Obligations: Sources and Types

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Questions and Answers

What happens if it is unclear which party breached the contract first?

  • The contract remains valid, and the first breacher is solely liable.
  • The court will decide both parties are equally responsible for damages.
  • The party that breached first is liable for all damages.
  • The contract is deemed extinguished, and both parties bear their own damages. (correct)

What is the effect of a suspended condition being prevented by the debtor?

  • The debtor is exempt from any obligations under the contract.
  • The condition is considered unfulfilled indefinitely.
  • The obligation is retroactively validated from its creation. (correct)
  • The obligation must be fulfilled once the condition is reinstated.

How does a fixed period in a contract benefit both parties?

  • It gives the debtor more time to make payments and benefits the creditor with higher interest. (correct)
  • It ensures the debtor can only pay when they have surplus funds.
  • It permits both parties to alter payment terms without mutual consent.
  • It allows the creditor to demand payments without waiting for the period to expire.

What limitation exists regarding premature actions by the debtor?

<p>The debtor cannot pay early without the creditor’s consent. (B)</p> Signup and view all the answers

What happens when the contract is rescinded?

<p>Both parties are released from further obligations but may still owe some damages. (B)</p> Signup and view all the answers

What defines an obligation?

<p>A legal responsibility to give, do, or not do something. (C)</p> Signup and view all the answers

Which of the following is NOT a source of obligations?

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

What must contracts be honored in?

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

What type of obligation arises when someone benefits unfairly from a situation?

<p>Quasi-contracts (A)</p> Signup and view all the answers

What is required of someone obligated to give something?

<p>They must take care of it like a 'good father of a family.' (C)</p> Signup and view all the answers

What distinguishes a generic thing from a specific thing?

<p>A generic thing is part of a group or category. (A)</p> Signup and view all the answers

What might happen in addition to facing criminal punishment when one commits a crime?

<p>They may have civil responsibility to pay for damages. (B)</p> Signup and view all the answers

Obligations must be clearly stated in the law unless:

<p>General rules in the Civil Code apply. (A)</p> Signup and view all the answers

What must a debtor do when delivering a specific item?

<p>Deliver the exact item specified (B)</p> Signup and view all the answers

What type of fruits are obtained from cultivation or human effort?

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

When does the obligation to deliver something begin in a contract?

<p>When both parties agree on the terms (C)</p> Signup and view all the answers

Which type of right involves a specific person as part of the obligation?

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

In the event of a debtor's failure to deliver a determined item, what can the creditor demand?

<p>Delivery of damages incurred (A)</p> Signup and view all the answers

If a debtor's item is lost or destroyed, what is true for a generic obligation?

<p>The debtor can replace it with another item of the same type (A)</p> Signup and view all the answers

What does 'Genus Nunquam Perit' imply?

<p>A type of item still exists even if original is lost (B)</p> Signup and view all the answers

What happens if a debtor fails to deliver an indeterminate thing?

<p>The creditor can seek compliance at debtor's expense (A)</p> Signup and view all the answers

Which category of fruits includes rent payments?

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

What must a debtor do regarding care for valuable items?

<p>Take extra care of those items (A)</p> Signup and view all the answers

What does a real right allow the owner to do?

<p>Exercise rights over a certain thing against anyone (C)</p> Signup and view all the answers

What are accessions in relation to a specific item?

<p>Improvements or additions to the item (C)</p> Signup and view all the answers

What is a consequence if the debtor does not fulfill their obligation?

<p>The creditor can claim payment of damages (C)</p> Signup and view all the answers

Which event does not excuse a debtor from timely delivery?

<p>Natural disasters (C)</p> Signup and view all the answers

What is the consequence for an obligor who acts with fraud or malice?

<p>They are fully liable for all damages. (B)</p> Signup and view all the answers

What defines the diligence of a good father in obligations?

<p>Acting as a responsible and cautious individual. (C)</p> Signup and view all the answers

Which of the following is considered a fortuitous event?

<p>A natural disaster that could not be foreseen. (B)</p> Signup and view all the answers

What remedy allows creditors to claim payments from a third party that owes money to the debtor?

<p>Accion Subrogatoria. (A)</p> Signup and view all the answers

Which rights cannot be transferred according to the exceptions to transmissibility?

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

What happens if a conditional obligation has a condition that becomes impossible?

<p>The condition is void, but the obligation remains valid. (A)</p> Signup and view all the answers

What occurs if a stipulated event in a positive condition does not happen by the specified time?

<p>The obligation ends. (C)</p> Signup and view all the answers

What defines a negative condition in obligations?

