Introduction to BLAW

Rights Vs. Obligation

- can one exist without the other?
-What is right?
-What is Obligation?
Story:
- there was a boy who born to country that have no freedom he joins to the refugees and then they land in
America wherein he goes to Freedom park and he started to swing his hands and stomped his feet unfortunately
he hit a policeman the nose of the policeman and he said what are you doing boy? The boy replied im just
exercising my right to freedom because im in the land of a free. Police man said o look what you have done to
me you hit my nose and then dinala niya sa police station. In the police station tinanong siya what happen tapos
sinagot niya ung sinagot niya kanina sa policeman.
- Right is not absolute
- Right comes together with obligation
Because if you have right you have also obligation
-Right ends where the rights other begins
Limitations to our Rights
1. law – when the law say it is prohibited then it is prohibited.
2. Rights of others
-the story of the boy.
Article 1156: an obligation is a juridical necessity to give, to do or not to do
Ob- to bind or tie together It is the juridical
Ligare- to cut-off necessity

Obligation- is to bind or tie together if you did not do your obligation you will be cut-off
Example: - In roman times if you borrow money you need to have a contract then you have obligation to pay
that on due date kapag hindi mo nagawa ibig sabihin non-performance of duty you are violating your obligation
you will be cut-off (because obligation is a juridical necessity). Ang ginagawa ng mga roman creditor kapag
hindi ginawa ung onligation ng mga debtor mag fifile sila ng case sa mady state kapag napatunayan na hind
inga nagbayad si debtor ngayon the debtor will be cut-off (literally)
Icucut ung body parts di debtor at ibebenta ng mady state ang proceeds of sale ay syang ipambabayad ng utang
ni debtor kauy creditor.
Present setting: kapag nangutang ka tapos hindi ka nagbabayad I susue ka ni creditor ngayon kukunin yung
property mo tapos ibebenta the proceeds of sale ay mapupunta sa creditor pambayad utang ni debtor. What if
sobra yung proceeds of sale then mapupunta sayo kapag kulang naman then hindi pa din mawawala ung utang
mo meron at meron ka paring remaining balance kay creditor.

2 kinds of Obligation
1. Real Obligation – to give or to deliver
2. Personal Obligation- to do or not to do
Other kinds of Obligation
1. Civil or Perfect Obligation- based on positive law (said kapag may utang ka bayaran mo) and legally
enforceable.
2. Natural Obligation – based on equity and cannot legally enforced.
Example: Article 1956
- pag nangutang si debtor kay creditor at sabi niya papautangin kita pero ang agreement yung 100K ang interest
niya is 10% per month yung 100K na utang sa contract ay valid while yung 10% na interest per month is invalid
kasi masyadong malaki.
-payment of interest is not demandable meaning from the due date ang babayaran lang ni debtor kay creditor ay
yung 100K only.
-if sisingilin ni creditor si debtor sa interest tapos ayaw ni debtor wala ng magagawa si creditor.
-creditor now cannot sue debtor for not paying the interest because law said it was not demanded.
-therefore, law is cannot legally enforce.
3. Moral Obligation- sactioned by conscience and morality (to do good and avoid evil)
Example: si debtor ngayon nakonsensya sya ngayon binayaran niya ung 10% na interest kasi alam din naman
sa sarili niya (morality) na may napagusapan naman talaga silang ganun and then mas pinili niya ung to do good
rather than maging evil (selfish)
4. Unilateral Obligation – only one party has an obligation
Example: donations or gifts
- yung lolo mo mag reregalo sayo ng parcel of land dahil yon sa love and generosity niya towards you ngayon
yung lolo mol ang yung may obligation to give or deliver sayo yung gift niya na land ikaw na pagbibigyan wala
since its his generosity and love for you.
5. Bilateral Obligation- both parties have Obligations.
Example: pagbibili ka ng coke sa canteen si seller obligation niya na ideliver ibigay sayo yung coke ikaw
naman obligation mon a bayaran yung binili mo.
a. Simultaneous – kaliwaan, bibilhin mo ibibigay sayo at babayaran mo at the same time.
- Non-simultaneous bibilhin mo pero utang muna tapos babayaran nalang bukas.
b. Reciprocal- yung inutangan ko ng 100K ngayon bibili siya ng car ko with a price of 100K din ngayon
pwedeng yun nalang yung pamabayad ko sa kanya sa utang ko then no need na din na bayaran niya yung car.

Requisites (requirements pag wala yung isa except kay form then walang obligation duon) of Obligations
1. Subject-parties must be determinate or atleast determinable (kung sino yung umutang sayo ayun lang yung
sisingilin mo kapag namatay then pwedeng yung mga ari-arian niya yung pambayad utang niya)
a. Active- creditor/ oblige (right to demand)
b. Passive- debtor/ obligor (right to fulfill)
2. Prestation (object of obligation) – conduct to be observed, like to give, to do or not to do.
Object of prestation is different from object of obligation.
Example: ang prestation is to give a car and object of obligation is to give while object of prestation the car
pero hindi requirement ang object of prestation only object of obligation.
3. Juridical Tie or Vinculum Juris – enforceability of the obligation they are the sources of Obligation (Art.
1157).
- an obligation can exist only if there is juridical tie or vinculum juris. If walang juridical tie meaning no
obligation.
4. Cause- why the obligation owed?
-why the seller needs to deliver the goods to the buyer CAUSE the buyer will pay.
-ano yung cause bat ka nag bebenta
5. Form- manifestation of intent to create the obligation which may be verbal or writing of other forms.
-special requirement kasi kapag wala namang sinabi ang law na need ng ganitong form okay lang na wala but
kapag may inallow ang law dapat kunin mo yun.
GR: no specific form is required for validity or enforceability
EXC: the law requires a specific form.

Article 1157- THE SOURCES of OBLIGATIONS

1. Law -not presumed. There must be a law demanding the Obligation (Art. 1158)
-hindi pwedeng pumunta ang BIR sa school then sabihin na yung 10% ng allowance ng students ay kukunin for
their contribution sa National revenue dahil wala namang ganun sa law natin.
Example: Obligation to pay taxes because nasa law natin to na we need to pay taxes.
-obligation arising from law is not consented but it is imposed.
2. Contracts- meeting of minds of 2 more persons where one party binds himself with respect to the other party
to give something or to render some service (Art. 1305)
Essentials Elements:
Consent
All present to
Object
have a contract
Causes
Two types of Causes:
a. with pecuniary value (consideration)
b. without pecuniary value (real cause)
Example: yung giving of land na gift sayo the cause of that is because of love or gratitude yung feelings na
involve.
Autonomy of Contracts – parties are free to stipulate (Art. 1306)
-kapag nag enter ka ng contract you are free to stipulate see all the details na nadun sa contract if it is
convenient for the both of you.
- you can see the price, saan ba ihuhulog, saan idedeliver, dollar ba or ph peso, kalian delivery basta you are
free to stipulate basahin ng maigi lahat ng asa contract.
-but if ang maiistipulate mo sa contract is contrary to the law hindi yun valid EXAMPLE bibili ka ng fone ang
payment na andun sa contract niyo is shabu then that will be void kasi contrary yun sa law.
Sale of Contract- purchase price is always a money.
Obligatory Force – agreement shall be the law between the parties amd they must comply with the contract in
Good Faith (GF)
-meaning kung ano yung agreement niyo gawin niyo kasi obligation niyo.
- when it comes to GF naman kahit wala sa contract but you know nayun yung tamang gawin then you have to
do it.
Example: habang hindi pa nadedeliver yung product you have the obligation to take care kahit wala sa contract
kasi alam mong ayun dapat ang gawin that is GF
- seller should always comply to his obligations with GF
3. Quasi-contract (Art. 1160,2142,2194)
-para syang contract pero hindi because walang consent.
- a juridical relation from a LAWFUL, VOLUNTARY and UNILATERAL ACT.
- relation is created by operation by law unlike contracts. The purpose of which is the payment of indemnity to
the end that no one should be unjustly encircled at the expense of another.

