DIFFERENT KINDS OF OBLIGATION 1.

Simple Obligation
2. Compound Obligation
I. Pure and Conditional Obligations a) Conjunctive Obligation
A. Pure Obligation b) Distributive Obligation
B. Conditional Obligation (1) Alternative Obligation
1. Characteristics of a Condition (2) Facultative Obligation
a) Future and Uncertain B. Meaning of Alternative Obligation
b) Past but Unknown C. Meaning of Facultative Obligation
2. Effect of Happening of Condition D. Alternative and Facultative
3. When is an Obligation Obligations Distinguished
Demandable at Once
4. Classification of Conditions IV. Joint and Solidary Obligation
a) As to Effect A. Kinds of Obligations According to the
(1) Suspensive Number of Parties
(2) Resolutory 1. Individual Obligation
b) As to Form 2. Collective Obligation
(1) Express B. Meaning of Joint Obligation
(2) Implied 1. Collective Obligation Presumed to
c) As to Possibility be Joint
(1) Possible 2. Words Used to Indicate Joint
(2) Impossible Liability
d) As to Cause or Origin C. Meaning of Solidary Obligation
(1) Potestative 1. When Obligation is Solidary
(2) Casual 2. Words Used to Indicate Solidary
(3) Mixed Liability
e) As to Mode 3. Solidary Not Presumed
(1) Positive
(2) Negative V. Divisible and Indivisible Obligations
f) As to Number A. Meaning of Divisible Obligation
(1) Conjuctive B. Meaning of Indivisible Obligation
(2) Disjunctive C. Test of Distinction
g) Divisibility
(1) Divisible VI. I with a Penal Clause
(2) Indivisible A. Meaning of Principal Obligation
B. Meaning of Accessory Obligation
II. Obligation with a Period C. Meaning of Obligation with a Penal
A. Meaning of Obligation with a Period Claluse
B. Meaning of Period or Term D. Meaning of Penal Clause
C. Period and Condition Distinguished E. Purpose of Penal Clause
1. As to Fulfillment F. When Penalty may be Imposed
2. As to Time G. Effect of Nullity of the Penal Clause
3. As to Influence on the Obligation H. Effect of the Nullity of the Principal
4. As to Effect, When Left to the Obligation
Debtor’s Will
5. As to Retroactivity of Effect
D. Kinds of Period or Term
1. According to Effect
a) Suspensive (ex die)
b) Resolutory period (in diem)
2. According to Source
a) Legal Period
b) Conventional or Voluntary
Period
c) Judicial Period
3. According to Definiteness
a) Definite Period
b) Indefinite Period
E. When Obligation can be Demanded
Before the Lapse of Period

