San Beda 2009 Civil Law (Obligations and Contracts) PDF

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Obligations" A juridical nocessity t0 give, fo do, ut not io do, It 1s Impressed with the character of enforceability REQuisites: 33.00 4. Vinculum Jurta or burtdteat tle = the affcient ‘cause established bi vailous rources of ‘obligations (law, contracts, quasl-cortracte dalicts and quasi-deliet); may arino other from bilateral or unilateral acis of persons; 2. Aetive subject ~ ure who can demand tho fulfilment of tite obligation; aka etligecicreditor 3, Passive subject ~ fcori whom the obligation Is Jundieally demanelubie; aka otligoridet tor Note: Subjects pertain to beth natural and Juridical persons ‘Objoct -tie prestation or conduct required to ‘be observed by the debtor (to give, to do, or rot to do}; itis not a tring Roquisitys of & Prostation a. itmust be lick; b. itmust he phystenily & judicially posit cit mutt be dete ninata or deterinnte; and . it must have possible equivalent In money. Note: FORM Is sometimes added us a fith requisite but 28 a general rule howover, It cennot be considered as essential, SOURCES (Art, 1167) - 4. Law 2. Contracts 3, Quastcontracts “ 4. Delicts 5. Quasl-detlots ‘EXECUTIVE COMMITTEE, PERBENT CALVIN ABUGAN over chat and ehie academies operations, MANOUD ADEL SANTOS tal for operations, UAW CAMU.CS ULSTRO en hao acer MAE AN SELICETARG vce ca Aeron eeu MEMO}Y AID IN Civil LAW| 117, Note: The list of aourcas is EXCLUSIVE (Sagrndo Omion v Necaos, 6.% No. L+3756, June 30, 1952). HOWEVER, Tolentino _givos_ another snurce. UNILATERAL PROMISE, «It may be based on (1) euniract or (9) law CONTRACTS Obligations arlsing from contracts have the force of law between the convacting parties and shoul! bbe complied with in good faith (Art, 1159), Cornpliance in yood falth Is performarice in accoraance with the stipulation, clauses, terms and ecnditions of the contract, The terms of the contizct determine the respective obligations of the parties thereto, If Ihe leims uf 2 conlia:t are cleat and leave ro" daub! upon the contracting parties’ intention, such tems, should he appilad ka thelr literal meaning (Sps. Dumiso v. Merion Rea! 4, GR. No. 131491, August TER aA sii LCONTRACTS «: gers Waele, me aes hother. te pti ORAGL A TAI vice for tere KRIRSINE ANNARELED OS ea chal for france IREENE XINY ACOSTA le chal fo, ACE IELO CONCEPCION ich fron ies emia: FRANCESCA LOURDES SENGA jubitet Ml SHEENA MARIE ABELLA avetartsbjetehal, ACE ARVIN OPH! dp, PRANCESCA LOURDES SUNG ‘eisers an fay relations, CRISCELIN CARATUGAN eronerty, IA. PELIA CORAZON PALO and AINPY IY ANE GALANG wil nt ccs [MARIA DANIAFLOR BERAMO nod ALLEFW INFANTE Oban and wns, MARY IVY ANNE GA NC sent! eps, EVA CALNE HAP Parmer, agerey and tre KATAEREE ANS ASLO cree Wansetins, SHEENA MARIE ABELLA is aed Aig, JAM PEARL PCR UGAL len ‘es and dads, JAN MANLELE REYES confet of laws ments: Alden Abo UleydEiene Apostet Joana ell, Jonas Asoo, Paulie Narn, bara sft Eilat, Aen are, tena les eth France cones, Anetta Calsiang, Ulzh Cano, Resin Faia Ch, Seeceto Clraval, Diane Therese Daur, Herat Gans, Hah Lanne Domingo, Ana Ofada delos yrs. Ramana Diorg Clas Lasto-Caenina, vals Espns, Dok Foo, trojan Noa Worth Gila, Kcstine Carmela Gonzales, Oaley of nova, Roehl Jose, Jacky Lert. Foca !ren, Jerome Matas. erbert Mate, Chale Clr, Menor, Kristel Concepcion Ua, lena Wace Pag, Pat lan, "hina Santee lo esa Sane, Cnty Says, Maty May Sat dare! Caria Taub, Florence Teleio, rin Tere, Gila Vilaveve, uan Gace Wisan, co uni, Nad Conan, Dro 8s st 21812009 CENTRALIZED DAR CPERATIONS Kirds of quasi-contracts 1, Nogotlorum — Gastio = voluntary management of the property or affairs of ‘unottzer without the knawladge or consent of the alter (Ar, 2144-2189) 2, Solutio tndebit! ~ juridieal relation which {is created when something I received ‘when there Is no right to demand it and it was unduly delivered ay raistake (Art 2164-2163) 3, Othor cases ~ (Art, 2164-2176) KINDS OF OBLIGATION |. Viewpoint of Sanction 1. Civil Obligations ~ give a night of ation fo zompel their perfomance, 2, Natural Obligations = qo! vased on positive law out on equity and natural law; do not grant a rignt of action to ‘enforce their performance, but attr voluntary fulfilment by the obligor, they avihorize retention of what has been delivered or rendered by reason thereof, Givil Obtigatlon and Natural Obligation Distingulshod Tatice 1423 | 2, Based on equity and natural ew 3. Hot anforceabia By ‘ Amtcla 1186. 2 Based on postive [aM a. Ghisieeable By court action or | court action coercive | powerlauthority, BSS 3, Moral Obilgations \~, those that cannot “be enforced by action but which are binding on the party who makes It In consclence and natural ‘aw, . Vlowpoint of Performance 4. Positive Obtigation = to give; to do 2. Negative Obligation ~ net to do MW, Viowpoint of Subjoct matter 4. Personai Obligation ~ to do or nat to do Real Obligation ~ to give a, Determinate oF spucific ~ object is pariculatly’ designated or physically segregated from all other af the same cass b. Generic = ebject Is designatea mereiy by its class or genius © Limited generic thing = when the generic objects are confined to a ie San Pers College of Law particular class, e¢. dn obligation to deliver one cf amy forsas (Tolentino, Volunna WV, p.91) WV, View