I. Factors that will make the debtor liable.

1. Contravention of the terms of obligation–if a debtor fails to performed his obligation

(determinate thing) and it must not be due to fortuitous event, the debtor is liable.
2. Fraud–if the debtor had intention or deliberate act in performing the obligation, it
also implies dishonesty or malice.
3. Negligence (Culpa)–the obligor has no malice. There is a voluntary or omission act
that prevents the normal fulfillment of an obligation. If the debtor neglects his duty to
the creditor.
4. Delay-if the debtor not fulfilled the obligation in a specific period of time and if the
creditor demands, the debtor is liable.

II. Give specific examples on the different kinds of obligations and differentiate obligations
from each other.

1. Pure Obligation
- It is an obligation that immediately demandable and also a debt that there is no
specific date for its fulfillment.
 Example: Chim obliges himself to pay Van 3,000php.
2. Conditional Obligation
- This obligation is rises when the condition is fulfilled and it shall be deemed to be
one with a period of time.
 Example: Mr. Antonio give his Porsche 911 to her daughter, if Maria
passes her Architect Examination.

3. Obligation with a period

- It is a kind of obligation in which the performance is subject to a term or period
can only be demandable when that period expires.
 Example: Tan obliges himself to give Federick 300php a month until the
end of the year.
4. Alternative Obligation
- In which the debtor is alternatively bound by a various obligation, but the complete
fulfillment one of them is sufficient to extinguish the obligation.
 Example: Noe agrees to give Thea, upon a sufficient consideration, a car or
1,000,000php.
5. Facultative Obligation
- A type of obligation that one this is a due and but another is paid in its place.
 Example: Chase promise to give a drum set to sky but as a substitute he
may give a piano.
6. Joint obligation
- It is the obligation that is responsible for satisfying liability by two or more
partners to pay back a debt.
 Example: Jack and Rose promise jointly and severally to pay Jerry
9,000php
7. Solidary Obligation
- It is a kind of obligation that allows either obligors or oblige to be bound together,
all owed just a single performance and each entitled to the entirety of it.
 Example: Park, Kim and Jeon are jointly liable to borrowed 100,000 from
Mr. Hope.
8. Divisible Obligation
- Is one of the objects of which, in its delivery or performance is capable for partial
fulfillment.
 Example: Mr. Thompson agreed to pay 15,000php in 3 equal monthly
installments.

9. Indivisible Obligation
- This obligation must be fulfilled at one time and as a whole.
 Example: Mrs. Alvarez obliges himself to deliver to Mr. Tucks a specific
car on December 15.
10. Obligation with a Penal Clause
 - In obligation with a penal clause, all that creditor has to prove and the penalty is
demandable without a proof of actual damages.
 Example: a Forman promised to construct a house for Mr. Justin, the
contract carried a penal clause that in case of non – compliance, Froman
would have to pay a penalty of 150,000php and Mr. Justin suffered damage
in the amount of 50,000php because Forman refuses to construct a house.
But Mr. Justin need not prove fraud to recover the penalty.

III. Kindly explain how can Payment extinguish obligations and; state the different kinds of
payments...... Are rights transmissible?

 A payment can be extinguished obligations if the payment made by debtor to the person
of creditor or by the law to receive extinguishes obligation.
 Different kinds of payments;

a. Dation in payment – in this kind of payment the debtor delivers and transmits to
the creditor the former's ownership over a thing as an accepted equivalent of the
payment or performance of an outstanding debt.
b. Application payments - Payments are applied to Charges, it means that
contractor’s monthly partial invoice for payment.
c. Payment by cession - assignment of the debtor’s property must be involve in
favor of creditors.
d. Tender of payment in consignation - the debtor shall be released from
responsibility by the consignation of the thing or sum due if the creditor to whom
a tender of payment has been made refuses without just cause to accept it.

 Under art. 1311, par 1. obligations derived from a contract are transmissible. Contracts
take effect only between the parties, their assigns and heirs, except in case where the
rights and obligations arising from the contract are not transmissible by their nature, or by
stipulation or by provision of law.
  Rights are can and cannot be transmissible depends on the situation and also depends
between the contract of parties.

IV. What are the different kinds of conditions? What are the different kinds of period?
Explain all briefly and give examples.

