C8LlCA1lCnS Anu CCn18AC1S

WhaL ls an obllgaLlon?
CbllgaLlon ls a [urldlcal necesslLy Lo
glve Lo do or noL Lo do
8LCulSl1LS
1 vlnculum [urls or [urldlcal Lle Lhe efflclenL cause
esLabllshed by varlous sources of obllgaLlons (law
conLracLs quaslconLracLs dellcLs quasldellcLs) may
arlse elLher from bllaLeral or unllaLeral acLs ofpersons
2 AcLlve sub[ecL one who can demand Lhe fulflllmenL
of Lhe obllgaLlon aka obllgee/credlLor
3 asslve sub[ecL from whom Lhe obllgaLlon ls
[urldlcally demandable aka obllgor/debLor
noLe sub[ecLs perLaln Lo boLh naLural and [urldlcal
persons
4 ob[ecL Lhe presLaLlon or conducL requlred Lo be
observed by Lhe debLor ( Lo glve Lo do or noL Lo
do) Lhe presLaLlon ls noL a Lhlng
8equlslLes of presLaLlon
a lL musL be llclL
b lL musL be physlcally and [udlclally posslble
c lL musL be dermlnaLe or deLermlnable and
d lL musL have a posslble equlvalenL ln money
noLe lC8M ls someLlmes added as a flfLh
requlslLe buL as a general rule however lL
cannoL be consldered as essenLlal
SCu8CLS (arL 1137)
1 Law
2 ConLracLs
3 CuaslconLracLs
4 uellcLs
3 quasldellcLs
noLe Lhe llsL of sources ls LxCLuSlvL
PCWLvL8 1olenLlno glves anoLher source
unlLA1L8AL 8CMlSL lL may be based on (1)
conLracL or (2) law
When ls law Lhe source of obllgaLlon? when Lhe
obllgaLlon ls provlded by express provlslon of
law
Lxample obllgaLlon Lo supporL chlldren spouse
parenLs broLhers or slsLers lL ls expressly
provlded ln Lhe famlly code
When ls obllgaLlon arlslng from law
demandable? lL ls lmmedlaLely demandable
CCn18AC1S
CbllgaLlons arlslng from conLracLs have Lhe force of law
beLween Lhe conLracLlng parLles and should be
complled wlLh ln good falLh(arL 1139)
Comp||ance |n good fa|th ls performance ln accordance
wlLh Lhe sLlpulaLlon clauses Lerms and condlLlons of
Lhe conLracL
1he terms of the contract deLermlne Lhe respecLlve
obllgaLlons of Lhe parLles LhereLo lf Lhe Lerms of a
conLracL are clear and leave no doubL upon Lhe
conLracLlng parLles' lnLenLlon such Lerms should be
applled ln Lhelr llLeral meanlng
ConLracL
obllgaLlon arlslng from conLracL or agreemenL ls Lhe
law beLween Lhe parLles
lL ls enforceable agalnsL boLh of Lhem
arLles can esLabllsh Lerms condlLlons or
sLlpulaLlons provlded lL ls noL conLrary Lo law morals
good cusLoms publlc order or publlc pollcy
1hls freedom Lo sLlpulaLe ls called auLonomy of
conLracL
ConLrary Lo law an agreemenL Lo sell marl[uana ls
conLrary Lo Lhe dangerous drugs law
ConLrary Lo morals agreemenL Lo engage ln
prosLlLuLlon
ConLrary L good cusLom agreemenL llve wlLhouL
marrlage
ConLrary Lo publlc order an agreemenL LhaL defy
publlc auLhorlLles
ConLrary Lo publlc pollcy an agreemenL Lo sell
properLy covered by emanclpaLlon paLenL or free
paLenL wlLhln Lhe prohlblLory perlod of flve years
CuASlCCn18AC1S
1hese [urldlcal relaLlons arlslng from lawful volunLary
and unllaLeral acLs by vlrLue of whlch Lhe parLles
become bound Lo each oLher based on Lhe prlnclples
LhaL no one shall be un[usLly enrlched or beneflLed aL
Lhe expense of anoLher (arL 2142)
CuaslconLracL vs oLher Sources
1 Lhe acL glvlng rlse Lo quaslconLracL ls lawful unllke
ln dellcLs
2 lL ls volunLary whlle quasldellcL ls based on faulL or
negllgence
3 lL ls unllaLeral whlle a conLracL ls based on agreemenL
lnds of quaslconLracLs
1 negoLlorum gesLlo volunLary managemenL of Lhe
properLy or affalrs of anoLher wlLhouL Lhe knowledge
or consenL of Lhe laLLer
2 SoluLlo lndeblLl [urldlcal relaLlon whlch ls creaLed
when someLhlng ls recelved when Lhere ls no rlghL Lo
demand lL and lL was unduly dellvered by mlsLake (arL
21342163)
3 CLher cases (arL 21642173)
lnuS Cl C8LlCA1lCnS
l vlewpolnL of SancLlon
1 Clvll obllgaLlons glve a rlghL of acLlon Lo
compel Lhelr performance
2 naLural obllgaLlons noL based on poslLlve law
buL on equlLy and naLural law do noL granL a rlghL of
acLlon Lo enforce Lhelr performance buL afLer
volunLary fulflllmenL by Lhe obllgor Lhey auLhorlze
reLenLlon of whaL has been dellvered or rendered by
reason Lhereof
3 Moral obllgaLlons Lhose LhaL cannoL be
enforced by acLlon buL whlch are blndlng on Lhe parLy
who makes lL ln consclence and naLural law
ll vlewpolnL of erformance
1 oslLlve obllgaLlon Lo glve Lo do
2 negaLlve obllgaLlon noL Lo do
lll vlewpolnL of Sub[ecL maLLer
1 personal obllgaLlon Lo do or noL Lo do
2 8eal obllgaLlon Lo glve
a deLermlnaLe or speclflc ob[ecL ls parLlcularly
deslgnaLed or physlcally segregaLed from all
oLher of Lhe same class
