral
2. Relation
a. Individual
b. Collective
i. Mancomunadas Simples
ii. Mancomunadas Solidarias
C. By the Object of the Obligation (prestation):
1. Look for
a. Specific
b. General
2. Look for
a. Simple
b. Compound
i. Conjunctive
ii. Distributive
a. Alternative
b. Facultative
3. Look for
a. Positive – obligor has to perform a positive act
b. Negative – obligor is prohibited from doing the act
4. Look for
a. Real – to give or to deliver
b. Personal – to do or not to do
 5. Look for
a. Possible – the obligation Is not against nature or the law
b. Impossible – when the law or nature renders compliance impossible
6. Look for
a. Divisible – subject matter is capable of partial performances
b. Indivisible – not susceptible of partial performances
7. Look for
a. Principal – main obligation as payment of a debt
b. Accessory – other undertakings to fulfill the principal obligation
i. Fideyusorias – with accessory contract of guarantee or surety
ii. Hipotecarias – performance secured by mortgage
iii. Pignoraticias – secured by pledge
iv. Ejecutiviaas – channel mortgage
v. With a penal clause
D. By their Perfection and Consummation
1. Pure – obligation not subject to any condition or term that is immediately demandable
2. Conditional
a. Suspensive (precedent) – happening of obligation is essential for the birth of obligation
b. Resolutory (subsequent) – happening of the condition extinguishes or terminates the
obligation
3. A Plazo or with a period
a. Suspensive or from a day certain – the obligation begins from the term fixed
b. Resolutory or to a day certain – obligation terminates on expiration of period

OTHER CLASSIFICATIONS
A. By the Origin of Obligations
1. Legal – from law
2. Conventional – from agreement
3. Penal – from liability from crime
B. By their Validity
1. Valid
a. Firm – arising from a valid and binding contract
b. Rescissible – arising from a contract validly entered but may be rescinded
c. Voidable – arising from a defective contract which may be annulled
2. Void
a. Unenforcable
b. Inexistent

PRIMARY CLASSIFICATIONS OF THE CIVIL CODE

A. Pure and Conditional
1. Pure Obligation
 Performance does not depend upon a future event, or upon a past event unknown to
parties, is demandable at once
 Not subject to a condition or burden with no specific date of fulfilment
 Effectivity or extinguishment does not depend upon the ful/nonfulfillment of a condition
o DAVID AND CONRAD HORSE – David promises, Conrad demands (immediate
demandability) but not immediate delivery (immediate performance) –
Reasonable time to perform
o MCDO SCENARIO – You’re on line yet you left your wallet so you borrow –
obligation to return, but given time.
2. Conditional Obligation
 Subject to a condition
  Condition – a future and uncertain event or a past event unknown to parties
o “If Pedro will die.” – certain – PERIOD
o “If Charlotte will graduate with honors.”
o “If DLSU will win on October 4.”
3. KINDS OF CONDITION
a. Suspensive
 Obligation arises upon happening of the condition
 No obligation until the condition happens
o “I will give you a black horse IF Charlotte will graduate with honors” –
giving of the horse suspended until Charlotte graduates with honors
b. Resolutory
 Obligation extinguished upon happening of the condition
 Extinguishes the obligations and terminates the rights upon happening
 There is an obligation but it is extinguished when the obligation happens
 Shall also be demandable
o “I will allow you to use my black horse, until Charlotte graduates.” –
immediate use of horse but extinguished when condition happens
c. Potestative
 Fulfillment depends exclusively to the will of one of the parties
 Purely dependent on creditor – Valid obligation
o “Debtor will allow Creditor to use Debtor’s beach house if Creditor will
render a song in class.”
 Purely dependent on debtor – Void obligation
o “Debtor will allow Creditor to use Debtor’s beach house if Debtor will
render a song in class.”
 Preexisting obligation – only condition is void; debtor still under obligation to
comply
o David owes Conrad. Conrad demands. David will only pay if David will
offer David’s beach house for sale. – Potestative under the will of the
Debtor
 Obligation subject to resolutory and potestative (on debtor’s part), obligation is
still valid – debtor is naturally interested to fulfill obligation
o “Debtor will allow Creditor to use the Debtor’s beach house until
Debtor decides to sing.”
d. Casual
 Fulfillment depends on chance and/or upon the will of a third person
o “Debtor will allow Creditor to use Debtor’s beach house if the Vice
Dean will sing a song in class.”
e. Mixed
 Fulfillment depends partly on will of either the Creditor or Debtor and partly
upon chance and/or upon the will of a third person.
o “I will give you my beach house if you and your girlfriend will get
married this year.”
f. Impossible
 Physically impossible, contrary to law, morals, public order, public policy, and
good customs
 Disregard the condition and obligation – no obligation created; VOID
 Divisible obligation – not affected by impossible is still valid
o “I will give you a black horse if Charlotte will graduate with honors and
I will allow you to use my beach house if you can fly from LS to
Andrew.”
g. Positive
  Condition must happen before a designated time
 Obligation is extinguished as soon as the time expires
 Not enough that it happens, it also must happen before a determinate time
o “David will give Conrad a car if Conrad will get married to Victoria
before reaching the age 25.”
h. Negative
 Condition must not happen before a designated time
 Renders the obligation effective from the moment the time indicated has
elapsed, or if it has become evident that the event cannot occur.
o “David will give Conrad a car if Conrad will not get married to Victoria
before reaching the age 25.”