2 types
1. Negotiorum Gestio- a person voluntarily takes charge of the abandoned or neglected business/property of
another without authority.
Example: bumabaha tapos na iaanod yung aso ni cy at napunta kay sam kung titignan hindi naman talaga
abandoned or neglected pero parang ganun nalang ngayon inalagaan yun ni sam binilhan ng mga pagkain.
Pinacheck up binilhan ng mga damit syempre gumastos sis sam duon ngayon nalaman ni cy na nasa kanya then
kukunin na niya ngayon may obligation si cy na bayaran lahat ng nagastos ni sam duon sa aso.
2. Solutio Indebiti- an undue payment is made by mistake to one who has no right to demand nor receive
payment has an obligation to return the payment.
Example: si sevi may utang siya kay luna pero ang napagbayadan niya is kay Yanna ngayon si yanna waal
siyang right na mag demand nor receive the payment kasi hindi naman sa kanya nag kautang si sevi ngayon
may obligation siya na ibalik yung natanggap na payment.
Natural Obligation -payment cannot be recovered anymore because the recipient has the the right to receive
although he has the right to make a legal demand.
Example: yung sa may interest kanina walang karapatan si creditor na mag make ng legal demand sa interest
pero kung magbibigay naman si debtor ng pera or babayadan niya yung interest pwede yun kunin ni creditor
kasi pwede siya mag receive but not to make a legal demand for debtor because of not paying the interest.
4. Delict or Crime – commission of an act or omission to act with malicious or criminal intent and which is
punishable by imprisonment (criminal liability). A violation that involves public interest.
- paano mo mlalaman pag nakacommit ka ng crime kapag nakapatay ka yes as long as a Penal Code of the
Philippines at naviolate mo that is considered a crime.
GR: criminal is both criminally and civilly liable (imprisonment, indemnification for loss, damage, injury of the
victim/ offended party).
EXC: No provitate offended party.
 Nature and Effects (1st)
Primary Obligation in real obligations- deliver that the thing agreed upon which may either be:
Example: kung ano yung napagusapan niyo na prestation or object ayon lang dapat ung idedeliver mo kasi
ayun ang primary obligation mo as seller.
Object may:
1. Determinate thing- particularly designated or physically segregated and is thus irreplaceable (unlike
generic thing it is replaceable) (Art. 1174 & 1189).
Example: si buyer ang pinili niya na phone is iphone na may particular na serial code and then Nawala
ngayon hindi mona pwede yun palitan kasi determinate thing yun ibig sabihin irreplaceable siya, but
kung may consent ni buyer na sige pwede ka mag bigay ng iba then pwede pero kapag wala siya consent
hindi pwedeng ibahin mo ung ibibigay na product.
2. Generic thing – designated by class or genus.
Example: may bumili ng white shirt small size ngayon Nawala yung product nung idedeliver mo
ngayon pwede mo siyang ireplace as long as white color with a size of small kasi ang obligation mo
naman duon e may designated by class or genus unlike sa determinate thing na may particular
designated na dapat sundin.
3. Limited generic – confined to a designated class.
Example: I will sell to you one of my car and bibilhin mo so may contract of sale ang obligation ng
seller is to deliver a car na pagmamay-ari niya hindi pwedeng pag mamay-ari ng iba kasi dapat sayo
confined na sayo yung car kasi yun yung pinagusapan niyo. Limited lang na dapat sayo ung ibebenta
mon a goods. (Dapat mula sayo lang)
Accessory of Obligations- to deliver a determinate thing (Art. 1163,1164,1166)
-another obligation ng debtor is the natural elements na kahit na hindi sabihin or pag usapan ng buyer
na alagaan mo ung product as long nasayo pa yan kailangan mo yang alagaan.
Pending Delivery – take care of the thing with the diligence of a good father of family (ordinary
diligence) UNLESS law or stipulation requires another stand of diligence like extra-ordinary diligence.
Extra-oridnary – kapag sinabi ni creditor na ayang produt lang ung dapat na ideliver sa kanya ayan
lang dapat lahat ng sasabihin na condition ni creditor ay dapat sundin ni debtor.
Test: Would an ordinary prudent and cautious man have done as I have done under the same situation?
- translation: yung ginawa ko kaya sa certain situation nay un gagawin din kaya ng isang ordinaryong
prudent and cautious na tao.
- kapag ang isang ordinary na tao na prudent at cautious hindi niya iiwan ung isang bagay na alam
niyang mawawala dahil nakaka attract yun sa mata ng nakakarami.
Account and deliver the fruits
- harvested or earned from the determinate thing the time it should have been delivered.
Example: bumili si buyer ng parcel of land na may contract under the Poren Certificate of Title (PCT)
covering a land that is a determinate thing because walang mag kakaparehas na number ang land under
that merong sale of contract which is 3M.
Question: Who owns the parcel of land?
- still the seller pa din kasi hindi pa nadeliver ni seller kay buyer kahit na nabayaran n ani buyer.
Delivery – is a perfect transfer of ownership and grant the creditor to be its owner.
Story: si buyer bumili ng 50 baskets of mangoes kay seller na idedeliver dapat sa kanya ng Jan. 1, so
from January 1-30 kay seller pa din yung product.
Nung jan. 31 hindi dineliver ni seller kay buyer yung product ibig sabihin hindi ginawa niya ung
obligation niya and then ngayon binenta ni seller kay C ung product ngayon pwede kasuhan ni buyer si
seller kasi the moment na dapat asa kanya ung product sa given due date e hindi binigyan it means kahit
na hindi binigay siya na ang may karapatan sa product. the buyer can file a case against the seller but not
against kay C.
Actual material delivery – example bibili nga ako ng coke yung binili mo immediately nasa possession
mona or control muna.
Constructive delivery- wala pa mismo ung material sayo but meron na din sayo ung control nay un
considered ng sayo pero wala wala pa mismo sa possession mo.
Personal right- a right against the debtor only or his successors to demand delivery.
Example: duon sa hindi na deliver pwede ka magdemand kay debtor lang.
- bumili si buyer kay seller pero hindi na ideliver ni seller kundi binenta niya sa iba ang pwede lang na
kasuhan mo ay si seller pero hindi yung another na pinagbentahan niya.
 Personal right will become a real right if the product is delivered.
Real right – a right that is enforceable against the whole world.
Example: bumili si buyer tapos sabi niya kay seller kukunin niya nalang mamaya pakitago na lang
dyan, ngayon habang nag lalakad si C Nakita niya yung product then nagustuhan niya sabi niya kay
seller bibilhin ko si seller binenta naman niya. Ngayon nung dadaanan na ni buyer wala na duon tapos
tinanong niya si seller asan na ang sagot niya binenta na niya sa iba. Ngayon as long as DELIVER na
yung product pwede na matawag na real right yun pwede niya na kasuhan both the seller at si C.
- pwede ba marecover ung product?
Para mag karoon ng specific answer kailangan malaman muna kung binili ba ni C yun with a Good Faith
and value meaning hindi niya alam na may nag mamay ari na pala duon.
Another Example : Yung mga second hand na mga phone na binebenta sa mga musliman bumili ka
duon ngayon hindi mo alam na nakaw pala yun hindi ka makakasuhan duon as long nakabili ka sa public
market. Pero kapag ka may nag punta sa bahay niyo nag bebenta ng fone tapos turn out nakaw pala yon
pwede kang makasuhan duon kasi wala ka sa public market.

Nature and Effects (2nd)

General rule: accessories and accessions shall be delivered with principal.
Exemption: there is a contrary stipulation between the parties.
Accessories- joined/ included with the principal for its better use and enjoyment like charger of CP, jack
of a car, etc.
Example: BRIDGE
May land dito (imagine)
Sa gitna may Creek
Ngayon yung may ari mag papatayo siya ng BRIDGE (kaya siya accessories kasi ginawa for better use
para may daanan ung mga tao as well as para sa enjoyment) needs
Accessions- additions or improvements on the principal attached naturally (natural accessions are those
exist in nature or industrially (industrial accessions are that man-made) like structures or plantations on
land. Not necessarily needed
Example: a parcel of land was sold to the creditor ngayon lahat ng mga andun sa land example mga
bahay kubo na ganun basta lahat ng andun na man-made or industrial structures ay tinatawag na
accessions at kasama yun sa dapat na ibenta ni seller kay buyer.
How Breach (damages should be due to an additional obligation or if we fail to perform our obligation)
is incurred:
1. By non-performance of the obligation
2. By irregular performance of the obligation when there is:
a) Delay-
b) Fraud
c) Negligence
d) Contravention of Tenor

Creditor’s Remedies:
a) Specific performance
- or exact fulfillment the agreed obligation must be performed what the debtor said must be
perform.
b) Substitute performance – remedy that another person must perform the obligation at the
debtor’s expense.
c) Equivalent performance- kapag hindi na gawa nagawa ni creditor yung obligation niya
pwedeng mag bayad nalang siya ng karampatang danyos.
d) Recession
Example:
Obligation Specific Substitute Equivalent
1. to give:
A determinate YES NO YES
thing
Generic thing YES YES YES
 2. to do:
Very personal NO NO YES
Not very
personal NO YES YES