b generlc ob[ecL ls deslgnaLed merely by lLs
class or genus
c llmlLed generlc Lhlng when Lhe generlc
ob[ecLs are conflned Lo a parLlcular class eg
an obllgaLlon Lo dellver one of my horses
lv vlewpolnL of person obllged
1 unllaLeral only one parLy ls bound
2 bllaLeral boLh parLles are bound
8lCP1 Cl C8Lul1C8 1C 1PL l8ul1S (arL 1164)
1 before dellvery personal rlghL
2 afLer dellvery real rlghL
ersonal rlghL [us ad rem a rlghL enforceable only agalnsL a
deflnlLe person or group of persons rlghL perLalnlng Lo Lhe
person Lo demand from anoLher as a deflnlLe passlve sub[ecL
Lhe fulflllmenL of a presLaLlon Lo glve Lo do or noL Lo do
8eal rlghL [us ln re a rlghL enforceable agalnsL Lhe whole world
rlghL perLalnlng Lo a person over a speclflc Lhlng wlLhouL a
passlve sub[ecL lndlvldually deLermlned agalnsL whom such rlghL
may be personally enforced
C8LlCA1lCnS Cl 1PL uL81C8
1 ueLermlnaLe
a speclflc performance
b Lake care of Lhe Lhlng wlLh Lhe proper
dlllgence of a good faLher of a famlly unLLSS anoLher
sLandard of care ls requlred by law or sLlpulaLed by Lhe
parLles
c dellver all accesslons and accessorles of Lhe
Lhlng alLhough noL menLloned
d Lo be llable for damages ln case of breach due
Lo delay fraud negllgence or conLravenLlon of Lenor
Lhereof
2 generlc
a Lo dellver Lhe Lhlng of LhaL quallLy lnLended by
Lhe parLles Laklng lnLo accounL Lhe purpose of Lhe
obllgaLlon lnLenL of Lhe parLles and oLher
clrcumsLances Lo dellver a Lhlng LhaL ls nelLher of
lnferlor or superlor quallLy
b Lo be llable for damages ln case of breach due
Lo delay fraud negllgence or conLravenLlon of Lhe
Lenor Lhereof
8lCP1S Cl A C8Lul1C8 ln 8LAL C8LlCA1lCn 1C ClvL
1 ueLermlnaLe
a Lo compel speclflc performance wlLh rlghL Lo
be lndemnlfled for damages
b Lo demand resclsslon of Lhe obllgaLlon wlLh
rlghL Lo recover damages
c Lo demand paymenL of damages when lL ls Lhe
only feaslble remedy
d lf Lhe obllgor delays or has promlsed Lo
dellver Lhe same Lhlng Lo Lwo or more persons who do
noL have Lhe same lnLeresL he shall be responslble for
any forLulLous evenL unLll he has effecLed dellvery
2 Cenerlc
a Lo ask for performance of Lhe
obllgaLlon
b Lo ask LhaL Lhe obllgaLlon be
complled wlLh aL Lhe expense of Lhe debLor
c Lo recover damages ln case of
breach of obllgaLlon
WPLn C8LlCA1lCn 1C uLLlvL8 1PL 1PlnC Anu
1PL l8ul1S A8lSLS?
1 lf Lhe source of obllgaLlon ls law quasl
conLracLs dellcL quasldellcL lL arlses from Lhe
Llme deslgnaLed by Lhe law creaLlng or
regulaLlng Lhem
2 lf Lhe source ls conLracL lL arlses upon
perfecLlon unLLSS Lhere ls a sLlpulaLlon Lo Lhe
conLrary
8lnClLL Cl 8ALAnClnC Cl LCul1lLS AS ALlLu ln
AC1lCnS lC8 SLClllC L8lC8MAnCL
ln speclflc performance equlLy requlres LhaL Lhe
conLracL be [usL and equlLable ln lLs provlslons and
LhaL Lhe consequences of speclflc performance
llkewlse be equlLable and [usL
1he general rule ls LhaL Lhls equlLable rellef wlll noL
be granLed lf Lhe resulL of Lhe speclflc performance
of Lhe conLracL would be harsh lnequlLable
oppresslve or resulL ln an unconsclonable advanLage
Lo Lhe plalnLlff
8lCP1S Cl A C8Lul1C8 ln L8SCnAL C8LlCA1lCnS 1C uC C8
nC1 1C uC"
CSl1lvL L8SCnAL C8LlCA1lCnS (A81 1167)
1he obllgee can
1 have Lhe obllgaLlon performed or execuLed aL Lhe
expense of Lhe debLor/obllgor (excepL when Lhe
presLaLlon conslsLs of an acL where Lhe personal
quallflcaLlons of Lhe obllgor ls Lhe prlnclpal moLlve for
Lhe esLabllshmenL of Lhe obllgaLlon ln such case Lhe
remedy ls an acLlon for damages under arL 1170)
2 ask LhaL whaL has been poorly done be undone
3 recover damages because of breach of Lhe
obllgaLlon
nLCA1lvL L8SCnAL C8LlCA1lCnS( A81 1168)
lf Lhe obllgor does whaL has been forbldden
hlm Lhe obllgee shall have Lhe followlng
remedles
1 Lo have lL undone aL Lhe expense of Lhe
obllgor and
2 Lo ask for damages
nLCA1lvL L8SCnAL C8LlCA1lCnS( A81 1168)
lf Lhe obllgor does whaL has been forbldden
hlm Lhe obllge shall have Lhe followlng
remedles
1 Lo have lL undone aL Lhe expense of Lhe
obllgor and
2 Lo ask for damages
CASLS WPL8L 1PL 8LMLu? C8An1Lu unuL8 A81lCLL 1168 lS
nC1 AvAlLA8LL
1 Where Lhe effecLs of Lhe acL whlch ls forbldden are deflnlLe
ln characLer even lf lL ls posslble for Lhe obllge Lo ask LhaL Lhe
acL be undone aL Lhe expense of Lhe obllgor consequences
permanenL ln characLer and conLrary Lo Lhe ob[ecL of Lhe
obllgaLlon wlll be produced
2 Where lL ls physlcally or legally lmposslble Lo undo whaL has
