San Beda College of Law MEMORY AID IN CIVIL LAW CIVIL LAW COMMITTEE OBLIGATIONS AND CONTRACTS PDF

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San Beda College of Law 85 MEMORY AID IN CIVIL LAW OBLIGATIONS AND CONTRACTS I. OBLIGATIONS through mistake to another who has no right to demand it. OBLIGATION  A juridical necessity to give, to do, QUASI-DELICTS or not to do (Article 1156), one  An act or omission by a person impressed with the ...

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San Beda College of Law

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MEMORY AID IN CIVIL LAW

OBLIGATIONS AND CONTRACTS I. OBLIGATIONS OBLIGATION  A juridical necessity to give, to do, or not to do (Article 1156), one impressed with the character of enforceability.  Requisites: a. juridical or legal tie or efficient cause b. active subject (obligee or creditor) c. passive subject (obligor or debtor) d. fact, prestation or service constituting the object of the obligation  Requisites: i) it must be licit ii) it must be possible, physically & juridically iii) it must be determinate or determinable iv) it must have a possible equivalent in money 1. 2. 3. 4. 5.

Law Contracts Quasi-contracts Delicts Quasi-delicts

QUASI-CONTRACTS  Those juridical relations arising from lawful, voluntary and unilateral acts, by virtue of which the parties become bound to each other, based on the principle that no one shall be unjustly enriched or benefited at the expense of another. Principal Kinds of Quasi-contracts: 1. Negotiorum gestio - arises whenever a person voluntarily takes charge of the agency or management of the business or property of another without any power or authority from the latter. 2. Solutio indebiti - arises whenever a person unduly delivers a thing

through mistake to another who has no right to demand it. QUASI-DELICTS  An act or omission by a person (tortfeasor) which causes damage to another giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties (Article 2176).  Requisites: 1. There must be an act or omission; 2. There must be fault or negligence; 3. There must be damage caused to the plaintiff; 4. There must be a direct relation of cause and effect between the act or omission and the damage; and 5. There is no pre-existing contractual relation between the parties. NOTES:  The same negligent act or omission causing damage may produce civil liability arising from crime under Art. 100 of the RPC or create an action for quasi-delict under Article 2176.  While it is true that in order that a person may be liable for quasidelicts, there must be no preexisting contractual relationship between the parties, yet, “the act that breaks the contract may also be a tort.” (Air France vs. Carrascoso, 18 SCRA 155). Nature of Obligations 1. Personal Obligations - obligations to do a. Positive – obligation to do b. Negative – obligation not to do 2. Real Obligations - obligations to give a. Determinate or specific – object is particularly designated or

CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD), Ma. Ricasion Tugadi (Conflict of Laws)

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physically segregated from all other of the same class b. Generic – object is designated merely by its class or genus c. Limited generic thing – when the generic objects are confined to a particular class, e.g. an obligation to deliver one of my horses (Tolentino, Volume IV, p. 91). PERSONAL vs. REAL RIGHT Personal Real 1. jus ad rem, a right enforceable only against a definite person or group of persons 2. right pertaining to the person to demand from another, as a definite passive subject, the fulfillment of a prestation to give, to do or not to do.

1. jus in re, a right enforceable against the whole world 2. right pertaining to a person over a specific thing, without a passive subject individually determined against whom such right may be personally enforced

RIGHTS OF A CREDITOR Determinate 1. compel specific performance 2. recover damages in case of breach of the obligation, exclusive or in addition to specific performance 3. entitlement to fruits, interests from the time the obligation to deliver arises.

