Professional Documents
Culture Documents
A. Course Overview
B. Common Law Tradition and the Civil Law Tradition
PART ONE: OBLIGATIONS
A. General Provisions
1. Definition (Article 1156, Civil Code)
2. Elements
a. Active Subject
b. Passive Subject
c. Object or Prestation
d. Efficient Cause or Juridical Tie
3. Natural Obligations
a. Definition (Art. 1423, CC)
b. Examples (Articles 1424 to 1430)
c. Difference between Natural and Civil Obligation (Art. 1423)
d. Distinguished from moral obligations
e. Conversion to Civil Obligation
by novation
by ratification
4. Sources of Obligations (Art. 1157)
a. Law (Art. 1158)
b. Contracts (Art. 1159, 1305)
c. Quasicontracts (Art. 1160, 2142)
Kinds:
i. Negotiorum gestio (Art. 2144)
ii. Solutio indebiti (Art. 2154)
iii. Others (Art. 2164 to 2175)
d. Delicts or Crime (Art. 1161)
e. Quasidelicts (Art. 1162, 2176)
Distinction between crimes and quasidelicts
Vicarious liability (Art. 2180, Art. 218219, Family Code)
Civil liability arising from crime (Art. 1161; Rule 111, Revised Rules of Criminal Procedure)
5. Classification of Obligations
a. Pure and Conditional Obligations (Art. 11791192)
b. With a Period or a Term (Art. 11931198)
c. Alternative and Facultative (Art. 11991206)
d. Joint and Solidary (Art. 12071222)
e. Divisible and Indivisible (Art. 12231225)
f. With a Penal Clause (Art. 12261230)
B. Nature and Effects of Obligations
1. Kinds of Prestation
a. To give
i. specific thing
to preserve the thing (Art. 1163)
to deliver the accessions and accessories (Art 1166)
to deliver the fruits (Art. 1164, par. 1)
to deliver the thing itself (Art. 1244)
ii. generic thing (Art. 1246)
b. To do (Art. 1244)
c. Not to do (Art. 1244)
2. Breach of Obligation
a. Concept
b. Modes of Breach
Delay or mora (Art. 1169)
i. mora solvendi
ii. mora accipiendi (See also 1268)
iii. compensation morae
Fraud or dolo (Art. 1171)
dolo incidente and dolo causante
Negligence (Art. 1172, 1173)
- Culpa v. dolo
- Culpa aquiliano v. culpa contractual
- Standard of care required
Contravention of the tenor (Art. 1172)
c. Remedies in case of breach
i. Performance
Specific performance (Art. 1165; Section 10, Rule 39, Rules of Court)
Substituted performance
in an obligation to give generic thing (Art. 1165, par. 2)
undoing of poor work in an obligation to do (Art. 1167)
undoing in an obligation not to do (Art 1168)
ii. Rescission (Art. 11911192)
iii. Damages (Art. 1170)
d. Subsidiary Remedies of Creditor
i. Accion Subrogatoria (Art. 1177)
ii. Accion Pauliana (Art. 1177; 1381, par. 3)
iii. Other Specific Remedies (Art. 1652, 1729, 1608, 1893)
e. Fortuitous Event (Art. 1174)
i. Effect: Extinguishment of Liability
ii. Exceptions to Extinguishment (Art. 1174, 1165 par. 3, 552, 1942, 1979, 2001, 2147)
f. Usurious Transactions (Art. 1175, 1413, 1961)
PD 858; PD 1685
Central Bank Circular 416
Monetary Board Circular No. 905; No. 2209
C. Different Kinds of Obligations
1. Pure and Conditional Obligations
Pure Obligations (Art. 1179, par. 1)
Conditional Obligations (Art. 1181)
Concept
Condition v. Period or Term
Kinds of Conditions
a. As to the effect on the obligation (Art 1181)
i. Suspensive Condition or Condition precedent
Retroactive effect when condition is fulfilled (Art. 1187)
Rights of the creditor and debtor before fulfillment of the condition (Art. 1188)
ii. Resolutory Condition or Condition subsequent
b. As to the cause or origin (Art 1182)
i. Potestative
Effect of fulfillment of condition depends solely on the will of the debtor
Debtors promise to pay when he can is not a condition (Art 1180)
ii. Causal
iii. Mixed
c. As to possibility (Art. 1183)
d. As to mode: positive or negative (Art. 11841185)
Rules in case of loss, deterioration or improvement pending the happening of the condition (Art.