point of Porson Oblignd 1, Unilateral ~ only one ayuty 1s bound Bilateral~ both partys are bound RIGHT GF CREDITOR TO THE FRUITS (Art. 1904) 1. Bafore dolivary ~ porsanal ight 2. After duilvary ~ real right Porsonal Right and Kas} Right Distinguished Tous 70, 8 tight enforceable" only | enfurcéablo against against definite | ure wiele world parson or group of | a 2H ig rian poraning Oa] the person to demand | parsen over a specie from another, as al thing, without a detinte ‘passive | passive | subjact subject, the fultiment | Individual of a orestation 12 | dotermined against give, to do of not to | whora such right may do be personaly L enforced OBLIGATIONS OF THE DEBTOR 4. Detorminate a. Specific Performance b. Take car San Beda College of 7, RIGHTS OF A GREDITOR IN REAL OBLIGATION 10 GIVE (Art 1768) 4, Dotorminate a. To compel specific, performance witn right to be Indernnified for damages b. To demand rescislon ofthe obligation with fight to recu ver damages & To demand payment of denayer ‘hen it's the orly feasible remedy 4. if the obligor delays, or has promised to deliver.the 3m thing to two or ore persons ‘vha do noi have the ‘same interest, 1x: shall be responsibie for any fortuitoss event untit he tas effected delivery 2 Generic & To sk for performance of the obligation 'b, To ask thai the cbiigavon be complied with at the expense af the debtor 2. To recover damages In caso of breach of obligation WHEN OBLIGATION: TO DELIVER THE THING AND THE FRUNS ares the source of obiiyation 1s taw, quasi contracts, deli, quass- delet, I arlene from the time ‘dosigna‘ed by tho inv creating or regutating thei 2. If the source Is con.ract, it arisee spon perfection UNLESS thera Is © stipulation {othe contrary PRINCIPLE OF BALANCING OF EQUITIES AS APPLIED IN AGTIONS FOR SPECIFIC PERFORMANGE: In specific performanra, ‘equity requites that the cortract bs just and equitable in its provisions, and that the consequences of spaciia performance likewise be equlteble aad Just, The genarnl tule is that this equlia've ‘elle wil not be granted if, the recy of tho specific. performanco of the conirse! would be harsh, inequitable, oppressive or resuk in an ‘unconsoloriable edvantaye to the pialntif {Agonoill v. GSIS, G.R. No. 30066, Aucust 30, 1908). RIGHTS OF A GREDITOR IN PERSON) OBLIGATION; “TO.9O OR HOT TO D (art 1107-1 409 hte hes beon fden_him, the Ni LIMRACO Mean Sieciad”~ aT ihe | obi gas aha Rave he experse of tho | folowing remediae: obligar (Excest wien | 4.0 have: tt undone the prestation | at the expense of tne | consists of an act | oblgor: and where the personel qualifications of the | 2. to ase for damages | | jStenecl ot te under Art, 1470.) ae | because of breach of Lhe obligation CASES WHERE WHE REMEDY GRanTEO UNDER ARYICLE | 168 If NOT AVAILABLE: 1, Where the affects of the act witoh ts forbiidon, aro dotinly in charactor - ‘even if ta porsibie fore obliges to ork that the act bo undone at the éxperve of the obligor, consoquonces permenent in ccharucter and conteary to the object of the ottigaion will be produced 2, Whorw it Is physically or legally imoossible to undo what has boon undone bacause of the vary nature of the fact itelf or of a provinon of law. of derause of conficling rights cf thid parsons Note: In either vase, the remedy Is to ask for Coron OE Be cy NOS'OF BREACH! OF OBLIGATIONS involufia’y' dell unable tox svete be ss ng fous 278 ck td fora ince of rf i ee ae q Fer) MEMORY AID IN CIVIL LAW| 139 120 12009 CENTRALIZED BAR OPERATIONS Doley in the performance of tae obligation, however, must be eliher malicious or nagigent. f delay is only due io Inuavertence vwathout any malice or nagiyence, the obligor cannot ba liable under Art, 1170. (ROBE v CA, G.R. No. 133407, March 25, 1999) Roquisiios in order to considar the obligor in ‘iotault: (SSS vs Moanwalk Ouvelopmont and Housing Corpoatian G.R, No. 73345, Apiil 7, 1993) 1, Obligation Is demandable and already liquidated 2, The obligoridebtor delays performance 3. Tha creditor requires performance judlclaly oF extrarjudcially Note: Art, 1169 is applicable only when the obligation is to give something over than payment of maney, in which care, Ar. 2208 shail apply Kinds of Gefeut: 1. Mora solvenai + delay of the debtor to porform his obligation, it may b 'x re — vbligatlon Is to glve Fx persona ~ obligation ' to do ‘There Is no mora soivendi + {In negative obligation; one can never be tate In not doing oF not giving something + In natural obligation; the pertomance is optional on the part of tha debtor 2. Mora aceiplendi - delay of the creditor in ecopting Gelivery of the thing which Is tha ‘object of tre obligation Roquisitos: & Offer of performance by tte, dedtor Who has the required capacity, , Offer is to comply with the prestation 3 it should be performed and ©. Credilor refuses the perfomance without Just cause, 3. Componsatio. morao = delay of the parties or obligors in raciprocal abiipation Rulos on Dofoun: Unilatora! Obligation Gevovel cule: Oemand is necessary. No donund = No delay. Mare expiration of the peviod fixed by the parties wil not cause delay ymmencement of 2 sull fy sulticlont demand sPuimevas v 4, GR. No, 120490, March 34, 1998) Excoptions: 1 Wien obligation or law expressly oo declares ti wg coicoansetea for fi og : Wares of ead RD ob 2. When ihe time for fulflinent of