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My Oasis: Self-Made Reviewer On Obligation and Contracts
My Oasis: Self-Made Reviewer On Obligation and Contracts
My Oasis: Self-Made Reviewer On Obligation and Contracts
DISCLAIMER: Not all grammars and punctuations are technically correct because I use "keywords",
"shortcuts" for easy understanding and memorization, as for myself.
4 ELEMENTS OF OBLIGATION
5 SOURCES OF OBLIGATION
1. LAW
2. CONTRACTS
Rule: The creditor has personal right (right to ask for delivery) from the time the obligation to deliver
arises.
But NO real right (right enforceable against the whole world) until it is delivered.
3 KINDS OF FRUITS
1. Determinate
a. Performance
b. Damages
2. Generic
a. Performance
b. Damages
1. Damages
Exceptions:
1. Law states
2. Stipulation/contract states
3. Assumption of risk
4. Delay
5. Debtor promises deliver to 2/more persons who do not have same interest (bad faith)
- extinguish the obligation if determinate; generic does not extinguish the obligation
2. If debtor fails to do, it shall be DONE AT HIS EXPENSE, same with doing the contravention; poorly
done be undone.
3. In obligation not to do, and obligor does what is forbidden, shall be UNDONE AT HIS EXPENSE.
1. Default/mora
2. Fraud/dolo
3. Negligence/culpa
3kinds
CONCEPT OF DELAY
Exceptions:
1. Law states
2. Obligation states
EFFECTS OF DELAY
1. Damages
2Kinds
a. Dolo causante/Causal fraud – fraud in obtaining consent; consent is defective, contract is voidable.
Remedy: annulment
3Kinds
2. Receipt of latter installment w/o mention of prior installment, presumed prior installment is paid also.
1. Exact payment
TRANSMISSIBILITY OF RIGHTS
Exceptions:
1. Law states
2. Contract states
10 Kinds of Obligation
1. Pure
2. Conditional
3. Alternative
4. Facultative
5. Joint
6. Solidary
7. Divisible
8. Indivisible
9. Obligation w/ a period
1. PURE OBLIGATION
2. CONDITIONAL OBLIGATION
2Kinds
4. The condition that happens in INDETERMINATE time, obligation only effective at arrival.
RULES in case of Loss, Improvement, or Deterioration of thing during the pendency of condition
1. LOST
a. w/ debtor’s fault - (1) cancel obligation & damages; or (2) fulfill obligation w/ damages
3. IMPROVEMENT
b. at expense of debtor – debtor no right than that granted to usufructuary (debtor no right to
compensate amount for improvement)
General Rule: The obligation becomes effective retroactively to the day obligation was constituted.
Exceptions:
1. In reciprocal obligation, fruits & interests during pendency of condition shall compensate each other.
2. In unilateral obligation, debtor gets fruits & interests unless there is a contrary intent.
1. Extinguish obligation.
2. Both parties restore what they received plus fruits & interests.
3. The rule on L, D, or I will apply to person who has to return the thing.
When one of debtors in reciprocal obligation does not comply w/ his obligation
1. The right of injured party is (1) cancel contract & damages; or (2) fulfill obligation & damages
3. OBLIGATION W/ A PERIOD
1. Little by little
2. In partial payment
3. Payable ASAP
6. When I am able to
PERIOD CONDITION
certain uncertain
1. Debtor is insolvent.
3. Impairment of guarantees/securities.
4. Failure to furnish guarantees/securities promised.
5. Violation of undertaking.
4. ALTERNATIVE OBLIGATION
5. FACULTATIVE OBLIGATION
1. If 1 of prestations lost through fortuitous event, shall still be perform by choosing (creditor) from the
remainder.
2. If 1 of prestations lost through debtor’s fault, creditor may claim any of remainders w/ damages.
3. If ALL prestations lost through debtor’s fault, creditor choose price w/ damages.
1. If there is a loss/deterioration of thing intended as substitute, debtor is NOT liable if NOT HIS FAULT.
But if substitution is already made, debtor is liable for loss of substitute when in DELAY, NEGLIGENCE, or
FRAUD.
6. JOINT OBLIGATION
7. SOLIDARY OBLIGATION
- each one of debtors has right to render or each one of creditors has right to demand the entire
compliance w/ prestation
MAXIMS SYNONYMS
1. Law states
2. Stipulation states
8. DIVISIBLE OBLIGATION
- prestation is capable of partial performance
9. INDIVISIBLE OBLIGATION
- one w/ accessory undertaking attached to obligation to assume greater liablity in case of breach/non-
fulfillment of obligation
General Rule: Penalty takes the place of damages & interest in case of non-compliance.