1189 1190)
a. Definition of loss, deterioration and improvement
b. Effect of loss or deterioration
Without debtors fault
With debtors fault
c. Effect of improvement
By nature or time
Due to debtors effort and expense
Effect of prevention of the fulfillment of the condition by the obligor (Art1186)
2. Reciprocal Obligations (Art. 11911192)
a. Concept
b. Alternative remedies of injured parties on case of breach
i. action for specific performance
effect when fulfillment no longer possible
ii. action for rescission
requisites
how made
effects
Read: Art 1786, 1788, 148486, Republic Act No. 6552
3. Obligations with a Period (Art. 1193, 1180)
a. Compare Period/Term v. Condition
b. Kinds of Period
i. As to effect
Suspensive (Art 1193, par. 1)
Resolutory (Art 1193, par. 2)
ii. As to expression
Express
Implied
iii. As to definiteness
Definite
Indefinite
iv. As to source
Voluntary
Legal
Judicial
c. Rules in case of loss, deterioration or improvement before arrival of the period (Art. 1194 and 1189)
d. Effect of Payment in Advance (Art. 1195; 1197, par. 3)
e. Benefit of Period (Art 1196)
i. For whose benefit
Creditor
Debtor
Both
ii. Effects
iii. Presumption (Art. 1196)
iv. When debtor loses right to make use of period (Art. 1198)
f. When Court May Fix A Period
i. Period is implied
ii. Period depends on sole will of the debtor
4. Alternative Obligations
a. Concept (Art. 1199)
b. Right of Choice (Art. 1200)
c. Effect of Notice of Choice
d. When Notice Produces Effect (Art. 1201)
Effects
c. Joint Indivisible Obligations
i. Concept
Distinguished from joint obligations
Distinguished from solidary obligations
ii. Indivisibility distinguished from solidarity (Art. 1210)
iii. Effects (Art. 1209, 1224)
6. Divisible and Indivisible Obligations
a. Divisible Obligations
i. Concept
ii. Effects (Art. 1223, 1233)
b. Indivisible Obligations
i. Concept: distinguished from solidary obligations
ii. Kinds
Natural (Art. 1225, par. 1)
Legal (Art. 1225, par. 3)
Conventional (Art. 1225, par. 3)
iii. Presumptions of divisibility and indivisibility (Art. 1225)
iv. Divisibility and indivisibility in obligations not to do (Art. 1225, par.3 )
v. Effects (Art. 1223, 1223, 1224)
vi. Cessation of Indivisibility
7. Obligations with a Penal Clause
a. Concept
Principal v. Accessory Obligation
Distinguished from conditional obligations
Distinguished from alternative obligations
Distinguished from facultative obligations
Distinguished from guaranty
b. Kinds of Penal Clause
As to effect
o Subsidiary
o Complimentary
As to source
o Conventional
o Legal
As to purpose
o Punitive
o Reparatory
c. Demandability of Penalty (Art. 1226, par. 2)
d. Effects of Penal Clause: General Rule and Exceptions
Substitute for indemnity for damages and payment of interest (Art. 1226)
Not exempt debtor from performance (Art. 1227)
Creditor cannot demand both performance and penalty at the same time (Art. 1227)
Creditor cannot collect other damages in addition to penalty (Art. 1226)
e. When penalty shall be equitably reduced (Art. 1229)
f. Nullity of Principal Obligation of Penal Clause (Art. 1230)
D. Extinguishment of Obligations (Art. 1231)
1. Payment or Performance (Art. 1232)
a. Concept (Art. 1232)
b. Requisites
i. Who can pay
General Rule
Exceptions:
Concept
Requisites
ii. Consignation
Concept and Purpose
Requisites
o When tender and refusal not required (Art. 1256, par. 2)
o Two notice requirement (Art. 1257, par. 1; Art. 1258, par. 2); Effects of noncompliance
Effects (Art. 1260, par 1)
o Withdrawal by debtor before acceptance by creditor or approval of court (Art.
