Chapter 1: General Provision Study Guide
I. Definitions
1. Obligation – is a tie or bond recognized by law where one
person is bound in favor of another to give something, do a certain or act, or not do a certain act. 2. Quasi-contract – is a juridical relation caused by lawful,
voluntary and unilateral acts because of which, the parties become bound to each other so that no one will be unjustly enriched or benefited at the expense of the other. The law considers the parties to have entered a contract, even if they haven’t really and regardless of their intention, to prevent injustice.
3. Compliance in good faith – means conformity to the conditions or terms of the contract or agreement. 4. Wrong- an act or omission of one party which violates the
legal right(s) of another.
5. “Solution indebiti”- is a juridical relation created when something is received without a right to demand it and it was unduly delivered through mistake.
II. Discussions
1. What are the essential requisites of an obligation? Give an example to illustrate.
The 4 essential requisites of an obligation are a passive subject, an active subject, an object or prestation, and a juridical or legal tie. The passive subject is the debtor or the one who has a duty, the active subject is the creditor or the one who is demanding, the object is the condition for the fulfillment of the obligation and the legal tie binds the parties to the obligation. For example, if John and Michael signed a contract stating that John would pay Michael 5000 pesos for the repair of his car, Michael is the passive subject, John is the active subject, repairing John’s car is the object, and their written contract is the legal tie.
2. Why are obligations under the Civil Code a juridical necessity? Explain.
Obligations under the Civil Code are a juridical necessity because they are based on positive laws. This means that noncompliance of the obligation entitles the creditor to call upon the courts of justice to enforce the fulfillment of the debtor’s obligations. The debtor can also be held liable for damages to compensate for the harm caused by his noncompliance.
3. What are the elements or requisites in order that a person may acquire a right of action in court against another to enforce the performance of the latter’s obligation?
Right is the power a person has under the law to demand from another any prestation. A person may acquire a right of action in court to enforce the performance of another’s obligation if the obligation is a civil obligation, that is, it is based on positive law.
4. May a person incur obligations even without entering into any contract or voluntary agreement? Explain.
Yes because obligations do not only arise from contracts. They can be imposed by law, arise from quasi-contracts, from crimes or acts or omissions punished by law and from quasi-delicts or torts. You can have an obligation so that no one will be unjustly benefited or enriched at the expense of someone else, or if you commit a crime, or if you cause damage due to fault or negligence.
III. Problems
1. Is X entitled to be reimbursed by Y for the amount of P150?
Yes, because on the principle of quasi-contract, Y is liable to X even if she did not give her consent. X fed Y’s child and incurred expenses and this should be reimbursed by X to prevent anyone being unjustly enriched or benefited at the other’s expense.
2. Under the circumstances, does it follow that Y is liable to X for the damage?
Yes because even if there is no pre-existing contractual relation between them, X’s car was damaged due to the negligence of Y. If Y did not bump X’s car, X’s car would not have been damaged. Thus, Y is liable to X for the damages
3. Has X the right to ask indemnity from R, employer of X, on the ground that the accident occurred when X was on his way to transact business with a client of R?
X doesn’t have a right to ask for indemnity from R because there is no law that requires this. 4. Is D legally justified to refuse to pay C?
No, because when D loaned from C, he entered a voluntary agreement and he was willing and the contract is valid. Thus, D should comply with their agreement in good faith and does not have a legal justification to refuse payment to C.
Chapter 2: Nature & Effect of Obligations Study Guide
VI. Definitions
1. Generic/ Indeterminate thing – a thing that refers only to a
class or genus to which it pertains and cannot be pointed out with particularity. 2. Personal Right – power of a person to demand from another
3. Legal delay or Default –failure to perform an obligation on time which failure constitutes a breach of the obligation. 4. Fortuitous event- any event which cannot be foreseen, or
which, though foreseen, is inevitable.
5. Diligence of a good father of a family - ordinary care or
diligence which an average person exercises over his own property.
VII. Discussions
1. Give the rules as to the liability of a person for loss or damage resulting from a fortuitous event.
A person is not responsible for loss or damage resulting from a fortuitous event. Thus, his obligation will be extinguished. (Except when expressly specified by law, declared by stipulation, or when nature of obligation requires assumption of risk.)
2. What rights are given by law to the creditor in case the debtor fails to comply with his obligation to deliver a specific thing?
The creditor can demand specific performance or fulfillment of the obligation with indemnity for damages, OR demand rescission or cancellation of the obligation with a right to indemnity for damages, OR demand payment for damages only when it is the only feasible remedy.
3. What are included to be delivered in an obligation to give a definite thing? Explain them.
The obligation includes the delivery of all its accessions and accessories. Accessions are the fruits of a thing or additions to or
improvements upon a thing. Accessories are things joined to or included with the principal thing for the latter’s embellishment, better use, or completion.
4. Suppose the obligation of the debtor is to do something and he fails to do it or performs it in contravention of the agreement, what are the remedies available to the creditor?
