BLAW Midterms PDF

**KINDS OF OBLIGATIONS** \- Primary Classifications of Obligations 1. Pure and conditional obligation 2. 2\. Obligation with a Period 3. Alternative and Facultative Obligation 4. Joint and Solidary Obligation 4. Divisible and Indivisible obligation 6\. Obligations with a penal caus...

**KINDS OF OBLIGATIONS** \- Primary Classifications of Obligations 1. Pure and conditional obligation 2. 2\. Obligation with a Period 3. Alternative and Facultative Obligation 4. Joint and Solidary Obligation 4. Divisible and Indivisible obligation 6\. Obligations with a penal cause ** Pure & conditional** 1\. **PURE OBLIGATION** is an obligation whose performance does not depend on any and is not subject to any specific time period for fulfillment. It can also be demandable at once. **CONDITION**-future and uncertain event, **PERIOD** - future and certain event; aka \"term **= CONDITIONAL OBLIGATION**- is an obligation whose performance depend upon a condition or period →**CLASSIFICATION OF CONDITION** **1. AS TO EFFECT** **a. Suspensive Condition**-condition wherein the fulfillment of obligation brings about the acqui- sition of right. **b. Resolutory condition**-condition wherein the fulfillment of obligation brings about the extinguishment of right. for terminated) **2. AS TO ORIGIN** **a. Potestative Condition** is one by which the fulfillments depends only to one of the parties \- if the condition depends up on the will or discretion; **-\>DEBTOR -OBLI IS VOID** **-\>CREDITOR - OBLI IS VALID** **b. Casual Condition** the fulfillment of the condition depends up on chance or upon the will of a third person. **C.Mixed condition** - the fulfillment of the condition depends upon the will of one party and depends upon chance or will of a 3rd person. -\> potestative + casual = mixed **3.AS TO POSSIBILITY.** **a. Possible condition** - conditions that are physically and legally feasible -doesn\'t contravene the laws of nature i public policy or other legal restrictions **b. Impossible condition** -physically & legally impossible **physically** - literally impossible, contrary to law of nature **legally**-contrary to law, morals, public order and public policy \*Effect of impossible condition what happens to obligation → the condition is void but the whole obligation is valid **4. AS TO MODE** **a. Positive condition** performance of an acti to do or to give **b. Negative condition** - omission (non-performance) of an act, not to do. **5. AS TO DIVISIBILITY** **a. Divisible condition** susceptible of partial fulfillment **b. Indivisible condition**- not susceptible of partial fulfillment / fulfilled entirely at once. **6. As to NUMBERS** **a. Conjuctive** there are several conditions, all must be fulfilled and realized **b. Alternative-** there are several conditions and only. one must be fulfilled and realized A.\> if there is 3 conditions; 2 can be fulfilled (as long as not all conditions are filled) **Conjunctive Condition = and** **Alternative Condition = or** **7. AS TO FORM** **a. Implied condition-** not written or expressed but exist. by default as per law **b. Express condition**: clearly stated, can be written or not When- certain If- Uncertain **Article 1193 of civil code** Obligations for whose fulfillment a day certain has been fixed shall be demandable only when that day comes **Obligation w/ period or term.** **Lost** - when it perishes or disappear such that its existence is unknown or if known, it can not be recovered there is **loss, DETERIORATION OR IMPROVEMENT** before the arrival of the date of obligation **\* Deterioratio**n - lower value for the object **\*Improvemen**t - object / prestation better **3 TERMS OF DAMAGE** **Injury, Damage, Damages. (Recall)** **KINDS OF EXPENSES** 1. **Useful** - expenses that add value to a property but are not strictly recessary for its preservation. **2. Necessary** expenses essential for the preservation or. maintenance of an object or property. **3. Luxurious** - Expenses made for the sole purpose of luxury or decoration, and they do not add functional value to the property. **OBLIGATION WITH A PERIOD** **-** an obligation whose fulfillment or extinguishment depends upon a future and certain event (period) **Classifications / types of