Oblicon Reviewer Book IV- obligations and Contracts
1. there must be an act or
Law in general sense:
The set of moral rules, founded on
the rational of man, which governs
his free activity.
Law in strict sense:
A rule of conduct, just and
obligatory, promulgated by
competent authority for common
observance and benefit.
Characteristics of law:
Rule of conduct
Just and obligatory
Promulgated by competent
authority
For common observance and
benefit
Source of law:
1. Constitution
2. Presidential decrees, republic
acts, Administrative or Executive
orders, regulations and Rulings
3. Judicial decisions
4. Treaties
5. Statutes
6. Customs
7. Other sources of law
What is civil law?
Branch of law which has its double
purposes the organization of
family and the regulation of
property.
What is civil code?
It is a collection of laws which
regulates the private relations of
the members of a civil society.
Components of the civil code
1. preliminary considerations
2. Book 1 persons
3. Book 2 Property, ownership and
its modification
4. Book 3 Modes of acquiring
ownership
5. Book 4 Obligation and contracts
6. Transitional Provisions
7. Repealing clause
Requisites of Quasi Delicts
What is obligation?
it is a state of being obligated to
do or not to do something or even
pay for something.
Obligation in general sense:
It is a liability to do something or
refrain from doing something
under the terms of a contract.
Obligation in strict sense:
It is a judicial necessity to do or
not to do.
Parties in Obligation
1. Creditor or obligee
2. Debtor or Obligor
Requisites of Obligations
1 .Active
2. Passive
3. Prestation or Object
4. Efficient Cause or Juridical Tie
Obligations Arise from:
1. Law
2. Contracts
3. Quasi Contracts
4. . Acts or omissions punishable
by law
5 Quasi Delicts
Classes of Obligations
1. Solutio Indebiti
2. Negotiorium Gestio
Civil Liabilty Contemplated
includes:
1. Restitution
2. Reparation
3. Indemnification
What is Good faith?
A sincere belief or motive without
any malice or the desire to
defraud others.
omission
2. such act or omission causes
damages to other.
3. such act or omission is caused
by fault or negligence
4. There is no pre-exisitiing
contractual relation between the
parties
Kinds of negligence
1. Culpa Aquiliana
2. Culpa Contractual
3. Culpa Criminal
Persons Directly responsible for
damages incurred in quasi delicts.
1. The father
2. The Guardian
3. The manager and Owner
4. The employer
5. The state
6. The Teachers or heads of
establishment
Diligence of a Good father-
It means an ordinary care or
diligence required which an
average man or prudent man
would exercise.
Basis of the standard of care
1. Required by law
2. Kind of care on the basis of
stipulation of the parties
3. in the absence of the two, the
kind of diligence must be diligence
of a good father of the family
Kinds of fruits:
1. Natural Fruits
2. Industrial Fruits
3. Civil Fruits
Classification of Rights:
1. Real Rights
2. Personal Rights
Determinate or Specific Things
Physically segregated from all
others of the same class.
Remedies for failure of delivery of
a determinate thing
1. Complaint for specific
performance
2. Complaint for rescission
Indeterminate or generic thing
Cannot be pointed out with
particularity.
Duties in generic thing:
1. to deliver which is neither
superior nor inferior
2. to pay damages on case of
breach
Rights of a creditor
1. to ask performance of the
obligation
2. to ask that the obligation be
complied with at the expense of
the debtor
3. To recover damages in case of
breach
Accessions
Includes everything which is
produced by a thing or attached
there to, naturally or artificially.
Accessory
Things included in the Principal
thing
Kinds of Delay
1. Mora Solvendi
2. Mora accipiendi
3. Compensatio Morae
What is Fraud?
Deliberate or intentional evasion
of the debtor of the fulfilment of
obligation
What are effects of fraud?
1. Creditor may insist on
performance or substitute
2. Creditor may resolve/rescind
the contract
3. Creditor may recover damages
What is negligence?
Omission of diligence required by
the nature of obligation
Fortuitous Event
An event which cannot be
foreseen or which, though
foreseen, is inevitable
Acts of God- events which are
totally independent will of every
human being
Acts of Man event independent
of the will of the obligor but not of
the other human will.
Usury
Receiving interest in excess of the
amount allowed by law.
Nature of usury law
It makes usurers criminally liable if
the interest charged on loans are
more the limit prescribed by the
law.
Remedies available for the
creditor to enforce payment of his
claim against the debtor
1. Property must be pursued in
the possession of the debtor
2. To file an accion Subrogatoria
3. By means of accion pauliana
Accion Subrogatoria
Action where the creditor whose
claims had not been fully satisfied
may go after the debtor
CHAPTER 3
Different kinds of Obligation
Section 1
Pure and Conditional
Section 2
With period and term
Section 3
Alternative and Facultative
Section 4
Joint and Solidarity
Section 5
Divisible and Divisible
Section 6
With penal clause
Section 1
Pure and Conditional
Pure obligation
Demandable at once. It has no
term neither condition
Conditional obligation
Depends in a future and an
uncertain event.
Kinds of Conditional obligation
1. Suspensive happening of
condition gives rise to obligation
2. Resolutory Condition
happening or fulfilment which was
already acquired by virtue
Conditions may be:
1. express
2. Implied
3. Possible
4. Impossible
5. Potestative
6. Casual
7. Mixed
Conditions may also be
1. Positive - Performance
2. Negative - Omission
3. Conjunctive several obli.
4. Disjunctive several but only
one to be fulfiiled.
5. Divisible susceptible of partial
6. Indivisible not susceptible
Section 2
Obligation with a period
It is an obligation whose
demandability or extinguishment
is subject to the expiration of the
term
What is a period?
A term or a period is an interval of
time.
Section 3
Alternative and Facultative
Art. 1193
A person alternatively bound by
different prestations shall
completely perform one of them
What is an alternative obligation?
It is one where several prestations
are due but the complete
performance is sufficient to
extinguish the obligation.
In case of non payment obligation,
what will be the remedy of the
creditor?
The creditor must file a an action
for specific performance
Choice on performance of the
obligation on the part of debtor:
1. if only one is left because of a
fortuitous event.
2. when the choice is limited
because of the creditors acts
3. when some are lost, the debtor
can choose from the remaining
4. if all are lost due to the debtor,
the creditor is entitled to the
damages.
Section 4
Joint and Solidary obligations
Nature of joint obligation
Each creditor can demand for the
payment of his proportionate
share of the credit.
Classifications.
1. Active joint creditors joint
side
2. Passive joint debtors joint
side
3. Multiple Joint multiple parties
on each side
Joint Liability
Effect of the demand by one
creditor to one debtor
- Default only to the
creditor who demanded
and the debtor whom the
demand was made
Effect of partial payment
- Does not stop the running
of statute of limitations as
to the others
Nature of Solidary Obligations
One where each one of the
debtors is bound to render
each one of the creditors has a
right to demand.
Also it is one in which the
debtor is liable for the entire
obligation.
Sources of solidary obligation
1. Law
2. By stipulation of the parties
3. by nature of obligation
Right to collect
It is derive from one who
complies with the mutual
agency agreement.
Classes of solidary obligations
1. Active- several creditors,
one debtor
2. Passive one creditor,
several debtors
3. Mixed several creditor,
several debtors.
Kind of solidary Obligation
according to the legal tie:
1. Uniform bound by same
stipulations
2. non- Uniform or varied
not bound by same
stipulations
Joint obligation is less
onerous than a solidary one
There is solidary obligation in
three cases
1. when the obligation
expressly so states
2. when the law or
3. the nature of the obligation
requires solidarity.
Characteristics of active
solidarity
1. does not transmit the
solidarity to each of heirs
2. if he receives only a partial
payment, he must divide it
among other creditors
3. once paid, a credit will be
shared equally among all the
creditors.
4. he must only pay to one
demanding payment
5. one creditor does not
represent the others in such
acts novation.
6. each creditor may renounce
his right and latter need not
there after pay obligation to
the former.
a substantive law cannot be
amended by a procedural law
Effect of remission
Three defences in passive
solidarity
1. those derived from the
nature of the obligation is a
total defence
Ex. Prescription, illegality of
obligation
2. those defences personal to
the debtor defendant
Ex. Insanity
3. those defences personal to
other debtors is a defence to
the share of corresponding to
other debtors
Section 5
Divisible and indivisible
obligations

Divisibile obligation an
obligation that is capable of
partia performance

Ex. Execution of certain no. Of

days work and expressed by
metrical units
Indivisible obligation one
that is not capable of partial
performance

Section 6
Obligations with a penal
clause

- Damages shall be paid if

the obligor refuses to pay
the penalty or is guilty of
fraud in the fulfilment of
the obligation

Penalty Clause
This is an accessory obligation
which imposes an additional
liability in case of breach of
the principal obligation.

The court can reduce the

penalty if it is iniquitous.

Chapter 4
Extinguishment of obligations

Art. 1231 obligations are

extinguished
1. by payment or performance
2. by the loss of the thing due
3. by the condonation or
remission of debt
4. by the confusion or merger
of the rights of the creditor
and debtor
5. by compensation
6. by novation