Understanding Types of Obligations
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Questions and Answers

Article 1191 allows the injured party to choose between rescission and fulfillment of the obligation.

True (A)

A determinate obligation refers to something that is particularly designated or physically segregated from all others of the same class.

True (A)

Under Article 1191, a breach of obligation must always involve a failure of a condition to render the obligation binding.

False (B)

Civil obligations do not grant a right of action in courts of justice.

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

If both parties have committed a breach of obligation, the contract is automatically enforced regardless of the circumstances.

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

Natural obligations are those that can be enforced legally and grant a right of action.

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

In the case where the first infractor can be identified, the liability will be apportioned equitably between the parties.

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

A conditional obligation's consequences are always subject to the fulfillment of a condition.

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

Legal obligations arise because the law directly requires a person to do or not do something.

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

Both parties must suffer the damages they incurred when it is unclear which party was the first to breach the obligation.

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

Conventional obligations arise from circumstances beyond the control of the parties involved.

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

A pure obligation is immediately demandable and has multiple conditions attached.

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

Penal obligations impose a penalty for non-compliance with a principal obligation.

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

In a solidary obligation, each debtor is only responsible for their proportional share.

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

An obligation with a period is dependent on the expiration of a specified term.

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

A condition is defined only by its future aspect, and its uncertainty is not a requirement.

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

A condition can refer to a past event that is unknown to the parties involved.

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

A bilateral obligation can only be reciprocal in nature.

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

An indevisible obligation allows for partial fulfillment of its performance.

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

A facultative obligation allows the obligor to fulfill the obligation with any alternative prestation.

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

A unilateral obligation involves two parties wherein one is obliged to fulfill the prestation.

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

A debtor is always liable for loss caused by fortuitous events.

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

If a thing deteriorates without the debtor's fault, the debtor is liable for the loss in value.

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

C can choose to rescind the obligation if D is at fault for the deterioration of the thing.

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

The value of an item can be improved by time or nature without any cost incurred by the debtor.

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

In case of deterioration due to D's negligence, C may demand damages equal to the original value of the item.

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

Rescission can only be applied to contracts involving the creditor.

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

C benefits from improvements made to an item at D's expense during the pendency of a condition.

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

C must absorb the cost of any incidental damages resulting from D's failure to fulfill the obligation.

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

The right to rescind is absolute and does not require court approval.

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

Judicial rescission requires that the injured party must go to court to assert their rights.

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

A court has the authority to fix a period for performance if there is just cause for doing so.

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

If a third person has possession of the subject matter in good faith, rescission can still be pursued by the injured party.

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

Rescission can be granted for slight or casual breaches of contract.

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

The determination of whether a breach is substantial depends solely on the percentage of the amount not paid.

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

The right to rescind can be waived either expressly or impliedly.

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

The remedy for non-payment after waiving the right to rescind is to recover the balance due.

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

An obligation subject to a resolutory condition allows the debtor to keep what they received until the condition is fulfilled.

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

The effects of an obligation to give subject to a suspensive condition do not retroact to the day it was constituted.

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

The courts have complete authority to decide the retroactive effect of a suspensive condition in obligations to do or not to do.

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

Physical loss occurs when an object is illegal or goes out of commerce.

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

Civil loss can occur even if the existence of a property is known but cannot be recovered due to legal reasons.

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

In case of loss without the debtor's fault, the debtor is required to fulfill the obligation despite the loss.

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

Legal loss occurs when an object perishes, such as a house burning down.

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

An obligation to do requires the debtor to perform an action upon the fulfillment of a suspensive condition, but the retroactivity is not strictly defined.

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

Flashcards

Conditional Obligation

An obligation where the consequences are dependent on a specific event or condition happening.

Obligation with a Period

An obligation where the consequences are dependent on a specific timeframe.

Alternative Obligation

An obligation where the debtor can choose from different ways to fulfill their obligation.

Facultative Obligation

An obligation where the debtor can choose to fulfill it in a different way than originally agreed upon.

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Joint Obligation

An obligation where several debtors are each responsible for a portion of the whole debt.

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Solidary Obligation

An obligation where each debtor is fully responsible for the entire debt, even if there are multiple debtors.

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Divisible Obligation

An obligation where the performance can be fulfilled in parts.

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Indivisible Obligation

An obligation where the performance cannot be fulfilled in parts, it must be completed in full.

