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RFBT.2901 Obligations
RFBT.2901 Obligations
LECTURE NOTES
OBLIGATION there shall be no right to recover the same from the obligee
who has spent or consumed it in good faith. (1427)
OBLIGATION – originate from the latin word obligatio, ➢ When, after an action to enforce a civil obligation has
means tying or binding. failed the defendant voluntarily performs the obligation, he
cannot demand the return of what he has delivered or the
Civil obligations - is a juridical necessity to give, to do or not payment of the value of the service he has rendered.
to do. It gives a right of action to compel their performance (1428)
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➢ Juridical necessity to give, to do or not to do (1156) ➢ When a testate or intestate heir voluntarily pays a debt of
➢ Right of action to compel their performance the decedent exceeding the value of the property which he
➢ Right to enforce the obligation against the obligor in a received by will or by the law of intestacy from the estate
court of law in case of breach of the deceased, the payment is valid and cannot be
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rescinded by the payer. (1429)
ELEMENTS: ➢ When a will is declared void because it has not been
1. Active subject (obligee/creditor/lender/plaintiff/he who has executed in accordance with the formalities required by
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the right) – the one in whose favor the obligation is law, but one of the intestate heirs, after the settlement of
constituted the debts of the deceased, pays a legacy in compliance
2. Passive subject - obligor/debtor/borrower/defendant/he with a clause in the defective will, the payment is effective
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who has the obligation) – the one who has the duty of and irrevocable. (1430)
giving, doing or not doing
3. Object – prestation; the conduct which has to be observed Sources of obligation (1157)
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Natural obligations - not being based on positive law but on b. Quasi contract (obligation ex quasi contractu) (Chapter
equity and natural law, do not grant a right of action to enforce 1, Title XVII) – juridical relation resulting from
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their performance, but after voluntary fulfillment by the lawful, voluntary and unilateral (LUV) act to the
obligor, they authorize the retention of what has been delivered end that no one shall be unjustly enriched or benefited
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➢ When a right to sue upon a civil obligation has lapsed by b. Negotiorum gestio – When a person voluntary
extinctive prescription, the obligor who voluntarily takes charge of another’s abandoned business
performs the contract cannot recover what he has delivered or property without the owner’s authority
or the value of the service he has rendered. (1424) where reimbursement must be made for
➢ When without the knowledge or against the will of the necessary and useful expenses.
debtor, a third person pays a debt which the obligor is not Requisites:
legally bound to pay because the action thereon has a.) Property or business is abandoned or
prescribed, but the debtor later voluntarily reimburses the neglected
third person, the obligor cannot recover what he has paid. b.) The manager is unauthorized (express or
(1425) implied)
➢ When a minor between eighteen and twenty-one years of c.) The unauthorized manger voluntary take
age who has entered into a contract without the consent of charge the abandoned property.
the parent or guardian, after the annulment of the contract 2. Innominate quasi contract
voluntarily returns the whole thing or price received, Art. 2164. When, without the knowledge of the
notwithstanding the fact the he has not been benefited person obliged to give support, it is given by a
thereby, there is no right to demand the thing or price thus stranger, the latter shall have a right to claim the
returned. (1426) same from the former, unless it appears that he
➢ When a minor between eighteen and twenty-one years of gave it out of piety and without intention of being
age, who has entered into a contract without the consent of repaid.
the parent or guardian, voluntarily pays a sum of money or Art. 2165. When funeral expenses are borne by a
delivers a fungible thing in fulfillment of the obligation, third person, without the knowledge of those
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cause a person is injured or becomes seriously ill,
and he is treated or helped while he is not in a Effect of acquittal in criminal case:
condition to give consent to a contract, he shall be • when acquittal is due to reasonable doubt – no
liable to pay for the services of the physician or civil liability
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other person aiding him, unless the service has • when acquittal is due to exempting circumstances
been rendered out of pure generosity. – there is civil liability
Art. 2168. When during a fire, flood, storm, or • when there is preponderance of evidence – there is
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other calamity, property is saved from destruction civil liability
by another person without the knowledge of the
owner, the latter is bound to pay the former just d. Quasi delict (obligation ex quasi maleficio or quasi
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compensation. delicto) (Chapter 2, Title XVII and special law) – Act
Art. 2169. When the government, upon the or omission causes damage to another, there being
failure of any person to comply with health or
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fault or negligence, is obliged to pay for the damage
safety regulations concerning property, undertakes done there being no pre-existing contractual relation
to do the necessary work, even over his objection,
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more persons are commingled or confused, the b) There must be damage or injury
rules on co-ownership shall be applicable. c) There must be a direct relation of cause and effect
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Art. 2171. The rights and obligations of the between the fault or negligence on the one hand
finder of lost personal property shall be governed and the damage or injury on the other hand
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faith to reimbursement for necessary and useful Obligation expressly arising from Quasi delict
expenses is governed by article 546. 1. The father and, in case of his death or incapacity,
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Art. 2173. When a third person, without the the mother, are responsible for the damages caused
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knowledge of the debtor, pays the debt, the rights by the minor children who live in their company.
of the former are governed by articles 1236 and 2. Guardians are liable for damages caused by the
1237. minors or incapacitated persons who are under
Art. 2174. When in a small community, a
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nationality of the inhabitants of age decide upon a 3. The owners and managers of an establishment or
measure for protection against lawlessness, fire, enterprise are likewise responsible for damages
flood, storm or other calamity, anyone who objects caused by their employees in the service of the
to the plan and refuses to contribute to the branches in which the latter are employed or on
expenses but is benefited by the project as the occasion of their functions.
executed shall be liable to pay his share of said 4. Employers shall be liable for the damages caused
expenses. by their employees and household helpers acting
Art. 2175. Any person who is constrained to pay within the scope of their assigned tasks, even
the taxes of another shall be entitled to though the former are not engaged in any business
reimbursement from the latter. or industry.
5. The State is responsible when it acts through a
c. Delict (obligation ex maleficio or delicto) special agent; but not when the damage has been
Governing rules: caused by the official to whom the task done
1. Pertinent provisions of the RPC and other penal properly pertains.
laws subject to Art 2177 Civil Code. 6. Teachers or heads of establishments of arts and
• Art 100, RPC – Every person criminally liable trades shall be liable for damages caused by their
for a felony is also civilly liable pupils and students or apprentices, so long as they
2. Chapter 2, Preliminary title, on Human Relations remain in their custody.
(Civil Code) ➢ The possessor of an animal or whoever may make
3. Title 18 of Book IV of the Civil Code – on use of the same is responsible for the damage
damages
which it may cause, although it may escape or be b. Traditio brevi manu – A possessor of a thing not
lost. This responsibility shall cease only in case as an owner, becomes the possessor as owner (i.e.
the damage should come from force majeure or Lessor sells the thing leased to the lessee)
from the fault of the person who has suffered c. Taditio longa manu – mere consent or agreement
damage. (2183) of the parties. (pointing out the object)
➢ d. Traditio constitutum possessorium – A possessor
2. Contract (obligation ex contractus) – Meeting of mind of a thing as an owner retains possession no longer
between two (2) person whereby one binds himself with as an owner, but in some other capacity. This is
respect to another to give something or render some the opposite of tradition brevi manu. (i.e. A
service. (1306) It has a force of law between the possessor vendor stay as tenant on the vendee)
contracting party and must be complied with n good faith e. Execution of a public instrument
(1159)
Rule:
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Kinds of obligation according to subject matter a. Before delivery of the thing – Creditor has personal
a. Real obligation right (jus in personam or jus ad rem). (1164)
a. Specific or determinate object – particularly b. Creditor acquires real right (jus in re) only at the time
designated or physically segregated from all others of delivery.
