OBLIGATIONS

BIRTH AND SOURCES

Judicial necessity: to give, to do or not to do
court = order performance of an obligation if debtor does not fulfill it
following elements should be meet [SOE]
1) Subject Person
a. Active Subject/Obligee creditor possessor right to demand
b. Passive Subject/Obligor debtor duty to perform
2) Object/Prestation/Conduct
a. to give
b. to do
c. not to do
3) Efficient cause / Vernacular Juris / Legal of Jurisdical
o right: juridical necessity
o course of action: courts
o sources of civil obligation vs. natural obligation
perfect obligation
imperfect obligation
positive law
natural law
enforcement in courts
church
Sources of Obligation
1) Legal Obligations Taxes Law
o not presumed
2) Contractual Obligation meeting of minds
3) Quasi-Contract extra-contractual obligation unjust enrichment
a. Solutio Indebiti
o payment by mistake
o the receiver of the payment has no right to receive = return the payment
b. Negotiorum Gestio unauthorized management
i. Property = neglected
ii. 3rd Party = manage it: Lawful, Unilateral, Voluntary Creditor Gestor or officions managers
iii. Owner = enriched benefited

o obligation to pay just compensation

o refund necessary and ordinary expenses
4) Delicts
civil obligation from crimes acts or omissions punishable by law
Prison = criminal obligation
Pay Damage = civil obligation
5) Quasi-Delicts civil obligation from negligence
o Culpa Aquiliana Torts or Civil Negligence
Obligations of Debtor
1) To give
a) Determinate Thing (Specific)
i) Principal Obligation need to deliver the thing
ii) Legal Accessory Obligation
(1) Deliver accessions (real property) and accessories (personal property)
(2) Deliver the fruits
(a) natural fruit
(b) industrial fruit = with human intervention
(c) civil fruit
Cut-off? From when? Time obligation to deliver arises, except:
stipulated
sale fruits buyer: from the perfection of contract of sale
pending delivery take care: ordinary diligence = due diligence
b) Indeterminate Thing (Generic) Genus Nunguam Perit
2) To do performance of a promise
3) Not to do no delay negative obligation
Primary Remedies
Determinate Generic
Thing
Thing
1. Specific
YES
NO
Performance
(only)
(compel the debtor to
deliver the determinate

To Do

Not To Do

NO

NO

thing
2. Substituted
Performance
(Cash at 3rd parties at
debtors expense)
3. Equivalent
Performance
(Cash na lang)
4. Other Damages
(Moral, Exemplary,
Actual = Bad Faith or
Malice)

NO

YES

YES

YES

YES

YES

YES

YES

YES

YES

YES
(if poorly
done, it can
be undone at
debtors
expense)

YES
(what is
prohibited =
done = can
be undone
at debtors
expense)

Subsidiary or Secondary Remedies if the primary remedies are not available

1) Accion Subgrogatoria (Subrogatory A)
o Action of the creditor vs. the debtor of his debtor
o The debtor of my debtor is also my debtor
2) Accion Pauliana (Rescissory A)= action to rescind
o creditor can rescind Cs
o entitled by the debtor to debtor him
o example: donation by an insolvent debtor
Remedies when the debtor to failed to perform due to his fault
1. Fraud (Dolo) Dolo incidente
o fraud in the performance of obligation
o Remedy: ask for damages
2. Negligence (Culpa)
Culpa Aquiliana
Culpa Contractual
Source
Obligation
Damages
Contract
No (pedestrian: Bus) Yes (passenger:
Bus)

Due Diligence
Presumption of
Negligence

Yes = defense
Not presumed
(prove it)

No
Yes, it is presumed

3. Delay (Mora)
o Mora solvendi = debtors delay in performance
i. positive obligation
ii. due and demandable = obligation with a period
iii. creditor demanded RULE: no delay, no demand (judicial and extra judicial)
iv. debtor failed to perform
o Except: Delay is automatic (RTOLD)
1. Reciprocal obligation ex. sale
2. Time is essential
3. Obligation so promotes (stipulated)
4. Law so provides ex. VAT
5. Demand will be useless
a. debtor = lost it
b. debtor = another
o Mora accipiendi = consignation
4. Contravention (to violate) = tenor obligation

o
o
o
o

Fortuitous Event with Fraud, Negligence, Delay and Contravention

Debtor is still liable
impossible to foresee acts of nature
impossible to avoid acts of majeure/ force majeure
beyond the control of debtor
debtor is not partly at fault

