Obligation (RA 1156)
Civil Obligation -> enforceable in court
Natural Obligation -> not enforceable in court; based on moral/equity
Ex: voluntary payment of debt w/ KNOWLDEGE of prescription = can’t be recovered
ESSENTIAL REQUISITES
1. Consent/Subject
 Active = creditor
 Passive = debtor
2. Object/Prestation
 To give
 To do
 Not to do
3. Cause/Vinculum
 Law – obligations from law not presumed
 Contracts – having force of law between contracting parties
 Quasi-Contracts – Lawful ; Unilateral ; Voluntary (LUV)
“no one should be unjustly enriched @ expense of another”
►Negotiorum Gestio – reimbursement of useful and necessary expenses
►Solutio Indebiti – return payment ; example tax erroneously collected by BIR
 Delict – crimes/felonies
 Quasi delict (Tort/Culpa Aquiliana) – to prosper “CEND”



Cause & effect
Negligence = proximate cause
Damage
OBLIGATION TO GIVE
1. Take care w/ Diligence of a good father of a family
2. To deliver the thing w/ all its accessions, accessories and fruits
 Thing
► Determinate
► Indeterminate
 Accessions – attached/ incorporated to the thing
► Plants on land bought
 Accessories – joined for better use/ enjoyment
► Keys of house/car
 Fruits (only if expressly agreed)
1. Kinds of Fruits
ᴥCivil – result of juridical relation; rent, annuities
ᴥIndustrial – w/ labor ; rice, corn, etc.
ᴥ Natural – trees grow naturally ; young & products of animal
2. When right to fruits accrue
ᴥ Personal right (Jus ad rem) : obligation to deliver arises = perfection
ᴥ Real right (Jus in re)
: delivery
REMEDIES IN CASE OF BREACH
 TO GIVE
► Determinate 1. Specific performance + damages
2. Annulment
► Indeterminate 1. Specific performance + damages
2. Ask 3rd person to do @ debtors expense+D
 TO DO “X specific performance constitutes involuntary servitude”
► Undone/Contravenes Tenor
GROUND FOR LIABILITY TO PAY DAMAGES

EX: B bought a ring from S who told him that the ring is diamond although it was only glass.
HERE: Obligation existed due to the fraud that the thing correspond to representation.
► Incidental Fraud ( Dolo Incidente) = valid = damages
EX: S agreed to deliver a specific brand of wine to B. Subsequently, S delivered a cheaper wines.
HERE: Fruad = Incidental , committed in an obligation already existing.
► Future fraud = waiver for future f. = void = still liable
► Past fraud = waiver for past f. = valid = not liable
1. Ask 3rd person to do @ debtors expense+D
► Done poorly
1. Ask 3rd person to undo @ debtors expense+D
 NOT TO DO ; Ask 3rd person to undo @ debtors expense+D
 REMEDIES OF CREDITOR TO ENFORCE PAYMENT FRM DEBTOR
(Following must be enforced successively)
Fraud (Dolo)
► Casual fraud (Dolo Causante) = voidable = annulment

Negligence (Culpa)
►Contractual negligence (culpa contractual)
Ex: passenger hurt due to drivers negligence
 Liab driver : breach contract of carriage
 Liab operator : master-servant rule “negligence of
servant is negligence of the master”
1. Pursue debtors property =file exact fulfillment pray prop. Attachment
2. ACCION SUBROGATORIA =subrogated to debtors rights except those
personal to him.
3. ACCION PAULIANA = impugn acts debtor done to defraud him
Ex: debtor sold land, creditor may rescind the sale and sell it in auction and apply proceed to
his debt (this remedy is not available if buyer is in good faith)
►Civil negligence (culpa aquiliana/tort/culpa xtra contractual)
Ex: pedestrian hurt due to drivers negligence
 Liab driver : reckless driving
 Liab operator : master-servant rule does not apply as
master has no contractual relation to the pedestrian = no liability
►Criminal negligence (culpa criminal)
Ex: passenger & pedestrian may file ‘reckless imprudence resulting to
physical injuries’ to driver.
