CHAPTER 2: NATURE AND EFFECTS OF (2) A generic thing is identified only by

OBLIGATIONS its specie.

→ The debtor can give
anything of the same class
ARTICLE 1163 as long as it is of the same
kind.
Art. 1163 - Every person obliged to give
something is also obliged to take care of DUTIES OF DEBTOR IN OBLIGATION TO
it with the proper diligence of a good GIVE A DETERMINATE THING
father of a family, unless the law or the
→ Can be slight or
stipulation of the parties requires
extraordinary diligence,
another standard of care.
depende sa hinihingi ng
SPECIFIC REAL OBLIGATION stipulation of the party or
ng batas.
→ A thing is said to be specific or
1. Preserve or take care of the thing.
determinate if particularly
▪ Diligence of a good father of a
designated or physically
family – ordinary care, ordinary
segregated to others of the same
diligence, due diligence which an
class. Art. 1459, Civil Code.
average (reasonably prudent)
→ The object of the obligation is
person exercises over his own
particularly identified.
property.
GENERIC REAL OBLIGATION ▪ Another standard of care - unless
the law or the stipulation of the
→ A thing is indeterminate when it
parties requires another standard
refers only to a class or genus to
of care. If the law requires another
which it pertains and cannot be
standard of care, you follow that. If
pointed out with particularity.
they stipulated another standard
→ It is not exactly known or of care, you follow the stipulation.
pinpointed from other things
Ex: Extraordinary diligence as to
belonging to that same class.
common carrier imposed by the
Distinctions Between Specific and law. – in the safety of the
Generic Thing passengers or vigilance over the
goods.
(1) A determinate thing is identified ▪ extraordinary diligence if provided
by its individuality. by law.
→ The debtor cannot 2. Deliver the fruits of the thing
substitute it with another 3. Deliver the accessions and
although the latter is of accessories.
the same kind and quality 4. Deliver the thing itself.
without the consent of the 5. Answer of damages in case of
creditor. (The debtor non-fulfillment or breach.
cannot substitute the
object at his own decision)
DUTIES OF DEBTOR IN ONLIGATION TO 2. Industrial fruits – those produced
DELIVER A GENERIC THING by lands of any kind through
cultivation or labor.
1. To deliver a thing which of the
Example: sugarcane, vegetables,
quality intended by the parties.
rice
→ When the quality and
3. Civil fruits – those derived by
circumstances thereof have
virtue of a juridical relation.
not being stated, the creditor
Example: rents of buildings, dahil
cannot demand a thing of a
may nac-create na juridical
superior quality and neither
relation between the renter and
can the debtor deliver a thing
the landlord. Yung rent na
of inferior quality. The purpose
binabayad or the interest of a
of the obligation in other
liability is the civil fruit.
circumstances shall be taken
into consideration Art. 1246, RIGHT OF CREDITOR TO THE FRUITS
Civil Code.
→ It applies only to a specific
2. To be liable for damages in case of
real obligation.
fraud, negligence, delay or
→ Pag generic real
contravention of the tenor
obligations, wala kang right
thereof.
to the fruits.
→ Meron silang common duty to
be liable for damages in case of The creditor is entitled to the fruits
non- fulfilment due to delay, of the thing to be delivered from the time
fraud, etc. the obligation to make delivery arises.
The intention of the law is to
protect the interest of the obligee should
ARTICLE 1164
the obligor commit delay, purposely or
Art. 1164 - The creditor has a right to the otherwise, in the fulfilment of his
fruits of the thing from the time the obligation.
obligation to deliver it arises. However,
WHEN OBLIGATION TO DELIVER ARISES?
he shall acquire no real right over it until
the same has been delivered to him. → Generally, the right arises from the
time the contract is perfected.
“to deliver it arises” – to give, so real
→ Unless, the obligation us subject to
obligation siya.
suspensive condition or suspensive
THREE KINDS OF FRUITS UNDER THE CIVIL period. Its effects is to suspend the
CODE fulfillment of the obligation.
→ Obligation to deliver arises upon
1. Natural fruits – spontaneous
the fulfillment of the condition or
products of the soil and the young
arrival of the period.
and other products of animals.
→ Kahit na yung obligation is subject
Ex: grass, trees and plants on lands
to suspensive condition, pwede pa
produced without the intervention
rin i-stipulate ng parties yung right
of human labor.
 of the creditor to the delivery of How do we acquire ownership?
the fruits of the thing. Ownership is acquired by delivery. Either
Examples: contracts of sale, in a actual or constructive delivery.
contract of sale the obligation to
• Actual delivery – actual na-
deliver arises from the time of the
received yung delivery.
perfection of the contract even if
Ex: nag-order sa Lazada, ide-
the obligation is subject to a
deliver sa house.
suspensive condition or suspensive
• Constructive delivery – prominent
period where the price has been
examples are land, house..
paid.
because hindi sya pwede actual i-
MEANING OF PERSONAL RIGHT AND deliver yung house & lot haha
REAL RIGHT (ibibigay is yung certificate of title
ng lot or ide-deliver yung house
Personal right – is the right or
keys) there’s a delivery because
power of a person (creditor) to
you acquire the ownership of the
demand from another (debtor), as
thing through that constructive
a definite passive subject, the
delivery.
fulfillment of the latter’s obligation
to give, to do, or not to do. If there is no actual or constructive
→ Laging may kaaway or kagalit delivery, the creditor does not become
(lol) the owner thereof, until the specific thing
→ Binding or enforceable only has been delivered to him.
against a particular person.
Real right – is the right or interest
of a person over a specific thing ARTICLE 1165
(like ownership, possession, or
mortgage), without a definite Art. 1165 - When what is to be delivered
passive subject against whom the is a determinate thing, the creditor, in
right may be personally enforced. addition to the right granted him by
Article 1170, may compel the debtor to
→ you can assert your right to the
make the delivery.
whole world.
→ There is someone who assert If the thing is indeterminate or generic,
his right over the thing itself he may ask that the obligation be
and normally it’s against complied with at the expense of the
everyone. debtor.
→ No definite passive subject or
If the obligor delays, or has promised to
debtor.
deliver the same thing to two or more
→ Directed against the whole
persons who do not have the same
world. Ownership is a real
interest, he shall be responsible for
right directed against
fortuitous event until he has effected the
everybody.
delivery.
 → What if there is a breach of a NOTE: The law does not authorize the
contract? Someone did not creditor to use force or violence upon the
comply? What are the remedies? debtor. Creditor must bring the matter to
→ Talks about the remedies of a court and the court shall be the one to
creditor in a real obligation order the delivery.
whether generic or specific.
The forgoing remedies are in the
REMEDIES OF CREDITOR IN REAL alternative, you cannot avail all
OBLIGATION these remedies at the same time.
*if cumulative, both remedies
(A) In a specific real obligation, there
pwede gamitin. If alternative, isa
are three options of a creditor:
lang. One at a time.
1. Demand specific performance
In case of recission, the parties
or fulfilment with a right to
must return to each other what
indemnity for damages.
they have received. (plus damages)
(demand na madeliver)
Do not take the law into your
2. Demand recission or
hands. Go to the court.
cancellation of obligation with a
right to recover damages. (if
hindi possible na i-deliver,
(B) A generic real obligation, can be
cancel na lang with damages)
performed by a third person, since
3. Demand payment of damages
the object is expressed only
only if it’s the only feasible
according to its family or genus.
remedy. (pag hindi na
→ Hindi specific performance
madeliver/received, the only
ang remedy ng creditor if
remedy is payment of for
generic obligations.
damages)
→ Ask a third person to fulfill
the obligation at the
expense of the original
In an obligation to deliver a
debtor.
determinate thing, the very thing
itself must be delivered. It cannot WHERE THE DEBTOR DELAYS OR HAS
be substituted without the consent PROMISED DELIVERY TO SEPARATE
of the creditor. CREDITORS
Consequently, only the debtor can
Paragraph 3: If the obligor delays or has
comply with the obligation
promised to deliver the same thing to two
(because the thing or object is
or more persons who do not have the
unique). This is the reason why the
same interest, he shall be responsible for
creditor is granted the right to
any fortuitous event until he has affected
compel (obliged something) the
the delivery.
debtor to make the delivery which
is the first remedy available. → Fortuitous event, acts of God,
inevitable, unforeseen, cannot be
seen, cannot be avoided.
 → Generally, a debtor is exempted ACCESSIONS – are fruits of a thing or
from liability if his non-compliance additions to or improvements upon a
is due to a fortuitous event. thing (the principal).
→ However, under Art. 1165 PAR 3. ,
→ These are the fruits or addition
applies only to determinate thing.
to the principal thing.
An indeterminate thing cannot be
Example: house ore trees on a
the object of destruction by a
land.
fortuitous event because genus
Principal = land
nunquam perit (genus never
Accessions = house and trees
perishes), generic thing never
→ Even though there is no
perishes because you can
agreement, it is implied that
substitute it.
upon delivery of a specific
thing you include the
Has two exceptions to general
accessions and the accessories
rule:
thereof.
1. When the obligor delays in
→ Exclusion of accessions is the
the delivery of a specific
exception and not the general
thing, regardless of the
rule.
fortuitous event, the debtor is
→ Exclusion is possible but it
still liable.
must be expressly stipulated.
2. When the obligor has
promised to deliver the same ACCESSORIES – are things joined to or
thing to two or more persons included with the principal thing for the
having different interests into latter’s embellishment, better use, or
a specific thing, he would still completion.
be liable even if there’s a
fortuitous event, hindi → Example: key of a house, frame
exempted from liability yung of a picture, bracelet of a
debtor, dahil isa lang ang watch, machinery of a factory.
specific thing, hindi pwede i-
deliver sa two or more
persons. NOTE:
Accessions are not necessary to
the principal thing.
ARTICLE 1166 Principal will exist without the
accessions and accessories, but
Art. 1166 - The obligation to give a
the accessions are not necessary
determinate thing includes that of
to the principal.
delivery of all its accessions and
Accessory is needed by the
accessories, even though they may not
principal. Example: phone battery,
have been mentioned.
it is an accessory because it is
needed by the phone to function.
 The accessory and the principal ARTICLE 1167
thing must go together but both
Art. 1167 – If a person obliged to do
accessions and accessories can
something fails to do it, the same shall be
exist only in relation to the
executed at his cost.
principal thing.
This same rule shall be observed if he
WHAT ARE THE RIGHTS OF THE CREDITOR
does it in contravention of the tenor of
TO ACCESSIONS AND ACCESSORIES?
the obligation. Furthermore, it may be
→ General rule: All accessions decreed that what has been poorly done
and accessories are included be undone.
in the obligation to deliver a
→ Refers to an obligation to do:
determinate thing although
positive personal obligation,
they may not have been
because it’s requiring the debtor
expressly mentioned, this is
to do something, for example to
because of the principle that
perform an act or to render a
“The accessory follows the
service.
principal”.
→ It contemplates three (3)
→ In order to be excluded, there
situations:
must be a stipulation to that
1. The debtor fails to perform an
effect, unless otherwise
obligation to do;
stipulated an obligation to
2. The debtor performs an obligation
deliver the accessions or
to do but contrary to the terms
accessories of a thing does not
thereof; or
include the latter.
3. The debtor performs an obligation
→ If you buy a principal, you
to do but in poor manner.
include the accessions and
accessories, but when you REMEDIES OF CREDITOR IN POSITIVE
purchase accessions and PERSONAL OBLIGATION
accessories it does not include
(1) If the debtor fails to comply with
the principle because the
his obligation to do, the creditor
accessory is that follows the
has the right:
principal.
a. To have the obligation to
performed by himself, or by
another, unless personal
considerations are involved, at
the debtor’s expense.
→ Gagawin na lang ng
creditor by its own or by
another, but yung expenses
na mai-incurred nya in
performing the obligation,
then it should be the
debtor’s expense.
 b. To recover damages ARTICLE 1168
Art. 1168 - When the obligation consists
(2) In case the obligation is done
in not doing, and the obligor does what
contravention of the terms or is
has been forbidden him, it shall also be
poorly done, it may be ordered (by
undone at his expense.
the court upon complaint) that it
be undone if it is still possible to → Talks about a negative personal
undo what was done. obligation.
→ The court that shall order
REMEDIES OF CREDITOR IN NEGATIVE
what has been poorly done
PERSONAL OBLIGATION
should be undone, at the
expense of the debtor, if → The duty of the obligor is to
it’s still possible. abstain from act (‘wag gawin).
→ If it’s not possible the → There’s no specific performance.
debtor should recover the → The debtor cannot be guilty of
damages suffered. delay, kase nga yung obligation
niya is not to do.
In personal obligation to do, bawal ang
specific performance because that is → As a rule, the remedy of the
contrary to what the constitution obligee or creditor is the undoing
provides. of the forbidden thing plus
damages. (by the debtor)
→ Because this may amount to → If it is not possible to undo what
involuntary servitude (a legal and was done, either physically or
constitutional term for a person legally, or because of the rights of
laboring against that person's will the third person who acted in
to benefit another) which, as a good faith, his remedy is an action
rule, is prohibited under our for damages caused by the
constitution. debtor’s violation of his
Indemnification for damages – if hindi na obligation.
talaga maipagawa yung performance, the
only remedy of the creditor is ma-
indemnify siya for his/her damages ARTICLE 1169
suffered. Art.1169 - Those obliged to deliver or to
If the obligation is pwede pa do something incur in delay from the
naman i-perform at the expense of the time the obligee judicially or
debtor, even if there is refusal for him to extrajudicially demands from them the
do so, hindi agad-agad ang court nag- fulfillment of their obligation.
grant ng damages to the creditor because However, the demand by the creditor
if pwede pa naman ipagawa sa iba, bat shall not be necessary in order that delay
hindi ipagawa dba? may exist:
BAWAL ANG PILITAN UNDER ARTICLE (1) When the obligation or the law
1167 expressly so declare; or
(2) When from the nature and the KINDS OF DELAY OR DEFAULT
circumstances of the obligation it
(1) MORA SOLVENDI or the delay on
appears that the designation of the time
the part of the debtor to fulfill his
when the thing is to be delivered or the
obligation (to give or to do).
service is to be rendered was a
→ By reason of a cause
controlling motive for the establishment
imputable to him.
of the contract; or
→ Solvendi kapag ang may
(3) When demand would be useless, as delay is ang debtor.
when the obligor has rendered it beyond (2) MORA ACCIPIENDI or the delay on
his power to perform. the part of the creditor to accept
the performance of the obligation.
In reciprocal obligations, neither
→ Without justifiable reason
party incurs in delay if the other does not
to accept the performance.
comply or is not ready to comply in a
Ex: the creditor was not in
proper manner with what is incumbent
the house to receive the
upon him. From the moment one of the
parcel he ordered on
parties fulfills his obligation, delay by the
shopee.
other begins.
→ Accipiendi kapag ang may
→ Kailan nagkaka-delay yung debtor? delay is and creditor.
(3) COMPENSATION MORAE or the
DELAY
delay of the obligors in reciprocal
→ ORDINARY DELAY VS. obligation (like in sale).
LEGAL DELAY → The delay of the obligor
cancels the delay of the
ORDINARY DELAY – is merely the failure
oblige, and vice-versa.
to perform the obligation on time.
→ The net result is that there
Ex: I promised to deliver a cake to a buyer, is no actionable default on
the cake should be delivered today, but I the part of both parties.
wasn’t able to deliver it today. By → If parehong delay ang
tomorrow, I have already incurred an obligor and oblige, as a
ordinary delay. result pareho naca-cancel
LEGAL DELAY OR DEFAULT OR MORA – is out and delay nilang
the failure to perform an obligation on pareho.
time which failure constitutes a breach of NO DELAY IN A NEGATIVE PERSONAL
the obligation. OBLIGATION: An obligation not to do.
→ If you incurred this, dito na → In an obligation not to do, non-
papasok yung obligation to fulfillment may take place but
pay for damages. delay is impossible for the debtor
fulfils by not doing what has been
forbidden him.
Requisites of delay or default by the → There are instances where demand
DEBTOR: is not necessary to hold the debtor
in delay but in the GENERAL RULE:
1. Failure of the debtor to perform
Delay begins only from the
his (positive) obligation on the
moment when the creditor
date agreed upon.
demand a judicially or
2. Demand made by the creditor
extrajudicially the fulfilment of
upon the debtor to comply with
the obligation. The demand or
his obligation.
performance marks the time when
→ If may FAILURE na to
the obligation incurs mora or the
perform the obligation,
delay and his gain to have violated
there must be a DEMAND.
this obligation only from that.
→ Not mere reminder or
→ There should be a demand first in
notice.
order to hold the debtor in delay.
→ Either be:
• JUDICIAL DEMAND WHEN DEMAND IS NOT NECESSARY TO
– when a complaint PUT DEBTOR IN DELAY
is filed in court.
1. When the obligation so provides
• EXTRAJUDICIAL 2. When the law so provides.
DEMAND – when
3. When time is of the essence.
made outside of
4. When demand would be useless.
court, orally or in
5. When there is performance by a
writing. party in reciprocal obligations.
3. Failure of the debtor to comply
with such demand.
ARTICLE 1170
→ If present yung tatlo (3), dito na
mags-set yung Legal Delay. Art. 1170 - Those who in the performance
→ Obligation shall be DUE and of their obligations are guilty of fraud,
DEMANDABLE. negligence, or delay, and those who in
→ There is no delay if the obligation any manner contravene the tenor
is not yet due or demandable. thereof, are liable for damages.
→ The creditor shall prove that
→ A party shall be liable for damages.
demand has been made. Burden
→ There is breach when a person fails
of prove. (Orally or Demand letter
or refuses to perform his
that is duly received by the debtor)
obligation without legal
→ Debtor shall prove that delay was
justification.
not due to his fault to relieve
himself from liability. Burden of GROUNDS FOR LIABILITY
prove, na excusable ung reason
1. FRAUD/DECEIT/DOLO – the
bakit nagkaroon ng delay.
deliberate or intentional evasion of
→ If hindi nag demand ia-assume ng the normal fulfilment of an
batas na inextend mo yung due obligation.
date.
 - It implies some kind of malice If yung fraud ba is exerted at the
or dishonesty and it cannot time na ine-excute or pine-perfect
cover cases of mere mistake pa lang ba yung contract or
and errors of judgement made agreement? – Causal Fraud
in good faith. LEGAL REMEDY: Contract is
- It is synonymous to bad faith in voidable when causal fraud
that, it involves a design to existed vitiating consent.
mislead or deceive another.
→ Refers to Incidental fraud 2. NEGLIGENCE/FAULT/CULPA – any
(dolo incidente) – which is voluntary act or omission (dapat
committed in the na gawin pero di ginawa), there
performance of an beong no bad faith or malice,
obligation already existing however this prevents the normal
because of a contract. fulfillment of an obligation.
→ May existing contract na at - Failure to exercise that degree
nangyari yung fraud at the of care required by the
performance of the circumstances.
obligation.
→ Causal fraud (dolo
casuante) – fraud 3. DELAY/MORA – Art.1169,
employed in the execution commencement of delay.
of a contract.
→ Ginagawa pa lang yung
kontrata or negotiating, on 4. CONTRAVENTION OF THE TERMS
that stage for the OF THE OBLIGATION – this is the
perfection of the contract, violation of the terms and
nag-exert na yung party ng conditions stipulated in the
fraud or bad faith under obligation without justifiable
Article 1338, which vitiates excuse or reason. The
consent, and it makes the contravention must not be due to
contract voidable. a furtuitous event or force
→ Art.1390,1391. To ask for majeure.
the annulment of the
contract under ground of FRAUD AND NEGLIGENCE
causal fraud.
- Both are voluntary with
volition
HOW: - GROSS NEGLIGENCE is
tantamount to fraud.
Yung fraud ba in-execute ba at the (1) In fraud, there is a deliberate
time na pine-perform nya yung intention to cause damage or
obligation? – Incidental Fraud injury, while in negligence, there is
LEGAL REMEDY: Ask for damages. no such intention.
 (2) Waiver of the liability for future - It is against law and public
fraud is void, while such waiver policy.
may, in a certain sense, be allowed - A contrary rule would
in negligence. encourage the perpetration of
(3) Fraud must be clearly proved, fraud because the obligor
while negligence is presumed from knows that even if he should
the violation of a contractual commit fraud, he would not be
obligation. liable for it, thus making the
(4) Liability for fraud cannot be obligation illusory.
mitigated or reduced by the - No exception
courts, while liability for
WAIVER OF AN ACTION FOR PAST FRAUD
negligence may be reduced
VALID.
according to the circumstances.
→ What the law prohibits is waiver
anterior to the fraud and the
ARTICLE 1171 knowledge thereof by the
aggrieved party.
Art.1171 - Responsibility arising from
→ A past fraud can be a subject of a
fraud is demandable in all obligations.
valid waiver because the waiver
Any waiver of an action for future fraud
can be considered as an act of
is void.
generosity and magnanimity on
→ Refers to incidental fraud which is the part of the party who is the
employed in the fulfilment of an victim of the fraud. (valid waiver)
obligation. - Kung nalaman mo na it has
→ Liability is always demandable been committed in the past
because of fraud. and it has to come to your
→ Unlike in the case of responsibility attention now and wine-waive
arising from negligence, the court (tinalikuran) mo yun is a past
is not given the power to mitigate fraud.
or reduce the damages to be → What is renounced is the effect of
awarded. (because negligence is the fraud, that is, the right to
not necessarily intentional, unlike indemnity of the party entitled
fraud intentional talaga) thereto.