Generic

1. ask for performance of the obligation 2. ask that the obligation be complied with at the expense of the debtor

3. recover damages in case of breach of the obligation

Principle of Balancing of Equities as Applied in Actions for Specific Performance  In decreeing specific performance, equity requires not only that the contract be just and equitable in its provisions, but that the consequences of specific performance likewise be equitable and just. The general rule is that this equitable relief will not be granted

if, under the circumstances of the case, the result of the specific performance of the contract would be harsh, inequitable, oppressive or result in an unconscionable advantage to the plaintiff. The courts may adjust the rights of the parties in accordance with the circumstances obtaining at the time of rendition of judgment, when these are significantly different from those existing at the time of generation of those rights. (Agcaoili vs. GSIS, G.R. No. 30056, August 30, 1988) OBLIGATIONS OF THE DEBTOR Determinate Generic 1. deliver the thing which he has obligated himself to give 2. take care of the thing with the proper diligence of a good father of a family 3. deliver all accessions and accessories of the thing even though they may not have been mentioned 4. pay damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof

1. deliver the thing which is neither of superior nor inferior quality 2. pay damages in case of breach of the obligation by reason of delay, fraud, negligence or contravention of the tenor thereof

EFFECTS OF BREACH Positive Personal Negative Personal Obligations Obligations The creditor can: 1. have the obligation performed or executed at the expense of the obligor (except in cases where the personal qualifications of the debtor are taken into account in which case the only remedy is an action for damages) 2. ask that what has

If the obligor does what has been forbidden him, the creditor can: 1. have it undone at the expense of the obligor; and 2. ask for damages

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), Yolanda Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VC-EDP), Anna Margarita Eres (VC-Logistics). Jonathan Mangundayao (Political Law), Francis Benedict Reotutar (Labor Law), Romuald Padilla (Civil Law), Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (Commercial Law), Jinky Ann Uy (Remedial Law), Jackie Lou Bautista (Legal Ethics)

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MEMORY AID IN CIVIL LAW been poorly done be undone 3. recover damages because of breach of the obligation

Cases where the remedy granted under Article 1168 is not available: 1. Where the effects of the act which is forbidden, are definite in character, in which case, even if it is possible for the obligee to ask that the act be undone at the expense of the obligor, consequences contrary to the object of the obligation will have been produced which are permanent in character 2. Where it would be physically or legally impossible to undo what has been undone because of the very nature of the act itself or because of a provision of law, or because of conflicting rights of 3rd persons NOTE: In either case, the remedy is to ask for damages. BREACH OF OBLIGATIONS 1. Voluntary debtor, in the performance of the obligation, is guilty of: a. default (mora) b. fraud (dolo) c. negligence (culpa) d. contravention of the tenor of the obligation NOTE: debtor is liable for damages 2.

Involuntary - debtor is unable to comply with his obligation because of fortuitous event NOTE: debtor is not liable for damages

DEFAULT or DELAY  Non-fulfillment of the obligation with respect to time  Requisites: 1. Obligation is demandable and already liquidated 2. The debtor delays performance 3. The creditor requires performance judicially or extra-judicially

 3 Kinds: 1. Mora solvendi - delay of the debtor to perform his obligation. It may be: a. Ex re – obligation is to give b. Ex persona – obligation is to do 2. Mora accipiendi - delay of the creditor to accept the delivery of the thing w/c is the object of the obligation 3. Compensatio morae - delay of the parties or obligors in reciprocal obligation There must be a demand (judicial or extra-judicial) before delay may be incurred. 1. obligation or law expressly so declares 2. time is of the essence of the contract 3. demand is useless as when obligor has rendered beyond his power to perform 4. there is acknowledgment of default NOTES:  There can be delay only in positive obligations (to give/to do). There can be no delay in negative obligations (not to give/not to do).  In reciprocal obligations one party incurs in delay from the moment the other party fulfills his obligation, while he himself does not comply or is not ready to comply in a proper manner with what is incumbent upon him. The general rule is that fulfillment by both parties should be simultaneous except when different dates for the performance of obligation is fixed by the parties.  Demand is still necessary if their respective obligations are to be performed on separate dates FRAUD  Deliberate and intentional evasion of the fulfillment of an obligation

CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD), Ma. Ricasion Tugadi (Conflicts of Law)

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NOTE: Future fraud cannot be waived because it would result to illusory obligation. Incidental Fraud/dolo incidente (Article 1170)

Causal Fraud/dolo causante (Article 1338)

