Legally engineered oblicon Art. 1156 An obligation is a juridical necessity to give, to do or not to do/ obligation is the juridical relation whereby a person known as creditor may demand from another known as the debtor the observance of a determinative conduct in case of breach may obtain satisfaction from the asset of the latter • • • Obligation came from the word Obligatio which means biding to the parties of the obligation It is a passive aspect since it only focuses in the passive object Obligation is a juridical necessity because the courts may compel the person who’s obliged to deliver Right is the power to demand from another any prestation Legal wrong is an act or omission of a person in violation of the legal right of another Elements of legal wrong or injury 1. Legal right in favor of plaintiff or creditor 2. There is correlative legal obligation on the part of the debtor not to violate the right 3. An act or omission in violation of the right which resulted into an injury or damage Kinds of obligations Real – obligation to give Personal- obligation to do or not to do - positive personal obligation: to do - negative personal obligation: not to do Nature of obligation: Civil obligation- which give the creditor a right under the law to enforce their performance in court of justice (for ex: loan) Natural obligation- it is not base on positive law, but base on equity and natural law. It cannot be enforce in courts and cannot demand compliance but the debtor can comply voluntarily (for ex: quasi contract) Obligation has essential requisites: Passive subject- debtor or the person who is vowed to the fulfillment of the obligation active subject: creditor or the person who has the right to demand for the fulfillment of an obligation. object- the conduct required to be observed by the debtor juridical tie- source of obligation that binds the parties to the obligation Art. 1157 An obligation arise from law, contracts, quasi contracts, acts or omissions punished by law or quasi delicts Law- legal obligation imposed by law Contracts- obligation arises from the stipulation of the parties Quasi contracts- arises from lawful voluntary or unilateral act which are enforceable that no one shall unjustly benefit at the expense of another Acts or omissions punished by law- crimes or delicts. When an obligation arises from civil liability as a consequence of criminal offense Quasi delicts- arises from damage cause by another through an act or omission there being fault or negligence but no contractual relation exist between the parties. Art. 1158 Obligation derived from law are not presumed. Only those expressly determined in this code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen by the provisions of this book. - Obligation must be imposed by law or legal obligation, if it’s not provided by the law then there will be no obligation. Art. 1159 Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. - - - - It is contractual obligations but is not contrary to law, morals, public order, or public policy. Contract is valid if the 3 essential requisites of the contract exist; consent, object and cause. It should be complied with in good faith means compliance in accordance with the stipulations of the contract. Breach of contract takes place when a party fails or refuses to comply without legal reason with his obligation under the contract. Art. 1160 Obligations derived from quasicontract shall be subject to the provisions of chapter 1, title XVII, of this book - - There is no consent between the parties, but the consent is supplied by the fiction of law. Two kinds of quasi contracts; negotuirum gestio and solutio indebiti. Negotuirum gestio is the voluntary management of the property of another without the knowledge of the latter. Solutio indebiti is a juridical relation which is created when something is received when there is no right to demand it and it was delivered through mistake. The requisite; there is no right to receive the thing delivered, the thing was delivered by mistake. Art. 1161 Civil obligation arising from criminal offenses shall be governed by the penal laws, subject to the provisions of article 2177, and of the pertinent provisions of chapter 2, preliminary title. On human relations, and of title XVIII of this book, regulating damages. - Civil liability arising from crimes or delicts. Scope: art 104 of the revise penal code talks about civil liability - Restitution- babalik kung may maibabalik - Reparation- babayaran kung di mababalik - Indemnification for consequential damages- payment for moral damages Art. 2177 Responsibility for fault or negligence under the preceding article is entirely separate and distinct from the civil liability arising from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant Art. 1162 Obligations derived from quasi-delicts shall be governed by the provisions of chapter 2, Title XVII of this book, and by special laws. - Requisite: 1. there must be an act or omission 2.the act of omission cause damage to another 3.damage was caused through fault or negligence 4. there must be direct connection between the act or omission and the resulting damage 5. no pre-existing contractual relation between the parties Art. 1163 Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care - - - Duties of debtor in an obligation to give or deliver a specific thing: 1. Preserve the thing 2. Deliver the fruits of the thing 3. Deliver the accessories and accession 4. to deliver the thing itself 5. to answer for damages in case of non-fulfillment or breach Duties of debtor in an obligation to give or deliver a generic or indeterminate thing: 1. Deliver a thing which is of the quality intended by the parties 2. To be liable for damages in case of fraud, negligence, delay, or contravention of the tenor thereof under art. 1170 Diligence of a good father of a family