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of the same class.
Loss of the object without fault of debtor – 5. Damages in case of breach
obligation extinguish With the fault of the debtor (1170)
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b. Generic or indeterminate – Thing refers to a class, I. Fraud (dolo)
to a genus and cannot be pointed out with a. Dolo causante - (consent is defective –voidable)
particularity. b. Dolo incidente (fraud in performance –
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Loss of the object without fault of the debtor – damages)
Obligation remain. Genus nunquam perit (Generic Period
never perishes) a. Future fraud – Responsibility arising from
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b. Personal obligation fraud is demandable in all obligation. Any
a. Positive personal obligation (to do) waiver of an action for future fraud is void.
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b. Negative personal obligation (not to do) (1171) same rule in case of negligence which
shows bad faith. (1173)
Duty of debtor to deliver specific thing b. Past fraud – can be waive
II. Negligence (culpa) – Omission of diligence required
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a. Law (ex: common carrier) obligation but such liability may be regulated by
b. Stipulation the courts according to the circumstances. (1172)
a. Culpa contractual – performance of the contract
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young and other products of animals. (No human c. Culpa aquiliana – No pre existing contract
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intervention)
➢ Industrial fruit - Produce by lands of any kind through Degree of Culpa under the Roman Law are as follows:
cultivation or labor. 1.) Culpa lata – grave negligence
➢ Civil fruit – Rents of building, price of lease of lands 2.) Culpa levis – ordinary negligence
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and other property and the amount of perpetual or life 3.) Culpa levissima – slight negligence
annuities or other similar income.
FRAUD DISTINGUISHED FROM NEGLIGENCE
Rule: The creditor has the right to the fruits of the thing
from the time the thing to deliver arises. FRAUD NEGLIGENCE
Exception: Obligation to deliver the fruits arises from: There is deliberate There is no deliberate intent to
a. Suspensive condition – fulfillment of the condition intent to cause cause damage.
b. Suspensive period – arrival of the period damage.
c. Arise from law, quasi contract, delict, quasi delict – Liability cannot be Liability may be mitigated.
provision of law mitigated.
3. Deliver of accessions and accessories (1166) Waiver for future Waiver for future negligence may
➢ Accessions - fruits of a thing/ addition/ improvement fraud is void. be allowed in certain cases:
upon a thing. (i.e. House/trees on a land) a) gross – can never be excused
➢ Accessories – thing joined with the principal for in advance; against public
embellishment, better use or completion (i.e. Key of policy
house, bracelet of a watch) b) simple – may be excused in
4. Deliver the thing itself certain cases
➢ Actual
➢ Constructive III. Delay (mora)
a. Traditio symbolica – delivery of key
a. Ordinary delay – Failure to pay on the period fixed Duty of debtor (Generic thing)
by the parties without demand judicial or 1. Deliver the thing based on quality intended by the
extrajudicial parties.
b. Legal delay – Failure to pay after demand by the 2. Damages in case of breach
creditor (judicial/extrajudicial)
1. Mora solvendi - Delay of debtor Duty of debtor to do (Positive personal obligation)
1.1 Mora solvendi ex re – Debtor delay/default in ➢ If a person obliged to do something fails to do it, the
real obligation same shall be executed at his cost.
1.2 Mora solvendi ex persona – Debtor This same rule shall be observed if he does it in
delay/default in personal obligation contravention of the tenor of the obligation.
2. Mora accipiendi – – default on part of creditor; Furthermore, it may be decreed that what has been
Creditor is guilty of default when he poorly done be undone. (1167)
unjustifiably refuses to accept payment or
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performance at the time payment/performance Duty of debtor not to do (Positive personal obligation)
can be done ➢ When the obligation consists in not doing, and the
3. Compensatio morae – both parties (debtor and obligor does what has been forbidden him, it shall also
creditor) are in default (in reciprocal be undone at his expense. (1168)
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obligations); the effect: is as if there is no
3 kinds of Performance:
Elements of legal delay: 1. SPECIFIC PERFORMANCE - performance of the
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(1) The obligation must be due, enforceable and already prestation itself
liquidated or determinate in amount 2. SUBSTITUTE PERFORMANCE - someone else performs
(2) There must be non-performance or something else is performed at the expense of debtor
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(3) There must be a demand, unless demand is not 3. EQUIVALENT PERFORMANCE - damages
required
Real Obligations to do
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Effects of legal delay: Remedies Obligation (Personal Obligation)
a. if determinate thing - debtor bears risk of loss (even Spe Gen To do Not to do
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already done
Rule: No demand (judicial or extrajudicial) no delay
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(1169) PERFORMANCE Y Y be Y
Exception: demanded
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1. Law if
2. Stipulation obligation
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obligation
already done
IV. Contravention of tenor of obligation
at debtor's
expense
Without the fault of the debtor
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interest is already paid e. quasi-contract
b. Receipt of a later installment of debt without 4. The diligence of a good father of a family as required of a
reservation as to prior installment – later installment person obliged to give simply means –
have been paid. a. inferior diligence;
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b. superior diligence;
REMEDIES OF CREDITOR AGAINST THE DEBTOR c. average diligence;
1. Exact performance - specific, substitute, equivalent d. None of the above
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2. Attach and execute debtor's property which is not 5. This is delay in doing –
exempt (art 2236) a. Mora solvendi ex re;
3. Accion subrogatoria - Exercise all rights and actions b. Mora solvendi ex persona;
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except those inherent in the person (parental authority, c. Mora accipiendi;
hold office, carry out agency d. compensatio morae
Requisites: 6. Statement 1: The law does not allow waiver of an action
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a. Creditor must have right of return against debtor for future fraud.
b. The debt is due and demandable Statement 2: Damages arising from fraud cannot be
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c. There is a failure of the debtor to collect his own reduced or mitigated by the courts unlike damages arising
debt from 3rd persons either through malice or from negligence especially if there is contributory
negligence negligence.
