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Questions and Answers
What is the status of a payment made by someone who does not have the capacity to alienate the thing due?
What is the status of a payment made by someone who does not have the capacity to alienate the thing due?
To whom should payment be made according to Article 1240?
To whom should payment be made according to Article 1240?
What is the effect of a payment made in good faith to a person in possession of the credit?
What is the effect of a payment made in good faith to a person in possession of the credit?
If a payment is made based on a fake Special Power of Attorney (SPA), what is generally the outcome?
If a payment is made based on a fake Special Power of Attorney (SPA), what is generally the outcome?
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Which of the following is NOT a valid recipient for a payment under Article 1240?
Which of the following is NOT a valid recipient for a payment under Article 1240?
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What type of indivisibility arises when the law specifically declares obligations to be indivisible, even when they are naturally divisible?
What type of indivisibility arises when the law specifically declares obligations to be indivisible, even when they are naturally divisible?
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Which of the following is an example of an obligation that is deemed indivisible by nature?
Which of the following is an example of an obligation that is deemed indivisible by nature?
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Which type of obligation cannot exist independently and relies on a principal obligation for its validity?
Which type of obligation cannot exist independently and relies on a principal obligation for its validity?
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Which of the following best describes an obligation that is intended to be indivisible, despite being physically divisible?
Which of the following best describes an obligation that is intended to be indivisible, despite being physically divisible?
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In terms of performance, which type of obligation is not susceptible to partial execution, requiring full completion?
In terms of performance, which type of obligation is not susceptible to partial execution, requiring full completion?
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Which of the following is an example of a legal obligation deemed indivisible, even when the service is physically divisible?
Which of the following is an example of a legal obligation deemed indivisible, even when the service is physically divisible?
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What is an obligation that stands alone and does not rely on any other obligation for its existence?
What is an obligation that stands alone and does not rely on any other obligation for its existence?
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Which of the following examples illustrates a natural indivisibility?
Which of the following examples illustrates a natural indivisibility?
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What defines a facultative obligation?
What defines a facultative obligation?
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In what scenario can a creditor exercise the choice of the first prestation?
In what scenario can a creditor exercise the choice of the first prestation?
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Under what conditions is a solidary obligation presumed to exist?
Under what conditions is a solidary obligation presumed to exist?
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What best describes a joint obligation in terms of debt fulfillment?
What best describes a joint obligation in terms of debt fulfillment?
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What does Article 1208 imply about the division of credits or debts?
What does Article 1208 imply about the division of credits or debts?
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Which statement correctly describes the obligations outlined in Article 1207?
Which statement correctly describes the obligations outlined in Article 1207?
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In a joint creditor situation, how do the creditors receive their payments?
In a joint creditor situation, how do the creditors receive their payments?
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What consequence arises if the sole prestation in a facultative obligation is lost due to the debtor's fault?
What consequence arises if the sole prestation in a facultative obligation is lost due to the debtor's fault?
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Under what circumstance is the debtor not liable for damages despite an obligation to deliver?
Under what circumstance is the debtor not liable for damages despite an obligation to deliver?
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What happens when a debtor promises to deliver a specific thing but sells it to multiple buyers?
What happens when a debtor promises to deliver a specific thing but sells it to multiple buyers?
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In what scenario is a debtor liable for damages even if the obligation to deliver results from a crime?
In what scenario is a debtor liable for damages even if the obligation to deliver results from a crime?
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When is the obligation to deliver a generic object considered fulfilled?
When is the obligation to deliver a generic object considered fulfilled?
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What is true about obligations that arise from an agreement in the context of fortuitous events?
What is true about obligations that arise from an agreement in the context of fortuitous events?
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What is the implication of a debtor insuring their house against fire regarding liability?
What is the implication of a debtor insuring their house against fire regarding liability?
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What is assumed about the nature of liability in a contract of insurance?
What is assumed about the nature of liability in a contract of insurance?
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Why might a debtor's obligation to deliver not be extinguished in cases of fortuitous events?
Why might a debtor's obligation to deliver not be extinguished in cases of fortuitous events?
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What determines whether an obligation is considered fully complied with when the performance is incomplete or irregular?
What determines whether an obligation is considered fully complied with when the performance is incomplete or irregular?
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Which statement correctly describes obligations regarding payment by a third party?
Which statement correctly describes obligations regarding payment by a third party?
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In the scenario where Marvin owes Elcid and Lynna pays on Marvin's behalf without Marvin's knowledge, what can Lynna recover?
In the scenario where Marvin owes Elcid and Lynna pays on Marvin's behalf without Marvin's knowledge, what can Lynna recover?
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What is one effect of subrogation in debt payments?
What is one effect of subrogation in debt payments?
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Which condition would permit a creditor to reject payment from a third party?
Which condition would permit a creditor to reject payment from a third party?
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What represents an example of an alternative obligation?
What represents an example of an alternative obligation?
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According to the obligation principles, when can a creditor refuse to accept payment?
According to the obligation principles, when can a creditor refuse to accept payment?
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What is NOT a requirement for an obligation to be considered fulfilled?