been undone because of Lhe very naLure of Lhe acL lLself or of a
provlslon of law or because of confllcLlng rlghLs of Lhlrd persons
noLe ln elLher case Lhe remedy ls Lo ask for damages
lnuS Cl 88LACP Cl C8LlCA1lCnS
1 lnvolunLary debLor ls unable Lo comply wlLh hls obllgaLlon
because of forLulLous evenL
noLe debLor ls nC1 llable for damages
2 volunLary debLor ln Lhe performance of Lhe obllgaLlon ls
gullLy of
a defaulL(mora)
b negllgence(culpa)
c fraud (dolo)
d breach Lhrough conLravenLlon of Lenor of Lhe
obllgaLlon
noLe debLor ls llable for damages
l uefaulL (Mora) delay ln Lhe fulflllmenL of Lhe
obllgaLlon wlLh respecL Lo Llme
uelay ln Lhe performance of Lhe obllgaLlon
however musL be elLher mallclous or negllgenL
lf delay ls only due Lo lnadverLence wlLhouL any
mallce or negllgence Lhe obllgor cannoL be
llable under ArL 1170
8equlslLes ln order Lo conslder Lhe obllgor ln defaulL
1 obllgaLlon ls demandable and already llquldaLed
2 Lhe obllgor/debLor delays performance
3 Lhe credlLor requlres performance [udlclally or exLra
[udlclally
noLe ArL 1169 ls appllcable only when Lhe obllgaLlon ls
Lo glve someLhlng oLher Lhan paymenL of money ln
whlch case arL 2209 shall apply
lnds of defaulL
1 Mora solvendl delay of Lhe debLor Lo perform hls
obllgaLlon lL may be
a ex re obllgaLlon Lo glve
b ex persona obllgaLlon ls Lo do
Lhere ls no mora solvendl ln negaLlve obllgaLlon one
can never be laLe ln noL dolng or noL glvlng someLhlng
ln naLural obllgaLlon Lhe performance ls opLlonal on
Lhe parL of Lhe debLor
2 Mora acclplendl delay of Lhe credlLor ln accepLlng
dellvery of Lhe Lhlng whlch ls Lhe ob[ecL of obllgaLlon
requlslLes
a offer of performance by Lhe debLor who has Lhe
requlred capaclLy
b offer ls Lo comply wlLh Lhe presLaLlon as lL should be
performed and
c credlLor refuses Lhe performance wlLhouL [usL cause
3 compensaLlo morae delay of Lhe parLles or obllgors
ln reclprocal obllgaLlon
8ules on defaulL unllaLeral obllgaLlon
general rule demand ls necessary no demand no
delay
Mere explraLlon of Lhe perlod flxed by Lhe parLles wlll
noL cause delay
Powever commencemenL of a sulL ls sufflclenL
demand
LxcepLlons (when demand ls noL requlred Lo be ln delay)
1 when obllgaLlon expressly so declares
2 when Lhe law so provldes
3 when Lhe Llme for fulflllmenL of Lhe obllgaLlon ls of
Lhe essence of Lhe conLracL
4 when demand would be useless as Lhe obllgor has
rendered lL beyond hls power Lo comply
noLe mere sLlpulaLlon of maLurlLy daLe ls noL enough
Lo dlspense wlLh Lhe need Lo demand Lhe words
wlLhouL Lhe need of demand" should appear ln Lhe
face of Lhe lnsLrumenL
ConLracLs wlLh acceleraLlon clause lf Lhere ls defaulL
one can demand for all lnsLallmenL paymenLs however
Lhere sLlll has Lo be a demand from Lhe credlLor
8ule prlor exLra[udlclal demand ls noL necessary before
a sulL may be flled when obllgor defaulLs excepL ln
e[ecLmenL cases and conslgnmenL cases
8eclprocal obllgaLlons creaLed or esLabllshed aL Lhe same Llme
ouL of Lhe same cause and whlch resulL ln muLual relaLlonshlp
beLween Lhe parLles
Ceneral rule fulflllmenL by boLh parLles should be slmulLaneous
one parLy lncurs ln delay from Lhe momenL Lhe oLher parLy
fulfllls hls obllgaLlon whlle he hlmself does noL comply or ls noL
ready Lo comply ln a proper manner wlLh whaL ls lncumbenL
upon hlm
LxcepLlon when dlfferenL daLes for Lhe performance obllgaLlon
ls flxed by Lhe parLles uemand ls necessary only ln such case
noLe lf nelLher parLy complles wlLh hls presLaLlon Lhe defaulL of
one compensaLes for Lhe defaulL of Lhe oLher
LffecLs of delay
1 Mora solvendl
debLor ls llable for lnLeresL ln obllgaLlons Lo pay
money or damages ln Lhe absence of exLra[udlclal
demand Lhe lnLeresL shall commence from Lhe flllng of
Lhe complalnL
uebLor ls llable even for forLulLous evenL when Lhe
obllgaLlon ls Lo dellver a speclflc Lhlng 8uL courL may
equlLably mlLlgaLe damages lf debLor proves LhaL Lhe
loss would have sLlll resulLed even lf he had noL been
ln defaulL
lor generlc Lhlngs debLor may sLlll be compelled Lo
dellver a Lhlng of Lhe same klnd or be held llable for
damages
2 Mora acclpplendl
CredlLor bears Lhe rlsk of Lhe Lhlng due
for obllgaLlon Lo pay money debLor ls noL llable
for lnLeresL from Lhe Llme of credlLor's delay
debLor may be release hlmself from Lhe
obllgaLlon by conslgnaLlon of Lhe Lhlng due
3 CompensaLlo morae
delay of obllgor cancels delay of Lhe obllgee
and vlce versa
no acLlonable defaulL on Lhe parL of boLh