the obligation is of the essence’ uf the contract 3. When demana would be tes Note: Mere stipulation of matur.ty date Is not enouga to disperse with the neil to demand; the words “without tha need. of demand” ‘should appear in the face of the instrument Contracts with acceforetion nlause ~ if there is default, one can demand’ ior all instalment payments, however, there stil hag to be & demand from the creditor Rola: Prior antraludicial deniand 1s not necessary before a suit ray te filed when obligor defaults Exceprions: Ejectment cases; and. Consignment cases, (Sta. Maria; 2 ad, 2003! Reciprocal Obligations... - Created. or ‘established at thy same time, ouf of the sare cause and which result In mizual relaionshiy between the parties, General rula: Fulfilment by both parties should be simultaneous; one party incurs In delay fram tho moment the other perly fulfils his obligation, whilla he himself does nit comply oF is not ready to cainply in @ prover manner with what is iioumyant upan him, Exception When diferent dates for the performance of obligation is fixed by the paris. Demand 's necessary only in such case. ae MeN oe ( ae ca re ste a ae Bh onal Ne i nh thing of the ‘held table for Soa Woda College of Lavo San eos College ef Way 2. Mora avipondt Bears the gk ofthe thing dive + Fer obligation 19 pay money, debtor not lable for vs torest from the time of creditor's delat + Dobtor may ra ease himset! from the obligation by «cnsignation of the thing due’ 3. Conpensatio mora, + Deley obligcr cancels delay of the obliges and vias varsa + Ro actionable derrult un the part of both partion + delay of on party i followed by tnat of the other, tao taaiity of the feet infraclor shalt 2¢ equitably balanced by the cours, if ft cunnot be determined wiich of the parties is gully of delay, the vartract shall bo deemed extincviehsd und exch shell bear his own dy mages (Aut 1192) Wl. Fraud (doto): Cénicious and intenional proposition {9 evade the normal fulfilment of an obligation. Implles come kind ef malige or dichonesty and cannot cover cases of nilstake und errors In Judgment irade Is good falth In such case oblie! can be held liable for daniages Waiver of Fraud 41. Future fraud cannct be: waived becauee It Js contrary to faw aved pubte policy. 2, Walver of past fraud Is valid; it can be doemed an ect cf generosity. What Is fenounced is the eféc of raud or he rt to indent. Civil Frauds i)'stinguishad Bead Wurst UUs li Tee ie Galatians Weta Ge sou aE 1. Prevent only during| Present aniy during! ithe porformance of alte time of birth or [pre-existing obligation |.erfaction of they apligation (2. Purpose is to evade] Purpose is to secura| the normal {ulfllment|*he~ consent of the| lof the obtigation other to enter into a] oantract_ AYERORY AID IN CIVIL LAW] 121 Resvils jiotinn of consent 3. Results in the. wow fultttent oF breach uf [4. Givas rise to a rght|4, Givas rise °c a right lof the osligee tolofan innocent party to Tecover damages from|acnut the eentract if il he debtor ly causal fraud, of to -pver damages it's} i | tion I, Negtigence (Cal). Aay voluntary act oF omission, therm bela no malice, ‘whlet, prevents the seemal fulilment of an obligation inde of Nagliyance. 1 i Nepigor % Culpa content faut of noglgence ct obligor by vitae of which he. Is Unable. to patorm "his obligation eriaing fora apre-naloing con'ract b, Guba ogitiatarqvastotiet = taut of negigence of a ferton, whose failure to observa the mquiied diligence to the. oblgttion causes damage. to another. 2. Culpa Crimina: ~tsullot negigonve in the commission » came Culpa Contiactyal and Culpa Aquitiana legloence ips a " err Ns ‘of getondai aie ist breach artes. ghttoon ima facke t¥ warrant 122 |2009 ceTRALIZED BR OPERATIONS recovery 5. proof of diigence in], proot of diigence in the selection and|the — salecilon and ‘supervision of tha|supenvision of the umployees fs natlemployeus «isa available as defense Ditgonco Requiod 4, That agreed upon by the paities 2. Io the ubserice of stipulation, that required by law inthe particular caes 3. IC bath the cantract and law ara silent, Allgonce of a good fathor of a fanly Diligence of Good Faiher of a Family ‘That reasonable diligence which an ordinary prudent person would have done under the sama circumstances, Wogligance and Fraud Distir guishigcd X uO is moroyfnen isan iert [There |abandonment, cause damage or inattention, injury ‘carelessness, oF lack} jet aiigence H ‘waver of iabiily off Waiver of future aud) flue negigence islis veld ‘allowed unless the! ihatute of the obligation] public potiey ‘requires. extraorainary) i penice, ie, "carrion ity cantot estas by ho cours} educed according to sireuinstanees Note. Whea the negligence is vo gross that it ‘amounts to wanton altitide on the part of the obligor, the faws in case af fraud shall apply. AF tho obligor acted In good faith, he shalt bo able only for natural» and probable consequences of the breach of abigation and ‘hich tho pales nave ferebuae or sould hove eas onably foreseen atthe time the oiligation was constituted i 41 1ho obligor acted io bad faith, the bounceries betwcan negligenca and fraud disapprar allogethier. Obligor can be held responsibie for all “damages which may bo. rearonably San Beds College of Faw attributed to the nonpelformanca of the Obligation, Any waiver or renunclatign