Professional Documents
Culture Documents
of
Damages awarded to
injured party
CRIMES
Public right
Criminal intent
Cannot
be
compromised
Beyond
reasonable
doubt
No crime unless law is
penalizing it
Some violations will not
make a person liable
TO GIVE
Obligatio
n
of
debtor
SPECIFIC
1. to deliver the
thing itself
2. to preserve
the thing with
due care
3. To deliver its
accessions an
GENERIC
1. To deliver the
thing which is
neither of superior
nor of inferior
quality
2. To pay damages
in case of breach
Rights of
creditor
accessories
4. To deliver the
fruits of the
thing
5. To pay
damages in case
of breach of the
obligation
1. To compel
delivery
2. Entitlement to
fruits
3. To demand for
damages
of the obligation
1. Ask to be
complied at the
expense of the
debtor
2. Ask payment
for damages
TO DO
Obligati
1. To do it himself
on
of 2. To shoulder the expense if done by
debtor
3rd person
3. To undone what is poorly done
4. To pay for damages
Rights
1. Demand performance by debtor or
of
3rd party
creditor
2. Demand for damages
*in case of contravention of contract:
1. May ask that it be undone at
debtors expense
2. Demand for damages
*No action for compliance because that would be
involuntary servitude which is prohibited by the
constitution. (contract)
NOT TO DO
Obligati
1. Not to do what should not be done
on
of 2. To should the cost to undo what
debtor
should not have been done
3. To pay damages
Rights
*if debtor done what is forbidden:
of
debtor does what is forbidden
creditor
1. may ask that it be undone at
debtor's expense
2. demand damages for breach of
contract
DILIGENCE:
a) Provision
of
law:
EXTRAORDINARY
DILIGENCE
b) Stipulation: DILIGENCE OF A GOOD
FATHER OF A FAMILY
NOTE: Rule on Standard of Care
That which the law requires
That stipulated by the parties
In the absence of the two, diligence of a
good father of a family
*Debtor is not liable if his failure to deliver the
thing is due to fortuitous events or force majeure
without negligence or fault in his part.
ACCESIONS & ACCESSORIES:
ACCESSIONS - includes everything which is
produced by a thing, or which is incorporated or
attached thereto, either naturally or artificially.
FRUITS:
- creditor has a right to the fruits of the thing
from the
time the obligation to deliver
arises.
*GR: From the time of the perfection of the
contract (i.e. meeting of the minds between the
parties)
Conditional from the moment the condition
happens
With a term/period upon the expiration of the
term/period
Simple from the perfection of the contract
Kinds of Fruits:
a. Natural - w/o human intervention
b. Industrial - through cultivation / human labor
c. Civil - result of civilization / arising at juridical
relation
PERSONAL RIGHT (jus ad rem) - before the
delivery of the fruits; against a definite person
REAL RIGHT (jus in re)- after the delivery of the
fruits: against the whole world
BREACH OF OBLIGATION
Voluntary debtor in the performance of the
obligation is guilty of:
fraud (Dolo )
negligence (culpa)
delay (mora)
contravention of the tenor of the
obligation
NOTE: debtor is liable for damages
Involuntary debtor is unable to comply with his
obligation due to fortuitous event/s
NOTE: debtor is not liable for damages
1. DELAY, DEFAULT (MORA)
- delay or nonfulfillment of an obligation with
respect to time
Ordinary Delay failure to perform an obligation
on time
Legal Delay failure to perform an obligation on
time which failure constitutes a breach of the
obligation
Requisites of delay
1. Obligation must be due, demandable and
liquidated
2. Debtor fails to perform his positive obligation
on the date agreed upon
3. A demand (not merely a reminder or notice),
*GR:
Fulfillment
of
parties
should
be
simultaneous EXCEPTION: Contrary stipulation
(e.g. installment plans)
Kinds of mora
a. Mora Solvendi - debtor
i.