Periods** **1. Expressed period** - this is a period expliatly stated in the terms of the obligation or contract. The exact date, time, or event by which the obligation must be fulfilled is clearly stated. **2. Implied Period**- a time frame for fulfillingan obligation that is not directly stated but is understood basedon the situation or the nature of the task ** THIRD PARTY AGREEMENTS / 2 TERMS OF GUARANTY** 1\. Suretyship - directly and primary liable along- side the principal debtor. If the debtor defaults the creditor can immediately demand payment from the surety without first trying to collect from the debtor. The surety\'s liability is as immediate as the debtor\'s. 2\. Guaranty - the guarantor is secondarily liable, meaning the creditor must first attempt to collect from the principal debtor. Only if the debtor fails the creditor turn to the guaranty the guarantor\'s obligation is thus dependent on the debtor\'s failure to pay. **ALTERNATIVE AND FACULTATIVE OBLIGATION** = Kinds of obligation according to object. **1.SIMPLE OBLIGATION** - obligation where there is only one subject **2. COMPOUND OBLIGATION**- obligation where there are 2 or more objects or prestations **(ALTERNATIVE OBLIGATION) kinds of** **1∙ Conjunctive Obligation** - obligation where there are 2 or more objects and all of them is due; and 2. **Distributive Obligation**- there are 2 or more objects but only one of them is due; or **Kinds of DISTRIBUTIVE OBLIGATION** **1. Alternative obligation** - \"and\" or \"or\" **2. Facultative obligation** - obligation where only one object is due but the debtor may substitute another object → Substitution → if object is impossible or bost, there can be a substitute object → substitute object is determined / agreed Upon by parties \*\*[RIGHT OF CHOICE], as a rule, given to [DEBTOR] except, may be given to the Creditor if stipulated \*When does the choice produce its effect? choice has no effect until from the time it has been communicated; there will be demandability it it is agreed upon what is to be given. **JOINT AND SOLIDARY OBLIGATION** other Terms: 1.Joint or Jointly 2\. Conjoint 3⋅ Mancomunada (simple) 4\. Pro rata 5\. Proportionate 6\. Joint and several obligations 7\. Jointly and severally **JOINT OBLIGATION** - one in which each debtor is liable only for a proportionate part of the debt and the creditor is entitled to demand only a proportionate part of the credit from each debtor **SOLIDARY OBLIGATION**- obligation where each one of the debtors is bound to render and / or each of the creditor has the right to demand compliance to debtors. **\*Joint Obligation** - separate / share on the liability towards a particular obligation **\*** **Solidary obligation** - each creditor may collect from any of the debtor \- there can only be solidary liability if it is expressed or stipulated -only applicable when there is multiple Debtor or Creditor **CONTRACT OF SURETY** **CONTRACT OF GUARANTY** **SURETY VS GUARANTY** **SOLIDARY JOINT** **= DIVISIBLE AND INDIVISIBLE OBLIGATION =** **Divisible obligation -** obligation is susceptible to Partial fulfillment **INDIVISIBLE Obligation -** Obligation is not susceptible to partial fulfillment **= OBLIGATION WITH A PENAL CLAUSE =** \- obligation where particularly the penalties, liabilities, consequences for failure to comply. \- a contract that includes penalty that must be paid by one party if they breach the contract If penal clause is impossible, as if there is no penal clause at all, though the obligation is still valid. **BLAW Notes** **DEFINE OBLIGATION** -Under the Civil Code, Article 1156: -An \"obligation\" is defined as a juridical necessity/ to give/, to do/, or not to do/ -It comes from the Latin word *"obligare"* → "**to bind"** -It is a legal bond or tie by virtue/ of which one party is bound to fulfill a duty/ in favor of another. -The obligation can involve/ giving a thing/, performing a specific act/, or refraining from an act. -In essence/, it is a duty imposed by law/ that, if not fulfilled/, can be enforced by the courts/, which may result in the debtor/ being held liable for damages. **4 ELEMENTS OF OBLIGATION** 1\. **Juridical Tie**/ Legal Tie/ Vinculum Juris 2\. **Subject Matter** - *object/prestation* a\. Licit (Legal) b\. Possible