ACTIVITY

GREEN VALLEY COLLEGE FOUNDATION, INC.
Document Code:
Km.2, Bo.2, Gensan Drive., Koronadal City South Cotabato FM-DEA-033
ANSWER SHEET Issue No: 01 Revision No: 00
Effectivity Date: August 28, 2020
Page No: Page 1 of 1
ANSWER SHEET
Name: RODEL R. ALMEREZ Teacher:

Course/Year: BSBA-MM2 SET -D Subject: BAC 222
Grading Period/Date: Lesson No:
ACTIVITY
1. WHAT IS AN OBLIGATION?
THE POPULAR MEANING OF THE TERM “OBLIGATION” IS A DUTY TO DO OR NOT
TO DO SOMETHING. IN ITS LEGAL SENSE, OBLIGATION IS A CIVIL LAW CONCEPT. AN
OBLIGATION CAN BE CREATED VOLUNTARILY, SUCH AS ONE ARISING FROM A
CONTRACT, QUASI-CONTRACT, OR UNILATERAL PROMISE.
2. WHAT ARE THE ESSENTIAL REQUISITES OF OBLIGATION?
AN ACTIVE SUBJECT; A PASSIVE SUBJECT; THE PRESTATION; AND THE LEGAL
TIE.
3. WHAT ARE THE SOURCES OF OBLIGATION?

IN THE CURRENT CIVIL LAW, THE LEGAL DOCUMENTS AND THE LEGAL FACTS
ARE CONSIDERED TO BE SOURCES OF OBLIGATIONS. THE LEGAL DOCUMENTS
CONSIST OF AGREEMENTS OR UNILATERAL MANIFESTATIONS OF WILL BETWEEN
TWO OR MORE PERSONS, WITH THE INTENTION TO PRODUCE LEGAL EFFECTS THAT
WOULD NOT OTHERWISE OCCUR.
4. WHEN A BILL IS SUBMITTED TO THE PRESIDENT AND HE DOES NOT SIGN NOR
VETO THE SAME AFTER 30 DAYS, WHAT WILL HAPPEN TO THE LAW?
A BILL MAY BECOME A LAW, EVEN WITHOUT THE PRESIDENT'S SIGNATURE, IF
THE PRESIDENT DOES NOT SIGN A BILL WITHIN 30 DAYS FROM RECEIPT IN HIS
OFFICE. A BILL MAY ALSO BECOME A LAW WITHOUT THE PRESIDENT'S SIGNATURE IF
CONGRESS OVERRIDES A PRESIDENTIAL VETO BY TWO-THIRDS VOTE.
5. WHAT IS THE FUNDAMENTAL LAW OF THE LAND?

FUNDAMENTAL LAW OF THE LAND IS CALLED CONSTITUTION, IT IS A SET OF
FUNDAMENTAL PRINCIPLES OR ESTABLISHED PRECEDENTS ACCORDING TO WHICH A
STATE IS GOVERNED.
Exclusive property of Green Valley College Foundation Incorporated. This material or any portions thereof may not be copied, reproduced or
distributed in any manner and for any purpose without the prior written approval of the author.
GREEN VALLEY COLLEGE FOUNDATION, INC. Document Code:
PRACTICAL EXERCISES
A IS OBLIGED TO GIVE C P10,000 WITH INTEREST AT 12% PER ANNUM ON
MARCH 31, 2023 PURSUANT TO CONTRACT OF LOAN.
AS AUTHORIZED BY LAW, A IS OBLIGED TO TAKE PAYMENT BEFORE

DECEMBER 31. ARTICLE 1196 STATES THAT WHENEVER A PERIOD IS
DESIGNATED IN AN OBLIGATION, IT IS PRESUMED TO HAVE
BEEN ESTABLISHED FOR THE BENEFIT OF BOTH THE CREDITOR AND THE
DEBTOR, UNLESS IT APPEARS FROM THE TENOR OF THE SAME OR OTHER
CIRCUMSTANCES THAT THE PERIOD HAS BEEN ESTABLISHED IN FAVOR
OF ONE OR THE OTHER. THIS IS ONLY VALID IF A PAYS THE 10,000 PLUS ALL
ACCRUED INTEREST BEFORE MARCH 31.
KINDLY DETERMINE THE PASSIVE SUBJECT, ACTIVE SUBJECT, PRESTATION AND

