Professional Documents
Culture Documents
sanction/specific
performance. The obligatory element in an
obligation.
Sources of Obligation
1. Law
2. Contracts culpa contractual
3. Quasi-contracts no contract. Based on
unjust
enrichment
(Solutio
Indebiti
and
Negotiorum Gestio)
4. Crimes/delicts culpa criminal
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(joint,
several,
in
1. Parties so Stipulate.
2. Law provides divisibility.
3. Nature of the obligation necessarily entails
performance in parts. (Ex: Art. 1225, par 2)
Obligations with a penal clause (penalty
for non-performance)
This is especially
projects.
common
in
construction
Purpose:
1. To ensure performance of obligation.
2. Substitutes for the indemnity and
damages or interests awarded.
3. Penalizes the debtor.
for
Payment
Loss
Condonation
Confusion/merger
Compensation/set-off
Novation
What is tender?
It is the manifestation made by debtor of his
willingness/desire and ability to make immediate
payment.
When prior
(TRIAL)
tender
is
dispensed
with
Petition for
consignation.
Payment
alone
does
not
extinguish obligation.
Special Rule on Money Debts Made in the
currency stipulated. If not possible, whatever is
legal tender in the Philippines.
Rule on inflation or deflation it must be
extraordinary inflation or deflation. (not the
regular/usual rise and fall of the value of the
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of
Condonation/Remission
Requisites:
1. Parties are mutually debtors and creditors of
each other.
2. Both debts consist of sum of money, or
fungible goods of the same kind/quality.
3. The two debts are due.
4. They be liquidated or demandable.
5. Neither of the debts must be garnished.
6. Must not be prohibited by law.
Provision on Assignment of Credits (Art.
1285)
- The consent of the debtor is not required. Only
that of the old creditor and the new creditor.
Illustration:
Y owes debt to X (Credit 1). X owes debt to Y
(Credit 2). In any other case, when both debts
fall due, there is automatic compensation. This
is not the concern of Art. 1285.
But now before legal compensation takes place,
X assigns to A Credit 1. So for Credit 1, A
becomes the new creditor. There appears to be
3 possibilities:
a. The assignment was with Ys consent. (A goes
against Y when the assigned credit becomes
due. Y cannot set up against A Credit 2 because
Y consented to the assignment.
b. The assignment was with Ys knowledge, but
without his consent. A goes against Y. Y can set
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6. Novation
Requisites of Novation (PANE)
1. Previous valid obligation.
2. Agreement by the parties to the new
obligation.
3. Extinguishment of the old obligation. (This is
actually a consequence.)
4. Validity of New valid obligation.
Novation arises when:
1. There is a change in the object or principal
conditions. (Real Novation)
2. There is a change in the debtor. (Personal
Novation)
3. Subrogating a third person to the rights of the
creditor.
Types of Novation
1 Subjective/Personal Novation change in
one or more parties. (must have consent of the
parties)
a. Active subjective change in the person of
the creditor.
b. Passive subjective change in the person of
the debtor. (EXPROMISSION AND DELEGACION)
Expromission initiated by the new debtor.
The consent of the creditor and the new debtor
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Consent
Subject Matter
Cause
Delivery in real contracts
Formality in some contracts
Natural Requirements
Those incorporated by law into the
contract. (Ex: Warranties in Sales against
eviction, of fitness, etc., Right to resolve in
reciprocal contracts.
Accidental Requirements
Need to be stipulated by the parties. (Ex:
Purchase price in sales, Conditions for
performance of the contract.)
Classification of Contracts
According to perfection
1. Consensual perfected by mere consent.
(Ex: Sales)
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where
there
is
vitiation
of
1. Mistake of fact
2. Fraud it must be the dolo causante or one
that has a decisive effect on the giving of
consent.
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Requisites:
1. Employed by one party against the other.
2. Induced the other to enter into the contract.
3. It must have been serious.
Dolo Incidente Does not annul the contract
because it did not induce the giving of consent.
The consequence of incidental fraud is merely
damages.
Dolus Bonus tolerable fraud and does not
lead to damages. (Usual exaggeration in trade,
when the other party had an opportunity to
know the facts. Art. 1340)
3. Violence Requisites:
1. Physical force is irresistible.
2. It is the determining factor to give consent.
4. Intimidation Requisites:
1. Threat is determining factor to give consent.
2. Threat is unjust and unlawful.
5. Undue Influence It must be influence that
deprives one of freedom.
Object
Object must be within the commerce of man,
licit and possible at the time of perfection.
Causa (Cause)
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Form
GR: No form required.
XPN: Required in the following:
1. Donation of property
2. Sale of large cattle
3. Antichresis (requires statement of the
principal and interest in writing.)
4.
Partnership
where
real
property
is
contributed.
5. Interests in mutuum. (Must be expressly
stipulated.
6. Sale of land by an agent. (With SPA)
7. Chattel Mortgage
8. Stipulation limiting common carriers duty of
extraordinary diligence to ordinary diligence.
When form is not required for validity but
for purposes of registration
Those in Art. 1358
1. Acts and contracts for real rights over
immovable property. EXCEPT: Sale of real
property or interest therein, which is governed
by the Statute of Frauds.
2.
Cession,
repudiation,
renunciation
or
hereditary rights or those in CPG.
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