Debtor is exempted from liabilities, except the following: (LOGS)

1. Law so provides Fortuitous events + fraud, negligence, delay and contravention
2. Obligation assessment of risk Insurance
3. Generic Generic Nexer perishes
4. Stipulated

KINDS OF OBLIGATIONS
A. Primary Obligations
1) Pure Obligation and Conditional Obligation

Pure Obligation
o without a term or condition
o demandable at once
Conditional Obligation
o demandability depends upon the happening of the condition
o Future and uncertain event
o Past event unknown to the parties
i. Suspensive Condition demandable only when the condition is fulfilled
condition antecedent or condition precedent
General Rule: the effect of the fulfillment of the suspensive condition
retroacts to the day of the constitution of the obligation
Exceptions: no retroactive effects with respect to fruits and interests
1. Reciprocal Obligations fruits and interests shall be deemed to have been mutually
compensated = each party shall keep the fruits and interests received by him prior to the
fulfillment of the condition
2. Unilateral Obligations debtor keeps the fruits and interests received before the fulfillment of
the condition
Loss of the thing before the fulfillment of the suspensive condition
Without debtors fault obligation = extinguished
With debtors fault debtor = pay damages
Deterioration of the thing before the fulfillment of the suspensive condition
Without debtors fault impairment shall be borne by the creditor

 With debtors fault creditor pay opt to: 1rescission + damages and 2fulfillment + damages
Improvement of the thing before the fulfillment of the suspensive condition
By nature or by time benefit of the creditor
At the expense of the debtor debtor = rights to usufructuary
ii. Resolutory Condition
will extinguished the obligation
parties shall return to each other what they have received
condition subsequent
in case of loss, deterioration or improvement of a thing =
same rule as to suspensive condition
Rules
1.
2.
3.
4.
5.

Illegal or Immoral = VOID

Impossible = VOID
Not to do = VALID (demandable)
Debtor prevented the condition to happen = DEMANDABLE (deemed fulfilled)
Sole will of the party
a. Creditor only: VALID (if feel mo)
b. Debtor only: VOID (if feel ko)

Potestative: condition depends upon the will of one of the contracting parties.
i. Debtor
a. Suspensive: obligation = VOID even if the condition is fulfilled, the obligation is not
demandable.
b. Resolutory: obligation = VALID
ii. Creditor
a. Suspensive: obligation = VALID
b. Resolutory: obligation = VALID
Casual: condition depends upon chance or upon the will of the third person
Mixed: condition depends partly upon the will of one of the parties and partly upon chance of upon the will of a
third person

 Possible: one that is capable of fulfillment in its nature and by law

Impossible: one that is not capable of fulfillment in its nature or due to operation of law
If the condition is not to do an impossible thing, it shall be deemed as not having been agreed upon.
Reciprocal Obligation: arises from the same cause and in which each party is a debtor and a creditor of the other
obligation of one is dependent upon the obligation of the other to be performed simultaneously =
performance of one is conditioned upon the simultaneous.
Remedies of the injured party in Reciprocal Obligation
1. Rescission with damages
2. Fulfillment of the obligation with damages
2) Obligation with a period
PERIOD = sure to happen or arise
a) Suspensive Period its arrival; increase obligation (on 12/25/2015)
b) Resolutory Period its arrival decreases obligation (until the end of the year)
c) A day Certain sure to come but unknown when (death of a person)
CONDITION
Event that may or may not
happen

PERIOD
Event that must necessarily
come, at a date known
beforehand, or at a time that
cannot be determined