parLles
lf delay of one parLy ls followed by LhaL of Lhe
oLher Lhe llablllLy of Lhe flrsL lnfracLor shall be
equlLably balanced by Lhe courLs
lf lL cannoL be deLermlned who of Lhe parLles ls
gullLy of delay Lhe conLracL shall be deemed
exLlngulshed and each shall bear hls own
damages (arL 1192)
ll lraud (dolo) consclous and lnLenLlonal
proposlLlon Lo evade Lhe normal fulflllmenL of
an obllgaLlon
lmplles some klnd of mallce or dlshonesLy and
cannoL cover cases of mlsLake and errors lf
[udgmenL made ls good falLh
ln such case obllgor can be held llable for
damages
Walver of fraud
1 fuLure fraud cannoL be walved because
lL ls conLrary Lo law and publlc pollcy
2 Walver of pasL fraud ls valld lL can be
deemed an acL of generoslLy WhaL ls
renounced ls Lhe effecL of fraud or Lhe rlghL
Lo lndemnlLy
lll negllgence( culpa) any volunLary acL or omlsslon
Lhere belng no mallce whlch prevenLs Lhe normal
fulflllmenL of an obllgaLlon
lnds of negllgence
1 Clvll negllgence
a culpa conLracLual faulL or negllgence of
obllgor by vlrLue of whlch he ls unable Lo perform hls
obllgaLlon arlslng from a preexlsLlng conLracLl
b culpa aqulllana/quasl dellcL faulL or
negllgence of a person whose fallure Lo observe Lhe
requlred dlllgence Lo Lhe obllgaLlon causlng damage Lo
anoLher
2 Culpa crlmlnal faulL or negllgence ln Lhe commlsslon
of a crlme
ulllgence requlred
1 LhaL agreed upon by Lhe parLles
2 ln Lhe absence of sLlpulaLlon LhaL requlred by
law ln Lhe parLlcular case
3 lf boLh Lhe conLracL and law are sllenL
dlllgence of a good faLher of a famlly
ulllgence of good faLher of a lamlly
1haL reasonable dlllgence whlch an ordlnary
prudenL person would have done under Lhe
same clrcumsLances
nLCLlCLnCL
Lhere ls merely abandonmenL unlnLenLlonal
carelessness or lack of dlllgence
walver of llablllLy of fuLure negllgence ls
allowed unless Lhe naLure of Lhe obllgaLlon or
publlc pollcy requlres exLraordlnary dlllgence
presumed from Lhe breach of a conLracLual
obllgaLlon
llablllLy may be reduced accordlng Lo
clrcumsLances
l8Auu
Lhere ls an lnLenL Lo cause damage or ln[ury
walver of fuLure fraud ls vold
musL be clearly proved
llablllLy cannoL be mlLlgaLed by Lhe courLs
noLe when Lhe negllgence ls so gross LhaL lL
amounLs Lo wanLon aLLlLude on Lhe parL of Lhe
obllgor Lhe laws ln case of fraud shall apply
lf Lhe obllgor acLed ln good falLh he shall be
llable only for naLural and probable
consequences of Lhe breach of obllgaLlon and
whlch Lhe parLles have foreseen or could have
reasonably foreseen aL Lhe Llme Lhe obllgaLlon
was consLlLuLed
lf Lhe obllgor acLed ln bad falLh Lhe
boundarles beLween negllgence and fraud
dlsappear alLogeLher
Cbllgor can be held responslble for all damages
whlch may be reasonably aLLrlbuLed Lo Lhe
nonperformance of Lhe obllgaLlon
Any walver or renunclaLlon whlch ls made ln
anLlclpaLlon of such llablllLy ls null and vold
lf Lhere was conLrlbuLory negllgence of Lhe
obllgee Lhe effecL ls Lo reduce or mlLlgaLe Lhe
damages whlch he can recover
lf Lhe negllgenL acL or omlsslon of Lhe obllgee
was Lhe proxlmaLe cause of Lhe evenL whlch led
Lo damage or ln[ury complalned of he cannoL
recover
8obbery per se llke carnapplng does nC1
foreclose Lhe posslblllLy of negllgence lL may
noL be a forLulLous evenL
lv 88LACP 1P8CuCP
CCn18AvLn1lCn Cl 1LnC8 Cl
C8LlCA1lCn under arL 1170 Lhe
phrase ln any manner conLravene Lhe
Lenor" of Lhe obllgaLlon lncludes noL
only any llllclL acL whlch lmpalrs Lhe
sLrlcL and falLhful fulflllmenL of Lhe
obllgaLlon buL also every klnd of
defecLlve performance
lorLulLous evenL (arL 1174)
An evenL whlch could noL be foreseen or whlch
Lhough foreseen was lnevlLable
8equlslLes
1 evenL musL be lndependenL of Lhe wlll of Lhe obllgor
2 lL musL be elLher unforeseeable or lnevlLable
3 MusL be of such characLer as Lo render lL lmposslble
for Lhe obllgor Lo fulflll hls obllgaLlon ln a normal
manner and
4 obllgor musL be free from any parLlclpaLlon ln Lhe
aggravaLlon of Lhe ln[ury resulLlng Lo Lhe obllgee
noLe lL musL noL only be Lhe approxlmaLe
cause lL musL be Lhe CnL? and SCLL
CAuSL
ConLrlbuLory negllgence of Lhe debLor
renders hlm llable desplLe Lhe forLulLous
evenL courLs may equlLably mlLlgaLe
damages
LlablllLy ln case of forLulLous evenL
Ceneral rule no llablllLy ln case of forLulLous evenL
LxcepLlons
1 When expressly declared by law
2 When expressly declared by sLlpulaLlon of Lhe parLles
3 when Lhe naLure of Lhe obllgaLlon requlres
assumpLlon of rlsk
