Obligations And Contracts PDF

Obligations and Contracts: I. Nature and Effects of Obligations A. Obligation to Give ​ Types of Property: ○​ Determinate (Specific): Clearly identified, cannot be replaced (e.g., "This ballpen"). ○​ Generic (Indeterminate): Part of a class, can be replaced (e.g., "...

Obligations and Contracts: I. Nature and Effects of Obligations A. Obligation to Give ​ Types of Property: ○​ Determinate (Specific): Clearly identified, cannot be replaced (e.g., "This ballpen"). ○​ Generic (Indeterminate): Part of a class, can be replaced (e.g., "A car"). ​ Rule: "Genus nunquam perit" (A generic thing never perishes). ​ Included in Delivery: Fruits (natural, industrial, civil), accessions, accessories. ​ Remedies for Non-Performance: Demand delivery, or creditor may hire someone else at debtor’s expense. B. Obligation to Do ​ Definition: Requires a person to perform an act (e.g., painting a house). ​ Protection: Constitutional right against involuntary servitude. ​ Remedies for Non-Performance: Demand performance, hire another person at debtor’s expense, demand damages. C. Obligation Not to Do ​ Definition: A duty to refrain from an act (e.g., agreement not to build a tall building). ​ Remedies for Violation: Demand undoing, demand damages, court may order another person to undo. II. Breach of Obligation & Legal Consequences Performance of Obligation​ Irregular and Incomplete Performance ​ Irregular Performance: Obligation was performed but not in accordance with agreed terms. ○​ Example: Delivering 1 kg of pepper mixed with soil instead of pure pepper. ​ Incomplete Performance: Obligation was partially performed but not fully completed. ○​ Example: Delivering only 500g of pepper instead of 1 kg. ​ Total Non Performance: There is no action/performance at all.  ✅ ​ Remedies: ✅ ○​ Creditor may demand proper performance. ○​ Claim damages for losses incurred. A. Fraud (Dolo) – Intentional Deception Type Definition Remedy Causal Fraud Used to trick someone into agreeing ✅ Annul contract, claim to a contract. damages. Incidental Fraud during performance. ✅ Demand correct Fraud performance, damages. B. Negligence (Culpa) – Failure to Exercise Proper Care Type Definition Remedy Culpa Contractual Negligence in a contract. ✅ Liable for damages. Culpa Criminal Negligence causes a crime. ✅ Fine, imprisonment, damages. Culpa Aquiliana Harm caused without a ✅ Liable for damages. contract. III.Delay (Mora) – "No Demand, No Delay" Rule ​ General Rule: "No Demand, No Delay" ​ Exceptions (Automatic Default): Law requires it, agreement states it, time is essential, performance is impossible, one party already performed. Types of Default & Remedies: Type Definition Remedy Mora Solvendi Debtor fails to perform on time ✅ Demand performance, after demand. damages, interest. Mora Accipiendi Creditor refuses to accept the ✅ Creditor liable for damages. debtor's performance. Compensatio Both debtor and creditor fail to ❌ No one can demand Morae perform. anything. A. Fortuitous Events (Caso Fortuito) ​ Uncontrollable events (e.g., disasters, war, fire). ​ Rule: If a specific thing is lost, obligation is extinguished. If a generic thing is lost, it must still be delivered. B. Usurious Transactions (Excessive Interest) ​ Charging of interest beyond legal limit ​ Interest stipulation must be WRITTEN in order to be valid. ​ The court has the right to regard an interest as VOID if deemed unreasonable. ​ The court decides on a case to case basis. ​ The court can lower the interest rate to a reasonable figure, and if lowered, the debtor is exempted from the original rate and would only need to pay according to the interest rate deemed reasonable by the court. The debtor is exempted in paying the excess/difference between the original rate and the lowered rate of the court. ​ ORAL OBLIGATION IS VALID BUT INTEREST STIPULATION MUST BE WRITTEN TO BE VALID