which is ‘ade inuntelpation of such ia ty is null ana void. If there was contributory nopigance of the. obligeo, tha effect is to reduce ¢F mitigate the stamages which he can recover, if the negligent act or omisgion of the obliges was the proxinate cause of the ovent which lac to-aamage ar Injury sorrpialnad of, he cannot recover : Robbery, por so, tka cemapping, does NOT foreclose the poselbilty of nagiz nce, It fs not a fortuitous event (Sicem, at al. v. Jorge, GR ‘189647, August 8, 2007) IV. BREACH THROUGH CONTRAVENTION OF TENOR OF ORLIGATION: Under Art 1170, the parase “in any manner contravene the teno? of tha obligation includes aot only” any ile act which inmpaire tho strict and fant fulilmant of tho obligation, bit aleo evory kind of ofective performance. Fortuitous event (Art, 1174) An event which could not be foreseen, oF ‘which, though foresean, was Inevitable, Roquisites: 1, Event mus, be independent of the will of the oblyjor, 2 it must be either unforyseeable ‘or inevitable; 3. Must be nf such @ character 25 to at imapssivig st6ee'neprepionr, to fulfil his See emma. Obiigor tidal Be tres Yr bi} paral in tno ifgtabbugeEBENIy inuty re GC Ca CT LAW goin Bede College of Ay Exceptions: 4. When expressly decia’ed by law og, Frticle 652(2), 1168(3), 71268, 1242, 2147, 2148 and 2129 of the Civil Code.) 2, When expressly di.claved by stipulation or contract, 3. When the nature of the obtigetion requires the assumption of rik 4, When the obligo: ls in dafauit or hos Protulsed to deliver the tame thing to 2 oF ‘mote persone who do not have the sante interest (Article 11683). 6. When the object of the prestation fa genecic. Note: + Fhictuation cf currercies ts not considered as a fortvitous evert since the Muctuation Tate Is forseeable. it considered furtutious, it wall set a precedent such that there wil boa shit of burden to banka ‘+ Where the contract: stioulated thet in case of @ fortuitous even, the perlod provided In the contract t:t delivery shall be suspended, the SC tuled that the period of time when’ the cotvract’ was suspended CANNOT be dodini ed fom the term of the nontract beraue to add the seid years lupon the resumptian of the contract would In effect be an extension of the contract (Victorias Plontars Assce. Inc v Vietorios, Miling Co, GR. No C6648, July 25, 1855) USURIOUS TRANSACI'ON (At 1175) Usury - contracting for oF racelving somethit in excess of the amount sllow-ed by law fr tho Toan or forbearance uf money, gocds, > chattels There is no fonger ny celing in inter oe: rates on foans puratint to CB Clrcul?r Na, 224 Issued on Dee. |, 1982. EXTINGUISHMERT..Cl_ INTEREST AND PRIOR INSTALLMENTS (Art. 1178) Revoipt of te principal “or latter instalimont, without reservation 3s tthe interast (or pict instalment) shall give “ist ton disputable presumption that the Interest (or pilsr instalment) has been pels. ‘The presumptions In Artie 1176 do not apply + When there Is a recervation mad> orally or in waiting + tf the receipt does not recite thet It wos tesued for ¢ prrtictlar installment due ar when tho receipt is only dated + Topayment of taxes © shore thera Is nonyysnent of the prior abl gations has been proven REMEDIES OF CREDITOR TO PROTECT GREDIT (Ant 1177) 1, To extiaust the propery in peseession of the drbtor subloct to sxomotiens provided by tow Aacion subronotorla - to be subrogated to ol the rights ond ations of the debtor save those which ave Inherent in his verson. + Subject {0 one wary EXCEPTION ~ it cannot ba exercised tn rights which ‘ra purely parsonal in the arise ‘hat they ara inhient In tho person of the dobtor Requisites: ‘a, Debtor io whom thy tight of action properly periaina musi be indebted to the creditor b. Creditor insist ba Sraludioed by the inaction or {allure of the debtor piocced against tha third person Creditor must have fitst pursued or ethaustod all the properties. of the dobtor which ary not exempted for execution 3. Accion pautinna ~ to impuge all the acts which the debtor mey have “done {9 defreud tham by means of rescissory action at the instance ot the ererlitor who Is prejudiced Requisites: (CASK) a. There must be a groditor prior to silenation: b. Oebior has mata a subsequent contract eanveying a “palrimoniol pra ay e. Bla nettoe has ill otmer_ Jeon Frehiey to eh Hehe ag . Tniaethbeihgt li pee 's trey ht ei in ANE Ss reparty He ae 12s ml EREQNN AID IN CIVILIAN] 123 _124 009 cenaaiaeD pan onEtarions captors ths sito by LAWS vlc ae sly 2 rere’ ty feRsoNAL GUaLincRTION‘e onthnsdfece os wena yn ral are sondrtinwesbigaion™ | 3. Whan prohibited by STIPULATION of the ae PURE OBLIGATION The oifectvity oF extinguishment does not dopend on the fulfitirent or non-fulliimant of @ enndition of, on the explratior of) a tom or Deri, arf immadataly demendabe Note: The quality of immediato demandabilty is not violated when a reasonebly poriod is ‘raniud for performance, GCNDITIONAL OBLIGATION FEvfectvity is subordinated to the fulilment or onefulliimiont of 8 future AND uncertain fact or avent Charactoristies of a Condition: |. Future and uncertain 2 Pest event but unknown to artes he knowledge to Le acquired in the future of & past event which at that foment is Unknown to parties interested » itis only in that sense that the event 18 be deemed tuncertaia) 3, Not impossible: Note: When the debtes binds himself to pay