Law on Obligations Overview

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Questions and Answers

What can the creditor do if the debtor fails to perform an obligation at all?

  • Allow the debtor additional time to complete the task
  • Perform the activity at debtor's cost (correct)
  • Ignore the breach and move forward
  • Compensate the debtor for their time

If the debtor performs the obligation poorly, what is the creditor's remedy?

  • Report the debtor to authorities for fraud
  • Accept the performance as satisfactory
  • Negotiate a new contract
  • Have it redone by someone else at the debtor's expense (correct)

In the context of obligations, what signifies a breach?

  • Consistent performance over time
  • Offering additional services to the creditor
  • Non-compliance or lack of integrity (correct)
  • Complete compliance with the terms

Which of the following is NOT a mode of breaching an obligation?

<p>Compensation (B)</p> Signup and view all the answers

What must be present before the debtor can be considered in delay?

<p>A perfected contract (D)</p> Signup and view all the answers

Which type of negligence pertains to the omission of required diligence in obligations?

<p>Culpa Contractual (A)</p> Signup and view all the answers

What are the requirements for an action for damages due to breach of obligation?

<p>The obligation must be liquidated and demandable (B)</p> Signup and view all the answers

If the debtor does something they were obliged not to do, what is the outcome?

<p>It must be undone at the debtor's expense (B)</p> Signup and view all the answers

What does deliberate intention to cause damage represent in breach scenarios?

<p>Fraud (D)</p> Signup and view all the answers

What defines the integrity of obligations in performance?

<p>Complete compliance with all aspects (C)</p> Signup and view all the answers

What is the legal term for the obligation to give, to do, or not to do, as defined in Article 1156 of the Civil Code of the Philippines?

<p>Obligation (A)</p> Signup and view all the answers

Which of the following is NOT a requisite for a valid obligation?

<p>Capacity of the obligor (C)</p> Signup and view all the answers

What type of obligation is BEST described as a juridical necessity arising from law, contracts, quasi-contracts, delict, or quasi-delict?

<p>Civil Obligation (A)</p> Signup and view all the answers

What is the term for the legal tie or bond that connects the obligor and obligee in an obligation?

<p>Vinculum Juris (C)</p> Signup and view all the answers

Which of the following options correctly describes the 'object or prestation' in an obligation?

<p>The subject matter of the obligation, requiring something to be delivered or an action to be performed. (C)</p> Signup and view all the answers

In an obligation to give a determinate thing, what is the accessory obligation the obligor is required to perform alongside the principal obligation?

<p>All of the above (D)</p> Signup and view all the answers

Which of the following options accurately describes the difference between a generic thing and a determinate thing in an obligation to give?

<p>A generic thing is replaceable, while a determinate thing is unique and cannot be replaced. (A)</p> Signup and view all the answers

If an obligor fails to exercise due diligence in taking care of a determinate thing to be delivered, what potential consequences could they face?

<p>All of the above (D)</p> Signup and view all the answers

What is the legal remedy available to an obligee in a case where the subject of the obligation is a determinate thing which the obligor is unwilling to deliver?

<p>All of the above (D)</p> Signup and view all the answers

Which of the following sources of obligations relates to civil obligations stemming from unlawful acts or offenses that cause damage to another?

<p>Delict (B)</p> Signup and view all the answers

Flashcards

Obligation

A juridical necessity to give, do, or not do, as per Article 1156 of the Civil Code.

Juridical Tie

The legal connection between parties in an obligation, known as vinculum juris.

Active Subject

The obligee or creditor, the one entitled to demand the fulfillment of the obligation.

Passive Subject

The obligor or debtor, the one bound to perform the obligation.

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Civil Obligations

Obligations arising from law or contracts that are enforceable by judicial action.

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Natural Obligations

Obligations that are not enforceable by law but are binding in moral terms.

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Principal Obligation

The main duty to deliver a specific determinate thing.

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Accessory Obligation

Duties related to the principal obligation, such as care for the thing delivered.

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Liability for Damages

The responsibility incurred if the obligation is not fulfilled, regardless of unforeseen events.

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Remedies of the Obligee

Options available to a creditor if an obligation is breached, such as specific performance and damages.