WAIVER OF ACTION FOR FUTURE FRAUD

VOID. (not valid)

→ Any waiver of an action for future

ARTICLE 1172
fraud is void. (no effect, as if there
is no waiver) Art. 1172 – Responsibility arising from
- According to the time of the negligence in the performance of every
omission, the fraud maybe past kind of obligation is also demandable,
or future. Art.1171, pertains but such liability may be regulated by the
about FUTURE FRAUD. courts, according to the circumstances.
 - There’s liability arising from
future negligence.
TWO EXCEPTIONS TO THE GENERAL RULE:
→ In negligence, the court may
hindi pwede i-waive yung negligence sa
mitigate the amount of damages
instances na ito kasi generally pwede.
to be awarded.
→ Not serious as fraud, no bad faith (1) When the nature of the obligation
or no deliberate intentions to requires extraordinary diligence.
cause injury damages (2) When the negligence is so gross or
→ When both parties are mutually when it shows bad faith, that is
negligent in the performance of equivalent to fraud.
their respective obligations, the
KINDS OF NEGLIGENCE ACCORDING TO
fault of one may cancel or
SOURCE OF OBLIGATION
neutralize the negligence of the
other. 1. Contractual negligence or Culpa
Contractual – negligence in
VALIDITY OF WAIVER OF ACTION ARISING
contracts resulting in their breach.
FROM NEGLIGENCE
- This kind is not a source of
(1) An action for future negligence obligation. Art.1157 the
may be renounced (not fraud) contract is the source itself.
except where the nature of the - It merely makes the debtor
obligation requires the exercise of liable for damages in view of
extraordinary diligence as in the his negligence in the fulfilment
case of common carriers. of a pre-existing obligation.
- Kapag expressly provided na 2. Civil negligence or Culpa Aquiliana
extraordinary diligence ung – negligence which itself is the
dpat i-exercise ng party source of an obligation between
therefore hindi pwde i-waive the parties not so related before
yung future negligence. by any pre-existing contract.
- Negligence tantamount to bad - It is also called as tort or quasi-
faith = GROSS NEGLIGENCE, delict.
failure to exercise even slight 3. Criminal negligence or Culpa
care or entire absence of care Criminal – negligence resulting in
that it shows bad faith. the commission of a crime.
- Where negligence is gross or - In negligence cases the
shows bad faith (deliberately aggrieved party may choose
committed), it is considered between a criminal action
equivalent to fraud. Any waiver under Art.100 of the revised
of an action for future penal code or a civil action for
negligence of this kind is, damages under Art.2176 of the
therefore, void. new civil code (quasi-delict).
- What is prohibited under
Art.1277 of the new civil code,
to recover twice for the same
negligent act (double recovery
 for the same negligent act is justly demand, whereby such other
prohibited.) person suffers injury
Ex: reckless imprudence resulting in FACTORS TO BE CONSIDERED WHEN IT
homicide. COMES TO NEGLIGENCE:
Responsibility for quasi-delict is 1. Nature of the obligation
not demandable together with the civil 2. Circumstances of the person
liability arising from a criminal offense. 3. Circumstances of time
4. Circumstances of the place
In other words, to be entitled to
damages, it is not required that the “Negligence is never presumed but must
negligence of the defendant should be the be proven by the party who alleges it.”
sole cause of the damage. (pwede rin
- He who alleges must prove.
maging negligent yung plaintiff, as a result
yung damages na mababayaran is na- DIFFERENT KINDS OF DILIGENCE
mitigated na ng court.) REQUIRED
Diligence – is the attention and care
required of a person in a given situation.
(1) that agreed upon by the parties,
ARTICLE 1173
orally or in writing.
Art. 1173 - The fault or negligence of the -kung ano napag-sapan, yun na
obligor consists in the omission of that yon.
diligence which is required by the nature (2) in the absence of stipulation, that
of the obligation and corresponds with required by law in the particular
the circumstances of the person, of the case (like the extraordinary
time and of the place. When negligence diligence required of common
shows bad faith, the provisions of carriers)
Articles 1171 and 2201, paragraph 2, shall - kung ano yung provided by
apply. law.
(3) if both the contract and law are
If the law or contract does not state the silent, then the diligence expected
diligence which is to be observed in the of a good father of a family.
performance, that which is expected of a
- in relation to Art.1163
good father of a family shall be required.

→ Negligence is a question of fact. Its

existence being dependent upon
particular circumstances of eah
case.
Negligence is the failure to observe for
the protection of the interests of another
person that degree of care, precaution,
and vigilance which the circumstances
ARTICLE 1174 In order to exempt the debtor from the
general rule of liability in a fortuitous
Art.1174 - Except in cases expressly
exists and paramount exists then the four
specified by the law, or when it is
requisites must be present.
otherwise declared by stipulation, or
when the nature of the obligation RULES AS TO LIABILITY IN CASE OF
requires the assumption of risk, no FURTUITOUS EVENT
person shall be responsible for those
→ Exceptions to exemption from
events which could not be foreseen, or
liability of obligor due to fortuitous
which, though foreseen, were inevitable.
event.
(1) When expressly specified by law
- Even though may fortuitous
Furtuitous event – any event which
event, the obligor is still not
cannot be foreseen, or which, though
exempted from liability.
foreseen, is inevitable.
a. The debtor is guilty of fraud,
- An event impossible to foresee negligence, or delay, or
or avoid. contravention of the tenor of the
- Essence of fortuitous event obligation.
consists of being a happening Specific thing – designated
independent of the will of the to particularity.
debtor and which happening, b. The debtor has promised to deliver
makes the normal fulfillment the same (specific) thing to two
of the obligation impossible. (20 or more persons who do not
- Generally, if may fortuitous have the same interest.
event the obligor is not liable. c. When the obligation to deliver a
And the obligation will be specific thing arises from a crime.
extinguished. - when the obligation to deliver
of a specific thing arises from a
REQUISITES OF A FORTUITOUS EVENT
criminal offense unless the
1. The event must be independent of thing have been offered by the
the human will or least of debtor’s latter to the person who shall
will. receive it, the latter refused
2. The event could not be foreseen, without justification to accept
or if foreseen, is inevitable. it.
3. The event must be of such a d. the thing to be delivered is
character as to render impossible generic.
for the debtor to comply with his (2) When declared by stipulation
obligation in a normal manner. - Both parties have an agreemet
4. The debtor must be free from any na kahit may fortuitous event,
participation in, or the aggravation liable ka pa rin. It should be
of, the injury to the creditor, that clearly stated or expressed.
is, there is no concurrent (3) When the nature of the obligation
negligence on his part. requires the assumption of risk.
SECTION 1. — Pure and Conditional Condition
Obligations ● is a future and uncertain event,
upon the happening of which, the
2 Major Classification of Obligations effectivity or extinguishment of an
1. Primary Classification obligation (or rights) subject to it
a. Pure and conditional depends.
b. Obligations with a period
c. Alternative and Requirement to consider it a
facultative Obligations condition
d. Joint and Solidary 1. Future and Uncertain
Obligations 2. Past but unknown
e. Divisible and Indivisible A condition must not be impossible.
Obligations
f. Obligations with a penal - Is death a condition? death is a
cause period, although future siya, it is
2. Secondary Classification certain kasi lahat nman tayo
mamatay
ART. 1179. Every obligation whose Note: dapat uncertain, you don’t know
performance does not depend upon a kung mangyayari ba o hindi yung
future or uncertain event, or upon a past condition na un
event unknown to the parties, is
demandable at once. - Either mag-give rise to an
Every obligation which contains a obligation or ma-extinguish ung
resolutory condition shall also be obligation
demandable, without prejudice to the - Ex. “upon passing the subject
effects of the happening of the event. oblicon”
(1113)
TWO PRINCIPAL KINDS OF
Pure Obligation CONDITION
● is one which is not subject to any
condition and no specific date is 1. SUSPENSIVE CONDITION
mentioned for its fulfillment and ● Fulfillment of the
is, therefore, immediately suspensive condition will
demandable. give rise to an obligation or
● Walang condition, walang specific right
date, not subject to a period, ● The dependability of the
immediately demandable condition is suspended
● Ex. if may sinabing specific date, until the happening of the
hindi siya pure obligation and not condition
immediately demandable ● So u cannot demand the
● Ex. may nakalagay na “upon fulfillment of the obligation
demand” = it can be considered, unless the condition has
so immediately demandable nun been fulfilled
● If the suspensive condition
Conditional Obligation does not take place, the
● is one whose consequences are parties would stand as if
subject in one way or another to the conditional obligation
the fulfillment of a condition. had never existed.
● Eto ung mga obligation subject to
condition
 2. RESOLATORY CONDITION 1. When a debtor promises to pay
● Fulfillment of a resolatory when his means permit him to
condition will extinguish an do so
obligation or right already - Magbabayad ako or fufulfill
existing ko ung obligation kapag
● The obligation is already kaya ko na or when my
due and demandable pero means permit me to do so
the happening of the ● What is left only to his will is the
condition will extinguish or duration of the period = sure na
terminate the obligation magbabayad siya, yung is d mo
● Resolutary condition is a alam kung kelan
condition subsequent=
existing na nga ung oblig, 2. Other cases. — As when the
pwedeng ma-extinguish debtor binds himself to pay:
kapag nangyari ung
condition “little by little”
● Immediately demandable “as soon as possible”
siya “from time to time;”
“as soon as I have the money”
When an obligation is demandable at “at any time I have the money”
once? “in partial payments”
“when I am in a position to pay.”
1. When the obligation is pure
2. when it is subject to a resolutory ART. 1181. In conditional obligations,
condition the acquisition of rights, as well as the
3. when it is subject to a resolutory extinguishment or loss of those already
period acquired, shall depend upon the
happening of the event which
ART. 1180. When the debtor binds constitutes the condition.
himself to pay when his means permit
him to do so, the obligation shall be Effect of happening of condition
deemed to be one with a period, subject
to the provisions of Article 1197. 1. Acquisition of rights
● Subject to a suspensive condition
Where duration of period depends ● Ex. bibigyan ng 10k if u will pass
upon the will of debtor. the 2022 Bar Examination = so
kpag dumating ung bar 2022
Period exam and pumasa, ibig sabihin
● is a future and certain event mag-aacquire siya ng right to
upon the arrival of which the demand the 10k
obligation subject to it either
arises or is extinguished. 2. Loss of rights already
● Future and certain to happen= acquired.
death, April 30 ● In obligations subject to a
resolutory condition
The obligation is to be deemed to be ● Ex. bibigyan ng monthily
one with a period even if the allowance hanggang sa
duration depends upon the will of the makagrad sa college, kapag siya
debtor ay nakagrad maloloss na ung
rights already acquire, to receive
 10 k monthly allowance, kapag ● Ex. i will pay u if i want= no
nangyari na ung condition na duration, unlike sa aet 1181 may
makagrad , mawawala na ung intention adn duration, dito wala
right already acquired naman, paano if d nga gustong
magbayad
ART. 1182. When the fulfillment of the
condition depends upon the sole will of 2. Only the condition void.
the debtor, the conditional obligation ● Condition lang ung void pero
shall be void. If it depends upon chance valid pa rin ung obligation
or upon the will of a third person, the ● If the obligation is pre-existing
obligation shall take effect in conformity one, and, therefore, does not
with the provisions of this Code. (1115) depend for its existence upon the
fulfillment by the debtor of the
Potestative condition potestative condition, only the
● a condition suspensive in nature condition is void leaving
and which depends upon the sole unaffected the obligation itself.
will of one of the contracting Here, the condition is imposed
parties. not on the birth of the obligation
● Condition, specifically but on its fulfillment.
suspensive, depends sa sole will - May pre- existing oblig
ng one of the contracting parties tapos ung condition
inimposea mo nlng as a
Where suspensive condition depends mere after thought
upon the will of debtor. ● If an obligation is a pre-existing
one, the obligation remains valid,
1. Conditional obligation void. only the condition is invalid
What if the suspensive condition ● Ex. = the condition is void
depends upon the will of the because it depends upon the sole
debtor, would that mean that the will of the debtor, but the
same conditional obligation is pre-existing obligation is valid,
automatically void? yes , bec its therefore, the debtor would still
validity and compliance is left to be legally demanded to pay
the will of the debtor, it cannot be
therefore legally demanded, kase Where suspensive condition depends
how will I demand it if ung upon the will of creditor.
usapan nakadepende sa debtor ● condition depends exclusively
ung fulfillment ng oblig= upon the will of the creditor, the
sasabihin lng ni debtor “i will not obligation is valid.
fulfill it anymore” = bec ung ● Such obligation is valid since the
debtor always interested na hndi creditor is always interested on
na mafulfill ung oblig para wala the fulfillment of the obligation.
na siyang oblig so illusory ung because it is for his benefit. It is
oblig up to him whether to enforce his
● Conditional obligation is void= the right or no
condition is void then the
obligation is likewise void Where resolutory condition depends
● Bkt magiging void? Kasi nga the upon the will of debtor.
fulfillment of the obligation is ● Obligation is valid
depends upon the SOLE will of ● Kasi the fulfillment of the
the debtor condition merely causes the
 extinguishment or loss of rights Two kinds of impossible conditions.
already acquired. (Art. 1181.) The They are:
debtor is naturally interested in its (1) Physically impossible conditions.
fulfillment. — when they, in the nature of things,
cannot exist or cannot be done; and
Casual Condition
● If the suspensive condition (2) Legally impossible conditions.
depends upon chance or upon — when they are contrary to law,
the will of a third person, the morals, good customs, public order, or
obligation subject to it is valid. public policy
● OR
Effect of impossible conditions.
Mixed condition
● the obligation is valid if the (1) Conditional obligation void.
suspensive condition depends —Impossible conditions annul the
partly upon chance and partly obligation which depends upon them.
upon the will of a third person. (ung nilagay na condition na impossible,
● May concurrence ng change at inaanul or extinguish ung obligation
ng will of the third person= need which depends upon them. )
both ● VOID = obligation and the
● AND= dapat both manyare condition
= The reason behind the law is that the
obligor knows his obligation cannot be
ART. 1183. Impossible conditions, those fulfilled. He has no intention to comply
contrary to good customs or public with his obligation.
policy and those prohibited by law shall
annul the obligation which depends (2) Conditional obligation valid.
upon them. If the obligation is divisible, ● condition is negative or not to do
that part thereof which is not affected by an impossible thing
the impossible or unlawful condition ● VALID= obligation and condition
shall be valid.
The condition not to do an (3) Only the affected obligation void.
impossible thing shall be considered as —If the obligation is divisible, the part
not having been agreed upon. (1116a) thereof not affected by the impossible
condition shall be valid.
● Divisible kasi it is susceptible as
partial fulfillment

(4) Only the condition void.