EX RE referring to obligations to
give
ii. EX
PERSONA
referring
to
obligations to do
Express
Requisites:
1. Prestation
is
demandable
and
already
liquidated
2. That the debtor delays performance
3. That the creditor requires or demands the
performance extrajudicially or judicially
Effects:
1. debtor is liable for the damages
2. debtor is liable even if the loss is due to
fortuitous event
3. debtor shall bear the risk of loss (specific
thing)
*No delay/default
1. Negative obligation
2. Natural obligation
*GR: No demand, No delay
Exception: When demand is not required
1. Stipulation - without further notice clause
2. Law
3. Time / period - controlling motive
4. Demand would be useless - performance has
become impossible:
a. Caused by some act or fault of the debtor
b. Impossibility caused by fortuitous event
but
debtor bound himself liable in cases of
such
events
b. Mora Accipiendi - creditor
Requisites:
1. Offer of performance by the debtor
2. Offer must be to comply with the prestation
as it should be performed
3. Creditor refuses the performance without
just cause
Effects:
1. Responsibility of debtor is limited to fraud
and gross negligence.
2. creditor bears risk of loss
3. creditor bears the expenses for the
preservation
4. If obligation bears interest, debtor does not
have to pay from time of delay.
5. Creditor liable for damages.
6. Debtor may relieve himself of obligation by
consigning the thing
c. Compensatio Morae - both parties
2. FRAUD (DOLO)
- voluntary execution of a wrongful act, or a
willful omission, knowing and intending the
effects which naturally and necessarily arise from
such act or omission.
DOLO CAUSANTE
Before or at the time of
the
perfection
of
contract
DOLO INCIDENTE
After the perfection of
contract
(performance) MOM - F
(consent) F - MOM
Vitiation of contract
(voidable)
No vitiation of contract
Annulment / damages
Serious
Cause
damages
Not serious
Not the cause
Culpa contractual
Contractual
relationship
Incident
in
the
performance
of
an
obligation
Omission
Breach of contract
Negligence must be Proof of contract and
proved
the breach is sufficient
to warrant recovery
*respondiat superior (master-servant rule) negligence of the servant is the negligence of the
master
Negligence
No intention
Liability
can
be
mitigated
Waiver
for
future
negligence is valid
fraud
With intention
Liability
cannot
be
mitigated
Waiver for future fraud
is void
4. CONTRAVENTION OF TENOR
- any illicit act which impairs the strict and
faithful fulfillment of the obligation or every kind
of defective performance
DAMAGES:
Kinds of Damages:
1. Moral - moral and physical anguish
2. Exemplary - corrective or set as an example
3. Nominal - to vindicate a right
4. Temperate - exact amount cannot be
determined
5. Actual - actual losses and unrealized profit
6. Liquidated - predetermined beforehand by
agreement
DAMAGE - harm done and what may be
recovered
INJURY - wrongful act or unlawful act
FORTUITOUS EVENT (CASO FORTUITO)
- events which cannot be foreseen or which
though foreseeable are inevitable.
payment in money
- stipulated interest + 12% of (principal debt
+
stipulated interest) - date judicial
demand
- no stipulation: 12% - date judicial or
extrajudicial
demand
Yes
- liquidated - 6% - judicial or extrajudicial demand
- unliquidated - 6% - from the date of courts
judgment
No
Payment Presumptions in payment of
interests and installments
TRANSMISSIBILITY OF RIGHTS
- Subject to the laws, all rights acquired in
virtue of an obligation are transmissible, if there
has been no stipulation to the contrary.
EXCEPTIONS:
1. Not transmissible by their very nature
2. Stipulation by parties that it
transmissible
3. Not transmissible by law
is
KINDS OF OBLIGATION
1. PURE AND CONDITIONAL OBLIGATION
Pure obligation - w/o condition/term
not
- demandable at once:
Pure
Resolutory condition
Conditional Obligation - there is a condition
imposed
Condition - future or uncertain / past but
unknown
- must be possible of performance
Period - future and certain event
*if PDO will pay when his means permit him to do
so.