If the debtor fails to comply, the creditor has the right to have the obligation performed by himself, or by another, (unless personal considerations are involved) at the debtor’s expense and to recover damages. If the debtor performs contrary to terms, it may be ordered by court that it be undone (if still possible to undo what was done)
5. Can a debtor be put in delay and consequently, incur liability even without demand from creditor? Explain.
No. If the creditor does not demand, then it is presumed that he is giving the debtor an extension of time and the latter in not liable for damages.
6. May an action arising from fraud be waived? Explain.
Yes. If the creditor, with full knowledge of the fraud committed by the debtor, decides to waive his right to indemnity, then it is considered as an act of forgiveness by the former to the latter. Waiver is void only when it is a waiver of an action for future fraud.
7. May an action arising from negligence be waived? Explain.
Yes. An action for future negligence may be renounced except where the nature of the obligation requires the exercise of extraordinary diligence as in the case of common carriers and when the negligence shows bad faith.
VIII. Problems
1. Who has a better right to Silver?
B has a better right to Silver because he had a right to Silver the moment his contract with S was perfected, which was on July 5. This is before T’s contract with S was perfected. Thus, B has a better right.
2. Is S guilty of legal delay?
No. S is only guilty of ordinary delay since B has not yet demanded. 3. Suzie gave birth to a colt on July 5
a. What are the obligations of S?
S is obliged to preserve Suzie, Deliver its fruits, Deliver its accessions and accessories, deliver Suzie, and answer for damages in case of non-fulfillment or breach.
b. Who has a right to the colt?
B has a right to the colt since it is a fruit of Suzie, which is part of what S has to deliver to B. c. Who is the lawful owner of Suzie in case it was sold and delivered by S to T on July 8?
T will be the lawful owner of Suzie if he acted in good faith. S will now be obliged to answer to B for damages. 4. Is D liable to pay interest?
D is not liable to pay interest since the payment of the interest was not stipulated in his contract with C. 5. Can R still collect from E the rents for January & February 2003?
R can collect from E the rents for January and February if he can show proof that the latter has not yet paid for the said months. If R cannot do so, then it is presumed that E has paid for the rent for January and February.
Chapter 3, Sec.1: Pure and Conditional Obligations Study Guide
IX. Definitions
1. Condition – a future and uncertain event, upon the happening
of which, the effectivity or extinguishment of an obligation subject to it arises. 2. Civil loss – a thing disappears in such a way that its existence
is unknown, or even if known, it cannot be recovered, whether as a matter or fact or of law. 3. Reciprocal obligations –those which arise from the same
cause where each party is a debtor and creditor to the other. 4. Pure obligation- obligation not subject to any condition and
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no specific date is mentioned for its fulfillment (immediately demandable).5. Potestative condition - a condition suspensive in nature and which depends upon the sole will of one of the contracting parties.
X. Discussions
1. Illustrate an obligation subject to: (a suspensive condition, (b)resolutory condition. (A) A will give B P100 if DLSU will beat ADMU in the game.
(B) A will give B P100 until DLSU beats ADMU in the game.
What is the effect of the fulfillment of the condition in a conditional obligation? (A) A’s obligation to B will arise
(B) A’s obligation to B will be extinguished
2. Give 2 cases when the conditional obligation is valid although the condition depends entirely upon the will of the debtor. Explain
(1) If the obligation is a pre-existing one and does not depend for its existence upon the fulfillment of the obligation. If the debtor already has an obligation, only the condition will be void because the obligation’s existence does not depend upon the condition’s fulfillment. (2) If the condition is resolutory, and depends upon the debtor, it is valid. It is the same as a suspensive condition that depends upon the creditor’s will.
3. May an obligor be liable under an obligation subject to a suspensive condition although the condition has not yet been fulfilled? Explain . Yes. If the condition is suspensive, and the obligor actually prevents the fulfillment of the condition, and he does this voluntarily, he can be held liable. The obligor is liable because he prevented the condition from happening to avoid his obligations.
4. In an obligation to give a parcel of land subject to a suspensive condition, who is entitled to the fruits that accrued during the pendency of the condition once said condition is fulfilled?
The debtor is entitled to the fruits of the land unless their stipulations clearly states otherwise. 5. State the rules in case the thing to be delivered:
a. Is lost with the debtor’s fault; without his fault
If w/ debtor’s fault, creditor is entitled to demand damages plus incidental damages, if any. If w/o debtor’s fault, obligation is extinguished and debtor has no liability to the creditor. b. Deteriorates with the debtor’s fault; without his fault
If w/ debtor’s fault, creditor may choose between rescission of obligation with damages OR fulfillment of obligation with damages. If w/o debtor’s fault, creditor will suffer the deterioration.
XI. Problems
1. Can C insist that B pay not later than August 30?
No. C cannot insist that B pay earlier because the condition is ―if B wants‖. The obligation is void. 2. Is the obligation valid?
The obligation is valid because the suspensive condition does depend upon the sole will of D. 3. What are the remedies of S?
S can EITHER demand action for specific performance (fulfillment) of the obligation with damages, OR demand action for rescission of the obligation with damages.