III. Alternative and Facultative Obligations

A. Kinds of Obligation According to
Object

EXTINGUISHMENT OF AN
OBLIGATION
I. Causes of Extinguishment of
an Obligation
II. Payment or Performance
A. Meaning of Payment or
Performance
B. When Debt is Considered Paid
C. Persons from Whom the
Creditor Must Accept Payment
D. Persons to Whom Payment Shall
be Made
E. Legal Tender
F. Place Where Obligation Shall be
Paid
G. Special Forms of Payment
1. Dation in Payment (Dacion
en pago)
2. Application of Payment
a) Concept of Application of
Payment
b) Requisites
c) Rules on Application of
Payment
d) Application of Payment to
Most Onerous Debt
3. Payment by Cession
a) Concept of Payment be
Cession
b) Requisites
c) Effect of Payment by
Cession
d) Dation in Payment and
Cession Distinguished
e) Tender of Payment and
Consignation
(1) Tender of Payment
Defined
(2) Consignation Defined
(3) Requisites of Valid
Consignation
H. Effect of Impossibility of
Performance
1. Physical Impossibility
2. Legal Impossibility
I. Effect of Difficulty of
Performance
III. Loss of the Thing Due
A. When a Thing is Considered Lost
B. When Loss of Thing Will
Extinguish an Obligation to Give
C. When Loss of Thing Will Not
Extinguish Liability
D. Effect of Loss of a Generic Thing
IV. Condonation or Remission
of Debt
A. Meaning of Condonation or
Remission
B. Requisites of Condonation or
Remission
C. Kinds of Remission
D. Effect of Renunciation of the
Principal Debt on the Accessory
Obligation
V. Confusion or Merger of Right
A. Meaning of Confusion or Merger
B. Reason or Basis for Confusion
C. Requisites of Confusion
VI. Compensation
A. Meaning of Compensation
B. Object of Compensation
C. Compensation and Confusion
Distinguished
D. Kinds of Compensation
1. By its effect or extent
a) Total
b) Partial
2. By its Cause or Origin
a) Legal
b) Voluntary
c) Judicial
d) Facultative
E. Requisites of Legal
Compensation
VII. Novation
A. Meaning of Novation
B. Dual Function of Novation
C. Kinds of Novation
D. Requisites of Novation
 CONTRACTS 3. Meaning of Acceptance
4. Option Contract
I. General Provisions 5. Option Money Distinguished
A. Meaning of Contract from Earnest Money
B. Contract and Obligation 6. Business Advertisements
Distinguished Generally Not Definite Offer
C. Meaning of a Valid Contract 7. Advertisements for Bidders
D. Freedom to Contract are Generally Not Definite
Guaranteed Offers
E. Limitations on Contractual 8. Persons who Cannot Give
Stipulations Consent
F. Contract Must Not Be Contrary 9. Contracts Entered During
to Law, Morals, Good Customs, Lucid Intervals
Public Order and Public Policy 10. Effect of Drunkenness and
G. Classification of Contract Hypnotic Spell
According to Its Name or 11. Other Special
Designation Disqualifications May Be
1. Nominate Contracts Provided by Law
2. Innominate Contracts 12. Characteristics of Consent
a) Kinds of Innominate 13. Vices of Consent
Contract a) Error or Mistake
b) Rules Governing b) Violence or Force
Innominate Contracts c) Intimidation or Threat or
H. Contract Binds Both Contracting Duress
Parties d) Undue Influence
I. Person Affected by a Contract e) Fraud or Deceit
1. General Rule 14. Simulation of Contract
2. Exception a) Absolute Simulation
3. Cases when Strangers or b) Relative Simulation
Third Persons Affected by a B. Object
Contract 1. Concept of Object of Contract
4. Meaning of Stipulation Pour 2. Kinds of Object of Contract
Autrui 3. Requisite ofThings as Object
5. Requisites of Stipulation of Contract
Pour Autrui 4. Requisites of Services as
J. Classification of Contracts Object of Contract
According to Perfection 5. Right as Object of Contract
1. Consensual Contract 6. Kinds of Impossibility
2. Real Contract a) Physical
3. Solemn Contract (1) Absolute
K. Stages in the Life of a Contract (2) Relative
1. Preparation or Negotiation b) Legal
2. Perfection or Birth C. Cause of Contract
3. Consummation or 1. Meaning of Cause
Termination 2. Cause Distinguished from
L. How Contracts are Perfected Object
1. In Consensual Contracts 3. Motive
2. In Real Contracts 4. Cause Distinguished from
Motive
II. Elements of a Contract 5. Requisites of Cause
A. Consent 6. Effect of Absence of Cause
1. Meaning of Consent 7. Effect of Failure of Cause
2. Meaning of Offer 8. Effect of illegality of Cause
 9. Effect of Falsity of Cause 2. Binding Force of Voidable
Contracts
III. Form of Contracts 3. Kinds of Voidable Contracts
A. Meaning of Form of Contracts 4. Meaning of Annulment
B. Classification of Contract 5. Ratification
According to Form a) Meaning of Ratification
1. Informal or Common or b) Effect of Ratification
Simple Contract c) Kinds of Ratification
2. Formal or Solemn Contract d) Requisites of Ratification
C. Rules Regarding Form of C. Unenforceable Contracts
Contract 1. Meaning of unenforceable
D. Form for Validity of Contract Contracts
E. Contracts which Must Appear in 2. Binding Force of
a Public Document Unenforceable Contracts
3. Kinds of Unenforceable
IV. Interpretation of Contracts Contracts
A. Meaning of Interpretation of 4. Agreements Within the Scope
Contracts of Statute of Frauds
B. Literal Meaning Controls when 5. Ratification of Contracts
Language Clear infringing the Statute of
C. Evident Intention of Parties Frauds
Prevails Over Terms of Contract 6. When Unenforceable
D. Contemporaneous and Contract Becomes a Voidable
Subsequent Acts Relevant in the Contract
Determination of Intention 7. When Unenforceable
E. Special Intent Prevail Over a Contract Becomes a valid
General Intent Contract
F. Interpretation of Stipulation D. Void or Inexistent
with Several Meanings Contracts
G. Interpretation of Various 1. Meaning of Void Contracts
Stipulations of a Contract 2. Meaning of Inexistent
H. Interpretation of Words with Contracts
Different Significations 3. Characteristics of a Void or
I. Resort to Usage or Custom as Inexistent Contract
Aid in Interpretation 4. Instances of Void or
J. Interpretation of Obscure Words Inexistent Contracts
K. Rules in Case Doubts Impossible
to Settle

V. Kinds of Defective Contracts

A. Rescissible Contract
1. Meaning of Rescissible
Contract
2. Binding Force of Rescissible
Contract
3. Meaning of Rescission
4. Requisites of Rescission
5. Cases of Rescissible
Contracts
B. Voidable Contracts
1. Meaning of Voidable
Contract