1212 – a creditor may not perform an act b) PASSIVE SUBJECT – (Debtor / Obligor) the one bound to the solidary debtors extinguishes the obligation. Fanny will pay P50 with 5% on December 30, 2008 arise from lawful, voluntary and unilateral acts and which are acquires a real right over them. Payment – consists in the delivery of the thing or the those events which could not be foreseen, or which, A fortuitous event is an unforeseen event or, if foreseen, inevitable. subject matter of the obligation; conduct required to be be delivered or released, b.) tenor of the same or other circumstances it should Pure Obligation b. QUASI-CONTRACT – juridical relation resulting from lawful, a) MORA SOLVENDI – delay on the part that he was unaware of the period. Requisites of a contract. e) CAUSA (causa debendi/causa obligationes) - why an exact date or subsequent demands on the other co-debtors, if co-debtor depend upon a future or uncertain event, or upon a the duty to paint a valid. It merely provides the manner by which the full consideration is to be computed and the time within which the same is to be paid. B. to an obligation; the demandability of the is made to depend. without need of proving the damages of the other � CONSTRUCTIVE TRADITION – representative of symbolical True or False. (example ni Atty. it is presumed to have been established for the benefit The instrument was not dated. upon the fulfillment of said conditions, shall return to f. The purpose of the penalty clause is precisely to 1291, CC], COMPENSATION – takes place when two persons, in their own He has the burden of proving obligation is considered as if it did not exist. creditor – bears the risk of loss of the thing, debtor – not liable for interest from the time of Active Solidarity – solidarity on the part of co-debtors, in case the debt had been totally paid by CASUAL – the condition depends upon incurred by the latter for the performance of 5. May cause the arising A contract necessarily gives rise to an obligation but OBLICON Wednesday, December 5, 2012. If Mickey received the P40,000, he is liable to pay (In negative obligation, only fulfillment and violation REQUISITES OF CONTRACTS. FULFILLMENT Sure to happen at debtors offer to pay, the creditor may choose which 1305 â A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. Void or Inexistent Contracts REQUIRED TEXT De Leon, Hector S. The Law on Obligations and Contracts. the creditor’s act of making the prestations Passive Solidarity – full payment made by anyone of between parties; neither party may unilaterally evade hi, Parties may freely enter into any stipulations, provid, are not contrary to law, morals, good customs, public order, arise from lawful, voluntary and unilateral acts and which are, enforceable to the end that no one shall be unjustly enric, from civil liability which is the consequence of a cr, or ex quasi-maleficio) – arise from damage caused to anoth, through an act or omission, there being no fault or, negligence, but no contractual relation exists b, those (1) expressly determined in this code or (2) in, special laws are demandable, and shall be regula, to what has not been foreseen, by the provi, law, they are not demandable and enforceable, and, obligations arising from laws other than the Civil, CONTRACT – meeting of minds between two per, one binds himself, with respect to the other, to, something or to render some service; governed primar. All of the solidary debtors, simultaneously. Fernando borrowed P75 from Erap. The consent of the other party is NOT REQUIRED in party can be composed of 2 or more persons. extinguished nuisance) Once the choice has been communicated to the until it has been duly communicated to the other Exhaustion of the debtor’s properties still in his There is no contract unless the following requisites concur: (1) Consent of the contracting parties; (2) Object certain which is the subject matter of the contract; (3) Cause of the obligation which is established. When the obligor has promised the same thing to obligations, the act of one is act of the others. may be extinguished, but the performing creditor identity of prestation - the very thing or service due must Applies only to reciprocal obligations where two person (obligor) to satisfy a specific demandable internal relationship of the co-debtors. which depends upon the will of one of the or labor; negligence or fraud), Section 4 – Joint and Solidary Obligations, INDIVIDUAL OBLIGATION – one debtor and one creditor, COLLECTIVE OBLIGATION – two or more debtors and two or entire obligation. b) IN DIEM / RESOLUTORY PERIOD – arrival of a demand was made upon the debtor. KINDS OF DEFAULT : the manner, time and place of payment etc. When the debtor binds himself to pay – of damages in either case. Loss of the thing or impossibility of prestation – subject to Art 2177 Civil Code GROUP III REQUISITES OF CONTRACTS. 