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4. Accion pauliana - (impugn or rescind acts or contracts c. Statement 1 is true, but statement 2 is false.
done by the debtor to defraud the creditors. d. Statement 1 is false, but statement 2 is true.
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c. to write a book
➢ All right by virtue of obligation are transmissible (1178) d. all of them
Exception: e. None of the above
1. Law 9. A wife is under obligation to support her husband and it
2. Stipulation arises from:
3. Strictly personal a. Law
b. quasi-delict
Multiple Choice - GENERAL PROVISIONS/ NATURE c. contract
AND EFFECT OF OBLIGATIONS d. quasi-contract
1. The father or in his absence the mother becomes liable for 10. Delay or default on the part of the creditor is known as –
the damage that a minor son may cause to others and the a. Mora solvendi ex re
liability arises from: b. Mora solvendi ex persona
a. Delict c. Mora accipiendi
b. Contracts d. Compensatio morae
c. Quasi-delict 11. Delay or default on the part of the obligor in giving is
d. Quasi-contracts known as –
2. D is driver of a passenger bus which is owned and a. Mora solvendi ex re
operated by O. While D is driving said bus, it met an b. Mora solvendi ex persona
accident through his negligence where P, a passenger, was c. Mora accipiendi
injured. D is liable to P for damages which arises from: d. Compensatio morae
a. law
12. This kind of damage is awarded for physical suffering, Conditional obligation
metal anguish, serious anxiety, wounded feeling, moral ➢ Future and uncertain event or past event unknown to
shock, social humiliation and the like – parties (1179)
a. Actual or compensatory damage ➢ Resolutory condition immediately demandable
b. Moral damage ➢ When the debtor binds himself to pay when his means
c. Nominal damage permit him to do so, the obligation shall be deemed to
d. temperate damage be one with a period. (1180)
13. This damage consists of a small amount but is awarded to ➢ Acquisition or extinguishment of obligation depend
vindicate a wrong or to redress a grievance. upon the happening of the condition (1181)
a. Actual or compensatory damage ➢ Positive condition + determinate time = extinguish as
b. Moral damage soon as the time expire or become indubitable that the
c. Nominal damage event will not take place (1184)
d. Temperate damage ➢ Negative condition + determinate time = Effective
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e. Exemplary damage form the time indicated elapsed or evident that event
14. Due diligence in the selection or supervision of employees cannot occur. (1185)
is defence available in – ➢ Constructive fulfillment - The condition shall be
a. Culpa contractual deemed fulfilled when the obligor voluntarily prevents
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b. Culpa aquiliana its fulfillment. (1186)
c. Both culpa contractual and culpa aquiliana ➢ Retroactivity of the conditional obligation. (1187)
d. neither culpa contractual nor culpa aquiliana a. Reciprocal – fruit and interest deemed mutually
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15. The following are the requisites for the filling of rescissory compensated
action except: b. Unilateral – Debtor appropriate the fruits an
a. The third person who received the property conveyed interest except Nature and circumstances of
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of, by onerous title, has been an accomplice in the obligation the intention of the person constituting
fraud. the same was different.
b. The right and actions are not purely personal or c. Obligation to do or not to do – court shall
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inherent in the person of the debtor. determine the retroactivity.
c. The act impugned is fraudulent ➢ Before condition is fulfilled (1188)
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d. The debtor has made a subsequent contract conveying c. Creditor bring action for the preservation of
a patrimonial benefit to a third person. his right
d. Debtor may recover payment by mistake.
➢ Loss, deterioration, improvement before condition is
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➢ Immediately demandable
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b. If cannot determined the first infractor – the period cannot change by them. (by the court not
Obligation extinguish and each shall bear own party)
damages.
General Rule:
Art. 1189. When the conditions have been imposed Whenever period is designated, it is presumed for the
with the intention of suspending the efficacy of an benefit of both creditor and debtor except when expressly
obligation to give, the following rules shall be provided otherwise. (1196)
observed in case of the improvement, loss or Hence, neither the creditor can demand performance nor
deterioration of the thing during the pendency of the the debtor pay before arrival of the period.
condition: Exception:
(1) If the thing is lost without the fault of the The debtor shall lose every right to make use of the period:
debtor, the obligation shall be extinguished; (1198) Hence, immediately demandable.
(2) If the thing is lost through the fault of the 1. When after the obligation has been contracted, he
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debtor, he shall be obliged to pay damages; it is becomes insolvent, unless he gives a guaranty or
understood that the thing is lost when it perishes, or security for the debt;
goes out of commerce, or disappears in such a way 2. When he does not furnish to the creditor the guaranties
that its existence is unknown or it cannot be recovered; or securities which he has promised;
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(3) When the thing deteriorates without the fault 3. When by his own acts, he has impaired said guaranties
of the debtor, the impairment is to be borne by the or securities after their establishment, and when
creditor; through a fortuitous event they disappear, unless he
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(4) If it deteriorates through the fault of the immediately gives new ones equally satisfactory;
debtor, the creditor may choose between the rescission 4. When the debtor violates any undertaking, in
of the obligation and its fulfillment, with indemnity for consideration of which the creditor agreed to the
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damages in either case; period;
(5) If the thing is improved by its nature, or by 5. When the debtor attempts to abscond.
time, the improvement shall inure to the benefit of the
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creditor; 4. Alternative obligation
(6) If it is improved at the expense of the debtor, a. Simple – only one prestation is due
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a.) Effect
1. Suspensive (Ex die) – arrival- give rise to substitute
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period – may recover with the fruits and Limitation on the right of choice:
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obligation. The obligation is immediately loss the right of choice and the alternative obligation is
demandable. converted into a simple obligation.
