(Law - 20053)

Atty. Jacky T. Sarita

 Class Decorum
1. Be punctual. We will start on time. Attendance will be checked at different
times of the class. Good attendance record will be a positive factor in the final
grade of the student.
2. Be prepared. Come in class ready and fully prepared. Ensure that you are in
the best location to get a good internet connection. The classes will be interactive
and students will be expected to recite anytime during the class.
3. Be active. Considering internet connection will most likely be intermittent,
students are expected to focus during the class and engage the professor if there
are matters discussed during the lecture that are not clear.
4. Be respectful. Open your camera, but turn off your microphone when not
asked to speak. Avoid doing other things during the class, your full attention is
required. Any unruly, improper and disrespectful behavior shall be dealt with in
accordance to the rules and regulations of the University.
 Class Structure
I. Diagnostic Recitation: Students shall be called randomly to disccuss specific items
assigned for the day to assess the understanding of the topics for discussion. This will be the
basis of the coverage of the lecture of the professor for the day.
II. Interactive Lecture: The professor will clarify the items which were covered during the
diagnostic recitation and discuss comprehensively the different subject in a particular topic. During
this period, students may raise clarificatory questions to enhance their understanding of the topic.
III. Learning Evaluation/Recitation: A learning evaluation which is normally through
recitation will be conducted to assess the understanding of the students of the topic. It will be an
opportunity for the professor to enhance the understanding of the student of the lesson.
IV. Homework / Exercises: The professor will assign exercises to further deepen the
understanding of the student. These homework and exercises will also prepare the student for the
succeeding lessons. Homework, exercises and/or assignments are expected to be submitted prior
to beginning of succeeding class schedule.
Class Duration (3 hours)

5 minutes: Preliminaries
5 minutes: Attendance
15 - 20 minutes: Diagnostic Recitation
1hr-1.5 hour: Interactive Lecture
15-20 minutes: Learning Evaluation / Recitation
5 minutes: Homework / Exercises
Topic Civil Code of the Subject
Philippines
(Sections)
General Provisions 1156 - 1162 I. Elements of Obligation
II. Sources of Obligations
Nature and Effects of Obligation 1163 - 1178 I. Personal vs. Real Obligations
II. Duties of Actors in Obligations
III. Breach of Obligations
Topic Civil Code of the Subject
Philippines
(Sections)
Different Kinds of Obligations 1179 - 1230 I. Pure vs. Conditional Obligations
II. Obligations with a period
III. Alternative Obligations
IV. Facultative Obligations
V. Joint vs. Solidary Obligations
VI. Divisible vs. Indivisible Obligations
VII. Obligation with a Penal Clause
Topic Civil Code of the Subject
Philippines
(Sections)
Extinguishing of a Contract 1232 - 1304 I. Payment of Performance
II. Loss of the thing dues
III. Condonotion or remission of debt
IV. Confusion or meger rights
V. Compensation
Vi. Novation
Midterm Examinations
(May 19 - 25)
Ar t. 1156. An obligation is a juridical
necessity to give, to do or not to do.
Obligation is a ‘juridical
necessity’ because in case of
non compliance, the courts
of justice may be called upon
by the aggrieved party to
enforce its fulfillment or, in
default thereof, the economic
value it represents.
Requisites of a Valid Obligation:
1. It must be licit
2. It must be possible, physcally
and juridically.
3. It must be determinate or
determinable.
4. It must have pecuniary value.
Four Elements of an
obligation:

1. Passive subject
2. Active subject
3. Object and prestation
4. Juridical and legal tie
 Exercise 1:

James bound himself

to irrigate the farm of Nadine for
5,000,000.00.

Is the obligation valid? If yes, what are the

different elements of the obligation.
Kinds of obligation:

1. Real obligation
2. Personal obligation
(Positive and Negative)
Art. 1157. Obligations arise from:

(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law;
and
(5) Quasi-delicts. (1089a)
Art. 1158. Obligations derived from law
are not presumed. Only those expressly
determined in this Code or in special laws
are demandable, and shall be regulated
by the precepts of the law which
establishes them; and as to what has not
been foreseen, by the provisions of this
Book.
Art. 1159. Obligations arising from
contracts have the force of law between
the contracting parties and should be
complied with in good faith.
A contract is a meeting of
minds between two (2)
persons whereby one binds
himself, with respect to the
other, to give something or
to render some service.
Compliance in good faith means compliance
or performance in accordance with the
stipulations or terms of the contract or
agreement.

