Obligations

OBLIGATIONS
From latin words, obligatio/obligare – “to tie” or “to bind”
Juridical necessity – enforceable to courts
1) CIVIL (positive) and Natural
2) REQUISITES OF OBLIGATION
a) Active – creditor / obligee – has the right
b) Passive – debtor / obligor – has the duty
c) Prestation – object / subject matter
c.i) Obligation to give (Real Obligation)
(c.i.1) Determinate Thing – res perit domino – thing perishes with the owner
(c.i.1.a) Standard care – diligence of a good father / if the law so provides, NEVER EXEMPTED
(c.i.1.b) Deliver the thing and its fruits
Delivery/Tradicion – Ownership and other Real Rights are acquired and transmitted
(c.i.1.b.i) Fruits of the Thing
c.i.1.b.i.1. KINDS
c.i.1.b.i.1.a. Natural Fruits – w/ human intervention
c.i.1.b.i.1.b. Industrial Fruits – cultivation or labor
c.i.1.b.i.1.c. Civil Fruits – judicial relation
(c.i.1.c) Obligation to deliver arises at the perfection of the contract or at the time of the fulfillment of the condition or expiration of the period.
(c.i.1.d) Rights of the creditor
(c.i.1.d.i) Real Right – no passive subject, therefore enforceable against the world - jus in re
(c.i.1.d.ii) Personal Right – enforceable against a particular person - jus in personam or jus ad rem
(c.i.1.e) ACCESSIONS – additions / improvements
(c.i.1.f) ACCESSORIES – ornament or make the thing complete

(c.i.1.g) Remedies of the Creditor
(c.i.1.g.i) Compel to complete obligation
(c.i.1.g.ii) Demand damages
(c.i.2) Generic thing – genus nunquam perit – generic thing never perishes
(c.i.2.a) Remedies of the creditor
(c.i.2.a.i) Compel to complete obligation, even if due to fortuitous event
(c.i.2.a.ii) Demand damages
c.ii) Obligation to do (Personal Obligation [+])
(c.ii.1) Remedies of the creditor
(c.ii.1.a) Fails to perform or perform but didn’t follow what is agreed upon (contravention of the tenor of the obligation)
(c.ii.1.a.i) Execute at the expense of the debtor
(c.ii.1.a.ii) Demand damages
(c.ii.1.b) Perform poorly
(c.ii.1.b.i) What’s done be undone at the expense of the debtor
(c.ii.1.b.ii) Demand damages
c.iii) Obligation not to do (Personal Obligation [-]) – NO DELAY
(c.iii.1) Remedies of the creditor
(c.iii.1.a) What is done be undone
(c.iii.1.b) Demand damages
d) Efficient Cause – vinculum juris / legal or juridical tie
d.i) SOURCES
(d.i.1) Law
(d.i.1.a) Kinds of Law
(d.i.1.a.i) State Law
Constitution – made by the people
Statutes – made by the representative elected
d.i.1.a.i.1. Civil Law
d.i.1.a.i.1.a. Obligation and Contracts
d.i.1.a.i.1.b. Sales
d.i.1.a.i.1.c. Agency
d.i.1.a.i.1.d. Credit Transactions
d.i.1.a.i.1.e. Partnership
d.i.1.a.i.2. Commercial Law
d.i.1.a.i.2.a. Private Corporations
d.i.1.a.i.2.b. Negotiable Instruments Law
d.i.1.a.i.3. Criminal Law
d.i.1.a.i.4. Remedial Law
d.i.1.a.i.5. Political Law
d.i.1.a.i.6. International Law
d.i.1.a.i.7. Labor Law
(d.i.1.a.ii) Non-State Law
d.i.1.a.ii.1. Divine Law - God
d.i.1.a.ii.2. Natural Law - Individual
d.i.1.a.ii.3. Moral Law - Community
d.i.1.a.ii.4. Physical Law - Science
(d.i.1.b) General Principles and Concepts