Not to yes,undo Yes, undo Yes, if

do(art.1168) cannot
undone
Damages:
Mental- moral, exemplary, nomina, temperate and actual liquidated.
Very personal - debtor and creditor enter a contract based on personal qualification and characteristics.
Example: I am a multi billionaire and you are a highly recommended and multi awarded painter, then I proposed
a work to you and we enter a personal qualification contract where in you will paint my life size portrait.
Unfortunately nung mag papaint kana start na namatay ung painter now, sabi nung anak nung painter siya nalang
daw ung mag tutuloy which is hindi pwede kasi kapag personal kung sino ung talagang gagawa dapat at nakausap
mismo nung client siya lang dapat ang gagawa kasi hindi naman mag kaparehas ng personal qualifications yung
son duon sa painter. But kapag may consent nung client na sige ikaw nalang mag tuloy then pwede pero as long as
walang consent si client hindi pwedeng iba ang gumawa that is very personal.
-kapag naman substitute kunwari hindi namatay si painter pero ayaw niya ng ituloy ung paint kasi may nangyari
and the nawalan siya ng gana ngayon ang substitute nun pwede na ung anak na niya ung gumawa as long
masusunod ung gusto ni client.
- Kapag equivalent naman so ayaw gawin ni painter e wala namang ibang gagawa ngayon ang gagawin niya
nalang is babayaran niya nalang ng karampatang danyos ung client kapalit ng hindi pag gawa sa obligation niya na
ipaint ung portrait.
Involuntary Servitude – you are nit allowed to force someone to do a service if they don’t like it.
Example: yung kasambahay niyo ang contract niya sainyo is 2 years pero after 1-year gusto niya na umalis then
wala kang magagawa hindi mo siya pwedeng pilitin na mag serve pa sa inyo ng another 1-year kasi that is already
Involuntary Servitude that is the Gneral rule.
Exemption: kung nabayaran mona na amo ung 2years of service niya tapos wala pang 2 years gusto na niya na
umalis then in that case pwede mona siyang sampahan ng kaso but if hindi mopa naman nababayaran yung whole
na pag seserve niya then hindi mo siya pwedeng pilitin mag stay or masampahan ng kaso.
Article 1174 – loss of determine thing by fortuitous event.
Example: pag may ninakaw ka tapos inorder ng court na ibalik mo yung ninakaw mona na ring na considered as
determinate thing and then Nawala ngayon ung ring by fortuitous event extinguish ba yung obligation no because
for the law said kahit nanawala pa yan by FE since yun ay crime kasi ninakaw mo then the obligation is not
extinguished. Then you have the obligation to pay for the damges.
Article 1165- execeptions to Article 1174
GR: LOSS OF THE DETERMINATE THING BY A FE extinguishes the obligation to deliver it.
EXC:
1. Debtors incurs delay
2. Debtor promises to deliver the thing 2 or more persons who do not have the same interest.
3. The law provides otherwise
4. The parties stipulate otherwise
5. Nature of obligation requires assumption of risk.
6. Obligation arises from crime
7. The thing is generic
Article 1169- DELAY the non-performance of the obligation at a stipulated time
- kapag ang usapin is to deliver the coke at this specific time 11:00 kasi kakain ako ng time nay un tapos
hindi mo nadeliver dumating lang ng 12:00 then there is a delay.
2 Kinds
1. Ordinary – non-performance of the obligation at the stipulated time.
2. Legal delay/ default- sets in when a demand oral or written, judicial or extra-judicial is made.
Judicial demand – demand made in court
Extra-judicial demand- demand made by outside of the court.
How demand made?
a) Oral- mahirap gamitin kasi need mo pa ng witness kapag mag pupunta sa court.
b) Writing – wiser because if there is a case in court you have documentary evidences.
GR: No demand, no default. Any action brought to enforce the obligation is pre-mature.
 - dapat may demand ka request is not a demand. Request is please mag bayad ka but when we say
demand magbayad ka because that is your obligation otherwise you will be file by a suit.
Exemption: Demand is excused when:
1. Law itself declares default, like Recto Law and Law on partnership as to partner’s contribution.
- Recto Law example:
Meron kasi yung batas na kung hindi makakabayad si buyer ng 2 installment sa kanyang product na binili then
automatically may default na dun kasi nakabase un sa Recto law kahit hindi na mag demand si seller may
default na agad si buyer at pwede na siya masue sa court kahit walang demand kay seller because the law itself
said na may default na siya.
2. Stipulation of parties that demand is not necessary
Example: kung sabi ng parties sa stipulation na hindi na nila kailangang idemand na gawin yung obligation you
need to perform your obligation on maturity date otherwise you will be suit in court. Kahit walang demand
since nasa stipulation naman na then automatically may default at pwede na I sue sa court.
3. Time is Essence. Designation of time is the controlling motive.
Example: pumunta sa bakery shop si buyer nd then sabi niya kay seller pagawa ako ng cake then pakideliver
mamayang 6 PM kasi may bday party ako ngayon nag simula ung party wala pa yung kasi hindi na deliver ni
deller nadeliver niya lang 8 na ng gabi. Meron ng delay duon aanuhin pa ni buyer yung cake e wala na tapos na
ung party then pwede niya I sue si seller kasi hindi niya ginawa ung obligation niya to deliver the cake at 6:00
pm.
4. Demand is useless as the debtor has rendered the obligation beyond his power to perform.
Example: kahit magdemand ka wala ng silbi. Kung ang idedeliver sayo ay car but the debtor sold the car to
other then useless kahit ilang beses kapa magdemand kasi wala na nga sakanya wala ng madedeliver sayo hindi
na sakanya yung car at wala na din sa possession niya ngayon ang magagawa mo nalang sa kanya is to file a
case.
5. Debtor acknowledges his delay.
- hindi mona kailangan mag demand kung mismong si debtor na ung nag acknowledge na hindi niya nagawa
yung obligation niya.
Obligation to deliver arises when:
1. In simple obligation – upon perfection of contract or period stipulated by the parties.
Example: kaliwaan you will buy 1kl of rice from the seller tapos may usapan kayong idedeliver niya after 2hrs.
2. In conditional obligation (suspensive) – upon happening of the condition
3. In term obligation – upon arrival of the period or term.
4. In obligations arising from law, delict, quasi-delict, quasi-contract- that the time designated by law
creating or regulating them.
Article 1169: delay in reciprocal and simultaneous obligation
- when one party is ready, willing and able to perform the obligation and the other party is not, the latter incurs
delay.
Example: if you will buy 1kl of rice and ready, willing and able to deliver the payment but the seller is not
ready to deliver it then it is already delay in the part of the seller (vice versa)
Kinds
1. Mora Solvendi- delay of the debtor to perform
2. Mora Accipiendi- delay of the creditor to accept performance of the debtor’s obligation.
3. Compensatio Morae- both parties are in delay. Parties shall be not in delay.
- it is like negative X negative= positive meaning if they are both delay then that is not considered as delay.
Article 1170- damages in fraud, delay, negligence, contravention of tenor (doing okay but nung ginagawa mona
yung act nay un yung doing na un nagprevent sayo to perform your obligation faithfully).
Example: if I entered a contract with SMU from 7:30-10:30 AM everyday to teach at the students and then
enter another contract from 10:30-12:30 at AC to teach students. Which is sa doing ko walang mali kasi pwede
naman mag double job but mapreprevent nito ung pagiging faithfull ko sapag tuturo why? Kasi yung oras ng
transportation ko from bayombong to solano edi malalate na ako sa klase ko sa AC because ang tapos ng klase
ko sa SMU is 10;30 while ang simula ko sa AC 10:30 pero mag tratravel pako meaning mag kukulang ako I
cannot perform my obligation to AC and otherwise kung I eearly dismiss ko naman ang klase ko sa SMU para
makaabot sa exact time para sapag tuturo sa AC then hindi ko magagawa ng faithfully ung obligation ko sa
SMU kasi ang usapan 10:30 not before 10:30 matatapos ung schedule ko sa kanila.

OBLIGATION --- BREACH ---DAMAGES

Damages arising from:
1. law
2. contract
3. Quasi-contract
4. delict
5. Quasi-delict
Breach it by:
1. fraud
2. negligence
3. delay
4. contravention of tenor
- whenever you breach your obligation then damages will be due.
FRAUD vs. NEGLIGENCE – Both are voluntary act or omission to act.
Fraud- the act or omission to act as knowing done intending the natural effects thereof there is a malicious
intention.
-you intended to take advantage knowingly the natural effects of it.
- mas mabigat ang fraud compare to negligence.
Negligence- no malicious intention. The act or omission to act is attended by carelessness, imprudence,
inattention, lack of skill, lack of diligence. (inshort aanga anga ka lang)
Example: wala ka namang intention to take advantage to other pero aanga- anga ka the other party ay na
injured or unknowingly the other party is injured pero hindi mo naman sinasadya.
NOTE: When negligence is so gross (grabeng kina anga anga na) that is complete disregard or total absence of
even the slightest care, it amounts to fraud and the law on fraud shall apply.
Kinds of Fraud
1. Causal Fraud – committed at the birth of the obligation.
- because of such fraud, the other party is induced to contract. The contract is then voidable due to a vitiation of
consent by fraud.
Example: mag bebenta ka ng diamond na alahas pero fake yun so nung birth palang ng obligation which is ung
pagbebenta mo ng alahas may fraud na agad dun kas inga fake ung diamond na alahas na ibebenta mo.
2. Incidental Fraud (pinaka focus) – committed the performance of the valid obligation resulting to a breach
by fraud. (Art. 1170)
Example: - nagbebenta ka diamond alahas and then sabi mo idedeliver ko nalang ung diamond ring sa araw
bago ung kasal mo ngayon nung idedeliver na ni seller ung diamond ring pinalitan niya ung diamond ng pwet
ng baso ngayon nagawa niya yung fraud after the perfection of contract. Nagawa na ung contract tsaka niya
ginawa ung fraud.

