Documente Academic
Documente Profesional
Documente Cultură
CIVIL OBLIGATION
NATURAL OBLIGATION
5 SOURCES OF OBLIGATION
1. LAW
2. CONTRACTS
3. QUASI-CONTRACTS arise from
lawful, voluntary acts
; no one shall be unjustly
enriched...
2 Kinds
it
a.
Solutio indebiti
something received (delivered on a mistake), no right to demand
b.
Negotiorum gestio
voluntary mgt of property/affairs of another w/o his
knowledge/consent
Exception:
When law/stipulation of parties requires a differnt standard of care
(slight/extraordinary diligence).
But NO real right (right enforceable against the whole world) until it is delivered.
3 KINDS OF FRUITS
1. NATURAL w/o human intervention
2. INDUSTRIAL w/ human intervention
3. CIVIL derived by virtue of juridical relation
Creditors rights if debtor fails to comply w/ the obligation
1. Determinate
a. Performance
b. Damages
2. Generic
a. Performance
b. Damages
c. Obligation be complied at debtors expense
Creditors rights if debtor does in contravention
1. Damages
2. Ask it be UNDONE at debtors expense
FORTUITOUS EVENT
cannot be foreseen, if foreseen, inevitable
General Rule:
No person liable to fortuitous event.
Exceptions:
1. Law states
2. Stipulation/contract states
3. Assumption of risk
4. Delay
5. Debtor promises deliver to 2/more persons who do not have same interest (bad
faith)
EFFECTS OF FORTUITOUS EVENT to thing to be delivered
- extinguish the obligation if determinate; generic does not extinguish the obligation
3 MISCELLANEOUS RULES ON PERFORMANCE OF OBLIGA-TION
1. When to deliver
determinate,
accessions (additions/ improvements) and accessories
(joined/included with the principal) are INCLUDED even not mentioned.
2. If debtor fails
to do
, it shall be DONE AT HIS EXPENSE, same with doing the
contravention; poorly done be undone.
3. In obligation
not to do
, and obligor does what is forbidden, shall be UNDONE AT HIS
EXPENSE.
c.
Compensatio Morae
delay of both in reciprocal obligation
CONCEPT OF DELAY
General Rule:
No demand, No delay
Exceptions:
1. Law states
2. Obligation states
3. Time is the essence
4. Demand be useless if delay
5. Debtor guilty of delay
EFFECTS OF DELAY
1. Damages
2. When to deliver determinate thing, STILL LIABLE in fortuitous event.
2. FRAUD/DOLO
conscious, deliberate, intentional evasion of fulfillment
2Kinds
a.
Dolo causante/Causal fraud
fraud in obtaining consent; consent is defective,
b.
Dolo incidente/Incidental fraud
fraud w/c vitiates consent. Remedy: damages
3. NEGLIGENCE/CULPA
voluntary act/omission; no bad faith intended
3Kinds
a.
Culpa aquiliana/Civil negligence
quasi-delict/torts
b.
Culpa contractual/Contractual negligence
breach
c.
Culpa criminal/Criminal negligence
crime/delict
1. Law states
2. Contract states
3. Obligation is purely personal
10 Kinds of Obligation
1. Pure
2. Conditional
3. Alternative
4. Facultative
5. Joint
6. Solidary
7. Divisible
8. Indivisible
9. Obligation w/ a period
10. Obligation w/ a penal clause
1. PURE OBLIGATION
- w/o condition, demandable at once (pure has resolutory condition/period)
2. CONDITIONAL OBLIGATION
- there is condition in performance; future & uncertain
2Kinds
a.
Suspensive condition
happening of condition gives RISE to obligation
b.
Resolutory condition
happening of condition EXTINGUISHES obligation
a.
w/ debtors fault
damages
b.
w/o debtors fault
extinguishes obligation
2. DETERIORATION
a.
w/ debtors fault
- (1) cancel obligation & damages; or (2) fulfill obligation w/
damages
b.
w/o debtors fault
creditor suffer impairment
3. IMPROVEMENT
a.
By nature/time
benefit to creditor
b.
at expense of debtor
debtor no right than that granted to usufructuary (debtor no
right to compensate amount for improvement)
2.
In unilateral obligation
, debtor gets fruits & interests unless there is a contrary intent.