1. Present during the performance of a pre-existing obligation

1. Present during the time of birth or perfection of the obligation

2. Purpose is to evade the normal fulfillment of the obligation

2. Purpose is to secure the consent of the other to enter into a contract

3. Results in the non-fulfillment or breach of the obligation

3. Results in the vitiation of consent

4. Gives rise to a right of the creditor to recover damages from the debtor

4. Gives rise to a right of an innocent party to annul the contract

NEGLIGENCE  Omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place NOTE: Negligence can be waived unless the nature of the obligation or public policy requires extraordinary diligence as in common carrier. Diligence Required 1. That agreed upon by the parties 2. In the absence of stipulation, that required by law in the particular case 3. If both the contract and law are silent, diligence of a good father of a family Concept of Diligence of Good Father of a Family

 That reasonable diligence which an

ordinary prudent person would have done under the same circumstances

Test of Negligence

 The test of negligence can be

determined by this standard: If the defendant, in committing or causing the negligent act, had used reasonable care and vigilance which a man of ordinary prudence would have employed under the same situation, he is not guilty of negligence. Otherwise, he is guilty.

Doctrine of Res Ipsa Loquitur as Applied in Negligence Cases

 The thing or transaction speaks for itself

 When the thing which caused injury,

without fault of the injured person, is under the exclusive control of the defendant and the injury is such as in the ordinary course of things does not occur if he having such control use proper care, it affords reasonable evidence, in the absence of explanation from the defendant, that the injury arose from defendant’s want of care (Africa vs. Caltex, 16 SCRA 448 and Republic vs. Luzon Stevedoring, 21 SCRA 279).

FORTUITOUS EVENT  An event which could not be foreseen or which though foreseen was inevitable.

 Requisites:

1. cause is independent of the will of the debtor 2. the event must be unforeseeable or unavoidable 3. occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner 4. debtor must be free from any participation in 5. the aggravation of the injury resulting to the creditor (Lasam vs. Smith, 45 Phil. 657) NOTE: It must not only be the proximate cause but it must be the ONLY and SOLE CAUSE.

2005 CENTRALIZED BAR OPERATIONS EXECUTIVE COMMITTEE AND SUBJECT CHAIRPERSONS Maricel Abarentos (Over-all Chairperson), Ronald Jalmanzar (Over-all Vice Chair), Yolanda Tolentino(VC-Acads), Jennifer Ang(VC- Secretariat), Joy Inductivo (VC-Finance), Elaine Masukat (VC-EDP), Anna Margarita Eres (VC-Logistics). Jonathan Mangundayao (Political Law), Francis Benedict Reotutar (Labor Law), Romuald Padilla (Civil Law), Charmaine Torres (Taxation Law), Mark David Martinez (Criminal Law), Garny Luisa Alegre (Commercial Law), Jinky Ann Uy (Remedial Law), Jackie Lou Bautista (Legal Ethics)

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MEMORY AID IN CIVIL LAW GENERAL RULE: No liability in case of fortuitous event. EXCEPTIONS: 1 When expressly declared by law NOTE: e.g. Article 552(2), 1165(3), 1268, 1942, 2147, 2148 and 2159 of the Civil Code. 2 When expressly declared by stipulation or contract 3 When the nature of the obligation requires the assumption of risk 4 When the obligor is in default or has promised to deliver the same thing to 2 or more persons who do not have the same interest [Article 1165(3)]. EFFECT OF FORTUITOUS EVENT Determinate Generic Obligation Obligation obligation is extinguished

obligation is not extinguished based on the rule that a genus never perishes (genus nunquam peruit)

PRINCIPLE UNDER ARTICLE 1176  Before the presumption that a prior installment had been paid may arise, the receipt must specify the installment for which payment is made.