Nature and Effects (3rd)

Kinds of Negligence (CULPA)
1. Civil Negligence –
a. Culpa Contractual- Negligence in the performance of a contractual obligation.
b. Culpa aquiliana or quasi-delict
-committed in the absence of any contract between parties.
-your damages in quasi-delict is not arise from contract but in negligence
2. Criminal Negligence – (culpa delicto) negligence punishable under the Revised Penal Code (RPC) like
Reckless Imprudence, resulting to homicide or injuries or damages to property. A negligence considered a
crime under the RPC.
Article 1172 and 1173 and 2201 – measures of damages.
If an obligation is breached by:
1. Fraud- all damages (measurement of damages) suffered attributable to the breach (special treatment is a
consequence that are not seen by the party).
2. Negligence- natural and probable circumtances which have been foreseen or reasonably foreseen by the
parties at the time of the constitution of the obligation.
NOTE: Courts may mitigate (pwedeng mabawasan ung decision ng court) the liability of the debtor for his
defences like:
a. Contributory negligence- mitigation of negligence the driver.
Example: naaksidente ung driver ng bus ng victory liner ngayon sasabihin ni victory liner or principal na alam
lahat ng driver bago nila payagan byumahe ang mga safety tips ngayon mag cocontribute nalang sila victory
liner sap ag papagamot kay driver but hindi sila ung mag babayad ng buong hospitalization kumabag
mamimitigate ung obligation nila mababawasan from buong pag babayad ng hospital bill to contribution mag
bibigay nalang but not whole.
b. due diligence in the section and supervision of employees. – might be mitigate or exempted by the
obligation.
Example: pwede sabihin ni victory liner na pinili niya ung driver due diligence and nasupervise naman nila ng
maayos ung mga hired na driver ngayon dahil sa defense nila pwede mamitigate mabawasan ung obligation nila
sa driver nan a disgrasya pero pwede din na ma exempted sila meaning wala silang ibibigay kay driver.
-those defenses are not valid to fraud.
- sa nangyari na accident si driver sya ay criminally and civilly liable. Si victory liner ba consider na
criminally liable? No because kapag criminally liable (ang liable lang yung mismong taong nakagawa ng act
meaning yung driver yun).
Civil Liability arising from delict – obligation to indentify the victim the principal is a secondarily of
subsidiary liable meaning tutulong sila ang victory liner sa mga victims. Kapag walang pambayad si driver
pwede habulin ni victim si victory liner since sila ung secondarily subsidiary nung driver.
- if the cause of the accident is quasi- delict then both driver and victory liner is solidarity liable(the victim will
fire a emand or a claim against either the driver or victory liner kapag ang pinili ng victim is ay quasi-delict then
wala ng imprisonment mag babayad nalang ng danyos) sa damages sa mga victims.
1. Criminal suit- mas madali ito kasi mag sasampa ka lang ng kaso then hearing then decision then
imprisonment.
2.Civil suit- mas matagl at gagastos ka pero hindi na maiimprison yung tao pero mag babayad nalang ng
danyos.
Article 1171- VOID WAIVER
-waiver by the creditor of his right to demand damages for:
1. Future Fraud is Void –
Example: you enter a service contract like kumuha ka ng tricycle driver and then sabi mo pakidala nga ung
goods ko sa may palengke just be careful kasi babasagin yan then ngayon sabi ni driver mam paano po kapag
nabasag, Nawala at ang sabi mo ay wag ka mag alala kuya hindi ka liable or responsible hindi kita ihohold.
Ngayon si kuya naisip niya since hindi naman pala siya liable kapag may nangyari duon sa product inuwi niya
nalang kasi pwede naman niyang sabihin na Nawala kasi hindi naman din siya sisihin.
- this fraud is like hinihikayat mo siya na mag commit ng fraud in the future.
2. Past Fraud is Valid
Example: kapag Nawala ung goods tapos hindi nag hold ng liable si owner against sa driver sasabihin nalang
niya hayaan mona if sasabihin ni driver na Nawala pero inuwi niya naman talaga.
- ung pag hindi pag hold ni owner kay driver is equivalent to generosity kasi pinatawad mo naman siya sa
kasalanan na ginawa niya.
-hindi siya nag eencourage to commit fraud in the future kasi ang winave mo yung past na.
3. Future or Past negligence is Valid
- limited liability pag mag papadala ka sa LBC how much? Ano yung value ng ipapadala mo kapag 100k ang
ipapadala mo but sabi mo duon 50k lang ibig sabihin ung obligation nila duon sa pagpapadala mo is 50k lang
and kapag Nawala ung another 50k wala silang liability duon kasi ikaw na owner ang sabi mol ang 50K.
Determining what DUE DILIGENCE is consider the:
- you must perform your action with due diligence
1. Nature of the Obligation
Example: you will deliver cotton balls and a phone ung sa cotton balls syempre ilalagay mo lang siya sa hindi
naman ganun ka secured na lalagyan but kapag ka phone yon syempre mas ilalagay mo sya sa mas secured na
lalagyan since madali siyang mababasag compare to cotton balls na kahit mahulog hulog hindi mababasag.
2. Circumstances of person
- kapag ang sumakay sayo sa likod ng tricy mo ay ung ordinary na tao lang na alam mong kayang kaya sa
ganung position balance lang ung pag dradrive mo pero kapag ang sumakay sa likod ng tricy mo ay buntis,
matanda bata syempre magiging extra careful ka sap ag dradrive.
3. Circumstances of Place
- tignan mo kung saan na place mo ibibigay yung goods. Bumili ako sayo ng 10 kls of rice and then sabi ko
pakidala nalang sa school kasi may klase ako mag hapon ngayon syempre hindi mo naman dadalhin yun kung
saan na room mismo on going yung class ko pwede mo yun iiwan sa mag guard or faculty room.
Article 1176- Disputable presumption
1. Receipt of principal payment, that interest is already paid
2. Receipt of later installments that prior installments are paid.
Exemption:
a. proven otherwise
b. there is a reservation, oral or writing.
c. OR is only dated which statement of application payment.
Article 1175- in its place BSP-MD Cir 905
Example: pag nag loan ka may interest. Humiram ka ng 100k tapos ang sabi ko 10% ang interest niya, if the
rate stipulated by the parties is higher than the ceiling rate fixed by BSP then it will be usurious interest. Kapag
kunwari sinabi ni BSP na ang maximum ng interest dapat ay 30% tapos ang stipulated niyo na party is 50% then
usurious ang tawag duon dapat hindi higher than the BSP ceiling rate.
- however, the stipulated rate must NOT be excessive otherwise the stipulation is VOID for being contrary to
law, morals or public policy.
Usurious interest- is an interest higher than the ceiling rate fixed by BSP.
BSP Cir 905
- said na instead mag fixed ng ceiling rate kung ano nalang yung stipulated rate ng parties edi yun nalang so if
the party stipulated na 35%/ annum it will be not usurious.
- but kapag sobra sobra naman na talaga ang tawag dun ay excessive and iniquitous
Article 1177 – creditor’s right against the property of the debtor (increase of a breach of obligation)
1. By execution or attachment – for debtor’s property which are in his possession except those property
exempted by law
Attachment- preliminary remedy meaning once you filed a case in court to debtor, immediately you ask the
court to attach the property just to secure that you creditor will win the case and sigurado na may makukuha
kang property niya.
Execution- same din siya kay attachment pero ditto bago pa makagawa ng action kailangan ng decision ng
court
-mag bebenta ng mga property ni debtor executing his property na nasa possession niya at hindi exempted by
law para ipagbili at maipangbayad sa utang na di niya kayang bayaran.
2. If No. 1 is insufficient, then debtor’s which are in the possession of another debtor’s act to fraud the
creditor by or through.
NOTE: tsaka lang mag kakaroon ng choice number 2 kapag ka hindi pa din sapat yung choice 1. Sa number 2
kasi may 3rd person na nainvolve, ito na ung mga pag mamay-ari ni debtor pero wala sa possession niya katulad
nalang kapag nag paparent siya ng bahay ung pero niya sa banks niya.
a. Accion Subrogatoria- the debtor of my debtor is my debtor
- yung nagkautang kay debtor ko ay nagkautang na din sakin.
Example: si creditor will file a case against the debtor of his debtor so
If X (debtor) owes C(creditor)
XX(debtor of my debtor) owes X
Then C will file a case to XX
- but the case no should under the name of X therefore X vs. XX.
b. Accion Pauliana
Example: if si Debtor dinispose niya or trinansfer niya yung ownershisp sa iba. Si creditor now can file a case
na allege na dinispose niya ung property niya para hindi makuha at kapag Nakita ng court na ang intention nga
ay ganun then yung contract of disposing the property will be cancelled and the ownership will again back to
the debtor then pwede na maattach and maexecute ung property niya.
c. Accion Directa – wherein applicable only to a certain case provided by law the case will filed in the name of
the creditor himself it is only applicable in sub case and sub contract.
Example: if the property of debtor pinautang niya kay C tapos pinaupatang naman ngayon ni C sa 3 rd person or
another person. Ngayon hindi nakabayad si C kay debtor ngayon si 3 rd person hindi din nakabayad ng utang
niya kay C. si debtor ngayon pwedeng directly na mag punta na kay 3 rd person para singilin si 3rd person at yuon
na ang pambayad ni C sa utang na di niya nabayaran.
Article 1178- Transmissibility of Rights and Obligations
GR: Rights are transmissible
Example: if the father owns a parcel of land and he died the right of his land will be transmitted to his heirs,
but if the father died and married into his second wife you are born out of the 1 st wife then ikaw ang
tagapagmana not the second wife kasi kasama niyang mamatay ung right niya because that is a personal right.
- but kung may right na napasa sayo with the right has obligation then you accept the right then you also accept
the obligations na naiwan niya.
EXC: Intransmissible
- by nature (personal right) (pag yung isang tao namatay yung right is sa kanya pa din)
- by stipulation of parties ( highly personal example ung billionaire and painter)
- by law
GR: Obligations are Intransmissible
Example: kapag namatay ung isang tao and nakaiwan siya ng and he also left no property hindi mapupunta ung
obligation to pay sa mga heirs niya but if yung tao namatay tapos may utang siya pero may mga naiwan na
property naman siya amounting to a certain peso tapos yung utang niya is kaya naman bayaran nung
mapagbebentahan ng property then ayun ang gagawin. But kung kulan gung sale or property the remaining
balance is out sa obligation ng mga heirs or succession niya.