b.) Source
1. Legal – provided by law ➢ Choice produces no effect except from the time it has
2. Conventional/voluntary – by agreement been communicated. (1201)
3. Judicial – fixed by the court ➢ Communication of choice convert alternative
c.) Definiteness obligation to a simple obligation. (1205)
1. Definite – fixed or known when it will come ➢ Creditor fault, the debtor cannot make a choice =
2. Indefinite – not fixed or not known when it will rescind the contract + damages (1203)
come. ➢ All object loss – Debtor is liable for damages (last
object)
General Rule: The court is not authorized to fix a period:
(Reason: The court cannot make a contract for the parties) Right of choice: General rule: right of choice belongs to
Exception: Court authorizes to fix the period. (1197) debtor
a.) No period fixed but period was intended (nature and a. The choice is with debtor
circumstances) (1) If only 1 is left either because of fortuitous events
b.) Period depend upon the sole will of the debtor. or due to debtor's acts, perform what is left. The
effect is that the debtor loses the right of choice
➢ Court shall determine such period as probably (2) if the choice is limited because of the creditor's
contemplated by the parties. Once fixed by the courts, acts, the debtor has the right of resolution and
damages
(3) if all are lost due to debtor, the creditor is entitled DISTINCTIONS BETWEEN ALTERNATIVE AND
to damages FACULTATIVE OBLIGATIONS
(4) if some are lost, the debtor can choose from the ALTERNATIVE FACULTATIVE
remaining a) Various things are due a) Only one thing is due but
but the giving a substitute may be given to
b. The choice is with creditor principally of one is render payment/fulfillment
(1) if one or some are lost due to fortuitous event, the sufficient easy
creditor chooses the remainder b) If one of prestations is b) If principal obligations is
(2) if one or some is lost because of the fault of illegal, others may be void and there is no
debtor, the creditor may choose either the valid but obligation necessity of giving the
remainder or the value of any which disappeared, remains substitute; nullity of P
and damages in either case carries with it nullity of S
(3) if all is lost due to the debtor's fault, the creditor c) If it is impossible to give c) If it is impossible to give
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may choose the value of any if some is lost due to all except one, the last one the principal, the
debtor's fault, the creditor chooses the remainder must still be given substitute does not have
(4) if all is lost due to fortuitous event, obligation is to be given; if it is
extinguished impossible to give the
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(5) if all is lost due to creditor's fault, the obligation is substitute, the principal
extinguished must still be given
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d) Right to choose may be d) The right of choice is
Summary: Rule on loss given either to debtor or given only to the debtor
1. Debtor choice – Last item lost creditor
2. Creditor’s choice - Any item lost through the fault of the
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debtor 6. Joint /Solidary
a.) Individual – one debtor and one creditor
Art. 1205. When the choice has been expressly given to the b.) Collective – Two or more debtor and two or more
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creditor, the obligation shall cease to be alternative from the creditors
day when the selection has been communicated to the debtor. 1. Joint – 2or more debt/credit as there are
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Until then the responsibility of the debtor shall be governed by debtor/creditor (mancomunada,
the following rules: mancomunadamente, pro rata, proportionately, We
(1) If one of the things is lost through a fortuitous event, he promise to pay signed by 2 or more person)
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shall perform the obligation by delivering that which the 2. Solidary - Each debtor/creditor is bound to
creditor should choose from among the remainder, or pay/right to demand payment the entire
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that which remains if only one subsists; compliance of the obligation (Joint and/or
(2) If the loss of one of the things occurs through the fault of severally, solidaria, in solidum, juntos o
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the debtor, the creditor may claim any of those separademente, Individually and/or collectively, I
subsisting, or the price of that which, through the fault of promise to pay signed by 2 or more persons, each
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the former, has disappeared, with a right to damages; will pay the whole value)
(3) If all the things are lost through the fault of the debtor,
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the choice by the creditor shall fall upon the price of any Gen Rule: Joint obligation
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5. Facultative - When only one prestation has been agreed Solidarity imposed by law (under the New Civil Code)
upon, but the obligor may render another in substitution 1. 2 or more heirs take possession of the estate - loss or
(1206) destruction of a thing devised or bequeathed, even though
Before substitution only one of them should have been negligent. (Art. 927)
➢ Loss of the object without fault – not liable 2. Death or injury is due to the negligence of a fellow worker,
➢ Loss of the object with fault of the debtor - Liable the latter and the employer shall be solidarily liable for
compensation. (Art. 1712)
➢ Loss/deterioration of the substitute with or without 3. The collapse of building or structure within fifteen years
fault of the debtor – Not liable (15) from completion of the structure, the engineer or
architect who supervises the construction shall be
After substitution solidarily liable with the contractor. (Art 1723)
➢ Loss of the object with or without fault – not liable 4. Any wrongful act or omission of any partner acting in the
➢ Loss of the substitute with fault – liable ordinary course of the business of the partnership or with
➢ Loss of the substitute without fault – not liable the authority of co-partners, loss or injury is caused to any
person. (Art. 1822 and 1824
Rule: 5. Partner received money or property from 3rd person and
➢ Right of choice always to debtor misapplies it or Partnership receives money or property of
➢ Only one prestation is due but the debtor may a 3rd person and such property was misapplied by any
substitute partner while in partnership custody. (Art 1823 and 1824)
6. Even when the agent has exceeded his authority, the ➢ Novation, compensation, confusion or remission by
principal is solidarily liable with the agent if the former solidary creditor extinguish the obligation but liable to
allowed the latter to act as though he had full powers. (Art. the other solidary creditor
1911) ➢ Debtor may pay any one of the solidary creditor.
7. Two or more persons have appointed an agent for a Except when one of the solidary creditor demand
common transaction or undertaking. - Liable to the agent judicial or extrajudicial payment must be made to him.
for all the consequences of the agency. (Art. 1915)
8. Two or more bailees (Commodatum) to whom a thing is Solidary debtor
loaned in the same contract (1945) ➢ Creditor can proceed to any solidary debtor as long as
9. The responsibility of two or more officious managers the debt has not been fully collected
(negotiorum gestio) shall be solidary, unless the ➢ Payment by one of solidary debtor extinguishes the
management was assumed to save the thing or business obligation. If 2 or more debtors offers, the creditor
from imminent danger. (Art. 2146) may choose which offer to accept.
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10. The owner and his driver in a motor vehicle mishaps, if the ➢ Solidary debtor who pay, may claim from his co-
former, who was in the vehicle, could have, by the use of debtor + interest from the date of payment (except
the due diligence, prevented the misfortune. (Art. 2184) when not yet due, no interest for intervening period)
11. The responsibility of two or more persons who are liable ➢ Insolvency of one of solidary debtor – to be borne by
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for quasi-delict. (Art. 2194) all his co-debtor in proportion to the debt of each.
Payment by solidary debtor after the obligation has
Solidarity under special Law (related law only) prescribed or become illegal – Not entitled to
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1. Liability of directors for watered stocks. (Sec. 65, BP 68) reimbursement.
2. When the director or trustee who willfully and knowingly ➢ Remission made by the creditor of the share of one of
vote for or assent to patently unlawful acts of the the solidary debtor – Does not release such solidary
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corporation or who are guilty of gross negligence or bad debtor toward other co-debtor when the debt was
faith in directing the affairs of the corporation or acquire totally paid before remission.
any personal or pecuniary interest in conflict with their ➢ Remission of whole obligation obtained by one of the
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duty (Sec 31 BP 68) solidary debtors – not entitled for reimbursement
3. Workmen compensation act ➢ Loss without fault of any debtor– obligation
C - O SO
20 N NG
➢ Object the execution of a certain number of days of 2. D, on June 19, 2019 obligated himself to C to sell to the
work – Divisible latter his house and lot for the very cheap price of
➢ Accomplishment of work by metrical units or P5,000,000 on condition that C passes the CPA board
analogous things examinations to be given in October 2019. In the
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➢ Nature are susceptible of partial performance – meantime, not believing that C will pass the board exams,
Divisible D sold the house to T sometime in August 2019, In
➢ Obligation not to do – Determined by the character of November 2019, C passed the exams unexpectedly. Who
R A .H.