when nis means permit him to Ho vo, the ‘obligation shall be daemed to be |one with a period (Article 1180) | Effocts of fallure to comply with gondition: 1, Failure to comply with the condition miposed on the perfection of] a contact outs in the faliure of the wontract ‘allura to comply wit the condition imposed on the performance of the obligation, gives the other party an option oitker to. fafuso to procead with. the compliance of the obligation ¢r to waive the consition When objigation damandable at gnco: 1. When itis pure 2, When itis subject to a rasotutely conaltion 3. When itis subjact to a rexel petes i Traditional Cia:sifications of Conditions: 1, Suspensive — fulfilment” of condition ‘esulis in acquisition of rights aricing out of he obligation, Resoliitory ~ fulfliruent of the condition restlts in extinguisninent of tights arising cout of tha obligation, 2, Paxestative = fulfiimant ef tie condition depends on the wil of » pany to the obligation, Casual - ifllmant of ihe candiion depends on chance andfor the will of a third person, Mixed ~ ‘uifilinent of conuitien depends parlly on the will of a parly ot obligation ‘and partly on chance andar will of a third porson, 5. Possible -. condition is capable of realaatian according to nature, law, puble policy °F good cust ams Impossible ~ condilon iy ra\‘capable of realization accoraing to nature, law, pubic Policy or good customs 4. Positive ~ involves perfarmance of an act Nogative - involves tha omission of an act 5. Divisibia = susceptible, of partial realization Indivisibre- not susceptinia of partiat realization 8. Conjunstive ~ there ace _ sevaral conditions, which must al be realized Alternative ~ there are suverat conditions, but only one must be realized, 7. Express ~ vondition is stated expressly Implied ~ condition is tact potestativo, mixed, casuar condition (Art. 1181142) ood yey ei LN futhlinsoib OF BS tha} Kcondition;, oie pH teste Kanlvation IAs” or becomes Bn ens Catlege of Law Goan Mede College 94 3 3 comply with 12st i incumbent upow him. Resolutory conel tian Obligation, —bisomes—— dermandal'n immediately after t's vonsttution and rights are Immediately 1304 in the obligae, but fuch ‘rights aro alway subject to the threat or danger ef extinction. Principia of retrovrstivity applies (Art, 1190 par. 1) 2. Bofore futiin:ent Right recogniaud in Art 1188, par. in case of a susensive condition should Tkewise be evollable in obligationr with & resolutory condition, b. Aftertutfitmans Whatever may have baen paid or cellvered by cne oF both of the parties ‘upon the cons itution of the obligation shall have to be teturmed uyon ine {uililment of the condition. There is Fetcrn to the stotus quo. When condition is not fulftled, rights ‘re consolidated end they become absolute Potestative conditfon + When it depenis exclusively upon the will of creditor = condition ang obiigation is val. + When it depends oxctusively upeti the vill of debtor in case of a suspensive cendition = condition and obiigation Are void; to allow such conditon would be to sanction ilusony obligation, ir direct contravention of the principle announced in Ait, 1303, + When it depete s exclusively uzon the will of deblor si: casa of a resoiutary condition = corvitlon and obligation Is valid; the postion of the devier is exacily the aire 48 tho ereilitor in e suspenslve co‘dition and does not render the obligion tisory. Note: if the objigati.: Is a pre-existing ona, ‘and does noi den and for its existence Upon the fulliinen: by the debtor for testalive, only “L19 condlition is vol leaving unaffected: tha obfigalion iteeit, Hera, the condition keposed net on the irth of the obligation but on ite fulfinent (valid obligation) If condition. 1s Uastared wold bu: the obligation is stil vaiMf;tho SC ruted thot in converting the otligaticn into @ pure end domandable ong, af airangenient may be enforsed which is not within the contemplation of tte purtie, The best solution fe to wonnider the parties ao 0 having intended a PERIOD within which the valid obligation is to be complied with such that the creditor should ask the court to fix @ perloc! for cnmalianee, (Patonty v Omega, G.R. No. LA, May 2, 1953) 4, Casual coriditto The obiigation and condition shall take effect, 5. Mixed condition: The obligetion and. condition shall (eke effect Effects of impossible/uniawful condition (Art. 1103}: Effects of impossible conditions 1. Conditional obligation ix volt = beth obligation and e:mekiny are void 2. Condionat obigation 1 valld ~ if eundition is negative, iis ceyerded and obvigation ja renderag pura and valld 3. Only the affected obigation ts void - ifthe obligation Is divisible, the part nol affected by the imponsibie condition shall be val 4, Only the condition Is void « If obligation 1s pre-existing, not depending on fulfilment ‘of the condition whici ia fmpossisie for Ite existence, only (he condition is void 5. Conlon’ considered not Imposed = if impossiblefuniaedct condition is uttachect 'o a simple or temuneeatory donation os weil as to a testamentary disposition, condition 13 considered not impos2d while the objization Is valid Erfosts of posto ss negative onion (Art. 7184-1185) Male sonar oan extipgulghs0fapABaRine:the time expires atte Feber Ihe erent wil At lake place, one, is in negatwe ‘Re te ‘obtgg effective. strom the 