CONDITIONAL AND TERM OBLIGATIONS 1

1. Pure and Conditional Obligations
a) Pure- subject to no condition or term and is demandable at one.
b) Conditional- subject to condition the happening of which determines the demandability or extinguishment of
the obligation.
2. Term Obligations
a) Term/ Period- happening of term or expiration of period determines the demandability or extinguishment of
the obligation.
b) Condition- future event the happening of which is uncertain. May include a past event, the happening of
which is unknown by the parties.
c) Term- future event certain to happen although not known when or a future determinate or determinable
period.
3.) Alternative and Facultative Obligations (Compound Obligations)
4.) Joint and Solidary Obligations (Collective Obligations)
5.) Divisible an Indivisible Obligations
6.) Obligations with Penal Clause

2 TYPES OF CONDITIONS
Article 1181
1.) Suspensive Condition- compliance of the condition will result to the:
-The performance of the obligation is in the meantime while condition is nit yet fulfilled
-The conditional obligation is not immediately demandable if the condition is a suspensive condition.

a) Acquisition of rights arising from the obligation

b) Demandability of the obligation
NOTE: Article 1187- effects of the retroacts (agsubli) the time of the constitution of the obligation.
- upon the constitution of the conditional obligation subject to a suspensive condition although the performance
of the obligation is not yet demandable the obligation is existing kasi sabi ng Art. 1187 if the suspensive
condition happens then the effects of the obligation shall retroact to the time of constitution of the obligation.
Meaning at the time of the constitution of the obligation the obligation is already existing between the
demandability is suspended meantime that the suspensive condition is not fulfilled that is the GR.
Example: if the obligation was constituted that the conditional obligation constituted at Jan. 01 the debtor said
to the creditor my apartment house will be yours if you pass the CPA board exams until dec. 31,2020.
Obligation- to give the apartment house to the creditor.
Condition- if the creditor will pass the CPA board exam until Dec. 31,202020
- kailan magiging demandable ang condition? If the condition is fulfilled and that is when the creditor will pass
the exam board until dec. 31,2020.
- if the creditor passed the board exam in 2021 then the obligation to give the apartment hpuse will no longer
arise, because there is time/period within which the suspensive condition must happen if the period stipulated
within the reach of the suspensive condition should happen if it is beyond that then at the expiration or laps of
the stipulated period the conditional obligation is already suspended.
- if the creditor pass the CPA exam on Jan.01,2021 there is no more obligation because upon the laps of the
stipulated period has already resulted to extinguished kind of obligation in other words dec.31,2020 and the
condition is not yet fulfilled such date the conditional obligation is already extinguished that is kung may period
na inistipulate ang party.
- if in dec.31,2020 the creditor pass the CPA exam the right of the creditor will arise and he can demand to the
delivery of the apartment house is already existing meaning demandable na yung obligation ni debtor to deliver
the apartment to the creditor, why? Because the condition has already fulfilled.
-what about on 3/31/2020 the debtor sold the apartment to X and then on 12/31/2020 the creditor pass the CPA
exams the problem now is the debtor cannot delivery the apartment to the creditor anymore even the condition
was already happened, why? Because he already dispose of such property. Who between the creditor and X has
better right to the property?
If you follow article 1187 then we can say that the apartment properly belong to creditor because ang sabi ng
law if the suspensive condition has already happened then the effects thereof shall retroact with the time of
constitution of the obligation so in 1/1 the time of the constitution of the obligation of debtor was came first
rather than the sale of the same property.
- meaning mas naunang nag ka obligation si debtor kay creditor bago kay X. however we have to back to our
types of right the personal right it is true that Creditor has the more right over the property because there is no
delivery that happened meaning sa kanya pa din yun. Nagyon si debtor ng breach siya ng obligation niya he has
also obligation to pay for damages because C acquired personal right to the property. The remedy now of the
creditor is not against X but against Debtor that breach his obligation now he can file a complain against for the
breach of obligation how? Because debtor dispose the property prior to the expiration of the period within
which the condition are not yet expired.
- when it comes to the real right if X is a purchaser with GF and value then hindi na pwede marecover yung
property but when X is a purchaser of BF and value or pwede ding GF but bad value then the property may
recover.
GR: The effects of the obligation shall retroacts on thereof.
- kapag from 1/1 to 12/30,2020 ay pinarent ung apartment at may rental fees na 100K sino ang may right duon
if we based on Article 1187 then si creditor ang may right.
EXC: as to fruits/ interest accuring before fulfillment.
1. The obligation is reciprocal deemed compensated
Example: I will seel to you may house and Lot for 1M if my visa to migrate to US is approve
Obligation- sell the house and lot of the Debtor
Condition- if the visa of debtor to migrate in US approve (suspensive because once the condition is fulfilled
then the obligation to sell the house and lot to the creditor will be demandable)
- meantime the conditional obligation has not yet fuilfilled that is on 1/1 let us assumed that the approval of visa
to immigrate to US from 1/1 – 12/30 yung house and lot ay naka rent ng 100K.
GR: it belongs to the creditor why? (Art. 1187). In this case it is EXC why because the creation of the contract
is reciprocal si debtor may obligation to sell the property to creditor and has an obligation to pay 1M. the reason
of the law bakit EXC is that Creditor earns 100K from the rental feels from 1/1-12/30 while Debtor also
benefitted because he can invest to the 1M pwede niya yung ipautang at lagyan ng interest then dalawa ngayon
silang na bebenefittan. They both enjoying the fruits of their own property.
2. Unilateral obligation which is gratuitous
Example: the aunt has an obligation to deliver the apartment house to her niece if she pass the CPA exam
kapag hindi nakapasa si niece or yung suspensive condition then naturally the obligation of the aunt is not yet
demandable. After 12/31 assumed pumasa sa exam si niece. From 1/31-12/30 the apartment was able to earned
a rental fees of 100K if you are trhe niece padawakan naka ni antim iti apartment house nu makapasa ka board
then nakapasa ka sasabihin moba sa auntie mo ung article 1187 na may karapatan ka duon 100K na kinita nung
apartment since may usapan kayo duon syempre hindi agbain ka metten inikkan naaka la ngaruden ti apartment
mo aabusuhin mo pabasiya mahiya ka naman sis.
3. Obligation is personal- retroactivity depends upon the discretion of the court.
- let the court decide if kailan ang retractivity ng effect ng personal conditional obligation.
Article 1185- Obligation extinguished since the suspensive condition is deemed unfulfilled when:
1. Becomes uncertain that it cannot happen anymore
2. Becomes inclubitable that it will not happen anymore.
3. Stipulated time of happening has already lapsed.
Example: The obligation is to deliver the Apartment to the niece if she pass the CPA board exams in 2020 if
hindi niya naipass until 12/30 then the obligation now is distinguished because the stipulated condition shall be
fulfilled has already laps, kapag hindi pa naman nag lalaps yung stipulated period but it becomes inclubitable
why because she did not graduate college in her course and hindi siya gragraduate this 2020 definitely hindi
siya makakapag exam sa board, if she cannot take the exam naturally there will be no passing of the exam until
12/31 then it is extinguished because passing at the exam will not happen anymore.
Article 1188- Rights of parties pending the happening of the condition
1. Of Debtor- anything delivered by mistake may be recovered UNLESS he waived the condition
Example: hindi pa demandable to deliver ung apartment kay creditor pero nagkamali siya ang akala niya
demandable nan a ngayon idedeliver ung property ngayon pwede pa niya marecover yun as long it will
delivered by mistake.
Unless he waived the condition meaning there is no delivery by mistake under EXC. The auntie is fully aware
na hindi pa naman dapat ideliver ung apartment pero dineliver niya pa din sabi niya I will not wait for you to
pass the board exam kasi para sayo naman talaga to it is very clear that the aunt now is waiving the condition
siya na mismo nagsabi na walang mistake by delivery then hindi na niya pwede marecover once she waived the
condition.
2. Of the Creditor- take the action to the preserve the thing or his right.
Example: binenta ni auntie yung property sa iba pagdating sa registrable property like land, vehicles, shares of
stock any transactions involving or relating to this land of properties will be registered with property
registration. If yung object ng contract of prestation in conditional obligation is registrable property the right of
the creditor is to secure na hindi madidisposed yung property that he will receive the performance of the debtor.
Ang gagawin ngayon ni creditor para mapreserve niya yung right and thing is to annotate or register yung
burden over the property ipalagay niya sa title ng property na sa kanya ung burden which is the property is
subject for a conditional obligation.

