Fortuitous Event -beyond the control of man; exempts him from the obligation -as long as there is no intervention

of the passive subject and there are no irregularities in the performance of the obligations. Caviat entor = Buyer Beware Caviat Vendito = Seller Beware Mode of Extinguishment (Extinguishment of Obligation) 1. Payment or performance -delivery of money and performance Requisites for valid payment/performance 1. Prestation performing what was agreed upon 2. Parties With respect to prestation itself -identity - integrity or completeness - indivisibility With respect to parties -must be made by proper party to proper party Payor - The one performing; he can be the debtor himself or his heirs or assigns or his agent - 3rd person/pays performs (only with the creditors consent) Payee - Creditor or obligee or successor in interest of transferee; - Or agent 3rd person must have redounded to the obligees benefit and only to the extent of such benefit Payment made to an incapacitated person, valid if: - Incapacitated person kept the thing delivered, or - Insofar as the payment has been beneficial to him Where do you pay? - In the place designated in the obligation - At the place where the thing might be at the moment the obligation was constituted - The place of the domicile of the debtor

3. Substantial performance - Attempt in good faith to perform without willful or intentional departure - Deviation is slight - Omission/defect is technical or unimportant - Must not be so material that intention of parties is not attained Effect of substantial performance in good faith - Obligor may recover as though there has been strict and complete fulfillment, less damages suffered by the obligee

- No right to rescind 4. Consignation - The act of the depositing the thing due with the court or juridical authorities whenever the creditor cannot accept or refuses to accept payment Requisites of valid consignation - Existence of valid debt - Previous valid tender was unjustly refused or circumstances making previous tender exempt - Prior notice of consignation had been given to the person interested in performance of obligation (1st notice) - Actual deposit with proper juridical authorities - Subsequent notice of consignation (2nd notice) 5. Loss of the thing due Partial or Total - When there is a loss - When the object perishes (physically) - When it goes out of commerce - When it disappears in such a way that its existence is unknown or it cannot be recovered - When there is impossibility of performance o Physical impossibility o Legal impossibility 6. Condonation -Gratuitous abandonment of debt (Applicable only to monetary obligations) 7. Confusion of rightS - Character of debtor and creditor is merged in same person with respect to same obligation Requisites: - it must take place between principal debtor and principal creditor only - merger must be clear and definite - the obligation involved must be same and identical one obligation only - revocable, if reason for confusion ceases, the obligation is revived 8. Compensation - It is a mode of extinguishment to the concurrent amount the obligations of persons who are in their own right reciprocally debtors or creditors Requisites - Both parties must be mutually creditors and debtors - Both debts are due - Both debts must consist in sum of money or if consumable, of the same kind or quality Kinds - Legal by operation by law; as long as requisites concur even if unknown to parties

- Conventional agreement of parties is enough, forget other requirement as long as both consented. 9. Novation - To renew - To abandon old obligation in lieu for a new one Negligence - It is a fault or act of negligence, which causes damage to another, there being no-pre existing contractual relations between the parties Elements of quasi delict 1. Act of omission 2. Damage or injury is caused to another 3. Fault or negligence is present 4. There is no pre-existing contractual relations between the parties 5. Causal connection between the damage done and act/omission What must be proven: 1. Negligence in cases where negligence is presumed or imputed by law in common carriers - Principle of res ipsa loquitur grounded on the difficulty in proving through competent evidence. 2. Damage/Injury 3. Causal connection between negligence and damage - doctrine of proximate cause Proximate cause the adequate and efficient cause which in the natural order of events and under the particular circumstances surrounding the case would naturally produce the event DEFENCES 1. Contributory negligence both are negligent - One has a higher weight 2. Concurrent negligence both are equally negligent 3. Doctrine of last clear chance 4. Emergency rule you are the most important person 5. Doctrine of assumption of risk 6. Fortuitous event 7. Exercise of diligence of good father of family in selection and supervision of employees 8. Prescription 9. Act or omission is not the proximate cause of the damage Contract meeting of minds between 2 parties whereby one binds himself with respect to others to give something or render some service. Kinds of Contract 1. As to perfection or formation a. Consensual perfected by agreement or parties b. Real perfected by delivery c. Formal/Solemn perfected by conformity to essential formalities

2. As to cause a. Onerous with valuable consideration b. Gratuitous founded on liberality c. Remunerative presentation is given for service previously rendered not as obligation 3. As to name or designation a. Nominate contract with names b. Innominate i. Do ut des I give that you may give ii. Do ut facias I give that you may do iii. Facio ut des I do that you may give iv. Facio ut facias I do that you may do Stages in a contract Preparation longest Perfection finished in seconds Consummation contract fulfilled Elements Consent Object Cause Form necessary for the registration of the contract but not necessary for the contract to be perfected.