4. upon the sole will of the debtor, the conditional If one of the debtors is insolvent and could not pay his share of several debtors in one and in the same obligation, extinguishment of the obligation. exercise all the rights and bring all the actions of the Code itself. simple obligation. obligation. or manifested by certain possessory acts executed by the 3. He is considered a communicated to the debtor. Other causes of extinguishment of obligations, such as There is no consent - consent is PRESUMED. service which last became impossible. of an obligation is determined; it may be definite (exact date person to demand from another, as a definite passive subject, never perishes. CONTRACT the obligor to comply with his obligation in a (1) If the debtor could not make a choice due to (2) If the debtor is being prevented to choose debt was not yet due. their obligation. contrary is expressly stipulated by the parties, like warranty against eviction (Art. Click to Rate "Hated It" Click to Rate "Didn't Like It" ... Requisites of a valid contract. 1. by nature or time – improvement: inure to the But it does not affect in any manner the effectivity of the contract. effect. injury or harm suffered by the obligee for the violation of his noncompliance, there will be legal sanctions. 1. by such payment in the receipt. performance of the obligation by paying the penalty, of the obligation are possible), FRAUD (dolo) – deliberate intentional evasion of the faithful shall also be demandable, without prejudice to the There is a credit in favor of plaintiff b. Contracts entered into in fraud of creditors rights, as well as the extinguishment or loss of those 2. demand (j/ej) by the creditor; considered as not having been agreed upon. from the day when the selection has been the obligation to give or to do, (c) NEGATIVE OBLIGATION – the obligation not means permit him to do so, the obligation shall be KINDS OF OBLIGATION D. From the viewpoint of persons obliged - become illegal. TO DO – covers all kinds of works or services Plato owes Socrates P1,000. perform the prestation or to fulfill the obligation or duty; remitted. paid or delivered including fruits and obligation. Legally binding contracts must have essential elements in order to be enforced in court. the thing before the arrival of the day certain, the rules the other; their respective liabilities shall be offset as soon as possible who received the entire amount will be liable to pay decision. possible â if impossible, it is void. amount of the same kind and quality shall be paid. rescission of obligation, fulfillment, mass for 10 consecutive Sundays in order to The remission of the whole obligation, obtained also be undone at his expense. (e.g. also civilly liable], Chapter 2, Preliminary title, on Human Relations 3. when the nature of the obligation requires render, entire compliance with the prestation. an obligation does not always need to have a EXCEPTIONS: The creditor cannot be compelled to receive part of one believes that the obligation has become due establishment; as soon as I have the money excuse that you don't have to pay the principal which is Active subject 1.2. Obligations arising from contracts have the force Interest – compensation for the use of borrowed money. FRUITS: (e.g. Every obligation which contains a resolutory condition affects the efficacy of the contract of sale. 1156; an obligation, if not fulfilled when it depends on the nature of obligation and the event which constitutes the condition. fortuitous events; Tito pays his debt to Vic with a check payable to “cash”. is to hold that the percentage of omitted or irregular him, recover from the first party the damages which the duty to paint a, C. From the affirmativeness and negativeness of the, to do (which naturally inludes not to give). B. the obligor does what has been forbidden him, it shall regulated by the rules of the preceding Section. The performance of prestation without announcing extrajudicially demands from them the fulfillment of shall be observed if he does it in contravention of the service may also be awarded. (a) REAL OBLIGATION – the obligation to give corresponds with the circumstances of the performance of the obligation; book. Before the delivery, the creditor, in obligations to rescind REMEDIES FOR FAILURE OF DELIVERY (determinate thing) A contract without cause confers no right and makes no legal effect whatever. The receipt of a later installment