As to time

Refer to the future or past even

unknown to the parties

Always refer to the future

As to influence on the
obligation

Causes an obligation to arise or

to cease

Merely fixes the time for the

efficaciousness of an obligation

As to fulfillment

As to the will of the debtor

A condition depends upon the

will of the debtor which is
suspensive shall annul the
obligation

A period that depends upon the

will of the debtor authorizes the
court to fix its duration

Kinds of Periods
1. Ex die: period with a suspensive effect obligation becomes demandable upon the lapse of the period
2. In Diem: period with a resolutory effect obligation is demandable at once but is extinguished upon the lapse
of the period
3. Legal: period that is fixed by law
4. Voluntary: period fixed by the parties
5. Judicial: period fixed by the court
For whose benefit is the period?
for both debtor and creditor except when contrary is stipulated
o Debtors benefit only debtor has the option on or before 12/25/15
o Creditors benefit only creditor has the option on 12/25/15 unless creditor demands sooner
When the debtor loses the benefit of the period? [IFIDVAS]
-Obligation becomes immediately demandable
i. Debtor is insolvent
ii. Debtor failed to furnish the guarantee he promised
iii.
Debtor has impaired the guarantee through his fault (no substitute)
iv. Disappear or Lost thru fortuitous event (unless debtor can deliver to creditor a satisfactory substitute)
v. Violated the condition for the period
vi. Debtor absconds
vii. Stipulated
When can courts intervene and fix the period for both debtor and
creditor?
Debtor: I will pay when my means prompt me
Debtor: sole will of the debtor
o Little by little: debt of 100k 1 pesos per month

 Period is intended but not fixed as soon as possible

3) Alternative Obligation and Facultative Obligation
Kinds of Obligation according to the number of Prestations
1. Simple there is only one prestations
2. Compound there are several prestations
a. Conjunctiveseveral prestations are due but all must be performed
b. Distributive or disjunctiveeither be alternative or facultative
Alternative Obligation: one where several prestations are due but the complete performance of one of them is
sufficient to extinguish the obligation
Right to Choose Prestation DEBTOR (unless expressly given to creditor)
Limitations on debtors right to choose
o debtor must completely perform the prestation chosen. He cannot compel the creditor
to receive part of one and part of another undertaking
o cannot choose those prestations which are impossible, unlawful or which could not
have been the object of the obligation
When obligation ceases to be alternative and becomes a simple obligation
1. When the debtor has communicated his choice to the creditor
2. When among the prestations whereby the debtor is alternatively bound, only one is practicable
3. When the creditor has communicated his choice to the debtor, if the creditor has been expressly given the
right of choice
Rules in case of loss of things or impossibility of services, which are alternatively the object of the obligation
Right of Choice = DEBTOR
1. if only one or some are lost through a fortuitous event or through the debtors fault debtor may
deliver any of the remainder or that which remains if only one subsists.
2. if all are lost through a fortuitous event obligation is extinguished
3. if all are lost through the debtors fault debtor shall pay the value of the last thing that was lost
plus damages

 Right of Choice = CREDITOR

1. if only one or some are lost through a fortuitous event debtor shall deliver that which the creditor
should choose among the remainder or that which remains if only one subsists.
2. if all are lost through a fortuitous event obligation is extinguished
3. if only one or some are lost through the debtors fault creditor may claim any of those subsisting
or the price of those which were lost through the debtors fault plus damages
4. if all are lost through the debtors fault creditor may claim the price of any of them plus damages
Facultative Obligation: only one prestation is due but the debtor may render another in substitution
Rules in case of loss of principal thing and substitute
1. Before substitution
a. Principal thing
i. fortuitous event: obligation is extinguished
ii. debtors fault: debtor shall pay damages
b. Substitute no additional obligation on the debtor because it is not yet due
2. After substitution
a. Principal thingimposes no additional obligation on the debtor because the thing due is
already the substitute = the obligation also ceases to be a facultative obligation and
becomes a simple obligation
b. Substitute
i. fortuitous event: obligation is extinguished
ii. debtors fault: debtor shall pay damages
Alternative Obligation
Several prestations are due, but the performance
of one is sufficient to extinguish the debt

