OBLICON Reviewer (1)

PRESCRIPTION

 10 years  4 years
1. Written contract 1. Injury to rights of plaintiff
2. Obligation created by la 2. Quasi-delict
3. Judgment  1 year
 6 years 1. Forcible entry & detainer
1. Oral contract 2. Defamation
2. Quasi-contract  Others – 5 years from right of action

OBLIGATION
 Definition – an obligation is a juridical relation whereby one person may demand from another
the observance of a determinative conduct, and in the case of breach, may demand satisfaction
from the assets of the latter
 Elements
1. Creditor – possessor of right
2. Debtor – has the duty to fulfill obligation
3. Object – subject of obligation
4. Juridical tie – reason of obligation
5. Form – manner of manifestation of obligation
 Kinds
1. Sanction
a. Civil – judicial process
b. Natural – law
c. Moral - conscience
2. Subject matter
a. Real – to give
b. Personal – to do or not to do
3. Affirmative/Negative-ness
a. Positive – to give or to do
b. Negative – not to do
4. Persons obliged
a. Unilateral – one party is bound
b. Bilateral – both parties are bound
 Subjects
1. Law – set forth in the Civil Code or special laws
2. Contracts – meeting of minds
*Contracts always result in obligations, but not all obligations come from contracts
3. Quasi-contracts
a. Unauthorized management – voluntarily taking charge of another’s property
w/o owner’s consent (e.g. time of calamity)
b. Undue payment – receiving something when there is no right to demand it (e.g.
excessive change)
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4. Delicts – arising from criminal offenses, set forth in the RPC and other penal laws (e.g.
restitution, reparation, indemnification)
5. Quasi-delicts – a fault or negligence causing damages
 Delivery – transfer ownership, makes right of obligor from personal to real
1. Actual – physical exchange
2. Constructive – implied
a. Symbolical tradition (e.g. keys)
b. Traditio longa manu – mere consent (e.g. pointing out a car)
c. Traditio brevi manu – short hand (e.g. tenant buys house he is renting)
d. Traditio constitutum possessorium – opposite of brevi manu (e.g. owner sells
house he owns and becomes tenant)
e. Execution of legal forms and solemnities
 Diligence – first effect of creation of obligation
1. Agreed by parties
2. Required by law
3. Good father of a family
 Grounds for Breach/Liability
1. Default – to put debtor in default, extrajudicial or judicial demand is needed
a. Kinds
i. Mora solvendi – on part of debtor
ii. Mora accipendi – on part of creditor
iii. Compensatio morae – both parties
b. Exceptions to demand
i. Law provides (e.g. obligor shall incur in delay if he fails to fulfill, or that
no demand is necessary)
ii. Obligation provides
iii. Time is of the essence in the contract
iv. Demand would be useless (e.g. obligor cannot perform)
v. Obligor has expressly acknowledged delay
2. Fraud – intentional evasion of fulfillment
a. Causal – important, vitiates consent
b. Incidental
3. Negligence – stipulations are strictly construed against party in a higher position
a. Contractual – results in breach of contract
b. Civil – quasi-delicts
c. Criminal – Art 365, RPC
4. Violation of terms of obligation
 Damages
1. Moral – for mental and physical anguish
2. Exemplary – to set an example
3. Nominal – when no other kind may be recovered
4. Temperate – when exact amount cannot be determined
5. Actual – actual losses
6. Liquidated – by agreement
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 Fortitious event – general rule is no one is liable

1. Kinds
a. Act of God – independent of men (e.g. natural calamities)
b. Force majeure – dependent on men (e.g. wars, riots, strikes)
2. Characteristics
a. Independent of will of debtor
b. Impossible to foresee/avoid
c. Must render it impossible for debtor to accomplish obligation in a normal
manner
3. Exceptions
a. When declared by law – bad faith, default
b. Declared by contract
c. Doctrine of created risk – nature of obligation requires assumption of risk
 Rights of Creditors (General)
1. Demand exact payment
2. Exhaust debtor’s properties
3. Subrogatory action
4. Rescind acts of debtor (e.g. fraudulent sale) – right to cancel the contract in case of non-
fulfillment of one party in reciprocal obligations
5. Others – sue in court, ask for security if debtor is about to be insolvent, ask the court to
prevent alienation or concealment