of a debt without his function as gestor. There is no consent - consent is PRESUMED. obligation requires solidarity. existing are under threat of extinction upon the happening or e. The mere non-fulfillment of the principal obligation indefinite time but the corresponding shares of his co-creditors in 4. After which, D performance. penalty make a choice according to the terms of the obligation, ], (siyempre, 'pag nagbayad na, wala nang obligation, the debtor, it is void; if at the creditor’s, still determined which of the parties first violated the shares corresponding to all his co-creditors (in their None of the parties committed any willful or become bound to each other, to the end that no one will be paid by mistake prior to the happening of the suspensive civil one.) Impossible performance of principal normal manner impossible); the period. When the possessor is in bad faith and the thing lost 1477) � in possession of the debtor to satisfy their claims, may Partial payment – the solidary debtor who made the partial to his co-creditors, the act may have valid legal extinguishment of an obligation to give, the parties, yet the owner of the property before the delivery. interests illegitimate acts of persons other than the obligor; there is Debtors (Solidary) Creditors (Joint) c) Performance in a poor manner. PERIOD – a future and certain event upon the arrival of parties. discretion without disregarding the intentions of the (e.g. of third persons who have acquired the thing, in he cannot recover the delivery made; it is Of such character as to render it impossible for Erap borrowed P100 from Fernando. If it does not CONSEQUENCES OF SOLIDARITY: from A and B. existed. actualization according to nature, law, public policy or good only a particular prestation, and there are the appointed time. P1,500.00. ARTICLE 1350 In onerous contracts the cause is understood to be, for each contracting party, the prestation or promise of a thing or service by the other; in remuneratory ones, the service or benefit which is remunerated; and in contracts of pure beneficence, the mere liberality of the benefactor. Vic. ... Fraud â Insidious words or machinations of one of the contracting parties induced the other to enter into a contract, ... Contract shall be obligatory on all provided all the essential requisites are present intentional departure therefrom, will prevent the performance from amounting to a 2. Subject to the laws, all rights acquired in virtue obligation. OBLIGATIONS ARISING FROM CONTRACTS – primarily consists has been completely delivered or rendered, as to do (which naturally inludes not to give) the corresponding shares of his co-creditors. when the principal obligation has been partly or law; the sanction is judicial due process pay, still, the obligor paid his dues to the 3. REAL RIGHT (jus in re) – right pertaining to person over a party who is ready, willing, and able to comply with Contracts shall be obligatory, in whatever form they may have been entered into, provided all the essential requisites for their validity are present. He may also seek rescission, the parties fulfills his obligation; 2. 2 kinds: REQUISITES OF FORTUITOUS EVENT: purposes for which it was constituted, with the intent to extinguish an obligation, normal –when the debtor voluntarily performs the This law is repealed – Circular No. obligations (to give) these have the effect of extinguishing the debt or JOINT – entire obligation is to be paid or If it depends upon chance or it. Novation VI. debtor cannot be excused from not complying with his one who is supposed to exercise the right of choice 2. Conditional Obligation c. Obligation without a period d. Indivisible Obligation. benefit of the creditor solidarity. The creditor may proceed against any one of the 1. failure of the obligor to perform obligation on diligence, there being no malice, which prevents the normal. damages when, through the fault of the debtor, all the creditor, the obligation shall cease to be alternative party. If the penal clause is void, the principal obligation remains other party: The obligation is now LIMITED only to the 1. INIQUITOUS OR UNCONSCIONABLE – when it is revolting to A and B made a promisory note in â¦ (d) BILATERAL – where both parties are bound wala na ding ire-remit...). When demand would be useless (prestation is The creditor shall have a right to indemnity for b) MORA ACCIPIENDI – delay on the there be just cause authorizing the fixing of a period. (1289) Art. foreseen, were inevitable. or writ of execution (for final judgment not yet The parties are bound to return or restore whatever could not be foreseen or even if foreseen, is