OBLIGATION SORIANO MADE QUICKER.

“The creditor has personal right to the fruit from

Use at your own risk. the obligation to deliver arises but no real right to
it.”

Obligation - A juridical necessity to give to do or not 1. When obligation to deliver arises

to do. /if pure obligation - from the period of
perfection
Requisites:
Active subject /if subject to suspensive period or
Passive subject condition - fulfillment of condition.
Prestation efficient cause.
Rights of creditor:
“Civil Obligation vs Natural Obligation” Personal right - can enforced of one person
to other.
Civil obligation is positive law so enforceable by Real right - right or power over a specific
court. thing enforceable against the world.
Natural obligation is based on natural law so not 4. To deliver its accessions and accessories even not
enforceable by court action. mentioned
/accessions - everything produced by or attached to
Sources of obligation: the things
/accessory- for better use, perfection or enjoyment.
Law
Remedies of creditor
Contract
If the debtor fails to*
Quasi contract
*deliver determinate thing
- negotiorum gestion - compel to make delivery
- solutio indebiti -demand damages
- others *deliver generic thing
-ask debtor to comply at debtor expense
Delicst/crime
-demand damages to debtor
Quasi delicts *to perform obligations in obligation to do or perform it
but contravened the tenor thereof
*the creditor may ask third person to do it at expense
NATURE AND EFFECT OF OBLIGATION of debtorr
Determinate thing and Generic thing *may demand damages
- Determinate if specific or particularly designated or *perform the obligation not poorly
physically segregated from others -credito may have the same undone at expense of
- Generic if not determinate debtor
Why to know? -may demand damages
- Loss of determinate thing through fortuitous *not do what is forbidden to him
event extinguishes obligation. - may demand what is done to be undone
-Demand damages from debtor.
“Obligation of one obliged to give a determinate Grounds for liability to pay damages
thing” 1.fraud
1. To take care of thing with the diligence of a 2. Negligence
good father of family unless agreement or law 3. Delay
requires another standard of care 4. Contravention of the tenor of the obligation
2. To deliver the thing Damages
3. To deliver the fruits 1.Damages
-harm done
Kinds of fruits: -some of money that may be recovered in reperation
Natural fruits for the harm done.
Industrial fruits Injury
Civil fruits -wrongful unlaw ful tortious act that causes harm to
others.
2. Kinds of damages In reciprocal obligation, if other party has fullfiled the
A. Actual or compensatory obligation.
B. Moral 4. Effects of delay.
C. Nominal On part of debtor
D. Temperate or moderate 1. Debtor shall liable for damages
E. Liquidated damages 2. If delay in delivery of determinate thing, he is liable
F. Exemplary or corrective damages in fortitous events
3. Proof of precutionary loss On part of creditor
A. Actual - proof is required 1. He shall bear the risk of loss and shoulder the
B. Other damages- proof is nit required. expenses for preservation of thing
Fraud 2. The debtor may resort to consignation.
Kinds of fraud Fortitous events
-According to meaning Fortitous events
1. Causal fraud or dolo causante
2. Incedental fraud or dolo incidente. 1. Fortitous events are thoses events that cannot be
forseen or if can be forseen is inevitiable.
Fraud in the performance of the obligation or Evading
in the fullfillment. Incluedes act of God and act of man.
-according to commision 2. Elements
A waiver of future fraud is void, whilrle waiver of pasr -Must be independent of debtors will.
fraud is valid. -impossible of foreseeing or avoiding if can be forseen
-if will impossible for the debtor to perform obligation
Negligence in normal manner.
1.Negligence
-ommission of diligence which is required by the 3. Liability in fortitoues events.
nature of the obligation Gen rule: No person shall be liable for fortitous events
2. Test of negligence
Exception
3. Diligence to be observed
- Law provides for liability even for fortitous events.
-atleast diligence of good father unless circumstances
provides otherwise. -When parties have declared liab even fortitoes
events
Kinds of negligence.