When Article 1183 applies —— If the obligation is a pre-existing
obligation, and, therefore, does not
● refers to suspensive conditions. It depend upon the fulfillment of the
applies only to cases where the condition which is impossible, for its
impossibility already existed at existence, only the condition is void.
the time the obligation was ● Pre-existing obligations remains
constituted. If the impossibility valid and = only the impossible
arises after the creation of the condition is void
obligation, Article 1266 governs
ART. 1184. The condition that some (1) from the moment the time indicated
event happen at a determinate time has elapsed without the event taking
shall extinguish the obligation as soon place; or
as the time expires or if it has become
indubitable that the event will not take (2) from the moment it has become
place. (1117) evident that the event can not occur,
although the time indicated has not yet
● The happening of an event at a elapsed. If no time is fixed, the
determinate time= extinguish circumstances shall be considered to
determine the intention of the parties.
Positive condition. This rule may also be applied to a
The above article refers to a positive positive condition.
(suspensive) condition — the happening
of an event at a determinate time. The ART. 1186. The condition shall be
obligation is extinguished: deemed fulfilled when the
obligor voluntarily prevents its fulfillment.
(1) as soon as the time expires without (1119)
the event taking place;
● Constructive fulfillment of a
(2) as soon as it has become indubitable suspensive condition= hindi nmn
that the event will not take place tlga nagfulfill si debtor ng
although the time specified has not obligation pero the law considers
yet expired. it to be fulfilled kasi nga the
obligor voluntary prevents its
fulfillment
ART. 1185. The condition that some
event will not happen at a determinate Constructive fulfillment of
time shall render the obligation effective suspensive condition.
from the moment the time indicated has
elapsed, or if it has become evident that There are three (3) requisites for the
the event cannot occur. application of this article:
If no time has been fi xed, the
condition shall be deemed fulfi lled at Requisites= elements must concur in
such time as may have probably been order for u to apply the codal provision,
contemplated, bearing in mind the the absences of any of the elements
nature of the obligation. (1118) hindi siya applicable

Negative condition. (1) The condition is suspensive;

The above provision speaks of a (2) The obligor actually prevents the
negative condition that an event will not fulfillment of the condition; and
happen at a determinate time. (see Art. (3) Obligor acts voluntarily
879.) The obligation shall become
effective and binding:
 Retroactive= ibig sabihin nun,
● Such provision punishes the nagbabalik tanaw, nirerecall mo from the
obligor for preventing the past
fulfillment of the obligation
- So the law considers nga Retroactive effects in obligations to give
na kaht walang actual ● The obligation to give will not be
fulfillment ung debtor dahil demandable unless/until the
sakaniyang preventiion of suspensive condition is fulfilled,
the fulfillment, it is as if ang effect niyan mareretroact
nafulfill= he is liable ● Commence from the time that the
obligation is constituted= hindi sa
● The law does not require that the happening nung condition, kundi
obligor acts with malice or fraud sa kung kailan ba naconstitute
as long as his purpose is to ung obligation
prevent the fulfillment of the ● Condition is just an accidental
condition is voluntary. He should element of the contract= kai d
not be allowed to profi t from his nmn s kasama sa contract itself,
own fault or bad faith to the the contract will exist even
prejudice of the obligee. In a without the condition
reciprocal obligation like a
contract of sale, both parties are (2) In obligations to do or not to do.
mutually obligors and also — With respect to the retroactive effect
obligees of the fulfillment of a suspensive
● Ex. ung condition imposed na condition in obligations to do or not to
maghanap ng buyer para do, no fixed rule is provided.
mabigyan ng 5% comission is ● In oblig to do or not to dom
deemed fulfilled, therefore liable there is no fixed rule as regard
ung isa to give commision the retroactive effect
● Rule: no fixed rule, the court
has the discretion to apply
ART. 1187. The effects of a conditional whatever is just and fair
obligation to give, once the condition
has been fulfilled, shall retroact to the ART. 1188. The creditor may, before the
day of the constitution of the obligation. fulfillment of the condition, bring the
Nevertheless, when the obligation appropriate actions for the preservation
imposes reciprocal prestations upon the of his right.
parties, the fruits and interests during The debtor may recover what
the pendency of the condition shall be during the same time he has paid by
deemed to have been mutually mistake in case of a suspensive
compensated. If the obligation is condition. (1121a)
unilateral, the debtor shall appropriate
the fruits and interests received, unless ● Pending the fulfillment of the
from the nature and circumstances of suspensive condition, the parties
the obligation it should be inferred that have the right to preserve their
the intention of the person constituting rights
the same was different. -
In obligations to do and not to do,
the courts shall determine, in each case,
the retroactive effect of the condition
that has been complied with. (1120)
Rights pending fulfillment of (1) If the thing is lost without the fault of
suspensive condition. the debtor, the obligation shall be
extinguished;
(1) Rights of creditor (2) If the thing is lost through the fault of
● He may take or bring the debtor, he shall be obliged to pay
appropriate actions for the damages; it is understood that the thing
preservation of his right. is lost when it perishes, or goes out of
● Thus, he may go to court to commerce, or disappears in such a way
prevent the alienation or that its existence is unknown or it cannot
concealment of the property be recovered;
● Ex. i will give u a parcel of land (3) When the thing deteriorates without
provided pumasa ka sa bar the fault of the debtor, the impairment is
exam= hindi ka pa nakakapasa to be borne by the creditor;
ng bar exam, so how wil u protect (4) If it deteriorates through the fault of
or preserve ur right as creditor. the debtor, the creditor may choose
- Annotate the oblig in the between the rescission of the obligation
cerf of title sa registry of and its fulfillment, with indemnity for
property to protect ur right damages in either case;
(5) If the thing is improved by its nature,
(2) Rights of debtor. or by time, the improvement shall inure
— He is entitled to recover what to the benefit of the creditor;
he has paid by mistake prior to (6) If it is improved at the expense of the
the happening of the debtor, he shall have no other right than
suspensive condition. that granted to the usufructuary. (1122)
● This right is granted to the debtor
because the creditor may or may Requisites for application of Article
not be able to fulfill the condition 1189.
imposed and hence, it is not Article 1189 applies only if:
certain that the obligation will
arise (1) The obligation is a real obligation;
● This is a case of solutio indebiti ● Obligation to give or to deliver
which is based on the principle
that no one shall enrich himself at (2) The object is a specific or
the expense of another. determinate thing;
● Ex. i will give u a 10K provided u ● Physically segregated, identified
will pass the bar exam= and by by its individuality
mistake kala nung debtor
nakapasa na si creditor so (3) The obligation is subject to a
nagbigay ng 10K= pero hindi pa suspensive condition;
nafulfill ung suspensive ● Fulfillment will give rise to
condition= debtor may recover = obligation(or right)
solution indebiti
(4) The condition is fulfilled; and
ART. 1189. When the conditions have
been imposed with the intention of (5) There is loss, deterioration, or
suspending the efficacy of an obligation improvement of the thing during the
to give, the following rules shall be pendency of the happening on one
observed in case of the improvement, condition.
loss or deterioration of the thing during
the pendency of the condition:
Kinds of loss. ● Obligtaion is also extinguished
pero it is converted to payment of
(1) Physical loss. — when a thing the damages
perishes as when a house is burned and
reduced to ashes; or (3) Deterioration of thing without
(2) Legal loss. — when a thing goes out debtor’s fault.
of commerce (e.g., when it is — A thing deteriorates when its value
expropriated) or when a thing heretofore is reduced or impaired with or without
legal becomes illegal e.g., during the the fault of the debtor.
Japanese occupation, American dollars
had become impossible since their use ● Ex. if ung car na-accident=
was forbidden by the belligerent nabangga, nasira = walang loss,
occupant); or there is only deterioratio without
(3) Civil loss. — when a thing the fault of the debtor
disappears in such a way that its ● It will reduce the value of the car
existence is unknown (e.g., a particular and the creditor will have to suffer
dog has been missing for sometime); or for the deterioration or
even if known, it cannot be recovered impairment =THE DEBTOR IS
(Art. 1189[2].), whether as a matter of NOT LIABLE TO PAY THE
fact (e.g., a particular ring is dropped REDUCED AMOUNT
from a ship at sea) or of law (e.g., a ● RULE: Creditor shall suffer the
property is lost through prescription). deterioration if the same is not
(see Art. 1262.) due to the debtor’s fault

Rules in case of loss, etc. of thing (4) Deterioration of thing through

during pendency of suspensive debtor’s fault.
condition. — the creditor may choose between
rescission wd damages or fulfillment of
(1) Loss of thing without debtor’s fault. obligation wd damages
—loss due to a fortuitous event?
Generally, the debtor or obligor is not ● a) Rescission (or cancellation)
liable of the obligation with damages;
in the case D is liable to pay
● The obligation shall be deemed P100,000.00, value of the car
extinguished and the debtor is before its deterioration plus
not liable to the creditor incidental damages, if any;or
● A person, as a general rule, is - Babayaran ung value nung
not liable for a fortuitous event. car bago deterioration and
(Art. 1174.) incidental damages

● (b) Fulfillment of the obligation

(2) Loss of thing through debtor’s fault. also with damages (see Art.
—may fault or negligence si debtor, so 1191.); in this case, D is bound to
he is liable C to give the car and pay
P20,000.00 plus incidental
● Ex. if the loss of the car is due to damages, if any.
negligence of the debtor, in that - Deliver the car and pay the
case, the creditor is entitled to amount corresponding to
demand the damages the deterioration +
- Negligence= damages incidental damages
(5) Improvement of thing by nature or by Effects of fulfillment of resolutory
time. condition.
— A thing is improved when its value is
increased or enhanced by nature or by (1) In obligations to give.
time or at the expense of the debtor or — When the resolutory condition in an
creditor. (see Art. 1187.) obligation to give is fulfilled, the
● Ex. If tumaas ung market value obligation is extinguished (Art. 1181.)
nung car kanina= improvement and the parties are obliged to return to
shall inure to the benefit of the each other what they have received
creditor under the obligation.
● Kasi nga kanina sa deterioration, - Obligation is extinguished so may
ang masusuffer without the duty to return what they have
debtors’s fault ay si creditor = so received
sa improvement it will accrue to - Once the resolutory condition has
the benefit of the creditor = so it been fulfilled= isauli mo or return
will be fair enough mo

(2) In obligations to do or not to do.

(6) Improvement of thing at expense of — In some obligations, the courts shall
debtor. determine the retroactive effect of the
—ex if pinaint ung car at the expense of fulfillment of the resolutory condition
the debtor (par. 2.) as in the case where the
condition is suspensive. (Art. 1187, par.
● Debtor has the right of 2.) The courts in the exercise of
usufructuary with respect to discretion may even disallow
improvements made of the thing retroactivity taking into account the
held in usufruct. circumstances of each case.

Usufruct ART. 1191. The power to rescind

-the right to enjoy the use and fruit of the obligations is implied in reciprocal ones,
thing belonging to another in case one of the obligors should not
comply with what is incumbent upon
him.
ART. 1190. When the conditions have The injured party may choose
for their purpose the extinguishment of between the fulfillment and the
an obligation to give, the parties upon rescission of the obligation, with the
the fulfi llment of said conditions, shall payment of damages in either case. He
return to each other what they have may also seek rescission, even after he
received. has chosen fulfillment, if the latter
In case of the loss, deterioration should become impossible.
or improvement of the thing, the The court shall decree the
provisions which, with respect to the rescission claimed, unless there be just
debtor, are laid down in the preceding cause authorizing the fixing of a period.
article shall be applied to the party who This is understood to be without
is bound to return. prejudice to the rights of third persons
As for obligations to do and not to who have acquired the thing, in
do, the provisions of the second accordance with Articles 1385 and 1388
paragraph of Article 1187 shall be and the Mortgage Law.8 (1124)
observed as regards the effect of the
extinguishment of the obligation. (1123)
2 KINDS OF OBLIGATIONS When a party demands rescission in
ACCORDING TO THE PERSON reciprocal obligations he, in effect,
OBLIGED treats the non-fulfillment by the other
party of his obligation as a resolutory
(1) Unilateral condition.
— when only one party is obliged to NOTE: 2 remedies are alternative in
comply with a prestation. character = pili ka lang
● Ex. contracts of loan, donation
Effect of rescission is mutual
(2) Bilateral. restitution
— when both parties are mutually bound
to each other. In other words, both ART. 1192. In case both parties have
parties are debtors and creditors of committed a breach of the obligation,
each other. Bilateral obligations may be the liability of the first infractor shall be
reciprocal or non-reciprocal. equitably tempered by the courts. If it
● Ex. contract of sale cannot be determined which of the
parties first violated the contract, the
(a) Reciprocal obligations same shall be deemed extinguished,
● Isa lang ung contract pero both and each shall bear his own damages.
partieas are mutually bound to
comply what is incumbent upon ● Possible breach of obligation in
him both parties

Where both parties guilty of breach.

(b) Non-reciprocal obligations The above article contemplates two
● those which do not impose situations.
simultaneous and correlative
performance on both parties. In (1) First infractor known.
other words, the performance of One party violated his obligation;
one party is not dependent subsequently, the other also violated his
upon the simultaneous part of the obligation. In this case, the
performance by the other. liability of the first infractor should be
- 2 ung contract = contract equitably reduced.
of commudatum and
contractact of loan (2) First infractor cannot be determined.
—the first infractor cannot be
Remedies in reciprocal obligations. determined, the obligation shall be
deemed extinguished
Choice of remedy by injured party. ● The contract or agreement shall
In case one of the obligors does not not be enforced and in effect, the
comply with what is incumbent upon court shall not provide a remedy
him, the injured or aggrieved party may to either of the parties= the court
choose between two remedies: must leave them as they are

(1) action for specific performance

(fulfillment) of the obligation with
damages;9 or
(2) action for rescission of the obligation
also with damages.
SECTION 2 : Obligations at a time which
cannot be
with a Period determined

ART. 1193. Obligations for whose (2) As to only to the Future and
time future also to a
fulfillment a day certain has been fixed,
past event
shall be demandable only when that day unknown to
comes. the parties

Obligations with a resolutory period take (3) As to infl merely fixes the causes an
effect at once, but terminate upon arrival uence on time for the obligation to
the efficaciousness arise or to
of the day certain.
obligation of the cease.
obligation.
A day certain is understood to be that If suspensive, it —->
which must necessarily come, although cannot prevent idedetermin
it may not be known when. the birth of the e kung
obligation in mag-aarise
If the uncertainty consists in whether the due time; ba or
if resolutory, it magceceas
day will come or not, the obligation is
does not annul, e ung
conditional, and it shall be regulated by even in fiction, obligation
the rules of the preceding Section. the fact of its
(1125a) existence.

obligation with a period —> finifix lng un

time of the
- one whose consequences are
effectivity
subjected in one way or another to
the expiration of said period or term (4) As to depends upon A condition
effect, when the will of the which
Period or Term left to debtor depends
debtor’s will empowers the upon the
- a future and certain event upon the
court to fix the sole will of
arrival of which the obligation (or duration thereof the debtor
right) subject to it either arises or is invalidates
terminated. —-> the
- It is a day certain which must obligation
necessarily come (like the year
2005; next Christmas), although it —>
potestative
may not be known when, like the on the part
death of a person. (Art. 1193, par. 3.) of the
+ Death of a person = hindi debtor; it is
natin alam kung kailan invalid
mamatay ang isang tao but
definitely that day will come (5) As to Unless there is the
retroactivity an agreement happening
of effects. to the contrary, of a
Period and condition distinguished. the arrival of a condition
period does not has a
have any retroactive
PERIOD CONDITIO retroactive effect.
N effect
(1) As to A certain event an uncertain
—->
fulfillment. which must event
happen sooner
or later at a
date known
beforehand, or
PERIOD MUST BE POSSIBLE, (b) Indefinite period. — When it is not fixed
● PERIOD IS IMPOSSIBLE (e.g., or it is not known when it will come. Where
February 30, because it will never the period is not fixed but a period is
come; within 24 hours to deliver a intended, the courts are usually empowered
ship in a foreign country because it by law to fix the same. (see Art. 1197.)
is too short) = OBLIGATION IS VOID ● Fixed na nga pero d mo alam kelan
darating
Kinds of period or term. ○ Death
○ Hindi nagset or hindi nafix
(1) According to effect: ung period sa
nagapag-usapan pero may
(a) Suspensive period (ex die). — The intention on the parties to fix
obligation begins only from a day certain a period, courts may fix the
upon the arrival of the period (Art. 1193, par. same period according to the
1.); and intention of the parties
● What is suspended is not the
obligation itself but its demandability
ART. 1194. In case of loss, deterioration
(b) Resolutory period (in diem). — The or improvement of the thing before the
obligation is valid up to a day certain and arrival of the day certain, the rules in
terminates upon the arrival of the period. Article 1189 shall be observed. (n)
(par. 2.)
● Demandable at once and arrival of a ● Suspensive period eto, art. 1189
period will extinguish or terminate nmn is suspensive condition tho
the obligation parehas lang ung rule

LOSS OF THING
(2) According to source:
without obligation = exception
(a) Legal period. — When it is provided for debtor’s extinguished =
by law; fault. and the debtor negligenc
● Payment of income taxes (fortuitous is not liable to e, in
event) the creditor delay,
(b) Conventional or voluntary period. — fraud,
generic
When it is agreed to by the parties (Art.
thing
1196.); and
● Kung ano ung nakalagay sa contract through Liable for
and napag-agreehan debtor’s damages
fault.
(c) Judicial period. — When it is fixed by the Negligence=
damages
court. (Art. 1197.)
● When the obligation depends upon
the will of the debtor empowers the
court to fix the duration thereof DETERIORATION OF THE THING