2inoment ime Fidlgated.tias.tapyed.oF i iL paeifibone wifont ghat_ the aitnvseangeesaccur, WMERDIEALAG nao. yet Tee inteion fg nto nat gation, e id for ier lesenat ttle MNiriont of coflition fart, IF dee When the fe obliges trom witfon;, prevention is 125 NE 26ORY AID IN CIV AW! 125 12612005 CENTRALIZED BAR OPERATIONS must have beon voluntary or ital in character, 2. Boctine applies unly to suspensive condition, It cari have no apotication to an external contingency which '9 awfully vithin the control of the obligor (Taylor vs. Uy Tieng Pa, GR No. L+16109, October 2, 1922), 3, The mere intention of the debtor to pravent its liappening or the mero placing of Ineffective obstacles to its compliance, without actually preventing fuilliment is ‘oot sufficient (Manrosa), ‘Note: When the voluntary act of the debior dic frat have for lls purpose tne prevention of the fullilment of the condition, i wil not fall undar consiuctive fulfilment. “The some is true when the deblor acts pursuant to a right (Tolentino Vol WV, p. 161} Requisites of Constructive fulfilment: 1, Condition is suspensive 2, Debtor actually prevents the fulfilment of the condition 3. Ho ects veluntarlly Principio of retroactivity In suspensiva conaltion (Art. 1187) 1. In obligations to give + Roto: the condition is only an accidental element of a contract. An obligation can exist even without being subject to a condition + Rule on relroactily has no sppiaton to ool contracts; hey are portected ‘only by delivery of vie object of the obligation; principle nly ‘applies to consonsuul contracts b, Contracts in which the obligation arising therefrom can only be rec'ized with successive peiods or intervals (e.g, lwese, hire °: service, life annul). + Relroactivo effect as 10 the fruits end inerests In obligations 4 a. In Recipies: Obligations: no rovonctivty = rautually compensaad (frits may be natural, industrial or civil) >. In Uniiatera’ Obigations: retroactivity because it is usa gratuitous unless intention was otharwise, as infaried from malice ‘and clroumstances “Te 2, In abligations to do or m2 (o do + No fixed rule; Courts «ra empowered to datormine ‘the revozctive effect of the suspensive condition ‘+ This rule also applies to an obligation w: cosslutory condition (Art, 1790 par. 2 Rights. ponding fulfiiment of suupansive conuitions (Art. 1188) 4. Creditor + May take or bring appropriate actions {or the preservation of his rights + Goes not grant any preference of credit but only aiksns chs. bringing of the proper action fer the preservation of the creditor's rights + Aopiies to resalutoty conion 2. Debtor 2 Fe recover wai seas pad by musiake before the happening of the sulspensive conditions + But if payment isnot! by mistako, debtor 1s ‘teomed to have impllediy vwcived. the condition; he cannot recover wa! he has prematurely palé once the suspensive condition Is tuttited Effects of loss, da'erioration and Improvement in real obligations (Art. 1185) Daring the pandency ofthe conctton: goes out of commeice; disappears in guch @ way that I's existance is unknown er it cannot be rewovered) a. Without a tau» obligation is extng oe ag enpbligction is pdemnity es BDA ye itil eat na ox Mfrs YE wIBfcitor pS thal granted Ans. 679 and San Beda College of Katy She alle oe eere ener! The above rulos apply 19 the folfowing: 4, Determinat things * b, I eve to the naiitgence of the obliver obligor is rt Rabie Note: Acrording 19 wurato: "it fs aubsniter! that whatever ray bo the cause of the lossideterioratio nf the thing Intended a5 @ substitute, ouch Joas oF deterioration hall not render it debtor lable.” 2, Aftor substitution ‘s mace: The loss oF detetloration. of the “ubstitute ‘on uccount. of the obligar’s delay, egligerss or teiud.— obligor is. lable because once substitution is inade, the ‘obligation is convarted Into @ simple one with the sudstituled thing as the object of the obligation, Note: Creditor ‘cannot be compelled to: receive part of ore and part of another undertaking VOINT — OBLIGAT:ON. MANCOMUNADA) The whole cbligation is tobe pald or fulftled proportionately by diferent debtors or demanded proportionately by different creditors, (OBLIGACION SOLIDARY OBLIGATION (OBLIGACION ‘SOLIDARIA) Each one of the dettots is bound (o render, anc/or ach one of the everiiors has a right te demand entire compliace with the prestatton, Nature of & Cotlecthyt Cbiigation (Art. 207) Generel rule: Obiigat'on is prosumed joint if thore Is concurrence (1 several cvecitors OR of ‘several debiors OR J sovetal creditors and debtors In one and thé. same obligation Exceptions: : 1, The obligation ox) easly stated that there 18 solidarity «* The faw requires «eliaarity Nature of he obligttion requires solidarity When a charge «condition ic Imposnd Upon heirs ar logitsec, and the teetamert ‘expressly makes:tho charge or ccndition Jn solidum (Mantes) 8. When a sclitary seaponsibitty is Imouted by a final Jucimont un several defendants Prinelpal Effects of Joint Liability °° 1. Dentand by one creditor upon one debtor, produsns the effects cf dafaul only with respect fo the ctadltar whe demanded and the debtor. on whom the’ damand. was made, but not with respect to others 2. Interuption of reerantion bythe fuditn semand of 05 « ‘upon a debtor, does not banc te other creditors. not interrupt the prescrtption as to. othar