Liab operator : Employees criminal guilt is AUTOMATICALLY employers
civil guilt if former is insolvent

Delay (Mora)
1. Kinds of Delay
FORTUITOUS EVENTS
GENERAL: No person is be liable for fortuitous event provided in GOOD FAITH
► Mora Solvendi (Delay on Debtor)
Delay to give: Mora Solvendi ex re
Delay to do : Mora Solvendi ex persona
► Mora Accipiende (Delay on Creditor)
► Compansatio Morae (Delay on both)
2. When delay incurred ?
► GENERAL: from demand “no demand no delay”
► EXCEPTION: delay exist even w/o demand when:
1. law provides –> taxes
2. obligation expressly declares -> w/o need of demand
3. time is of the essence of contract
4. demand would be useless ->thing is destroyed/ delivered to another
5. reciprocal obligations when 1 party fulfills his obligation delay by the other begins.
Notes: no delay in obligation not to do

Exemplary - correction for public good
Nominal – to vindicate right
Temperate - A>T>N ; amount can’t be proved w/ certainty
Actual – compensatory loss ; lost profits “needs proof”
Liquidating – due to breach
Contravenes Tenor
KINDS OF DAMAGES (MENTAL)*MENTL proof not needed
Moral – mental anguish
EXCEPTION: 1. When law expressly provides
2. When contract expressly agreed
3. nature of obligation requires assumption of risk
BURDEN OF PROOF : lies to person invoking Fort. Event in G/F.
REBUTTABLE PRESUMPTIONS: 1.receipt of principal = interest is already paid
2.reciept of later installment= prior inst. already paid
Different kind Of Obligations
1. Pure Obligation = demandable at once
2. Conditional obligation = FUTURE AND UNCERTAIN
֎ Kinds of Conditional Obligation
 Suspensive (cond. antecedent/cond precedent)
→ fulfillment of condition = perfection of contract
 Resolutory (cond. subsequent) = DEMANDABLE @ ONCE
→ fulfillment of condition = extinguishes contract
 Potestative – depends on will of contracting party
Potestative on part of
Debtor
Creditor
Suspensive
Void
valid
 Casual – depends upon chance or will of

3rd
Resolutory
valid
valid
person
Mixed – partly casual and partly potestative Ex: D will give C 50K if C
marries G
 Possible – capable of fulfillment

Reciprocal – debtor & creditor of each other;
Breach. Injured party may ask 1. Rescission + damages 2. Fulfillment + damages
֎ EFFECT OF FULFILLMENT OF SUSPENSIVE CONDITION
GENERAL: Fulfillment of condi retroacts to the day of constitution of
obli
EXCEPTIONS: No retroactive effect when:
 Impossible – incapable of fulfillment
Obligation To do
Obligation Not to do
Ex: C will give K, car if he passes exam and eats marijuana.
1. Reciprocal Obligation
Void
Valid: Demandable @ once
 Positive – some event happens @ determinate time.
Obligation extinguished when 1. time expires
2. Indubitable that event will not take place.
 Negative – some event will NOT happen @ determinate time
Obligation demandable when 1. Time elapsed
2. Evident that event will not happen
 Divisible – capable of partial performance ; part capable of fulfillment is
valid
Ex: C will give K, car if he passes exam and house if he eats marijuana.
 Indivisible - incapable of partial performance ; Whole obligation void
fruits & interest = mutually compensated = fruits seller, no inte buyer
Ex: A sell his land to B for 5M if G passes exam = each will keep fruits & interest during its
pendency.
2. Unilateral Obligation
Ex: A give his land to B for 5M if G passes exam = A keeps the fruits during its pendency.