Exceptions:
1. Stipulation states.
1. Payment or performance
2. Prescription
3. Compensation
4. Confusion/merger
5. Condonation/remission
7. Annulment
8. Rescission
9. Novation
1. PAYMENT/PERFORMANCE
2 PLACE OF PAYMENT
2. If w/o agreement
a. Application of payment
b. Cession
d. Dacion in payment
a. APPLICATION OF PAYMENT
- designation of debt to w/c payment must be applied when debtor has several obligations of same kind
in favor of same creditor.
2. If debtor does not avail, creditor can give him receipt designating the debt from which payment will
be applied.
3. If debtor accepts the receipt, he cannot complain unless THERE IS just cause to invalidate the
contract.
b. CESSION
- debtor abandons ALL his property for creditor’s benefit to obtain payment from proceeds of his
property
5. Creditors must sell the properties & apply the proceeds to their respective credits proportionately.
1. Consent of creditor
TENDER OF PAYMENT – act of offering the creditor what is due to him w/ a demand that the creditor
accept it
CONSIGNATION – act of depositing thing due w/ the court when creditor cannot/refuses acceptance of
payment
5 REQUISITES OF CONSIGNATION
1. Debt due.
1. Creditor is absent/unknown.
1. Determinate thing.
3. No delay.
3. CONDONATION/REMISSION
1. It must be gratuitous.
2. Accepted by obligor.
3. Obligation is demandable.
4. CONFUSION/MERGER
5. COMPENSATION
3. No retention/controversy by 3rd person.
4. 2 debts are due & demandable.
1. As to effect
2. As to origin or cause
a. LEGAL – by law
6. NOVATION
- substitution/change of obligation
- substitution of debtor
- subrogation of creditor
3. Changing person of the parties & the objects of principal condition. (MIXED NOVATION)
4 REQUISITES OF NOVATION
2REQUISITES
3REQUISITES
7. SUBROGATION
- change of creditor
2 KINDS OF SUBROGATION
2. LEGAL – by law
a. creditor pays another preferred creditor even w/o debtor’s knowledge
c. CAUSE/CONSIDERATION
d. FORM
e. DELIVERY
3. ACCIDENTAL – various particular stipulations that may be agreed upon by contracting parties
According to:
1. PERFECTION/FORMATION
2. PARTIES OBLIGATED
3. CAUSE
c. REMUNERATORY – something is given for benefit/service that had been rendered previously
4. RISK OF FULFILLMENT
5. IMPORTANCE
c. PREPARATORY – contract not an end by itself but a means thru w/c other contracts may be made
(eg. agency)
6. NAME
b. INNOMINATE – not given special name (eg. I give that you may give)
7. SUBJECT MATTER
3 STAGES OF CONTRACT
a. Law
b. Morals
c. Good customs
2. MUTUALITY OF CONTRACTS
- the contract must bind both parties; its validity/compliance cannot be left to the will of one of them
3. RELATIVITY OF CONTRACTS
- Contracts take effect only between the parties, their assigns & heirs except when there are rights &
obligations not transmissible:
4. CONSENSUALITY OF CONTRACTS
Exceptions:
5. OBLIGATORINESS OF CONTRACTS
- The contract, once perfected, has the force of law between parties which bound to comply in good
faith
1. Agreement of parties
4. Customs of place
CONSENT
5 REQUISITES OF CONSENT
3. No vitiation of consent
7 RULES ON OFFER/ACEPTANCE
1. An offer must be certain.
2. Business advertisements for sale are NOT offers but ONLY invitations to make an offer.
4. An acceptance made by letter/telegram does NOT bind offeror EXCEPT from the TIME it came to his
knowledge.
5. An offer made through an agent is accepted from the TIME the acceptance is done through an agent.
6. An offer is ineffective upon death, insanity, insolvency, of EITHER party BEFORE acceptance is made.
3 persons who CANNOT GIVE CONSENT to a contract (if entered into, contract is voidable)
1. UNEMANCIPATED MINORS
DEMENTED PERSON – NOT exactly insane; difficult to distin-guish right from wrong
LUCID INTERVAL – period when an INSANE has acquired SANITY temporarily, therefore, capacitated to
enter into a valid contract
5 VICES OF CONSENT
1. MISTAKE/ERROR
2. FRAUD/DECEIT
3. VIOLENECE
4. INTIMIDATION
5. UNDUE INFLUENCE
1. MISTAKE/ERROR
4 RULES ON MISTAKE
1. Mistake to identity/qualifications of either of parties will vitiate consent ONLY when IT is the principal
cause of contract.