Facultative Obligation
Only one prestation, the principal obligation, is
due

If there are void prestations, the others may still

be valid, hence, the obligation remains

If the principal obligation is void, the debtor is

not required to give the substitute

The right of choice is with the debtor unless

expressly given to the creditor

The right of choice belong to the debtor only

If all prestations are impossible except one, that

which is possible must still be given

If the principal obligation is impossible, the

debtor is not required to give the substitute

4) Joint Obligation and Solidary Obligation

Joint Obligation: each debtor is liable only for a proportionate part of the debt and each creditor is entitled only to a
proportionate part of the credit
o Proportioantely
o Pro rata
o Mancomunada
o Mancomunada Simple
Solidary Obligation: each debtor is liable for the whole obligation and each creditor is entitled to demand payment
of the whole obligation
o Jointly and Severally
o Individually and collectively
o In solidum
o Mancomunada Solidaria
o Juntos o separadamente
Solidary is not presumed (too burdensome) unless: 1law provides (conspiracy to commit a crime) and 2parties stipulated
Kinds of Solidary Obligations
1. Passive solidarity part of the debtors
2. Active solidarity part of the creditors
3. Mixed solidarity or solidarity on the part of both debtors and creditors
X Y P100T on 12/25/15 + 10% for every week of delay
Penalty: to ensure performance
Limitations
illegal or immoral: VOID only the principal will subsist
no burdensome amount shocking to the conscience court can reduce it

Substitute to damages
When obligation has penal clause, no more Damages can be asked except
1. Debtor refuses to pay the penalty
2. Debtor = dolo/fraud
3. Stipulated
5) Divisible Obligation and Indivisible Obligation
Divisible Obligation
o capable of partial performance
o part which is not affected by the impossible of unlawful conditionVALID
o deemed divisible
obligation has for its object the execution of a certain number of days of work
obligation has for its object the accomplishment of work by metrical units
analogous things which by their nature are susceptible of partial performace
Indivisible Obligation
o not capable of partial performance by its nature or by law or agreement of the parties
o deemed indivisible
obligations to give definite things
not susceptible of partial performance
where the object or service is physically divisible but it is indivisible by provision of law
where the object or service is physically divisible but it is indivisible by the intention of the parties
6) Obligation with a penal clause
o one which provides for a greater liability on the part of the debtor in case of non-compliance
o penal clause = accessory undertaking on the part of the debtor
Functions of Penal Clause
1. to provide for liquidated damages
2. to strengthen the coercive force of the obligation by a threat of greater responsibility in the event of breach

Kinds of Penal Clause

1. Legal and Conventional
a. Legal imposed by law
b. Conventional imposed by the agreement of the parties
2. Subsidiary and Joint
a. Subsidiary when only the penalty may be enforced
b. Joint when both the obligation and the penalty may be enforced
General Rule: The penalty takes the place of the damages and interest in case of
non-compliance
Exceptions:
1. when there is a stipulated to that effect
2. when the debtor refuses to pay the penalty
3. when the debtor is guilty of fraud in the performance of the obligation
When the court may reduce the penalty?
1. when the obligation has been partly complied with by the debtor
2. when the obligation has been irregularly compiled with by the debtor
3. when the penalty is iniquitous or unconscionable even if there has been no performance
Effect of nullity of principal obligation, penal clause
1. nullity of principal obligation carries with it the nullity of the penal clause penal clause is accessory
undertaking and cannot stand by itself
2. nullity of the penal clause does not carry with it that of the principal obligation principal obligation can stand
by itself
B. Secondary Obligations
1) Real Obligation and Personal Obligation
2) Unilateral Obligation and Bilateral Obligation
3) Individual Obligation and Collective Obligation
4) Positive Obligation and Negative Obligation
Positive Obligation
o condition that some event happen at a determinate time

o obligation is extinguished as soon as the time expires or it has become indubitable that the event will not
place
Negative Obligation
o condition that some event will not happen at a determinate time
o obligation becomes effective the time has elapsed or it has become evident that the event will not occur
5) Accessory Obligation and Principal Obligation
6) Conventional Obligation and Legal Obligation
7) Civil Obligation and Natural Obligation
EXTINGUISHMENT OF OBLIGATIONS [PoLoCo3NO]
1) Payment or Performance
o How must the payment be made
1. There must be delivery of the thing or rendition of the service that was contemplated
a. The debtor of a thing cannot compel the creditor to accept a different one although the latter may be of the
same value as, or more valuable than that which is due
b. To do or not to do: An act or forbearance cannot be substituted by another act or forbearance against the
obligees will.
c. To give a generic thing: the creditor cannot demand a thing of superior quality; debtor cannot deliver a
thing of inferior quality
d. Monetary obligation: legal tender
2. The payment or performance must be complete
a. Substantially performed in good faith: obligor may recover as though there had been strict and complete
fulfillment, less damages suffered by the oblige
b. obligee accepts the performance (incomplete or irregularity) without any protest: obligation is deemed fully
complied with
o Review
to give
determinate thing
indeterminate thing
to do