What is NOT a requirement for an obligation to be considered fulfilled?
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What is the primary distinction between criminal liability and civil liability?
What is the primary distinction between criminal liability and civil liability?
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Which of the following is NOT a type of civil liability scope mentioned?
Which of the following is NOT a type of civil liability scope mentioned?
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In the case of quasi-delicts, liability arises primarily from which of the following?
In the case of quasi-delicts, liability arises primarily from which of the following?
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What must civil obligations arising from criminal offenses comply with, according to Article 1161?
What must civil obligations arising from criminal offenses comply with, according to Article 1161?
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What is implied by the term 'good faith' in contracts according to Article 1159?
What is implied by the term 'good faith' in contracts according to Article 1159?
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What is an example of restitution in the case of theft?
What is an example of restitution in the case of theft?
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Which scenario best exemplifies indemnification for consequential damages?
Which scenario best exemplifies indemnification for consequential damages?
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Which statement accurately describes the relationship between criminal and civil liability?
Which statement accurately describes the relationship between criminal and civil liability?
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Study Notes
Different Kinds of Law
- Law is any rule of action or system of uniformity.
- Divine Law: The law of religion, dictated by a religion, e.g. Sunday church attendance, specific religious practices.
- Natural Law: Law dictating reason and conscience, inherent in every individual, e.g. don't steal.
- Moral Law: Based on customs and traditions of a community, e.g. respecting elders.
- Physical Law: Natural laws of science, uniformities in actions (e.g., gravity).
- State Law: Law promulgated and enforced by the State. Example: jaywalking.
Sources of Law
- Constitution: The fundamental, supreme law of the land, establishing the government's powers, distributed among departments. The 1987 Philippine Constitution was established in 1987 after the ouster of President Marcos.
- Legislation: Enacted laws passed by the Philippine Congress and approved by the President. Examples: RESA law, bills.
Branches of Government
- Executive: Enforces laws, headed by the President.
- Legislative: Creates laws, made up of the House of Representatives and Senate.
- Judiciary: Interprets laws, made up of courts.
Organization/Classification of Courts
- Regular Courts: Composed of Trial Courts, Supreme Court, Court of Appeals, Regional Trial Courts, and Municipal Courts.
- Special Courts: Created for specific cases, e.g., Sandiganbayan (corruption cases).
- Quasi Judicial Agencies: Administrative bodies with judicial functions, e.g. NLRC, SEC.
- Administrative/Executive Orders: Issued by administrative officials to clarify and explain legislative acts; valid if not against laws/Constitution. Martial Law (executive order no. 1081)
Judicial Decisions
- Court rulings act as precedents
- Examples: Juan Ponce Enrile granted bail due to humanitarian reasons
Custom
- Traditions passed from generations becoming part of law, e.g. Manobo tribal customs.
Other Sources
- International law/ UN Law
- United Nations Convention on the Law of the Sea
Classification of Law by purpose
- Substantive Law: Defines rights and duties (e.g., law of burning plastics).
- Procedural Law: Outlines procedures for applying substantive law
Classification of Law by subject matter
- Public Law: Defines the state's relationship with people (e.g., tax laws).
- Private Law: Regulates individual relationships (e.g., contract laws).
Civil Code of the Philippines (Republic Act 386)
- Took effect August 30, 1950
- Based on the Spanish Civil Code.
Obligations
- Consists in giving, doing, or not doing something.
- Essential requisites: debtor (obligated party), creditor (beneficiary), prestation (subject matter).
- Forms: oral, written, combined.
- Kinds: Real, personal, positive, negative.
Sources of Obligations
- Law
- Contracts
- Quasi-contracts
- Delicts (crimes)
- Quasi-delicts (torts)
Scope of Civil Liability
- Restitution
- Reparation for damage/injury caused
- Indemnification for consequential damages
- Example: Paying damages for injuries caused by a crime
Quasi-Delicts (Torts)
- Negligence causing harm without a contract
- Example: Dog bites someone during a walk
Obligation Arising from Contracts
- Contracts have the force of law.
- Essential requisites: consent, object, cause.
- Breach of contract is a violation.
Breach of Contract
- If a party fails to perform its duty
- Failure to perform correctly or according to agreement
- Damages are incurred
Obligations with a period
- Obligations with an explicitly stated date in which fulfillment must be rendered.
- If debtor violates a condition with a period, it can lose the right to enforce the period.
Conditional Obligations
- Outcomes contingent on conditions.
- Suspensive (right to fulfill only if given condition is met). Resolutory (right to fulfill terminates upon condition being met)
Void and Unenforceable Contracts
- In existence but are not enforceable under law
Remedies Available to Creditors
- Exact fulfillment (specific performance)
- Pursue the leviable property of the debtor
- Exercise all rights of the debtor- except those personal to the debtor
- Rescind contracts that defraud the creditor
Rights of Creditor/Debtor in pending fulfillment of condition
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Description
Test your knowledge on the legal principles surrounding payments under Article 1240. This quiz covers topics such as capacity to alienate, valid payment recipients, and implications of good faith payments. See how well you understand the foundations of civil law related to financial transactions.