OBLICON MIDTERM – REVIEWER
a. Private Law – regulates the relations of
Law – science of moral laws founded on the
rational nature of man.
- rule of conduct, just, obligatory, formulated
by legitimate power for common observance
and benefit.
Purpose of Law
- to establish rules to govern their conduct.
- to maintain harmony, stability, and justice
within a society.
Classification of Law
general classification:
1. Natural law – specific principles derived
from nature, or based on morality or equity
which are binding upon human society.
2. Positive law may be classified as follows:
a. Divine Positive Law – laws
promulgated by a Supreme Being
b. Divine-Human Positive Law – precepts
established by authorities within a
religious sect or denomination (e.g.,
spiritual and corporal works of mercy)
c. Human Positive Law – principles
promulgated by the State and which
generally imposes a sanction in case of
non-observance (e.g., Philippine
Constitution)
according to function:
a. Substantive Law – creates, defines and
establishes rights and duties.
b. Procedural, remedial, or adjective law –
determines the process of enforcing such
rights and duties.
according to scope:
the members of a community with one
another.
b. Public Law – concerned with regulating
the relations of individuals with the State
and the organization and conduct of the
government.
according to force or effect:
a. Mandatory laws – requires something to
be done.
b. Permissive laws – allow the discretion
on the part of the individual.
c. Prohibitory laws – forbid an act to done.
Sources of Law
1. Constitution
2. Acts passed by the legislature and
ordinances enacted by local
governments.
3. Judicial decisions
4. Administrative regulations
OBLIGATIONS AND CONTRACTS
General Provisions
Obligation – a juridical necessity to give to do or
not to do.
juridical necessity
- without a right, there is no obligation.
- the debtor must perform his obligation.
- noncompliance = legal sanctions
to give – delivery of a thing to the creditor
to do – covers all kinds of services
not to do – refraining from doing some acts

Elements of obligation
a. Active Subject – person who has the right to
demand performance (creditor or oblige)
b. Passive Subject – person from whom the
performance of obligation is demandable
c. Object/Prestation – subject matter of the
obligation (giving, doing, not doing)
d. Efficient Cause – vinculum (legal bond) or
juridical ties that binds the parties to the
obligation.
Quasi-contracts – juridical relation arising
from certain lawful, voluntary, and unilateral
acts
Kinds of quasi-contracts
a. Negotiorium gestio – takes place when
a person voluntarily takes charge of the
business or property of another
b. Solutio indebiti - takes place when
something is received when there is no
right to demand it, and it was unduly
delivered through mistake. the recipient
must return what was received by
mistake

- Acts or omissions punished by law

Civil Obligations Natural Obligations
(felonies) – if there is no material damage is
- based on - based on caused, civil liability cannot be enforced.
positive law equity and - the offender is only criminally liable and
- give a right to natural law may be imposed a sentence which may
compel their - do not grant a consist of imprisonment, payment of fine, or
performance. right of action disqualification to hold public office
to compel
their civil liabilities – restitution, reparation of the
performance. damage caused, and indemnification of
consequential damages.
Positive Obligations Natural Obligations

- to give or to - to not do - Quasi-delict (tort or culpa aquiliana) – acts

do or omission which causes damages to
Unilateral Bilateral another there being fault or negligence but
- only one of - where both without any pre-existing contractual
the parties is parties are relations between parties
bound bound
Requisites
Sources of Obligations
- damages suffered by the plaintiff (accuser)
- Law – an obligation arises from law if it is - fault or negligence of the defendant
imposed by the law itself (e.g., pay taxes, - cause and effect between the fault of the
fidelity, obligation not to give alms to defendant and the damages incurred by the
beggars) plaintiff
- must be clearly set forth in the law in order
that it may be demandable
- Contracts – meeting of minds between two
or more persons whereby one binds himself
to give something or to render service
- arises from the agreement of the parties
- the contract must be valid and enforceable

imposed by law:
 NATURE AND EFFECT OF
OBLIGATIONS
Determinate Thing (Specific Thing)
- particularly designated
- physically segregated from its class
Indeterminate Thing (Generic Thing)
- class or genus without being distinguished
from others
Obligations of one obliged to give a determinate
thing (not applicable in generic thing)
I. preserve the thing
a. must exercise diligence of a good father of
a family (ordinary diligence) unless the law or
stipulation requires a different standard of care.
Common Carriers – bound to observe extraordinary
diligence.
Failure to observe diligence shall be liable for the
payment of damages.
Nature of the creditor’s right
prior to delivery – personal right (jus in
personam or jus ad rem)
- right is enforceable against a definitive
passive subject only
after delivery – real right (jus in re)
- right is enforceable against the whole world
Remedies of the creditor when the debtor fails
to perform an obligation to give (real obligation
a. determinate thing
- to compel the debtor to make the delivery
(specific performance)
- demand payment of the damages
(equivalent performance)
b. generic thing
- to ask that the obligation be complied with
at the expense of the debtor (substituted
performance)
- institute court action against the creditor