EFFICIENT CAUSE.
1. A PASSIVE SUBJECT (CALLED DEBTOR OR OBLIGOR) - THE PERSON WHO IS
BOUND TO THE FULFILLMENT OF THE OBLIGATION, HE WHO HAS A DUTY.
2. AN ACTIVE SUBJECT (CALLED CREDITOR OR OBLIGEE) - THE PERSON WHO

IS ENTITLED TO DEMAND THE FULFILLMENT OF THE OBLIGATION, HE WHO HAS
A RIGHT.
3. OBJECT OR PRESTATION (SUBJECT MATTER OF THE OBLIGATION) - THE

CONDUCT REQUIRED TO BE OBSERVED BY THE DEBTOR.
4. A JURIDICAL OR LEGAL TIE (ALSO CALLED EFFICIENT CAUSE) - THAT WHICH

BINDS OR CONNECTS THE PARTIES OF THE OBLIGATION.
WHAT IS THE CONCEPT OF A QUASI-CONTRACT UNDER THE NEW CIVIL CODE?

DISCUSS THE DIFFERENT TYPES OF QUASI-CONTRACTS, INCLUDING SOLUTE
INDEBUTT NEGOTIOUR GESTIO, AND UNJUST ENRICHMENT. PROVIDE EXAMPLES OF
EACH TYPE OF QUASI-CONTRACT.
THE 1987 PHILIPPINE CONSTITUTION STATES ARTICLE III. BILL OF RIGHTS, SEC 1, NO
PERSON SHALL BE DEPRIVED OF LIFE, LIBERTY, OR PROPERTY WITHOUT DUE
PROCESS OF LAW, NOR SHALL ANY PERSON BE DENIED THE EQUAL PROTECTION OF
THE LAWS. SEC 9, CONTINUES, PRIVATE PROPERTY SHALL NOT BE TAKEN FOR
PUBLIC USE WITHOUT JUST COMPENSATION. ARTICLE 2142. CERTAIN LAWFUL,
VOLUNTARY AND UNILATERAL ACTS GIVE RISE TO THE JURIDICAL RELATION OF
QUASI-CONTRACT TO THE END THAT NO ONE SHALL BE UNJUSTLY ENRICHED OR
BENEFITED AT THE EXPENSE OF ANOTHER. (ARTICLE 2142, NCC.) ONCE THE
LEGITIMACY OF THE EXPROPRIATION IS DETERMINED, THE ONLY PURPOSE OF THE
COURT IS TO DETERMINE JUST COMPENSATION AND APPLIES EQUALLY TO THE
RESPECTIVE PLAINTIFF AND DEFENDANTS LAWYERS AND OVERRIDES DUTY TO
CLIENT.
TYPES OF QUASI-CONTRACTS
 NEGOTIORUM GESTIO IS THE VOLUNTARY ADMINISTRATION OF THE

PROPERTY, BUSINESS OR AFFAIRS OF ANOTHER, WITHOUT HIS CONSENT OR
AUTHORITY, THAT CREATES AN OBLIGATION FOR REIMBURSEMENT FOR THE
NECESSARY EXPENSES THE GESTOR HAD SPENT.
EXAMPLE: JULIET LEFT HER FARM UNATTENDED FOR 1 WEEK BECAUSE SHE IS
HAVING A VACATION. ROMEO, A CONCERNED LOVER IN SECRECY, NOTICED
THAT JULIET HAS NOT BEEN AROUND AND THE PLANTS ARE SLOWLY DYING.
OUT OF AFFECTION, ROMEO CULTIVATED THE LAND, WATERED THE PLANTS,
BUY FERTILIZERS AND PLACED FERTILIZERS TO THE PLANTS, REMOVED THE
WEEDS AND DO ALL WHAT A FARMER SHOULD DO. ROMEO SPENT NECESSARY
EXPENSES WHICH NEEDS TO BE REIMBURSED IN ORDER FOR JULIET NOT TO
UNJUSTLY ENRICH HERSELF AT THE EXPENSE OF ROMEO.
 SOLUTIO INDEBITI REFERS TO PAYMENT BY MISTAKE. IT IS RECEIVING