c\. Pecuniary Value (Value for Money) d\. Determinate/Determinable 3\. **Active Subject** (*Creditor/Obligee* - receiver) -Holder of the Right -The one who can demand performance 4\. **Passive Subject** (*Debtor/Obligor* - giver) -The person bound to perform **PS**: **Right** - is a claim or title in an interest in anything whatsoever that is enforceable by law **5 SOURCES OF OBLIGATION** 1\. **Laws** - rule of conduct, just, obligatory, propagated by legitimate, and of common observance and benefits **Special Laws** - only particular topics are discussed **General Laws** - civil code, labor code, etc. **PS:** Special Laws will always prevail against General Laws 2\. **Contract** 3 Essential Elements/Requisites (COC) *Consent* - meeting of the minds *Object* *Cause of the obligation* - \*established\* 3\. **Act or Omission punished by law**/ **delict**/ **crime** 4\. **Quasi Contract** 5\. **Quasi Delict** **COURT** **Plaintiff** (Respondent) **Defendant** (Accused) **PS**: **Cause of Action** - the act or omission that violates the right of another **Civil Action** - is one by which a party sues another for the enforcement or the protection of a right or the prevention or redress of a wrong **KINDS OF PERSONS** 1\. **Natural** - good, not good, both 2\. **Juridical** - persons recognized by law **DEFINE CONTRACT** Under the Civil Code, Article 1305: -A "contract" is the meeting of minds/ between two persons/ whereby one binds himself/, with respect to the other/, to give something or to render some service. -A \"contract\" is an agreement/ between two or more parties/ that creates obligations enforceable by law. -It is the source of obligations/ when parties consent to create mutual obligations,/ such as in the case/ where one party agrees to provide a service or product/, and the other party agrees to pay for it. -The contract forms the juridical tie/ that binds the parties to the obligation/, and if one party fails to fulfill their end of the agreement/, it may give rise to a cause of action/ for breach of contract. **3 ELEMENTS/REQUISITES OF CONTRACT (COC)** 1\. **Consent** - meeting of the minds 2\. **Object** - 3\. **Cause of the obligation** - established **QUASI-CONTRACT** -As if there is an agreement by the parties, but in reality, there is not certain lawful voluntary and unilateral acts give rise to juridical relations of contracts to the end that no person shall be unjustly enriched or benefited at the expense of another **2 Principal Forms of Quasi-Contract** 1\. **Negotiorum Gestio** - voluntary or "not discussed" 2\. **Solutio Indebiti** - if something is received, when there is no right to demand it, and it was unduly delivered through mistake, there is an obligation to return it. **ACT OR OMISSION PUNISHABLE BY LAW** \- crime, felony, delict **Criminal Action** - imprisonment **Civil Action** - Payment if he is criminally liable by felony, he is also civically liable **3 Civil Liabilities** 1\. **Restitution/Restoration** -Restoring something to its original state after damage or loss. 2\. **Reparation** -Compensation or payment to repair the harm caused. 3\. **Indemnification for consequential damages** -Payment for damages caused to third parties as a result of an action. **2 Classification of Obligations** **As to Nature** 1\. **Personal Obligation** - to do and not to do 2\. **Real Obligation** - to give; you must deliver something **As to Performance** 1\. **Positive Obligation** - obligation to give and to do 2\. **Negative Obligation** - obligation not to do **As to the Person Obliged** 1\. **Unilateral Obligation** - only one party is bound 2\. **Bilateral Obligation**- both parties are bound **QUASI DELICT** -"Negligence" \- Under Article 2176 of the Civil Code, whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damages caused. **Elements of Negligence** 1\. the existence of fault on the part of the dependant 2\. there must be damage suffered or incurred by the plaintiff 3\. there is a relation of cause and effect between the fault of the dependant and the damage suffered by the plaintiff - (causal relation) **PS**: "resulting in" **Proximate cause** -is that cause which, in a natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result would not have occurred. **Obligations of the debtor in real obligations** **What is delivery?