4. Important Principles of Conditional Obligation
a. If Debtor voluntarily prevents obligation’s fulfillment, it is deemed fulfilled.
b. The effects of the obligation to give, once fulfilled, shall retroact to the day of the
constitution of the obligation
 Right of the creditor arises upon happening of the condition but should be
reckoned on the date the obligation was entered into
o January 1 – A beach house to B if B wins; February 1 – A beach house to
C if C wins. If both wins, B will have a better right. Even if later date of
determined win, this holds true unless A has already given the house to
C and B has the right for damages.
c. With reciprocal prestations – fruits and interest from the time of obligation constituted
up to time condition happens compensate each other.
d. The Creditor may bring the appropriate actions to preserve his right to protect his
interest and prevent possibility of another claiming a better right.
o Annotation of the title of the beach house to notice others of prior right
e. Suspensive Conditions – Debtor may recover what he has paid by mistake
o A promises B a car if DLSU wins the championship. DLSU wins Game 1
and A delivers the car already. He may recover.
 Suspensive Conditions of a Specific Thing (view page 57)
f. Resolutory Conditions – Upon fulfillment, parties shall return to each other what they
have received
 Not true in all – intention must be ascertained
o A promises B P1000 a day until Chicago wins a championship. After 100
days and Chicago wins, B does not return the P100,000.
o A allows C to use his car until Chicago wins a championship. After 100
days and Chicago wins, C returns the car since the use is not forever.
g. If both parties committed a breach, the court determines the first infractor. If cannot be
determined, the obligation is extinguished and both will be liable for damages.
5. Rescission in Reciprocal Obligation
a. Reciprocal Obligation – those which arise from the same cause, and which each party is
a debtor and creditor of the other, such that the obligation of one is dependent upon the
obligation of the other; to be performed simultaneously
 ONE CONTRACT = TWO OBLIGATIONS
 Implied power to rescind obligations (cancel) in case one does not comply
b. The court decrees the rescission claimed
 Although implied, power can only be exercised judicially.
 Extra-judicial rescission only if expressly agreed upon, but notice must still be
given to the party at fault.
 Rescission (resolution) not permitted for slight breach, only for substantial and
fundamental violations that defeats the object in making the agreement.
 c. Injured party may choose between the fulfillment and rescission of the obligation, with
damages. He may seek rescission even if he chooses fulfillment, if it is impossible
d. Rescinded obligation – court’s duty to require the parties to surrender whatever they
received.
B. Obligation with a Period
1. Period and Condition distinguished – view page 61
 Consists in a space of time which has an influence on obligations as a result of a juridical
act, and either suspends their demandableness or produces extinguishment.
 Consequences are subjected in one way or the other to the expiration of the said term.
 Demandability or extinguishment is subject to the expiration of a future and certain
event.
 With a fixed day – only be demandable when that day comes.
o Suspensive period – demandability is suspended until arrival of the day certain
(Ex Die) – “I will give you a car on December 31, 2020.”
 With a resolutory period – takes effect at once, terminated upon arrival.
o Demandable at once, extinguished upon arrival of the day certain (In Diem) – I
will allow you to use my car until December 31, 2020.”
 Certain day – must necessarily come, although not known when.
2. Kinds of Period
a. According to effect
i. Suspensive – Obligation teakes effect upon arrival of the period; Not yet
demandable until arrival
ii. Resolutory – Obligation takes effect immediately but is extinguished upon
arrival
b. According to definiteness
i. Indeterminate – period or duration is not expressed, determined, or stated in
the obligation; don’t know when it will come
ii. Definite – term is fixed or determined; you know when it will happen; specific
c. According to source
i. Legal – from the provisions of laws
ii. Voluntary – from the acts or agreements of the parties
iii. Judicial – from the order of the Court
3. Important Principles of Obligation With a Period
a. When debtor binds himself to pay when his means permit him to do so, obligation is
deemed to be with a period, which the court will determine.
b. When subject to a suspensive period, the loss/deterioration/improvement of the Specific
thing due before the arrival of the period…view page 57
c. Anything paid or delivered before the arrival, may be recovered with fruits and interest.
d. Whenever designated, it is presumed to have been established for the benefit of both
the Creditor and Debtor, unless circumstances or tenor says otherwise.