Non-compliance by a party with his

legitimate obligations after receiving the
benefits of a contract would constitute
unjust enrichment.
Art. 1160. Obligations derived from quasi-
contracts shall be subject to the
provisions of Chapter 1, Title XVII, of this
Book.
A quasi-contract is that juridical
relation resulting from lawful,
voluntary and unilateral acts by
virtue of which the parties
become bound to each other to
the end that no one will be
unjustly enriched or benefited at
the expense of another.
 Two kinds of Quasi Contracts
1.Negotiorum gestio is the voluntary
management of the property or affairs of another
without the knowledge or consent of the latter.

2. Solutio indebiti the juridical relation which is

created when something is received when there is
no right to demand it and it was unduly delivered
through mistake.
Art. 1161. Civil obligations arising from
criminal offenses shall be governed by
the penal laws, subject to the provisions
of Ar ticle 2177, and of the per tinent
provisions of Chapter 2, Preliminary Title,
on Human Relations, and of Title XVIII of
this Book, regulating damages.
Civil liabilities arising from crimes:

1. Restitution
2. Reparation
3. Indemnification for
consequential damages
Art. 1162. Obligations derived from quasi-
delicts shall be governed by the
provisions of Chapter 2, Title XVII of this
Book, and by special laws.
A quasi-delict is an act or omission
by a person which causes damage to
another in his person, property, or
rights giving rise to an obligation to
pay for the damage done, there
being fault or negligence but there is
no pre-existing contractual relation
between the parties.
Negligence is the failure to observe
for the protection of interest of
another person, that degree of care,
precaution and vigilance which the
circumstances justly demand, whereby
such other person suffers injury.
Elements of a Quasi-delict:

1. There must be an act or omission;

2. There must be fault or negligence;
3. There must be damage caused;
4. There must be a direct relation or
connection of cause and effect between the
act or omission and the damage
5. There is no pre-exisitng contractual
relation between parties.
 Exercise 2:

Narda, a philantrophist, organized a feeding program for the street

children in Green Meadows, Mandaluyong. Due to the unprecedented
level of transmission of TB in Mandaluyong, the Mayor of Mandaluyong
announced that the city will be placed under strict community
quarantine where mass gathering is strictly prohibited. This
annoucement came one day before the event of Narda. Considering all
the necessary preparations have been made, Narda decided to continue
with her event without the assistance of the local government.
15 street children who participated in the activity was infected with TB
during the event. This resulted to hospitalization.

Does Narda have obligation to pay for the hospitalization costs of the 15 street children?
Art. 1163. Every person obliged to give
something is also obliged to take care of
it with the proper diligence of a good
father of a family, unless the law or the
stipulation of the parties requires another
standard of care.
‘Diligence of a Good Father of a
Family’ is that level of care or
diligence which an average
reasonably prudent person would
exercise over the own property.
D U T I E S O F PA R T Y TO D E L I V E R A
D E T E R M I N A T E T H I N G
Art. 1163, 1164 and 1166
A determinate thing is identified by
its individuality. The debtor cannot
substitute it with another although
the latter is of the same kind and
quality without the consent of the
creditor.
 Preserve the thing Deliver the fruits

Deliver the accessories Deliver the thing itself

Answer for damages

Art. 1164. The creditor has a right to the
fruits of the thing from the time the
obligation to deliver it arises. However, he
shall acquire no real right over it until the
same has been delivered to him.
Accessions are the fruits a thing or
additions to or improvements upon a
thing.
Ar t. 1166. The obligation to give a
determinate thing includes that of
delivering all its accessions and
accessories, even though they may not
have been mentioned.
Accessories are things joined to or
included with the principal thing for
the latter’s embellishment, better use
or completion.
REMEDIES OF CREDITOR IN CASE OF
NON-PERFORMANCE
Art. 1165, 1167 AND 1168
Art. 1165. When what is to be delivered is a determinate
thing, the creditor, in addition to the right granted him by
Article 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the

obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same

thing to two or more persons who do not have the same
interest, he shall be responsible for any fortuitous event
until he has effected the delivery.
A r t . 1 1 6 7 . I f a p e r s o n o b l i g e d to d o
something fails to do it, the same shall be
e x e c u t e d a t h i s c o s t .