֎DEBTOR VOLUNTARILY PREVENTS FULFILLMENT: condi deemed fulfilled =
demandable @ once
֎RULES IN CASE OF LOSS/DETERIORATION
Circumstance
Deterioration
Loss
Improvement
Borne by:
With fault
Without fault
Debtor:
1. Rescission + D
2. Fulfillment + D
Debtor: Damages
Removable: debtor
Creditor: No damages
Obligation continued
Creditor: Obli Extinguished
Creditor: inure to him
Unremovable : usufruct dr
 Disjunctive = delivery of 1, extinguishes obligation
3. Obligation with a Period - FUTURE AND CERTAIN ; benefit of both
 Resolutory (In Diem) = demandable @ once
 Suspensive (Ex die) = demandable @ arrival of term
1.Alternative Obli- choices, delivery of 1 = fulfillment
֎ court may fix time when period depends upon debtors will:
CONVERT TO SIMPLE OBLI: 1. Debtor/Creditor communicated his choice
ex: when my means permit me to do so , as soon as possible, little by little
֎ Period for benefit of both.
EXCEPT: when given to creditor (can’t be compelled to receive but may demand
payment @ his option)
when given to debtor (can’t be compelled to perform but may perform @ his option)
WHEN DR LOSSES THE RIGHT TO MAKE USE OF PERIOD:
1.Becomes Insolvent and no guaranties/security given
2. Failed to furnish guaranties/securities promised
3. When gur/sec, lost w/ or w/o fault, and no new gur/sec given
4. Violates undertaking or conditions
5. When he attempts to abscond
4. Compound Obligation
 Conjunctive = All must be delivered
RIGHT OF CHOICE: Debtor unless given to creditor
2. Only 1 is practicable/possible
CIRCUMSTANCE
All lost thru Fort. event
All lost thru Dr. fault
1 remains
1 remains = simple obli:
sub lost thru dr fault
1 remains = simple obli:
sub lost thru fort event
@DEBTORS CHOICE
Extinguished
Value of last thing+ D
Deliver remaining
Damages
Extinguished
@CREDITORS CHOICE
Extinguished
Value of any item+ D
N/A
Deliver remaining or Value
of lost+D @ Cr choice
Delivery any remaining @
creditors choice
2. Facultative Obli - substitute, delivery of Principal = fulfillment
RIGHT OF CHOICE: Debtor ONLY
Lost
Principal
Substitute
Thru
Fortuitous
Fault:
Fortuitous
Fault:
Before sub
extinguished
damages
no effect
no effect
After sub
no effect
no effect
extinguished
damages
Remission
5. JOINT OBLIGATION
and
SOLIDARY OBLIGATION
OTHER TERMS
SOLIDARY
Jointly and Severally
Jointly OR Severally
Jointly and Separately
Jointly and Individually
Jointly and Collectively
JOINTLY
Proportionately
Jointly and Proportionately
Mancomunada Simple
Mancomunada
7. Obligations w/ Penal Clause
*Proof of actual damage not needed to claim penalty
GENERALLY: Penalty in lieu of interest & damages
Jointly and Exclusively
EXCEPTION: 1. When stipulated that penalty,interest,dam will be claimed
Individually and Collectively
Manco. Solidaria
2. Debtor refuses to pay penalty
Juntos o Seperadamente
3. Debtor guilty of fraud
GENERALLY: Joint
EXCEPTION: 1. Obligation expressly states solidarity
2. When law requires solidarity ~ EX:
Extinguishment of Obligation (NoCoMeRePaLoPreReFulAn)
Principal in Contract of Agency
 “I” signed by 2 or more
 In case of fault/quasi delict 2 or more
partners in partnership
CIRCUMSTANCE
1 Party = Incapacitated
1 Party = Insolvent
SOLIDARY
JOINT
Absorption = Remaining Co-Dr
shall shoulder
No Absoption = Dr liable only
to their respective shares
1.Novation
2.Compensation
3.Merger
4.Rescission
5.Paymet
6.Prescription
7.Remission/Condonation
New Dr : Subrogated to Creditors right
8.Fulfillment
Creditor: If new dr INSOLVENT, cant go after old dr except:
1. Insolvency already public knowledge upon delegation
9.Annulment
2. Insolvency already known by old dr upon delegation
NOVATION
֎Substituting Creditor: Always w/ creditors consent
(modification of obligation 1.Changing object 2. Substituting debtor 3.Subrogating Creditor)
 CONVENTIONAL – by agreement of parties
 LEGAL – by operation of law
PRESUMPTIONS:
1. If old obli voidable can be cured wd a valid novation ; if void orig, cant be novated
2. New obli follows old conditions unless otherwise stipulated
1.Interested party pays (surety/co-cr preferred/etc) = Dr consent not needed
2. Not Interested p. pays ( 3rd person) = Dr consent needed =X part Dr benefit
3. Old cr shall be preferred as to remainder from subrogated cr
COMPENSATION
4. Accessory obli extinguishe by novation except whne 3rd person is prejudiced.
Kinds :
(2 persons are both creditors and debtors of each other)
1.Real/Objective – changing object/condition
֎1 or both are rescissible/voidable may be compensated against each other
before they are judicially rescinded/avoided
2.Personal/Subjective – changing parties
1.LEGAL (Ipso Jure= By law itself) =consent of parties not necessary
֎Substituting Debtor: Always w/ creditors consent
Requisites: 1. Both bound PRINCIPALLY
 EXPROMISSION – w/o debtors consent
New Dr : Recover only what Old Dr has benefited
Creditor: If new dr INSOLVENT, cant go after old dr
 DELEGACION – w/ debtors consent
2. FUNGIBLE = capable of substitution
3. Both debts are due & demandable
2.CONVENTIONAL = agreed by parties
3.JUDICIAL = ordered by court
 & 5,000 Immovable = Writing/Oral+Delivery
4.FACULTATIVE = not all requisites are present = may be opposed by a party
1 DEBT IS
CLAIMANT
CANNOT CLAIM
CONTRACT OF DEPOSIT
BANK DEPOSIT=contract of loan
CONTRACT OF COMMODATUM
FUTURE SUPPORT BY
GRATUITOUS TITLE
CIVIL LIAB FROM PENAL OFFENSE
Depositor
Depositor & Bank
Lender
Entitled for support (
Depositary
none
Bailee/Borrower
Supporter (father in case of
mother in case of sepration)
separation)
Offended party
Offender
MERGER / CONFUSION
(1 person is both creditor & debtor)
Merger of Joint Cr/Dr = Only part of joint cr/dr extinguished
Solidary Cr/Dr = Whole obli is extinguished
PAYMENT
How Payment is made
 Delivery of Thing/Service
Must deliver what is agreed and creditor can’t be compelled to accept a
GREATER / LOWER value ; unless consented.
 Payment in Legal Tender=PhP
All bills
Php 1,000 for 1, 5 and 10 Php
Php 100 for 1, 5, 10, and 25 cents
 Delivery of Mercantile Docs/ Check NOT legal Tender until
1. CASHED 2.Impaired thru creditors fault
►Payment must be complete and cr can’t be compelled to accept partial
payment unless:
1. Partial Compliance in Good Faith; Ask payment less damages suffered by cr
REMISSION /CONDONATION
(Gratuitous abandonment/forgiveness of debt)
2. Cr have knowledge of Incompleteness & no Protest made; Deemed FULLY
COMPLIED
PRESUMTION:
1.When PRIVATE doc in possession of dr = delievered voluntarily by cr = condoned
2.When thing PLEDGED in possession of dr = Pledge condoned, Principal remains
REMISSION OF : Movable = Public Doc  VOID
5,000 Immovable = Writing
EX: S promised to deliver 20 cars to B, after del 18 cars no more cars r available and tho he
want to complete del, he cant. HERE: S may collect payment for 18 cars
 VOID
EX: S agreed to paint B’s car red but he painted it maroon. B accepted the car w/o any
objection. HERE: Obligation fully complied despite irregular performance
WHO MUST MAKE PAYMENT
WHERE PAYMENT IS GIVEN
1.By Debtor who have:
DETERMINATE
GENERIC
Capacity to Alienate
1. Stipulation
1. Stipulation
2. Place of thing @ perfection
2. Domicile of DEBTOR
1.Incapacitated Payor = Injured party may seek annulment