PAYMENT BY MISTAKE THAT IS NOT DUE OR DOES NOT HAVE SUCH RIGHT TO
DEMAND SUCH PAYMENT. IT CREATES AN OBLIGATION TO RETURN SUCH
PAYMENT.
EXAMPLE: ROMEO BOUGHT GOODS FROM JULIET STORE. THE GOODS COST
Php.1500. ROMEO GAVE Php.2000 TO THE STORE CASHIER AND RECEIVE A
CHANGE OF Php.700. ROMEO IS DUTY BOUND TO RETURN THE EXCESS OF
Php.200 TO THE STORE. OTHERWISE, HE WILL BE UNJUSTLY ENRICHING
HIMSELF AT THE EXPENSE OF JULIET STORE.
DISCUSS THE DIFFERENCES BETWEEN NATURAL OBLIGATIONS AND CIVIL

OBLIGATIONS UNDER THE NEW CIVIL CODE. HOW ARE THESE OBLIGATIONS
CREATED AND HOW ARE THEY ENFORCED? PROVIDE EXAMPLES OF EACH TYPE OF
OBLIGATION.
AN OBLIGATION ARE CIVIL OR NATURAL. CIVIL OBLIGATION IS BASED ON A POSITIVE

LAW AND GIVES RIGHT OF ACTION TO COMPEL THEIR PERFORMANCE, WHILE
NATURAL OBLIGATION IS BASED ON NATURAL LAW, BUT ON EQUITY AND MORAL
JUSTICE. HENCE, IT IS NOT ENFORCEABLE BY COURT ACTION, BUT AFTER
VOLUNTARY PERFORMANCE OF THE DEBTOR, HE CAN NO LONGER RECOVER WHAT
HE HAS GIVEN.
EXAMPLE: ROMEO EXECUTED A PROMISSORY NOTE IN FAVOR OF JULIET FOR Php50,
000. ROMEO IS THE DEBTOR (PAYOR) WHILE JULIET IS THE CREDITOR (PAYEE). IF
ROMEO DOES NOT PAY ON DUE DATE, JULIET CAN ENFORCE THE FULFILLMENT OF
THE OBLIGATION BY COURT ACTION. IF JULIET DOES NOT FILE A COURT ACTION
AGAINST JULIET WITHIN 10 YEARS FROM DUE DATE WHICH IS THE PRESCRIPTIVE
PERIOD FOR AN ACTION AGAINST A WRITTEN CONTRACT. JULIET LOOSES THE RIGHT
TO EXACT PERFORMANCE BY COURT ACTION. HOWEVER, IF ROMEO, OUT OF HIS
LOVE FOR JULIET, VOLUNTARILY MAKES THE PAYMENT TO JULIET THOUGHT SUCH
OBLIGATION HAS PRESCRIBED, ROMEO WILL NO LONGER BE ALLOWED TO RECOVER
WHAT HE HAS GIVEN AS PAYMENT BECAUSE ALTHOUGH THE OBLIGATION HAS
PRESCRIBED, IN EQUITY AND MORAL JUSTICE, ROMEO STILL OWED JULIET THE
AMOUNT OF Php.50, 000.
WHAT ARE THE DIFFERENT WAYS IN WHICH OBLIGATIONS CAN BE MODIFIED UNDER
THE NEW CIVIL CODE? DISCUSS THE DIFFERENCES BETWEEN NOVATION,
COMPENSATION, AND CONFUSION. PROVIDE EXAMPLES OF EACH TYPE OF
MODIFICATION.
OBLIGATIONS MAY BE MODIFIED BY:
(1) CHANGING THEIR OBJECT OR PRINCIPAL CONDITIONS;
(2) SUBSTITUTING THE PERSON OF THE DEBTOR;
(3) SUBROGATING A THIRD PERSON IN THE RIGHTS OF THE CREDITOR. (1203)
 NOVATION
ARTICLE 1292. IN ORDER THAT AN OBLIGATION MAY BE EXTINGUISHED BY
ANOTHER WHICH SUBSTITUTE THE SAME, IT IS IMPERATIVE THAT IT BE SO
DECLARED IN UNEQUIVOCAL TERMS, OR THAT THE OLD AND THE NEW
OBLIGATIONS BE ON EVERY POINT INCOMPATIBLE WITH EACH OTHER. (1204)
FOR EXAMPLE, A SUPPLIER WHO WANTS TO RELINQUISH A BUSINESS CUSTOMER
MIGHT FIND ANOTHER SOURCE FOR THE CUSTOMER. IF ALL THREE AGREE, THE
CONTRACT CAN BE TORN UP AND REPLACED WITH A NEW CONTRACT THAT
DIFFERS ONLY IN THE NAME OF THE SUPPLIER.
 COMPENSATION
ARTICLE 1278. COMPENSATION SHALL TAKE PLACE WHEN TWO PERSONS,
IN THEIR OWN RIGHT, ARE CREDITORS AND DEBTORS OF EACH OTHER. (1195)
FOR EXAMPLE, A OWES B THE AMOUNT 1,000. B OWES A THE AMOUNT