the prestation in each particular case. has a better right to the house and lot? Assume that C and
T did not record their transaction with the Registration of
9. Obligation with a penal clause – Penalty shall substitute Deeds and neither did they take possession.
BE LIG A
the indemnity for damages and the payment of interests in a. C has a better right to the house and lot because said
case of non-compliance (absence of agreement). right goes back to the time when the obligation was
a. Principal contracted on June 19, 2019 although the condition
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b. Accessory was complied with only in November 2019.
b. T has a better right since it was sold to him in August,
C - O SO
demandable:
breach a. If X passes the CPA examination
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2.) Joint or cumulative – both principal and penal clause 4. D borrowed from C P5,000,000 promising to pay upon the
can be enforced sale of his house and lot at 123 Rizal Avenue, Manila. The
obligation of D to C is:
➢ The penal clause shall substitute the indemnity for a. an obligation with a period
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damages and the payment of interest in case of non- b. an obligation with a potestative condition the
compliance. (1226) However, Penalty may be fulfillment of which solely depends on the will of the
enforced only when it is demandable. debtor and therefore void
➢ Proof of actual damages suffered by the creditor not c. C can collect only when D is able to sell the house and
necessary to enforce the penalty. (1228) lot
However, damages shall be paid d. only the condition is nullified, but not the obligation in
a. There is stipulation which case C can collect even if the house and lot is
b. Obligor refuses to pay the penalty not sold.
c. Guilty of fraud in the fulfillment of the obligation. 5. D binds himself to pay C P30,000 as soon as the PNB
➢ Debtor cannot exempt himself from performance and approves his application for a loan. Said obligation is –
to pay only the penalty (except when expressly granted a. A condition obligation
to him). Neither can the creditor demand the b. An obligation with a period
fulfillment of the obligation and the satisfaction of the c. A pure obligation
penalty at the same time, unless this right has been d. A joint obligation
clearly granted him. (1227) However, if creditor 6. D is under obligation to pay C P500,000 on December 15,
choose performance but become impossible without 2020. Before due date, D wants to pay C P500,000 but the
his fault, the penalty may be imposed. latter refuses to accept because the obligation is not yet
due. Decide,
Causes for reduction of penalty: a. D can compel C to accept payment because when an
a. Principal obligation has been partly or irregularly obligation is with a period, said period is for the
complied with; benefit of the debtor only.
b. C can refuse to accept payment because when an 14. D is under obligation to deliver to C either a cow or a
obligation is with a period, the benefit is only for the carabao or a horse. Due to the fault of D the cow, the
creditor. carabao and the horse are lost in that order. The obligation
c. C can refuse to accept because when an obligation is of D is to pay damages to C:
with a period, said period is presumed to be for the a. On the basis of the value of the cow.
benefit of both debtor and creditor. b. On the basis of the value of the carabao.
d. Correct answer not indicated. c. On the basis of the value of the horse or the last thing
7. In the following cases, the debtor loses the right to use the that was through his fault.
period in which case the obligation becomes immediately d. On the basis of the value of any of the animals due at
demandable. Choose the exception: the choice of D.
a. When after the obligation is contracted, the debtor 15. D is under obligation to deliver to C either a cow or a
becomes insolvent but he gives a collateral security or carabao or a horse. Due to the fault of D the cow, the
guaranty. carabao and the horse are lost in that order. If the right of
20 N NG
b. When he fails to furnish the collateral security that he choice belongs to C, then D now becomes liable for
has promised. damages to C:
c. When the collateral is impaired whether through his a. On the basis of the value of the cow.
fault or by fortuitous event. b. On the basis of the value of the carabao.
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d. When the debtor attempts to abscond. c. On the basis of the value of the horse.
8. D obligates himself to pay C P100,000 on August 19, d. On the basis of the value of the cow or the carabao or
2019. The benefit of the period belongs to – the horse at the choice of C.
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a. D only; 16. In a facultative obligation, which of these is not a correct
b. Both C and D; statement?
c. C only; a. If the principal is lost without the fault on the part of
BE LIG A
d. Neither c nor D. the debtor and before he incurs in delay, the obligation
9. D obligates himself to pay C P100,000 on or before is extinguished.
August 19, 2020. The benefit of the period belongs to – b. If the principal is lost through the fault of the debtor,
N
a. D only; he becomes liable for damages.
b. C only c. That the debtor can avoid having to pay damages to
C - O SO
latter his house and lot. Said obligation is due December 17. D bound himself to deliver to C jeep and a car. The
15, 2020. On July 20, 2019 the house was hit by a lighting obligation is:
TO B
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2019 because the latter losses the right to make use of c. facultative
the period upon the impairment of the collateral. d. complex
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become demandable upon the arrival of the period. car. This is:
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the loss of the collateral through a fortuitous event. 19. A, B, and C jointly and severally borrowed from X
11. D binds himself to pay C P30,000 when his means permit P90,000. The obligation is classified as:
him to do so. Said obligation is: a. Joint
a. a conditional obligation b. Passive solidarity
b. an obligation with a period c. Active solidarity
c. a pure obligation d. Mixed Solidarity
d. none of the above 20. A, B and C borrowed from T, W, X, Y and Z P90,000.
12. D will support C until end of this year is an obligation come maturity date, T can collect from A:
with: a. P90,000
a. a suspensive condition b. P6,000
b. a resolutory condition c. P30,000
c. an EX DIE period d. P10,000
d. an IN DIEM period 21. A, B and C borrowed P90,000 from X, Y and Z. X can
13. An obligation with a period: hold liable B for:
a. D will pay C P1,000.00 X dies. a. P90,000
b. D will pay C P1,000.00 when X dies of TB. b. P20,000
c. D will pay C P1,000.00 when he finishes his course in c. P30,000
Business Administration. d. P10,000
d. None of the above 22. A, B and C, joint debtors in the amount of P90,000 in
favor of X and Y, solidary creditors. When the obligation
matures, how much can X collect from A?
20 N NG
a. Joint d. All of the above.
b. mixed solidarity 30. D borrowed from C P100,000 with an agreement that upon
c. passive solidarity failure to pay on due date, a penalty of 20% shall be
d. active solidarity imposed. On due date, the P100,000 was not paid. C can
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25. A, B and C borrowed jointly and severally from X, Y and collect from D:
Z P90,000 payable on December 15, 2020. At the time of a. P100,000 only
the transaction A was only 16 years old, while on August b. P100,000 plus penalty
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19, 2019 X gave an extension of time for C to pay on July c. P100,000 plus penalty plus interest at 12%
20,2022. On December 15, 2020, how much can X collect d. P100,000 plus penalty plus interest plus damages
from B? 31. In the following cases, interest or damages can be
BE LIG A
a. P90,000 because the obligation is solidary. collected by the creditor from the debtor in addition to the
b. P60,000 because B can present as against X the penalty agreed upon.
defense of minority on the part of A, but only for a. If there is a stipulation to that effect.