Article 1186 – Principle of Constructive Fulfillment – parang nangyari na pero wala pang actual na
fulfillment, but constructively it is already fulfilled.
GR: The suspensive condition is not yet fulfilled but is deemed fulfilled when:
A. The debtor by his voluntary and willful act intends to prevent the creditor’s fulfillment of the
condition
Example: A and B are close friends A is richer than B then he is working at bank. A told B that If he got
promoted and ililipat siya sa manila papa stayin niya sa bahay niya sa manila si B ng libre. Ngayon si A
ipreprevent niya yung pag fulfill ni B sa dcondition kasi gagamitin niya yung connection niya duon sa may ari
ng bank na wag ipromote ung friend niya. ngayon si A ay merong voluntary as well as willfulness sa ginawa
niya para maprevent si B na magawa ung condition.
But there is a EXC: the debtor acts pursuant to a right. He has th right to precent the fulfillment of the
condition.
Example: ginawa ni A yung act nayun na gamitin ung connection niya para hindi mapromote at malipat si B
kasi sa manila kasi nalaman niya na may affair pala sila ng wife niya kung hidni niya ipreprevent yun then sa
bahay niya sa manila magagawa ng friend niya at ng asawa niya ung gusto nila. So he has the right to protect
his marriage.
Article 1189- Rules in case of Loss (Art.1174) deterioration and improvement pending delivery
(memorize)
-kapag hindi pa nadedeliver or pending delivery palang which is a determinate thing tapos Nawala (loss) ano
ang mga effects.
Loss- physical loss the thing perishes (awanen hindi mona nakikita or makikita physically kasi nga wala na
talaga)
Legal loss- goes out of commerce.
-andyan pa din yung thing kaya lang it is no longer at the commerce.
Example: today I sold to you a 4 legged animal I will deliver it tomorrow afternoon and then nung umaga
biglang may lumabas na resolution by the municipal government a resolution prohibiting the sale and deliver of
4 legged animals so mamayang afternoon hindi kona pwedeng ideliver kasi that is contrary to the law.
Civil Loss – disappears in such a way that its existence or whereabouts is unknown.
Example: yung aso mo since nabayaan mo na nakaopen yung gate niyo so lumabas siya nakawala ngayon hindi
mona alam kung nasaan na siya, kung buhay paba siya or hindi na hindi mona alam ung whereabouts niya kung
kumain naba siya.
- asa yate ka and then na hulog ung ring mo sa sea ngayon malamang hindi mona alam kung nasaan un hindi
mona makukuha pa yun kasi malay mo nasa pinakailalalim nay un or nakain or something na basta hindi na
mababalik sayo.
Constructive Loss- partial loss but the purpose for acquisition cannot be served anymore, otherwise there is
only deterioration.
Example: there is a a physical loss but partial lang, yung bahay na natanggalan ng bubong hindi na whole ung
bagay nay an but hindi naman lahat Nawala partially lang pero ngayon hindi niya maseserved yung purpose
niya kasi ang isang pinakamahalagang element ng bahay is yung bubong.
- it may consider as total loss but it may depend upon the purpose.
-deterioration if ang purpose ay bibilhin niya yung lupa kasi mag papatayo lang siya ng maliit na kubong
pahingahan niya or mag aalaga lang ng manok duon sa lot nay un.
-but if and purpose niya kaya niya binili yung 200sqm na lot is para mag patayo ng warehouse which is 200sqm
din ang makukuhang space then hindi na niya maseserved ung purpose niya.
Requisites of the Rules:
a. Thing is determinate
b. If personal obligation, the obligation is Highly Personal
Rules of Art.1189
1. Loss/Impossibility
a. without the fault of the debtor like FE- the obligation is extinguished (Art. 1174)
b. due to fault of debtor- the obligation is converted to an obligation of indemnity or damges
2. Deterioration- a partial loss of the determinate thing but does not affect the purpose for which the creditor
acquiring the thing. Although use of the thing lessen that the benefit shoukd be derived by the creditor hindi na
siya kasing ganda nung dati kas inga may partial loss na.
a. without the default of the debtor- creditors the deterioration, as an EXC to the GR of the res perit
domino (the owner bears the loss) (loss ni creditor)
b. due to fault of debtor- creditor may either:
-rescind (cancel ng contract) the obligation plus damages (art.1191)
- require performance plus damages
3. Improvement (benefit ni creditor)
a. natural- to be benefit of the creditor.
Example: duon sa land na nabili mo mat tumubo na manga then benefit mo yun kasi makakapgkitaan mo yun
as long as gawa ng natural at hindi man made.
b. industrial- rule on unsufructory.
Example: si mismong seller ung nag tayo ng bahay kubo duon ngayon pag binenta sayo ung land kasama na
din yung bahay kubo ikaw na creditor ay ma bebenefitan kasi parang libreng strcutures na din yun.

2nd condition

2.) Resolutory Condition

Article 1181- Fulfillment or compliance therewith results to:

1. Extinguishment of the Obligation
2. Loss of the right already acquired
3. Unlike in a suspensive condition the obligation is immediately demandable.

Article 1190- upon the happening of the resolutory condition the parties are bound to return at once what
they have received.
Example: use my car until you pass the CPA exam
Obligation- allow creditor to use the car
Condition- until you pass the CPA exam end of the year 2020 so immediately debtor will deliver the car to the
creditor and the obligation to return the car will be done if the condition will fulfill that if he passes the board
exam on dec. 30,2020 then his obligation to return the car is demandable kasi un na yung obligation mo kay
debtor sapag allow niya sayo na gamitin yung car niya therefore the condition is extinguished.

Article 1184- obligation is extinguished since the condition is deemed fulfilled when:
a. determinate time for the happening
b. becomes a inclubitable that the condition cannot happen anymore.

Provisions applicable to both kinds of conditions:

Article 1182- Potestative, Casual, and mixed conditions
a. Potestative- happening of the condition depends solely on the will of either the debtor or the creditor
Example: I will pay you when I want to I ‘am the debtor then kung ano yung condition ko ayun nay un.
Article 1180 – when the debtor binds binds himself to pay when his means allow him todo so (suspensive
potestative will of the debtor) the obligation is deemed to bean obligation with a period subject to Art.
1197
- Void walang burden si debtor
- ibig sabihin kung ayaw niya mag bayad hanggang mamatay siya edi wala diba therefor walang tie walang
obligation kaya ibig sabihin void.
Article 1197- the court may fix the period when (jurisdiction of the court is invoked)
- the condition or period is potestative that depends upon the sole will of the debtor.
-can be inferred from the nature of the obligation and from the circumstances that a period intended by
the parties.
b. Casual – happening of the obligation depends upon the will of the 3rd person or upon chance.
Example: I will pay you if I will win at lotto (by chance)
- I will pay you if the buyer of my property will pay to me (3rd person is involved)
c. mixed- happening of the condition depends partly on the will of the either the debtor or the creditor
and partly upon the will of a 3rd person or upon chance.

Rules:
1. condition is casual or mixed (suspensive of resolutory) both the obligation and the condition are valid.
2. condition is potestative and upon the will of the debtor and the condition is:
a. suspensive- both the obligation and condition are void except when the obligation pre-existing in which
case, only the condition is void.
Reasons of the rule: no juridical tie, debtor has no burden since his obligation is illusory and contrary to
Art. 1308
b. Resolutory- both the obligation and the condition are valid
Reason: The debtor is interested in the happening of the resolutory condition to the extinguish his
obligation.
Example: Use my car until I demand that you will return it
3. Condition is potestative and upon the will of the debtor and the condition is
a. suspensive- both the obligation and the condition are valid. The creditor is interested in the happening
of the condition.
b. Resolutory- both obligation and condition are void.