*to be demandable, COA should go to court and
let the court fixed the date for payment
Kinds of condition
1. As to effect:
a) Suspensive
suspends
the
effectiveness of the obligation until the
condition is fulfilled
b) Resolutory - extinguishes the obligation
upon happening of the condition
*in every resolutory condition there is a
suspensive condition
2. As to cause or origin:
a) Potestative - depends on the sole will
of one of the parties. (Facultative
condition)
P - S - PDO = VOID
P - R - PDO = VALID
P - R/S - COA = VALID
b)
Casual - depends exclusively upon
chance and/ or
will of the 3rd person
c) Mixed - depends upon the will of one of
the parties
and partly upon chance or will of
the 3rd party
a. pre-existing obligation
b. if obligation is divisible
c. in simple or remuneratory donations
d. testamentary dispositions
e. conditions not to do an impossible thing
4. As to mode:
a) Positive condition (suspensive) - 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.
b) Negative condition (suspensive) 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.
* the condition shall be deemed fulfilled when the
debtor
voluntarily prevents its fulfillment
(CONSTRUCTIVE FULFILLMENT)
*rules
on
loss,
deterioration,
&
improvement
- After obligation is constituted but before the
fulfillment of condition (suspensive condition)
- to deliver specific things
w/o debtors
fault
Debtors
fault
Loss
obligation
is
extinguish
ed
impairmen
t borne by
creditor
*loss - perishes,
disappears
Deterioration
pay damages
rescission
plus
damages
or
fulfillment
plus
damages
goes out of commerce,
3. As to possibility:
a) Impossible condition - those contrary
to good customs or public policy and
those prohibited by law
* 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.
Improvement
By nature or by
time
At the expense of
the debtor
Effects:
deterioration,
pure
and
&
conditional
Manresa: immaterial
*rules on loss
Only 1
remain
pure/simpl
e
obligation
pure/simpl
e
obligation
Only 1
remain
pure/simpl
e
obligation
pure/simpl
e
obligation
*if he
chooses
any of the
two,
debtor is
liable plus
damages
FACULTATIVE
OBLIGATION
only
one
prestation has been agreed upon but another
may be given in substitution
*If it is impossible to give the principal, the
substitute does not have to be given; if it is
impossible to give the substitute, the principal
must still be given.
The right of choice: only to the debtor
*rules on loss
Before substitution:
if substitute is loss (w/ or w/o PDOs fault) to deliver the substitute is extinguished
After sustitution:
To ensure performance
EXTINGUISHMENT OF OBLIGATIONS
PAYMENT OR PERFORMANCE
- delivery of money and performance, in any
other manner of the obligation
To do - by performance
the
PAYMENT BY
CESSION
Transfer
of
the
possession
and
administration only
Only extinguishes the
credits to the extent of
the amount realized
from the properties
assigned,
unless
otherwise agreed upon
involves
ALL
the
property of the debtor
There are various,
plurality of creditors
a) obligation remains
b) Co-debtors, guarantors, and sureties are
released
c) The creditor loses the preference over the
thing
Loss:
- the the perishes
- goes out of commerce
- Disappears in such a way that its existence
is
unknown or it cannot be recovered
Presumption of loss:
- loss was due to debtors fault, except in
cases of natural calamities
Requisites:
1. Loss or destroyed without the fault of the
debtor
2. Before the debtor incurs in delay
3. After the obligation is constituted
Effects:
A. To give:
1. Specific things:
- obligation is extinguished without fault of
debtor AND before he incurs in delay
Exception:
- fault of the debtor
- liable for fortuitous event, by law or
stipulation or it requires the assumption of
risk
2. Generic things
- obligation is extinguished
Exception: delimited generic things
3. Partial loss
- the loss is material and the remaining
portion of the object is immaterial
B. To do:
- releases debtor from obligation if prestations
has become legally or physically impossible
- releases debtor if performance has become so
difficult to be so manifestly beyond the
contemplation of the parties
- Impossibility due to fortuitous events does not
extinguish obligation if:
By law
By stipulation
Nature
of
the
obligation
requires
assumption of risk
CONDONATION OR REMISSION
- gratuitous abandonment by the creditor of
his rights
Requisites:
1. Agreement
2. Capacitated parties
3. Subject matter
4. Cause and consideration is generosity
5. Obligation is demandable at the
remission is made
6. Must not be inofficious
time
Kinds of condonation:
1. As to effect/extent:
a) Total
b) Partial
2. Date of effectivity:
a) Intervivos - lifetime
b) Mortis causa - after death
3. As to from:
a) Implied or tacit
b) Express or formal
Presumptions of condonation:
1. Voluntary delivery of private documents by the
creditor implies the renunciation of the action
2. private document in which the debt appears is
in the POSSESSION of the debtor, the creditor
delivered it voluntarily
3. accessory obligations of pledge is remitted if
found in the possession of the debtor, or a third
person who owns the thing.