Loss due to a fortuitous event of the determinate

Kinds of Fruits
thing
Natural Industrial Civil
fortuitous event extinguishes the debtor’s obligation
Spontaneous Produced Juridical unless:
product (no through relation (e.g.,
- he is guilty of delay
human labor cultivation or rent)
involved) labor - he promised to deliver the same thing to two
or more persons who do not have the same
interest
right of the creditor to the fruits
a. if the obligation is a pure obligation, the
obligation to deliver arises from its Accessions – include everything which is produced
perfection. by a thing or which is incorporated or attached
b. if the obligation is a suspensive condition, thereto (naturally or artificially)
the obligation to deliver arises upon the
Accessories – anything that is attached or included
fulfillment of the condition or upon the
in another thing of more importance to add to the
arrival of the term.
utility, ornamentation, preservation or completion of
the latter.
positive personal obligation – obligation to do

Kinds of Damages
Moral – physical suffering, mental anguish, fright,
serious anxiety, besmirched feelings, moral shock,
social humiliation, and similar injury
Exemplary or corrective – imposed by way of
example or correction for public good.
Nominal – to vindicate (justify) a right
Temperate or moderate – more than nominal but
less than compensatory
Actual – pecuniary loss or losses that can be
measured in money.
Liquidated – agreed upon the parties to a contract to
be paid in case of breach.
Fraud (dolo) – deliberate and intentional evasion
by the debtor of the normal compliance of his
obligation.
- any waiver of an action for future fraud is
void
Malice – performing an obligation.
Deceit – obtaining consent.
Causal Fraud (dolo causante) – without which
consent would not have been given
- upon the perfection of the contract
Incidental Fraud (dolo incidente) – fraud without
which consent would have still been given but the
person giving it would have agreed on different
terms
- upon performance
Negligence/Culpa – consist in the omission of that
diligence which is required by the
- nature of the nature
and corresponds with the circumstances of the:
- persons
- time
- place
Kinds of Negligence
1. Culpa aquiliana (quasi-delict) – committed
independent of contract and without
criminal intent
2. Culpa contractual (Contractual negligence) –
committed in the performance of a contract
3. Culpa Criminal (Criminal Negligence) –
negligence that results in the commission of
a crime
Delay/Mora – non-fulfillment of an obligation
with respect to time.
Kinds of Delay
a. Mora Solvendi – delay on the part of the
debtor
effects:
- creditor may ask for damages
- debtor liable even if his loss is due to a
fortuitous event
- the debtor shall bear the risk of loss
b. Mora accipiendi – delay on the part of the
creditor
effects:
- creditor shall bear the risk
- expenses incurred by the debtor for
preservation of thing after the delay shall be
chargeable to creditor
- if the obligation has interest, debtor shall
not have obligation to pay the same from the
time of the delay
- creditor becomes liable for damages
c. Compensatio Morae – both parties in
reciprocal obligations are in delay
 effects:
- delay on both sides in reciprocal
obligations cancel each other out
- there is no actionable default on the part of
both parties
Fortuitous Events – an event that could not be
foreseen, or which though foreseen, was inevitable.
- must be impossible to foresee or avoid.
Examples:
acts of God – lighting, earthquake, and flood
force majeure (acts of man) – war, robbery
general rule – no person shall be responsible for
fortuitous event (obligation will be extinguished)
exceptions:
a. when expressly specified by law (Art. 1170)
b. when expressly declared by stipulation or
contract – freedom of contract
c. when nature of the obligation requires the
assumption of risk – obligor is fully aware
of the risk involved in an obligation
- “no wrong is done to one who consents”
Usury – contracting for receiving something in
excess of the amount allowed by law.
Presumption - inference as to the existence of a
fact not actually known, arising from its usual
connection with another which is known.
Kinds of Presumption
a. Conclusive presumption – not allowed to be
contradicted by other evidence.
b. Disputable presumption – permitted to be
contradicted and overcome by other evidence.
Remedies available to creditors for the satisfaction
of their claims
1. Demand fulfillment of obligation with right
to damages
2. Attachment - exhaustion of the debtor’s
properties still in his possession
3. Subrogatory Action (accion subrogatoria) -
“the debtor of my debtor is my debtor”
4. Accion Pauliana – impugn the acts which
the debtor may have done to defraud his
creditors.
Transmissibility of rights
general rule = all rights acquired in virtue of an
obligation are transmissible
KINDS OF OBLIGATIONS
1. according to demandability
a. Pure obligation – without a term or
condition, demandable at once
b. Conditional Obligation – demandability or
extinguishment is subject to the happening
of a condition
condition – uncertain event which wields an
influence on a legal relationship
kinds of conditions
Suspensive condition (condition precedent or
condition antecedent) – suspends the effectivity of
the obligation until the condition is fulfilled.
- fulfillment of condition = commencement of
obligation
Resolutory condition (condition subsequent) – a
condition which extinguishes the obligation upon its
fulfillment
- fulfillment of condition = extinguishment of
obligation
under the provision
- Potestative Condition (facultative
condition) – condition that depends upon the
exclusive will of one of the parties
- Casual condition – condition that depends
upon chance or upon the will of a third
person
- Mixed Condition – depends partly upon the
will of one of the parties and partly upon
chance
exceptions:
1. resolutory
- Possible condition – capable of fulfillment
- Impossible condition – incapable of performance
or cannot be physically done (physical or legal)
- Positive condition – condition that some event
will happen at a determinate time.
- Negative condition – condition that some event
will not happen in a determinate time.
Constructive fulfillment – condition shall be
deemed fulfilled when the obligor voluntarily
prevents its fulfillment.
Rules in case of loss
1. if the thing is loss due to the fault of the
debtor, the obligation shall be extinguished
2. if the things is lost through the fault of the
debtor, he shall be obliged to pay damages
Rules in case of deterioration
1. if the thing deteriorates without the fault of
the debtor, the impairment shall be borne by
the creditor
2. if the thing deteriorates through the fault of
the debtor, the creditor may choose between
the recission of the obligation and its
fulfillment, with a right to damages in
either case.
Rules in case of improvement
1. if the thing is improved by its nature, or by
time, the improvement shall inure to the
benefit of the creditor
2. if the thing is improved at the expense of the
debtor, he shall have no other right than
granted to the usufructuary.
Usufruct – right to enjoy the property of
another with the obligation of preserving its
form and substances
Right to rescind
1. exist only in reciprocal obligations
Reciprocal Obligation – one that arises
from the same cause and which is each party
is a debtor and a creditor of the other
- performed simultaneously
-
2. can be demanded only if the parties is ready,
willing and able to comply with his own
obligations and the other is not
3. implied
4. not automatic or absolute
- when the object is not yet delivered
- the contract states that either party can
rescind
5. remedies of the injured party are alternative
and not cumulative
- rescission plus damages
- fulfillment of the obligation plus damages
6. the court is given discretionary power to fix a - may validly pay at any time before the
period, instead if rescinding the obligation period expires
especially if the breach is slight or casual