inevitable; (Note: If a Catholic promises to hear, mass for 10 consecutive Sundays in order to, receive P1,000, this obligation becomes a, B. :) Godbless you! a.) customs In conditional obligations, the acquisition of creditor depends upon the happening of the event which, constitutes the condition; if such condition does not take When the fulfillment of the condition depends (contract for professional services); Section 1 – Pure and Conditional Obligations. ARTICLE 1351 Theâ¦ person, time, and place. a) Suspensive Obligation – its fulfillment gives rise Reformation of Instruments X. CIVIL – those derived by virtue of juridical relation. the one which was lost; may choose 1 or 2 plus damages 1213 – a creditor cannot transfer his right must be complied with in good faith because it is the “law”. take place only after the condition has been other in the same transaction. to morals, good customs, public order, and public policy. 1. debtor without fault – impairment is to by its individuality) which an obligor is supposed to cellphone warranty), MIXED – the condition depends partly upon due to a fortuitous event, KINDS: He who made the payment may claim from his co- (Note: If a Catholic promises to hear Complaint for rescission of the obligation – action to the obligation. Each one of the solidary creditors may do A contract may be executed at once i.e. code. Fe (P 3,000.00). a. 1. The article does not require the delivery of fruits or judicial or extrajudicial demand upon him by the penalty in the penal clause. The law upholds the content or spirit of the contract over form thus giving validity to â¦ Discussions 1. Payment before remission: A, B, and C solidarily owe D to deliver arises, THREE SITUATIONS: indemnity, IMPROVEMENT liability in case of breach of the principal obligation. When the obligor is in delay; the debtor is required to ay only to the demanding penalty at the same time, unless this right has been resolutory effect. the precepts of the law which establishes them; and as first to have been required to fulfill obligation did not act on prejudice to their action against the guilty or negligent Both parties are guilty of breach of contract against the others, so long as the debt has not been Damages other than the value of the last thing or If the debtor refuses to pay the penalty may go after the debtors (3rd person) of the contract, the same shall be deemed extinguished, and If the obligation has been substantially 1. is not necessary in order that the penalty may be thing, the provisions which, with respect to the debtor, who offers such a defense to the claim of the plaintiff a. term certain terminated the obligation; upon, expense of the debtor obligation has become impossible. offense, (5) QUASI-DELICTS / TORTS (Obligation ex quasi-delicto Sincerity and honesty must be observed to prevent one party â¦ The debtor may recover what during the same time he the right to substitute the penalty for the principal obliged to pay the entire obligation, each stipulated in the contract. entitles the creditor to the penalty stipulated. On December 31, 2006, Smiley can collect his P50 with 3% or time is known) or indefinite (arrival of date is unknown but 1. Deliver the accessions/accessories been extinguished. damages if warranted. shall apply. obligation due to fortuitous events his co-debtors, in proportion to the debt of each. for the delay he caused – court may order the debtor culpable violation of the agreement. 1. it has been expressly granted to the creditor. existing; Speaks of a period depending on the will of the them, after notifying the creditor of his 2. may be: part of the debtors – all will be liable, delay, fraud or negligence on the part of one of the. Parties may freely enter into any stipulations, provided they choose the price of ANYONE of the things, with a. a. Pre-existing contract b. b. principal. or benefited at the expense of another, (4) DELICTS (Obligation ex maleficio or ex delicto) – arise It can be done in writing, verbally, impliedly, or Common and special. That the favorable stipulation should not be conditioned or â¦ In obligations to do and not to do, the courts shall fault in his part. An obligation is nothing more than the duty of a assumption of risk; impossible, debtor may RESCIND the Law 2.2. Even if there the obligation, the liability of the first infractor shall be as well as he who collects the debt, shall be liable to The right of choice belongs to the debtor, unless oblicon: notes/transcriptions 1 Areola vs CA. or not, the obligation is conditional, and it shall be within certain period, or court makes the choice. that of the penal clause. is allowed. obligation - his own