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P30,000. b. If the debtor defaults in the payment of the penalty.
c. P30,000 because B can present as against X the c. Where the debtor commits fraud in the fulfillment of
C - O SO
to X due to the fault of A causing a P9,000 damage to the (1) By payment or performance:
former. In this case: (2) By the loss of the thing due:
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a. X can compel any of A, B and C to pay P309,000. (3) By the condonation or remission of the debt;
b. The obligation of A, B and C is presumed to be joint (4) By the confusion or merger of the rights of creditor and
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X can collect from A P109,000 and from B and C c. Fulfillment of a resolutory condition
P100,000 each. d. Prescription
27. A, B and C jointly and severally obligated themselves to e. Arrival of resolutory period
deliver to X a determinate car worth P600,000. On due f. Death of the party
date, because of B's fault, said car was not delivered g. Mutual desistance/withdrawal
causing a P9,000 damage to X. B is insolvent. h. Compromise
a. X can collect from A, B and C P203,000 each. i. Impossibility of performance
b. X can collect from A the sum of P600,000 only j. Happening of a fortuitous event
because he is not the party at fault but can recover
reimbursement from C in the amount of P309,000. 1. Payment or performance – not only delivery of money but
c. X can collect from C the whole of P609,000 and also the performance in any other manner of an obligation.
collect reimbursement from A P200,000 only. (1232)
d. X can collect from C the whole amount of P609,000 Gen rule: There must be total performance. Partial or
and collect reimbursement from A in the amount of irregular performance does not extinguish obligation.
P304,500. (1233)
28. In which of these cases is the solidary debtor who paid not Exception:
entitled to recover reimbursement from his co-debtor? a. Substantial performance in good faith. (1234)
a. If when the debtor paid, the debt has already Requisites of Substantial Performance
prescribed; 1. Attempt in Good Faith to perform without willful
b. If when the debtor paid, the debt has already become or intentional departure
illegal; 2. Deviation is slight
20 N NG
1. Payment by 3rd person
2. Partial performance
3. When the debtor has no capacity to alienate or free
disposal of the thing
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➢ General rule: Creditor not bound to accept
performance by 3rd person. (1236) The creditor is
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bound to accept payment only by:
1. Debtor
2. Has interest in the performance of obligation
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(guarantor, surety)
3. 3rd person if there is stipulation.
But the payment in any case valid if the creditor accepts.
N
The option to accept is granted to the creditor.
C - O SO
➢ Payment by 3rd person to creditor may recover to the ➢ Payment made in good faith to any person in
debtor possession of the credit shall release the debtor. (1242)
a.) With knowledge of the debtor – right of Requisites:
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reimbursement (amount paid, not amount of debt) 1. Payment by debtor must be made in good faith
+ subrogation (acquire all the right of the creditor) 2. Creditor must be in possession of the credit & not
TO B
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only benefit to the debtor. 3rd person cannot latter has been judicially ordered to retain the debt
compel the creditor to subrogate in his rights such shall not be valid. (1243)
➢ Debtor cannot compel the creditor to receive a
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c.) No recovery - Payment by 3rd person who does not valuable than that which is due. (1244)
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intend to be reimburse is deemed donation which ➢ Obligation to do or not to do, an act or forbearance
requires debtor’s consent. cannot be substituted by another act or forbearance
against the obligee’s will. (1242 par 2)
➢ Payment by one who does not have free disposal of the ➢ Obligation to deliver an indeterminate or generic
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thing due and capacity to alienate – Not valid without thing whose quality and circumstances have not been
prejudice to natural obligation. (1239) stated. (1246)
➢ Payment must be to the person in whose favor the a. Creditor cannot demand a thing of superior
obligation has been constituted. (creditor, creditor quality.
successor in interest, any person authorized to receive b. Debtor cannot deliver a thing of inferior quality.
payment) (1240) ➢ Extrajudicial expense – account of the debtor
a. Payment to a person who is incapacitated to ➢ Judicial expense – The Rules of court apply. Judicial
administer his property shall be valid if he has expense is shouldered by the losing party.
kept the thing delivered or insofar as the payment
has been beneficial to him. Place of payment (1251)
b. Payment to 3rd person shall also be valid insofar as 1. Place designated in the obligation
it has redounded to the benefit of the creditor. 2. No express stipulation
(1241) a. Determinate thing – Place where the thing was, at
the perfection of the contract
Payment to 3rd person: Presumed that it redounded to the b. Generic thing – domicile of the debtor.
benefit of the creditor:
a. 3rd person acquires the creditor’s right (subrogation) General Rule:
b. Creditor ratifies the payment to the 3rd person (ratification) The creditor cannot be compelled to receive partial
c. Creditors’ led to believe that the 3rd person had authority to performance. Neither may the debtor be required to make
receive the payment (Estoppels) partial payment. (1248)
Exception:
1. Express stipulation
2. Debt is part liquidated and in part unliquidated. c. Payment by cession
3. Different prestation are subject to different terms or 1. Two or more creditors
conditions which affect some of them. 2. Debtor must be partially insolvent
3. Assignment/cession must be accepted by the
➢ The payment of debts in money shall be made in the creditors.
currency stipulated, and if it is not possible to deliver
such currency, then in the currency which is legal d. Tender of payment (extrajudicial) and consignation
tender in the Philippines. (1249) (judicial) – Creditor refuse to accept payment without
➢ The delivery of promissory notes payable to order, or just cause
bills of exchange or other mercantile documents shall ➢ Must comply with the rules on payment (must be
produce the effect of payment only when they have total)
been cashed, or when through the fault of the creditor ➢ Unconditional and total
20 N NG
they have been impaired. ➢ Actual. Manifestation of a desire or intention to
In the meantime, the action derived from the original pay is enough.
obligation shall be held in the abeyance. ➢ The debtor must show possession of the thing at
➢ In case an extraordinary inflation or deflation of the the time of the offer (tender).
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currency stipulated should supervene, the value of the ➢ Before creditor accepts the consignation or before
currency at the time of the establishment of the judicial declaration, the debtor may withdraw the
obligation shall be the basis of payment, unless there thing deposited.
R A .H.
is an agreement to the contrary (1250) ➢ Should the creditor authorize to withdraw the
thing consigned – He lose every preference over
Nota Bene: the thing (co-debtor, guarantors and sureties are
BE LIG A
Section 52. Legal Tender Power. - All notes and coins issued released)
by the Bangko Sentral shall be fully guaranteed by the Tender of payment alone cannot extinguish valid debt.