** -Delivery refers to the act of giving or yielding possession or control of something. -Effect: transfer of ownership **Two kinds of delivery:** 1\. **Actual delivery** -- There is an act of giving the real and immediate possession of the item. 2\. **Constructive delivery** -- An act that amounts to a transfer of title by authorization of law when actual transfer is impractical or impossible. \- a **specific or determinate thing** is one that is particularly designated or physically segregated from others of the same class \- a **generic or indeterminate thing** refers only to a class or the genus to which it pertains and cannot be pointed out with particularity. **2 KINDS OF DILIGENCE** 1. **ordinary diligence** (good father of a family) \- refers to the care that is expected from a reasonably prudent person under similar circumstances. It is the standard of care that a person must exercise in fulfilling obligations, as stated in **Article 1173 of the Civil Code of the** **Philippines** 2. **extraordinary diligence** -extreme care that a person of unusual precedence exercises to secure rights or property applies to: **Common Carriers (Public Transport Vehicle)** **2 kinds of properties** **Accession** - Properties that are incorporated into or attached to the principal thing, or are produced by it. **Accessories** - Properties used to embellish, support, or preserve the principal thing but are not incorporated or attached to it. **- injury vs damage vs damages** **injury** - the invasion of a legal right **damage** - is the loss resulting from the injury **damages** - is the compensation awarded **2 instances when ordinary diligence does not apply:** 1\. when the law requires another standard of care 2\. when the parties stipulate another standard of care. **stipulation** - agreement between two parties **Rights of The Creditor in Real Obligations** **Specific Performance** \- is a civil charge; legally forcing someone to do something **Rescission** -cancellation of contract \- only applicable to reciprocal obligation - ex. contract of sale **3 Different kinds of fruits.** -The fruits mentioned by the law refer to natural, industrial, and civil fruits: 1\. **Natural fruits** are the spontaneous products of the soil, and the young and other products of animals, e.g., grass; all trees and plants on lands produced without the intervention of human labor. 2\. **Industrial fruits** are those produced by lands of any kind through cultivation or labor, e.g., sugar cane; vegetables; rice; and all products of lands brought about by reason of human labor 3\. **Civil fruits** are those derived by virtue of a juridical relation, e.g., rents of buildings, price of leases of lands and other property and the amount of perpetual or life annuities or other similar income. a breach occurs when one party fails to fulfill their contractual duties or obligations as agreed, either by not performing on time, not performing in accordance with the terms, or not performing at all **-Special laws (ex. VAWC, RA)** **- General Laws (Civil code,labor code)** \--Special laws will prevail over general laws **BREACH** - fails to fulfill the contractual obligation **2 Kinds of Breaches** 1. **Voluntary breach** \- Delay/Default/Mora \- Fraud/Dolo \- Negligence/culpa \- Breach through contravention of the tenor of the obligation 2. **Involuntary Breach** 1\. **Voluntary Breach**: Refers to breaches of obligations where the obligor is guilty of either fraud, negligence, delay, or contravention of the terms and conditions stipulated in the obligation. This type of breach occurs when the debtor or obligor will fully or negligently fails to fulfill their obligations. 2\. **Involuntary Breach**: \- Involuntary breaches occur due to fortuitous events or force majeure, where the failure to comply with the obligation is beyond the control of the obligor and without fault on their part. **4 Kinds of Voluntary Breaches:** 1\. **Delay (Default or Mora)**: \- Delay in the performance of an obligation is legally referred to as \"mora.\" It can take the form of: 1. **Mora Solvendi**: Delay on the part of the debtor in fulfilling the obligation. 