(d.i.1.b.i) IGNORANTIA LEGIS NON EXCUSAT
(d.i.1.b.ii) LEX PROSPICIT NON RESPICIT
(d.i.1.b.iii) Obligations derived from law are not presumed
(d.i.1.b.iv) Any statute violates constitution is void
(d.i.2) Contracts
(d.i.2.a) Kinds of Contracts
(d.i.2.a.i) Perfection
d.i.2.a.i.1. Consensual – through consent
d.i.2.a.i.2. Formal – through public instrument
d.i.2.a.i.3. Real – through delivery
(d.i.2.a.ii) Independent Existence
d.i.2.a.ii.1. Principal
d.i.2.a.ii.2. Accessory – dependent of another

(d.i.2.a.iii) Existence of Consideration
d.i.2.a.iii.1. Onerous – w/ consideration
d.i.2.a.iii.2. Gratuitous
(d.i.2.a.iv) Designation
d.i.2.a.iv.1. Nominate
d.i.2.a.iv.1.a. Do ut des - BARTER
d.i.2.a.iv.2. Innominate
d.i.2.a.iv.2.a. Do ut des – give that you may give - BARTER
d.i.2.a.iv.2.b. Do ut facias – give that you may do
d.i.2.a.iv.2.c. Facio ut des – do that you may give
d.i.2.a.iv.2.d. Facio ut facias – do that you may do
(d.i.2.a.v) Number
d.i.2.a.v.1. Bilateral
d.i.2.a.v.2. Unilateral
(d.i.2.a.vi) Existence of Defect
d.i.2.a.vi.1. Perfectly Valid
d.i.2.a.vi.2. Defective
d.i.2.a.vi.2.a. Rescissible
d.i.2.a.vi.2.b. Voidable – valid until annulled
d.i.2.a.vi.2.c. Unenforceable
d.i.2.a.vi.3. Void
(d.i.2.b) General Principles and Concepts
(d.i.2.b.i) Consent, Object, Cause
(d.i.2.b.ii) Perfected by mere consent
(d.i.2.b.iii) In good faith
(d.i.2.b.iv) Void: cannot produce legal effect
(d.i.3) Quasi-Contracts
(d.i.3.a) Kinds
(d.i.3.a.i) Negotiorum Gestio – property managed
(d.i.3.a.ii) Solutio Indebiti – mistaken payment

(d.i.3.a.iii) Others
d.i.3.a.iii.1. Money lent
d.i.3.a.iii.2. Funeral Expense
d.i.3.a.iii.3. Support to an incapacitated person
d.i.3.a.iii.4. Accident
d.i.3.a.iii.5. Property Saved
d.i.3.a.iii.6. Failure to comply
d.i.3.a.iii.7. Co-ownership
d.i.3.a.iii.8. Contribution to expenses which he benefited
d.i.3.a.iii.9. Paid taxes of another
(d.i.3.b) General Principles and Concepts
(d.i.3.b.i) Consent is absent
(d.i.3.b.ii) Prevent unjust enrichments
(d.i.3.b.iii) Lawful, voluntary, unilateral
(d.i.4) Delict / Felony / Crime / MALA
(d.i.4.a) Kinds
(d.i.4.a.i) Mala En Se – Wrong by Itself
(d.i.4.a.ii) Mala Prohibita – Wrong because it is prohibited
(d.i.4.b) General Principles and Concepts
(d.i.4.b.i) Act done is punishable by law as a crime
(d.i.4.b.ii) Gives rise to Civil and Criminal Obligation unless Justified BY LAW
(d.i.4.b.iii) Maybe exempted from Criminal Liability but not Civil Liability
(d.i.5) Quasi-Delicts / TORTS / Culpa Aquiliana / Civil Negligence
(d.i.5.a) Kinds
(d.i.5.a.i) Single Tortfeasor – only one is liable
(d.i.5.a.ii) Joint Tortfeasor – more than 1 is liable
(d.i.5.b) General Principles and Concepts
(d.i.5.b.i) PROXIMATE CAUSE DOCTRINE
(d.i.5.b.ii) CONTRIBUTORY NEGLIGENCE DOCTRINE – reduces liability
(d.i.5.b.iii) DOCTRINE OF LAST CLEAR CHANCE
(d.i.5.b.iv) IF CONTRACT EXIST, not a quasi-delict
3) GROUNDS FOR LIABILITY TO PAY DAMAGES (about prestation)
Presumptions: Disputable, there may be rebutted by contrary evidence. Therefore, it can be proven wrong.