1260, par. 2)
o Withdrawal by debtor after proper consignation (Art. 1261)
- With creditor approval
- Without creditor approval
Expenses of Consignation
2. Loss or Impossibility
a. Loss of the Thing Due
i. Concept (Art. 1189, par. 2)
ii. Kinds
Total
Partial
iii. Requisites (Art. 1262)
iv. Presumption (Art. 1266, 1267)
v. Effects
In an obligation to give a specific thing (Art. 1262, 1268)
In an obligation to give a generic thing (Art. 1263)
In case of partial loss (Art 1264)
Action against third persons (Art. 1269)
b. Impossibility of Performance
i. Concept (Art. 1266, 1267)
ii. Kinds
Total
Partial
iii. Requisites (Art. 1266)
iv. Effects
In obligations to do (Art. 12661267; Art. 1262, par. 2)
Impossibility distinguished from difficulty
In case of partial impossibility (art. 1264)
3. Condonation or Remission
a. Concept
b. Kinds
Total or partial
Express or implied (Art. 1270, par. 1)
c. Requisites (Art. 1270, par. 2)
d. Presumptions (Art. 12711271; 1274)
e. Effects
In general
In case of joint or solidary obligations
f. Governing Rules (Art. 1270)
g. Renunciation of Principal or Accessory Obligation (Art. 1273)
4. Confusion or Merger
a. Concept
b. Requisites
c. Effects
In general (Art. 1275)
Legal Subrogation
o Requisites
o When presumed (Art. 1302)
o Effects (Art. 13031304)
PART TWO: CONTRACTS
I. Introduction
A. Concept and Definition (Art. 1305)
B. Classification of Contracts
1. According to subject matter: things or services
2. According to name: nominate and innominate contracts (Art. 1307)
3. According to perfection: by mere consent (Art. 1315) or by delivery of object (Art. 1316)
4. According to its relation to other contracts: preparatory; principal; or accessory
5. According to form: informal or formal
6. According to purpose
7. According to nature of legal tie created: unilateral, bilateral or reciprocal
8. According to cause: onerous or gratuitous
9. According to risk: commutative or aleatory
C. Characteristics
1. Obligatory Force between the Parties (Art. 1308)
a. General Rule: Freedom to Contract (Art. 1306)
b. Exceptions:
i. When it is inequitable (Art. 1310)
ii. Special disqualifications:
Art. 87, Family Code
Articles 1490 and 1491
Article 1782
iii. What may not be stipulated
Contrary to Law
(a) pactum commisorium (Art. 2088)
(b) pactum leonina (Art. 1799)
(c) pactum de non alienado (Art. 2130)
(d) other limitations: Labor Code, Corporation Code
Contrary to morals
Contrary to good customs
Contrary to public order
Contrary to public policy
c. Effect of contract as to third parties
i. Performance may be determined by third parties (Art. 1309)
ii. When possession of the object of the contract is with a third person (Art. 1312)
iii. Creditors of contracting parties (Art 1313, 1177, 1381)
iv. Interference by third parties (Art. 1314)
2. Mutuality (Art. 1308 to 1310; 1473)
3. Relativity or Privity of Contracts (Art. 1311)
a. Contracts take effect only between the parties, their assigns and heirs
b. No one may contract in the name of another (Art. 1317)
c. Stipulations in favor of third persons (Art. 1311, par. 2)
II. Essential Requisites of Contracts
A. Consent: Requisites (Art. 1319)
1. Perfection of Contract: Offer and Acceptance
a. Offer
must be certain (Art. 1319)
what may be fixed by the offeror (At. 1321)