<p>The obligation binds if the event does not happen. (D)</p> Signup and view all the answers

What must be true for the court to allow rescission of a contract?

<p>The violation must be substantial. (C)</p> Signup and view all the answers

How can rescission of a contract occur without court involvement?

<p>Through a written notice of rescission. (A)</p> Signup and view all the answers

What are the requirements for constructive fulfillment of a suspensive condition?

<p>The condition must be suspensive and the obligor prevents fulfillment voluntarily. (D)</p> Signup and view all the answers

What effect does the fulfillment of a conditional obligation have retroactively?

<p>It retroacts to the day the obligation was created. (D)</p> Signup and view all the answers

What does the debtor's full liability entail?

<p>The debtor is liable for their obligations with all properties, present and future. (B)</p> Signup and view all the answers

What is the main principle regarding accessions and accessories in an obligation?

<p>Accessories are considered part of the principal item. (A)</p> Signup and view all the answers

When does the right to fruits from an obligation arise under conditional circumstances?

<p>When a specified condition is fulfilled. (D)</p> Signup and view all the answers

What happens if the debtor fails to perform their obligation?

<p>The creditor has the right to perform the obligation themselves. (D)</p> Signup and view all the answers

In the context of an obligation, what does 'mora solvendi' refer to?

<p>Delay caused by the debtor. (C)</p> Signup and view all the answers

Which of the following best describes the debtor's obligation in delayed performance?

<p>The debtor may defend themselves against liability if the delay was excusable. (D)</p> Signup and view all the answers

What obligation does a person have if they are instructed not to perform a specific action?

<p>They must undo the action at their expense if done. (D)</p> Signup and view all the answers

What can a creditor do when there is a delay caused by them, known as 'mora accipiendi'?

<p>Be liable for damages and risks of loss. (B)</p> Signup and view all the answers

How is negligence defined in the context of obligations?

<p>Failure to take the proper care required. (A)</p> Signup and view all the answers

What kind of damages can a person be liable for if they act negligently?

<p>Damages that are natural and foreseeable consequences. (C)</p> Signup and view all the answers

What does Article 1168 state regarding an obligation not to perform?

<p>The unauthorized act must be undone at the person's expense. (B)</p> Signup and view all the answers

What does the principle of 'time is of the essence' mean in contractual obligations?

<p>The time of performance is crucial to the agreement. (C)</p> Signup and view all the answers

What is one of the remedies for poor performance by the debtor?

<p>The task must be done at the debtor's cost. (A)</p> Signup and view all the answers

What is expected from an obligor's level of care?

<p>Level of care depends on the nature and circumstances. (C)</p> Signup and view all the answers

What constitutes 'delay' according to the obligations described?

<p>A state of being late regardless of demand. (D)</p> Signup and view all the answers

In a situation where both parties have obligations, when does delay begin for one party?

<p>Once the other party fulfills their obligation. (B)</p> Signup and view all the answers

Flashcards

Obligation (Article 1156)

A legal duty to give, do, or refrain from doing something.

Source of Obligations (Article 1157)

Obligations arise from law, contracts, quasi-contracts, crimes, and quasi-delicts.

Obligations from Law (Article 1158)

Obligations based on laws are explicit, and the Civil Code fills in gaps.

Obligations from Contracts (Article 1159)

Agreements between parties are legally binding and must be followed.

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Obligations from Quasi-Contracts (Article 1160)

Obligations created when someone benefits unfairly, even without an agreement

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Civil Obligations from Crimes (Article 1161)

Criminal acts often create civil responsibilities for damages.

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Generic/Indeterminate Thing

A thing that's part of a group or category, not a specific unique item.

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Standard of Care (Article 1163)

Those obligated to give something must take care of it responsibly, like a good family head.

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Accessio Cedit Principali

This principle states that an accessory (something added to or connected to a main thing) is considered part of the principal thing. For example, a decoration on a table is part of the table.

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When does the right to fruits arise?

The right to fruits from a thing depends on the type of contract: Conditional - When a specific condition is met. With a Term/Period - When a set time period ends. Simple - When the contract is finalized.

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Obligation to Deliver Specific Thing

If a contract says to deliver a specific item, it includes any accessories or things added to it, even if not mentioned.

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Prestation to Do

This is an obligation to perform a specific action. If the debtor fails to do it, they must pay for it to be done correctly.

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What if the task is done wrong?

The court can order the work to be undone at the debtor's expense. If the debtor refuses, the creditor can have it fixed.