(3) According to definiteness: without Creditor will bear

debtor’s the loss
(a) Definite period. — When it is fixed or it is fault.
known when it will come (Art. 1193, par. 3.); THE DEBTOR
and IS NOT LIABLE
● Alam mo na beforehand kung kelan through Liable for
dadating debtor’s damages
fault.
a) Rescission (or
 ● Pwede manyari na akala mo due na
cancellation) of
the obligation ung oblig, so akala mo due na ung
with damages; utang mo so nagbayad ka but later
on narealized mo n next pa pla ung
(b) Fulfillment of due= PAYMENT BY MISTAKE,
the obligation So in that case, pwedeng bawiin for
also with the mean time na hindi pa naman
damages
ang-aarive ung suspensive period,
pwedeng bawiin muna ung nabayad
by mistake= RECOVER kac HINDI
IMPROVEMENT OF THE THING PA NAMAN DUE AND
DEMANDABLE
By nature Benefit the E.g.
creditor The Payment was supposed to be
paid on December 31, 2020

at expense Right to
The debtor, by mistake, paid his
of the Usufruct
debtor. obligation on Dec. 31 2019
Debtor can
improve but ● May one yr pa para
nd pd singilin makapagbayad,
ung creditor, ● June 30= may recover
only have the 2000 + 120 ( ung interest,
right to
legal rate 12% a yr,)
enjoyment

Can remove
the NO RIGHT TO RECOVER IF THE
improvement DEBTOR HAD THE KNOWLEDGE
without OF THE PERIOD
damaging the
● Kung alam naman talaga na
thing, PWEDE
ung pagbabayad ay sa 2020
pa but despite the knowledge
he insisted the payment
ART. 1195. Anything paid or delivered ● The principle of Solutio
before the arrival of the period, the Indebiti will not apply, he
obligor being unaware of the period or deemed to have impliedly
believing that the obligation has become renounced the period.
due and demandable, may be recovered,
with the fruits and interests. (1126a) DEBTOR CAN NOT RECOVER WHAT HE
HAD PAID BY MISTAKE IF THE DEBT
● Implies only to real obligation or HAD ALREADY MATURED.
obligation to give ● Kagaya kanina, nagbayad ng 2019,
but ung date ngayon is 2021 na,
● similar to Article 1188, paragraph 2, hindi na pwedeng irecover kasi ung
which allows the recovery of what due date na dec. 31, 2020
has been paid by mistake before nag-expire na, he may recover only
the fulfillment of a suspensive the interest from dec. 31 2019 to
condition. december 31 2020
● REASON: The creditor cannot
unjustly enrich himself by retaining
the thing or money received before
the arrival of the period.
NO RIGHT OF RECOVERY IN PERSONAL D cannot pay before December 31 without
OBLIGATIONS the consent of C. Neither can C compel D to
● Article 1195 has no application to pay before the expiration of the term.
obligations to do or not to do ● Pwede naman magbayad ahead of
● TO DO = it is physically impossible time provided na magcoconsent si
to recover the service rendered creditor
● NOT TO DO= as the obligor ● It is presumed that the period
performs by not doing, he cannot, of designated, which is December 31,
course, recover what he has not has been established for the benefi t
done of both. D is benefi ted because he
can use the money for one year. C is
also benefi ted because of the
ART. 1196. Whenever in an obligation a interest the money would earn for
period is designated, it is presumed to one year.
have been established for the benefit of ●
both the creditor and the debtor, unless In a contract of the loan with interest, the
from the tenor of the same or other term is generally for the benefit of both the
circumstances it should appear that the lender and the borrower.
period has been established in favor of
one or of the other. (1127) This is also the case even where there is no
interest stipulated but the creditor receives,
Presumption as to benefit of period. in place of interest, other benefits by reason
● Presumption as regards the of the period.
beneficiality of the period stipulated
by the parties ● May mga benefits kac ung period so
● OBLI subj to a PERIOD fixed by the hindi pwedeng basta basta lang
PARTIES = the period is presumed balewalain without the consent of
to have been established for the the other
benefit of both the creditor and the
debtor. GENERAL RULE:
○ Kac nga nag-uuusap yan, if Period stipulated is presumed to be for
may napagkasunduan sila, it the benefit of the both parties.
is pressumed na un ung
convenient to both of the EXEMPTION TO THE GENERAL RULE:
parties When the tenor of the obligation or the
○ This means that before the circumstances may, however, show that it
expiration of the period, the was the intention of the parties to constitute
debtor may not fulfill the the period for the benefit of either the debtor
obligation and neither may or the creditor. The benefit of the period
the creditor demand its may be the subject of express stipulation of
fulfillment without the the parties.
consent of the other
especially if the latter would ● Pwedeng ang direction ng period
be prejudiced or para sa benefit ng debtor lang or
inconvenienced thereby. creditor lang

The presumption, of course, is EXEMPTION (1) Period is for the benefit

rebuttable. of the debtor alone
● He cannot be compelled to pay
EXAMPLE: prematurely, but he can, if he
On January 1, D borrowed from C desires, do so.
P10,000.00 payable on December 31 at ● Kung gusto niyang magbayad ahead
18% interest. of time= PWEDE, pero he cannot be
 compelled to pay before the due ○ To illustrate: One calendar
date month from December 31,
EXAMPLES: 2007 will be from January 1,
(1) D borrowed from C P10,000.00 to be 2008 to January 31, 2008;
paid within one year without interest. one calendar month from
● 1 yr period deemed intended for the January 31, 2008 will be from
benefit of the debtor only, he can February 1, 2008 until
pay anytime but he cannot be February 29, 2008.
compelled to pay before 1 yr ● CIVIL CODE: “When the law speaks
● The debtor have until 1 yr to pay it, of years, months, days or nights, it
the debtor cannot be compelled to shall be understood that years are of
pay the loan by the creditor without three hundred sixty-fi ve (365) days
the consent of the debtor, but if the each; months of thirty (30) days;
debtor want, he can pay anytime days of twenty-four (24) hours; and
basta before nights from sunset to sunrise. If
months are designated by their
(2) D promised to pay his debt “on or before name, they shall be computed by the
December 31, 2004.” number of days which they
● May option ang debtor na pd na respectively have. In computing a
before dec 31, 200 siya magbayad, period, the fi rst day shall be
or pd na dec 31, 2004 na excluded, and the last day included.”
(Art. 13 thereof.)

EXEMPTION (2) PERIOD is for the benefit RECONCILE = USE THE PRINCIPLE OF
of the creditor alone. STATUTORY CONSTRUCTION TO
● He may demand fulfillment even HARMONIZE THE CONFLICTING
before the arrival of the term but the PROVISIONS
debtor cannot require him to accept ● The Administrative Code of 1987
payment before the expiration of the being the more recent law governs
stipulated period. the computation of legal periods.
● Kabaliktaran nung una ● More recent law will PREVAIL over
● Hindi pa man dumadating ung the previous law
period pwede nang magdemand si
creditor, pero si debtor if he wishes
to pay before the arrival of the period ART. 1197. If the obligation does not fix a
he cannot do so without the consent period, but from its nature and the
of the creditor circumstances it can be inferred that a
period was intended, the courts may fix
Computation of term or Period the duration thereof.
● BASIS = Administrative Code of
1987 ( executive order no. 292) The courts shall also fix the duration of
○ “Legal Periods = “Year’’ shall the period when it depends upon the will
be understood to be twelve of the debtor.
calendar months: “month’’ of
thirty days, unless it refers to In every case, the courts shall determine
a specific calendar month in such period as may under the
which case it shall be circumstances have been probably
computed according to the contemplated by the parties. Once fixed
number of days the specific by the courts, the period cannot be
month contains; “day,’’ to a changed by them. (1128a)
day of twenty-four hours; and
“night’’ from sunset to ● May limited authority ung court to
sunrise.’’ fix a period but take note that the court is
generally without the power to fix the period,
the period being mentioned refers to a EXAMPLES:
judicial period (1) X agreed to construct the house of Y.
The parties failed to fix the period within
contractual period which the construction is to be made. Here,
● period fixed by the parties in their the court can fix the term for it is evident
contract that the parties intended that X should
construct the house within a certain period.
(see Concepcion vs. People, 74 Phil. 63
GENERAL RULE: if the obligation does [1942].)
not state a period and no period is
intended the court is not authorized to Duration of period depends upon the will
fix a period. The courts have no right to of the debtor.
make contracts for the parties ● Art. 1180
● If makikita sa agreement na wala
naman talagang intention ung Whenever the court fixes the term of an
parties to put a period then the court obligation, it does not thereby modify or
cannot come to fix a period for the ammend, but it is merely enforcing the
parties, THE ONLY TIME THT THE implied stipulation of the parties( merely
COURT CAN FIX THE PERIOD IS enforces or carried out the intention of the
WHEN THERE IS MANIFEST parties)
INTENTION ON THE PARTIES TO ● Hindi magdadag-dag ng kontrata
BE BOUND BY A PERIOD YET ang court , iinterapret lang niya
HINDI LANG NAREFLECT SA
KANILANG AGREEMENT
● THE COURT HAVE NO RIGHT TO Legal effect where suspensive period/
MAKE CONTRACTS FOR THE condition depends upon will of debtor.
PARTIES< NAG-INTERPRET LANG
ANG COURNT NG CONTRACTS (1) The existence of the obligation is not
MERON ANG PARTIES TO affected although the period depends upon
REFLECT TO THEIR INTENTIONS the sole will of the debtor. It is only the
performance with respect to time that is left
GENERAL RULE: Courts are not to the will of the debtor.
empowered or not authorized to fix a ● Art 1180
period for the party ● Supensive period depends upon the
will of the debtor: PWEDE
Exceptions to the general rule.
(2) If the obligation is subject to a condition
No period is fixed but a period was which depends upon the will of the debtor,
intended. the conditional obligation is void (Art. 1182.)
● When there is no period but a period because in such case, it is actually the
was intended by the parties fulfillment of the obligation that depends
○ Wlng nakalagay na period upon the will of the debtor. (see Art. 1308.)
pero makikita mo naman na ● Suspensive condition depends upon
the way that the agreement the sole will of the debtor(Potestative
is bounded eh may intention condition): VOID
to be bound by a period pero
ung agreement fails to fix the RULE: Period fixed cannot be changed
period by the courts.
● If the obligation does not fix a period
but it can be inferred from its nature (1) If there is a period agreed upon by the
and the circumstances that a period parties and it has already lapsed or expired,
was intended by the parties, the the court cannot fix another period.
court may fix the period. ● In default na ung isa jan
 ● COURT CAN ONLY FIX WHEN; no When obligation can be demanded before
period is fixed but a period is lapse of period.
intended and duration of the
period is upon the will of the GENERAL RULE: Before the arrival of
debtor the suspensive period hindi mo pwedeng
idemand ‘yan
(2) From the very moment the parties give ● the obligation is not demandable
their acceptance and consent to the period before the lapse of the period.
fixed by the court, said period acquires the
nature of a covenant, because the effect of 1198 provides that there are cases where
such acceptance and consent by the parties an obligation can be demanded even
is exactly the same as if they had expressly prior to the lapse of the period agreed
agreed upon it, and having been agreed upon.
upon by them, it becomes a law governing
their contract. The period fixed in a final The debtor shall lose every right to make
judgment is res judicata and as such forms use of the period:
an integral part of the imperfect contract ○ Mawawalan na ng karapatan
which gave rise to its designation by the na gamitin ung benefit of the
court, and thence, forward part of a perfect period which is for his benefit
and binding contract. Consequently, the ○ It means that the creditor can
court cannot change it. (Barretto vs. City of demand payment even
Manila, 11 Phil. 624 [1908].) However, the before the maturity date
parties may modify the term by a new
agreement. ● the period is disregarded and the
● If hindi satisfied dun sa ano ng court obligation becomes pure and,
they can modify to new agreeement therefore, immediately demandable
○ MAGIGING PURE( which is
immediately demandable)
ART. 1198. The debtor shall lose every
right to make use of the period: The exceptions are based on the fact that
(1) When after the obligation has been the debtor might not be able to comply with
contracted, he becomes insolvent, his obligation.
unless he gives a guaranty or security
for the debt; (1) When debtor becomes insolvent. —
(2) When he does not furnish to the ● Insolvent = one person is insolvent if
creditor the guaranties or securities hindi siya makapagbayad ng
which he has promised; obligasyon at pagkakautang at the
(3) When by his own acts he has time that the obligation becomes due
impaired said guaranties or securities and demandable
after their establishment, and when = or he is financial distress na mas
through a fortuitous event they malaki ung liabilities kesa sa
disappear, unless he immediately gives kaniyang assets
new ones equally satisfactory;
(4) When the debtor violates any EXAMPLE:
undertaking, in consideration of which D owes C P10,000.00 due and
the creditor agreed to the period; payable on December 20. If D
(5) When the debtor attempts to becomes insolvent, say on
abscond. (1129a) September 10, C can demand
immediate payment from D even
before maturity unless D gives
sufficient guaranty or security
● Due and payable on Dec.20
● Debtor becomes insolvent on
september 10= before the
 obli becomes due and demandable unless D gives a new
demandable ( 3 months security equally satisfactory
before) ● Bec of negligence or fault of
● Can the creditor demand debtor= the house need not
payment even if the period be totally destroyed as it is
has not yet arrived? Yes, the sufficient that the security be
basis is Art 1198 par. 1, the impaired by the act of Debtor
creditor can demand ○ Ung bahay naburned
immediate payment from the down bec of the
debtor even before the debtor, not need to be
maturity unless the debtor totally destroyed,
gives a sufficient guaranty or sufficient na na
security for the debt na-impared
(pwedeng ipromise ung car ● in case of a fortuitous event,
as a security ) it is required that the security
● The insolvency in this case must disappear.
need not be judicially ○ Bec of furtuitious
declared. It is sufficient that event ung bahay
the assets of Debtor are less nasunog, need na
than his liabilities or Debtor is total burned down
unable to pay his debts as ● But if the security given
they mature. deteriorates in such a
Note: that the insolvency of Debtor must manner as to become
occur after the obligation has been illusory, it must be deemed to
contracted. have disappeared or lost as
contemplated in paragraph 3.
(2) When debtor does not furnish ○ Bec of fortuitous
guaranties or securities promised. — event nagdeteriorate
● Ex. nagcontract ng obli si debtor and lng, it must become
creditor, napagusapan na the debtor dissaped or lost
is supposed to give or furnish
halimbawa the collateral gurantee or If the debt is secured by a bond, the failure
security because of that debt or of D to renew the bond or replace it with an
loan, tapos hindi naman niya equivalent guarantee upon its expiration will
binibigay kay creditor, in that case, likewise give C the right to demand
the creditor can avail the remedy( immediate payment.
debtor= he shall lose his right to the
period, Creditor= can immediately (4) When debtor violates an undertaking.
demand the payment) —
● Example: the C agreed to the period
in consideration of the promise of D
(3) When guaranties or securities given to repair the piano of C free of
have been impaired or have disappeared. charge. The violation of this
— undertaking by D gives C the right to
● nangutang dahil sa isang security or demand immediate payment of the
grantee kaso ung gurantee or loan.
security na ito ay na-impare or kaya ● Kaya nagpautang kasi si C kasi sabi
nagdissapear, hindi na secured ung ni D he will repair the piano free of
loan, the remedy can be avail charge, but when D violated the
● EXAMPLE: undertaking to repair the piano, it will
If the debt is secured by a mortgage make the obligation due and
on the house of D, but the house demandable
was burned through his fault, the ○ The fact na hindi ginawa ung
obligation also becomes piano, that is a violation of
 D’s undertaking, kasi without
that promised the C hindi
namna papautangin si D

(5) When debtor attempts to abscond. —

● Before the due date of the
obligation, D (debtor) changed his
address without informing C
(creditor) and with the intention of
escaping from his obligation. This
act of D is a sign of bad faith which
results in the loss of his right to the
benefit of the period stipulated.
Observe that a mere attempt or
intent to abscond is sufficient.
○ Debtor changed address and
wd intention from escaping
○ Hal. magkapitbahay lang, tas
madaling aarw nag aalsa
balutan ung D and wala ng
planong bumalik= mere
attempt= pwede nang
puntahan at singingilin
○ Mere attempt to abscond
would mean forfeture of the
benefit of the suspensive
period
● Kapag tinataguan na ng Debtor, par.
5, sign na ayaw na magbayad,
demandable na
 - Even if without express mentioned
SECTION 3. — kung sinong mamimili, si debtor ang
Alternative Obligations default
By way of exception, it may be
exercised by the creditor but only
ART. 1199. A person alternatively bound
when expressly granted to him (Art.
by different prestations shall completely
1205.), or by a third person when the
perform one of them.
right is given to him by common
The creditor cannot be compelled
agreement. (Art. 1306.)
to receive part of one and part of the
- If there is an express
other undertaking. (1131)
agreement na si creditor ang
may right to choose, edi si
creditor or ung 3rd person,
Kinds of obligation according to object
kapag both the creditor and
debtor consented or agreed
Simple Obligation
● There is only one prestation
Right of choice of debtor not absolute.
● Isang prestation lang

The right of choice of the debtor is

Compound Obligation
subject to limitations. Thus —
● Where there are two or more
prestations
(1) The debtor cannot choose those
prestations which are: (a) impossible, (b)
(a) Conjunctive Obligation
unlawful, or (c) which could not have
- Where there are several
been the object of the obligation. These
prestations and all of them
prestations are void. Their presence do not
are due
invalidate the obligation if it includes other
- Lahat ay due
undertakings otherwise free from such
defects. In other words, under Article 1200,
(b) Distributive Obligation
the debtor’s right of choice is not
- One or two or more
extinguished altogether but limited to the
prestations are due
remaining valid prestations.
- Alternative and Facultative
● Kung may several prestations ka tas
ilan dun sa several prestations na un
1. Alternative obligation
ay impossible such when they are
● is one where several
illegal or unlawful, ung obligation
prestations are due but the
itself is NOT VOID, ONLY THE
performance of one of them
PRESTATION IS VOID, the debtor
is sufficient
has no right to choose which is
● General rule: the choice
unlawful or impossible prestation
belongs to the debtor