This same rule shall be obser ved if he

does it in contravention of the tenor of
the obligation. Furthermore, it may be
decreed that what has been poorly done
be undone.
Art. 1168. When the obligation consists in
not doing, and the obligor does what has
been forbidden him, it shall also be
undone at his expense.
Specific performance: Performance
by the debtor of the prestation itself.

Substitute perfomance: Perfomance

by another person but at the expense
of the debtor.

Equivalent performance: damages.

REMEDIES OF CREDITOR IN CASE OF
NON-PERFORMANCE
Art. 1165, 1167 AND 1168
Art. 1169. Those obliged to deliver or to do something incur in delay from the time
the obligee judicially or extrajudicially demands from them the fulfillment of their
obligation.

However, the demand by the creditor shall not be necessary in order that delay may
exist:

(1) When the obligation or the law expressly so declare; or

(2) When from the nature and the circumstances of the obligation it appears that
the designation of the time when the thing is to be delivered or the service is to be
rendered was a controlling motive for the establishment of the contract; or

(3) When demand would be useless, as when the obligor has rendered it beyond his
power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply
or is not ready to comply in a proper manner with what is incumbent upon him.
From the moment one of the parties fulfills his obligation, delay by the other
begins. (1100a)
Ordinary delay is Legal delay is
merely the failure the failure to
to perform an perform an
obligation on obligation on time
time. which failure
constitutes a breach
of the obligation.
Requisites of delay (Mora):
1. Obligation must be due, demandable and liquidated;
2. Debtor fails to perform his positive obligation on the
date agreed upon;
3. A demand (not merely a reminder or notice), judicial
or extra judicial, made by the creditor upon the debtor
to fulfill, perform or comply with his obligation
otherwise, he will be in default
4. failure of the debtor to comply with such demand.
Two types of Delay (mora)
1. Mora solvendi ex re: default on the part of the debtor

2. Mora accipiendi: dafault on the part of the creditor

when he unjustly refuses to accept the performance of
the obligation.

3. Compensatio morae: both parties are in default (in

reciprocal obligations); there is no actionable default on
the part of both parties.
Art. 1170. Those who in the performance
of their obligations are guilty of fraud,
negligence, or delay, and those who in
any manner contravene the tenor thereof,
are liable for damages.
Ar t. 1171. Responsibility arising from
fraud is demandable in all obligations.
Any waiver of an action for future fraud
is void.
Fraud (Dolo) is the deliberate or
intentional evasion of the normal
fulfillment of an obligation. It implies
some kind of malice or dishonesty
and it cannot cover cases of mistake
and errors of judgment mand in
good faith.
Two (2) types of fraud:

1. Causal Fraud (Dolo Causante).

This is a form of fraud employed at
the execution of the contract.
2. Incidental Fraud (Dolo Incidente).
This is a fraud employed in the
performance of obligation already
existing because of the contract.
Ar t. 1172. Responsibility arising from
negligence in the performance of every
kind of obligation is also demandable,
but such liability may be regulated by the
courts, according to the circumstances.
Art. 1173. The fault or negligence of the obligor
consists in the omission of that diligence which is
required by the nature of the obligation and
corresponds with the circumstances of the persons,
of the time and of the place. When negligence
shows bad faith, the provisions of Articles 1171 and
2201, paragraph 2, shall apply.