Kinds of Obligations
1. Pure and Conditional Obligations
2. Term
3. Alternative and Facultative (Compound)
4. Joint and Solidarity (Collectible)
5. Divisible and Indivisible
6. Obligations with Penal Cause

Definition:
CONDITIONAL AND TERM OBLIGATIONS
Conditional obligation is may or may not happen
a. Pure- subject to NO condition or term
b. Conditional- Subject to condition the happening which determines the demandability and
extinguishment of the obligation
c. Term/ Period- happening of the term or expiration of period
d. Condition- Future event happening which is uncertain. May include past events, the happening of
which is unknown by the parties
e. Term- Future event certain to happen although not known when, or a future determinate or determinable
period. Happening is Certain
Suspensive Condition (Art. 1181)- happening which results to:
a. Acquisition of rights arising before fulfillment
b. Demandability of the obligations
- Conditional is not yet demandable for the mean time prior to the suspensive condition but The obligation
is already existing
- Suspended muna kase dpa tapos ung obligation
Note: Art 1187- effects of the obligation retroacts to the time of the constitution of the obligation.
EXC: AS fruit/interest accruing before fulfillment
1. The obligation is a reciprocal- deemed compensated – magbebenefit kayo pareho
 2. Unilateral obligation which is gratuitous- Binigay na nga sayo
3. Obligation is personal- retroactivity depends upon the discretion of the court- to do or not to
do (delikadesa)
Ex. The debtor to the credito is, “my apartment house if you pass the CPA board until Dec. 31,2020.
Obligation- Give the apartment house to the creditor, Condition: If you pass the CPA board exam. Kailan
magiging demandable, if he will pass. Paglumampas in the sa napag usapang period of time, the condition is
already suspended. If he pass the after the set time, there is already no obligation, SUSPENDED OBLIGATION
arises if there is a period of time given in a certain condition.
Note: kung nasatisfy ng creditor ung condition, the benefits of the business from when the debtor said
the obligation will be retroacted to you. Ex. Ung nakuhang pera mula sa apartment from jan 1- Dec 30 ay
mapupunta sa creditor kung naipasa nya ung board.
What if, the apartment was already sold but the creditor pass the Board exam. Debtor has the personal
right to sell his apartment. Pag nadeliver na kay X, hndi na pwede mabawi.
Art 1185- Obligation is extinguished since the suspensive condition is unfulfilled when:
1. Becomes certain or will not happen anymore
2. Cannot happen anymore
3. Time of happening has already laps
Art 1188- Rights of the parties pending the happening of the condition:
1. Of debtor- anything delivered by mistakes may be recovered while the condition is not yet fulfilled
unless the waived the condition, kahit wala ng condition, ibibgay parin naman tlga, or intentionally
being made
2. Of the creditor- take action to preserve the thing or his right. Ipa register mo ung property sa
obligation kung may balak na ibenta ni debtor ung property na kasali sa obligation
Art- 1186- Principle of Constructive fulfillment-
GR: The condition is not yet fulfilled but deemed to be fulfilled when:
a. The debtor, by his voluntary and wilfull act, intends to prevent the creditors to the fulfillment
of the condition.
b. The condition is supensive
c. There is actual prevention
Example: A and B are close friend. A said, if you get promoted and transfer to Manila, dun
ka nalang sa bahay ko manuluyan sa Manila. Ngunit sabi ni A sa pinagtratrabhuan ni B na
wag syang ipromote at itransfer sa manila. Therefore we can see that the way or the process
till the fulfillment of the condition is prevented by A himself
EXC: the debtor acts pursuant to a right. He has the right to prevent the fulfillment of the condition.
The obligation is extinguished when the condition is deemed unfulfilled
Art 1189- Rules in case of loss, deterioration and improvement pending delivery
Loss: Physical loss- the thing perishes, physically wala na
Legal Loss- Goes out in commerce. Nandyan parn ung thing pero wala na sayo. Pwedeng dahil
kailangan ng gobyerno.
Civil Loss- Disappears in such way that its existence or whereabouts is unknown. Nandyan parn pero
napukaw mo
Constructive loss- partial loss but purpose for acquisition cannot be served anymore, otherwise there is
only deterioration
Requisites of the rules: a. Thing is determinate; b. personal obligation is highly personal
Rules Art 1189
- Loss/ Impossibility- Without the fault of the debtor. Like FE_ the obligations is extinguished, B. pag
kasalanan ng debtor, agbayad suna a
 - Deterioration- without fault. Partial loss pero di nya kailangan ung nawala. Si creditor ang mag
loloss kung wala naming kasalanan si Debtor Pag kasalana n gdebtor, require performance to damages
- Improvement- natural – pag may tumubong beneficial, inure to the benefit of creditor. Nu sino aking
bagi. Nu met inmula na tlaga dyay debtor, may benefit prn sa debtor dun

RESOLUTORY CONDITION
Art 1181- fulfillment or compliance therewith results to:
1. Extinguished of the obligation
2. Loss of the right already acquired
3. Unlike in a suspensive condition, the obligation is immediately demandable
- Effect of suspensive condition. PAg natapos na or nafulfill na ang condition sa Suspensive condition,
next to that is the resolutory condition where the condition is immediately demandable.
- Ipapahiram ni debtor ung car nya sa creditor habnggang makapasa sya sa Board exam. Edi ibibigay nya
agad ung car nya hanggang makapasa sya, then kung nakapasa si creditor, obligation nya ring ibalik ung
car ni debtor
Art 1190- upon the happening of the resolutory condition, the parties are bound to return at once what they
received.
Art 1184- The obligation is extinguished when the condition is deemed fulfilled
a. The determinate time for the happening has expired
b. Becomes indubitable the condition cannot happen anymore.

PROVISIONS APPLICABLE TO BOTH KINDS CONDITIONS

Art 1182- Potestive, casual, and mixed conditions
a. Potestative- happening of the condition depends solely on will of the either the debtor or creditior.
Art 1180- Depends upon the will of the debtor kung kalian sya magbabayad
At1197- Ung court na mismo ang magseset ng deadline sa pagbabayad ni debtor kase baka mamatay
na sya e dpa sya nakapag bayad. Mautak met ya
b. Casual- happening of the suspensive , happening of the condition depends on chance or third person.
c. Mixed, will is upon the will of the debtor, creditor, third person or chance
RULES: 1. Condition is casual or mixed (Suspensive of resolutory), both the obligation and condition is valid
2. Condition is potestative and upon the will of the debtor, 7 the condition is
a. Suspensive- both the obligation and the condition void except when pre existing in which case,
only the condition is void
Reasons: no juridical tie, debtor has no burden since the obligation is illusory, and contrary to article
1308
b. Resolutory- Obligation and condition are valid.
Reason: The debtor is interested in the happening of the resolutory condition to
extinguished his obligations
3. Condition is potestarive and upon the will of the creditor, and the condition is
A. Suspensive- both obligatioand condition is valid. The creditor is interested in the happening of
the condition. Depends in the will of the creditor
B. Resolutory- Both obligation and condition is void

Impossimble conditions- Conditions na hndi kailanaman pwedeng mangyari.

1. Contrary to Law, ,morals, public policy order or good customs
2. Impossible to fulfill or happen
Two kinds
 a. Physical or by nature- from the start, dna tlga pwede, therefore, condition and obligation is void
b. Impossibility in fact- The condition is valid, but the obligation is extinguished. Ex. May condition,
possible pero hindi na pwedeng mangyare due to accidents.
Efffects of imposible conditions:
1. Condition is void
2. Obligation is also void
3. Obligation is valid if the performance of the obligation does not depend to the happening of the
condition
4. Pre existing obligation is valid

Art 1191- Rescission or more properly called “resolution” to distinguished from rescission under art 1381
(Rescissibles Contracts). Ito ay remedies.
- The contract creating the obligations is put to an end as if it it never was anf the parties are restored to
their positions where they should be had no contract been made
- Effects of Recission- the parties return ti each other what they have received from one another under the
contract.

Recission takes palce either by:

1. Express stipulation between party
2. Implied under Art 1191
3. Judicial Declaration
The 4 remedies:
1. Exact fulfillment/ specified performance
2. Substitute performance
3. Equivalent perfrormance (payment of damages/ Penal Clause)
4. Rescission
GR: The 4 remedies are exclusive an alternative, 1 can only be chosen.
EXC: The chosen remedy is exact fulfillment but it has become impossible for the debtor to perform, then the
injured party may resort to rescission.
Art 1192- Pari Delicto- When both parties are at fault in their respective obligations
Effects:
1. Liability of the first infractor, if he can be determines, shall mitigated
2. First Infracture cannot be determined- the court will not provided a remedy but leafe the parties as it
found them. The parties shall bear their own losses.