 not to do
o Monetary Obligation
Legal Tender (Php) Creditor cant refuse; otherwise,
consignation
Paper Bills any amount
Coins
P5 and P1 P1,000 only
Below P100 only
x check is not a legal tender unless it was realized
Foreign Currency (No as a rule) YES, if stipulated and if conversion (Exchange rate at the time of payment
except, 1stipulated rate or 2extraordinary inflation
Special modes of Payment
Dacion en pago or Donation in Payment payment in
kind; Debtor (solvent) ; Creditor (1 only) Obligation automatically extinguished
Assignment in favor of creditors or Cession debtor is
insolvent; Creditors (2 or more) not yet extinguished until accounting (governed by
insolvency law); the debtor abandons all his properties except those which are exempt from
execution; the creditors accept the abandonment.
Payment by cession = abandonment or assignment by the debtor of all his property in favor of his
creditors so that the latter may sell them and recover their claims out of the proceeds.
Payment by cession
1. There must be two or more creditors
2. The debtor is insolvent
3. Affects all the debtors properties except those
exempt from execution
4. The creditors are authorized to sell only the
debtors properties
5. The debtor is not released as a rule

Dation in Payment
1. Plurality of creditors is not required
2. The debtor may not be insolvent
3. Does not affect all the debtors properties
4. The creditor becomes the owner of the
properties given as payment
5. The debtor is released as a rule

Tender of Payment and Consignation Judicial Deposit

o Tender of payment = act of the debtor of offering to his creditor what is due him

o Consignation = act of depositing the sum or thing due with the judicial authorities whenever
the creditor refuses without just cause to accept the same or in the cases when the creditor
cannot accept it.
o Debtor offer to pay but creditor refuses to accept without valid cause Debtor can go to
court and pay there.
o No valid consent unless there is a valid tender of payment (1st) except: Rule: Consignation is
not automatic. [CLURITS]
i.
Court Order
ii.
Location of Creditor
iii.
Unknown Creditor
iv. Refuses to issue receipt from Creditor
v. Incapacitated (Creditor)
vi.
Two or more persons claimed to be the creditor
vii.
Stipulated
Application of Payment
o 1 Debtor and 1 Creditor
o 2 or more debts (1due and 2demandable)
x Example: P100K (10%) and P200K (15%) Debtor has P50K
1. Debtor option (1st)
2. If not Creditor
a. Apply most onerous
Pay all
b. Apply proportionally
interest first
o Debtors payment is incomplete
Persons involved
1. Payor Principal Debtor or Promissory Note (maker) or Bills/Checks (drawee or acceptor) successor in
interest, heirs, assigns, estate 3rd parties? yes: effects
i. with interest in the fulfillment of obligation (example: Guarantor =
1
creditor cant refuse; 22 effects in payment: areimbursement and
b
subrogation)
ii. total stranger
a. with consent of the debtor (same as guarantor above)
b. without consent of debtor
i. creditor can refuse

ii. if accepted: reimbursement only in so far as it

benefited to the debtor
2. Payee
Principal Creditor or Holder in due course
3rd person: rule: NO except [ERA2]
i. Creditor is estopped
ii. Ratified by creditor
iii. Redounded for creditors benefit accounting law
iv. 3rd person: acquired the creditors rights Subrogation
2) Loss of the thing due
3 Types of Loss
i.
Perishes Physical Loss
ii.
Goes out of Commerce Legal Loss
iii.
Disappears (unknown where) Civil Loss
1. without debtors fault extinguished
2. with debtors fault remedies
Effect on Obligation
1. Loss of a determinate thing extinguishes the obligation, except when:
fault of the debtor
debtor has incurred in delay
stipulated by the parties
nature of the obligation requires the assumption of risk
debt proceeds from a criminal offense
when so provided by law when debtor has promised to deliver the same thing to two or more persons
who do not have the same interest
2. Loss of a generic thing do not extinguish the obligation (genus nunquam perit)
except deliminated generic thing
3. Loss in personal obligations (obligation to do)
Obligation is extinguished when prestation becomes legally pr physically impossible without the fault of
the debtor
When the service has become so difficult as to be manifestly beyond the contemplation of the parties, the
obligor may also be released in whole or in part.

3) Condonation or Remission
Gratuitous or forgiveness of debtors obligation by the creditor debtors consent
Taxable gift (Donors tax) creditor
KINDS
i. As to amount or extent
1. Total when the total obligation (principal and accessory) is remitted
2. Partial when only a part of obligation is remitted
ii. As to form
1. Express made orally or in writing valid
immovable property remission and acceptance must be in public instrument
Movable or personal property
o More than 5,000 must be in writing
o Less than 5,000 in any form
2. Implied inferred from the conduct of the parties
when creditor voluntarily delivers the private document evidencing the credit to the
debtor (Presumed)
o The accessory obligation of pledge is presumed remitted but not the principal obligation
o The remission of the principal debt extinguishes the accessory obligation (accessory follows the principal
rule)
o The remission of the accessory obligation does not carry with it that of the principal debt
4) Confusion or Merger of Rights
Person became debtor and creditor of himself
Merger when there is a guarantor
takes place in the principal debtor or creditor benefits the guarantors both the principal obligation and the
guaranty are extinguished
takes place in the person of the guarantor does not extinguish the obligation guaranty is only
extinguished
Merger in a joint obligation extinguishes only the share of the joint debtor or creditor in whom the characters
of debtor and creditor concur
Merger in a solidary obligation extinguishes the whole obligation
o Solidary debtor can demand reimbursement from his co-debtors
o Solidary creditor liable to his co-creditors for the share corresponding to each of them

Example: A pivote to B X Y Z A
Z is guarantor of A? No, because secondary
Z is surety of A? Yes, due to solidary

5) Compensation or Set-off (Simplified payment or Abbreviated Payment)

2 persons became debtor and creditor of each other
2 kinds
1. Legal Creditor Automatic When?
i.
both debts due and demanded
ii.
both debts due has the same amount or kind
2. Conventional Creditor not automatic (Parties must agree)
3. Judicial ordered by court
4. Facultative may be claimed or opposed by one of the parties
when one of the debts arises from a deposit
when one of the debts arises from the obligations of a bailee in commodatum
when one of the debts arises from a claim for support by gratuitous title
when one of the debts consists in civil liability arising from a penal offense
6) Novation (before due and demandable)
New debtor =
insolvent
Novate = to change only
Revive old obligation
i. subject
1
debtors side
o Delegacion new debtor with old debtors consent
if insolvent Rule: NO except
old debtor is in bad faith = YES
old debtor: public knowledge = YES
o Expromision new debtor without old debtors consent
2
creditors side
o Legal or Subrogation
o Convention agreement of parties
ii. object 1full and 2partial

Requisites of novation

1. there must be a previous valid obligation

2. there must be an agreement between the parties to modify or extinguish the obligation, except:
when a creditor pays another creditor who is preferred, even without the debtors knowledge
when even without the knowledge of the debtor, a person interested in the fulfillment of the
obligation pays, without prejudice to the effects of confusion as to the latters share
3. there must be the extinguishment of the old obligation
4. there must be validity of the new obligation
Kinds of novation
1. According to object or purpose
a. Real or objective changing the object or principal condition
b. Personal or subjective change of parties
i. Substituting the person of the debtor (w/ creditors consent)
1. Expromision third person initiates the substitution and assumes the obligation even
without the knowledge or against the will of the debtor
Rights of new debtor if he makes payment the new debtor can only recover insofar
as the payment has been beneficial to the debtor
If new debtor is insolvent or does not fulfill obligation shall not give rise to any
liability on the part of the original debtor
2. Delegacion debtor initiates the substitution, w/c requires the consent of all parties
Rights of new debtor if he makes payment can recover what he has paid and is
entitled to subrogation
If new debtor is insolvent the creditors right to proceed against the original debtor
is not revived except when:
when the insolvency of the new debtor was already existing and of public
knowledge when the original debtor delegated his debt
when the insolvency of the new debtor was already existing and known to the
original debtor at the time he delegated his debt
ii. Subrogating a third persons in the rights of the creditor
1. Conventional Subrogation change of creditor by the agreement of the parties
2. Legal Subrogation by operation of law presumed when:

 creditor pays another creditor who is preferred even without the debtors
knowledge
a third person, not interested in the obligation, pays with the express or tacit
approval of the debtor
even without debtors knowledge, a person interested in the fulfillment of the
obligation pays without prejudice to the effects of confusion as to the latters
share
3. Mixed change of object and parties to the obligaiton
2. According to form
a. Express novation declared in unequivocal terms parties inconvertibly disclose that their object
in executing the new contract is to extinguish the old one
b. Implied when old and new obligation are not every point incompatible with each other
3. According to extent
a. Total or extinctive old obligation is total extinguished
b. Partial or modificatory old obligation still remains in force except as it has been modified
New obligation = VOID novation is void
Original obligation = VOID no obligation to extinguish = non-existent
Original obligation = VOIDABLE novation is valid provided that annulment may be claimed only by the
debtor or when ratification extinguishes acts which are voidable = novation cures whatever defects
Original obligation is subject to a suspensive or resolutory condition new obligation shall be subject to the
same condition unless otherwise stipulated by the parties
7) Other analogous modes (Secondary Modes) [CHIP / FRAM2D]
a. Compromise
b. Happening of Fortuitous Events or Resolutory Condition
c. Illegality or Impossibility
d. Prescription
i. Written Contracts = 10 years
ii. Oral Contracts = 6 years
e. Full resolutory condition
f. Rescission
g. Annulment
h. Mutual Desistance
i. Marriage of the parties

j. Death
ANSWERS
I.

Identification
1. Subject person or person
2. Legal or Civil personality
3. Contractual Capacity or Legal or Civil Capacity
4. Law
5. Accessions
6. Accessories
7. Moral Solvendi or Debtors delay
8. Res perit Domino
9. Culpa Aquiliana or
10. Dolo Incidente
11. Legal tender
12. Indivisibility of Payment Rule
13. Cession
14. Consignation
15. Unjust Enrichment
16. Confusion
17. Compensation
18. Condonation
19. Subjective Novation
20. Prescription

II.

True or False and Matching Type

30.
31. False
32. False
33. False = facultative
34. True
35. False = debtor
36. False

37. False = always, as a rule

38. False = from the time the obligation arises
39. False = resolutory happening terminates obligation
40. True
41. False = future fraud = Void culpa=valid (Waiver civil aspect); past f&C=valid but not criminal aspect =
government only)
42. False = both debtor and creditor
43. True = which he owes him; valid but court fixes period
44. False = never presume
45. False = essentially; not generally gratuitous
46. False = with his knowledge
47. False = application of payment
48. True
49. False = quasi contract
50. False = not voluntary; principle of recovery
51. C
52. C
53. A (S1=specific performance; S2=substituted performance)
54. D
55. A
56. C
57. D
58. A
59. C
60. D
61. B (S1=joint)
62. C (S1=obligation is created S2=void)
63. C (S1=can change S2=next year dont know when to happen)
64. B
65. D
66. C
67. A
68. D
69. D
70. D (S1 = suspensive or resolutory)

71. A (If acted in bad faith it will be C)

72. B (S1=compliance S2=with respect to time = delay)
73. C (substituted performance because generic)
74. C (Fault of Creditor thats why debtor cannot choose)
75. A (B, C, D gestor at fault)
76. A (S1=penal clause S2=facultative)
77. A (If there is demand C)
78. D
79. A
80. C
81. D
82. C
83. D (Alternative obligation = complex obligation 2: 1Simple Obligation when? choice is common to other
parties and all are lost expect 1 without fault; 21 or some or all = lost before simple obligation *Debtors choice
(if silent) as long as long as/ is left = choose remedies ones; All are lost without debtors fault = extinguished; if
with debtors fault = cash last one lost plus damages
84. C
85. C
86. D
87. D (if can B)
88. A
89. A
90. D
91. C
92. D
93. D
94. C
95. D
96. C
97. B
98. C
99. C
100. D
101. C
102. C (mutuum =simple loan debtor and creditor relationship)

103.
104.
105.
106.
107.
108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.

B
A
C (it must be the debtor who will withdraw in the court)
B (S1= S2=cannot and conventional)
D (S1= illegal obligation S2=object inexistent VOID)
A
B (deligacion in good faith effect like expromission; keyword: NEVER)
A
D
D
D
C
B (S1=just before novation; S2=substitution no effect)
B(S1=integrity of payment rule; S2= with acceptance)
B(S1= obligation is created; S2=not presumed)
D (subrogation theres 3rd parties)
A(impossibility of performance; if with fault D)
C