If the law or contract does not state the diligence

which is to be observed in the performance, that
which is expected of a good father of a family shall
be required.
In terms of the contributory
negligence of the creditor:

General Rule: Reduces or mitigates the

damages which he can recover.
Exception: If the negligent act or omission of
the creditor is the proximate cause of the
event which led to the damage or injury
complained of, he cannot recover.
A r t . 1 1 7 4 . E xc e p t i n c a s e s e x p r e s s l y
s p e c i f i e d b y t h e l a w, o r w h e n i t i s
other wise declared by stipulation, or
when the nature of the obligation
re q u i re s t h e a s s u m p t i o n of r i s k , n o
person shall be responsible for those
events which could not be foreseen, or
which, though foreseen, were inevitable.
Fortuitous event refers to an event
which could not be foreseen, or
which though foreseen, was inevitable.
Art. 1175. Usurious transactions shall be
governed by special laws.
Usury is contracting for or receiving interest
in excess of the amount allowed by law for
the loan or use of money, goods, chattels or
credits.

Under existing policies, contractors may

agree on any amount of interest. It, does not
however, give absolute right to the creditor
to charge the debtor interest that is
“iniquitous or unconscionable.”
General Rule: No liability for fortuitous event.

Exceptions:
1. When expressly declared by law
2. When expressly declared by stipulation or
contract
3. When nature of obligation requires assumption
of rish
4. When the obligor is in default or has promised
to deliver the same thing to two or more persons
who do not have the same interest.
Art. 1176. The receipt of the principal by
the creditor without reservation with
respect to the interest, shall give rise to
the presumption that said interest has
been paid.

The receipt of a later installment of a

debt without reservation as to prior
installments, shall likewise raise the
presumption that such installments have
been paid.
REMIDIES AVAILABLE TO CREDITORS FOR
THE SATISFACTION OF THEIR CLAIMS
Art. 1177, 1178, 1191 AND 1192
Ar t. 1177. The creditors, after having
pursued the property in possession of the
debtor to satisfy their claims, may
exercise all the rights and bring all the
actions of the latter for the same purpose,
save those which are inherent in his
person; they may also impugn the acts
which the debtor may have done to
defraud them.
Art. 1178. Subject to the laws, all rights
acquired in virtue of an obligation are
transmissible, if there has been no
stipulation to the contrary.
Art. 1191. The power to rescind obligations is implied in
reciprocal ones, in case one of the obligors should not
comply with what is incumbent upon him.

The injured party may choose between the fulfillment and

the rescission of the obligation, with the payment of
damages in either case. He may also seek rescission, even
after he has chosen fulfillment, if the latter should become
impossible.

The court shall decree the rescission claimed, unless there

be just cause authorizing the fixing of a period.

This is understood to be without prejudice to the rights of

third persons who have acquired the thing, in accordance
with Articles 1385 and 1388 and the Mortgage Law. (1124)
A r t . 1 1 9 2 . I n c a s e b o t h pa r t i e s h a ve
committed a breach of the obligation, the
liability of the first infractor shall be
equitably tempered by the courts. If it
c a n n o t b e d e t e r m i n e d w h i c h of t h e
parties first violated the contract, the
same shall be deemed extinguished, and
each shall bear his own damages.
Remedies available to creditors for the satisfaction
of their claims:

1. Exact fulfillment
2. For reciprocal obligations, petition the court to
resolve the contract
3. Pursue leviable property
4. Accion directa
5.Accion subrogatoria
6. Accion Pauliana
DIFFERENT KINDS OF OBLIGATIONS
Art. 1179 - 1230
PRIMARY CLASSIFICATION OF OBLIGATIONS

1. Demandability (Pure, Conditional and With a

Period)
2. Plurality of Object (Simple, Alternative and
Facultative)
3. Plurality of Subject (Simple, Joint and Solidary)
4. Performance (Divisible and Indivisible)
5. Sanctions for breach (with penal clause and
without penal clause)
DEMANDABILITY

1. Pure obligation - one whose effectivity or

extinguishment does not depend oupon the fulfillment
or non-fulfillment of a condition or upon the expiration
of a period and is demandable at once.
2. Conditional - one whose effectivity is subordinated to
the fulfillment or non-fulfillment of a future and
uncertain even or upon past event unknow to the
parties.
3. With a Period - an obligation dependent on a future
and certain event. (1193 and 1196)
DIFFERENT KINDS OF CONDITIONAL
OBLIGATIONS