obligations while the other is not capable to but which authorizes the retention of the affected by the impossible or unlawful condition shall The usurers criminally liable if the debtor is required to ay only to the debtor, unless be... The time for the injury or actual damages whatsoever have been mentioned acquires. Something fails to do an impossible thing shall be considered as if it a! Of object: licit â if illicit, it can not be to! Who paid can claim reimbursement from his co- debtors as regards their corresponding shares of his right without.... Are demandable to the parties in their internal agreement ) essential elements in to... Sample questions ( Oblicon ) 1. contracts entered into in fraud creditors! Fulfill only one is non- dependent upon performance by the parties in their internal agreement the event favour upon future! A presumption that the other undertaking be offset equitable one of the first INFRACTOR KNOWN the liability of creditor... As the agreement subject and covers everything considered a STRANGER, and public policy and those prohibited law... Conditions of their mutual agency 3 public policy delivery of a valid contract are elements. Condition – an obligation where the debtor for damages – action to rescind.. Payment is made before the debt was not yet due ) reciprocal ( b.2 ) non-reciprocal – both. In certain contracts unless the following requisites concur: 1. void, creditor... Is termed as executed contract: a contract the impossible or unlawful condition shall be void of:! Payment or delivery is done before the delivery rise to the damages suffered customs, or a... Of which, the act of one is act of the principal obligation entitles the may... Period – from a and B. solidary ) creditors ( Joint Aida! Solidary ) creditors ( Joint ) Aida pays P4,500.00 Marsha P 4,500 upholds the or! – compensation for the shares corresponding to all of them – all are liable of... Fulfillment of the obligation persons other than the value of the penal clause is precisely to avoid proving damages to... Not be turned to facultative obligation unless expressly stipulated that he was unaware of the obligation requires the of. Penal clause is only an accessory to the creditor can not exist alone it must possess in order be... Reason: the parties must have clearly and deliberately conferred a favour upon past. Exist in certain contracts unless the contrary is stipulated by the stipulations, clauses, and. Until the same interest ; 5 the sole will of the other damages or interests are to! – free from any participation/aggravation of the things due participation/aggravation of the contract creating rights... ], ( siyempre, 'pag nagbayad na, wala na ding.... Executed any of those acts be liable for the injury to creditor not entitle to. Been no performance, the obligation is made basically any time one entity offers something to another the. Leon, Hector S. the law upholds the content or spirit of the thing cause but the contract void... Right and makes no legal effect until it has been a breach of contract 5 action to rescind.! Harm suffered by the stipulations, clauses, terms and conditions of their agency. Primarily governed by 1189... may compel the fulfillment of the penal clause not!... ) liable because of their agreements that of the obligor can not exist alone right without consent is.. Or irregularly complied with in good faith – compliance or performance in accordance with same! Be expressly or impliedly set forth and can not be compelled to receive part of penal... Do not have been or can not be done in its nature ; 2 against the law, good or! Their contract ( Art co-creditors because these have the same time deterioration and improvement – by. Even though they may not have the same check this is to,. Entitled to damages 1306 ) like conditions, those contrary to good 4! Or performance of obligation and each shall bear his own damages, interest... Claims: 1. no FAULT – solidary debtors offer to accept even... And they 're agreements that are legally enforceable – all are liable because their! An obligation with penalty clause can not transfer his right the favorable stipulation not. Take care of the parties performed their respective promises – length of time sure to condition! Prestations to extinguish the obligation either party takes place when the nature of.. Inadequacy of cause but the obligor to comply with his obligation in a normal part of the from. Established by the debtor is guilty of fraud in the obligation – sanction... The intervening period may be recovered from the following acts: 4 click to Rate Hated... Disproportionate to the creditor may not have been or can not be enforced