***conclusive – no evidence to the contrary may be admitted, it can’t be proven wrong
1. Receipt of the principal w/o reservation to interest – INTEREST HAS BEEN PAID
2. Receipt of installment w/o reservation to prior installments – INSTALLMENTS HAS BEEN PAID
INJURY – wrongful, unlawful, tortuous act
DAMAGES – harm done; some of money can be recovered
KINDS of Damages
1. Actual or Compensatory – pecuniary loss; value of loss suffered + profit unrealized
2. Moral – physical suffering, mental anguish, social humiliation, etc.
3. Nominal - to vindicate a right
4. Temperate or Moderate - > Nominal; < Actual; Amount is uncertain
5. Liquidated – included in the agreement; to be paid if breach
6. Exemplary or Corrective – in addition to other damages
a) Fraud or “DOLO” – deliberate or intentional evasion; dishonesty; must be clearly proved; Demandable in all kinds; Negligence in bad faith;
a.i) Kinds
(a.i.1) Causal Fraud or Dolo Causante – From the start – vitiates consent therefore, voidable.
(a.i.2) Incidental Fraud or Dolo Incidente – After – valid contract
a.ii) WAIVER
(a.ii.1) Past Fraud - valid
(a.ii.2) Future Fraud - void
b) Negligence or “Culpa” – unintentional; voluntary act of omission of diligence; recoverable in all kinds
b.i) Kinds
(b.i.1) Contractual Negligence or “Culpa Contractual” – performance of contract
*Master-Servant Rule – defense of a good father is not a defense on the part of an employer although, it may mitigate liability
(b.i.2) Civil Negligence or “Culpa Aquiliania” or Quasi-delict – acts or omission caused damage
*Master-Servant Rule – NOT APPLICABLE
(b.i.3) Criminal Negligence or “Culpa Criminal” – results in commission of a crime
*Master-Servant Rule - Applicable
c) Delay or Default or “Mora” – nonfulfillment, w/ respect to time
c.i) Kinds
(c.i.1) Mora Solvendi – by the debtor; liable if involves a determinate thing in a fortuitous event; liable for interest or damage
(c.i.1.a) Ex Re – w/ real obligation
(c.i.1.b) Ex Persona – w/ personal obligation
(c.i.2) Mora Accipiendi – by the creditor; bears the risk of loss, no right in the interest; consignment
(c.i.3) Compensatio Morae – both parties therefore, there’s no delay
c.ii) Requisites
(c.ii.1) Past due
(c.ii.2) Demand exist
(c.ii.3) Does not comply
c.iii) When demand is no longer necessary
(c.iii.1) Law so provides – taxes
(c.iii.2) Expressed – written in the contract
(c.iii.3) Essence – rent a bridal car
(c.iii.4) Useless – already destroyed
(c.iii.5) In reciprocal obligation
d) Contravention of the tenor of the obligation – did not follow what is agreed upon
e) Fortuitous Event
e.i) Kinds
(e.i.1) As to Manner of Occurrence
(e.i.1.a) Totally Unexpected - unforseen
(e.i.1.b) Expected – forseen but can’t be avoided or prevented
(e.i.2) As to its Nature
(e.i.2.a) Acts of Man – human will except of the debtor
(e.i.2.b) Acts of God (Force Majeure) – independent of human will
e.ii) Requisites
(e.ii.1) Free from any participation
(e.ii.2) Independent of debtor’s will
(e.ii.3) Impossibility to comply
(e.ii.4) Unforeseen or inevitable
e.iii) Due to Fortuitous event, still liable:
(e.iii.1) Law so provides
(e.iii.2) Expressed or declared or stipulated
(e.iii.3) Nature
4) Claims against Debtor
a) Property possession of the debtor – sell, proceeds go to creditor
b) Accion subrogatoria – exercise all rights, bring all action except personal
b.i) All rights are transmissible EXCEPTION
(b.i.1) Law prohibits – general partner
(b.i.2) Parties agreed against – stipulation
(b.i.3) By nature is not transmissible – scholarship
c) Accion Pauliana – impugn the acts that was done to defraud creditors