Culpa conrtactual - When the nature of obligation includes assumption
Culpa aquilana of risk
Culpa criminal. 4. Burden of proving the loss due to fortitous events is
Delay or mora on the one who invokes it. To claim fortitoues event it
1.Dalay or default or mora is the non fulfilment of an is necessary that no negligience happened
obligation with respect of time. Transmissibility of rights and exeptions thereto
2. Kinds Gen rule- rights are transmissible.
A.Mora solvendi- dalay on the part of the debtor Exception
1. Ex re- delay in real obligation If law prohibits
2. Ex persona- delay in personal obligation If parties agrees againts transmission
B. Mora accipiendi -delay in part of creditor, delay in If rights in nature are not transmissible.
acceptance. Different kinds of obligation.
C. Compensatio morae 1Pure obligation
Delay in reciprocal obligation. 2 conditional obligation
3. Obligation with a period
3. Requisites of delay in obligation to give or to do.
4. Alternative obligation
If the creditor demands and the obligation is
5. Facultative obligation
demandable already, the debtor doues not perform
6. Joint obligation
the obligation , the creditor demands the obligation
7. Solidary obligation
either juridical or extra juridically and the debtor failed
8. Divisible obligation
to comply with that demand.
9. Indivisible obligation
No need for demand if 10 obligation with penal clause
The law so provides
Pure and conditional obligation
When the obligation expressly so declares
When time is the essence Pure obligation - without tern or condition demandable
When demand is useless at once
Conditional obligation
- demandability or extinguieshment is depends in
happening of event
*condition - uncertain event which wields an infulence
in legal relationship
Classification
Suspensive and resulotory
1. Suspensive -happening will give rise to a obligation
2. Resolutory - happening will extinguiesh the
obligation.
Potestative , casual and mixed.
1. Potestative- condition depends on the will of one of
the contracting parties.
*potestative on part of debtor
Suspensive-void
Resolutory-valid
*potestative on part of creditor- both valid.
2. Casual -condition depends on the will of one of
third person or by chance.
3. Mixed -partly potestative partly casual.
Possible and impossible
1.Possible-capable of fulfillment by law and by nature.
2. Impossible- cannot be fulfilled because of nature or
law.
-if the condition is not to do an impossible thing the
obligation is immidiately demandable.
Positive and negative.
Positive- if happens
Negative- if not happens
Divisible and indivisible
Divisible- capable of partial performance
Indivisible- on that is not capable of partial
performance.
Rights of parties before fulfillment of the condition
Creditor - he may bring appropriate actions for the
preservation of his right
Debtor- he may recover what is paid by mistake.
Effect if debtor prevents fulfillment.
-obligation is deemed fulfilled.
Rules in loss and deterioration
1. Loss of the thinh
A. With out debtors fault- obligation is extinguied
B. With debtors fault -debtor must pay damages.
Loss
-when the thing perishes or goes out of commerce or
disappear that its existance is unknown or it cannot
recovered.
Deterioration
A. With out debtors fault - impairment is borne of
creditor
B. With debtors fault
The creditor may choose
1. Rescission and damages or 2. Fullfillment and
damages.
Improvement of the thing
A. By nature or by time- benefit of the creditor
B. At expense of debtor- the debtor may remove the
improvments probided taht it will not damage to the
principal thing.
Rules in case of fullfillment of resolutory condition.
1. Upon the fullfillment of the resolutory condition, the
obligation is extinguied
2. The parties shall return to each other what they
received
3. Incase of losss, deterioration or improvement of the
thing the provisions of above rule which pertain to
debtor shallbe applied to the party who bound to
return.
Reciprocal obligation
-one that arises from the same caus and in which
each party is a debtor and creditor of the other.
Remedies of the injured party in reciprocal obligation
1. Ressision plus damages or
2. Fullfillment plus damages.
Obligation with a period.
-an obligation with a period is one whose demadability
or extinguishement is subjected to the expiration of
the term which must necessarily come.
Concept of period and day certain.
Period is the space of time which determines the
effectivity or extinguishment of an obligation.
Day certain is that which must necessarily come
although it may not be known then.
Period vs condition
As to fulfilllment
Condition- may or may not happen.
Period- must necesarry come.
As to time
Condition- may refer to future or to past event.
Period always refer to future.
As to influence on the obligation.
A condtition causes an obligation to arises or ceases ,
period is the time the obligation is effaciousness.
As thr will of debtor.
Condition- that depends on the will of debtor if
suspensive must be annuled
Period depends upon the will of the debtor.
Kinds of period.
Ex die- period with suspensibe effect
Indiem - period with resolutory effect.
Others.
Legal- fixed by law
Voluntary- fixed by parties
Juridical- fixed by court.
Who has benefit of period?
Silent both.
Period is for benefit of debtor- he cannot be
compelled before the day lapse
Period on benefit of creditor - he cannot be compelled 1. If one or some are loss, the creditor must choose
to accept performance before date. among the remainder
When the debtor can have the benefit of period if is 2. If all are lost through fortitous event , the obligation
not his benefit is extinguish.
1 he become.insolvent 3. If some are loss by debtors fault the creditor may
2. He fails yo furnish the guaranties choose any from ramainder, or any of those which are
3. When the guaranties is impaired loss in debtors fault plus damages
4. When he violates any under taking in consideration 4. If all are loss by debtors fault, the creditor may
of which the creditor agreed to the period. choose the price of any of them plus damages.
5. When he attempts to abscond.
Facultative obligation
Alternative obligation and facultative obligation
An obligation with one prestation but the debtor may
Kinds of obligation according to the number of render another for subtitution.
prestation.
1. Simple - one where there is only one prestation Rules in loss of principal thing and subtitute
2. Compound - have several prestation 1. Before subtitution
A. Conjunctive - several prestation all must be Principal thing
peformend - if loss due to fortitous event, the obligation is
B. Distributive or disjunctive - either althernative of extinguished.
facultaive. -if because of debtors fault, the debtor shall pay
damages.
Alternative obligation
An alternative obligation is one with several prestation Subtitute
but performace of one of them will extinguish the -no effect
obligation. 2. After subtitution
The right to choose is in debtor unless provided. Principal thing
-no effect
Limitation of right to choose.
1. Debtor must completely perfor prestation chosen, Subtitute
he cannot compel the creditor to receive part of one - if loss due to fortitous event, the obligation is
and part of another undertaking. extinguished.
2. Debtor cannot choose prestation that is impossiblr -if because of debtors fault, the debtor shall pay
in nature and in law. damages.
When obligation ceases to be an alternative and Joint and solidary obligation
starts to be a simple Joint and solidary obligation happens if there is 2 or
1. When the debtor has communicated the choices to more debtor and/or 2 or more creditor.
creditor.
Joint obligation-
2. When only 1 prestation is practicable.
Debtor- each debtor is liable only in proportionate
3. If creditor has thre right of choice, if the creditpr has
share of the liab.
communicated the choice to the debtor.
Creditor- each creditor is entitled only in proportionate
Rules in case of loss of things or impossibility of amount.
services which are alternative.
Solidary obligation-
When the right of choice is to debtor Debtor- liable to whole amount and then collect to
If lost though fortitous events others
1. Deliver the any of the remainder, or the last one. Creditor - entitled to whole amount but will repay
2. If none ramains , the obligation is extinguished others.
If loss through debtors fault. Divisible and indivisible obligation.
1. If all are loss, the debtor must pay the value of last
Divisible obligation, one is capable of partial
remaining plus damages
performance.
2. If all except one are loss through debtors fault, then
Indivisible obligation, not capable of partial
the last one is loss through fortitous event the
performance
obligation is extinguished
3. If all except one is loss through fortitous events and Obligation with penal clause
the last one is lost through debtors fault, the debtor Obligation with penal clause- imposes a greater
must pay damages. liability to debtor in case of non conpliance.
When the creditor has the right of choice. Penal clause is accessory undertaking.
Function of penal clause
A penal clause is attached to an obligation in order to
insure performance amd has double function.
1.To provide for liquidated damages.
2. To streghthen the coercive force of obligation.
Kinds of penal clause.
1. Legal and conventional
Legal- Imposed by law
Conventional - by agreement of parties.
2. Subsidiary and joint
subsidiary- when only penalty can be imposed
Joint- when both obligation and penalty may be
imposed.
Rules if obligation has penal clause.
General rule . The penalty takes place of the
damages and interest of non compliance.
Exception.
1. When there is stipulation
2. When the debtor refuse to.pay penalty
3. When the debtor is guilt of fraud in the performance
of the obligation.
The court may reduce the penalty if
The obligation is partly performed
The obligation has been irreularly complied
When penalty is too high.
Effect of nullity of principal obligation, penal clause
1. The nullity of principal obligation carries with the
nullity of penal clause.
2. The the penal clause is null , the principal
obligation is still not eextinguied
Extinguishment of obligations
Causes of extinguishment of obligation
1. Payment or performance
2. Loss of the thing due
3. Condonation or remission of the debt
4. Confusion or merger of rights of creditor and
debtor.
5. Compensation
6. Novation
7. Annulment
8. Rescission
9 fullfillment of resolutory condition
10 prescription
11 others
Payment or performance
-not only in money but also in performance or in any
mannner of an obligation.
How payment id made?
1. There must br delivery of the hing or rendition of
service.
/ the debtor of cannot compel the creditor to accept a
thing of different item other that what is in the
contract.
/ the debtor cannot do or not do things other than
what is in the contract if it is obligee's will
/ in obligation to deliver generic thing, the creditor
cannot demand a superior quality, a debtor cannot
deliver a thing with inferior quality.
/in obligation to pay monetary obligation , the payment
must be in legal tender.
* Legal Tender, is the monetary or currency which
debtor may compel his creditor to accept in payment
of his debt.
2. The payment or performance must be complete.
*when partial payment can be made?
-if there are stipulation to that effect.
* if the obligation is partly liquidated and partly not.
Who must make yhe payment
The debtor must posses
1. Free disposal of the thing.
2. The capacity to alianate the thing.
Payment by third person.
The creditor is not bound to accept a pyment by a
third person except
There is stipulation
When third person has interest in the contract.
Example guarantor.
Rights of 3rd person who makes payment.
a. Payment with knowledge and consent of debtor.
1. He can recover what he has paid.
2. He is entitled to be subrogated in rigbts of the
creditor such as those aeising from mortgage
guaranty or penalty.
B. Payment with out knowledge of againts the will of
the debtor.
He can recover payment that is in sofar beneficial to
the debtor.
3. Payment of a third person does not want to be
reimbured the payment -
-shall be deemed as a donation, the debtor must
concentt.
- if the debtor does not concent back to letter b.
To whom shall the payment is made.
1.To the creditor.
-payment to incapaciatated creditor
The payment should be to a capacitated to make the
payment valid, except
A. When he has kept the thing delivered or the
paymen became beneficial to him.
2. The creditors successors in interest, such as heirs
or assigns
3. To any person that is authorized to received
payment.
Where payment must be made.
1. If there is stipulation , there.
2. If none
-to give determinate thing - place of the thing
-to do or give generic thing- place of debtor.
Special forms of payment
1. Dation in payment
2. Application of payment
3. Payment by cession
4. Tender of payment and consignation
*Dation in payment or dacion en pago
Payment by thing other than money
Apllication of payment
Concept.
If there are several debt, it designantion of debt where
the payment is applied
Requisites
A debtor owes 2 or more debt of same kind which is
due on same creditor.
How application is made???
The debtor will choose which debt must be paid.
Payment by cession
Abandonment or assigment by debtor of all of his
property in favor of his creditors so the creditor can
sell it and apply as payembt to debts.
Kinds
Voluntary- agred upon
Legal- cession by operation of law.
Requisites of payment by cession
/ atleast 2 creditors
/ debtor insolvent
/ the debtor abandons all his properties those
expempt from executions
/ the creditors accept the abandoment.
Tender of payment and consignantion
Tender or payment- act of debtor of offering to his
creditor what is die.
Consignantion- act of depositing the sum of thing due
with the juridical authorities..
Requisites.
A. Valid tender of payment
B credito refure with out just cost
C. Notice to persons interested in fulfillmen that there
is tender
D. The sum of thing due is deposited
E.Notice to persons interested in fulfillment that there
is consignantion.
Effect of consignation
If proper consignation is made the debtor may ask the
judge to order the cancellation of the obligation. The
obligation shall be extinguised after the creditor
accepted the consignantion of the judge declares that
proper consignation is made.
Debtors right to withdraw the sum being consigned.
A. Before acceptance of declaration of judge.
The debtor may withdraw and will effect that the
obligation will be still inforces and those secondarily
liable is not yet release.
B. After the acceptance of creditor or declaration of
judge.
The debtor may withdraw and will effect that
1. The obligation is revived
2. The creditor loae preference on thing
3. The secondarily liable is released from liab.
When consignation even no tender of payment will
produce samw effect.
A. When the creditor is missing
B. Wheb the creditor is incapacitated on time due.
C. When creditor refuse to give receipt
D. When 2 or more persons claim same right
E when title of the obligation has been lost.
Lost of things due.
A thing is los if it perishes or goes out of commerce or
disapprears in such way that its existense is unknown
or cannot be recovered. Includes physical or legal
imposibility.
Loss effect on obligation
1. Loss of determinate thing
Gen rule: will extinguished the obligation except
When the loss due to fault of debtor
When debtor incures delay
When law so provides
When stipulayed of parties
When nature ob obligation includea assumption of
risk.
When debts proceeds from criminal offenses.
2. Loss of a generic thing.
- will not extinguish obligation exept on delimited
generic.
3. Loss in personal obligation(obligation to do)
-When the prestation became legally or physically
impossible with out fault of debtor the obligation is
extinguished.
- when the service has become so dificult as to tbe
manifestly beyond the contemplation of parties, the
onligor will be released wholely or partly in the
ibligation.
Effect of partial lass
- the court will decide.
Creditors rigby if thr loss is caused by third person.
The debtor is released in liab, but will have the rights
in action the the third person who cost the loss.
Condonation or remission
- gratitoues abandonment by creditor of his rights.
Kinds of condonation
As to amount
Total- when total obligation
Partial - when part only or accessory only
As to form
Express- made orally or in writing
Implied - by inference.
If the private document of the debt is found in the
debtor, the presumption is the creditor is the one who
voluntary deliver it
If the thing pledged after the delivery to creditor is
found in the possesion of creditor , the presumption is
the accessory obligation is extinguished but not
nesecarily the principal.
Effect of condonation of principal obligation to
accessory contract and vice versa.
If principal obligation is condoned, accesory contract
is also released
But if the accesory contract only is condoned, it will
not take effect to principal contract
Confusion or merger
- meeting in one person on qualities of creditor and
debtor.
Effect of merger when there is guarantor.
1. If the obligation is merged and the principal debtor
and principal creditor is in one person, the guarantor
are released in obligation.
2. Merger takes place in the person on guarantor, the
principal obliation is not extinguish only the guaranty
Merger in a joint obligation
- extinguish only the share of joiny debtor or joint
creditor
Merger in a solidarily obbligation.
- extinguished whole obligation, and must
demand/reimburse to others.
Compensation
- when 2 persons become creditors and debtor of
each other.
Kinds of compensation.
- as to amount or expent
Total - debts are of same amount
Partial - debts are of diffrent amount
- as to origin
Legal
Voluntary/conventional
Juridical
Facultative.
Novation
-modification or extinguishemnt of an obligation by
another.
Kinds
According to object
A. Real or objective
B personal or subjective
According to form
Express
Implied
According to extent
Total or extintive
Partial or modificatory.