Effects:
1. Extinguishes totally or partially
2. In case of joint or solidary obligations affects
the share corresponding to the debtor in whose
benefit the remission was given
CONFUSION OR MERGER
- characterof debtor and creditor is merged
in same person with respect to same obligation
Requisites:
1. It must take place between principal debtor
and principal creditor only
2. Merger must be clear and definite
3. The obligation are the same and identical
one obligation only
4. Revocable, if reason for confusion ceases,the
obligation is revived
Effects:
1. Obligation is extinguished
2. In case of:
a) Joint obligations - obligation is not
extinguished EXCEPT as regards the
share corresponding to the creditor or
debtor in whom the two characters
concur.
b) Solidary obligations - obligation is
extinguished
NOVATION
- creation of new obligation which substitute
the old one
Kinds of compensation:
1. As to their effect:
a) Total - same amount
Requisites:
1. Previous valid obligation
2. Intent to extinguish old obligation
3. Capacity and consent of parties to the new
obligation
4. Valid new obligation
COMPENSATION
- extinguishment to the concurrent amount
of the debts of two persons who, in their own
rights are debtors and creditors of each other
Effects:
1. extinguishment of the original obligation and
creation of a new one
2. When accessory obligation may subsist only
insofar as they may benefit third person who did
not give the consent to the novation
Effect of the Status of the Original / the
New Obligation
1. Nullity of the original obligation new
obligation is VOID
2. Voidability of the original obligation
- new obligation is VALID if ratified before
novation
- new obligation is VALID even if not
ratified, but voidable at the instance of the
debtor
3. Nullity of the new obligation - original
SUBSISTS, UNLESS intends extinguishment of
former in any event
4. Voidability of the new obligation
- new obligation is VALID
- BUT if new obligation is annulled and
set aside, original SUBSISTS
5. Suspensive or resolutory condition of original
obligation
- New is pure
- If intention is merely to suppress the
condition, no novation
- If intention is extinguish the original
obligation itself by the creation of a new
obligation, the novation does not arise
except from fulfillment of the condition from
original obligation.
6. Original obligation is pure - New obligation is
conditional
2.
3.
creditor)
Knowledge or consent of the debtor is
not required
Initiative comes from the 3rd person
Kinds of Novation:
1. As to form:
a) Express - declared in an unequivocal
form
b) Implied
both
obligations
are
incompatible w/ each other
CONTRACTS
Contracts - is a meeting of minds between two
perfected
by
conformity to essential formalities
2. As to cause
a) Onerous with valuable consideration
b) Gratuitous no consideration
c) Remunerative prestation is given for
service previously rendered not as
obligation
3. As to importance
a) Principal can stand alone
b) Accessory depends on another
contract for its existence; may not exist
on its own
c) Preparatory not an end by itself; a
means through which future contracts
may be made
4. As to nature
a) Unilateral only one of the parties
b) Bilateral both parties
5. As to name or designation
a) Nominate - w/ a special name
b) Innominate - w/o a name
i.
Do ut des I give that you may give
ii. Do ut facias I give that you may do
iii. Facio ut des I do that you may give
iv. Facio ut facias I do that you may
do
6. As to risk
a) Commutative - equivalent values are
b)
Requirements:
1. Plurality of subject
2. Capacity
3. Intelligence and free will
4. Manifestation of intent of parties
Offer - unilateral proposition made by one party
to another to enter into a contract
1. Must be certain, definite, or specific so that the
liability or right of the parties can be determined.