 Different kinds of condition;

o Suspensive Condition – a condition which suspends the rights and obligation.
 Example: The seller will sell the land to the buyer if
o Resolutory Condition - If the obligation may be immediately enforced but will
come to an end when the uncertain event occurs
 Example: Ella binds herself to give anna 3,000php monthly allowance for
her payment of her debt, until Anna graduates from college.
 Different kinds of Period
o Suspensive Period - The obligation becomes effective only from the arrival of a
certain day.
 Example: Mr. Perez obliges himself to pay his debt to Mr. Cruz in 3months.
o Resolutory Period – then the obligation is demandable at once but it is
extinguished after the lapse of period.
 Example: Ms. Shie binds herself to support the education of Ella until the
latter reaches his majority age.
 According to source
o Legal Period - When a law, contract, instrument or legal document says "two
years," this means twenty-four (24) calendar months.
o Conventional or voluntary Period – when it is agreed by the parties. an obligation
subject to a period fixed by the parties, this means that before the expiration of the
period, the debtor may not fulfillment the obligation and neither may the creditor
demand.
 Example: On January 1, Mrs. Cruz borrowed from Mr. Ed 50,000php
payable on December 31 at 10% interest. Mrs. Cruz cannot pay before
December 31 without the consent of Mr. Ed. It is presumed that both
 parties are benefited and the period is designated which is December 31.
The debtor benefited because he can use the money for 1 year and also the
creditor benefited because of the interest of money that he would earn for 1
year.
o Judicial Period- when it is fixed by court and as distinguished from the period
fixed by the parties in their contract which is known contractual period.
 Example: Agapito binds himself to pay Agapita a debt of 10,000 little by
little. It means that the duration of the period depends upon the will of the
debtor and also the courts shall also fix the duration of the period when it
depends upon the will of the debtor.
 According to definiteness
o Definite Period – It is fixed and it is known when it will come
o Indefinite Period – It is not fixed and it is no known when it will come and the
courts are usually empowered by law to fix the same.
V. Give the different kinds of negligence. Distinguish fraud from negligence.

 Different kinds of negligence

o Contractual Negligence (Culpa Contractual) – it makes the debtor liable for
damages in a view of his negligence in the fulfillment of pre- existing obligation.
o Civil Negligence (Culpa Aquiliana) – it is a failure to use reasonable care and
claims are made by the injured person.
o Criminal Negligence (culpa Criminal) - when a person acts with a disregard to
obvious risks to human life and safety. The State must prove that a defendant
acted with criminal negligence to convict that person of certain offenses.
 Distinguish Fraud from Negligence
o In Fraud, there is Deliberate intention to cause damage or injury, while in
negligence there is no such intention.
o Waiver of the Liability for future fraud is void while in negligence, in a certain
sense be allowed.
o Fraud must be clearly proved while negligence is presumed from the violation of
a contractual obligation.
 o The liability for fraud cannot be mitigated or reduced by the courts while the
liability in negligence may be reduced according to the circumstances.

VI. What are the rights of the creditors?

 The rights of Creditors are;
o Acquires personal right to the fruits of the thing from the time the obligation to
deliver arises.
o To collect the money that they are owed.
o Bring appropriate actions for preservation of his rights.

VII. Explain Article1189 and 1198. Then how and why Loss of a thing due extinguish
obligations? Explain and give examples.

 In article 1189, whoever has the responsibility to return the item in the event of loss,
deterioration, or improvement. The courts have the authority to evaluate whether the
accomplishment of resolutory conditions has retroactive effect. If the thing is loss without
the fault of the debtor, the obligation shall be extinguished and if the thing is loss through
the fault of debtor, he shall be obliged to pay damages. If the thing is deteriorated without
the fault of debtor, the impairment is to be deducted by creditor. If it is through fault of
debtor, the creditor may choose between the recission of obligation and its fulfillment.
 Example: Osama obliges himself to give Saitama his car worth
1,000,000php if Saitama will sell Osama ‘s Property. The car was lost
without the fault of Osama. The obligation of Osama is extinguished even
if Saitama sells the property.

ARTICLE 1198

The debtor shall lose every right to make use of the period:
 (1) When after the obligation has been contracted, he becomes insolvent, unless he gives
a guaranty or security for the debt;

(2) When he does not furnish to the creditor the guaranties or securities which he has
promised;

(3) When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he immediately
gives new ones equally satisfactory;

(4) When the debtor violates any undertaking, in consideration of which the creditor
agreed to the period;

(5) When the debtor attempts to abscond. (1129)

 In article 1198, the general rule is that the obligation is not demandable, before the lapse
of the period, however, in any of the cases mentioned in Article 1198, the debtor shall
lose every right to make use of the period so the period and the obligation becomes pure
and, therefore, immediately demandable.
 Example: Jackie owes Jack 50,000php due and payable on December with
Jacki’s house as mortgage. If Jackie fails to furnish the said security as
promised, Jack may demand immediate payment. (When debtor does no
furnish guaranties or security promised.)

VIII. Explain clearly the difference between joint and solidary obligations and divisible
and indivisible obligations.
 The difference between joint and solidary obligations are in Joint Obligation It is the
obligation that is responsible for satisfying liability by two or more partners to pay back a
debt while Solidary obligation that allows either obligors or oblige to be bound together.
 In Divisible Obligation, its delivery or performance is capable for partial fulfillment
while on the other hand Indivisible Obligation must be fulfilled at one time and as a
whole.