4 when Lhe obllgor ls ln defaulL or has promlsed Lhe
same Lhlng Lo 2 or more persons who do noL have Lhe
same lnLeresL(arL 1163)
3 when Lhe ob[ecL of Lhe presLaLlon ls generlc
noLe
flucLuaLlon of currencles ls noL consldered as a
forLulLous evenL slnce Lhe flucLuaLlon raLe ls
foreseeable lf consldered forLulLous lL wlll seL a
precedenL such LhaL Lhere wlll be a shlfL of burden Lo
banks
Where Lhe conLracL sLlpulaLed LhaL ln case of a
forLulLous evenL Lhe perlod provlded ln Lhe conLracL for
dellvery shall be suspended Lhe SC ruled LhaL Lhe
perlod of Llme when Lhe conLracL was suspended
CAnnC1 be deducLed from Lhe Lerm of Lhe conLracL
because Lo add Lhe sald years upon Lhe resumpLlon of
Lhe conLracL would ln effecL be an exLenslon of Lhe
conLracL
uSu8lCuS 18AnSAC1lCn (arL 1173)
usury conLracLlng for or recelvlng
someLhlng ln excess of Lhe amounL allowed
by law for Lhe loan or forbearance of
money goods or chaLLels
Lhere ls no longer any maxlmum celllng ln
lnLeresL raLes on loans pursuanL Lo C8
clrcular no 224 lssued on uec 1 1982
Lx1lnCulSPMLn1 Cl ln1L8LS1 Anu 8lC8
lnS1ALLMLn1S
8ecelpL of Lhe prlnclpal (or laLLer lnsLallmenL wlLhouL
reservaLlon as Lo Lhe lnLeresL (or prlor lnsLallmenLs)
shall glve rlse Lo a dlspuLable presumpLlon LhaL Lhe
lnLeresL (or prlor lnsLallmenL) has been pald
1he presumpLlon ln arLlcle 1176 do noL apply
when Lhere ls a reservaLlon made orally or ln wrlLlng
lf Lhe recelpL does noL reclLe LhaL lL was lssued for a
parLlcular lnsLallmenL due as when Lhe recelpL ls only
daLed Lo paymenL of Laxes
where nonpaymenL of Lhe prlor obllgaLlons has been
proven
8LMLulLS Cl C8Lul1C8 1C 8C1LC1 C8Lul1
(arL 1177)
1 Lo exhausL Lhe properLy ln possesslon of Lhe
debLor sub[ecL Lo exempLlons provlded by law
2 Acclon subrogaLorla Lo be subrogaLed Lo all
Lhe rlghLs and acLlons of Lhe debLor save Lhose
whlch are lnherenL ln hls person
LxCL1lCn lL cannoL be exerclsed ln rlghLs
whlch are purely personal ln Lhe sense LhaL Lhey
are lnherenL ln Lhe person of Lhe debLor
requlslLes (acclon subrogaLorla)
a debLor Lo whom Lhe rlghL of acLlon properly
perLalns musL be lndebLed Lo Lhe credlLor
b credlLor musL be pre[udlced by Lhe lnacLlon or
fallure of Lhe debLor Lo proceed agalnsL Lhe
Lhlrd person
c credlLor musL have flrsL pursued or exhausLed
all Lhe properLles of Lhe debLor whlch are noL
exempLed from execuLlon
3 Acclon aullana Lo lmpugn all Lhe acLs whlch Lhe
debLor may have done Lo defraud Lhem by means of
resclssory acLlon aL Lhe lnsLance of Lhe credlLor who ls
pre[udlced
8equlslLes (CASAL)
a Lhere musL be a credlLor prlor Lo allenaLlon
b debLor has made a subsequenL conLracL conveylng a
paLrlmonlal beneflL Lo Lhlrd person
c Lhe credlLor has no oLher legal remedy Lo saLlsfy hls
clalm
d Lhe acL belng lmpugned ls fraudulenL and
e Lhe Lhlrd person who recelved Lhe properLy ls an
accompllce ln Lhe fraud
noLe 2
nd
and 3
rd
remedles are subsldlary
Lo Lhe 1
sL
lL can only be avalled of ln Lhe
absence of any oLher legal remedy Lo
obLaln reparaLlon for Lhe ln[ury
18AnSMlSSl8lLl1? Cl 8lCP1S ACCul8Lu 8? vl81uL Cl
An C8LlCA1lCn (A81 1178)
Ceneral rule rlghLs acqulred by vlrLue of an obllgaLlon
are Lransmlsslble ln characLer
LxcepLlons
1 When prohlblLed by LAW whlch are purely personal
ln characLer
2 when prohlblLed by L8SCnAL CuALlllCA1lCn or
clrcumsLances of Lhe Lransferor whlch ls maLerlal
lngredlenL aLLendanL ln Lhe obllgaLlon
3 When prohlblLed by S1luLA1lCn of Lhe parLles
ulllL8Ln1 lnuS Cl C8LlCA1lCnS
u8L C8LlCA1lCn
1he effecLlvlLy or exLlngulshmenL does noL
depend on Lhe fulflllmenL or nonfulflllmenL of a
condlLlon or on Lhe explraLlon of a Lerm or
perlod and ls lmmedlaLely demandable
noLe Lhe CuallLy of demandablllLy ls noL
vlolaLed when a reasonable perlod ls granLed for
lLs performance
CCnul1lCnAL C8LlCA1lCn
LffecLlvlLy ls subordlnaLed Lo Lhe fulflllmenL or non
fulflllmenL of a fuLure Anu uncerLaln facL or evenL
CharacLerlsLlcs of a CondlLlon
1 luLure and uncerLaln
2 asL evenL buL unknown Lo parLles (Lhe knowledge Lo
be acqulred ln Lhe fuLure of a pasL evenL whlch aL LhaL
momenL ls unknown Lo parLles lnLeresLed lL ls only ln
LhaL sense LhaL Lhe evenL ls be deemed uncerLaln)
3 noL lmposslble
noLe when Lhe debLor blnds hlmself Lo pay
when hls means permlL hlm Lo do so or when
he has money Lhe obllgaLlon shall be deemed Lo
be one wlLh a perlod (arL 1180)
lL presupposes LhaL Lhere ls an exlsLlng
obllgaLlon Lo pay
LffecLs of fallure Lo comply wlLh condlLlon