(2) The debtor has no more right of choice,

when among the prestations whereby he is
ART. 1200. The right of choice belongs to
alternatively bound, only one is practicable.
the debtor, unless it has been expressly
(Art. 1202.) In this case, there is not only a
granted to the creditor.
limitation but a loss of the right of choice
The debtor shall have no right to
belonging to the debtor. The obligation
choose those prestations which are
becomes simple.
impossible, unlawful or which could not
● There is not only a limitation but a
have been the object of the obligation.
loss of the right, no choice= the
(1132)
obligation becomes simple na, u
have to comply ano nalang ung
GENERAL RULE: The right to choose the
natira
prestation belongs to the debtor.
 The right does not pass to the choice. The law does not require any
creditor, nor may it be exercised by any one. particular form regarding the giving of
notice. It may, therefore, be made orally or
(3) The debtor cannot choose part of one in writing, expressly or impliedly.
prestation and part of another prestation.
(see Art. 1199, par. 2.)
● Bawal ang partial performance dapat
complete ang performance ART. 1202. The debtor shall lose the right
of choice when among the prestations
ART. 1201. The choice shall produce no whereby he is alternatively bound, only
effect except from the time it has been one is practicable. (1134)
communicated. (1133)
● Importante dito ung communication Effect when only one prestation is
of notice that the choice has been practicable.
made If more than one is practicable, it is Article
1200 that will apply. The obligation is still
alternative because the debtor still retains
Communication of notice that choice has the right of choice
been made. ● Kasi nga alternative obli un marami
(1) Effect of notice. — Until the choice is kng choice
made and communicated, the obligation
remains alternative. Under Article 1202, if only one is practicable
● Ung alternative becomes simple kasi (e.g., the others have become impossible),
kapag may na elect= the obligation is converted into a simple
nakapagchoose tapos one.
naicommunicate ● Simple one= immediately
demandable or demandable at once
(a) Once the notice of the election has been
given to the creditor, the obligation ceases
to be alternative and becomes simple.
ART. 1203. If through the creditor’s acts
b) Such choice once properly made and the debtor cannot make a choice
communicated is irrevocable and cannot, according to the terms of the obligation,
therefore, be renounced. The concurrence the latter may rescind the contract with
of the creditor to the choice is not required. damages. (n)
(see Art. 1200.) ● Si debtor hindi siya makagawa ng
- Once na na-express na ni debtor choice dahil fault ni creditor acts
ung choice and has been pwede niya irescind or icancel with
communicated, irrevocable na, tsaka damages
hindi na required ung consent ng
creditor
When debtor may rescind contract.
(c) Where the choice has been expressly
given to the creditor, such choice shall Rescission creates the obligation to
likewise produce legal effects upon being return the things which were the object of
communicated to the debtor. (Art. 1205, par. the contract together with their fruits, and
1.) the price with its interest. (Art. 1385, par. 1.)
● Same lang, either parties, Kailangan
communicated ung choice or give It is the very nature of an alternative
notice obligation that the debtor can make his
choice without the consent of the creditor.
(2) Proof and form of notice. — The Hence, the right given the debtor to rescind
burden of proving that such communication the contract and recover damages if,
has been made is upon him who made the through the creditor’s fault, he cannot make
a choice according to the terms of the fortuitous event, the obligation is
obligation. The debtor, however, is not extinguished.
bound to rescind. ● Fault of debtor= liability to the
● Hindi naman sinasabi na debtor damages
shall rescind, the debtor is only ● Thru fortuitous event= follow the
given an option to rescind= kung general rule, obligation is
gusto lang niya with damages extinguished
● MAY= ung ginamit na term, hindi
naman mandatory, option lang Basis of indemnity.
The indemnity shall be fixed taking
as a basis the value of the last thing
which disappeared (referring to
ART. 1204. The creditor shall have a right obligations to give) or that of the service
to indemnity for damages when, through which last became impossible (referring
the fault of the debtor, all the things to obligations to do). In case of
which are alternatively the object of the disagreement, it is incumbent upon the
obligation have been lost, or the creditor to prove such value, or which thing
compliance of the obligation has become last disappeared or which service last
impossible. became impossible.
The indemnity shall be fixed Other damages may also be
taking as a basis the value of the last awarded. (Art. 1204, pars. 2 and 3.)
thing which disappeared, or that of the ● Kung nawala ung all, u will ascertain
service which last became impossible. what is last thing
Damages other than the value of ● In case of disagreement, the creditor
the last thing or service may also be will prove the value of the last thing
awarded. (1135a) that disappeared na nagging basis
niya for indemnity, kung ano ung
Effect of loss or becoming impossible of huling nawala un ung basis ng
objects of obligation. indemnity
● Ang magmamatter lang ay ang kung
Articles 1203 and 1204 apply when the right ano ung last item na nawala at
of choice belongs to the debtor. paano ito nawala(fault ba? Edi
liable)
Under Article 1205, the creditor has the right
to choose.

(1) Some of the objects. —— If some of ART. 1205. When the choice has been
the objects of the obligation have been lost expressly given to the creditor, the
or have become impossible even through obligation shall cease to be alternative
the fault of the debtor, the latter is not liable from the day when the selection has
since he has the right of choice and the been communicated to the debtor.
obligation can still be performed. This is an Until then the responsibility of the
exception to the general rule established in debtor shall be governed by the
Article 1170 regarding liability for following rules:
damages arising from negligence. (1) If one of the things is lost
● Hindi liable to damages, the debtor through a fortuitous event, he shall
has right to choose perform the obligation by delivering that
which the creditor should choose from
(2) All of the objects. — If all of them have among the remainder, or that which
been lost or have become impossible remains if only one subsists;
through the debtor’s fault, the creditor shall (2) If the loss of one of the things
have a right to indemnity for damages since occurs through the fault of the debtor,
the obligation can no longer be complied the creditor may claim any of those
with. Of course, if the cause of the loss is a subsisting, or the price of that which,
through the fault of the former, has ● Pwedeng mamili si creditor kung ano
disappeared, with a right to damages; ung gusto niyang pabayaran +
(3) If all the things are lost damages
through the fault of the debtor, the
choice by the creditor shall fall upon the (4) When all the things are lost through a
price of any one of them, also with fortuitous event. —
indemnity for damages. ● obligation shall be extinguished if all
The same rules shall be applied to the items which are alternatively the
obligations to do or not to do in case object of the obligation are lost
one, some or all of the prestations through a fortuitous event
should become impossible. (1136a) ● Article 1174 shall apply

● Creditor has the right of choice

under article 1205 Rules applicable to personal obligations
● Eto ung rules before the creditor The above rules are also applicable to
made choice personal obligations. (par. 2.) The
● Si creditor is expressly granted by responsibility of the debtor for damages
the debtor ng right of choice depends upon whether the cause which has
● The loss occur before the creditor rendered the obligation impossible was due
had made his choice to his fault or not.
● Kapag nawala prior to the ● Whether the impossibility is
communication of the choice ni due to the debtor or not
creditor, these are the rules

ART. 1206. When only one prestation has

been agreed upon, but the obligor may
Rules in case of loss before creditor has render another in substitution, the
made choice. obligation is called facultative.
The loss or deterioration of the
(1) When a thing is lost through a thing intended as a substitute, through
fortuitous event. — the negligence of the obligor, does not
● Kung nawala ung isang items thru render him liable. But once the
furtutious event, mamimili ung substitution has been made, the obligor
creditor dun sa mga item na natira is liable for the loss of the substitute on
● And kung isa nalang yung natira and account of his delay, negligence or
lahat ay nawala thru furturious event fraud. (n)
edi yung isang un
Facultative obligation
(2) When a thing is lost through debtor’s ● is one where only one prestation has
fault. — been agreed upon but the obligor
● Mamimili pa rin si creditor sa mga may render another in substitution.
item na un ● Isang prestation pero merong
● Kung nawala ung napili edi payment substitute na pwedeng irender
of value wd damages ● Alin ba jan ung due demandable,
● Kung naman ung item na hindi ung substitute or ung orig na
nwala + damages pa rin obligation
● Need icommunicate ung kung ano
(3) When all the things are lost through ung substitute
debtor’s fault. —
● can demand the payment of the
price of any one of them with a right Effect of loss.
to indemnity for damages. (1) Before substitution. —
If the principal thing is lost
through a fortuitous event, the obligation
is extinguished; otherwise, the debtor is Alternative and facultative obligations
liable for damages. The loss of the thing distinguished.
intended as a substitute with or without the
fault of the debtor does not render him
liable. ALTERNATIVE FACULTATIVE
The reason is that the thing intended
as a substitute is not due. The effect of the Number Several Only one
loss is merely to extinguish the facultative Of prestations prestation is
character of the obligation. prestation are due but due although
● Due to furtuitious event: compliance the debtor
wd one is may substitute
OBLIGATION EXTINGUISHED
sufficient it
● Due to fault of debtor: LIABLE for
damages
● Item 2( substitute) - nawala, not
liable kasi hindi pa naman na
cocommunicate na ung item 2 ung
gusto, hangga’t hindi pa Right of The right of Right to
choice choice may substitution,Gi
nacocommunicate ang due pa rin ay
be given to ven only to
ung principal thing creditor or the the debtor
3rd person
(2) After substitution. —
If the principal thing is lost, the
debtor is not liable whatever may be the
cause of the loss, because it is no longer
due. If the substitute is lost, the liability of
the debtor depends upon whether or not the
Loss Loss of one Loss of the
loss is due through his fault. through or more thing due
● nacommunicate na na ung idedeliver fortuitous alternatives extinguished
is substitute so wala na taung pake event. does not the obligation
kay principal thing extinguish the
Once the substitution is made, the obligation
obligation is converted into a simple one
to deliver or perform the substituted
thing or prestation. The substitution
becomes effective from the time it has Loss (1)In the first, (1)the loss of
been communicated. (Art. 1201.) through the loss of the thing due
● May effect tlaga ung fault of one of the through his
pagcommunicate ng substitute kasi debtor. alternatives fault makes
through the him liable
kapag nasabi mo na ung substitute
fault of the
ung dedeliver then it becomes debtor does
simple obligation= magiging due is not render
substitute him liable
Ex.
Based on the preceding example: (2)where the (2)the loss of
(a) If item one is lost with or without choice the substitute
belongs to before the
the fault of debtor, debtor is not liable for its
the creditor, substitution
loss since his obligation is to deliver item the loss of through the
two. one fault of the
(b) If item two is lost through alternative debtor does
fortuitous event, the obligation of debtor is through the not render him
extinguished. fault of the liable (Kac
(c) If item two is lost through the fault debtor gives nga d due un)
rise to liability
of debtor, debtor is liable for damages.
Nullity of (1)the nullity (1) the nullity
prestation. of a of the
prestation prestation
does not agreed upon
invalidate the invalidates the
others obligation;

(2)the debtor (2)the debtor

or creditor is not bound
shall choose to choose the
from among substitute
the remainder -wala ng
-Hindi ibig substiture na
sabihin na pag-uusapan
ung item 1 kac to begin
invalid, invalid wd the
na lahat ng principal thing
items. The na cover ng
debtor/credito orig obli is
r shall choose void
-therefore, null
and void na
ung obligation
KINDS OF OBLIGATIONS SOLIDARY OBLIGATION
According to Demandability:
1. Pure and Conditional Obligations “All For One, One For All”
2. Obligations With A Period
According to Plurality of Object: - A solidary obligation is one where
3. Alternative and Facultative each one of the debtors is bound to
Obligations render, and/or each one of the
According to Plurality of Subject: creditors has a right to demand
4. Joint and Solidary Obligations entire compliance with the
Classification according to Performance: prestation. (Art. 1207.)
5. Divisible and Indivisible Obligations - Debtor is liable for the whole
6. Obligations with a Penal Clause obligation, and each creditor is
entitled to demand payment on the
whole obligation.
Joint And Solidary Obligations - Each creditor may demand
fulfillment of a whole obligation
JOINT OBLIGATION - Kung gaano karami ang debts
ganun din karami yung credits.
“To Each His Own”
- kung ano lang yung share or
part or portion lang na nasa ART. 1207. The concurrence of two or
kanya yun lang yung right or more creditors or of two or more debtors
obligation niya. in one and the same obligation does not
imply that each one of the former has a
- A joint obligation is one where the right to demand, or that each one of the
whole obligation is to be paid or latter is bound to render, entire
fulfilled proportionately by the compliance with the prestations. There is
different debtors and/or is to be a solidary liability only when the
demanded proportionately by the obligation expressly so states, or when
different creditors. (Art. 1208.) the law or the nature of the obligation
- Debtors are liable only for a requires solidarity. (1137a)
proportionate part of the liability, and - refers to joint and solidary obligation
each creditor is entitled only to a ART. 1208. If from the law, or the nature
proportionate part of the credit. or the wording of the obligations to
- Each debtor answers only a part of which the preceding article refers the
the whole liability, and each obligee contrary does not appear, the credit or
belongs only part of the correlative debt shall be presumed to be divided
right. into as many equal shares as there are
creditors or debtors, the credits or debts
being considered distinct from one
another, subject to the Rules of Court
governing the multiplicity of suits.
(1138a)
- Presumption that obligation is joint.
 Rules of Court governing the multiplicity
“mancomunadamente” solidaria”
of suits.
The presumption in Article 1208 is made proportionate(ly) individully and
“subject to the Rules of Court governing collectively
the multiplicity of suits” otherwise,
pro-rata, jointly; in solidum
situations may arise where there are as
conjoint
many suits as there are debtors and
creditors. (see Rules of Court, Rule 3, Sec. “WE promise to pay” “I promise to pay”
6.)
- The rules on multiplicity of suits seek (two or more promisors (two or more promisors
to prevent the filing two or more suits or signatures) or signatures)
or complaints for a single cause of
action or the same violation of the
legal right of the plaintiff. Illustration:
- Ordinarily, once the creditor filed an Joint obligations examples:
action against one debtor on each a) A and B are joint debtors of C to
share of obligations, but in view of the amount of P1M. How much
this phrase, to obtain a just, speedy, can C demand?
and inexpensive determination of
every action or proceedings it would C can demand:
be much better to sue all the
necessary parties at the same time. A: P 500,000 B: P 500,000

Kinds of obligation according b) A and b are joint debtors of W, X,

to the number of parties. Y and Z who are joint creditors to
(According to plurality of subjects) the amount of P 1M. How much
They are: can Y demand from the debtors?
(1) Single or Individual obligation. — one Whereby the four creditors will divide the
where there is only one obligor and one P1M into four because (refer to Art.1208)
obligee; and Creditor credits: entitled for 250k
(2) Collective obligation. — one where each
there are two or more debtors and/or two or W: P 250,000 Y: P 250,000
more creditors. It may be joint or solidary. X: P 250,000 Z: P 250,000
● Joint - to each his own Y can demand 125k each (joint
● Solidary - one for all, all for one debtors sila):
A: P 125,000 B: P 125,000
Synonymous Terms: Because the creditor is entitled only to a
proportionate part of the credit. (Art 1208)
JOINT OBLIGATION SOLIDARY Presumption: the interest of creditors is
OBLIGATION
always equal unless stated otherwise.
“mancum” jointly and severally
“mancomunada”

“mancomunada simple” “mancomunada

Solidary Obligations examples:
c) A and B are solidary debtors of C b) A and B are solidary debtors of
to the amount of P1M. How much X and Y, solidary creditors in the
can C demand? amount of P10,000. How much
C can demand: can X demand?
- Since it is solidary, “All For - X can demand P10,000
One, One For All.” C can from A or P10,000 from B
demand P1M pesos on either
of the two debtors.
Debtor: right to ask for reimbursement
from the other debtor
Instances where the obligation may be
In Solidary obligations, there are two joint on the side of the debtors and
principles involved: solidary on the part of the creditors or
1. Mutual Agency vice versa.
2. Mutual Guarantee
Because it involves trust from the a) A and B are joint debtors of X and
co-debtor and co-creditor. Y, solidary creditors, in the
d) A and B are solidary debtors of amount of P10,000. How much
W, X, Y and Z who are solidary can X demand?
creditors to the amount of P1M. - Ang kaya i-demand ni X is
How much can Y demand from P10,000, buo ksi solidary
the debtors? sila.
Y can demand: - Since X is a solidary creditor,
- Since it is solidary, “All For presumably, he can demand
One, One For All.” Y can the amount of P10,000
demand P1M pesos on either against A and B, the debtors
of the two debtors. A and B should divide the
Any creditor can demand for the whole P10,000 into two because
obligation sa kahit kaninong debtor din. they are joint debtors so they
are obliged to share only
their part of the debt.
Instances where the parties are both - The answer is X can
joint or solidary in an obligation: demand P5,000 from A and
P5,000 from B.
a) A and B are joint debtors of X
and Y, joint creditors in the b) A and B are solidary debtors of X
amount of P100,000. How much and Y, joint creditors, in the
can X demand? amount of P10,000. How much
- A and B are joint debtors can X recover?
of X and Y, joint creditors - Since X is only a joint
in the amount of P 100,000. creditor, he can only
A: P 25,000 X: P 25,000 recover his shares which is
B: P 25,000 Y: P 25,000 P5,000.
 - Since the debtors are the
-DISTINCT from each
solidary, the debtors are other: Kaya kung may
solidary liable, meaning, X insolvency nung isang
can recover the P5,000 of debtor hindi apektado ang
his share alone other liabilities ng other
- The answer is X can debtors.
recover P 5,000 from A or 3. Demand by the creditor on one
joint debtor puts him in default, but
P5,000 from B. not the others since the debts are
distinct.
4. Prescription does not run against
the debtor whom the creditor has
demanded.
Rules to Remember - Kase nagdemand kaya
matitigil ang prescriptive
General Rule:
period pero yung
The obligation is presumed to be joint.
prescriptive period
Art. 1207.
affecting the other debtors
na wala pa naman demand
Joint Obligation Is The Presumption In The
ng other creditors, tuloy
Absence Of Express Stipulation Of Solidarity
tuloy lang siya.
5. Defenses of one debtor are not
Except: stipulation, law, nature necessarily available to the others.
- Kase kanya-kanya.
1. When the obligation so provides.
- refers to stipulation of the Illustration:
parties.
2. When the law requires solidarity.
A, B, and C are joint debtors of X in the
3. When the nature of the obligation
requires solidarity. amount of P 15,000. If B is insolvent, how
much would A pay X?
Solidarity Is The Exception because it - Kung joint and obligation, walang
is burdensome. The reason is that effect yung insolvency ng isa sa mga
solidary obligations are very debtors sa liability ng other debtors.
burdensome for they create unusual Answer: P 5,000
rights and liabilities.