means ordinary care or due diligence. Example for clause 2, extra ordinary diligence as to common carrier as imposed by law (jeepney drivers are obligated to drive with extra diligence for the safety of his passengers) Art. 1164 The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him - Kinds of fruits; 1. Natural fruits- product of the soil without human intervention 2. Industrial fruits- product of soil with human intervention 3. Civil fruits- derived from vitue of a juridical relation (example: rent of building) - - Personal right- the right to demand from the debtor the fulfillment of the latters obligation to give, to do or not to do Real right- the right or interest of the person over specific thing without definite passive subject. - Actual delivery- when the thing is given directly - Constructive delivery- the thing can’t be delivered directly, but the thing needed to have access or ownership of the thing (for ex: key of the car, title of land) Article 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by article 1170, may compel the debtor to make the delivery. If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor. If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery. (1096) - - Specific thing- particulary designated or physically segrated from others of the same class Generic thing- it refers only to a class or genus. Cannot be pointed out with a particularly. Distinction Generic Specific Identified by its specie Identified by its individuality Debtor can give Debtor cant anything of the same substitute it to other class and of the same without the consent kind of creditor Article 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned. (1097a) Article 1167. If a person obliged to do something fails to do it, the same shall be executed at his cost. This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098) - - - be delivered or the service is to be rendered was a controlling motive for the establishment of the contract; or (3) When demand would be useless, as when the obligor has rendered it beyond his power to perform. In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. - It talks about positive personal obligation Remedies if the debtor fails to do it: 1. the creditor may do it himself but the expense will be paid by debtor 2. to recover for damages Remedies if the debtor do it but In contrary of agreement or poorly done: 1. What has been poorly done, shall be undone by debtor if possible Creditor can’t compel the debtor if the debtor didn’t follow the agreement. But the debtor will carry the expense needed to do what has been poorly done or did but on contrary of agreement because it will be Involuntary servitude Article 1168. When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. - Talks about negative personal obligation Article 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation. However, the demand by the creditor shall not be necessary in order that delay may exist: (1) When the obligation or the law expressly so declare; or (2) When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to - Types of Delay: Ordinary delay- the failure to perform the obligations on time Legal delay- failure to perform the obligations on time which failure constitutes a breach of obligations Types of legal delay: Mora solvendi- the delay on the part the debtor to fulfill his obligations by reason of a cause imputable to him. Requisites to know there is mora solvendi: 1. Failure of debtor to perform his positive obligation on the date agreed upon. 2. Demand made by the creditor to be fulfilled by debtor. 3. Failure of the debtor to fulfill the demand Mora accipiendi- delay on the part of creditor without justifiable reason to accept the performance of obligation Compensatio morae- delay of the obligors in reciprocal obligations. No actions default for both parties This article talks about legal delay. Article 1170. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. - Breach of obligations is voluntary. Pertaining to the incidental fraud- the fraud happened at the execution of the contract Article 1171. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a) - Pertaining to incidental fraud. Waiver on an action for past fraud is valid. Article 1172. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances. (1103 - - Isn’t as serious as fraud since it’s not intentional. Kinds of negligence 1. Contractual negligence- negligence in contract resulting in breach 2. Civil negligence- quasi delicts 3. Criminal negligence- resulting in a crime Effect of negligence 1. Plaintiff’s negligence is the cause of his injury, the defendant will not be liable for the damages 2. Plaintiff’s negligence is partly the cause of the damages, the award for the damages to the plaintiff will be reduce. Article 1173. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201, paragraph 2, shall apply. If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a) - self explanatory The negligence is not presumed, but the plaintiff must prove the negligence of the defendant. Article 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a) - - Fortuitous event- event that is impossible to foreseen and impossible to avoid. Which means that the obligor is not liable to the obligation Requisite of fortuitous event: 1. Event must independent of the will or of the obligor’s will. 2. The event could not be foreseen, but if foresee is impossible to avoid. 3. The event must be of such a character as to render it impossible for the obligor to comply with his obligations in a normal manner. 