Government of the Republic of the Philippines and shall be However, consignation alone when allowed
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legal tender in the Philippines for all debts, both public and extinguished obligation.
private: Provided, however, That, unless otherwise fixed by
C - O SO
exceeding Twenty pesos (P20.00) for denominations of Ten 2. Tender of payment by the debtor
centavos or less. (R.A. 7653) 3. Refusal without justifiable reason by the creditor
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to accept it.
Hence, Philippine currency notes have no limit to their legal 4. Previous notice of consignation to persons
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tender power. However, pursuant to BSP Circular No. 537, interested in the fulfillment of the obligation.
Series 2006 (Dated: July 18, 2006), coins in denomination of (guarantor, mortgagee, solidary debtors, solidary
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10- and 25 sentimo shall be legal tender in amounts not 6. Subsequent notice of consignation to in interested
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c. Civil loss – thing disappears in a such way that its 1. Complete – cover the entire obligation
existence is unknown. 2. Partial – Not cover the entire obligation
b. Form
Loss of a thing due 1. Express – verbal or in writing
1. Obligation to give specific thing 2. Implied – Inferred from conduct
a. Total loss Voluntary delivery of private document
2. Loss with the fault of the debtor – (Liable) evidencing the credit by the creditor to the debtor
3. Loss without the fault of the debtor - (Art 1271)
Fortuitous event (not liable) c. Date of effectivity
Exception: 1. Inter vivos – take effect during lifetime of the
ii. Law donor
a. Delay 2. Mortis cause – effective upon death of the donor
b. Promised to deliver the same thing to
20 N NG
2 or more persons who do not have ➢ The delivery of a private document evidencing a
the same interest credit, made voluntarily by the creditor to the debtor,
c. Lost of generic thing implies the renunciation of the action which the former
d. Obligation to deliver a specific thing had against the latter.
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arises from crime. (1268) If in order to nullify this waiver it should be claimed to
iii. Stipulation be inofficious, the debtor and his heirs may uphold it
iv. Assumption of risk by proving that the delivery of the document was made
R A .H.
b. Partial loss – Court shall determine under the in virtue of payment of the debt. (1271)
circumstances (importance of the partial loss of ➢ Whenever the private document in which the debt
the object) whether partial loss is as to be appears is found in the possession of the debtor, it
BE LIG A
equivalent to a complete or total loss. (i.e. Broken shall be presumed that the creditor delivered it
leg - horse for race or horse to be slaughtered) voluntarily, unless the contrary is proved. (1272)
2. Obligation to do ➢ The renunciation of the principal debt shall extinguish
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➢ The debtor in obligations to do shall also be the accessory obligations; but the waiver of the latter
released when the prestation becomes legally or shall leave the former in force. (1273) (accessory
C - O SO
b. Impossibility after the constitution of the delivery to the creditor, is found in the possession of
obligation the debtor, or of a third person who owns the thing.
TO B
(1274)
manifestly beyond the contemplation of the
4. Merger/confusion – The character of creditor and debtor
FB O
➢ Legal impossibility – Ordinance declaring an area obligation) Confusion which takes place in the person
residential zone (i.e. obligation to construct of any of the latter does not extinguish the obligation.
commercial building; Lawyer appointed as judge) (Only accessory obligation is extinguished) (1276)
General rule: When a thing is loss in possession of the debtor ➢ Confusion does not extinguish a joint obligation
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it is presumed that it was loss due to his fault. (1265) except as regards the share corresponding to the
Exception: creditor or debtor in whom the two characters concur.
1. Earthquake (1277)
2. Flood
3. Storm 5. Compensation - When two persons, in their own right, are
4. Other natural calamity creditors and debtors of each other, (1278)
Confusion vs. Compensation
• The obligation having been extinguished by the loss of 1. Only one person who is a debtor and creditor of
the thing, the creditor shall have all the rights of action himself vs. two persons involved, each of whom is a
which the debtor may have against third persons by debtor and a creditor of the other
reason of the loss. (1269) 2. Only one obligation vs. 2 obligation
3. Impossiblity of payment vs. indirect payment
3. Condonation/remission of debt - Condonation or remission
is essentially gratuitous, and requires the acceptance by Kinds of compensation
the obligor. It may be made expressly or impliedly. One 1. Effect or extent
and the other kind shall be subject to the rules which a. Total – Both obligations are of the same amount
govern inofficious donations. Express condonation shall, b. Partial – Two obligation are of different amount
furthermore, comply with the forms of donation (1270) 2. Cause or origin
a. Legal – Takes place by operation of law
Kinds of remission b. Voluntary – by agreement
a. Extent
20 N NG
4.) That they be liquidated and demandable; a. Real or objective – Object or principal condition are
5.) That over neither of them there be any retention or changed
controversy, commenced by third persons and b. Personal or subjective – person of the debtor is
communicated in due time to the debtor. substituted/ or when a third person is subrogated in the
20 TIO O
right of the creditor.
➢ The parties may agree upon the compensation of debts 1. Substitution – Person of the debtor is substituted
which are not yet due. (1282) 1.1. Expromision – 3rd person on his own initiative
R A .H.
➢ If one of the parties to a suit over an obligation has a claim and without the knowledge or against the will
for damages against the other, the former may set it off by of the original debtor assumes the latter’s
proving his right to said damages and the amount thereof. obligation with the consent of the creditor.
BE LIG A
(1283) (Only the consent of the creditor and 3 rd
➢ When one or both debts are rescissible or voidable, they person is made)
may be compensated against each other before they are 1.2. Delegacion – Creditor accepts a third person
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judicially rescinded or avoided. (1284) to take the place of the debtor at the instance
➢ The debtor who has consented to the assignment of rights of the latter. It requires that the old debtor be
C - O SO
made by a creditor in favor of a third person, cannot set up release from the old obligation. (all parties,
against the assignee the compensation which would pertain old debtor, new debtor and the creditor must
to him against the assignor, unless the assignor was agree)
2. Subrogation – Third person is subrogated in the
N
➢ If the creditor communicated the cession to him but the c. Mixed – Combination of real and personal novation.
H
debtor did not consent thereto, the latter may set up the
➢ Novation is never presumed.
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to the same and also later ones until he had knowledge of ➢ Conventional subrogation be clearly established
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the assignment. (1198a) (1300) and it requires the consent of the original
➢ Compensation takes place by operation of law, even parties and of the third person. (1301)
though the debts may be payable at different places, but ➢ Legal subrogation is not presumed except in cases
there shall be an indemnity for expenses of exchange or provided for by law. (1300)
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transportation to the place of payment. (1286) ➢ When the principal obligation is extinguished in
➢ If a person should have against him several debts which consequence of a novation, accessory obligations may
are susceptible of compensation, the rules on the subsist only insofar as they may benefit third persons
application of payments shall apply to the order of the who did not give their consent. (1296)
compensation. (1289) ➢ If the new obligation is void, the original one shall
subsist, unless the parties intended that the former
Art. 1287. Compensation shall not be proper when one of the relation should be extinguished in any event. (1297)
debts arises from a depositum or from the obligations of a ➢ The novation is void if the original obligation was
depositary or of a bailee in commodatum. void, except when annulment may be claimed only by
Neither can compensation be set up against a creditor who has the debtor or when ratification validates acts which are
a claim for support due by gratuitous title, without prejudice to voidable. (1298)
the provisions of paragraph 2 of article 301. (1200a) ➢ If the original obligation was subject to a suspensive or
Art. 1288. Neither shall there be compensation if one of the resolutory condition, the new obligation shall be under
debts consists in civil liability arising from a penal offense. (n) the same condition, unless it is otherwise stipulated.