2. The oferror can fix the time, place and manner
of acceptance
3. Offer made through an agent is accepted from
the time acceptance is communicated to him
4. It becomes ineffective upon the death, civil
interdiction, insanity or solvency of either party
before acceptance is conveyed
5. Business advertisement - not a definite offer
but mere invitation
6. Advertisement for bidders - simply an invitation
Acceptance - an unaccepted offer does not give
rise to a consent; must be absolute
Kinds of acceptance:
Implied - acts
1. Must be absolute
2. Acceptance made by letter or telegram does
not bind the offeror except from the time it came
to his knowledge.
3. May be revoked before reaching the knowledge
of the offeror
4. Period of acceptance:
a) Stated fixed period
b) No stated fixed period
i.
If present - made immediately
ii. If absent - must be made w/in such
time that an answer can be received
Option - may be withdrawn anytime before
acceptance is communicated but not when
supported by a consideration other than
purchase price
*option contract - one giving a person certain
period w/n which to accept the offer
*option money - money paid/promised to be
paid in consideration of the option; included in
the purchase price
Persons who cannot give consent:.
1. Unemancipated minors
2. Insane or demented persons
3. Deaf-mutes who do not know how to write
Rules on contract entered by minor:
*GR: voidable
EXCEPTION:
Requirements:
1. Within the commerce of en
2. Transmissible
3. Licit
4. Possible
5. Determinate
of
persons,
honorary
titles
and
distinctions
b) Public offices
c) Political rights or right of suffrage
d) Public property
e) Sacred or common things
2. Intransmissibe rights
3. Contrary to law, morals, good customs, public
policy
4. Future inheritance, except when authorized by
law
5. Impossible things or services
6. Indeterminable as to their kind
Requisites:
1. It must exist
2. It must be real, that is true
3. It must be licit or lawful
Kinds:
1. Onerous - parties are reciprocally obligated to
each other
2. Remunatory - one where a party gives
something to another because of some service or
benefit given or rendered by the latter
3. Gratuitous - mere liberality of the donor or
benefactor
Motive - the psychological, individual and
personal reason which induces a party to enter a
contract
*GR: motive does not affect the validity of the
contract
CAUSE
Immediate, direct and
proximate reason
Objective and intrinsic
reason
Always known
Always be lawful
MOTIVE
Indirect and remote
reason
Individual and purely
personal reason
May be unknown
May
be
lawful
or
unlawful
Validity
Enforceability
convenience
Kinds:
1. Informal - may be entered in whatever form
as long as there is a consent, object and cause
2. Formal - required by law to be in certain
specified form
Contract of antichresis
Chattel mortgage
parties
are in
pari
delicto
Only
one
party
is
guilty
Party
at
fault
the instrument
cannot
recover
what he has given
by reason of the
contract
PARTY AT FAULT
cannot ask for the
fulfillment of what
has been promised
to him
DEFECTIVE
CONTRACT
AS TO NATURE OF
DEFECT
RESCISSIBLE
CONTRACT
VOIDABLE
CONTRACT
EFFECT
ON
CONTRAC
T
VALID until
rescinded
VALID until
rescinded
VALID until
rescinded
VALID until
rescinded
WHO CAN
ASSAIL?
WHEN TO
ASSAIL?
CURABLE?
HOW?
WHO CAN
CURE?
WHEN TO
CURE?
By ward
By guardian ad
litem of ward
during incapacity
of ward in action
against original
guardian
By absentee
YES
By ratification
(Confirmation by
the ward)
By ward
W/in 4 years
from (re)gaining
capacity
YES
By prescription
By absentee
W/in 4 years
from knowledge
of domicile or
knowledge of
fraudulent
contract
By plaintiffcreditor
By heirs of
creditor
BY creditors of
creditors injured
By other third
parties
prejudiced by the
contract
By party litigant
YES
By prescription
By creditor
W/in 4 years
from knowledge
of fraudulent
contract
YES
By prescription
By party
litigant
W/in 4 years
from knowledge
of fraudulent
contract
Within 4 years
from cessation of
(re)gaining
capacity
Within 4 years
from:
- cessation of
intimidation,
violence, undue
influence
- discovery of
mistake or fraud
At any time one
party attempts to
YES
By ratification By
prescription
By parties
themselves
Within 4 years
from cessation of
(re)gaining
capacity
Within 4 years
from:
- cessation of
intimidation,
violence, undue
influence
- discovery of
mistake or fraud
VALID until
rescinded
VALID until
annulled
by court
action
ASSAILABLE?