1 lallure Lo comply wlLh Lhe condlLlon lmposed
on Lhe perfecLlon of a conLracL resulLs ln Lhe
fallure of Lhe conLracL
2 fallure Lo comply wlLh Lhe condlLlon lmposed
on Lhe performance of Lhe obllgaLlon glves Lhe
oLher parLy an opLlon elLher Lo refuse Lo
proceed wlLh Lhe compllance of Lhe obllgaLlon
or Lo walve Lhe condlLlon
When obllgaLlon demandable aL once
1 When lL ls pure
2 when lL ls sub[ecL Lo a resoluLory
condlLlon
3 when lL ls sub[ecL Lo a resoluLory perlod
1radlLlonal classlflcaLlons of condlLlons
1 suspenslve fulflllmenL of condlLlon resulLs ln acqulslLlon of
rlghLs arlslng ouL of Lhe obllgaLlon
8esoluLory fulflllmenL of Lhe condlLlon resulLs ln
exLlngulshmenL of rlghLs arlslng ouL of Lhe obllgaLlon
2 poLesLaLlve fulflllmenL of Lhe condlLlon depends on Lhe wlll
of a parLy Lo Lhe obllgaLlon
casual fulflllmenL of Lhe condlLlon depends on chance
and/or Lhe wlll of a Lhlrd person
mlxed fulflllmenL of Lhe condlLlon depends parLly on Lhe wlll
of a parLy ln Lhe obllgaLlon and parLly on chance and/or wlll of
a Lhlrd person
3 posslble condlLlon ls capable of reallzaLlon
accordlng Lo naLure law publlc pollcy or good
cusLoms
lmposslble condlLlon ls noL capable of
reallzaLlon accordlng naLure law publlc pollcy or
good cusLoms
4 poslLlve lnvolves performance of an acL
negaLlve lnvolves Lhe omlsslon of an acL
3 dlvlslble suscepLlble of parLlal reallzaLlon
lndlvlslble noL suscepLlble of parLlal reallzaLlon
6 con[uncLlve Lhere are several condlLlons
whlch musL all be reallzed
alLernaLlve Lhere are several condlLlons buL
only one musL be reallzed
7 express condlLlon ls sLaLed expressly
lmplled condlLlon ls LaclL
LffecLs of suspenslve resoluLory poLesLaLlve
mlxed casual condlLlon (arL 11811182)
1 suspenslve condlLlon
obllgaLlon shall only be effecLlve upon Lhe
fulflllmenL of Lhe condlLlon
upon consLlLuLlon of Lhe obllgaLlon buL before
fulflllmenL obllgee acqulres a mere hope or
expecLancy proLecLed by law
an acLlon may be flled Lo proLecL Lhe hope or
expecLancy so LhaL lL wlll noL become lllusory
a 8efore fulflllmenL
demandablllLy and Lhe acqulslLlon of Lhe
rlghLs arlslng from Lhe obllgaLlon ls suspended
obllgaLlon of obllgor Lo comply wlLh Lhe
presLaLlon ls held ln suspense unLll fulflllmenL of
obllgaLlon AnyLhlng pald by mlsLake durlng such Llme
may be recovered
b afLer fulflllmenL
Lhe obllgaLlon arlses or becomes effecLlve
obllgor can be compelled Lo comply wlLh whaL ls
lncumbenL upon hlm
2 8esoluLory condlLlon
obllgaLlon becomes demandable lmmedlaLely
afLer lLs consLlLuLlon and rlghLs are lmmedlaLely
vesLed ln Lhe obllgee buL such rlghLs are always
sub[ecL Lo Lhe LhreaL or danger of exLlncLlon
rlnclple of reLroacLlvlLy applles (arL 1190 par
1)
a before fulflllmenL
8lghL recognlzed ln arL 1188 par 1 ln case of a
suspenslve condlLlon should llkewlse be avallable ln
obllgaLlons wlLh a resoluLory condlLlon
b afLer fulflllmenL
whaLever may have been pald or dellvered by
one or boLh of Lhe parLles upon Lhe consLlLuLlon of Lhe
obllgaLlon shall have Lo be reLurned upon Lhe
fulflllmenL of Lhe condlLlon 1here ls a reLurn Lo Lhe
sLaLus quo
When condlLlon ls noL fulfllled rlghLs are
consolldaLed and Lhey become absoluLe
3 poLesLaLlve condlLlon
When lL depends excluslvely upon Lhe wlll of credlLor
condlLlon and obllgaLlon ls valld
When lL depends excluslvely upon Lhe wlll of debLor ln
case of a suspenslve condlLlon condlLlon and
obllgaLlon are vold Lo allow such condlLlon would be Lo
sancLlon lllusory obllgaLlon ln dlrecL conLravenLlon of
Lhe prlnclple announced ln ArL 1308
When lL depends excluslvely upon Lhe wlll of debLor ln
case of resoluLory condlLlon condlLlon and obllgaLlon ls
valld Lhe poslLlon of Lhe debLor ls exacLly Lhe same as
Lhe credlLor ln a suspenslve condlLlon and does noL
render Lhe obllgaLlon lllusory
noLe lf Lhe obllgaLlon ls a preexlsLlng one
and does noL depend for lLs exlsLence upon
Lhe fulflllmenL by Lhe debLor for Lhe
poLesLaLlve only Lhe condlLlon ls vold
leavlng unaffecLed Lhe obllgaLlon lLself
Pere Lhe condlLlon lmposed noL on Lhe
blrLh of Lhe obllgaLlon buL on lLs
fulflllmenL(valld obllgaLlon)
lf condlLlon ls declared vold buL Lhe obllgaLlon
ls sLlll valld Lhe SC ruled LhaL ln converLlng Lhe
obllgaLlon lnLo a pure and demandable one an
arrangemenL may be enforced whlch ls noL
wlLhln Lhe conLemplaLlon of Lhe parLles
1he besL soluLlon ls Lo conslder Lhe parLles as
havlng lnLended a L8lCu wlLhln whlch Lhe valld