3 EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION
1. Extinguish obligation.
2. Both parties restore what they received plus fruits & interests.
3. The rule on L, D, or I will apply to person who has to return the thing.
When one of debtors in reciprocal obligation does not comply w/ his obligation
1. The right of injured party is (1) cancel contract & damages; or (2) fulfill obligation &
damages
3 Kinds of Obligation (Accdng to PERSON OBLIGED)
1. UNILATERAL only 1 party obliged to comply
2. BILATERAL both parties; performance not same time
3. RECIPROCAL both parties; performance same time
3. OBLIGATION W/ A PERIOD
- demandability/extinguishment subject to the expiration of period
PERIOD
interval of time; either suspends demandability or produces extinguishment
DAY CERTAIN
must come, not known when
CONDITION
certain
uncertain
future only
demandability
obligation itself
FACULTATIVE OBLIGATION
sufficient
subtituted
creditor
If 1 of the prestation is illegal, others may
accessory/
substitute
But if substitution is already made, debtor is liable for loss of substitute when in DELAY,
NEGLIGENCE, or FRAUD.
6. JOINT OBLIGATION
- obligation is to be paid
proportionately
by debtors or to be demanded
proportionately
by creditors
7. SOLIDARY OBLIGATION
- each one of debtors has right to render or each one of creditors has right to demand
the
entire compliance
w/ prestation
MAXIMS & SYNONYMS
MAXIMS
SYNONYMS
JOINT Obligation
proportionate
SOLIDARY Obligation
- prestation
incapable
of partial performance
10. OBLIGATION W/ A PENAL CLAUSE
1. Stipulation states.
2. Debtor refuse to pay penalty.
3. Debtor guilty of fraud in performance of obligation.
NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL CLAUSE
Nullity of principal obligation = nullity of penal clause
Nullity of penal clause = NOT nullity of principal obligation
10 MODES OF EXTINGUISHMENT OF OBLIGATIONS
1. Payment or performance
2. Prescription
3. Compensation
4. Confusion/merger
5. Condonation/remission
6. Fulfillment of resolutory condition
7. Annulment
8. Rescission
9. Novation
10. Loss of thing due
1. PAYMENT/PERFORMANCE
- Payment means delivery of money & performance of obligation
2 PLACE OF PAYMENT
1. At place agreed upon
2. If w/o agreement
a. Object is
indeterminate
paid at domicile of DEBTOR
b. Object is
determinate
place of thing at the time of constitution of obligation
4 SPECIAL MODES OF PAYMENT
a. Application of payment
b. Cession
c. Tender of payment & consignation
d. Dacion in payment
a. APPLICATION OF PAYMENT
- designation of debt
to
w/c payment must be applied
1. Consent of creditor
2. NOT prejudicial to another creditor
3. Debtor not insolvent declared by a judicial decree
CESSION
DACION IN PAYMENT
all properties
act of novation
transfer ownership
requires partial/total
insol-vency
CONSIGNATION
act of depositing thing due w/ the court when creditor
cannot/refuses acceptance of payment
5 REQUISITES OF CONSIGNATION
1. Debt due.
2. Creditor refused the tender of payment w/o just cause
3. Notice of consignation already given to persons interested in fulfillment of
obligation
4. Consignation of thing/amount due
5. Subsequent notice of consignation to interested persons
5 VALID CONSIGNATION W/O PREVIOUS TENDER OF PAYMENT
1. Creditor is absent/unknown.
2. Creditor is incapacitate to receive at time it is due.
3. Creditor refused give a receipt, w/o just cause.
4. 2 or more persons claim the right to collect.
5. Title of obligation lost.
rd
3. No retention/controversy by 3 person.
4. 2 debts are due & demandable.
5. 2 debts are liquidated.
6. 2 debts both in money/consumable things.
(2) CLASSES OF COMPENSATION
1. As to effect
b.
Subrogation
change of creditor
3. Changing person of the parties & the objects of principal condition. (MIXED
NOVATION)
4 REQUISITES OF NOVATION
1. Old valid obligation.
2. Agreement of parties to new obligation.
3. Extinguishment of old obligation.
4. Validity of new obligation.
2 FORMS OF NOVATION BY SUBSTITUTION OF DEBTOR
1. EXPROMISION w/ consent of creditor, NO consent of old debtor
2REQUISITES
rd
a. Initiative of 3 person.
b. Consent of creditor.
2. DELEGACION all must agree (creditor, old debtor, new debtor)
3REQUISITES
rd
1.
CONVENTIONAL
consent of original parties & 3 person
2.
LEGAL
by law
rd
b. 3 person pays the express approval of debtor
rd
c. 3 person pays even w/o knowledge of debtor
CONTRACT
meeting of minds between 2 persons to give something or to render
service.
3 ELEMENTS OF CONTRACT
1.
ESSENTIAL
w/o them, contract cannot exist
a. CONSENT of contracting parties
3.
ACCIDENTAL
various particular stipulations that may be agreed upon by
contracting parties
rd
- stipulation in
favor of 3 person
5 REQUISITES OF STIPULATION POR AUTRI
rd
1. Stipulation in favor of 3 person
2. Stipulation is only PART, not the whole of the contract.
rd
3. Both parties must conferred upon a favor of 3 person
rd
4. 3 person must accept & say it to debtor before its revocation/cancellation
rd
5. Neither of both parties be the legal representation/autho-rization of 3 person
CONSENT
- meeting of
offer (certain) & acceptance (absolute)
upon a thing
5 REQUISITES OF CONSENT
2. Business advertisements for sale are NOT offers but ONLY invitations to make an
offer.
5. An
offer
made through an a
gent
is accepted from the TIME the acceptance is done
through an
agent
.
6. An
offer
is
ineffectiv
e upon death, insanity, insolvency, of EITHER party BEFORE
acceptance is made.
7. When
offeror
allowed
offeree
a certain period to a
ccept
,
offer
MAY be withdrawn AT
ANYTIME unless there is something PAID/PROMISED.
1. UNEMANCIPATED MINORS
2. INSANE/DEMENTED PERSONS (unless they acted DURING LUCID INTERVAL)
3. DEAF-MUTES who DO NOT know how to write
DEMENTED PERSON
NOT exactly insane; difficult to distin-guish right from wrong
LUCID INTERVAL
period when an INSANE has acquired SANITY
temporarily
,
therefore, capacitated to enter into a valid contract
5 VICES OF CONSENT
-
NOTE:
When there is a DEFECTIVE CONSENT of EITHER of parties, contract is
voidable
; Remedy:
annulment of contract.
1. MISTAKE/ERROR
2. FRAUD/DECEIT
3. VIOLENECE
4. INTIMIDATION
5. UNDUE INFLUENCE
1. MISTAKE/ERROR
- wrong conception & lack of knowledge upon a thing
(2) MISTAKES W/C VITIATES CONSENT
It should refer to:
1.
substance of thing
that is the OBJECT of contract
2.
conditions
w/c MOVED either/both parties to enter into contract
4 RULES ON MISTAKE
1.
Mistake to identity/qualifications
of either of parties will vitiate consent ONLY when IT
is the
principal cause of contract
.
3.
No mistake
if parties knew the risk/doubt affecting OBJECT of contract.
4. When one of parties is unable to read or the contract is in language not understood
by him, & mistake/fraud is alleged, the person enforcing the contract must FULLY
explained the terms to him.
2. FRAUD/DOLO
- when through
insidious words/machinations
of one of the parties, INDUCED the other
to enter into a contract, & w/o them, he will not agree.
DOLO CAUSANTE
DOLO INCIDENTE
Serious
Not serious
make contract
voidable
7 RULES OF FRAUD
1. Failure to disclose facts when these needs to be revealed, is a fraud.
2. Fraud should be SERIOUS (dolo causante) & SHOULD NOT be done by BOTH
parties to make contract v
oidable
.
5. A
mere expression of opinion
is NOT FRAUD UNLESS made by an e
xpert
& the other
party relies on
his special knowledge.
6.
Misrepresentation made in good faith
is NOT FRAUD but may constitute an e
rror.
rd
7.
Misrepresentation by 3 person
DOES NOT vitiate consent UNLESS it created
substantial mistake
.
3. VIOLENCE
-
serious/irresistible force
is employed.
2 RULES ON VIOLENCE
1.
Serious/irresistible force
is employed w/c constitutes the reason why one entered into
a contract.
rd
2. Violence ANNULS obligation although it is DONE by 3 person not part of contract.
4. INTIMIDATION
- 1 of the parties is compelled by a
reasonable & well-grounded fear of an imminent &
grave evil
upon his person/property to give his consent.
3 RULES ON INTIMIDATION
1.
Age, sex, & condition of person
must used to determine the degree of intimidation.
rd
2. Intimidation ANNULS obligation although it is DONE by 3 person not part of
contract.
3. A
threat to enforce ones claim
(claim must be just & legal), DOES NOT vitiate consent.
VIOLENCE
INTIMIDATION
External
Internal
Physical
contact/coercion
5. UNDUE INFLUENCE
- a person takes
improper advantage of his power
over others will, depriving the other to
his
reasonable freedom of choice.
rd
2. Undue influence ANNULS obligation although it is DONE by 3 person not part of
contract.
3. To constitute undue influence, ff circumstances must be considered: (1) confidential,
family, spiritual, & other relations of parties; or (2) the aggrieved party is suffering from
mental weakness; or (3) ignorant; or (4) in financial distress.
SIMULATION OF CONTRACT
- process of INTENTIONALLY deceiving others by producing a contract not really exist
(absolute simulation), or w/c is different from true agreement (relative simulation).
2 KINDS OF SIMULATED CONTRACT
1.
ABSOLUTE SIMULATION
(the parties DO NOT intend to be bound at all)
- completely fictitious/make-believe; VOID
2.
RELATIVE SIMULATION
(parties conceal their true/real agreement)
- parties are bound to real/true agreement,
EXCEPT:
rd
a. contract prejudice 3 person
b. purpose is contrary to law, morals, good customs, public order, public policy
7 REQUISITES OF OBJECT OF CONTRACT
1. Specific & certain
2. Services not contrary to law, morals, good customs, public order, public policy
3. Services/things must NOT be legally/physically impossible
4. Services/things are
w/in commerce of man including future things
5. Rights are NOT TRANSMISSIBLE.
4. It is true.
LESION
- inadequacy of cause (eg. insufficient price for thing sold)
RULES ON LESION
- Lesion DOES NOT invalidate contract, except there is:
a. Fraud
b. Mistake
c. Undue influence
2 FORM OF CONTRACTS
1. Contracts in writing
2. Contracts in a public instrument
1. Contracts w/c must be IN WRITING to be valid:
a. Donation of personal property exceeds P5000.
b. Agents authority in sale of land/any interest.
c. Contract of antichresis.
d Stipulation to pay interest on loans.
e. Stipulation to reduce common carriers extraordinary diligence & to limit its
liability.
2.
Contracts w/c must be IN A PUBLIC INSTRUMENT to be valid:
a. Donation of real property (both the donation & accep-tance).
b. Sale of real property.
c. Partnership where real property/rights is contributed; or when capital contribution
exceeds P3000.
REFORMATION OF INSTRUMENTS
- REMEDY in equity in w/c a written instrument is made/construed to the REAL
intention of parties when there is ane
rror/mistake.
3. One party was mistaken & the other knew/believed that the instrument did not state
their REAL agreement.
4. Ignorance, lack of skill, negligence, or bad faith of person drafting the instrument
DOES NOT state the TRUE INTENTION of parties
5. Two parties agree on mortgage/pledge of personal/real property BUT the
instrument states the property is sold ABSOLUTELY, or w/ the right to repurchase.
(3) NO REFORMATION OF INSTRUMENT WHEN:
1. Simple donation inter vivos where NO CONDITION is imposed.
2. Will.
3. Real agreement is VOID.
4 KINDS OF DEFECTIVE CONTRACTS
1.
RESCISSIBLE
valid until rescinded; has ALL essential requisites but because of
injury/damage
to one of the parties, the contract may be rescinded.
2.
VOIDABLE
valid until annulled; has ALL essential requisites but because of
defect
in consent, contract may be annulled.
3.
UNENFORCEABLE
cannot be sued/enforced u
nless ratified
; no effect NOW but
4
. VOID
NO effect at all; c
annot be ratified/validated.
5 RESCISSIBLE CONTRACTS
1. Those entered in name of other person, or who acted BEYOND his powers.
2. Those who do not comply w/ the
Statute of Frauds
.
3.
Both parties
are incapable of giving consent to a contract.
7 VOID/INEXISTENT CONTRACTS