1156 - 1162 : (6 articles) CHAPTER 1 : GENERAL PROVISIONS
1163 - 1178 : (15 articles) CHAPTER 2: NATURE AND EFFECT OF OBLIGATIONS
1179 - 1192: (13 articles) Section 1, Pure and Conditional Obligations
1193 - 1198: (5 articles) Section 2, Obligations with a Period
1199 - 1206: (7 articles) Section 3, Alternative Obligations
CHAPTER 1: General Provisions
1156: meaning of obligation
1157: 5 sources of obligation
1158: obligations derived from law are not presumed
1159: contractual obligations have force of law and should be complied with in good faith
1160: quasi contracts subject to Chapter 1, Title 17
1161: crimes are governed by (1) penal laws, (2) article 2177, (3) Chap 2 Preliminary Title, on
human resources, and (4) title 18
1162: quasi delicts subject to Chapter 2, Title 17 and by special laws
CHAPTER 2: Nature and Effect of Obligations
1163: diligence of a good father barring any other required standard of care
1164: personal right of fruits from perfection of contract, real right is only upon delivery
1165: in delivering determinate things - creditor can compel debtor
In delivering generic thing – obligation is complied at expense of debtor
If there is delay or a promise to two or more creditors, debtor is liable for fortuitous events
1166: Accessions and accessories are delivered even though they are not mentioned
1167: (1) Failure at obligation to do, (2) contravention, (3) poor performance renders that obligation
shall be executed at debtor’s expense even through the performance of a third party
1168: Failure at obligation not to do is also rendered at the expense of the debtor
1169: 4 Exceptions to delay
1170: 4 Grounds for Liability
1171: any waiver for future fraud is void
1172: liability from negligence may be reduced by courts, whereas liability from crimes are not
1173: negligence is the omission of proper diligence
1174: general rule of fortuitous events, exceptions : (1) explicitly stated, (2) obligation assumes risk
1175: usury is legally non-existent; parties are free to stipulate interest except when it is
unconscionable; remedy of court is only to reduce the interest
1176: A receipt of (1) principal or (2) debt installment without any reservation to prior (1) interests
or (2) installments are presumed paid
1177: creditors may exercise all their rights to satisfy their claims on the debtor or impugn the acts
of debtor to defraud an act but creditor cannot take away rights that are inherent to the debtor
1178: rights acquired by virtue of obligation is transmissible
SECTION 1: Conditional Obligations
1179: 3 obligations demandable at once
1180: debtor pays when his means permit him to do is, is an obligation with a period
1181: acquisition and extinguishment of rights of a conditional obligation depend on the happening
of the said event
1182: fulfillment of condition is left to sole will of debtor is void, if it depends upon (1) creditor or
a (2) third party, it is valid
1183: impossible conditions annuls the obligation; but in cases of divisible obligations, only those
affected by the impossibility is annulled
1184: positive condition gives rise to an obligation if it happened before the time expires
1185: negative condition gives rise to an obligation if it did not happen after the time expires
1186: obligor can voluntary prevent the fulfillment of a condition barring bad faith, fraud, etc
1187: retroactivity of conditional obligations
: fruits and interests are mutually compensated in reciprocal obligations
1188: debtor can recover payments prior to due date if it was a mistake
1189: LDI during the pendency of the condition
1190: parties in a resolutory condition shall return what they received at the start of the obligation
: in case of LDI, 1189 shall apply
1191: you can (1) rescind or (2) fulfillment in reciprocal obligations + damages, in case of noncompliance from one party, but these 2 are alternative and not cumulative
1192: first infractor known, his liability is reduced
: first infractor cannot be determined, obligation is extinguish and both bear his own damages
SECTION 2: Obligations with a Period (C-I-R-Be-Po-L)
1193: day certain is the criteria of obligations with a period
1194: in case of LDI, 1189 shall apply
1195: debtor can recover payment by mistake under the presumption that he is unaware of the
period
1196: benefit of the period is for the debtor and creditor, you cannot compel the debtor to pay
neither the creditor to accept payment
1197: power of court to fix period when (1) no period fix, but period intended, (2)duration of period
depends upon will of debtor
1198: Loss of right to period in 5 cases (1) insolvency, (2) no guarantee, (3) impaired such
guarantee, (4) violates tenor, (5) abscond
SECTION 3: Alternative Obligations
1199: meaning of alternative obligation
: credit cannot receive 50% of option 1 and 50% of option 2 and so on
1200: right of choice belongs to debtor unless stated on the contrary
: debtor has no right of choice in impossible, unlawful, out of place, prestations
1201: choice of what to comply in alternative obligations will have an effect only from the time the
choice has been communicated to the other party
1202: if only 1 is practicable or when the choice is communicated, the alternative obligation
becomes a simple one where only 1 prestation is demandable
1203: if the options are damaged or lost through the creditor’s fault, the debtor can (1) rescind or
(2) continue with the remaining options and claim value of lost item plus damages, or (3) choose
the lost item and the obligation is extinguished where he is not liable to creditor
1204: debtor has right of choice, and some of the options are lost through his fault, nobody is liable
: debtor has right of choice, and all options are lost through his fault, creditor indemnifies him
: debtor has right of choice, and all options are lost through fortuitous events, extinguished
1205: creditor has right of choice, some lost through fortuitous event, continue with what remains
Creditor has right of choice, all lost through fortuitous events, extinguished
Creditor has right of choice, some lost through debtor’s fault, remaining or claim the lost item
plus damages
Creditor has right of choice, all lost through debtor’s fault, price of any plus damages
1206: facultative meaning; always look at what’s due whether it is the principal or the substitute.
That will guide in determining the liability of a party
5 Types of Law
4 Charactersitics of Law in Specific Sense
5 Sources of Law
4 Requisites of Obligation
2 Kinds of Obligation According to Subject Matter
3 Scope of Civil liability
3 Effects of Delay
3 Kinds of Negligence
2 Kinds of fortuitous events
2 Types of Presumption