2. **Mora Accipiendi**: Delay on the part of the creditor in accepting the performance. 3. **Compensatio Morae**: both parties committed delay for unjustifiable reason. "As if there is no delay" **Requisites for Delay** 1\. Demandable & Liquidated 2\. Delay Performance by Debtor 3\. Judicial (involves the court) or extrajudicial (does not involve the court) demand **Judicial or extrajudicial demand** Demand by: \- Stipulated/Law \- Nature and circumstances of the obligation \- Demand is useless because the obligation is impossible to perform \- PS: There is no delay when there is no demand 2\. **Fraud (Dolo)**: -includes all kinds of deception whether through insidious machination, manipulation, concealment, or misrepresentation that would lead an ordinary prudent person to commit error after which they would suffer harm or loss as a result of relying on the misleading information or actions presented. 1. **Dolo Causante**: acts or omissions made for the purpose of entering into contracts 2. **Dolo Incidente**: Fraud committed during the performance of an existing obligation (there is already a contract); after the perfection of contract when the deception was made 3\. **Negligence (Culpa)**: Negligence is the lack of care as required by the diligence provided by a reasonable person in similar circumstances. It can be: 1. **Contractual Negligence (Culpa Contractual)**: Negligence in contracts that leads to their breach. 2. **Civil Negligence (Culpa Aquiliana)**: Negligence that gives rise to obligations even without a pre-existing contract (quasi-delict). 3. **Criminal Negligence (Culpa Criminal)**: Negligence that results in a criminal offense. 4\. **Breach Through Contravention of the Tenor of the Obligation**: \- This is a [violation of the terms and conditions stipulated in the obligation.] The obligor\'s unilateral act of contravening these terms, without a valid excuse, makes them liable for damages. **Contravention** means acting against or violating a rule, law, or agreement. **Tenor** refers to the general meaning, intent, or main terms of a document or agreement. PS: Fortuitous Events (exempted to liabilities), Exceptions: **Exceptions to Fortuitous Events** 1\. Liability is provided by Law 2\. Stipulated by the parties 3\. Assumption of risk (ex. Insurance contracts) **Key Terms** **Mitigate:** lessen **Aggravate:** make it more serious **Fortuitous Event Definition** \- A fortuitous event is any extraordinary event which cannot be foreseen, or which, though foreseen, is inevitable. It is an event which is either impossible to foresee or impossible to avoid. The essence of a fortuitous event is a happening independent of the obligor\'s will, which makes the normal fulfillment of the obligation impossible. **Fortuitous Event vs. Force Majeure** 1\. **Acts of man (Fortuitous Event):** Events independent of the obligor\'s will but not of other human wills, e.g., war, fire, robbery, murder, insurrection. 2\. **Acts of God (Force Majeure):** Events totally independent of any human will, e.g., earthquake, flood, rain, shipwreck, lightning, volcanic eruption. In Philippine law, fortuitous events and force majeure are treated identically in exempting an obligor from liability. Both are independent of the obligor\'s will. **Kinds of Fortuitous Events** In speaking of the contract of lease, our Civil Code distinguishes between [two kinds of fortuitous events: ] 1\. **Ordinary fortuitous events:** Common events that contracting parties could reasonably foresee (e.g., rain) 2\. **Extraordinary fortuitous events:** Uncommon events that contracting parties could not have reasonably foreseen (e.g., earthquake, fire, war, pestilence, unusual flood) **Requisites of a Fortuitous Event** -Whether an act of man or an act of God, to constitute a fortuitous event, it is essential that: 1\. The event must be independent of the human will or at least of the obligor\'s will 2\. The event could not be foreseen (unforeseeable), or if it could be foreseen, must have been impossible to avoid (unavoidable) 3\. The event must be of such a character as to render it impossible for the obligor to comply with his obligation in a normal manner 4\. The obligor must be free from any participation in, or the aggravation of the injury to the obligee.