1,000. IF TWO DEBTS ARE OF THE SAME AMOUNT, THERE IS TOTAL
COMPENSATION A OWES B AMOUNT 1,000. B OWES A AMOUNT 700.
 CONFUSION
ARTICLE 1276. MERGER WHICH TAKES PLACE IN THE PERSON OF THE
PRINCIPAL DEBTOR OR CREDITOR BENEFITS THE GUARANTORS. CONFUSION
WHICH TAKES PLACE IN THE PERSON OF ANY OF THE LATTER DOES NOT
EXTINGUISH THE OBLIGATION. (1193)
ARTICLE 1277. CONFUSION DOES NOT EXTINGUISH A JOINT OBLIGATION EXCEPT

AS REGARDS THE SHARE CORRESPONDING TO THE CREDITOR OR DEBTOR IN
WHOM THE TWO CHARACTERS CONCUR. (1194)
WHEN CONFUSION TAKES PLACE, THE OBLIGATION IS EXTINGUISHED. THE
REASON BEHIND THIS IS BECAUSE IT IS ABSURD THAT A PERSON SHOULD
ENFORCE AN OBLIGATION AGAINST HIMSELF. FOR EXAMPLE, A EXECUTED A
PROMISSORY NOTE PAYABLE TO B. B PAYED HIS DEBT TO C USING THE
PROMISSORY NOTE EXECUTED BY A.

ACTIVITY

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GREEN VALLEY COLLEGE FOUNDATION, INC.

Name: RODEL R. ALMEREZ Teacher:

3. WHAT ARE THE SOURCES OF OBLIGATION?

5. WHAT IS THE FUNDAMENTAL LAW OF THE LAND?

AS AUTHORIZED BY LAW, A IS OBLIGED TO TAKE PAYMENT BEFORE

KINDLY DETERMINE THE PASSIVE SUBJECT, ACTIVE SUBJECT, PRESTATION AND

2. AN ACTIVE SUBJECT (CALLED CREDITOR OR OBLIGEE) - THE PERSON WHO

3. OBJECT OR PRESTATION (SUBJECT MATTER OF THE OBLIGATION) - THE

4. A JURIDICAL OR LEGAL TIE (ALSO CALLED EFFICIENT CAUSE) - THAT WHICH

WHAT IS THE CONCEPT OF A QUASI-CONTRACT UNDER THE NEW CIVIL CODE?

 NEGOTIORUM GESTIO IS THE VOLUNTARY ADMINISTRATION OF THE

 SOLUTIO INDEBITI REFERS TO PAYMENT BY MISTAKE. IT IS RECEIVING

DISCUSS THE DIFFERENCES BETWEEN NATURAL OBLIGATIONS AND CIVIL

AN OBLIGATION ARE CIVIL OR NATURAL. CIVIL OBLIGATION IS BASED ON A POSITIVE

OBLIGATIONS MAY BE MODIFIED BY:

(1) CHANGING THEIR OBJECT OR PRINCIPAL CONDITIONS;

(2) SUBSTITUTING THE PERSON OF THE DEBTOR;

(3) SUBROGATING A THIRD PERSON IN THE RIGHTS OF THE CREDITOR. (1203)

FOR EXAMPLE, A OWES B THE AMOUNT 1,000. B OWES A THE AMOUNT

ARTICLE 1277. CONFUSION DOES NOT EXTINGUISH A JOINT OBLIGATION EXCEPT

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