obllgaLlon ls Lo be complled wlLh such LhaL Lhe
credlLor should ask Lhe courL Lo flx a perlod for
compllance
4 Casual condlLlon
1he obllgaLlon and condlLlon shall
Lake effecL
3 Mlxed condlLlon
1he obllgaLlon and condlLlon shall
Lake effecL
LffecLs of lmposslble condlLlons
1 CondlLlonal obllgaLlon ls vold boLh obllgaLlon and
condlLlon are vold
2 CondlLlonal obllgaLlon ls valld lf condlLlon ls
negaLlve Lhe obllgaLlon ls rendered pure and valld
3 Cnly Lhe affecLed obllgaLlon ls vold lf Lhe obllgaLlon
ls dlvlslble Lhe parL noL affecLed by Lhe lmposslble
condlLlon shall be valld
4 only Lhe condlLlon ls vold lf obllgaLlon ls preexlsLlng
noL dependlng on fulflllmenL of Lhe condlLlon whlch ls
lmposslble for lLs exlsLence
3 CondlLlon consldered noL lmposed lf lmposslble or
unlawful condlLlon ls aLLached Lo a slmple or
remuneraLory donaLlon as well as Lo a LesLamenLary
dlsposlLlon
LffecLs of poslLlve and negaLlve condlLlon (arL 1184
1883)
ln poslLlve condlLlon obllgaLlon ls exLlngulshed as
soon as Lhe Llme explres or lf lL becomes lndublLable
LhaL Lhe evenL wlll noL Lake place
ln negaLlve condlLlon Lhe obllgaLlon ls effecLlve from
Lhe momenL Lhe Llme lndlcaLed has lapsed or lf lL has
become evldenL LhaL Lhe evenL cannoL occur alLhough
Lhe Llme lndlcaLed has noL yeL lapsed
1he lnLenLlon of Lhe parLles Laklng lnLo conslderaLlon
Lhe naLure of Lhe obllgaLlon shall govern lf no Llme has
been flxed for Lhe fulflllmenL of Lhe condlLlon
uocLrlne of consLrucLlve fulflllmenL of suspenslve condlLlon (arL
1186)
1 condlLlon ls deemed fulfllled when Lhe obllgor acLually
prevenLed Lhe obllgee from complylng wlLh Lhe condlLlon
prevenLlon musL have been volunLary or wlllful ln characLer
2 docLrlne applles only Lo suspenslve condlLlon lL can have no
appllcaLlon Lo an exLernal conLlngency whlch ls lawfully wlLhln
Lhe conLrol of Lhe obllgor
3 Lhe mere lnLenLlon of Lhe debLor Lo prevenL lLs happenlng or
Lhe mere placlng of lneffecLlve obsLacles Lo lLs compllance
wlLhouL acLually prevenLlng fulflllmenL ls noL sufflclenL
noLe when Lhe volunLary acL of Lhe debLor
dld noL have for lLs purpose Lhe prevenLlon
of Lhe fulflllmenL of Lhe condlLlon lL wlll
noL fall under consLrucLlve fulflllmenL
1he same ls Lrue when Lhe debLor acLs
pursuanL Lo a rlghL
8equlslLe of consLrucLlve fulflllmenL
1 condlLlon ls suspenslve
2 debLor acLually prevenLs Lhe
fulflllmenL of Lhe condlLlon
3 he acLs volunLarlly
rlnclple of reLroacLlvlLy ln suspenslve condlLlon (arL
1187)
1 ln obllgaLlons Lo glve
Lhe condlLlon ls only on accldenLal elemenL of a
conLracL An obllgaLlon can exlsL even wlLhouL belng
sub[ecL Lo a condlLlon
rule on reLroacLlvlLy has no appllcaLlon Lo
real conLracLs Lhey are perfecLed only by dellvery of
Lhe ob[ecL of Lhe obllgaLlon
prlnclple only applles Lo consensual conLracLs
conLracLs ln whlch Lhe obllgaLlon arlslng Lhere from can
only be reallzed wlLh successlve perlods or lnLervals
reLroacLlve effecL as Lo Lhe frulLs and lnLeresLs ln
obllgaLlons Lo glve
ln 8eclprocal CbllgaLlons no reLroacLlvlLy muLually
compensaLed( frulLs may be naLural lndusLrlal or
clvll)
ln unllaLeral CbllgaLlons no reLroacLlvlLy because lL
ls usually graLulLous unless lnLenLlon was oLherwlse
as lnferred from naLure and clrcumsLances
2 ln obllgaLlons Lo do or noL Lo do
no flxed rule CourLs are empowered
Lo deLermlne Lhe reLroacLlve effecL of
Lhe suspenslve condlLlon
1hls rule also applles Lo an obllgaLlon
w/ resoluLory condlLlon (ArL 1190 par
1)
8lghLs pendlng fulflllmenL of suspenslve
condlLlons (arL 1188)
1 CredlLor
may Lake or brlng approprlaLe acLlons for Lhe
preservaLlon of hls rlghLs
does noL granL any preference of credlL buL
only allows Lhe brlnglng of Lhe proper acLlon for
Lhe preservaLlon of Lhe credlLor rlghLs
Applles Lo resoluLory condlLlon
2 uebLor
Lo recover whaL he has pald by mlsLake before
Lhe happenlng of Lhe suspenslve condlLlons
buL lf paymenL ls noL by mlsLake debLor ls
deemed Lo have lmplledly walved Lhe condlLlon
he cannoL recover whaL he has premaLurely
pald once Lhe suspenslve condlLlon ls fulfllled
LffecLs of loss deLerloraLlon and lmprovemenL ln real
obllgaLlons (arL 1189) uurlng Lhe pendency of Lhe
condlLlon
1 Loss (when lL perlshes goes ouL of commerce
dlsappears ln such a way LhaL lL's exlsLence ls unknown
or lL cannoL be recovered)
a wlLhouL debLor's faulL obllgaLlon ls exLlngulshed
b wlLh debLor's faulL obllgaLlon ls converLed lnLo one
of lndemnlLy for damages
2 ueLerloraLlon