OBLIGATION SUBJECT TERM OR PERIOD

Period or Term- future certain events (necessarily comes) although not known when
- A day certain, determinate or at least determinable.
Period
Period Condition

- Future, certain day, or event the - A contingency- may or may not

happening of which is unknown happen. May be a past event

- Retroactivity does not apply (Art - Retroactivity applies

1187), the certain period fixes the
efficacy of the obligation
 - Art 1197 - Art 1180

- Art 1189 applies - Art 1189 applies

- Art 1195 same as 1188 - Art 1188 same as 1195

- Suspensive or resolutory - May be suspensive od resolutory

Art 1196- Rebuttable presumtions

GR: The presumptions that period stipulated for the benefit or both the debtor and creditor.
Effects:
Creditor- Cannot be demand premature performance
Debtor- Cannot make a premature performance
EXC: There is a stipulation that the period is for the benefit of the
1. Debtor alone: cannot be compelled to render premature performance but he so desires
2. Creditor alone- cannit be compelled to accept premature acceptance but if he so desires , he may.
Art 1197- Judical Period- period fixed by the court
GR: Courts don not have the power a fix the period
EXC: its jurisdictional is invoked and it finds that;
1. Parties did not stipulated a period but it can be inferred that was inteded
2. The conditional obligation is suspensive and potestative that depdnds solely on the will of the
debtor (Art 1180)
May the judicial period be changed by the parties by stipulations.
Ex. 12/30 ang sinet ng court pero nag usap kayo ni debtor internally na I extend, pwede parinppero d
kana pwedeng pumunta sa court kung sa skaling d parn nakanbyad si debtor after your internal usapan .
Art 1198- Right to make use of the period is lost bt the debtor.
GR: Obligatory force of contracts- the parties msut respect the period they set
Exc: Debtor loses the right his right to pay anytime
1. The debtor becomes insolvent Except when there is only a relative insolvency and the debtor gives
security, or a third person guarantee the obligation
2. Debtor promise a security that induces the creditor to consent, and the debtor fails to deliver the
security
3. The security or guarantee furnished by the debtor lost by his own fault or by fortious event unless he
furnishes another security equally satisfactory as the first
4. The debtor violates any of his undertakings
5. The debtor attempts to abscond
6. Stipulated period is the benefit of the creditor alone
Compound Obligations

1. Alternative Obligations
2. Facultative- objective novations

Simple Obligation- isang agreed prestations (choices of obligations)

Art. 1199- Alternative Obligation- ex. Deliver a car with plate number a112, the second one is deliver mount pulag, build
a house Deliver as set oof jewelry, and deliver a piano. Either of all can be perform because anf ginamit ay “or”. Isa lang
ang pipiliin. Debtor has the right to choose. Pag nawal lahat ng obligation na iyon at isa na lang ang natira, mahgiging
simple obligation na un.

- Compound obligation and distributive-

- There are several prestations due but perform all or several of the alteratives prestations in combination
unless the creditor consents

Limitation:

1. The debtor cannot choose void perstation

2. Cannot choose partly perform all or several alternatives,isa lang dapat
3. No choice kung isisa na lang ang naiwan

Art 1201- Communication of choice must be made properly and effectively

Effective- made orally or written

Effect of communication- obligation becomes a simple kung nakapili na si debtor ng gusto niyang ipaadeliver sa
knya among the choices, unless, kung hndi na pwede ung pinili nya, at may prenesent si debtor na bagong choice at nag
agree is creditor, Ok parin un, at dun na papasok ang facultative

Art 1203- Debtor cannot make a choice because of the creditors act. Debtor has options:

1. The debtor rescind the contract

2. The debtor shall choose from the remaining but ensure that the damages incurred will be paid

Art 1204 and 1205- There is loss or impossibility of prestations

Right of choice belongs to Deebtor:

Pag si debtor may kasalan, babayaran nya ung last prestations

With the debtor’s fault, pag may natira pay, pili nlng si creditor sa mga natira

Right of choice belongs to Creditor:

, pag nawla lahat, si creditor ang mamimili na babayaran

Pag hndi lahat nawala, Creditor will choose kung ano ang bbayran ni debtor plus

damages

Art. 1206- Facultative Obligation

- One prestation lang. parang simple siya pero compound tlga kase may substitution na choice
Ex. Pag sinabi ni debtor, palitan na lang pala, gawa ako ng bagong obligation/choice

Before Subtitution

- The oblgation is one a simple obligation

After the substitution- apply Art 1174 and 1189, pag kasalanan ni Creditor, walang magaganap, pag kasalanan ni
Debtor, magbabayad sya sa mga damages
Collective Obligations

- There are two or more debtors

- There are two or more creditors
- There are two or more debtors and creditors.
1. Joint Obligations
2. Solidarity obigations

Joint Obligations- There are many debts as the debtors and credits as the creditors.

Solidarity- 1 creditor 1 debtor, 1 debt.

Art 1207 and 1208- Presumptions: that the obligation is only joint if the obligation os silent as to its nature

Ex. A, B and C (debtor) owns something to XYZ-( creditor) 90k. (joint) pag silent and usapanm or walang napag usapan,
matik equall lahat, ABC tig 30k ang utang, kila XYZ is same din, 30k. Pag may percentage, ok din. Pag joint, ibigay nya ung
share na nasngir nya sa iba, pero pwede ring hndi na depende sa napag usapan. Pag We promise, joint

Ex. Pag solidarity, pag nagbayad partially si A sa XYZ ng partial, ex. 30k, maghahati agad si XYZ sa 30k. yig 10k da. Pag
may isa sa solidarity creditors ang nag forgive ng utang samga debtor, Ok na sa lahat ng creditors at debtors (gratetious).
Pero pag onerous, bayaran ng nagpakawan ng utang ung mga kasama na pinautang niya sa ABC. Pag ung promisory is I
promise, per o signed ABC, Solidarity un.

Art. 1211- Solidarity is not affected even if the solidary debtors are bound by different periods or condition

Art 1212 and 1215- Mutual agency between and among the solidarity creditors- act of one is the act of all. Their
relationship based on trst and…. Kung anu ung gnawa ng isa, raman raman na

Art1213-

GR: A solidarity creditor cannot assign his rights to another.

EXC: the other consent to the assignment andtransferee of credits

Rules:

- Pag X may benefit si YZ, mutual un, pag wak=lang pakialamanan, prejucial, hindi mutual

Art 1214-

GR: Solidarity debtors may pay the obligations ti any of the solidarity creditors

EXC: Pag may nagdemand na creditor kay A lang, or kay X lang kayo magbabayad, pero dapat bingayan nya rin ung
dalawang kasama nya

Art 1221- Prestuation is loss or impossible

1. Without solidary debtor’s fault,

2. Pag kasalanan ng isang debtor, kasalanan na nilang lahat

Art 1222- Defenses available to solidaru debtors

Personal Defenses- Available only to specific debtor but not the. Maykakaiab sila personally. But maybe
complete or partial

Defense derived from the nature of the obligations- Complete defenses

Pag di na kaya ni C na bayaran, pag hahatian ni ABC ang bayad.

Divisible and Indivisible Obligation

Maybe either:

1. Simple
2. Compound, conditional or collective

Divisible- NAhahati ex. Cavan of Rice

Indivisible- Hindi nahahati. Ex. Car

Indivisible vs. Solidarity (Art. 1210)

1. Indivisibility refers to prestation while solidarity refers to relationship between the debtor and the creditors
2. Indivisibility exists as simple, pure, conditional. Period, compound or collective; while solidarity is always
collective but may be compound, conditional or with period

Determination of divisibility or indivisibility

1. Physical indivisibility or Divisibility by nature- thing or service is capable of partial delivery or performance
2. Indivisibility or divisibility by intention- thing or service is physically divisible or physically indivisible like
qualitative division, ideal and intellectual division.

Art 1225 Presumptions

1. That in Obligation to give determinate thing by its nature is in divisible is Indivisible

2. That in personal obligation which can be performed in certain number of days or performed in metric unit and
analogous cases is Divisible

Presumptions do not arise if:

1. There is a law to the contrary

2. Contrary stipulation between the parties (by intention)
- The parties may decide if it is indivisible kahit divisible ung gamit na idedeliver

Art 1209 and 1224- Joint Indivisible Obligation

- Though each debt/credit is distinctive from one another because the obligaton is joint, all the joint creditors
must proceed against all the joint debtor for the enforcement of the whole obligation (being indivisible)
because compliance is possible of the joint debtors do no act together
- All the debtors will deliver the product to the creditor (LAhat sila, dapat meron kse nga joint)

Liability of joint debtors incase of breach: Determinate thing

1. All joint debtors breach the obligation- all are liable proportionate for damages
2. One jpint debtor breaches the obligation- all are liable for damages. The liability non faulting joint debtors is
limited to the price while the breaching joint debtor shall bear full interests and other damages.
Note: Obligation is converted to Obligation for damages

Specific Performance- Wag pilitin si C kung ayaw nya kahit gusto ni A at B

Rescission- Can’t be rin

Substitute Performance-

OBLIGATION WITH A PENAL CLAUSE

- Principal obligaton vs. Accessory obligation (Penalty)

Art 1230- Accessory follows the principal

 - Accessory derives its life from the principal
- So that if the principal is distinguish, walang accessory, but the principal exist without the principal

Purposes of Stipulated properties

1. Deterrent against breach of obligation will have grater liability- Kung papatagalin mo ung obligation mo, mas
lalaki lang ang problema mo. Tapos mas mapapalakas pa ung obligation mo
2. Substitute for indeminity for damages like attornee’s fees, interest collection cost and other cost (liquidated
damages) unless the parties stipulated the aside from the penalty, interest shall be due
Note: If the violaton is attended by fraud, damages over damages will be due
- Even if actual loss is greater than the penalty, stipulated, the debtor is liable for the stipulated penalty
without need of proof
3. A punishment for a violation or non-performance of obligation

Art. 1228- Proof of actual damages is not necessary to demand the stipulated penalty in case of violation or
non-performance

Art 1229

GR: The contract is between the parties, counts has no authority to change the contract unless walang public na
nadadamay at wala kayong ginagawang illegal

EXC: Justice demands when

- Penalties is excessive, iniquitious and unconsciouable

- There is partial or irregular performance not attended by fraud, negligence or delay

Art. 1227- Penalty is not a substitute to the performance of the principal obligation unless the creditor consents in which
case there is a facultative obligation