 Creditor cannot compel Debtor to pay beforehand.
 Clear period designated for the benefit of the C/D, the C can collect beforehand
or the D can pay beforehand.
e. It is a pure obligation if the parties do not intend the obligation to be subject to a period
and the court has no power to impose a period.
f. Court may fix a period when:
 The obligation does not fix a period but from its nature and circumstances, it
can be inferred that a period was intended.
 When performance depends on the will of the Debtor.
g. Court shall determine each period in fixing the period under the circumstances, and
cannot be changed by the Courts but the parties may.
 h. Before the period arrives, the C cannot demand from the D performance. However, the
D loses every right to make use of the period under the following:
 When he becomes insolvent, unless he gives a guarantee or security for debt
 When he does not furnish to the C the guarantees or securities he promised
 When he has impaired his own guarantees by his own act and when they
disappear through a fortuitous event, unless he gives a new one equally
satisfactory.
 When the D violates any undertaking in consideration to the period agreed.
 When the D attempts to abscond.
o SOLUTION: Disregard the time to pay and demand the obligation now.
o Francis and Denice’s “friendship-closeness” example, you trust her to
pay her utang unless she starts to show otherwise. Why wait for debtor
to escape if he is attempting to collect?
C. Alternative Obligation
1. Certain Scenarios
a. Simple – only one object or prestation
 “I will give you my condominium unit.”
b. Conjunctive – When all the objects or prestations must be performed
 “I will give you Unit 1021 of Sea Residences AND Unit 1504 of Torre Lorenzo”
c. Distributive – When only one object or prestation must be peformed
 “I will give you Unit 1021 of Sea Residences OR Unit 1504 of Torre Lorenzo”
2. Distributive Obligation
a. Alternative – various things are due, but the payment of one is sufficient, determined by
the choice which as a general rule belongs to the obligor.
 Debtor must perform one of the prestation. Creditor cannot be compelled to
receive part of one and part of the other undertaking.
 Converted into a simple obligation the moment the choice has been made and
the choice was communicated to the other party. Choice has no effect unless
communicated, and right belongs to Debtor, unless expressly granted to the
Creditor, but no right to choose those impossible, unlawful, etc.
 Debtor also loses right when only one is practiceable. Obligation remains but
it’s no longer an alternative.
 If D can’t make a choice due to C’s acts, he may rescind the contract with
damages.
o D obliged to give C a car or to construct a house in the vacant lot of C.
C sold the lot so A was deprived of right of choice, so D can cancel the
obligation and demand damages.
o Preexisting obligation: D and C agreed that C will lend P100. D will give
Conrad a car or construct a house in the vacant lot of C. C sells the lot,
but the obligation stays.
 If there no longer are any choices, due to lost objects, or impossible compliance
due to D’s fault, the C has the right to demand for damages – based on the value
of the last thing which disappeared or which service became impossible.
Damages other than also allowed.
 Obligation ceases to be alternative when the choice belongs to the Creditor
from the day selection has been communicated to D.
 In case of loss with D’s fault
o Loss through fortuitous event – D delivers which C chooses
o Through D’s fault – C claims any subsisting, or price of one that
disappears, with right to damages.
o All lost through D’s fault – C’s choice upon price of any of them, with
damages.
 o Same rule to obligation to do or not to do
b. Facultative
 Only one prestation has been agreed upon, but the debtor may render another
in substitution
o “I will give you a condominium unit at Torre but if I like, I can substitute
it with a house and lot at Better Living.”
 Only one object (condo) due; H&L never due unless
substitution is made, which always is D’s choice.
 Decision to substitute must be communicated to the C to
make it take effect.
 Before substitution, D is not liable for loss or deterioration of
the thing intended as substitute, even if it is lost through fault
or negligence.
D. Joint Obligation
1. Basics
a. Each of the debtors is liable only for a proportionate part of the debt, and each one of the
creditors is entitles to a proportionate part of the credit from each debtor.
b. Presumed when there is plurality of subjects.
c. Credit is divided into as many as equal shares as there are creditors or debtors, being
distinct from each other.
 Solidary must clearly be established.
 Rules of Court governs multiplicity of suits.
d. If one of the joint debtors is insolvent, the others shall not be liable for shares.
e. Cs and Ds should be treated equally independent to each his own from each other
2. Joint vs Solidary
a. Joint – each obligor answers only for a part of the whole liability and to each oblige
belongs only a part of the correlative rights
b. Solidary – the relationship between the active and passive subjects is so close that each
of the former or of the latter may demand the fulfillment of or must comply with the
whole obligation.
E. Solidary Obligation
1. Basics
a. Each of the debtors is liable for the whole obligation and each one of the creditors may
demand the satisfaction of the whole obligation from any or all of the debtors.
b. If there are two or more D or C in one obligation, you cannot demand from all or receive
from all, you can only demand (or receive) as a whole due to being solid.