4. The obligor must be free from any participation in the injury to the obligee General rule if there’s fortuitous eventa person is not responsible for loss or damages. Exception to general rule: 1. When the debtor is guilty of fraud, negligence, delay or contravention of tenor. (art 1170) 2. When the debtor has promised to deliver the same specific things to two or more person who do not have the same interest (art. 1165) 3. When the obligation to deliver of the specific thing arises from a criminal offense. Exception: unless the thing haven’t been offer by the debtor to the person who should receive but did not accept without legal justification (Mora accipiendi) 4. When the thing to be delivered is generic. 5. When it is declared by the stipulation of the party 6. When the nature of obligation requires the assumption of risk. (for ex. Insurance) - Article 1175. Usurious transactions shall be governed by special laws. (n) - - Covers simple loan- is a contract whereby one of the parties to deliver money or other consumable thing upon the condition that the same amount of the same kind and quality shall be paid It may be gratuitous or with a stipulation to pay interest. Usurious transactions – is a contracting for or receiving interest in excess of the amount allowed by law for the loan or use of money, goods or credits. Article 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a) - Kinds of Presumption: Conclusive- One that cannot contracdicted Rebuttable- One that can contradicted be be Article 1177. The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them - Talks about remedies available to the creditors for the satisfaction of their claims if the debtor didn’t comply with his obligations Remedies: 1. Exact fulfillment with the right to damages 2. Persue leviable property of the debtor 3. Creditor may exercise the rights of the debtor with exceptions. 4. Creditor may ask the court to impugn acts made by the debtor to defraud them. Article 1178. Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary - General rule- all rights acquired in virtue of an obligation are transmissible Exeception 1. When prohibited by law (for ex: right in partnership) 2. When prohibited by the stipulation of the party Article 1179. Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once. Every obligation which contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event. - - - Pure obligation is not subject to any condition and no specific date and is immediately demandable Conditional obligation is subject to a condition. Future event but uncertain to happy Kinds of obligation Suspensive condition- demandability of obligation is demandable once the condition is fulfilled - Resolutory condition- if the condition is fulfilled the obligation will be extinguished. When is an obligation demandable at once? - When the obligation is pure Obligation is subject to a resolutory condition Subject to a resolutory period Article 1180. When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of article 1197 - Period- Future event but certain to happen (for ex: death) Article 1181. In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition - If the resolutory obligation fulfilled the obligation will extinguished If the suspensive condition is fulfilled the obligations will be demandable Article 1182. When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the provisions of this Code - - - Potestative condition is a condition suspensive in nature and depend upon a sole will of one of the contractive party if the obligation depends on the sole will of debtor the conditional obligation is void. But if the obligation is the preexisting one the condition is void but the obligation is still valid. Suspensive condition depends upon the sole will of creditors is valid. It means - - that the creditor is always interested in the fulfillment of obligations. Resolutory condition depends upon the sole will of debtor is still valid. Casual condition- if suspensive condition depends upon chance or upon the will of a third person, the obligation is valid. Mixed condition- if suspensive condition depends upon chance and upon the will of a third person, the obligation is valid. Article 1183. Impossible conditions, those contrary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the impossible or unlawful condition shall be valid. The condition not to do an impossible thing shall be considered as not having been agreed upon - Physically impossible- nature of things they cannot exist or cannot be done Legally impossible- when they are contrary to law, morals, good customs, public order and public policy Article 1184. The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place Article 1185. The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur. If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation Article 1186. The condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfillment Article 1187. The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the day of the constitution of the obligation. Nevertheless, when the obligation imposes reciprocal prestations upon the parties, the fruits and interests during the pendency of the condition shall be deemed to have been mutually compensated. If the obligation is unilateral, the debtor shall appropriate the fruits and interests received, unless from the nature and circumstances of the obligation it should be inferred that the intention of the person constituting 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 Article 1188. The creditor may, before the fulfillment of the condition, bring the appropriate actions for the preservation of his right. The debtor may recover what during the same time he has paid by mistake in case of a suspensive condition Article 1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition: (1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished; (2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered; (3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor; (4) If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case; (5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor; (6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary
