DELAY / MORA /DEFAULT

Is the non fulfillment of an obligation with respect to time.

 Mora Solvendi- Delay on the part of the debtor to give or to fulfill his obligation.

Ex re – delay in real obligation (obligation to give)

Ex persona – delay in personal obligation (obligation to do)

 Mora Accipiendi – Delay on the part of the creditor

Creditor refused to accept (to do)

 Compensatio Morae- Both are delay

CLASSES OF PERIOD
 Suspensive Period (ex die) – the obligation BEGINS only upon the arrival of the period.
Example: I promise to give you P10k if Mr. X dies.
 Resolutory Period (in diem) – the obligation is valid up to a day certain and TERMINATES upon
the arrival of the period.
Example: You can use my car until the end of this year.
 Judicial period- set by the court
 Voluntary- set by the parties
Example: Payment for rent every 15th day on the month.
 Legal- set by law
Example: NIRC= payment of tax is on or before April 15.

SPECIAL KINDS OF OBLIFGATIONS

 Obligation with a period

extinguishment is subjected to the expiration of the term which must necessarily come
 Obligation with a condition
 Joint and solidary
Joint- there is multiplicity.
Jointly, Pro rata, In proportion, Proportional, Proportionately, Mancomunada Simple.
Solidary - if there is agency, surety, or guaranty
Solidarity, Partnership, Joint and/or severally, together and/or separately, individually
and/or collectively, In solidum, Solidaria, Juntos o separadamente
 SIMPLE OBLIGATION-one object (prestation) which is due & demandable.
Due = maturity; Demandable = enforceability( whether you can still.

Example:

*I have an obligation to pay you 100,000 on August 30, 2019 and you are demanded it
today Aug 14, 2019. -My obligation is not yet due.

On or before – benefit of the dr

 * May obligasyon akong magbigay ng kotse, pero kapag tinamaan ng kidlat (loss without
my fault) – Wala na akong obligasyon.

 COMPOUND OBLIGATION- opposite of simple obligation. more than one prestation that are due
and demandable.

1.) CONJUNCTIVE- several prestation are due and demandable. All must be perform.

the linking word is “and”.

Example: X has the obligation to give a specific cellphone and a specific watch to Y. If the watch

is lost due to a fortuitous event, the obligation is not yet extinguish because there is still an obligation to
deliver the specific cellphone. In this case, the conjunctive obligation became a simple obligation.

2.) DISTRIBUTIVE - alternative and facultative obligation.

Alternative obligations – (OR)

ART.1199 – if there are several prestations that are due and demandable but the performance of
one will extinguishes the obligations. The right of choice belongs to the DR unless it has been expressly
given to the creditor.

- all prestations are due and demandable but the performance of one will extinguish the obligation.

Example: X has an obligation to deliver a specific cellphone or a specific watch to Y.

- If X delivered the cellphone, the obligation is extinguished, there is no obligation to deliver the

watch anymore.

- If X delivered the watch, the obligation is extinguished, there is no obligation to deliver the

cellphone anymore.

Facultative obligations – (Instead of, I can replace it, I can choose to deliver another thing.)

There are several prestations. What is due and demandable is the first, but the debtor has the option to
replace it by another prestation.

Example: X has an obligation to deliver a specific cellphone but he may instead deliver a specific

watch to Y.

Case 1: The cellphone is lost due to a fortu itous event, before X could change the prestation.

- The obligation is extinguished because the object that is lost is the one that is due and demandable.

Case 2: The watch is lost due to a fortuitous event, before X could change the prestation.

- There is still an obligation because the watch is not the object that is due and demandable.

Case 3: The watch is lost due to a fortuitous event, after X changed the prestation.

- The obligation is extinguished because the watch is now the object that is due and demandable.
Case 4: The cellphone is lost due to a fortuitous event, after X changed the prestation.

- There is still an obligation because the watch is now the object that is due and demandableanother
prestation.

Article 1183: if the obligation is divisible that part thereof which is not affected by the impossible or
unlawful condition shall be valid.

 DIVISIBLE OBLIGATION- Susceptible of partial performance

-refers to the capability of partial compliance.
Money- divisible
Example: A, B, and C has an obligation to pay Php 90,000.00 to X.
If C does not want to pay, X can collect Php 30,000.00 each from A and B,
and sue C for Php 30,000.00 ( collection of sum of money)

 INDIVISIBLE OBLIGATION- Not susceptible to partial performance

 One that is not capable of partial performance by its nature or by law or agreement of the
parties.
. A, B, and C has an obligation to give a horse to X.
- Horse is indivisible. If C does not want to pay, convert the monetary value of the horse
and then X can collect from A and B, and sue C. ( collection of sum of money/ refusal to
deliver)

Article 1226 –Obligation with a penalty or penal cause

 If the problem is silent, did not make a reservation as payment of any other kind of
damges.

Penalty- carry all kinds of damages .

-is a mere accessory obligation that is the reason behind the law.

( kapag ang problema ay hindi nagsabi ng alinman sa penaltu magababayad ka pa ng damage perwisyo.
Walang binanggit na ganon the fact na nandun yung word na penalty, nakakarga na lahat ng uri ng
damages.)

The nullity of the principal obligation carries with it the nullity of the penalty. The nullity of the penalty
does not carry with it the nullity of the principal obligation

because the penalty is just an accessory and accessory just follows the principal.

Rule on penalty: Penalty carries with it all kinds of damages, unless reserved or stipulated by the parties
that in can be penalty plus damages.

If the Principal obligation is null & void, the Penalty is also null &void.

If the Penalty is void, the Principal obligation is not void.

1. X has an obligation to give Y Php 100,000.00. If X can’t give the Php 100,000.00, he must give

10 grams of methamphetamine by way of penalty.

Penalty is null but the obligation to give Php 100,000.00 is not.

2. X has the obligation to give 10 grams of methamphetamine to Y. If X can’t give the

methamphetamine, he must pay Php 100,000.00 by way of penalty.

Money is valid as penalty, but the obligation to give the methamphetamine is null.

- Both the obligation and penalty will be null.

Article 1189 –rules in case of loss, deterioration or improvement of determinate thing before the
fulfillment of suspensive condition.( hihintayin munang mangyari hanggat hindi pa nangyayari yung dr
muna ang may hawak ng obligasyon.)

250 k ( kinupit)= qualified thefts accdng to law

50k- plunder , < 50 graft and corrupt practice act

 Loss of the thing

a. Debtor is at fault – Debtor is obliged to pay damages
b. Debtor is not at fault – Obligation is extinguish

Loss- a thing is considered lost when it perishes or disappears in such a way that its
existence is unknown or it cannot be recovered..

Example:

-May obligasyon akong magdeliver ng specific na kotse sayo kapag pumas aka sa subject na
ito.(suspensive condition)

- Nalaman ko na papasa kana, ayaw kong mapunta sayo ang kotse ko kaya hinulog koi to sa
bangin ( Debtor is at fault therefore , I will pay damages.)

- Tinamaan ng kidlat ang kotse ( Dr is not at fault,the obligation is extinguish)

 Deterioration of the thing- naglessen ang value

a. Debtor is at fault- Cr may choose

1. Exact fulfillment + Damages 2. Rescission + Damages

b. Without debtors fault- creditor suffers

Example: 7am namalengke ka may nagtitinda ng 500 pesos na isang basket na prutas. Sabi ng tinder
may nauna sa iyo balik ka ng 12:00pm pag hindi kinuha sa iyo ko ibibigay.

1. Tinago ng tinder yung prutas sa ref kaya nag deteriorate color brown na at binebenta na lang ng
350.

*Dr is at fault
 a. EF + D – babayaran mo na lang ng 350 dahil yung (150) ay damages
b. R+D – ayaw ko bilhin yan ibalik mo yung pamasahe ko at damages

*Dr is not in fault talagang medaling malanta babayaran mo parin ng 500 Pesos

 Improvement of the thing- addition

A .By nature-Enure= cr

-Lupa mo katabi ng river, pag nagkaroon ng accrission pwede mo ng patitulohan na sa iyo.

- Earthquake nagiba ng daan ang river.Kung ano yung dating dinadaanan ng river ayun ang sa iyo.

Kalabaw- legal department

B.Dr’s effort or at the expense of the debtor- the debtor will have usufructuary right ( enjoy the property
belonging to another.)

Ex: 1000sqm =1m pag nanalo ako sa sinampa kay w

a. Nagkaroon ng accrision na 200 sqm naging 1200 sqm, babayaran pa rin ng 1m

b. Nagtanim ako at bibilhin mo ng 1m kahit ikaw na ang mayari may usufuctuary right ako na I
harvest ang tanim at tuluyan ng ibigay sa iyo.

MODES OF EXTINGUISHMENT (Article 1231)

By Payment or Performance Annulment

By Loss of the thing due Rescission

By Condonation or Remission of the debt Fulfillment of a resolutory condition

By Confusion or Merger of the rights of creditor & debtor Prescription

By Compensation War- citizen ng magkalabang bansa

By Novation

Article 1232 – Payment 0r Performance

-Delivery of money

-Performance of an obligation

Article 1198

Period- creditor

When Is the debtor loses his right to make use of period

1.When he becomes insolvent, unless he gives a guarantee or security for the debt.

Ex: utang on or before aug 30

Insolvent- maaari mo na siyang masingil ngayon

Ex: security car utang ko 100,0000 . 10k monthly

Nagbayad ako sayo ngayon 70k na lang kulang ko. Hinulog ko sa bangin kotse maari ng masingil sa akin
yung 70k

2.If the debtor compel the collateral or security.

-utang 10k nanghiingi ako ng collateral, kinabukasan hindi mo binigay yung collateral.dahil dito hindi na
magagamit ng d rang aug 30.

3. When he impairs the said guaranties or securities by his own acts. Or when through a fortuitous event
they disappear.

4. the debtor failed to do his undertaking without which the creditor will not agree in lending him

Ex: 10k= upuan for 10 days. Di siya nakagawa kaya nawalaan siya ng right na gamitin.

5. if the debtor attempt to abscond.(1129)- if the debtor has been disposing all his property with an
attempt to leave his place orf business or residence to escape his creditors.

Ex: nagtatago

Legal Tender- MONEY

2 Requisites of Legal Tender:

1. It is the currency authorized by a certain government.

2. Used as payment for an obligation.

Philippine Peso – legal tender in the Philippines.

• Bills – have no limit

• Coins

*BSP Circular No. 537 Series of 2006*

P1, P5, P10 up to 1000 pesos only

P.01, P.05, P.10, P.25 up to 100 pesos only

NOTE: Cheques are NOT a legal tender.

If the payment is a legal tender you CANNOT refuse to accept it.

*The obligation is extinguished if you received the amount.

Payment - (Article 1232)

Delivery of money, Performance of an obligation

Hal: nagbayad ako sayo ng 100k- wala na akong utang mode: payment.

3 Principles of payment

1.Integrity of payment- – the amount agreed upon must be the one to be paid in whole.

-payment must be complete

Ex: Usapan 100k , nagbayad ka 80k, pwede ba kitang tanggihan? YES kasi usapan 100k

2.Identity of payment – you have to deliver the object which has been agreed upon even though the
replacement is equal value or more valuable than the original object.

Ex: 10 panda = 5 panda + 5 parker

If the question is refuse to accept? Yes

Will you accept? Yes

Indivisibility of payment - if instalment is not included in the agreement, the payment must NOT be in
instalment.

Ex: utang mo 100k , sabi mo 20k every month – not accepted

Illustration:

Debtor owes P100k creditor due January 19, 2018. Identify whether the choice of payment is

allowed or not:
1. P100k payable 1-19-18 Check!

2. P100k w/ penalty 1-19-18 Check!

3. P100k payable 1-29-18 the obligation is not yet due

4. P150k payable 1-19-18 will violate integrity of payment

5. TV worth P100k payable 1-19-18 will violate identity of payment

6. P100k payable 1-19-1991 the obligation is no longer demandable

4 CLASSES OF PAYMENT

1.Dacion en pago/ dacion in payment

2. Application of Payment

3.Payment by cession

4. Tender of payment and consignation

1. DACION EN PAGO/

-you have an original obligation to pay some of money, but property is being alienated.
-the ownership of property is transferred to his creditor to pay a debt in money.