HOW?
VALID
but cannot
By owner of
property
YES 1 By
ratification
- Express
- Implied
By ratification
By guardian
in behalf of
an
incapacitate
d party
during
existence of
incapacity
Person in
whose name
CONTRACT
VOID
CONTRACT
authority or in excess of
authority
be
ENFORCED
by a
proper
action in
court
of unenforceability of
contract through
motion to dismiss
complaint on the
ground that contract is
unenforceable
enforce contract
against the other
through a court
action
Contracts covered by
Statute of Frauds and
not complying with
requirement of a written
memo
VALID
but cannot
be
ENFORCED
by a
proper
action in
court
By other party
By his privies
(heirs,
representatives
and assigns)
VALID
but cannot
be
ENFORCED
by a
proper
action in
court
By other party
By his privies
(heirs,
representatives
and assigns)
By guardian
Cause, object or
purpose of contract
contrary to law, good
customs, morals, public
order or public policy
Does not
create
rights and
cannot
impose
obligation
Does not
create
rights and
cannot
impose
obligation
By innocent party
By 3rd persons
whose interest are
directly affected
(If in pari delicto,
neither has an
action against
each other)
By any of the
contracting
parties
By 3rd persons
whose interests
are directly
affected
the contract
was entered
into
By
acknowledgeme
nt
By performance
of oral contract
By failure to
object
seasonably to
presentation of
oral evidence
By acceptance
of benefits
under the
contract
By confirmation
By parties
against
whom the
contract is
being
enforced
By parents
or
guardians
of both
parties
Imprescriptible
Cannot be cured
Both
parties
after
(re)gaining
capacity to
act
--
Imprescriptible
Cannot be cured
--
impossible service
e. Where intention of
parties re: principal
object of contract
cannot be ascertained
Contracts expressly
prohibited by law
Does not
create
rights and
cannot
impose
obligation
By party whose
protection the
prohibition of the
law is designed
By 3rd party
whose interests
are directly
affected
Imprescriptible
Cannot be cured
--
PARTNERSHIP
CONTRACT OF PARTNERSHIP two or more
person bind themselves to contribute money,
property, or industry to a common fund, with
the intention of dividing the profits among
themselves
Characteristics:
1. Consensual perfected by mere consent
2. Nominate has a designated name
3. Preparatory its organization/formation is
followed by other contracts to carry out its
purpose
4. Onerous involves consideration in the form
of contributions by the partner
5. Bilateral/multilateral entered by two or
more person
6. Principal it can stand alone
Elements:
1. valid contract
2. mutual contribution of money, property, or
industry to a common fund
3. intent to engage in lawful business, trade or
profession
4. intention of dividing the profits among
themselves
5. objective must be lawful
6. two or more persons who have the legal
capacity to contract
PARTNERSHIP
Created by Voluntary
agreement of the
parties
Indefinite period of
time
Managed by All
partners / managing
partner
Partners liability
extend Beyond
capital contribution
Can bind his copartners
Death of general
partner dissolves the
partnership
PARTNERSHIP
Created by Voluntary
agreement of the
parties
Purpose is to make
profits
May not sell interest
w/o consent of all
other partners
It has juridical
personality
Indefinite period of
time
CORPORATION
Created by Law
Not more than 50 years
(subject to extension)
Managed by BOD / BOT
Stockholders liability
does Not extend beyond
interest/investment
Cannot bind the
corporation
Death of stockholder
does not dissolve the
corporation
CO-OWNERSHIP
Created by Law /
agreement of the parties
Purpose is common
enjoyment
May sell interest w/o
consent of all other coowners
It has no juridical
personality
May not generally exist
for more than 10 years /
if imposed by the donor,
Death of general
partner dissolves the
partnership
PARTNERSHIP
It has juridical
personality
Partners are agents
for the partnership; a
partner is a principal
for his own
Partner is the owner
w/ his co-partners w/
respect to
partnerships
property
No need for a power
of attorney