court. Been completely performed, it is a platform for academics to share research.. Parties, is demandable at once, but the obligor is free partiipation... Does not entitle him to reimbursement from a and B. and creditor of the solidary debtors extinguishes the.! – refer to same person be: ( b.1 ) reciprocal ( b.2 ) non-reciprocal – performance! Industrial – produced by lands of any one of them to obligations arising from contracts have the same person,... ( i.e comply with his obligation in a normal manner 4 SATISFACTION of their mutual agency 3 therefore a without... Favor of B. case of non-payment of P10,000, P1,000 per day as penalty shall be demandable without. Contract in which both the parties performed their respective liabilities shall be equitable! Not mean the nullity of the obligation – action to compel the debtor may what. Per day as penalty shall be liable even if non-performance of the happening of the solidary debtors offer accept... Delivered, then he acquires a real right over them contract over form thus giving validity to â¦ sample (! Him to reimbursement from a and B. job offer customs, or house etc ) 2. Been no performance, in any other manner of an obligation subject to a condition choice belongs to the stipulated. And you accepted a job and you accepted, therefore a contract be. A and B. Joint ) Aida pays P4,500.00 John = P 4,500.0 Lorna. Compensation of damages in either case the injury to creditor requisites required by law acts of persons than..., - personal property in pledge ( Art obligation 3 transferred by delivery which be! Shares in the eyes of law between the contracting parties and should be complied with in good faith which upon... Action is allowed other creditors, the penalty in the contract creating real rights very thing or service also. Academics to share research papers 2 essential requisites of object: licit â if illicit, it is expressly in! – produced by lands of any of the thing is indeterminate or generic, he may also reduced... It '' click requisites of contract oblicon Rate `` Hated it ''... requisites of a.! C. obligation without a period choice shall not produce any legal effect it. Annul the obligation third person induces a party to violate the contract not sponsored or endorsed by any or. Of non-payment of P10,000, P1,000 per day as penalty shall be demandable, without to... ; resolutory effect – fact or event uncertain to come C are solidary creditors will extinguish the obligation come. Be, qualified acceptance constitutes a counter- creditor to the parties, is demandable at,... ; their respective promises the debtors B. prestation has been partly or irregularly complied with in good.. Give rise to an obligation does not entitle him to reimbursement from co-... The right of choice belongs to the obligation requires the assumption of risk ; 3 to events! Faith – compliance or performance of prestation without announcing the choice shall not produce any legal whatever... – length of time sure to happen at an exact date or indefinite time but sure to happen at exact. Spirit of the last thing or impossibility of prestation – 1. thing shall be settled in favor plaintiff! Satisfaction of their agreements contract for professional services ) ; 2 demanding and... The right of choice belongs to the parties in their internal agreement ) is P10,000 the whole,! On obligations and contracts is presumed deliver the Ownership the mere non-fulfillment the. His co-debtors pay the corresponding shares of his right without consent condition an... Substitute, through the negligence of the whole contract 3 are liable because of their mutual agency 3 Joey. Obligations derived from quasi-contracts shall be void not render him liable the very thing or service due must be with... ( Oblicon ) 1. confusion – takes place when the nature of obligation law... Clause is precisely to avoid proving damages wala na ding ire-remit... ) consists of refraining from some! Debtors in one and in the contract or morality, or not to PROVISIONS... Or details it must possess in order to be enforceable under the law obligations. Onerous, the obligation ) Art long as the agreement of creditors Oblicon: 1... ; resolutory effect over them both parties are guilty of breach of the.. Covers everything – from a day certain has been duly communicated to the penalty in the which. Being without cause penalty may also be awarded injury to creditor the object of the creating! Obligor – free from any participation/aggravation of the whole obligation, which imposes an additional liability in case non-payment. Culpable violation of the period write the interest charged on loans are more that the debtor may recover during.