Solidarity not presumed.

The presumption, where there are
Rules to Remember: two or more persons in the same obligation,
is that it is joint. The reason is that solidary
Consequences of Joint Obligation obligations are very burdensome for they
Art.1208 create unusual rights and liabilities.
Solidarity between debtors increases
1. Vitiated Consent on the part of
one debtor do not affect the other. their responsibility while solidarity
2. Insolvency of one debtor does not between creditors increases the right of
make others responsible for his each creditor. The law tends to favor the
share.
debtors in presuming that they are other debtors or creditors.” (8
bound jointly and not solidarily. Manresa 182; Agoncillo and Marino
(1) Where a person authorizes another vs. Javier, 38 Phil. 424 [1918].)
to mortgage and borrow money for
and in his name, the liability of the Passive solidarity and solidary
two to the creditor is only joint, not guaranty
solidary, pursuant to Articles 1207 compared.
and 1208. (Phil. National Bank vs. Article 2047, paragraph 2 (Title XV. —
Sta. Maria, 29 SCRA 30 [1969].) Guaranty.) says:
(2) When it is not provided in a “If a person binds himself solidarily with the
judgment that the defendants are principal debtor, the provisions of Section 4,
liable to pay jointly and severally a Chapter 3, Title 1 of this Book shall be
certain sum of money, none of them observed. In such case, the contract is
may be compelled to satisfy in full called a suretyship.”
said judgment. It is of no
consequence that the obligation (1) Similarities. — They are:
assumed by them under their written (a) In passive solidarity although
contract was solidary in character. some sort of mutual agency may be
The final judgment has the effect of seen as in active solidarity,
superseding the action brought for guaranty is a characteristic which
enforcement of said contract. (Ang predominates over that of mere
Lin Chi vs. Castelo, 63 Phil. 263 agency. By virtue of this, the
[1936]; Oriental Commercial Co., solidary debtor like the surety,
Inc. vs. Abeto and Mabanag, 60 Phil. answers for a debt which is not
723 [1934]; De Leon vs. properly his own; and
Nepomuceno, 37 Phil. 180 [1917]; (b) Like the surety also, after paying, he
Ortiz vs. Kayanan, 92 SCRA 146 may demand reimbursement from
[1979]; Industrial Management the debtor personally bound in
International Development Corp. vs. the obligation paid.
National Labor Relations (2) Distinctions. — While a guarantor may
Commission, 331 SCRA 640 bind himself solidarily with the principal
[2000].) debtor, the liability of a guarantor is different
(3) One of the effects of the rule from that of a solidary debtor. (Inciong, Jr.
established by the Code that the vs. Court of Appeals, 257 SCRA [1996].)
debt is to be presumed as “divided The distinctions are as follows:
into as many equal shares . . . as (a) The solidary debtor, unlike the
there are debtors” (Art. 1208.) is that surety, is liable, not only for the
“the interruption of prescription by debt of another but also for one
the claim of a creditor addressed to properly his own. (8 Manresa 219.)
a single debtor or by an A (guarantor or) surety does not
acknowledgment made by one of the incur liability unless the principal
debtors in favor of one or more of debtor is held liable. It is in this
the creditors is not to be understood sense that a surety, although
as prejudicial to or in favor of the solidarily liable with the principal
 debtor, is different from the debtor. It ART. 1209. If the division is impossible,
does not mean that the surety the right of the creditors may be
cannot be held liable to the same prejudiced only by their collective acts,
extent as the principal debtor. The and the debt can be enforced only by
nature and extent of the liabilities of proceeding against all the debtors. If one
a surety is determined by the of the latter should be insolvent, the
contract of suretyship (Pacific others shall not be liable for his share.
Banking Corp. vs. Intermediate (1139)
Appellate Court, 203 SCRA 496 - This article speaks of joint and
[1991].); indivisible obligations
(b) In passive solidarity, the debtor Obligation is joint
who made payment may claim - Because the parties are merely or
reimbursement from his proportionately liable.
co-debtors for the share which - refers to the tie between the
corresponds to each (Art. 1217, parties.
par. 2.), while in a suretyship, the Obligation is indivisible
surety who paid the obligation is - Because the object or subject matter
entitled to be indemnified by the is not physically indivisible into
principal debtor with the right to different parts. (see Art. 1225, par.1.)
be subrogated by virtue of such - refers to the object or subject
payment to all the rights which matter of the obligation.
the creditor had against the ● Joint Indivisible
debtor (Arts. 2066, 2067.); and ● Solidary Divisible
(c) In passive solidarity, an extension
granted by the creditor to one of
the solidary debtors without the
consent of the other solidary Example of Joint Indivisible Obligation
debtors would not release the (1) A, B, and C are jointly liable to give D
latter from their obligations. They a car valued at P240,000.00. On the date
are still liable for the whole obligation of delivery, A and B are willing to deliver
less the share of the debtor granted but C is not.
the extension. Upon arrival of the In this case, D has no cause of
extended period, the creditor can action against C for the delivery of the car
demand the remaining balance from because, as a joint-debtor, C is liable only
any of the solidary creditors but in for a proportionate part of the obligation
suretyship, an extension granted which is P80,000.00. Since the object (car)
to the principal debtor without the is indivisible, the debt can only be enforced
consent of the surety would have by proceeding against all the debtors for
the effect of extinguishing the compliance is not possible unless they act
suretyship. (see Art. 2079.) together. - it will not be complied with
unless all the debtors comply with their
respective obligations since the car is
indivisible. In this case the liability is
converted into one for damages.
 - prestation: is indivisible (is
Characteristics of JOINT INDIVISIBLE
OBLIGATIONS not susceptible of partial
performance.)
1. The obligation is joint but since the - but the liability: are joint
object is indivisible, the creditor -> we have, JOINT INDIVISIBLE
must proceed against ALL the OBLIGATION
joint debtors, for compliance is
possible only if all the joint debtors
would act TOGETHER. ● Pogi and Ganda obliged themselves
2. Demand must therefore be made solidarily to give the car to Beauty
on ALL the joint debtors. - obligation: indivisible kase
- a demand made by one nga to give a car (object
joint creditors is not a yung titignan)
demand by the others. - relationship: of the two is
3. If there be joint creditors, delivery
solidary
must be made to all and not
merely to ONE, unless that one be -> SOLIDARY INDIVISIBLE
specifically authorized by the OBLIGATION
others. In simple way:
- Joint iba iba yung shares, We have a solidary obligation since the
kaya kapag nag deliver ka subject matter is indivisible, and solidary
dapat sa bawat isa, hindi obligation does not necessarily mean that
pwedeng sa isa lang kasi
the obligation is also indivisible.
joint creditors sila.
UNLESS; Example:
4. Joint creditor is allowed to ● Pogi and Ganda promised in
renounce his proportionate credit. solidum to pay Beauty P10,000.
- Pwede niyang i-renounced - Divisible: object is to pay
or i-waive yung credit niya. P10,000 (susceptible of
partial performance)
-> SOLIDARY DIVISIBLE
ART. 1210. The indivisibility of an OBLIGATION
obligation does not necessarily give rise ● Pogi and Ganda are jointly liable to
to solidarity. Nor does solidarity of itself pay Beauty P10,000
imply indivisibility. (n) - Money is divisible
- Talks about indivisibility and is being -> JOINT DIVISIBLE OBLIGATION
distinguished to solidarity.
Kinds of solidarity. Art. 1207-1208
The indivisibility of an obligation does (1) According to the parties bound:
not itself imply solidarity and not a) Passive solidarity
because an object is indivisible it is - or solidarity on the part of the
already solidary. (same rule pag baligtad) debtors, where anyone of them
can be made liable for the
fulfillment of the entire
Example:
obligation. Its characteristics are
● Pogi and Ganda are jointly liable to plurality of debtors and unity of
deliver to Beauty a particular car prestation. It is in the nature of a
mutual guaranty.
 injury caused to their employees while in
b) Active solidarity the performance of their assigned duty,
- or solidarity on the part of the was held solidary although the law is
creditors, where anyone of them silent on this point because the law was
can demand the fulfillment of enacted to give full protection to
the entire obligation. Its essential employees, and if the responsibility were
feature is that of mutual only joint, the purpose of the law might
representation among the solidary not be attained should one of the
creditors with powers to exercise employers happen to be insolvent.
the rights of others in the same (Liwanag vs. Workmen’s Compensation
manner as their rights. (see 8 Commission, 105 Phil. 741 [1959].)
Manresa 205-206.) Similarly, where the vehicle which
figured in an accident was operated
under the so-called “kabit system,” the
c) Mixed solidarity award of exemplary damages, among
- or solidarity on the part of the others, payable jointly and severally by
debtors and creditors, where each the operator and the grantee of the
one of the debtors is liable to certificate of public convenience was held
render, and each one of the justified because the pernicious “kabit
creditors has a right to demand, system” is a violation of law. (Canares
entire compliance with the vs. Aras, CA-G.R. No. 2488-R, March 4,
obligation. 1961.)
(2) According to source:
a) Conventional solidarity or where
solidarity is agreed upon by the Rules to Remember
parties. (Art. 1306.) If nothing is
mentioned in the contract relating Some instances where the law requires
to solidarity, the obligation is only solidarity:
joint.
b) Legal solidarity or where 1. Liability of principals,
solidarity is imposed by the law. accomplices, and accessories
in a felony. (Art.11, RPC)
c) Real solidarity - where solidarity Ex:
is imposed by the nature of the I thought of having heisting a
obligation. Bank and asked my two friends to
- The law does not expressly join me. I was the mastermind of
indicate the cases where the the plan, that is why I am the
liability is solidary because of the principal, while the other two will
nature of the obligation. The be the accomplices or the other
opinion is offered that the cases one is the look out that results in
contemplated are those in which him to be the accessory in a
the intent or purpose of the law is felony. The liability if we are
to have the obligation satisfied in proven to have heisted the bank is
full but the law itself does not solidarity.
expressly require solidarity.
Thus, the nature of the obligation of 2. Obligations arising from
employers under the former Workmen’s tort/quasi-delict (Art.2194)
Compensation Law (Sec. 2, Rep. Act No. Ex: An employee made a
4119; see Arts. 1711, 1712.), to pay quasi-delict in the ordinary course
indemnity or compensation or death or of his work, so sagot siya ng
 without right of choice on the part of
employer. The liability is solidary
C.
3. Bailees in commodatum
(Art.1945) Example of active solidarity:
Ex: nagpahiram ka ng gamit sa (1) A is liable for P10,000.00 in favor
dalawang tao at hindi nila of B and C who are solidary
inalagaan yun and nasira. Ang creditors.
liability nila is solidary and you
don’t need to know kung sino pa
ang nakasira sa gamit mo. A may pay either B or C. (Art. 1214.)
So long as the entire debt is not paid, B and
4. Payees when there has been a C can demand payment from A. (Art. 1207.)
payment of what is not due. If B (or C) received payment, he is liable to
(Art.2157) C (or B) for the latter’s share in the credit
according to their agreement.
Example of passive solidarity: The liability of A cannot exceed
(1) A and B are solidary debtors of C P10,000.00 which is the extent of his
in the amount of P10,000.00. liability.
(2) The obligation of A is to pay
There is here only one (1) debt, the P10,000.00 to either B or C.
debt of A and B in the amount of In this case, either B or C may
P10,000.00; and one (1) credit, the credit of demand payment from A unless it clearly
C in the amount of P10,000.00 against B appears that the intention of the parties is to
and C. (A distinction must be made give to A the right to choose whom to pay.
between the debt itself and the persons
against whom the debt can be collected.)
C may demand payment from either Example of mixed solidarity:
A or B, or both of them simultaneously, the A and B are solidarily liable to C and D,
whole obligation. (Art. 1216.) Payment by A solidary creditors, in the amount of
(or B) extinguishes the obligation but A P10,000.00.
(or B) may claim from B (or A) the share A (or B) can pay either C or D. C (or
which corresponds to him depending D) can demand from either A or B. The
upon the agreement between them. (Art. payment by A (or B) of P10,000.00 to C (or
1217.) D) shall extinguish the obligation. A (or B)
In any case, C cannot collect more can ask reimbursement from B (or A) in the
than P10,000.00 which is the extent of his amount of P5,000.00 or such amount
credit. agreed upon between them. C (or D), in
(2) Under their contract, either A or B turn, is liable to give to D (or C), the latter’s
will pay C P10,000.00. Here, the share of P5,000.00 or the amount
debtors are named disjunctively stipulated.
or in the alternative. Their liability is Remember that the agreement
solidary and C can demand payment between A and B, as to the extent of the
from either of them unless it clearly share of each in the debt, or C and D, as to
appears that the intention of the the extent of the share of each in the credit,
parties is that either A or B may pay has nothing to do with the agreement
between A and B, on the one hand, and C
(2) Non-uniform or varied. — when
and D, on the other.
the parties are not subject to the
same stipulations or clauses. (see 4
Sanchez Roman 50.)
INDIVISIBILITY SOLIDARITY Illustration:
A, B and C bound themselves
refers to the refers to the jointly and severally to give X the
prestation juridical or legal tie amount of P15,000 subject to the
that binds the following conditions:
parties a) A will pay if x will pass his
only the debtor all of the debtors midterm examination in
guilty of breach of are liable for the obligations and contracts
obligation is liable breach of the b) B will pay on 20 April 2022
for damages, obligation c) C will pay on 15 April 2022
thereby terminating committed by a
the agency co-debtor If X demands payment on 15 April
(obligation) (obligation) 2022, how much can X demand
from A?
can exist although there must be at *Dapat bang magbayad na si A?
there is only one least two debtors or
*May due nang dapat magbayad? Yes
debtor and one two creditors
creditor si C.
- So, kahit hindi pa fulfiled yung
the others are not the others are condition na in-impose ni A,
liable in case of proportionately obligado pa rin magbayad ni A
insolvency of one liable. (obligation) doon sa utang or share ni C sa
debtor (obligation) obligation kasi nag due na.

Magkano?
ART. 1211. Solidarity may exist - P5,000 only because yung nag
although the creditors and the due pa lang and demandable
debtors may not be bound in the is yung utang ni C.
same manner and by the same
periods and conditions. (1140) NOTE: look for the liability that is
- pwede mangyari. due and demandable

Kinds of solidary obligation

according to the legal tie.
ART. 1212. Each one of the solidary
They are: creditors may do whatever may be
useful to the others, but not anything
(1) Uniform. — when the parties are which may be prejudicial to the latter.
bound by the same stipulations (1141a) - mutual agency
or clauses; or ● If a solidary creditor performs a
- Both parties have the same prejudicial act and as a result the
obligation is extinguished, he
terms and conditions ng
shall be liable for damages.
kanilang obligation or rights.
 (mutual agency, to avoid unjust General Rule:
enrichment) Solidary creditor cannot assign.
Exception:
Act of solidary creditor useful/ When other creditor’s consent.
prejudicial to others. - because solidary obligations implies
A solidary creditor may do any act mutual agency and mutual guarantee
beneficial or useful to the others but Example:
he cannot perform any act prejudicial
to them. If he performs such act and as a Pogi is obliged to give (P1M) solidary
result the obligation is extinguished, he creditors Bella, Impyang and Popay on
shall be responsible to the others for Dec 25, 2022.
damages. As far as the debtor or debtors If on Dec 20, 2022 Bella assigns her
are concerned, the act shall be valid right to Beauty, beauty cannot collect the
and binding. The rule is based on the obligations on the due date because the
theory of mutual agency among the assignment is invalid. (kase no
solidary creditors. A joint creditor cannot consents sa co-creditors) However, Bella
act in representation of the others. may assign her right to Popay and that
is valid, because Popay is her co-creditor.
Example:
● Demand - pwedeng mag demand Supposing after the assignment of
yung isang solidary creditors on Bella to Beauty, si Pogi binayaran din
behalf of his other creditors naman si Beauty, so, is the obligation
because useful and beneficial extinguished?
naman yun to his or her other - NO, because the assignment in
creditors. But he cannot condone the first place is VOID.
or i-waive yung rights niya sa What will happen to the payment made
credit and isasama niya pa yung by Pogi to beauty?
rights ng mga kasama niyang - Pogi may recover the payment to
creditor kasi that is prejudicial sa Beauty under what rule? Solutio
kanyang mga kasamahan. Indebiti or unjust enrichment.
- so, kapag nag waive siya ng Art.1160
rights the obligation will be
extinguished but kung sino man
ang nagwaive he/she will ART. 1214. The debtor may pay any
reimburse sa mga kasamahan one of the solidary creditors; but if
niya na hindi nag waive ng credit. any demand, judicial or
(syempre dapat makatanggap ng extrajudicial, has been made by one
shares yung creditors)
of them, payment should be made
ART. 1213. A solidary creditor cannot to him. (1142a)
assign his rights without the consent - Answer the questions, to
of the others. (n) whom must the debtor
- You cannot assign a right if there pay? kase naka solidary
is no consent or knowledge of creditor sila.
your co-creditor. If you have
assigned without the consent or
knowledge of your co-creditors
the assignment will be considered
as VOID.
 Rules to Remember: demand. If A insists, the
whole obligation will not be
SOLIDARY OBLIGATION extinguished but the share
of Z will be extinguished.
General Rule:
The debtor can pay any of the solidary
creditor.