4. If you were the judge, would you grant the rescission?
No. I will not grant rescission because B is willing to pay the balance and only needs more time. I will grant B a term for performance instead.
5. Give the 3 cases when the obligation of D is demandable at once by C. (1) If D’s obligation does not depend upon a future or uncertain event. (2) If D’s obligation does not depend upon a past event unknown to the parties (3) If the obligation depends upon a resolutory condition.
Chapter 3, Sec.2: Obligations with a period Study Guide
I. Definitions
1. Obligations with a period – one whose consequences are
subjected in one way or another to the expiration of said period or term. 2. Period – a future and certain event upon the arrival of which
the obligation subject to it either arises or is terminated A day certain which must necessarily come although it may not be known when. 3. Indefinite period – when it is not fixed or it is not known when
it will come.
II. Discussions
1. Has the debtor the right to recover what he has paid to the creditor before the arrival of the period agreed upon? Explain.
Yes, if the debtor paid, unaware of the period, believing that it is already due and demandable, he can recover. The debtor paid ―by mistake‖ (solutio indebiti)
2. If an obligation does not state a period for its performance, has a party the right to ask a court to fix a period or the duration thereof? Explain . No. If the obligation does not state a period and no period is intended, the court is not authorized to fix a period. The courts have no right to make contracts for the parties.
3. Give the cases when the obligee can demand the performance of an obligation even before the arrival of the period agreed upon. (1) when debtor becomes insolvent.
(2) when debtor does no furnish the guaranties or securities promised.
(3) when guaranties or securities given have been impaired or have disappeared (4) when the debtor violates an undertaking
(5) when debtor attempts to abscond
III. Problems
1. Can D require C to accept payment before December 31?
No. It is presumed that the period designated is established for the benefit of both. An earlier payment by D may be inconvenient for C to accept.
2. Is the obligation of D conditional or one with a period?
It is one with a period because it is a future and certain event. Even if it is not known exactly when D’s father will D, it is known that that day will indeed come.
3. What rights, if any, does C have under the law? May C demand payment from D even before August 10?
C can demand payment from D and ignore the period. This is due to the impairment of D’s guaranty or security.
Chapter 3, Sec.3: Alternative Obligations Study Guide
I. Definitions
1. Alternative obligation – one wherein various prestations are
due but the performance of one of them is sufficient as determined by the choice which, as a general rule, belongs to the debtor. 2. Facultative obligation – one where only one prestation is due
but the debtor may substitute another.
3. Conjunctive obligation – one where there are several prestations and all of them are due.
II. Discussions
1. What are the limitations on the right of choice of the debtor in alternative obligations? Illustrate one such limitation.
Debtor cannot choose prestations which are impossible, unlawful, or which could not have been the object of the obligation. Also, debtor cannot choose if only one prestation is practicable or choose part of one prestation and part of another. (EX: If the prestations are to pay P250000, give a diamond ring or kill Pedro, debtor cannot choose to kill Pedro because it is unlawful)
2. Give the situation when the debtor is given the option either to exercise his right of choice or to rescind the contract with damages . If through the creditor’s acts, the debtor cannot make a choice, the latter may rescind the contract with damages.
3. State the legal effects in case:
a. Some of the objects of the obligation are lost through the fault of the debtor who has the right of choice;
The creditor may claim a different item with a right to damages or may pick the price of the one lost with a right to damages. b. All are lost through his fault.
The creditor may demand payment of the price of any of the prestations with a right to indemnity for damages.
III. Problems
1. Can D still change his period considering that he was given the right of choice?
No. D can only change his period with C’s consent because he has already communicated his choice thus it is irrevocable. 2. What is the liability of X in case, through hi fault:
a. Item two is lost or destroyed;
If Y chooses item two, he will the price of which and be liable for damages OR if Y chooses the other items, he will still be liable for damages.
b. All the items are lost or destroyed?
X will be liable for damages and will pay the price of the item which Y chooses. 3. Is S liable to B in case the TV is lost through S’s fault?
No, S is not liable because he can still perform his obligation by delivering his refrigerator instead.
Chapter 3, Sec.4: Joint and Solidary Obligations Study Guide
I. Definitions
1. Joint obligation –one where the whole obligation is to be paid
or fulfilled proportionately by different debtors and/or is to be demanded proportionately be different creditors 2. Solidary obligation – one where each one of the debtors is
bound to render, and/or each one of the creditors has a right to demand from any of the debtors, entire compliance with the prestation. 3. Active Solidarity- solidarity on the part of the creditors where
any one of them can demand the fulfillment of the entire obligation. 4. Joint indivisible obligation- the obligation is joint because the
parties are merely proportionately liable but indivisible because the object or subject matter is not physically divisible into different parts. 5. Solidary divisible obligation- the obligation is solidary because
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II. Discussions
1. If there are two or more debtors in one and the same obligation, is their liability joint or solidary?
It would depend. According to Art.1207, the concurrence of two or more debtors in one and the same obligation does not make them liable to comply with the whole obligation. Unless the obligation expressly so states, or the law or nature of obligation requires solidarity, the