CONDITIONS

 Primary kinds of obligation

1. Pure – without condition or term, due and demandable at once
2. Conditional - with condition, or an uncertain event which wields an influence on a legal
relationship
*Sufficient compliance – conditions are deemed satisfied and considered as if all terms
had been complied when obligor does all in his power to comply
 Kinds of conditional obligations
1. Happening
a. Suspensive – gives rise/creates the obligation. If condition never happens, it’s as
if the obligation ever existed
*Effects of fulfillment – retroacts to the day the obligation was constituted,
except in relation to fruits or interests or when it has prescribed.
i. Loss
*W/o fault of debtor – obligation is extinguished
*Fault of debtor – pay damages
ii. Deterioration
*W/o fault of debtor – impairment is borne by creditor
*Fault of debtor – creditor may choose between rescission and
fulfillment of obligation, with indemnity for damages
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iii. Improvement
*By its nature or time – benefit of creditor
*At the expense of debtor – no other right that that granted
b. Resolutory – extinguishes the obligation, also demandable at once
*Effects of fulfillment – obligation is extinguished, restore what was received
along with fruits, same rules with suspensive in terms of LDI (1189)
2. Will
a. Potestative – depends on will of debtor. Void if suspensive, valid if resolutory
b. Casual – depends on chance or will of 3 rd person
c. Mixed – partly on both
3. Divisibility
a. Divisible – capable of partial performance
b. Indivisible – incapable
4. Affirmative/Negative-ness
a. Positive – to perform
b. Negative – to omit
5. Fulfillment
a. Possible – capable of fulfillment
b. Impossible – incapable
i. Impossible – logically incorrect
ii. Illegal – prohibited by good customs
6. Statement
a. Express – stated
b. Implied – merely inferred, based on actions of parties
7. Number of conditions performed
a. Conjunctive – all conditions must be performed
b. Alternative – out of two or more prestations, only one is due.
*General rule – right to choose belongs to debtor, except when such right is
expressly granted to creditor. Choice must be communicated to take effect.
i. Choice of debtor
*Only one is choice is practicable – debtor loses right of choice.
*Cannot choose because of creditor’s acts – debtor may rescind
contract with damages
ii. Choice of creditor
*Loss through fortitious event – deliver remaining choices
*Loss through fault of debtor – creditor may claim any of the
remaining choices, or the price of that which was lost w/ damages.
If all are lost, choice shall fall upon the price of any of the items
c. Facultative – only one prestation as agreed but obligor may substitute. In case
of fortitious event and principal object is lost, obligation is extinguished and
substitute is not necessary
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PERIOD

 With term or period – a certain length of time which determines effectivity or extinguishment
(e.g. a specific year, death, etc.)
*Effects of arrival of the day certain – same rules with suspensive in terms of LDI (1189)
1. Knowledge of date
a. Definite – exact date/time is known
b. Indefinite – date of happening is unknown but is sure to happen
2. Grant
a. Legal – period is granted under the law
b. Conventional – agreed by parties
c. Judicial – fixed by courts. Courts determine by considering the time probably
contemplated by the parties
i. Will of debtor - creditor should ask court to fix the term, demand of
fulfillment can only be made once term arrives. All actions before such
are deemed premature
ii. Inferred that a period was intended
3. Effect
a. Ex die – suspensive effect (keyword: beginning)
b. In diem – resolutory effect (keyword: until)
 Benefit of Establishment of Term - general rule is that term is for the benefit of debtor or
creditor. Debtor cannot pay and creditor cannot demand prematurely
1. Both (e.g. interest is stipulated, protection from depreciation)
2. Debtor (e.g. loan w/o interest)
3. Creditor