Exception: SOLIDARY OBLIGATION

Payment must be made to the solidary
creditor who made a demand. (Art.1214) ART. 1215. Novation, compensation,
confusion or remission of the debt,
Article 1214 is applicable not only in made by any of the solidary creditors
cases of active solidarity but also where or with any of the solidary debtors,
the solidarity is mixed although the shall extinguish the obligation, without
singular “debtor” is employed. In case of prejudice to the provisions of Article
mixed solidarity, the debtor upon whom 1219.
no demand has been made, may pay any The creditor who may have executed
one of the solidary creditors. any of these acts, as well as he who
collects the debt, shall be liable to the
others for the share in the obligation
● Payment made by one of the corresponding to them. (1143)
solidary debtors extinguishes the
obligation. General Rule: Novation, compensation,
confusion or remission of the debt, made
● If two or more solidary debtors by any of the solidary creditors or with any
offer to pay, the creditor may of the solidary debtors, shall extinguish
choose which offer to accept. the obligation. (Art. 1215)
- Pag may isang gumawa ang effect
ie-extinguish ang obligation.
Illustration: (damay-damay)
1. A and b are solidary debtors of
However: The remission made by the
X, Y and Z, solidary creditors.
creditor of the share which affects one of
May A pay X the whole the solidary debtors does not release the
obligation? latter from his responsibility towards the
co-debtors, in case the debt had been
- Yes, A can pay X the whole totally paid by anyone of them before the
obligation because the other remission was affected. (Art. 1219)
creditors did not demand so A can - If the share of the solidary creditor
was remitted by the creditor after
pay any of the solidary creditor.
another solidary debtor had paid
the whole obligation, the
2. A and b are solidary debtors of remission is useless. The debtor
X, Y and Z, solidary creditors. Z will still pay because the creditor
makes a judicial demand upon waived after the debtor paid his
A. To whom should A pay? debts. So, useless na rin, what’s
- To Z only because he is there to waive pa, eh bayad na rin
naman? So, may responsibility pa
the one who made the rin yung solidary debtor na
 pinatawad ng creditor towards the of Pogi - so, nagkaroon ng
debtor who totally paid before the modification as to the
remission was affected. Naunang object of the obligation.
binayaran na bago pa pinatawad Question:
ang utang, so may pananagutan 1. Supposed it was only Pogi and
siya dun siya kasama niya na Popay who agreed on the
nagbayad. novation. Is Ganda bound to
- Sa mata ng solidary debtors, comply with the novation
anyone pwede silang singilin. (debtor)? - NO, because she did
- Sa mata ng mga creditors, parang not consent to the novation.
joint sila kase may kanya-kanya 2. What is the right of Impyang
silang share. (creditor)? - the right to proceed
against Popay, because accdg. to
The creditor who made the novation, Art 1215, he who collects the debt,
compensation, confusion or remission of, shall be liable to the others for the
as well as he who collects the debt, shall share in the obligation
be liable to the others for the share in the corresponding to them.
obligation corresponding to them. (Art.
1215) COMPENSATION - is when two persons
- Creditors are liable to the shares in their own right are debtor and creditor
of co-creditors. of each other.
The remission of the whole obligation As simple as when A owes P1,000 and
obtained by one of the solidary debtors, then B also owes A P1,000.
does not entitle him to reimbursement
from his co-debtors. (Art. 1220) Can be TOTAL or PARTIAL:

● Total - obligation is extinguished.

Example: Pogi and Ganda solidary
debtors of Popay and Impyang, in an
amount of P400,000. But, Popay in
another transaction owes Pogi P400,000.
- Since solidary debtors and
NOVATION - is the modification of an
creditors naman sila, so si Pogi
obligation by;
and Popay are now in their own
1. Changing its object or principal
right debtor and creditor of each
obligation;
other. So, automatic extinguished
2. Substituting the person of the
yung obligation in virtue of
debtor or subrogating a third
compensation.
person in the rights of the creditor.
- Pero syempre si Ganda, hindi
Example:
naman pwedeng ganun na lang
Pogi and Ganda are solidarily liable to
din yon. Ganda was benefited
Popay and Impyang, solidary creditors
because yung credit ni Pogi yung
for the payment of 1M.
na pambayad sa kanilang
❖ Later, the parties agreed that
obligation. So, si Ganda ngayon is
instead of paying 1M, they will just
dapat magbayad ng P200,000 to
deliver Pogi’s car.
Pogi and sa creditors, the right of
- The obligation to pay 1M
Impyang should not be prejudiced,
was extinguished, but it
that’s why she can recover her
created a new obligation,
shared amount of P200,000 from
which is to deliver the car
Popay.
Note: here, Pogi and Ganda became 3. Otherwise, the act of Juliana will
debtors and creditors of each other. be prejudicial as stated in Art.
1219. Solidary creditors cannot
● Partial - here exists the partial make prejudicial acts to the
compensation. co-creditors.
Example: yung utang pala ni Popay kay 4. Nakinabang ba si Joaquin? Oo
Pogi ay hindi P400,000 but P150,000 naman. But, Joaquin will not be
lang. So here exists the partial reimbursed to Chichay because
compensation. Ideduct yung P150,000 the remission of the whole
and yung remaining P250,000 ay obligation obtained by one of the
magsu-subsists. solidary debtors, does not entitle
him to reimbursement from his
CONFUSION or MERGER - yung co-debtors.
character ng debtor and creditor is Joaquin and Chichay, and Didith are
merged into one and the same person. solidary debtors of Juliana and
Example: Betchay, solidary creditors to the
Pogi and Ganda are solidary debtors of amount of P6M. Juliana tells Chichay
Beauty for an amount of P10,000 that she is waiving Chichay’s share in
through a promissory note. Later, the obligation.
Beauty, endorsed the promissory note - pinatawad lang is yung share ni
to Bella, Bella to Impyang, Impyang to Chichay so may pananagutan pa
Popay, and Popay to Pogi again. rin si Chichay sa share ng mga
- Si Pogi is naging debtor and kasama niya.
creditor at the same time, in here Juliana now demands payment. How
the obligation is also extinguished. much will Chichay pay?
- Chichay will pay P4M only.
REMISSION - creditor condonation or What is the right of Chichay, if any?
waiver of the obligations of the debtor. - She has the right to ask for
- Yung winaive ni creditor yung reimbursement to Joaquin and
credit in favor of the debtor, so Didith of P4M because it is a
wala nang babayaran ang debtor solidary liability.
or extinguished na yung
obligation.
Example: SOLIDARY OBLIGATION
Joaquin and Chichay are solidary
debtors if Juliana and Betchay, ART. 1216. The creditor may
solidary creditors to the amount of proceed against any one of the
P4M. Juliana tells Chichay that she is
solidary debtors or some or all of
waiving the whole obligation.
them simultaneously. The demand
What are the effects of Juliana’s made against one of them shall not
remission of the whole debt in favor of be an obstacle to those which may
Chichay? subsequently be directed against
1. The remission made by Juliana the others, so long as the debt has
completely extinguishes the not been fully collected. (1144a)
obligation of Joaquin and Chichay.
2. Juliana will be liable for the share Against whom the creditor may
of credit corresponding to her proceed?
co-creditor. So Juliana is liable to
pay for P2M to Betchay. ● Against any, some, or all of the
 solidary debtors - cannot, because of his insolvency,
simultaneously. reimburse his share to the debtor paying
- It reiterates the rule that in the obligation, such share shall be
solidary obligation, in borne by all his co-debtors, in
passive solidarity, anyone, proportion to the debt of each.
or some, or all the solidary - Sasaluhin pa rin ng mga kasama
debtors simultaneously niya kse nga solidary yung
may be made to pay the obligation.
debt so long as the debt
has not been fully
collected. Illustration:
- obviously, because Casper, Kim and Rupert are solidary
solidary nga e. debtors of Joseph and Joshua in the
● There is no waiver against those
amount of P3M. Joseph demands
not yet sued.
Illustration: payment from Casper.
● Pogi and Ganda, solidary
debtors of Beauty to an amount How much should Casper pay Joseph?
of 1M. - P3M.
- Either Pogi or Ganda can pay the
whole amount of 1M to Beauty. What is the right of Casper?
- Beauty can also collect P500,000
- To ask for reimbursement to his
each to Pogi and Ganda.
● Joaquin and Chichay are co-debtors.
solidary debtors of Chito and
Jaime in the amount of P1M. If Kim is insolvent, what is the
Chito demanded Joaquin and resource of Casper?
was able to collect P600,000 - Additional P500,000 to Rupert
only. May Jaime still sue or kase sila ang sasalo sa insolvency
demand Chichay for the balance
ni Kim.
of P400,000?
- YES. the debt has not yet entirely
satisfied.

He who made a payment may claim ART. 1222. A solidary debtor may, in
from his co-debtors only the share which actions filed by the creditor, avail
corresponds to each, with interest for the himself of all defenses which are
payment already made derived from the nature of the
obligation and of those which are
If the payment is made before the personal to him, or pertain to his own
debt is due, no interest for the intervening share.
period may be demanded. (1217, 2nd With respect to those which
par.) personally belong to the others, he
- Kung nagbayad ka tapos due na may avail himself thereof only as
and hindi pa nag reimburse yung regards that part of the debt for which
kasama mo , may karapatan ka the latter are responsible. (1148a)
maningil ng interest sa kanya.
Illustration:
1. A, B, and C are solidary debtors
When one of the solidary debtors of X in the amount of P15,000.
 However, A was incapacitated to - As a general rule.
gie consent as ge was a minor.
X now demands payment from “The following actions must be
B. How much is the liability of commenced within six (6) years:
B? (1) Upon an oral contract;
- Hindi masisingil yung debt (2) Upon a quasi-contract.“ (Art. 1145.)
ng minor. Hindi
pananagutan ang isang “The following actions must be
amount kung siya lang instituted within four (4) years:
mismo ang sisingilin. (1) Upon an injury to the rights of the
- Answer P10,000 plaintiff;
2. Using the same facts, if X (2) Upon a quasi-delict.’’ (Art. 1146.)
demands payment from A, how
much is the liability of A? The statute of limitations, however, may
- P0 be superseded or modified by a contract
between the parties. (Macias & Co. vs.
ART. 1218. Payment by a solidary China Fire Insurance Co.,46 Phil. 345
debtor shall not entitle him to [1924].)
reimbursement from his co-debtors if
such payment is made after the
obligation has prescribed or become
illegal. (n)
- Bakit ka mag magbabayad kung
illegal or prescribed na?

Prescriptive Periods of Actions

“By prescription, one acquires

ownership and other rights through the
lapse of time in the manner and under the
conditions laid down by law.
In the same way, rights and actions are
lost by prescription.” (Art. 1106.)

“The following actions must be brought

within ten (10) years from the time the
right of action accrues:
(1) Upon a written contract;
(2) Upon an obligation created by law;
(3) Upon a judgment.“ (Art. 1144)
 LAW DEFINITION GENERAL RULE REQUISITES REMEDIES EXCEPTIONS

• an act or • Juridical necessity 1. passive subject Juridical necessity

Art 1156 - AN OBLIGATION performance to give, to do or (debtor/obligor) – • creditor has legal
which the law will not to do person bound to fulfil remedies
enforce • tying or binding the obligation or he • the courts may compel
who has the duty. the person who’s
2. active subject obliged to deliver
(creditor/obligee) – • debtor will comply
person entitled to whether he likes it or
demand the fulfilment not and may be liable
of the obligation or he for damages (sanctions,
who has the right. punishments)
3. object or prestation
(subject matter) –
conduct to be observed
by the debtor (giving,
doing or not doing)
4. juridical or legal tie
(efficient cause) – ties
or binds the parties to
the obligation.
aka vinculum juris
CIVIL OBLIGATIONS • Obligations which • If the debtor refuse or fail
give to the to comply with the
creditor or obligee obligation, the creditor
a right under the can seek legal remedies.
law to enforce • Can be enforced in courts
their performance
in the courts of
justice. ex: filing a
case in the court.
NATURAL OBLIGATIONS • • the essence is • cannot enforced in
voluntariness, court and cannot
once the debtor demand compliance.
volunteered to • after 10 years the
perform the creditor can no
obligation the longer file a case in
debtor can no the court.
longer recover
what he has
delivered

ex: quasi-contracts: solutio

indebiti & gestio
FORM OF OBLIGATIONS • Law does not • Contracts
require any form -needed written
for obligations documents
arising from
contracts for their
validity or binding
force
• can be: oral, partly
in writing or partly
in oral
RIGHT • Power to demand • Right to demand
from another any
prestation.
LEGAL WRONG • cause of action Elements of a legal wrong or • creditor has a legal
• act or omission injury: right in his favor
(hindi ginawa) of 1. legal right in favor of a • debtor correlative
a person in person (plaintiff or legal obligation on his
violation of the creditor) - right part to respect the
legal right of 2. correlative legal creditor’s right or not
another obligation on the part of to violate it.
 the debtor or defendant
not to violate the right. -
correlative obligation of
debtor
3. an act or omission in
violation of the right
which resulted into an
injury or damage. -
violation
REAL OBLIGATION • obligation to give • not to violate • liable if failed to
or to deliver. comply

PERSONAL OBLIGATION • obligation to do • Liable if failed to

or not to do • not to violate. comply
• act to be done or
not to be done
POSITIVE PERSONAL
OBLIGATION
• obligation to do
or to render
some service
NEGATIVE PERSONAL
OBLIGATION
• obligation no to
do

Art. 1157 (sources of • obligations • Legal obligations

obligations) - imposed by law imposed by law
LAW itself
CONTRACTS • obligations arise • there’s a pre-
from the existing
 stipulation of the contractual
parties. relation.

QUASI-CONTRACTS • arises from • No one shall be • to return what has

lawful, voluntarily unjustly enriched been received by
and unilateral at the expense of mistake
acts. another
• provision against • the obligation to
unjust return the goods
enrichment. mistakenly
delivered.
CRIMES OR ACTS OR • arise from civil • every person is • civil liability: for
OMISSIONS PUNISHED BY liability which is criminally liable is damages (depends
LAW: CRIMES OR DELICTS the consequence civilly liable on the gravity of the
of a criminal offense)
offense.
• arises out of the
criminal offense
of the act which
is punishable by
the law.
QUASI-DELICTS OR TORTS • arise from • there is fault or • right or cause of
damage caused negligence action to ask for
to another • no pre-existing damages, Under Art.
through an act or contractual 2183 of the civil code
omission, there relations between
being fault or the parties
negligence, but
no contractual
relation existing
between the
parties.
LEGAL OBLIGATIONS • not presumed • must be expressly These are burden by the
Art. 1158 – LAW AS A because they are provided by law, obligor and they are the
SOURCE OF OBLIGATION expressly otherwise, we exception, not the rule
provided by the cannot presume
law that there is an • in order for it to be
obligation. demandable they
• in the absence of must be clearly set
clear provisions of forth in the law.
the law, there is
no obligation.
CONTRACTUAL CONTRACT • contracts should • if the contract is
OBLIGATIONS • meeting of mind not run contrary against the law, the
Art. 1159 between two or to what the law contract is invalid
more persons provides. and cannot be a
whereby one • freedom of source of an
binds himself, contract has obligation.
with respect to constitutional and
the other, to give statutory
something or to limitations
render some
service.
VALIDITY OF CONTRACTS – • a contract is valid Three essential requisites of a • it is invalid or void
REQUIREMENT OF A VALID if it is not contrary contract: COC if it is contrary to
CONTRACT to law, morals, 1. consent law, morals, good
good customs, 2. object customs, public
public order, or 3. cause or consideration order, or public
public policy. policy.
COMPLIANCE IN GOOD • compliance or • that which is • in case of breach, it BREACH OF CONTRACT
FAITH performance in agreed upon in will held the guilty • takes place when a
accordance with the contract is the party liable for party fails or refuses to
the stipulations law between the damages. comply, without legal
or terms of the parties and must reason or justification,
contract or be complied with with his obligation
agreement. in good faith under the contract as
provided that the promised.
agreement should
not be contrary to
law.
• observe sincerity
and honesty to
prevent undue
advantage.
QUASI-CONTRACTUAL • not properly a • law considers the • law supplies the • an exception on
OBLIGATIONS contract at all parties having consent. that if the
Art. 1160 because there is entered into a requisites of a valid
no consent. contract although contract is not
• the consent is they have not complete, but
supplied by law actually done so. = there is still
not the to prevent unjust consent because
contracting enrichment. the law supplies it.
parties.

NEGOTIORUM GESTIO • voluntary • the owner of the • it is as if may consent

(under quasi-contracts) management of properties has the (by the law)
the property of obligation to pay
another without the expenses
his consent incurred by the
person who took
care of the
 properties,
although he did
not actually give
his consent to the
act or otherwise,
the owner will
unjustly enrich
himself at the
expense of
another.
SOLUTIO INDEBITI • when an object Three requisites are: • obligation to return • it will be
or something is 1. there is no right to what was given to considered as a
received when receive the thing you by mistake donation if there is
there is no right delivered. • obligation to return no mistake.
to demand it and 2. the thing was delivered excess
was duly through mistake.
delivered through 3. other examples of
mistake. quasi-contracts.
Art. 1161 - CIVIL • commission of a • Every person • exceptions: in
OBLIGATIONS ARISING crime causes not criminally liable is crimes without
FROM CRIMINAL OFFENSES only moral evil also civilly liable material damage.
(CIVIL LIABILITY ARISING but also material for damages. (may criminal
FROM CRIMES OR DELICTS) damage. liability but walang
civil libility)
• gambling (hindi
viniolate yung
private right)
SCOPE OF CIVIL LIABILITY 1. restitution The court will order the
(return) offender to:
2. reparation for 1. return the thing or
the damage pay its value if it is
caused (if hindi was lost or
possible to destroyed.
 return, u are 2. if not possible, pay
obliged to pay for for the damages
damages) caused of the thing.
3. indemnification 3. pay such other
for consequential damages suffered by
damages the plaintiff as a
(offender obliged consequence of the
to return if crime
feasible and pay
for damages)
Art. 1162 - OBLIGATIONS • an act or Requisites of quasi-delict:
ARISING FROM QUASI- omission by a 1. there must be an act or
DELICTS person which omission.
causes damage to 2. such act of omission
another person causes damage to
there being fault another.
or negligence but 3. the damage was caused
there is no pre- through fault or
existing negligence.
contractual 4. there must be direct
relation between relation or connection
the parties. between the act or
omission and the result
of damage.
5. there is no pre-existing
contractual relation
between the parties.
CRIME DISTINGUISHED Crime Quasi-delict:
FROM QUASI-DELICT • there is malicious • there is only
intent or criminal negligence
negligence • purpose is
indemnification of
the offended party
 • the purpose is • concerns private
punishment interest
• crime affects • one liability: civil
public interest liability
• there are • liability can be
generally two compromised as
any other civil
liabilities:
liability
criminal and civil
• the fault or
• criminal liability negligence of the
cannot be defendant need
compromised or only be proved by
settled by the preponderance
parties (superior or
themselves. greater weight) of
• the guilt of evidence.
accused must be
proved beyond
reasonable
doubt.