(1299)
6. Novation – Obligations may be modified by: (1) Changing ➢ Subrogation transfers to the persons subrogated the
their object or principal conditions; (2) Substituting the credit with all the rights thereto appertaining, either
person of the debtor; (3) Subrogating a third person in the against the debtor or against third person, be they
rights of the creditor. (1291) guarantors or possessors of mortgages, subject to
stipulation in a conventional subrogation. (1303)
Kinds of novation ➢ A creditor, to whom partial payment has been made,
may exercise his right for the remainder, and he shall b. By T's payment to C, he became subrogated into all
be preferred to the person who has been subrogated in the rights of C as against D and therefore, if D cannot
his place in virtue of the partial payment of the same pay T, T can foreclose on the mortgage of the house
credit. (1304) and lot.
c. T can foreclose on the mortgage but can recover only
P1,500,000 from the proceeds.
d. T cannot foreclose on the mortgage but can recover
only P1,500,000 as reimbursement from D up to the
extent that D was benefited by T's payment to C.
3. D is indebted to C in the amount of P500,000. By dacion
en pago D conveyed to C the ownership of a car with an
agreed appraised value of P700,000.
a. The obligation of D to C is automatically extinguished.
20 N NG
b. The obligation of D to C is not extinguished because
they agreed to sell the car from which the payment of
P500,000 is to be derived.
c. The obligation of D to C is automatically extinguished
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and on top of that C has to pay D P200,000.
d. Correct answer not indicated.
4. D owes C P1,000.00 C tells D that he is willing to forego
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collection if the latter will just give him his tape recorder.
D consents and gives C the tape recorded. D's obligation is
extinguished by:
BE LIG A
a. Payment
b. Confusion
c. Condonation
N
d. Compensation
5. D is indebted to C in the amount of P500,000. By dacion
C - O SO
favor of C.
c. C can return to D the car and compel him to pay
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P500,000.
Art. 1302. It is presumed that there is legal subrogation: d. Dacion en pago does not apply because the subject
T
(1) When a creditor pays another creditor who is matter is a car and not an immovable property.
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preferred, even without the debtor's knowledge; 6. Strictly speaking, the following are special modes of
(2) When a third person, not interested in the obligation, payment, except:
pays with the express or tacit approval of the debtor; a. dacion en pago
(3) When, even without the knowledge of the debtor, a b. application of payment
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9. D is indebted to C for the amount of P100,000 which is 17. The delivery of a private document evidencing a credit,
guaranteed by G. D made to C a partial payment of made voluntarily by the creditor to the debtor even before
P30,000. T, without the consent of D, paid C P100,000 the debt is paid, extinguishes the obligation by:
where the prevailing rate of interest is 12%. T can recover a. Express remission
from D: b. Compensation
a. P100,000 without interest c. Implied remission
b. P100,000 with interest d. Novation
c. P70,000 with interest 18. In payment by cession, which of these statements is not
d. P70,000 without interest correct?
10. Strictly speaking, this is not a mode of special payment: a. There is one debtor and several creditors.
a. Dacion en pago b. It is more advantageous to the debtor than insolvency.
b. Payment by cession c. The debtor is in a state of insolvency, more or less.
c. Tender of payment and consignation d. The obligations of the debtor are not automatically
20 N NG
d. Application of payment extinguished upon the cession of the assets and
11. D is under obligation to deliver to C a champion calibre properties.
racehorse by the name of WINDBLOWN on May 15, 19. This is exception to legal compensation –
2020. While D was on his way to deliver WINDBLOWN a. Where one of the debts arises from commodatum;
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on June 13, 2020, the racehorse died. Choose the b. Where one of the debts arises from depositum;
conclusion with the correct reasoning – c. Where one of the debts arises support by gratuitous
a. D is liable for damages because the object title;
R A .H.
WINDBLOWN is generic; d. Where one of the debts arises from a civil liability on
b. D is liable because at the time of the loss of crime;
WINDBLOWN, he was already in delay; e. All of the above
BE LIG A
c. D is not liable because all of the factors affecting loss 20. This kind of compensation takes place by operation of law
of the thing due are present in the case; or automatically even without the knowledge or consent of
d. D is liable for damages because WINDBLOWN died the parties –
N
while in his possession and there is no indication in the a. Voluntary compensation;
problem that it was on the occasion of a storm, flood, b. Judicial compensation or set-off;
C - O SO
12. D is under obligation to deliver to C a Toyota Altis with became indebted to D also for the payment of 5,000 sacks
engine no. 1234567. When D was on the way to deliver of rice. Both items are due and demandable, except that T
TO B
H
the car, it was destroyed at a time when D was not yet in claims that the rice loaned by D to C was stolen from his
delay. The law presumes that the loss is due to – bodega and such claim has been transmitted to D and C.
FB O
a. the defective nature of the car a. There is compensation that both debts consists in
b. A fortuitous event. consumables of the same kind which are both due and
.J
c. default on the pat of D D and C are bound to each other in a principal manner.
d. the fault or negligence of the debtor or D b. There is no legal compensation here because there is a
T
13. This mode of extinguishment occurs when a person controversy or right of retention by a third person and
TY
a. Substitution of debtor
b. Subrogation of a third person in the place of the
creditor
c. Both of (a) and (b)
d. None of the above
25. In one of these cases there is no novation. Which is it?
a. Where D is indebted to C in a promissory note for
P200,000 and another one is executed extending the
time of payment;
b. Where D is indebted to C in a promissory note for
P200,000 and another one is executed shortening the
time of payment;
c. Where D is indebted to C and they agreed that T will
20 N NG
substitute D in the payment of the debt;
d. Where D is indebted to C and C and T, a person,
agreed that the former shall substitute D in the
payment of the debt.
20 TIO O
26. When a third person of his own accord and even without
the knowledge of the original debtor assumes the
obligation with the consent of the creditor:
R A .H.
a. Expromission
b. Subrogation
c. Delegacion
BE LIG A
d. Real novation
27. D owes C. Later, the parties agreed that instead of D
paying C, he will just pay X. This is an instance of:
N
a. Expromission
b. Convertional subrogation
C - O SO
c. Delegacion
d. Legal subrogation
28. When a creditor pays another creditor who is preferred,
N