4. When one of parties is unable to read or the contract is in language not understood by him, &
mistake/fraud is alleged, the person enforcing the contract must FULLY explained the terms to him.
2. FRAUD/DOLO
- when through insidious words/machinations of one of the parties, INDUCED the other to enter into a
contract, & w/o them, he will not agree.
7 RULES OF FRAUD
2. Fraud should be SERIOUS (dolo causante) & SHOULD NOT be done by BOTH parties to make
contract voidable.
4. Usual exaggerations in trade, when other party know the “real” facts, is NOT FRAUD.
5. A mere expression of opinion is NOT FRAUD UNLESS made by an expert & the other party relies on his
special knowledge.
6. Misrepresentation made in good faith is NOT FRAUD but may constitute an error.
3. VIOLENCE
2 RULES ON VIOLENCE
1. Serious/irresistible force is employed w/c constitutes the reason why one entered into a contract.
4. INTIMIDATION
- 1 of the parties is compelled by a reasonable & well-grounded fear of an imminent & grave evil upon
his person/property to give his consent.
3 RULES ON INTIMIDATION
1. Age, sex, & condition of person must used to determine the degree of intimidation.
3. A threat to enforce one’s claim (claim must be just & legal), DOES NOT vitiate consent.
VIOLENCE INTIMIDATION
External Internal
5. UNDUE INFLUENCE
- a person takes improper advantage of his power over other’s will, depriving the other to his reasonable
freedom of choice.
1. There is a person who takes improper advantage of his power over other’s will, depriving the other to
his reasonable freedom of choice.
2. Undue influence ANNULS obligation although it is DONE by 3 rd person not part of contract.
3. To constitute undue influence, ff circumstances must be considered: (1) confidential, family, spiritual,
& other relations of parties; or (2) the aggrieved party is suffering from mental weakness; or (3)
ignorant; or (4) in financial distress.
SIMULATION OF CONTRACT
b. purpose is contrary to law, morals, good customs, public order, public policy
4 REQUISITES OF CAUSE
2. It exists.
3. It is lawful.
4. It is true.
LESION
RULES ON LESION
a. Fraud
b. Mistake
2 FORM OF CONTRACTS
1. Contracts in writing
e. Stipulation to reduce common carrier’s extraordinary diligence & to limit its liability.
c. Partnership where real property/rights is contributed; or when capital contribution exceeds P3000.
REFORMATION OF INSTRUMENTS
- REMEDY in equity in w/c a written instrument is made/construed to the REAL intention of parties when
there is an error/mistake.
3. One party was mistaken & the other knew/believed that the instrument did not state their REAL
agreement.
4. Ignorance, lack of skill, negligence, or bad faith of person drafting the instrument DOES NOT state the
TRUE INTENTION of parties
5. Two parties agree on mortgage/pledge of personal/real property BUT the instrument states the
property is sold ABSOLUTELY, or w/ the right to repurchase.
2. Will.
2. VOIDABLE – valid until annulled; has ALL essential requisites but because of defect in consent,
contract may be annulled.
3. UNENFORCEABLE – cannot be sued/enforced unless ratified; no effect NOW but may take effect
upon ratification.
5 RESCISSIBLE CONTRACTS
1. Those entered by guardians & suffered LESION by more than ¼ of value of the value that is the
OBJECT.
3. Those undertaken in FRAUD of creditors when the creditors cannot further claim.
3 VOIDABLE CONTRACTS
3 UNENFORCEABLE CONTRACTS
1. Those entered in name of other person, or who acted BEYOND his powers.
7 VOID/INEXISTENT CONTRACTS
5. Those whose CAUSE/OBJECT/PURPOSE is contrary to law, morals, good customs, public order, or
public policy.
©Arleen Dadizon
26 comments:
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Thanks
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thank you so much! i was able to answer my midterm exam confidently because of this :)
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thank you po :)
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thankyou so much sa gawa mong OBLICON reviewer. very summarize plus handy pa
sya. :) Godbless you!
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AnonymousDecember 22, 2016 at 5:06 AM
ty
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Thank you. Big help for those who need it, like me😅😇❤
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