2.Judicial order to retain debt but dr still paid to cr= He maybe made to pay again
Free disposal of thing = Free from any encumbrances= Prop already mortgaged, not valid
2. By 3rd person when agreed OR 3rd person has interest in debt:
Guarantor
SPECIAL FORMS OF PAYMENT
1. Dation in Payment (dacion en pago/datio in solutum) ~ Law on Sales
Payment w/ consent of debtor = Conventional Subrogation
2.Payment by Cession
Payment w/o consent of debtor= Recover what Dr has benefited
BOTH: needs creditors acceptance
TO WHOM PAYMENT IS GIVEN:
1. TO CAPACITATED dr: if incapacitated = valid only to extent 1. BENEFITED 2. KEPT
2. TO HEIRS/ASSIGNS/AUTHORIZED PERSON: unathorized = invalid except:
1.Payment redounded to cr benefit = Cr ratifies , Cr actions led dr to believe 3rd per authori
2.Payment in GOOD FAITH made to 3rd person in POSSESSION OF CREDIT
EX: A issued note payable to B, note however waslost and picked up by C. C goes to A to collect
and A pays in G/F. HERE: A released frm liab and B may only recover payment frm C
DATION IN PAYMENT
Plurality of creditors not required
Debtor may not be insolvent
Doesn’t affect all Dr property
Creditor becomes owner of Prop given
Debtor released frm liab in FULL
PAYMENT BY CESSION
Plural Creditors required
Debtor must be insolvent
Affects all Drproperty except those exempt
No transfer of ownership= only right to sell
Debtor is not released until FULL recovery
PRESCRIPTION
3.Application of payment
REQUISITES: 2 or more debts same kind are due and demandable w/same
debtor to same creditor
HOW MADE:
1. As to preference of 1. Debtor
2. Creditor = MUST BE COMPLETE unless Cr consents to partial payment
2. No pref made : 1. To debt most onerous to dr = guaranty/interest
2. Same burden= to all proportionately
(Acquisition/Loss of right due to lapse of time)
Laches – unreasonable delay in bringing cause of action before the courts brings the
presumption that such person abandoned his right.
10 YEARS
written contract
Obligation created by law
Judgement
Oral Contract
Quasi-Contract
Upon injury on Plaintifs right
Annulment of Voidable Contract
6 YEARS
4 YEARS
4.Tender of payment and Consignation
Quasi-Delict
TENDER OF PAYMENT – Act of offering creditor what is due to him
CONSIGNATION – act of depositing sum/thing to Court when cr refuses to accept w/o just cause
REQUISITES: 1. Valid tender of payment: complete and due
5 YEARS
Others:
LOSS OF THE THING DUE
Except: *Cr absent/unknown/incapacitated/2 or more claims thing/Title is lost/ Refuses w/o cause
2. Creditor refuses w/o just cause
3.Notification to Cr of INTENTION to consign thing to court: X VOID
4.Thing consigned to court and
5.Notify Cr CONSIGNATION has been made: X VOID
(PERISHES/GOES OUT OF COMMERCE/EXISTENCE CANT BE ASCERTAINED)
Circumstance
(Determinate thing)
Deterioration
WITHDRAWALOF THING CONSIGNED
BEFORE ACCEPTANCE OF CONSIGNATION
AFTER ACCEPTANCE OF CONSIGNATION
No need of Creditors CONSENT
Must be w/ Creditors CONSENT
Obligation remains
Guaranties not released
Obli revived:Creditor lose right over thing
Guarantors are released
Loss
Improvement
Borne by:
With fault
Without fault
Debtor:
1. Rescission + D
2. Fulfillment + D
Debtor: Damages
Removable: debtor
Unremovable : usufruct dr
Creditor: No damages
Obligation continued
Creditor: Obli Extinguished
Creditor: inure to him
INDETERMINATE/GENERIC = Obligation remains “genus nunquam perit”