a wlLhouL debLor's faulL lmpalrmenL
Lo be borne by Lhe credlLor
b wlLh debLor's faulL credlLor may
choose beLween brlnglng an acLlon for
resclsslon of Lhe obllgaLlon C8 brlnglng
an acLlon for speclflc performance
wlLh damages ln elLher cases
3 lmprovemenL
a by Lhe Lhlng's naLure or by Llme
shall lnure Lo Lhe beneflL of Lhe
credlLor
b aL Lhe debLor's expense debLor
shall have no oLher rlghL Lhan Lhan
granLed Lo a usufrucLuary
1he above rules apply Lo Lhe followlng
1 ueLermlnaLe Lhlngs only because Lhe
genus of a Lhlng never perlshes
2 obllgaLlon wlLh a perlod
3 1hose who have a duLy Lo reLurn ln case
of loss deLerloraLlon or lmprovemenL of
Lhe Lhlng ln an obllgaLlon wlLh a resoluLory
condlLlon
8esclsslon of 8eclprocal obllgaLlons ln Ceneral (arL
1191)
lmplled ln reclprocal obllgaLlons and ls more
approprlaLely referred Lo as a 8LSCLu1lCn
8reach of falLh vlolaLlve of reclproclLy beLween Lhe
parLles commlLLed by Lhe person who ls supposed Lo
comply wlLh Lhe obllgaLlon as compared Lo Lhe
resclsslon referred Lo ln ArL 1380 whlch lnvolves
damage or leslon or ln[ury Lo Lhe economlc lnLeresL
of a person
Can be demanded only lf Lhe plalnLlff ls ready wllllng and
able Lo comply wlLh hls own obllgaLlon and Lhe oLher ls noL
parLy who has noL performed hls parL of Lhe agreemenL ls
noL enLlLled Lo sue/resclnd Lhe rlghL belongs Lo Lhe ln[ured
parLy
MusL be lnvoked [udlclally unless conLracL conLalns a
faculLaLlve resoluLory provlslon ln whlch case [udlclal
permlsslon Lo cancel or resclnd Lhe conLracL ls no longer
necessary
acL of resclsslon musL be communlcaLed Lo oLher parLy
8equlres resLlLuLlon or brlnglng Lhe parLles back Lo orlglnal
sLaLus prlor Lo Lhe conLracL
8lghL Lo 8esclnd nC1 absoluLe
1he courL ls glven dlscreLlonary power Lo flx a
perlod wlLhln whlch Lhe obllgaLlon ln defaulL
may be permlLLed Lo comply wlLh whaL ls
lncumbenL upon hlm( arL 1191 par 3)
8uL Lhe dlscreLlonary power of Lhe courL cannoL
be applled Lo reclprocal obllgaLlons arlslng from
a conLracL of lease because Lhey are governed
by arL 1639
Walver of 8lghL
1he rlghL Lo resclnd may be walved expressly or lmplledly
LffecLs
1 lf Lhere ls a sLlpulaLlon granLlng Lhe rlghL of resclsslon on Lhe
parL of Lhe aggrleved parLy and he valldly resclnds Lhe conLracL
pursuanL Lo such express granL any courL declslon ad[udglng Lhe
proprleLy of Lhe resclsslon exLra[udlclally made ls nC1 Lhe
8LvCCA1C8? acL of resclsslon buL merely uLCLA8A1C8? or an
afflrmaLlon of Lhe revocaLlon
2 1he decree of resclsslon shall be wlLhouL pre[udlce Lo Lhe
rlghLs of Lhlrd persons who have acqulred Lhe Lhlng ln
accordance wlLh ArL 1333 and 1388 and MorLgage Law(arL 1191
par4)
ArL 1191 does nC1 apply Lo Lhe followlng
1 ConLracLs of parLnershlp where a parLner falls Lo pay Lhe
whole amounL whlch he has bound Lo conLrlbuLe Lo Lhe common
fund
2 Sales of real or personal properLy by lnsLallmenLs 1he flrsL
belng governed by 8ecLo Law whlle Lhe laLLer ls governed by
Maceda Law
3 AcLlon for resclsslon ls noL requlred upon breach of
compromlse agreemenL ArL 2041 confers upon Lhe parLy
concerned noL a cause for resclsslon or rlghL Lo demand
resclsslon of a compromlse buL Lhe auLhorlLy Lo regard lL as
resclnded and Lo lnslsL upon Lhe orlglnal demand
8eclprocal obllgaLlon
1hose whlch are creaLed or esLabllshed aL Lhe same
Llme ouL of Lhe same cause and whlch resulL ln muLual
relaLlonshlps of credlLor and debLor beLween Lhe
parLles
1aclL resoluLory condlLlon
lf one of Lhe parLles falls Lo comply wlLh whaL ls
lncumbenL upon hlm Lhere ls a rlghL on Lhe parL of Lhe
oLher Lo resclnd Lhe obllgaLlon
eso|ut|on for breach of st|pu|at|on
esc|ss|on by reason of |es|on or damage d|st|ngu|shed
AlLernaLlve remedles of ln[ured parLy (arL 1192 par 2)
1 lulflllmenL of Lhe obllgaLlon wlLh damages
Lven afLer Lhe ln[ured parLy has chosen fulflllmenL and such
fulflllmenL should become lmposslble he can sLlll seek Lhe
resclsslon or resoluLlon of Lhe obllgaLlon
2 8esclsslon of Lhe obllgaLlon wlLh damages
noLe an alLernaLlve prayer for fulflllmenL or resclsslon ln Lhe
complalnL ls noL lncompaLlble 1he presumpLlon ls LhaL he ls
leavlng Lhe maLLer Lo Lhe sound dlscreLlon of Lhe courL
LffecLs of breach by boLh parLles (arL
1192)
1 1he llablllLy of Lhe flrsL lnfracLor shall be
equlLably Lempered by Lhe courLs
2 lf lL cannoL be deLermlned whlch of Lhe
parLles flrsL vlolaLed Lhe conLracL Lhe same
shall be deemed exLlngulshed and each
shall bear hls own damages