-debtor owes CASH, but pays his obligation in KIND.

*debtor owes in KIND, but pays in CASH, therefore there is a NOVATION & simple payment.

NOTE: Novation is NOT a special kind of payment

Ex: utang: 150k property : kaldero

Pumayag na kapalit = Novation

dep-acceptance and novation

ex: debt= specific car binigay mo= cash

novation= yes

dep= no, dapat personal property at hindi cash

2. Application of payment (Article 1253)

-debtor owes a lot of obligations to one creditor
-debtor has the right to choose what obligation will be paid first.
-if the debtor did not choose: Creditor must apply the payment in MOST ONEROUS &
BURDENSOME to the debtor.
*Secured Loan- most onerous/burdensome to the debtor because there is security or
collateral
*Unsecured Loan- no collateral

3. Payment by cession (Article 1255)

-opposite of insolvency

-cession means to stop, to cease fire

-debtor will call for his creditors to confront them about his situation & he plans to stop his

payment for his obligation for a while.

-creditor will sell the properties of the debtor

-if the debtor will become solvent again, creditors can still go after him to demand payment.

-several creditors exists.

3. Tender of payment & consignation (Article 1256-1261)

*tender of payment – debtor shows his creditor his payment. “here’s my payment”

*consignation –occurs when the creditor did not accept the payment of the debtor,

therefore debtor may go to court to show that he is about to pay his obligation.

Consignation alone shall produce the same effect in the following cases: (Article 1256)
a. When the creditor is absent/unknown, or does not appear at the place of payment.

b. When the creditor is incapacitated to receive the payment at the time it is due.

c. When, without just cause, he refuses to issue to give a receipt.

d. When 2 or more persons claim the right to collect having different interests

e. When the title of obligation has been lost.

MAGBABAYAD KA KANINO?

1.creditor

2.authorized representative

3. assignee (pinaglipatan), assignor-ikaw

-You have to pay the creditor or any person authorized or his successor in interest

-payment to a third person is not a valid payment, the third person must give the

payment to the creditor for it to be valid

- Payment to an incapable person (those who cannot give a valid consent) is not valid.

Except

1.

2.it rebounded to his creditor

Incapable Persons:

1. Minor- below 18 years old

2. Insane Person- no mental faculties

*Lucid Interval-(article1328) an insane person is sane in this moment

- payment during lucid interval is valid

*drunkenness, hypnotic spell.

3. Deaf-Mute person who does not know how to write

Two situations to be considered:

When the incapable person kept the payment, Payment is Valid

 Condonation or remission – Donation(yes)

2 elements
1. It is an act of liberality
2. it must be accepted by the debtor( dowrie)
acts
 Onerous Contracts – Delivery of house depends on the clearance of title, Ejectment of
informal settlers;

Renumenatory Contracts – Delivery of house upon payment;

Pure Beneficence Contracts – Delivery of house dahil gusto ko lang mamigay

 COMPENSATION
-when two person in their own right are creditors and debtors of each other(1278)
 Merger or confusion
-is the meeting in one person of the qualities of the characters of debtor or
creditor(1275)
- promissory note(J/S)
M=C-A-B-(M)

SUBSTITUTION – changes on the part of the debtor

1. Expromision

2. Delegacion

SUBROGATION – changes on the part of the creditor

1. Legal

2. Conventional

Novation- is the modification or extinguishment of an obligation by another, either by changing the

object or principal condition, substituting the person of the debtor or subrogating a third person in the
right of the creditor (1291)

*Expromission- a third person initiates the substitution and assumes the obligation even without the
knowledge or against the will of the debtor.

-kapakinabangan

*Delegacion-it is the debtor who initiates the substitution which requires the consent of all parties
original debtor,creditor, newdebtor)-there is right of subrogation

-magkano naibayad mo yun ang makukuha mo

Payag si dr na si 3rd person bayaran sic r