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Total failure to do

When an obligation is not fulfilled, a debtor must pay for someone else to perform the task.

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Creditor's remedies for failure

The creditor can have the obligation fulfilled by another party at the debtor's expense if not completed properly.

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Failure to perform correctly

If the obligation is performed poorly, the creditor can undo it and hire another at the debtor's cost.

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Debtor's unlawful act

If a debtor does something they were obliged not to, it must be undone at their expense.

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Identity of Obligations

Obligations must be complied with exactly as stated.

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Integrity of Obligations

Compliance must be complete and not partial.

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Breach by negligence

Failure to act with the care required leads to obligations being breached.

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Deliberate intention to cause damage

An act done with the intention to harm can lead to breach claims.

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Culpa Aquiliana

Civil negligence refers to failure to fulfill obligations due to lack of care.

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Culpa Contractual

Contractual negligence occurs when obligations are breached despite a contract.

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Study Notes

Law on Obligations

  • Obligations are a juridical necessity to give, to do, or not to do. (Article 1156, Civil Code of the Philippines)
  • The Latin root "obligare" means "to bind."

Topics

  • Nature of Obligations
  • Different Kinds of Obligations
  • Extinguishment of Obligations

Requisites of an Obligation

  • Juridical tie (vinculum juris)
  • Object or prestation (to give, to do, or not to do)
  • Active subject (obligee/creditor)
  • Passive subject (obligor/debtor)

Sources of Obligations

  • Law
  • Contracts
  • Quasi-contracts
  • Delict
  • Quasi-delicts

Effects of Obligation to Give

  • Purpose: Transfer ownership or possession
  • Things to be delivered: Generic (e.g., 5 mangoes) or Specific (e.g., car with Plate No. ABC 888)
  • Accessory Obligations: Take care of the thing to be delivered with the diligence of a good father of a family; deliver accessions and accessories; deliver fruits from the moment the obligation to deliver arises.

Effects of Failure to Exercise Due Diligence

  • Liability for damages
  • Liable even if there was fortuitous event

Remedies of the Obligee/Creditor in Obligation to Give a Determinate Thing

  • Action for specific performance
  • Action for damages

Remedies in Obligation to Deliver a Generic Thing

  • Specific performance
  • Substitute performance
  • Action for damages

Remedies of the Obligee/Creditor in Case of Failure in Obligations to Do

  • Total failure: Activity performed at debtor's cost (e.g., House painting) or recover damages if only the debtor can perform.
  • Failure in tenor/incorrect performance: Obligee/creditor can have it done by someone else at debtor's expense.
  • Poorly performed: Undone and redone by someone else at debtor's expense.

Remedies of the Obligee/Creditor in Obligation Not to Do

  • If the debtor did what he was obliged not to do, it must be undone at the debtor's expense.
  • If the doing is impossible to undo, the debtor is liable for damages.

Performance of the Obligation

  • Identity of Obligations – complied with precisely
  • Integrity of Obligations – compliance must be complete

Breach of Obligations

  • Non-compliance
  • Compliance without identity or integrity

Modes of Breaching the Obligation

  • Fraud
  • Negligence
  • Delay
  • Any manner that contravenes tenor of obligation

Effect of Non-Performance

  • Liable for damages

Requisites of Action for Damages

  • Perfected contract
  • Breach by obligor/debtor
  • Damages obtained by obligee/creditor due to such breach

Requirements Before Debtor Can Be Considered in Delay

  • Positive obligation (to give or to do)
  • Demandable and liquidated obligation
  • Obligor delays due to reasons imputable to him
  • Judicial or extrajudicial demand

Breach through Fraud

  • Deliberate intention to cause damage

Breach through Negligence

  • Omission of diligence required by the nature of the obligation.
  • Types: Culpa Aquiliana (civil negligence), Culpa Contractual (contractual negligence), Criminal Negligence

Fortuitous Event

  • Independent of the human will
  • Impossible to foresee
  • Occurrence renders fulfillment of obligation impossible
  • Obligor free from participation in aggravating the injury.

Liability to Pay Interest

  • Agreement that interest is earned
  • Agreement for interest must be expressly stipulated in writing
  • Interest rate must not be usurious, excessive, or unconscionable.

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