Professional Documents
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LOSS OF THE
THING DUE
MEANING OF
LOSS
WHEN IS A THING
CONSIDERED
LOST?
EFFECTS OF
LOSS OF THING
IN OBLIGATIONS
TO GIVE
Specific
or
Determinate
Generic
or
Indeterminat
e
genus never
perishes
RISK OF LOSS
Before perfection
At perfection
The creditor has a right to the fruits of the thing from the time
the obligation to deliver it arises. However, he shall acquire no
real right over it until the same has been delivered to him.
(1095)
-Art. 1164-
Obligation
extinguishe
d
Obligation
NOT
extinguishe
d
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
Illustration (1)
Facts:
First issue:
lost in a
Cases when the loss of the specific thing even in the absence
of fault and delay will not exempt debtor from liability:
1. When the law so provides;
2. When the stipulation so provides;
3. When the nature of the obligation requires the assumption
of risk; and
4. When the debt arises from criminal offense.
Illustration (2)
Facts:
the
First issue:
effect on
The jeep was lost and destroyed due to flood. What is its
the obligation?
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
PARTIAL LOSS OF
THING
-Article 1264-
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
2. Through courts
discretion: partial loss of
thing
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
Illustration (3)
Facts:
First issue:
LOSS OF THING IN
POSSESSION OF
DEBTOR
Presumption:
Exception:
-Article 1265-
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
2. Through courts
discretion: partial loss of
thing
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
3. Loss is due to debtors fault
Illustration (4)
Facts:
First issue:
was not
L?
On due date, B told L that the car was stolen and that he
at fault. Is it enough as to extinguish his obligation to
Second issue: Suppose the house of B was destroyed by fire and it was
accidental that the car was in the house at the time
it occurred.
Is B still liable?
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
2. Through courts
discretion: partial loss of
thing
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
3. Loss is due to debtors fault
4. Debtor incurs in delay
Illustration (5)
Facts:
First issue:
was not
L?
On due date, B told L that the car was stolen and that he
at fault. Is it enough as to extinguish his obligation to
Second issue: Suppose the house of B was destroyed by fire and it was
accidental that the car was in the house at the time
it occurred.
Is B still liable?
Third issue:
was
What if only after the due date had B told L that the car
caught by fire? Should it extinguish the obligation?
LOSS OF
IMPOSSIBILITY
OF
SPECIFIC =
PERFORMANCE
THING
IN OBLIGATIONS
TO DO
-Article 1266-
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
2. Through courts
discretion: partial loss of
thing
3.
Service performance is
rendered impossible
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
3. Loss is due to debtors fault
4. Debtor incurs in delay
5. Impossibility is due to
debtors fault
6. Impossibility only arises
from an impossibility in fact
Illustration (6)
Facts:
First issue:
Second issue: Suppose S is unable to deliver the goods promised and his
inability arises not from their destruction but from, say,
his
inability to raise money to buy them due to
sickness.
PARTIA
L
LOSS
DIFFICULTY OF
PERFORMANC
E
DIFFICULTY OF
PERFORMANCE
-Article 1267-
Obligation extinguished
1. The thing to be delivered
is specific or determinate,
debtor not in fault or delay
2. Through courts
discretion: partial loss of
thing
3.
Service performance is
rendered impossible
4. Through courts
discretion: service difficulty
Obligation NOT
extinguished
1. The thing to be
delivered is generic or
indeterminate
2.
Obligation arises from a
criminal offense
3. Loss is due to debtors fault
4. Debtor incurs in delay
5. Impossibility is due to
debtors fault
6. Impossibility only arises
from an impossibility in fact
Illustration (7)
Facts:
First issue:
RIGHT OF CREDITOR
TO PROCEED AGAINST
THIRD PERSONS
Illustration (8)
Facts:
First issue:
Held:
The obligation of S is extinguished and he is not liable to B.
Such
being the case, S would not be interested in going after
T. The law
however, protects B by giving him the right to
bring an action
against T to recover the price of the
horse with damages.
SECTION 3:
CONDONATION OR
REMISSION OF DEBT
MEANING OF
CONDONATION
OR REMISSION
KINDS OF
REMISSION
As to its extent
Complete
Partial
As to its form
Expressed
Implied
As to its date of effectivity
Inter vivos
Mortis causa
REQUISITES OF
CONDONATION OR
REMISSION
1. It must be gratuitous.
2. It must be accepted by the obligor.
3. The parties must have capacity.
4. It must not be inofficious.
5. If made expressly, it must comply with the forms of donation.
-Art. 1270-
VOLUNTARY
DELIVERY
OF PRIVATE
DOCUMENT
VOLUNT
ARY
=
DELIVER
Y
PRESUMPTI
ON OF
PAYMENT
prima facie
Extent of Remission
Joint obligation
Pertains only to the
share of the debtor
who is in possession
of the private
document
Solidary obligation
Pertains to the total
obligation
PRIVATE DOCUMENT
IN POSSESSION OF
DEBTOR
Presumption:
PRESUMP
TION OF PRESUMPTI
VOLUNTA = ON OF
REMISSION
RY
DELIVERY
Illustration
Suppose Christian borrowed Php100,000 from James evidenced
by a promissory note and is signed by Christian which he later
on gave to James.
What presumption arises if:
(a)The promissory note is voluntarily given by James to
Christian?
(b)If it is known that Christian hasnt paid James yet?
(c) Suppose it is not known how James came into possession of
the promissory note?
PRINCIPAL AND
ACCESSORY
accessory
follows
principal
THING PLEDGED
FOUND IN POSSESSION
OF DEBTOR
SECTION 4:
CONFUSION OR
MERGER OF RIGHTS
MEANING OF
CONFUSION OR
MERGER
Basis of Confusion
1. The law treats confusion or merger as a mode of
CONFUSION AND
MERGER
DISTINGUISHED
REQUISITES OF
CONFUSION OR
MERGER
EXTINCTION OF
REAL RIGHTS BY
CONFUSION
consolidation
of ownership
EFFECT OF
MERGER
MERGER OF
EXTINGUISH
PRINCIPAL
= MENT OF
DEBTOR OR
OBLIGATION
CREDITOR
EXTINGUISHMEN
EXTINGUISH
T OF ACCESSORY
MENT OF = OBLIGATION OF
GUARANTY
OBLIGATION
MERGER IN EXTINGUISHMEN
THE PERSON T OF ACCESSORY
= OBLIGATION
OF
ONLY
GUARANTOR
CONFUSION IN JOINT
AND SOLIDARY
OBLIGATIONS