1. Suspensive condition - the happening of the

condition gives rise to the obligation. (1189)
2. Resolutory condition - the happening of the
condition extinguishes the obligation.
3. Potestative - if the condition is dependent on
the sole will of one party.
4. Casual - dependent on chance or hazard
5. Mixed
6. With a term
DIFFERENT KINDS OF CONDITIONAL
OBLIGATIONS

1. Suspensive condition - the happening of the

condition gives rise to the obligation. (1189)
2. Resolutory condition - the happening of the
condition extinguishes the obligation.
3. Potestative - if the condition is dependent on
the sole will of one party.
4. Casual - dependent on chance or hazard
5. Mixed
6. With a term
Ar t. 1182. When the fulfillment of the
condition depends upon the sole will of the
debtor, the conditional obligation shall be void.
If it depends upon chance or upon the will of
a third person, the obligation shall take effect
in conformity with the provisions of this Code.
Art. 1183. Impossible conditions, those
contrary to good customs or public policy and
those prohibited by law shall annul the
obligation which depends upon them. If the
obligation is divisible, that part thereof which
is not affected by the impossible or unlawful
condition shall be valid.

The condition not to do an impossible thing

shall be considered as not having been agreed
upon.
OBLIGATIONS WITH A PERIOD
Art. 1193 - 1198
Art. 1193. Obligations for whose fulfillment a day certain
has been fixed, shall be demandable only when that day
comes.
Obligations with a resolutory period take effect at once, but
terminate upon arrival of the day certain.

A day certain is understood to be that which must

necessarily come, although it may not be known when.

If the uncertainty consists in whether the day will come or

not, the obligation is conditional, and it shall be regulated
by the rules of the preceding Section.
GENERAL RULE: When a period is designated for
the performance or fulfillment of an obligation, it
is presumed to have been established for the
benefit of both creditor and debtor.

EXCEPTION: When it appears from the tenor of

the obligation or other circumstances that the
period has been established in favor of one or the
other.
INSTANCES WHEN THE COURTS MAY FIX PERIOD:

1. If the obligation does not fix a period, but from its

nature and circumstances it can be inferred that a period
was intended by the parties.
2. If the duration of the period depends upon the will of
the debtor
3. In case of reciprocal obligations, when there is a just
cause for fixing a period.
4. If the debtor binds himself when his means permit
him to do so.
OBLIGATIONS WITH A PERIOD
Art. 1199 - 1206
Facultative Alternative
obligation obligations
involves only one may have different
prestation agree prestation but only
upon but another one is due. (1199)
may be given
substitution.
(1206)
JOINT AND SOLIDARY OBLIGATIONS
Art. 1207 - 1222
Art. 1207. The concurrence of two or more
creditors or of two or more debtors in
one and the same obligation does not
imply that each one of the former has a
right to demand, or that each one of the
latter is bound to render, entire
compliance with the prestation. There is a
solidary liability only when the obligation
expressly so states, or when the law or
the nature of the obligation requires
solidarity.
GENERAL RULE: Obligations are are presumed to be
JOINT when two or more creditors or two or more
debtors concur in once and the same obligation.

EXCEPTIONS:
1. When expressly stated that there is solidarity.
2. When the law law requires solidarity.
3. When the nature of the obligations requires solidarity.
4. When a charge or condition is imposed upon heirs or
legatees and the testament expressly makes the charge
or condition.
5. WHen a solidary reposibility is imputed by a final
DIVISIBLE AND INDIVISIBLE OBLIGATIONS
Art. 1223 - 1225
Divisible Indivisible
obligations obligations
are those that are those that are
capable of partial not capable of
performance. partial performance
OBLIGATIONS WITH A PENAL CLAUSE
Art. 1226 - 1230
CHARACTERISTIC OF PENAL CLAUSES

1. Subsidiary - As a general rule, only penalty can be

demanded, principal cannot be demanded. However,
when the penalty is joint or cumulative, penalty can be
demanded with the principal.
2. Exclusive - It takes the place of damage. However,
penalty can be demanded with damages if: (a) it is
clearly stipulated; (2) when there is refusal to pay and (3)
there is fraud.