When court may fix the period

OBLIGATIONS WITH A PERIOD
- a period was intended
- one whose demandability or extinguishment is - depends upon the will of the debtor
subjected to the expiration of the term which must
necessarily come
When court may not fix period
Period – space of time which determines the
effectivity or extinguishment of an obligation. - when no term was intended
- payable on demand
A day certain – must necessarily come although it
- when period is specified by law
may not be known when.

Effect when debtor loses the benefit of the period:

Kinds of period
- if the debtor loses the benefit of the period,
according to effect
the obligation becomes pure obligation and
1. Suspensive period (ex-die) – the expiration is immediately demandable
of which causes the obligation to arise
Abscond – depart secretly and hide oneself
2. Resolutory Period (in diem) – causes the
extinguishment of the obligation

ALTERNATIVE AND FACULTATIVE

according to source
1. legal period – fixed by law
2. voluntary period – fixed by the stipulation of
the parties
3. judicial period – fixed by the court
Party benefited by period – both debtor and creditor
unless from the tenor of the obligation or other
circumstances it should appear that the period has
been established for only one of them
If the period is for the benefit of the creditor only:
- creditor can demand performance at any
time
- debtor cannot insist on prepayment
If the period is for the benefit of the debtor only:
- debtor can oppose a premature demand for
payment
OBLIGATIONS
1. Simple Obligation – only one prestation
2. Compound Obligation – two or more
prestation
- conjunctive – several prestations are due
- distributive – only one of two or more
prestations needs to be performed.
Alternative Obligations – several prestations are
alternatively due but the complete performance of
one of them by the debtor is sufficient to extinguish
the debt.
- the creditor cannot be compelled to receive
a part of another prestation unless the
creditor consents
Right of choice – belongs to the debtor unless it has
been expressly granted to the creditor
 - shall produce no effect except from the time render him
it has been communicated liabl
If one of the The other The nullity of
When the choice made by the debtor is prestations is prestations the prestation
communicated, the alternative obligation is illegal may be valid agreed upin
converted into a simple obligation and the invalidates the
obligations obligation/the
- no particular form required
remains debtor is not
- choice properly made and communicated is bound to
irrevocable choose
substitute
If it is if it is If impossible
If the debtor cannot make a choice due to the impossible to impossible to to give the
creditor’s act, he may rescind the contract with a give give all, principal, the
right to ask for damages except one, substitute
the last one does not have
must be to be given
Facultative Obligation – obligation where only given
one prestation has been agreed upon but the debtor
may render another in substitution.
- the right to determine whether the substitute
is to be given or not belongs to the debtor

Alternative Facultative
No of Various Only one
prestations things are thing is
due but the principally
giving of one due, but the
is sufficient other may be
given to
render
payment or to
fulfill
obligation
Right ofEither debtor Only the
choice or creditor debtor
Loss through The loss of The loss of
fortuitous one or more the thing due
event of the extinguishes
alternatives the obligation
does not
extinguish
the
obligation
Loss through If the right of Render him
the fault of choice liable
the debtor belongs to
the debtor,
does not