Modes of Extinguishing Obligations in Civil Law

Sources of Obligations

• There are two sources of obligations: law and contracts
• Obligations arising from quasi-contracts, crimes, and quasi-delicts are imposed by law

Contracts

• A contract is a meeting of minds between two persons where one binds themselves to give something or render a service
• Essential elements of a contract:
  • Consent, manifested by the meeting of minds of the offer and acceptance
  • Object certain, which is the subject matter of the contract
  • Cause of the obligation, which is established

Quasi-Contracts

• Refers to a lawful, voluntary, and unilateral act based on the maxim that no one shall unjustly enrich at the expense of another
• Forms of Quasi-Contracts:
  • Solutio indebiti – payment by mistake
  • Negotiurum gestio – assuming the management of an abandoned business without the owner's consent

Quasi-Delict

• Any act or omission that causes damages to another, with fault or negligence, and no preexisting contractual relation between parties
• Also known as culpa aquiliana

Classification of Obligations

• Primary classification:
  • Pure and conditional obligations (Art. 1179-1192)
  • Obligations with a period (Art. 1193-1198)
  • Alternative and facultative obligations (Art. 1199-1205)
  • Joint and solidary obligations (Art. 1207-1222)
  • Divisible and indivisible obligations (Art. 1223-1225)
  • Obligations with a penal clause (Art. 1226-1230)
• Secondary classification:
  • Unilateral and bilateral obligations (Art. 1169-1191)
  • Real and personal obligations (Art. 1163-1168)
  • Civil and natural obligations (Art. 1423)
  • Legal, conventional, and penal obligations (Art. 1157, 1159, 1167)

Classification of Obligations - Primary

• Pure obligation: not subject to any condition, immediately demandable
• Conditional obligation: consequence subject to the fulfillment of a condition
• Obligation with a period: consequence subject to the expiration of a period or term

Classification of Obligations - Primary (continued)

• Divisible obligation: object of performance susceptible to division
• Indivisible obligation: object of performance not susceptible to division due to its nature or the intent of the parties

Modes of Extinguishing Obligations

• Obligations are extinguished by:
  • Payment or performance
  • Loss of the thing due
  • Condonation or remission of the debt
  • Confusion or merger of the rights of the creditor and debtor
  • Compensation
  • Novation
• Other causes of extinguishment of obligations:
  • Annulment
  • Rescission
  • Fulfillment of a resolutory condition
  • Prescription

Modes of Extinguishing Obligations (continued)

• Death extinguishes obligations which are purely personal in character
• Obligations may be extinguished by a fortuitous event or by the will of the parties
• Fortuitous event: extraordinary events not foreseeable or avoidable, such as natural disasters or human acts

Classification of Contracts

• According to perfection:
  • Consensual contracts: perfected by the mere agreement of the parties
  • Real contracts: require not only consent but also the delivery of the object
• According to form:
  • Common contracts: require no particular form
  • Special or formal contracts: require some particular form
• According to purpose:
  • Transfer of ownership
  • Conveyance of use
  • Rendition of service
• According to subject matter:
  • Things
  • Services
• According to the nature of the vinculum which they produce:
  • Unilateral and bilateral obligations