Art.1163 SPECIFIC REAL • identified by its Article 1165 - Remedies of a Art.1174 – generally, a
OBLIGATION individuality creditor in real obligation debtor is exempted due to
SPECIFIC OR DETERMINATE • particularly • debtor cannot whether generic or specific: a fortuitous event.
THING designated or substitute without however, under Art. 1165
physically segregated. the creditor’s In a specific real obligation: PAR 3 has to exceptions to
consent although an obligation to deliver a the general rule:
• in an obligation if it’s the same determinate thing. the (1) when the obligor
to deliver a kind and quality. creditor has three options in delays in the
determinate Duties of debtor in a specific real obligation: delivery - of a
thing, the very obligation to give a (1) demand specific specific, regardless
thing itself must determinate thing: Art. performance with a of the fortuitous
be delivered and 1163
 it cannot be 1. preserve or take right to indemnity event, the debtor is
substituted care of the thing: for damages. still liable.
without the a. diligence of a (2) demand rescission or (2) when the obligor
consent of the good father of cancellation of has promised to
creditor. (only the a family: obligation with a deliver the same
debtor can ordinary care right to recover thing to two or
comply with the or diligence or damages. more persons
obligation) due diligence. (3) demand payment of having different
• note that the law (hindi pwede damages only if it’s interests – over a
does not bumaba sa the only feasible specific thing, he
authorize the standard of remedy. would still be liable
creditor to use care) Remedies of the creditor are even if there’s a
force or violence b. another alternative and not fortuitous event.
upon the debtor. standard of cumulative. (breach of the
creditor must care: if the law obligation)
bring the matter requires • only applies to
to court and the another determinate thing.
court shall be the standard of
one to order the care (ex:
delivery. (Art. extraordinary
1165) diligence if
provided by
law)
2. deliver the fruits
of the thing
3. deliver the
accessories and
accessions
4. deliver the thing
itself
answer for the damages
in case of non-fulfillment
or breach
GENERIC OR GENERIC REAL • identified only by Article 1165 - Remedies of a
INDETERMINATE THING OBLIGATION its specie creditor in real obligation
- refers only to a class or • debtor can give whether generic or specific:
genus and cannot be anything of the
pointed out with same class as long In a generic real obligation:
particularity. as it is of the same an obligation to deliver an
kind. indeterminate or generic
- genus nunquam perit Duties of debtor in thing. can be performed by a
(genus never perishes) obligation to give an third person
indeterminate thing: Art. (1) ask a third person to
1163: fulfill the obligation
1. to deliver a thing at the expense of the
which is of the original debtor.
quality intended
by the parties
• if the quality is not
stated the creditor
cannot demand
superior quality and
the debtor cannot
deliver a thing of
inferior quality.
2. to be liable for
damages in case
of fraud,
negligence, delay
or contravention
of the tenor
thereof.
• they have common
duties to be liable for
damages in case of
non-fulfillment due to
 delay, negligence,
fraud, etc.

ART. 1164 – DIFFERENT NATURAL FRUITS Rights of a creditor under Contract of sale:
KIND OF FRUITS • spontaneous product Art. 1164 • the creditor has the
of the soil, and the • applies only to specific right of the fruit if he
young and other real obligation has already paid the
products of animals • if generic real purchase price even
obligations, there is no if it is subject to a
INDUSTRIAL FRUITS right to the fruits. suspensive period.
• those produced by 1. the creditor is • the debtor has the
lands of any kind entitled to the right to the fruit if it
through cultivation or fruits of the thing was born before the
labor (human to be delivered obligation to deliver
intervention) from the time the has arisen and the
CIVIL FRUITS obligation to creditor has not yet
• those derived by make delivery paid the purchase
virtue of a juridical arises. price.
relation. ex: rent of Ownership:
buildings. (juridical When obligation to • ownership is
relation between the deliver arises? acquired by delivery:
renter and landlord) • generally, the either actual or
right arises from constructive delivery.
the time the • actual delivery:
contract is parcels in Lazada
perfected constructive
• unless the delivery: cannot be
obligation is deliver in actual like
subject to a house, land.
suspensive - certificate of the
condition or title of the lot or
period. - delivery of the key of
obligation to the house.
 deliver arises upon
the fulfilment of
the condition or “if there is no actual
arrival of the or constructive
period delivery, the creditor
• in a contract of does not become the
sale, the owner thereof, until
obligation arises the specific thing has
from the been delivered to
perfection of the him.”
contract even if - hence, when there
the obligation is has been no delivery
subject to yet, the proper court
suspensive where of action of the
the price has been creditor is one for
paid. specific performance
• in obligations to or rescission of the
give arising from obligation with
law, quasi- damages.
contracts, delicts,
and quasi-delicts,
the time of
performance is
determined by the
specific provisions
of the law
applicable.
PERSONAL RIGHT • right or power to • there is a definite
demand the active subject and
fulfilment from a definite passive
another as a subject. -
definite passive enforceable
subject the
 fulfilment of the against a specific
latter’s obligation passive subject
to give, to do or
not to do.
REAL RIGHT • the right or • there is only a
interest of a definite active
person over a subject without
specific thing (like any definite
ownership, passive subject. -
possession, or enforceable
mortgage) against anyone.
without a definite example:
passive subject ownership is a real
against whom the right directed
right may be against everybody.
personally
enforced.
Art. 1166 – in specific real ACCESSIONS • all accessions and Right of creditor to • Exclusion of
obligations, all accessions - are fruits of or additions accessories are accessions and accessories: accessions is the
and accessories must be to or improvements upon included in the • in specific real exception not the
delivered as well the principal thing. obligation to obligations, all general rule. -
- not necessary to the deliver a accessions and we can make a
principal thing. determinate thing accessories must be stipulation where
although they may delivered as well you cannot include
ACCESSORIES not have been the accessions but
- are things joined to or expressly it must be
included with the mentioned, this is expressly
principal thing for the because of the stipulated.
latter’s embellishment, principle that “the • in order to be
better use or completion. accessory follows excluded, there
- the accessory and the principal.” must be a
principal thing must go stipulation to that
together. effect, unless
 • both can exist only otherwise
in relation to the stipulated an
principal. obligation to
deliver the
accessions or
accessories of a
thing does not
include the latter.
Art. 1167 – refers to an Situation contemplated • in personal Remedies of creditor in
obligation to do (act or in Article 1167: obligation to do, positive personal obligation:
service): positive personal (1) the debtor fails to specific (1) if the debtor fails to
obligation perform an performance is comply with his
obligation to do; prohibited obligation to do, the
(2) the debtor because that is creditor has the right:
performs an contrary to what a) to have the
obligation to do the constitution obligation
but contrary to provides. -> this performed by
the terms may amount to himself, or by
thereof; or involuntary another, unless
(3) the debtor servitude. personal
performs an considerations
obligation to do are involved, at
but in poor the debtor’s
manner. expense; and
b) to recover
damages.
(2) in case the obligation
is done
contravention of the
terms or is poorly
done, it may be
ordered (by the court
upon complaint) that
 it be undone if it is
still possible to undo
what was done.
a) the court shall
order what has
been poorly done
should be
undone, at the
expense of the
debtor, if it’s still
possible; if not
b) the creditor
should recover
the damages
suffered.
Art. 1168 – refers to an • the duty of the
obligation not to do: obligor is to
negative personal abstain from an
obligation act. Remedy of the creditor in
• no specific negative personal obligation:
performance • undoing of the
• the very forbidden thing plus
obligation is damages.
fulfilled in not • if it is not possible to
doing what is undo what was done,
forbidden. either physically or
• hence, in this legally, or because of
kind of obligation the rights acquired by
the debtor third persons who
cannot be guilty acted in good faith,
of delay. Art.1169 or some other
reason, his remedy is
an action for
 damages caused by
the debtor’s violation
of his obligation.
Art. 1169 - DELAY ORDINARY DELAY
• is merely the failure
to perform the
obligation on time.

LEGAL DELAY OR
DEFAULT OR MORA
• is the failure to
perform an obligation
on time which failure
constitutes a breach
of the obligation.
KINDS OF DELY OR (1) MORA • no delay in Requisites of delay or default • at the time the buyer When demand is not
DEFAULT SOLVENDI: the negative personal by the debtor: mora solvendi actually demand to necessary to put debtor in
delay on the part obligation. (1) failure of the debtor to the seller will the delay?
of the debtor – to • obligation should perform his (positive) legal delay to set in, (1) when the
fulfil his be DUE and obligation on the date the failure to deliver obligation so
obligation to give DEMANDABLE agreed upon. such thing will be provides.
or to do. • the creditor shall (2) demand made by the sanction by law he (2) when the law so
prove that creditor upon the will be guilty of the provides.
(2) MORA demand has been debtor to comply with breach of obligations (3) when time is of the
ACCIPIENDI: the made (orally or his obligation. and be liable for essence.
delay on the part demand letter • if there’s failure to perform damages. (4) when demand
of the creditor – that is duly an obligation, there must be would be useless.
to accept the received by the a demand. (5) when there is
performance of debtor. • not mere reminder or performance by a
the obligation • debtor shall prove notice, either should be: party in reciprocal
without that delay was not • JUDICIAL DEMAND: obligations.
justifiable reason. due to his fault to complaint is filed in
relieve himself court
(3) COMPENSATION from liability. • EXTRAJUDICIAL
MORAE: the • if there is no DEMAND: made outside
delay of the demand, the court of court, orally or in
obligors in will assume that writing.
reciprocal there is extension (3) failure of the debtor to
obligation. (like in on the due date. comply with such
sake) – both GENERAL RULE: demand.
delays cancel out Delay begins only from the
each other. no moment when the
actionable creditor demand a
default on the judicially or extrajudicially
part of both the fulfilment of the
parties. obligation.
Art. 1170 – FRAUD, • BREACH IS Incidental fraud: not to
NEGLIGENCE, OR DELAY, VOLUNTARY annul the contract but to ask
CONTRAVENE THE TENOR FRAUD for damages. Under Art 1170
ARE LIABLE FOR DAMAGES.• the deliberate or
intentional evasion of Art.1390,1391. to ask for the
the normal fulfilment annulment of the contract
of an obligation. under the ground of causal
TWO KINDS OF FRAUD fraud. – contract is voidable
• INCIDENTAL FRAUD/ when causal fraud existed
DOLO INCIDENTE: vitiating consent.
committed in the
performance of the
obligation already
existing because of a
contract.
• CAUSAL FRAUD:
fraud employed in
the execution of a
contract. Art.1338,
that vitiates consent,
and it makes the
contract voidable.
NEGLIGENCE/FAULT/CULPA • any voluntary act or
omission, there being
no bad faith or
malice, however this
prevents the normal
fulfilment of an
obligation.
DELAY
- commencement
of delay
 CONTRAVENTION OF THE
TERMS OF THE
OBLIGATION
- this is the
violation of the
terms and
conditions
stipulated in the
obligation
without
justifiable excuse
or reason. the
contravention
must not be due
to a fortuitous
event or force
majeure.
FRAUD AND NEGLIGENCE • BOTH ARE (1) in fraud, thee is
VOLUNTARY deliberate
• GROSS NEGLIGENCE intention to cause
is tantamount to damage or injury,
fraud. while in
negligence, there
is no such
intention.
(2) waiver of the
liability of future
fraud is VOID,
while such waiver
may, in a certain
sense, be allowed
in negligence.
 (3) fraud must be
clearly proved,
while negligence is
presumed from
the violation of a
contractual
obligation.
(4) liability for fraud
cannot be
mitigated or
reduced by the
courts, while
liability for
negligence may be
reduced according
to circumstances
Art. 1171 – RESPONSIBILITY • liability is always • any waiver of action
ARISING FROM FRAUD demandable because for future fraud is
of fraud. (cannot be VOID. (against the law
- incidental fraud mitigated by the or public policy)
- future fraud court) • waiver of an action for
• waiver of action: in past fraud is VALID –
case may mangyaring what the law prohibits
fraud bawal kasuhan. is aiver anterior to the
fraud and the
knowledge thereof by
the aggrieved party.
- waiver of past
fraud is
considered as an
act of generosity
and magnanimity.
Art. 1172 – RESPONSIBILITY waiver of action: in case • in negligence, the Two exceptions to the
ARISING FROM may mangyaring court may mitigate the general rule: - hindi pwede
NEGLIGENCE negligence, bawal amount of damages to i-waive yung negligence sa
kasuhan. be awarded. instances na ito kasi
• when both parties are generally pwede.
mutually negligent in (1) when the nature of
the performance of the obligation
their respective requires
obligations, the fault extraordinary
of one may cancel or diligence.
neutralize the (2) when the
negligence of the negligence is so
other. gross or when it
Validity of waiver of shows bad faith,
action arising from that is equivalent
negligence: to fraud.
(1) an action for
future negligence
may be renounced
(not fraud) except
where the nature
of the obligation
requires the
exercise of
extraordinary
diligence as in the
case of common
carriers.
(2) where negligence
is gross or shows
bad faith, it is
considered
 equivalent to
fraud.
Any waiver of an action for
future negligence of this
kind is therefore VOID.
Not all future negligence
can be waived.

KINDS OF NEGLIGENCE (1) CONTRACTUAL In negligence cases the • Article 2179 – when
NEGLIGENCE OR aggrieved party may choose the plaintiff’s own
CULPA between a criminal action negligence was the
CONTRACTUAL – under Art.100 of the revised immediate and
negligence in penal code or a civil action proximate cause of his
contracts for damages under Art.2176 injury, he cannot
resulting in their of the new civil code (quasi- recover damages.
breach. delict) • but if his negligence
(contract) ex: was only contributory,
school security • liable for damages for the the immediate and
(2) CIVIL buyer for having failed to proximate cause of the
NEGLIGENCE OR fulfil his pre-existing injury being the
CULPA obligation because of his defendant’s lack of due
AQUILIANA – negligence and this is care, the plaintiff may
negligence which what we call CULPA recover damages, but
itself is the CONTRACTUAL. (source the courts shall
source of an of obligation is the pre- mitigate the damages
obligation existing contract not the to be awarded.-
between the negligence) CONTRIBUTORY
parties not so • if there is no contractual NEGLIGENCE
related before by relation the negligence
any pre-existing itself is the source of
contract. (quasi- liability (quasi-delict)
delict) ex: car
accident
 (3) CRIMINAL
NEGLIGENCE OR
CULPA CRIMINAL
– negligence
resulting in the
commission of a
crime (delict)
Art. 1173 – FACTORS TO BE (1) nature of the • negligence is never
CONSIDERED WHEN IT obligation presumed but must be
COMES TO NEGLIGENCE (2) circumstances of proven by the party
the person who alleges it. – he
(3) circumstances of who alleges must
time prove.
(4) circumstances of
the place DIFFERENT KINDS OF
DILIGENCE REQUIRED:
(1) that agreed upon
by the parties,
orally or in
writing
(2) In the absence of
stipulation, that
required by law in
particular case
must be observed
(like the
extraordinary
diligence required
of common
carriers)
(3) if both the
contract and law
are silent, then
 the diligence
expected of a
good father of a
family (in relation
to Art.1163)
ARTICLE 1174 – FORTUITOUS EVENT • a person is not Requisites for a fortuitous Exceptions to exemption
FORTUITOUS EVENTS - any event which responsible for loss or event: from liability of obligor
cannot be damage resulting in (1) the event must be due to fortuitous event:
foreseen, or fortuitous events, in independent of the (1) when expressly
which, though other words, the human will or least of specified by law
foreseen, is obligation is debtor’s will. a. the debtor is
inevitable. extinguished. (2) the event could not be guilty of fraud,
- impossible to foreseen, or if foreseen, negligence, or
foresee or is inevitable. delay, or
impossible or to (3) the event must be of contravention
avoid such a character as to of the tenor of
render impossible for the obligation.
the debtor to comply Art.1170
with his obligation in a – specific thing
normal manner. is designated
(4) the debtor must be free to particularity.
from any participation (once perished,
in, or the aggravation it will be
of, the injury to the extinguished)
creditor, that is, there is b. when the
no concurrent debtor has
negligence on his part. promised to
deliver the
same specific
thing to two or
more person
who do not
 have the same
interest.
c. when the
obligation to
deliver a
specific thing
arises from a
crime
d. the thing to be
delivered is
generic.
(2) when declared by
stipulation
(3) when the nature
of the obligation
requires the
assumption of risk.
(4) obligation is other
than obligation to
give a specific
thing. – obligation
to give a generic
thing.
Art 1179 – PURE AND PURE OBLIFATIONS
CONDITIONAL - to subject to
OBLIGATIONS condition
- no specific date is
mentioned
- not subject to a
period
- immediately
demandable
CONDITIONAL
OBLIGATIONS
- obligation subject
to a condition
- future and
uncertain event
- or past but
unknown
- must not be
impossible
Art. 1193 – OBLIGATION • no right to recovery • period stipulated is • The tenor of the
WITH A PERIOD if the debtor had presumed to be the obligation or the
knowledge of the benefit of both parties circumstances may,
period however, show it was
• debtor cannot the intention of the
recover what he had parties to constitute
paid by mistake, if the the period for the.
debt had already (1) term or period is
matured. for the benefit of
- he can only the debtor alone.
recover the (2) term or period is
interest paid for the benefit of
only. the creditor alone.

ADMINISTRATIVE CODE OF YEAR = 12 calendar • use the principle of • When there is no

1987 (EXECUTIVE ORDER months (from January to statutory construction period but a period
NO. 292) December), 30 days each to harmonize the was intended by the
month. conflicting provisions parties.
COMPUTATION OF TERM DAY = 24 hours • courts are not
OR PERIOD NIGHT = from sunrise to empowered or
sunset authorized to fix a
period for the parties.