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Prestation Not to Do

This is an obligation to refrain from doing something. If the person does the forbidden act, they must undo it at their expense.

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Delay or Default

When a person is late in delivering or performing a task, they are in delay. This usually starts after the creditor makes a demand.

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Demand may not always be needed...

Delay can start automatically if laws or the contract say so. Also, if time was a key part of the agreement (time is of the essence).

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Reciprocal Obligations

When both parties have things to give or do, neither party is in delay until the other fulfills their part.

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Mora Solvendi

This is delay by the debtor. They are in breach of the obligation, are liable for damages or interest, and might still be responsible for losses.

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Mora Accipiendi

This is delay by the creditor. They are in breach of the obligation, are liable for damages, and bear the risk of loss of the thing delivered.

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Negligence

Negligence is failing to take proper care required by the obligation. It means not being careful enough, leading to harm.

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Liability for Damages (Negligence)

A person who is negligent is responsible for damages that are the natural and foreseeable consequences of their actions.

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Factors Affecting Level of Care

The level of care depends on the nature of the obligation, the person's circumstances, time, and place.

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Specific/Determinate Thing

A specific, identified item that is unique. For example, the red chair in the living room. It cannot be replaced with something else unless the receiver agrees.

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Duties of the Debtor

The person who owes something (the debtor) must deliver the exact item agreed upon and take reasonable care of it. They are not responsible for events beyond their control.

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Ordinary Care

The level of care a reasonable person would take to protect their own property. It is the standard of care expected of the debtor.

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Extra Care

When the item is valuable or special, the debtor must take extra care beyond ordinary care. They must use particular diligence.

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Fruits of the Thing

These are benefits or profits that come from the item owed. They can be natural, industrial, or civil.

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Natural Fruits

These grow naturally without human effort, like fruits or crops.

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Industrial Fruits

These come from human work or cultivation, like crops from farming.

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Civil Fruits

These are benefits from legal agreements, such as rent payments or investment income.

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Personal Right

A right that exists between specific people, involving a creditor demanding something from a debtor.

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Real Right

A right to a specific thing that applies to everyone, regardless of ownership. It's a right over property.

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Indeterminate Thing

A thing that is not unique and can be replaced with any other item of the same type, like 'a chair'.

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Genus Nunquam Perit

It means that the generic type of a thing never perishes. Even if the specific item is lost, the debtor can still be forced to deliver another item of the same kind.

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Accessions

These are additions or improvements to the main thing. Examples: fruits produced from a tree or improvements made to a house.

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Accessories

These are things that are joined to the main thing to complete it. Examples: a decoration on a piece of furniture.

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A.P.I. (Accessions)

These are additions or improvements to the main thing with these qualities: A (Attached), P (Produced), I (Incorporated).

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Demand Fulfillment

When the debtor fails to deliver a specific thing, the creditor can demand the delivery of the item and seek damages for the delay.

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Rescission or Cancellation

The creditor can cancel the contract and recover damages if the debtor fails to deliver a specific thing.

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Payment of Damages

If the other options are not possible, the creditor can claim damages for the debtor's failure to deliver a specific thing.

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Diligence of a good father

When the contract or law doesn't specify the level of care required, the person must act as a responsible and cautious person would, like a 'good father' of a family.

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Fortuitous event

An unpredictable and unavoidable event, even if you knew it could happen, like a natural disaster or an accident.

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Exact fulfillment

The main way creditors can get what is owed to them is by asking for the exact performance of the obligation.

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Writ of attachment

A court order to seize a debtor's property before a judgment is made.

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Accion Subrogatoria

If the debtor owes money but also has rights against a third party, the creditor can step into the debtor’s shoes and claim that third party’s payment.

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Accion Pauliana

If the debtor has made deals to defraud the creditor (like hiding property), the creditor can ask the court to cancel those actions.

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Transmissibility of rights

Rights acquired through obligations can usually be passed on to others unless the contract or law says otherwise.

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Impossible condition

If a condition is impossible to fulfill, only the condition is void, not the obligation itself.

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Positive condition

A condition that depends on an event happening at a specific time.

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Constructive fulfillment

If the debtor voluntarily prevents the fulfillment of a suspensive condition, the condition is considered fulfilled.

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Retroactive effect

When a conditional obligation is fulfilled, the effects go back to the day the obligation was made.

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Rescission

Canceling a contract due to a breach (violation) of its terms.

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First Breacher Liability

If one party breaches a contract first, a court can reduce their liability.

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Mutual Breach Outcome

When both parties breach a contract at the same time, and it's unclear who breached first, the contract is considered void, and each party bears their own damages.

