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Oblicon Prof Crisostomo Uribe PDF
Oblicon Prof Crisostomo Uribe PDF
REVIEW II OBLIGATIONS
&
CONTRACTS
Atty. Crisostomo Uribe - Course Outline (Dec. 2009)
Natural Obligation
There is a juridical tie.
Illicit obligations:
PRESCRIPTION OF ACTIONS
Art. 1139. Actions prescribe by the mere lapse
of time fixed by law. (1961)
Note: The mere delay in the enforcement of a claim
does not result in any reduction or loss of right,
unless the period required by law for prescription
has expired.
What is an obligation?
Obligation is a juridical necessity to give, to do, or
not to do (Art. 1156).
Is it correct to say that the definition is not
accurate, in the sense that there must be
another prestation which is not to give aside
from to give, to do or not to do?
The definition is accurate. The obligation not to give
includes not to do.
Is the definition defective because it only
pertains to the debtor side and it lacks the
juridical relation in its entirety?
The definition is not defective. The word obligation
itself pertains to the debtor side, hence it is proper.
The obligation pertains to the debtor and right
pertains to the creditor. A person who has a right
can compel the other, but he cannot be compelled
to perform his right. An obligation may not be
waived; but a right may be exercised or not. Rights
and obligations are different matters.
What is the determining factor that the
definition under Art. 1156 is a civil obligation?
1.
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4.
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5.
Law
Contracts
Quasi-Contracts
Delicts
Quasi Delicts (Art. 1157)
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Suspensive
Resolutory
Potestative Casual
Mixed
Possible
Impossible
Negative - requires the omission of an act.
Positive - requires the performance of an act.
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Art. 1198. The debtor shall lose every right to make use
of the period:
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Yes.
Can the debtor be compelled to pay?
He lost his right to make use of the period even if
the lost was due to a fortuitous event, unless of
course he gives another security for the debt.
Why would the debtor lost his right to make use
of the period when the lost was due to a
fortuitous event and the same is not imputable
to the fault of the debtor?
This is because the creditor would not have left him
money if not for the security.
In number of Art. 1198, how can the debtor give
another security if the debtor is already
insolvent?
If the debtor still has other properties even if he is
still insolvent. Or he may not have any properties,
but he can provide for a guarantor or a secure a
mortgage to secure the fulfillment of the obligation.
Kinds of obligations as to multiple prestations:
In multiple prestations where one of the
prestation is impossible to perform even if the
other prestation still are possible to perform,
may the obligation be considered to have been
extinguished?
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Ronquillo vs. CA
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Art. 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 thereof, are liable for damages. (1101)
Negligence
(3)
(3)
(4)
(5) If, being able to save either the thing borrowed or his
own thing, he chose to save the latter. (1744a and
1745)
.....law so provides
If the debtor promises to deliver the same thing to
two persons who do not have the same interest,
thereafter the thing was lost due to a fortuitous
event, he will still be responsible for the loss of the
thing.
Note however, there should be no concurring
negligence on the part of the person invoking the
defense that liability attaches even if non
compliance was due to a fortuitous event if the law
so provides.
Art. 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. (1096)
Art. 1166. The obligation to give a determinate thing
includes that of delivering all its accessions and
accessories, even though they may not have been
mentioned.
NPC vs. CA
NAPOCOR was liable because it released the water
when the dam was full. It should have released the water
when the dam was not yet full so that the pressure would
that be not much as would result to so much damage.
Hence, to invoke fortuitous event which transpired in the
case due to heavy rainfall, there should be no concurring
negligence on the part of the defendant NAPOCOR.
In another case, in the event that NAPOCOR would
release the water of a dam, in order not to be held liable
a proper notification to the proper authorities is required.
Notice to persons not authorized such as a P01 officer is
not a proper notification which would relieve NAPOCOR
of liability.
Remedies for Breach of Obligations
Note: The first thing to consider in a problem with respect
to the remedies for breach of obligations is the plaintiff,
because if the plaintiff is not the aggrieved party, he will
not have any remedy under the law. Actions by such
persons who is not the aggrieved party will not prosper.
Remedies are available only by the aggrieved parties.
Classification of Remedies:
1. Judicial
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2. Extra-judicial
(4)
Art. 302. Neither the right to receive legal support nor any
money or property obtained as such support or any
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Payment or Performance
Payment is synonymous to performance that even
an obligation to do may be extinguished by
payment. Although there is a view that when the
code was being drafted payment is only limited only
to monetary obligations but those who advocated
this view did not succeed. This mode of
extinguishing an obligation is applicable to any kind
of obligation, even obligations not to do, as long he
is not doing what he is supposed to do he is
actually fulfilling his obligation. Payment does not
necessarily pertain to a monetary obligation.
To determine whether an obligation is extinguished
by payment, or to determine whether payment is a
valid payment or not, it would be good to classify
the rules of payment into 4,
1. There are rules which pertain to the person who
pays.
2. There are rules which pertain to the person to
whom payment is made.
3. There are rules which pertain to the prestation to
be performed, or to the thing to be delivered.
4. There are rules which pertain to the date, time,
place and manner of payment.
All these rules will have to be complied in order that
payment may extinguish the obligation.
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Dation in payment
Application of payment
payment by cession or assignment
tender of payment and consignation
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Compensation
Art. 1278. Compensation shall take place when two
persons, in their own right, are creditors and
debtors of each other. (1195)
Art. 1279. In order that compensation may be
proper, it is necessary:
(1) That each one of the obligors be bound
principally, and that he be at the same time a
principal creditor of the other;
(2) That both debts consist in a sum of money, or if
the things due are consumable, they be of the
same kind, and also of the same quality if the
latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any retention
or controversy, commenced by third persons and
communicated in due time to the debtor. (1196)
Art. 1280. Notwithstanding the provisions of the
preceding article, the guarantor may set up
compensation as regards what the creditor may
owe the principal debtor. (1197)
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What is compensation?
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1.
2.
3.
4.
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Contracts
Are agreements contracts?
Contracts are agreements but not all agreements are
contracts.
If A and B had an agreement, is it a contract?
A mere agreement will not necessarily constitute a
contract. The nature of a contract is one of the sources of
obligations. In an agreement where there is meeting of
the minds between two persons as defined in Art. 1305
where one binds himself to give something or to render
some service. Thus, for an agreement to become a
contract there must be a corresponding obligation arising
from that agreement.
Is dacion en pago a contract?
No. Dacion en pago is the delivery of the debtor of a
thing in satisfaction of his debt. It is not mere agreement
to deliver, but rather it is the delivery. Without the delivery
there is no dacion en pago. Dacion is a mode of
extinguishing obligation. Contracts creates an obligation.
Is a contract an obligation?
No. It is one of the sources of an obligation.
Is there such a thing as a mode of extinguishing a
contract?
Yes. If a mode of extinguishment is a mode of
extinguishing obligations that would also be a mode of
extinguishing contracts because, if it extinguishes a
contract then the obligation arising from the contract will
likewise be extinguished, except those which has already
been vested.
Saludaga vs. FEU
A sophomore law student of FEU was shot by the
security guard of FEU. He survived and sued FEU.
What possible liabilities may arise?
Is marriage a contract?
No it is considered as a special contract because:
1. parties - in contracts it does not require that parties be
male and a female.
2. governing law - the stipulation of the parties will
primarily govern the relation of the parties, whereas in
a contract of marriage, it is the law which will govern
the rights and obligations of the parties to such
marriage.
3. termination - there are so many modes of extinguishing
a contract, whereas in a contract of marriage it is only
death primarily which will cause the extinguishment of
the obligation of the parties and annulment.
Contracts is defined as the meeting of the minds
between two persons. May a person contract with
himself?
Contracts is a meeting of the minds between two persons
(parties) whereby one (reciprocal-two) binds himself, with
respect to the other to give something or to render some
service (includes not to do) (Art. 1305).
Yes. This contract is known as an auto contract. In one
capacity acting for one person and in another capacity for
himself or yet another person.
E.g. When a person is authorized to borrow money, he
himself may be the lender.
When a person is authorized to borrow money, can
he himself be the lender?
Yes. In that loan agreement he will be signing as
representative of the principal or the borrower and he
himself be signing for himself as a lender.
This authority is subject to the rule that the interest shall
be only for the market rate.
What auto contracts which are prohibited under
Philippine law?
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But ordinarily, the heirs will still have the right to possess
because a lease contract is not a purely personal
contract. Therefore the rights and obligations of the
parties in relation to the contract may be transmitted to
heirs and assigns. Even in lease contracts, also a lessee
ordinarily sublease the premises in whole and in part,
unless he is prohibited from subleasing the property.
(Law)
Under the law on usufruct, ordinarily, when the
usufructuary dies, will his rights be transmitted to
his heirs?
No because the law so provides, except when there is a
contrary stipulation in their agreement.
(By Contract or agreement)
A property right of a partner known as the right in a
specific partnership property. A partner cannot assign his
rights in a specific partnership property without all
partners making the same assignment over the same
property. A partner alone without the consent or
knowledge of the other partners cannot transmit his
rights to an assignee by law.
(By nature)
When the rights and obligations are purely personal or
the qualifications of the parties have been considered in
the establishment of the contract. This is common in
contracts which will involve skills because with the nature
of such rights it cannot be assigned to another person,
for such is a purely personal right.
In the principle of privity of contracts, in what
circumstances may a third person may be bound to a
contract?
A third person may be held liable in a contract in which
he is not a party or in which he is not privy, or a third
person may have a cause of action in relation to a
contract, when he may be benefited or prejudiced by
such contract.
In contracts involving or creating real rights, third persons
who would take possession of the object or subject
matter of the contract, subject to the requirements of
mortgage laws and registration laws, etc.
(In contracts involving real rights)
In a contract involving a real estate mortgage on a
parcel of land entered into between A and B, A being
the mortgagee and B being the mortgagor. A sells his
land to C and thereafter if A the mortgagor is also the
principal debtor, he defaulted. Can the mortgagagee
foreclose the mortgage of this parcel of land? With
the sale and the land may have been delivered to C,
C may already be the owner of the land. May there be
still a valid foreclosure over the land, if the land is no
longer owned by the mortgagor?
Yes it is possible because in such contracts which
creates real rights, the rights of the mortgagee attaches
to the property whoever may be the owner over the
property who may be bound to this mortgage. Even if C
is the owner, his rights will be subject to the rights of the
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1. Guarantee
2. Suretyship
3. Pledge
4. Chattel Mortgage
5. Real Estate Mortgage
6. Antichresis
Are preparatory contracts accessory contracts?
No. Preparatory contracts are principal contracts.
principal contracts will not necessarily be the end by
themselves. They are entered into for other contracts to
be made like agency or partnership.
If the agent did not enter into a contract as he bound
himself to do so in an agency to sell such that he did
not sell anything of the goods of the principal. Will it
affect the validity of the contract of agency?
No. preparatory contracts can stand on their own.
Though they cannot be the end by themselves, they can
stand on their own, they are not accessory contracts.
If he failed to comply with his obligation under the
contract, as a rule, he can be held liable for not
performing his obligation.
Real Contracts: Perfected by delivery of the object or the
subject matter of the obligation.
A borrowed money from B. To secure the fulfillment
of his obligation, A agreed to deliver his watch to B
as a security in a verbal agreement. Without this
watch being delivered to B and before the delivery of
the sum of money borrowed. Was there a perfected
contract involve in the problem?
The contracts involve in the problems are 1) contract of
loan and 2) pledge.
No contracts has been perfected to both. These
contracts are real contracts. For the perfection of this
contract, delivery of the object or the subject matter of
the contract is required. Art. 1316 enumerates real
contracts, though there are only 3 enumerated real
Yes the sale is valid. Lesion does not affect the validity of
a contract except in cases provided by law such as lesion
suffered by a ward under rescissible contracts. However,
when there is fraud, mistake or undue influence, then it is
not valid, it is voidable (Art. 1355)
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Void.
Violence/Intimidation
Reformation of Instruments:
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Defective Contracts
Is defective contracts a good classification under
this title?
No. Because the term defective contract mean that there
is an existing contract. In Void Contracts there is no
contract to speak of.
May a contract be rescissible, voidable and
unenforceable all at the same time?
Note: Even if the contract was entered into
before
the obligation arose, it is still in fraud of creditors
when the purpose is really to defraud creditors.
3. The existence of fraud or bad faith on the part of the
debtor which can either be presumed or proven; and
4. The creditors cannot recover their credits in any other
manner.
In what instance may a contract be said to be in
fraud of creditor even before the obligation arose?
In a contract of loan where a person is supposed to
mortgage his property as security for the loan. Here the
debtor owns the property at the time of the loan but
before the money to be loaned was released by the
Bank, the person disposed of the property. There was no
perfected loan but there was already fraud of creditors,
even before the money was released, the titles will
already be delivered to the bank.
Voidable Contracts
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