JANNELLA SARMIENTO

OBLIGATIONS AND CONTRACT REVIEWER PT.1

ART. 1156-1162
o Obligation - a juridical necessity to give to do or not to do.

Requisites
1. Active subject- (obligee) entitled to demand
2. Passive subject- (obligor) has a duty
3. Prestation/Object- subject matter
4. Juridical/Legal tie- efficient cause; binds or connect the parties.

NATURE OF OBLIGATION:

o Civil obligation is positive law so enforceable by court

o Natural obligation is based on natural law so not enforceable by court action.

KINDS OF OBLIGATION; SUBJECT MATTER

1. Real obligation- to give
2. Personal obligation- to do; not to do.

Sources of obligation
1. Law - imposed by law itself
2. Special laws - laws that's not contained in the Civil code
3. Contract - arise from stipulation of the parties; meeting of minds between 2 person
o Breach of Contract - failure to comply obligation w/o legal reason

o Compliance in good faith - sincerity and honesty must observed

 o Quasi contract - lawful, voluntary or unilateral act; no one shall be unjustly enriched at
the expense of other
o Negotiorium gestio - voluntary management; without consent of latter.

o Solutio indebiti - no rights to demand; unduly delivered thru mistake.

o Crime - civil liability; consequence of criminal offense

o Quasi delicts - damage caused thru act or omission

Civil liability (Delicts)

SCOPE:
1. Restitution - returning losts things
2. Reparation- claiming the obligation for the family of victim
3. Indemnification– damages

ART. 1163-1178
NATURE AND EFFECT OF OBLIGATION
 Determinate if specific or particularly designated; debtor cannot substitute
 Generic if not determinate; cannot be pointed out; debtor can give anything

Why to know?
 Loss of determinate thing through fortuitous event extinguishes obligation.

Obligation of one obliged to give a determinate thing

1. To take care of thing with the diligence of a good father of family unless agreement or law
requires another standard of care
2. To deliver the accessions and accessories
o Accessions - addition or improvements upon a thing (principal)

o Accessories - joined to or included with a thing; completion.

3. To deliver the fruits of the thing

KINDS OF FRUITS
o Natural fruits - products of the soil

o Industrial fruits - produced by lands thru labor

o Civil fruits - virtue of a juridical relation

The creditor has personal right to the fruit from the obligation to deliver arises but no real
right to it.
o Personal right - right to demand; can enforced by 1 person to another

o Real right - right or interest over specific thing; enforceable against the world

REMEDIES OF CREDITOR

If the debtor fails to*

*deliver determinate thing *deliver generic thing
 compel to make delivery  ask debtor to comply at debtor expense
 demand damages  demand damages to debtor

Grounds for liability to pay damages

1.fraud - (deceit or dolo) intentional dishonesty
o DOLO INCIDENTE - committed in the performance

o DOLO CAUSANTE - execution of contracts

2. Negligence - (fault or culpa) voluntary act or omission; no bad faith

o CULPA CONTRACTUAL - negligence in contracts; breach

o CULPA AQUILIANA - (civil) not supported preexisting contract; tort or quasi-delict

 o CULPA CRIMINAL - commission of a crime

3. Delay (Mora)
o Ordinary - merely failure to perform obligation on time

o Legal - failure to perform on time which constitue breach of obligation

o MORA SOLVENDI - debtor's delay; to give or to do

o MORA ACIPIENDI - creditor's delay; to accept performance

o COMPENSATIO MORAE - delay of obligors in reciprocal obligation

4. Contravention of the tenor of the obligation - violations of the terms and conditions in
obligation

Damages
 harm done
 some of money that may be recovered in reperation for the harm done.
o Injury-wrongful unlawful tortious act that causes harm to others.

Kinds of damages
A. Actual or compensatory
B. Moral
C. Nominal
D. Temperate or moderate
E. Liquidated damages
F. Exemplary or corrective damages

Proof of precutionary loss

A. Actual - proof is required
 B. Other damages- proof is not required.

Fortuitous events are those events that cannot be foreseen or if can be foreseen is inevitable.
o ACTS OF MAN - intentional acts of man

o ACTS OF GOD (force majeure)- independent will of human; flood, earthquake etc.

MUTUUM (Simple loan) - same amount of the same kind and quality shall be paid; gratuitous.
USURY - receiving imterests in excess of the loan
o Presumption - inference of fact; arises from usual connection

 Conclusive- cannot be contradicted

 Disputable- rebuttable
Commodatum- essentially gratuitous

ART. 1179-1192 (SEC 1)

Different kinds of obligation:
1. Pure obligation - not subject to any condition
2. Conditional obligation - consequences are subject in one way to fulfill

CONDITION - effectivity or extinguishment of an obligation

• Future and uncertain
• Past but unknown

Classification of Conditions
o Suspense - will give rise to an
obligation
As to Effect
o Resolutely - will extinguish an
obligation

As to form o Express - clearly stated

 o Implied - merely inferred

o Possible - capable of fulfillment

As to possibility
o Impossible - not capable

o Potestative - depends upon the will;

contracting parties
o Casual - depends upon chance; third
As to cause or origin person
o Mixed - depends partly upon chace and
will

o Positive - performance of an act

As to mode
o Negative - omission of an act

o Conjunctive - all must fulfilled

As to numbers
o Disjunctive - only one or some

o Divisible - susceptible
As to divisibility
o Indivisible - not susceptible

o USUFRUCT - enjoy the uss and fruits of a thing belongs to other.

ART. 1193-1998 (SEC 2)

o Obligation with a period - consequences are subjected to expiration of said period.

o Period - future and certain event upon arrival; day certain to come

Kinds of period or term:

o Suspensive - begins from a day certain
of arrival
According to effect
o Resolutory - valid up to a day certain;
terminated upon arrival

According to source o Legal - law

 o Conventional/Voluntary - agreed by
the parties
o Judicial - fixed by the court

o Definite - known when it will come

According to definiteness
o Indefinite - not fixed when to come

GENERAL RULE: obligation is not demandable before the lapse of the period

ART. 1199-1206 (SEC 3)

o Alternative obligation - several prestation are due but performsnce is sufficient

o Facultative obligation - only one prestation are due but debtor may substitute another