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Suspensive Condition

A condition that must be fulfilled before an obligation becomes effective. The obligation only becomes enforceable after the condition is met.

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Resolutory Condition

A condition that ends an obligation. The obligation is valid until the condition is fulfilled, after which it ceases to exist.

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Retroactive Effects

The effects of a fulfilled suspensive condition apply retroactively, meaning they take effect from the moment the obligation was created.

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Obligation to Give

An obligation to transfer ownership of a specific thing. It becomes enforceable upon fulfilling the suspensive condition.

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Obligation to Do or Not to Do

An obligation to perform a specific action or refrain from an action. The retroactive effect is determined by the court based on the intent of the parties.

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Physical Loss

The complete destruction of a thing, rendering it useless.

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Legal Loss

The removal of a thing from commerce, making it impossible to buy, sell, or use legally.

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Civil Loss

The disappearance of a thing, making its existence unknown or unrecoverable.

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Civil Obligation

An obligation that can be enforced in a court of law. It grants the right holder the power to seek legal action to ensure its fulfillment.

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Determinate Obligation

A thing that is specifically identified or separated from others in its class.

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Legal Obligation

An obligation that arises directly from the law itself, not from agreements.

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Natural Obligation

An obligation that does not grant a right to legal action for enforcement. It is based on moral or natural principles.

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Penal Obligation

An obligation that involves a penalty or consequence imposed for not fulfilling the main obligation.

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Generic Obligation

An obligation that refers to a general class of things, not a specific item.

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Rescission of Reciprocal Obligations

The right of an injured party in a contract to choose between ending the contract or demanding its fulfillment, along with seeking damages for the breach.

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Breach of Obligation

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the contract.

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First Infractor Known

When one party breaches a contract, and the other party also breaches in response, the liability of the first breaching party may be reduced depending on the circumstances.

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First Infractor Undetermined

If both parties breach a contract and it's impossible to determine who breached first, the contract is deemed extinguished, and both parties bear their own losses.

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Contract Extinguished

When both parties breach a contract and it's impossible to determine who breached first, the court will not enforce the contract, leaving both parties to bear their own losses.

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Extinguished Obligation Due to Fortuitous Event

A situation where the debtor is released from their obligation due to an event outside of their control, like natural disasters or unforeseen circumstances.

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Loss of Object Due to Debtor's Fault

The debtor is responsible for damages if the loss of the object is due to their negligence or fault.

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Deterioration of Object Without Debtor's Fault

A reduction in the value of the object without the debtor's fault.

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Deterioration of Object Due to Debtor's Fault

The creditor can choose to terminate the contract and receive compensation or demand the object in its deteriorated state with compensation for the difference in value.

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Improvement of Object

If the object's value increases during the obligation period due to natural causes, time, or the debtor's expenses, the benefit belongs to the creditor.

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Improvement at Debtor's Expense

The debtor has rights similar to a usufructuary when they improve the object at their own expense.

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Rescission

A legal remedy that restores parties to their original positions before a contract was made, often used to correct damages caused by a valid contract.

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Debtor's Liability for Value Changes

A debtor is liable for the performance of their obligations, even if the value of the object changes due to external factors, as long as it's not due to a fortuitous event.

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What is Rescission?

Rescission is a legal remedy that allows a party to cancel a contract due to a breach by the other party. However, this right is not absolute and must be exercised through legal channels.

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Who Decides on Rescission?

To pursue rescission, the injured party must file a lawsuit in court to officially request the contract's cancellation. They cannot simply decide to terminate the contract on their own.

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Can the Court Give Time to Fix the Breach?

The court can allow a period for the defaulting party to fulfill their obligation, especially if the breach was unintentional or extenuating circumstances exist.

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What if a Third Party Owns the Item?

If the subject matter of the contract is in the possession of an innocent third party, rescission may not be available. The injured party can seek damages from the person who transferred the item.

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What Kind of Breach is Necessary for Rescission?

Rescission is generally not granted for minor or insignificant breaches of contract. The breach needs to be substantial and affect the core purpose of the agreement.

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Can You Give Up Your Right to Rescission?

The right to rescind can be waived, either explicitly through words or implicitly through actions. Accepting payment after a breach could be seen as waiving the right to rescind.

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What Happens After Rescission?

When rescission occurs, both parties should return what they received under the contract. This is known as mutual restitution.

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Is Rescission Guaranteed?