 REMEDIES

OF CREDITOR TO PROTECT CREDIT: 1. Exhaustion of debtor’s property 2. Accion subrogatoria - to be subrogated to all the rights and actions of the debtor save those which are inherent in his person. 3. Accion pauliana - impugn all the acts w/c the debtor may have done to defraud them. NOTE: 2nd & 3rd remedies are subsidiary to the first Rights acquired by virtue of an obligation are transmissible in character

1. When they are not transmissible by their very nature e.g. purely personal right 2. When there is a stipulation of the parties that they are not transmissible 3. Not transmissible by operation of law PURE OBLIGATION  One whose effectivity or extinguishment does not depend upon the fulfillment or nonfulfillment of a condition or upon the expiration of a term or period and is demandable at once. CONDITIONAL OBLIGATION  One whose effectivity is subordinated to the fulfillment or non-fulfillment of a future AND uncertain fact or event Kinds of conditions: 1. Suspensive - fulfillment of the condition results in the acquisition of rights arising out of the obligation 2. Resolutory - fulfillment of the condition results in the extinguishments of rights arising out of the obligation 3. Potestative - fulfillment of the condition depends upon the will of a party to the obligation 4. Casual - fulfillment of the condition depends upon chance and/or upon the will of a third person 5. Mixed - fulfillment of the condition depends partly upon chance and/or the will of a third person 6. Possible - condition is capable of realization according to nature, law, public policy and good customs 7. Impossible - condition is not capable of realization according to nature, law, public policy and good customs 8. Positive - condition involves the performance of an act 9. Negative - condition involves the omission of an act 10. Divisible - condition is susceptible of partial realization 11. Indivisible - condition is not susceptible of partial realization

CIVIL LAW COMMITTEE CHAIRPERSON: Romuald Padilla ASST.CHAIRPERSON: Vida Bocar, Joyce Vidad EDP: Alnaiza Hassiman, Dorothy Gayon  SUBJECT HEADS: Christopher Rey Marasigan (Persons and Family Relations), Alejandro Casabar(Property), Ma. Rhodora Ferrer(Wills and Succession), Ian Dominic Pua(Obligations and Contracts), Sha Elijah Dumama(Sales and Lease), John Stephen Quiambao(PAT), Christopher Cabigao(Credit Transactions), Ligaya Alipao(Torts and Damages), Anthony Purganan(LTD), Ma. Ricasion Tugadi (Conflicts of Law)

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12. Conjunctive - where there are several conditions, all of which must be realized 13. Alternative - where there are several conditions but only one must be realized Rule in Potestative Conditions a. If the fulfillment of the potestative condition depends upon the sole will of the debtor, the condition as well as the obligation itself is void. It renders the obligation illusory. (Applicable only to a suspensive condition and to an obligation which depends for its perfection upon the fulfillment of the potestative condition and not to a pre-existing obligation.) b. If the fulfillment depends exclusively upon the will of the creditor, both the condition and obligation is valid. NOTE: In case of simple potestative condition, e.g. right of first refusal, such condition is valid. Rule in Impossible Conditions They shall annul the obligation which depends upon them. 1. 2. 3. 4. 5.

pre-existing obligation if obligation is divisible in simple or renumeratory donations in testamentary dispositions in case of conditions not to do an impossible thing

Effects of Suspensive Condition 1. Before fulfillment of the condition, the demandability as well as the acquisition or effectivity of the rights arising from the obligation is suspended 2. After the fulfillment of the condition, the obligation arises or becomes effective 3. The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation 4. When the obligation imposes reciprocal prestations upon the parties, the fruits & interests shall

be deemed to have been mutually compensated 5. If the obligation is unilateral, the debtor shall appropriate the fruits & interests received, unless from the nature & circumstances it should be inferred that the intention of the persons constituting the same was different 6. In obligations to do or not to do, the court shall determine the retroactive effect or the conditions that has been complied with Constructive fulfillment of Suspensive Condition  The condition shall be deemed fulfilled when the obligor actually prevented the obligee from complying with the condition and such prevention must have been voluntary and willful in character. Effects of Resolutory Condition 1. Before the fulfillment of the condition, the right which the creditor has already acquired by virtue of the obligation is subject to a threat of extinction. 2. If condition is not fulfilled, rights are consolidated; they become absolute. 3. Upon fulfillment of the condition, the parties shall return to each other what they received including the fruits SUMMARY: SUSPENSIVE CONDITION 1. if fulfilled, o...