debtors 3. Vioos of each oviigation arising from the vreraonal dnfect of a particular deutor or creditor does not affect the abigetion or right of the others 4 Insolvency of «i dettar does not invrease tho responsitilly of his co-debtors, nor does it authorize & creditor. to demand anything from his eo-debtors 5. Delense of res jeitenta Is not extendnd from one debior te another (Tolantino Vol 1V, pp, 219-220) Note: Even if the paitiee stipulated in thelr contract that the obiigction of the deblor. is solidary, but such contrast was superseded by @ JUDICIAL DECISION. arising trom suid contract between tha parties juciclaly eciaring the obligation to be meroly joint, th» sald decision must be enforced In a joint manner (Griental Philppines Company v Aboto, 60 Phil 723) Sclidacy llabilty is cetennined by the tenor of the contract NOT oy judicial admission by the arty. Joint Divisible Obligatina (Art. 1208) aan eae a eg for the paymel here. of the redit ie gon aes: ontyddr iGo paymeRtstMatp-eHEhfonate aha bome by hin BGeonse puraly personal 733 na MEMORY AID IN CIVILLAW 233. 132 [2009 CENTRALIZED BAR OPERATIONS fo one of the debtors, he alone can avail himself of sucti defense, Joint Indivisibia Diigation (Art. 1208) 1, No creditor can act in representation of the other, 2, No dabtor can be compelied 1u answer for the fiabilty of the others; 3. If there are two or more sebtar, the fulliinent of or compliance with the obligation requires the concurrence of al the debtors, although each for his own share 4. I there ate two or morn creditors, the concurrence of collective act of all the ‘radios, although each for his own share, Is also necessary for the enforcamant of the obiigat'on In casa of broach where one of the Joint debtors falls to comply with his. nlastaking, the obligation can no jonge: by fulltled or performed. Cons2quently, I Ip converted into one of indemnity for damages, {In caso of insolv ancy of one of the dabtors, the colhers shall not be lable for his shares. To hold otherwise vould destroy the joint character of the ailigation, Interruption of poriad of prescription: W there are two oF snore creditors or debtors, wil the claim of a creditor addressed to 2 single deblor of the acknowiedgement mado by one of the debtors in favor of one or more of the creditors be suficlent to interrupt the petad of prescription? Two views: 1. Att, 1209 merely providis thet the right of the creditors may be preludiced nly by tholr collective acts, It can therefore be Inferred that should’ the’ act of a. joint editor be per se beneficial to the others, 19 Gct of one Is wulfcient (Marcos), 2 The act of a joint creditor which would ordinary Internlpt the” peried of prescription would not be valid because tho Indivisiole character ef the obligation requires collective action of tno creditors to ba effective (Tolentino). Nola: Accaréing to Jurado, itis submitted that ihe later vie Is more legicat er etn ent rene nar nents aterennrencnet ____ San Byya College of Law Indiviatbilty and Solldarity Distingulehod (Art, 1210) fofers to the]. refp"s to the legal ti| restation ——whichjor vlacium Juris, and! lconsttutes the objecifconsequently to. the| ot the ohilgetion subjecia or partes of| the o2i gation | '2. plurality of supjecte|2. plurality of eubjecta| is not veq red is incispensable 3. in case of breach,|3. wien there | obligation is cunverted|ilabilly onthe part of| into one of indemnity |the dablors because of| for damages because|the - breach, the| the indwvisibity of the|solidanty. mong the| obilgaton is]debiere remains: ‘debtors —are| Ma ether Wabior i not liable if one destor|propiriignately Hable| lis insolvent for te insolvenvy of ‘Solidarity (Art. 1217) i Solidailly may 2xist althoug!. creditors and debtors may no: be boung in the same inanner and by the same periods and conditions. Kinds of solidarity 1. Aative (solvarty aciong ereittors) A vinculum, by vidue of which each of them, in felation to his co-creditors, possesses the character of creditor only with respect to his share in the obligation, but In elation to the common debtors, tepresent all ofthe other erediiors. Effoct: The creation of a relationship of San Beda College yf Lat " " entire obligation riius. the portion’ or shere Which eorrusponds 1) fo. deblor affected by the condition or peril.” Effects of projudtclal: and beneficlal acts (art $212) Each one of the tclisfary creditors mey 49 whatever may te: useful or beneficial to the others, but no: enythiny which may be preluciclal to the fatter. 2, As far ag the debiaris lel are concemed, a Prejudicial act performed by 8 solidary creditor is binding; en beween the soliaary raditsrs, tha credtor who performad such ect shall incu’. the obligation of Indemnifying tho ethers for damages (Castan), Effects of assignmost. of rights Insctidary ‘obligation (Art. 4219) General rule: A solitary creditor CANNOT ‘assign his right because It Is predicated upon, mutual condense . meaning — personal qualification of each creditor had been tsko> Into consideration whan obligation was. ‘constituted, Exceptions: 4. Assignment to co-ereditor 2. Assignment is with consent of co-credite; To whem payment must be medo In solldary obligrtion (Art. 1214) General rule: Poymont may be made to ony of the wolidaty creditors Exception: if domard, judicial or oxtia- Jusiclal, has