2. Kinds of Solidary Obligation
a. Active Solidarity – exists on the part of the creditors
b. Passive Solidarity – exists on the part of the debtors
c. Mixed Solidarity – exists both among the creditors and the debtors
3. Some Basic Principles
a. Indivisibility does not necessarily give rise to solidarity and vice versa.
b. Solidarity may exist and Cs and Ds may not be bound in the same manner and by the
same period and conditions – View page 74 for the different scenarios
c. Each solidary creditor may do whatever may be useful to the others, unless prejudicial
 If a co-solidary creditor makes a demand to put debtor in delay, he is also in
delay to other solidary creditors.
 If there is an extension of time, the same will not prejudice other solidary
creditors.
d. Solidary creditor cannot assign rights without consent of others
 If the assignee is one of the solidary creditors, consent is not needed.
 e. Debtor may pay any solidary creditors, but if one of them demands, payment must be
made to that creditor.
f. If any agrees to Novation, Compensation, Confusion, or Remission of debt, the
obligation is extinguished but the solidary C who has executed any of these shall be liable
to the other C for their share in the obligation.
 Novation – D owes C P100. It was agreed that A will pay C instead.
 Compensation – D owes C P100. C owes D P100.
 Confusion – D owes C P100 with P/N. P/D negotiated to D.
 Remission – D owes C P100. C waived/forgave D.
g. C may proceed against any of the solidary debtors or some or all simultaneously.
Demand made against one of them shall not be an obstacle when directed against other,
as long as the debt has not been fully collected.
h. Payment by one of the solidary D extinguishes the obligation. If 2 offers, C chooses.
i. The solidary D who pays may claim from each of his co-debtors only the share which
corresponds to each, with interest. If paid before due, no interest may be demanded.
 If one of the solidary D will pay entire obligation, he is not a creditor. Obligation
among solidary debtors only becomes joint.
j. When one of the S.D. cannot reimburse the P.D. due to insolvency, share shall be borne
by all his co-debtors, in proportion to the debt of each.
k. S.D’s payment shall not entitle reimbursement if it has been made after obligation has
prescribed or become illegal.
l. Remission by the creditor of the share which affects one of the SD does not release the
SD from his responsibility towards co-debtors, in case debt has been totally paid by
anyone before remission was effected.
m. Remission of the whole obligation obtained by one of the SD does not entitle him
reimbursement from his co-debtors.
 If C forgave the obligation, the forgiven debtor will not become new creditor.
n. Lost thing or impossible prestation without the SD’s fault, obligation is extinguished.
o. Lost thing due to one of the SD’s fault, all is responsible for the price and payment of
damages/interest. Same rule when fortuitous event that could have exempt
performance if not for SD’s delay.
 W/o SD’s fault – obligation is extinguished
 With fault of any – all shall be responsible to C but the innocent may recover
from guilty SDs.
 Fortuitous event after delay on the part of one SD, all is will be liable, but guilty
SD is liable for the price, damage and interest.
p. Solidary Debtor’s defenses
 Defenses derived from the nature of the obligation – illegality of the cause
o Illegality of cause – foreigners cannot own lands in the Philippines.
o Defense of forgery
 Defenses which are personal – minority
 Defenses which belong to another debtor – minority of a co-debtor
F. Joint Indivisible Obligation
1. Liablities of the debtors are joint but the object or prestation is indivisible. If the division is
impossible, right of the creditors may be prejudiced only by collective acts, and can be enforced
only by proceedings against all the debtors.
2. Object can only be complied if all debtors will do so accordingly. If one refuses, a breach is
committed, so you can demand for damages. Those willing pays his share, and the guilty pays his
share plus damages.
3. It gives rise to indemnity for damages from the time anyone of the debtors does not comply with
his undertaking. Debtors ready to fulfill shall not contribute to the indemnity.
G. Divisible Obligation

1. Have as their object a prestation which is susceptible of partial performance without the essence
of the obligation being changed
2. Definitions
a. Divisibility of the Obligations (DO) – performance of the prestation which constitutes the
object of the obligation
b. Divisibility of the Prestation (DP) – the prestation itself
 “I will give you P10,000,000”
o DO – Indivisible
o DP – Divisible
 Controlling factor in determining whether divisible or indivisible is the intention
of the parties.
 Divisible when obligation has for it’s object the execution of a certain number of
days of work, accomplishment of work by metrical units, or analogous things
which by nature are susceptible of partial performances.
 Obligation not to do – determined by the character of the prestation.
H. Indivisible Obligation
1. Have as their object a prestation which is not susceptible of partial performance (sing a song)
2. Obligations to give definite things, not susceptible of partial performance (give a car)
3. Even if it may be physically divisible, it is indivisible if provided by law or of the parties.