The right to rescind can be contested and may be subject to review by the courts.

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Study Notes

Assignment No. 3

  • Pure Obligation: A pure obligation is not subject to any condition, no specific date is mentioned for fulfillment, and is immediately demandable.

  • Conditional Obligation: A conditional obligation's consequences depend on fulfillment of a condition.

  • Obligation with a Period: An obligation with a period has consequences dependent on the expiration of a specified period or term.

  • Alternative Obligation: An obligation where various prestations are due, but the performance of only one is sufficient, typically chosen by the debtor.

  • Facultative Obligation: An obligation where only one prestation is agreed upon, but the obligor may offer another in substitution.

  • Joint Obligation: A joint obligation where the entire obligation is proportionally paid by debtors and demanded proportionally by creditors.

  • Solidary Obligation: Each debtor is bound to fulfill the entire obligation, and each creditor has the right to demand full compliance.

  • Divisible Obligation: An obligation's object can be partially fulfilled.

  • Indivisible Obligation: An obligation's object cannot be divided and must be fully fulfilled at once.

  • Obligation with a Penal Clause: An accessory obligation where a previously agreed-upon penalty is paid for breach of the main obligation.

Bilateral / Unilateral Obligations

  • Unilateral Obligation: Only one party is obligated to fulfill a prestation.

  • Bilateral Obligation: Both parties are mutually obligated to each other, acting as both debtors and creditors. Bilateral obligations can be reciprocal or non-reciprocal.

  • Real Obligation: Obligation to deliver a specific object

  • Personal Obligation: Obligation to perform a specific act.

  • Determinate Obligation: An obligation to deliver a specifically designated, identifiable object.

  • Generic Obligation: An obligation to deliver an object referring to a class or category, which is not specifically identified.

  • Civil Obligation: Gives a right of action in court to enforce fulfillment.

  • Natural Obligation: Does not give a right of action in court to enforce fulfillment, but its non-performance is nonetheless morally binding.

  • Legal Obligation: Arises from law and is not assumed without explicit legal stipulation.

  • Conventional Obligation: Arises from agreements between parties, including contracts.

  • Penal Obligation: Imposes a penalty for non-compliance with a principal obligation.

Condition and Its Types

  • Condition: A future and uncertain event that affects the effectivity or extinguishment of an obligation. It must be both future and uncertain.

  • Suspensive Condition: An uncertain future event whose fulfillment gives rise to an obligation.

  • Resolutory Condition: An uncertain future event whose fulfillment puts an end to an existing obligation, extinguishing it.

  • Effects of Suspensive Condition: fulfillment results in the obligation arising, while non-fulfillment terminates the obligation's conditional nature.

  • Effects of Resolutory Condition: fulfillment of the condition extinguishes the existing obligation.

Loss, Deterioration, Improvement

  • Loss: Physical loss, legal loss (e.g., a thing going out of commerce or being expropriated), or civil loss (e.g., a thing's existence being unknown).

  • Deterioration: reduction in value of a thing without the debtor's fault.

  • Improvement of Thing: increase in value due to natural forces or the debtor's actions.

Rescission in Obligations

  • Limitations on Rescission: Rescission of a contract may be limited in cases of judicial action, if there is a just cause for a period of compliance, when a third party has held the object of the contract, when the violation is slight, or if the waiver rights are waived. Contractual agreements regarding an arbitration clause are valid.

  • Waiver of Right: The right to rescind can be waived, expressly or impliedly.

  • Contract to Sell: In a contract to sell, the payment is a condition precedent to transferring ownership.

  • Sales of Real Property/Installments: Specific legal provisions often govern sales of real property with installment payments.

  • Judicial Compromise: A judicial compromise has special rules regarding rescission.

  • Arbitration Clause: A valid arbitration clause can limit rescission.

Breach of Obligation by Two Parties

  • First-Infractor Known: If one party violates the contract, and the other party also violates the contract (after the first party's breach), the first party's liability is often proportionally reduced in this case.

  • First Infractor Unknown: If both parties are in breach, but it's uncertain who breached first, each party is responsible for their own damages, and the contract is deemed extinguished.

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Assignment No. 3 PDF

Description

This quiz covers various types of obligations including pure, conditional, and alternative obligations. It will help you understand how these obligations differ based on conditions, periods, and the nature of performance required. Test your knowledge on the definitions and implications of each type.

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