bee mde by one of them, payment should be mes to him, Effect. of Novation. Cémpansation and Confusion, and. Ruintovlon In Solidary Ovtgation (art. 1276; Ari, 1210-1220) Novation * 1. tia proud, the euler credtor who effected the novatlsh shal relmburee sho othery for damege.i incutred by them; 2. ff It Is" beneficial anit’ ‘he: creditor who effected the’nevéton le able to excite performance! of hii: obligation, - such Croditor shall ba Tet le to the ‘othess for tne share vitich conett ends to them, not only in the obligation, bit als In the benef 3. IR Is effected’ ty’ substituting another person in plece.of {x6 debtor, the tolidary creditor wire effect the novation Is liable for the acts of tha new: debtor in case thera is deficleney in performance: of-ln case damagns are hncurred by the other solidary creditors 38 a result of the substitution; 4. IF it is effected by subrogaling a third person in the rights of lhe solldary creditor responsible for the novation, the abiigation of the debtor sr creditors Is not in reality extinguisned, becanse the felation, between the other crevitors hot eudstituted fn6 the debtors la maintained. Compensation and corfusston 1. Ifeenfasion or comtcensatlon Is partial, the rules regain epplication of paymen! shail apply, without prejudice to the right of ‘thar creditors who have not caused the confusion cr cumnperidation to be reimbursed 10 the extent that thelr righte are diminished ne affected: 2. If the confusion or compcnsation is total, the obligatien ts extinguished, what ie\ left is the ensuing labitty for reimbursement within each-group ~ the creditor causig the confusion or cempensation 1s obliged to reimburse the other creciors; tha deblors benefted by the extinguishments of the obligation ara obliged to reimburse the debtor who made the confusion or compensation possible, Romiseton 1. tit covers the entire obligation, abligaticn is lotally oxtingulshed 2. Ifitis for the bonelit of one of the debtors covering hl entire share, he Is completely released from the craditor/s, {fits for the beneft of one of the debtors and, tof his: share, his ah i AM BROA 133 IAEMORY AIO IN civil. LAWL 133 334 12009 CENTRALIZED BAR OPERATIONS Effoct of Domand Upon A Solldary Debtor (art 1210) ‘The demand made against o1¢ of them shall not bo an obstacle to thase which may subsequently ba direclod against the others 80 long 26 the debt hiss not bear, {uly collected, + The creditor may proceed egainat aay one of the soldary dablors or ugainst all of ther sinniltanoously. + A creditor's right to proceed ageinst the eurely exist Independently of his right to proceed against the principe Note: If @-clalm from one of the solidary debtors has bee. dismissed by @ court on ‘grounds other than the extinguishment of he ‘whiole obligation o that the claim has prescribed, it does nct necessarly mean hat the solldary Indwbtedness cannot be clalmed against the other solidary debtors who were rot impleaded In the. cage or against thiose who were impleaded but whose liablity was found by the court as proper. (Inciong v CA, G.R, No, 96408, Juno 26, 1996) Fefect of Paymant By a Debtor (Art, 1217 And Art, 1218) Fayment made by one of the solidery debiors ‘extinguishias the obligation. + if two or more solldary debtors offer to pay, the creditor may crouse which offer to accept. + Solidary debtor who made the paymant ‘merely entitles him tc claim trom his co- deblers the share which corrasoonds to ‘them with interest; trom the. tina of payment. It does not creas a real caee cf subrogation + Mo-telmbursement if payn.ent Is’ nade aiter tha obligation has preecilbed or has become ‘ilegal. If. payment ws made before the debt bacame dus, no interest during tha intervening. period may be demanded, 4 Whon ‘one of the sulidary debtors caunot reimburse his. share to, the debtcr paylng the obligation due to Insolvency, such share chalt be sone Ly all his co-debtore, In proportion to the debt of each, : © The recaiving creditor is Jointly lable to the ‘otnars for thei! correspanding shares Effect’ of loss or - ‘possiblity of portormarce In. solldery obligation (Art ‘4224 1. Tit r not due to the fault and before delay of the aolidary debiore, tha obligation is exineuished, 2. If the {oss or Impossisiity is due to the fav! of one of the golldsry debtora OR cue to o fortuitous event after ona of the sotidary debtors hud alraady incurred in delay, the obligation ts converted into an abiigation of indemnity tor damages Lut the validary character of the obilgation roinains, 1 Dofonses Available 19 4, Solldar Dobtor (Art, 1222) 1. Defenses derived from the very nature of the obligation 2, Defenses personal to ira or pertaining fo his vain share 3, Cefenses personal to 1.0 others, but only ‘8 regards that aart of tie debt for wie the latter are resnonsible DIVISIBLE OBLIGATIONS “Those which have a8 thelr abject a prestaion which is susceptible of: partial performance without tne essence of obligation chaged. Note: Divisiblity! Inciviiblty of the ciligation ‘refers to the performance of the prestation and rnot to the thing which is the object thereof, Divitultyindlvisiolity of te thing rofers to the prestatlon itself INDIVISIBLE OBLIGATIONS, ‘Those which have as thel- object a prostsloh it +_ Sui Beda College of Hats

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