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Debtor's Benefit of Period

When a contract specifies a payment deadline, it generally benefits both the debtor (more time to pay) and the creditor (higher interest).

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Premature Payment

A debtor cannot pay before the due date without the creditor's permission, and a creditor cannot demand payment before the due date without the debtor's permission.

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Benefit of Period Exception

If a contract term benefits only the debtor, they can pay early but are not required to. If the term benefits only the creditor, they can demand early payment, and the debtor cannot pay early.

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Study Notes

Obligations: Sources and Types

  • Obligations are legal responsibilities to give, do, or not do something.
  • Obligations arise from law, contracts, quasi-contracts, acts/omissions punished by law, and quasi-delicts.
  • Obligations based on law need explicit mention; otherwise, Civil Code rules apply.
  • Contracts are binding agreements, requiring good faith.
  • Quasi-contracts involve situations where fairness dictates obligation, even without an agreement.
  • Civil obligations from crimes impose liability for damages alongside criminal punishment.
  • Quasi-delicts involve liability for harm caused by negligence or carelessness.

Types of Things in Obligations

  • Generic/Indeterminate things are part of a group; they can be replaced.
  • Specific/Determinate things are unique and cannot be replaced without agreement.

Debtor's Duties

  • Debtors must deliver/perform what was promised.
  • They must take care of the thing, with ordinary care or extra care for valuable items.
  • They are not responsible for unavoidable events (fortuitous events).
  • The thing should be in the same condition as when the agreement was made.

When Obligations to Deliver Arise

  • Obligation arises when the contract is perfected (both parties agree).
  • Suspensive conditions make obligation conditional.
  • In sales contracts, obligation arises upon perfection, even with conditions or a timeframe, as long as they have paid the price.

Types of Fruits

  • Natural fruits: Grow naturally (crops, resources).
  • Industrial fruits: Result from cultivation or labor.
  • Civil fruits: Revenue from legal agreements (rent, interest).

Personal vs. Real Rights

  • Personal Rights: Rights of a creditor to demand debtor performance. Tied to specific people.
  • Real Rights: Rights to property, enforceable against anyone.

Remedies for Non-Delivery of Specific Things

  • Demand for delivery and damages.
  • Rescission (contract cancellation) and damages.
  • Payment of damages.

Delay (Mora)

  • Mora Solvendi (debtor's delay): Debtor's failure to perform on time, potentially liable for damages, even with fortuitous events.
  • Mora Accipiendi (creditor's delay): Creditor's refusal to accept; creditor bears the risk of loss.

Negligence & Diligence

  • Negligence is failure to exercise reasonable care.
  • Diligence of a "good father of a family" is the standard if no other is specified.
  • The level of care depends on circumstance.

Fortuitous Events

  • Fortuitous events (unavoidable events) generally excuse the debtor.

Transmissibility of Rights

  • Rights can usually be transferred, unless prohibited by law or contract.

Conditional Obligations

  • Suspensive conditions (events must happen first) create conditional obligations.
  • Impossible conditions make only the condition, not the entire obligation, void.
  • Obligations end if conditions are not met within the specified time, or if fulfillment is unlikely from the period set.

Prevention of Condition Fulfillment

  • If an obligor prevents a condition from happening, the condition is considered as fulfilled.

Retroactive Effects of Fulfilled Conditions

  • When a conditional obligation is fulfilled, its effects retroact to the moment the obligation was created in most cases.

Rescission of Contracts (Art.1192)

  • Rescission cancels a contract due to breach.
  • Rescission is limited to substantial breaches, not minor violations.
  • It may involve judicial or extrajudicial methods. Judicial rescission requires court involvement.
  • There are limitations, for example when a third party is involved in good faith.

Breach of Contract by Both Parties (Art.1192)

  • If both parties breach, the court reduces liability for the first infractor; or contract is extinguished, each bears damages.

Benefit of Period (Art. 1196)

  • Generally, the period in contracts benefits both parties.
  • Premature payment/demand is not allowed unless permitted by agreement.
  • The debtor does not always have the right to pay early.

Obligations to Do/Not To Do

  • Obligations to do (Art 1167): If performance is not met, the injured party can hire someone else (at debtor's expense) to complete the task or claim damages.
  • Obligations not to do (Art. 1168): If something is forbidden, the forbidden action must be stopped and damages paid or the action undone ( at debtor's expense).

Obligations to Deliver a Specific Thing

  • If delivery is required but not made, creditors can:
    • Force delivery, or claim compensation for the breach.

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