Professional Documents
Culture Documents
OBLIGATION
Civil
Elements
Object or Prestatio n
Active Subject
Passive Subject
Distinguish from
Natural Obligation
and
Moral Obligation
Art. 1429 heirs voluntarily pay debt of decedent exceeding value of inheritance; Art. 1430 heirs voluntarily pay legacy although will was declared void;
SOURCES OF OBLIGATION
LAW CONTRACTS
OBLIGATION
QUASICONTRACTS
DELICTS
QUASIDELICTS
Quasi-Contracts
Juridical relation resulting from a lawful, voluntary, & unilateral act, which has for its purpose payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another (2142)
Negotiorum Gestio
(Arts. 2144-2153)
Person (officious manager or gestor) voluntarily takes charge of the agency or management of the business or property of another which was neglected or abandoned without power or authority of the latter; Gestor shall exercise diligence of a good father of a family; liable for fault or negligence; Owner shall pay necessary & useful expenses of gestor & damages he suffered;
Solutio Indebiti
Something is received (a) when there is no right to demand it, & (b) it was unduly delivered through mistake, the obligation to return it arises; Even mistake in the construction or application of a doubtful or difficult question of law; Recovery may be had even though payer doubted whether the debt was due;
Art. 2163 it is presumed that there was a mistake in the payment if something which had never been due or had already been paid was delivered; but, he from whom the return is claimed may prove that the delivery was made out of liberality or for any other just cause. Art. 2160 he who in good faith accepts an undue payment of a thing certain & determinate shall only be responsible for the impairment or loss of the same or its accessories & accessions insofar as he has thereby been benefited. If he has alienated it, he shall return the price or assign the action to collect the sum.
Art. 2167 injured or seriously ill person is treated while in a condition not able to give consent to a contract; he is liable for services rendered by physician or person who aided him, unless rendered out of generosity; Art. 2168 owner bound to compensate person who, without his knowledge, saved his property during fire, flood, storm or other calamities; Art. 2169 person responsible of nuisance is liable for expenses of government in its abatement;
Art. 2175 taxpayer to reimburse person constrained to pay tax; Art. 1236 third person who pays debt is entitled to beneficial reimbursement from debtor; Art. 720 finder of lost thing is entitled to a reward (1/10 of value) from owner;
DELICTS
Governed by penal laws, i.e. RPC; Every person criminally liable for a felony is also civilly liable (Art. 100, RPC); Civil liability includes: a. Restitution b. Reparation of damage caused c. Indemnification of consequential damages (Art. 104, RPC)
Effects of Acquittal
1. If acquittal is because accused could not have committed the act, no civil liability; 2. If acquittal is due to an exempting circumstance, accused may still be liable; 3. If acquittal is on reasonable doubt, accused may still be liable; 4. If an independent civil action is resorted to, civil liability may be proven by preponderance of evidence.
1. Death before arraignment case dismissed without prejudice to any civil action against estate; 2. Death after arraignment & before final judgment - civil liability from delict extinguished, but independent civil action or other action to enforce civil liability from other sources may continue against estate or heirs; 3. Death after final judgment - civil liability enforceable against estate.
In Real Obligation:
Duty of obligor to exercise
diligence
> every person obliged to give something (determinate) is obliged to care for it with the diligence of a good father of a family > other degree of diligence may be fixed by law or stipulation
Kinds of Delivery:
1. Actual 2. Constructive
a. b. c. d. e. Traditio simbolica Traditio longa manu Traditio brevi manu Tradition constitutom possessorium Tradition by execution of legal forms or solemnities
In Personal Obligation
Debtor fails to do - creditor may have obligation performed at debtors expense, plus damages - specific performance cannot be availed of Debtor performs in contravention of tenor of obligation - same remedy as above
Fraud or Dolo
Conscious, deliberate or intentional evasion of fulfillment of obligation Different from fraud in the perfection of a contract Future fraud cannot be waived; any waiver is void Liability cannot be mitigated or reduced by the court
Negligence or Culpa
Omission of that diligence required by the nature of the obligation & corresponds with the attending circumstances Voluntary but not deliberate Liability may be regulated by the court depending on the circumstances Future culpa, provided not gross, may be waived
Garcia vs. Salvador G.R. No. 168512, 20 March 2007 Negligence is the failure to observe for the protection of the interest of another person that degree of care, precaution & vigilance which the circumstances justly demand, whereby such other person suffers injury. Violation of a statutory duty is negligence. Where the law imposes upon a person the duty to do something, his omission or nonperformance will render him liable to whoever may be injured thereby.
For health care providers, the test of the existence of negligence is: Did the health care provider either fail to so something which a reasonably prudent health care provider would have done, or that he or she did something that a reasonably prudent health care provider would not have done; and that the failure or action caused injury to the patient? If yes, then he or she is guilty of negligence.
Kinds of Culpa
Culpa Contractual Culpa Aquiliana Culpa Criminal
(Quasi-delict) (Delict)
Incidental in Direct, substantive performing contract & independent Theres pre-existing No pre-existing obligation obligation Diligence of good Complete defense father not a defense of employers, guardians Preponderance of Preponderance of evidence evidence Negligence is presumed
Direct, substantive & independent No pre-existing obligation Not defense in subsidiary liability of employers Proof beyond reasonable doubt
SJ Corp. vs Evangelista, 545 S 300 > reciprocal obligations are those which arise from the same cause, wherein each party is a debtor & a creditor of the other, such that the performance of one is conditioned upon the simultaneous fulfillment of the other. From the moment one of the parties fulfills his obligation, delay by the other party begins.
Kinds:
Mora Solvendi debtors default *** Demand upon debtor not necessary: a. Law so provides b. Obligation so provides c. Time is of the essence or the controlling factor of the obligation d. Demand is useless as obligor rendered it beyond his power e. Debtor express acknowledges his delay
*** Effects of Debtors Default: a. He is liable for interest or damages; b. He bears the risk of loss; c. He is liable even for fortuitous event
Mora Accipiendi - creditors default Compensatio Morae both parties in default in reciprocal obligation
Art. 1942 liability of bailee in commodatum in case of loss: (1) devotes thing to a different purpose; (2) delays return (3) thing delivered with appraisal of value, unless otherwise stipulated (4) lends or leases thing to third person not member of his household (5) chooses to save his own property instead of thing borrowed
Art. 1979 liability of depositary for loss: (1) so stipulated (2) uses thing without permission (3) delays return (4) allows others to use it
Arts. 2147 & 2148 liability of officious manager: (1) undertakes risky operations which the owner was not accustomed to embark (2) prefers own interest (3) fails to return property after demand (4) assumes management in bad faith (5) manifestly unfit (6) prevents a more competent person from taking the management
2. When expressly declared by stipulation or contract 3. When nature of obligation requires assumption of risk (Doctrine of Created Risk) 4. When obligation is generic
KINDS OF OBLIGATIONS
1. 2. 3. 4. 5. 6. Pure & Conditional Obligations with a period Alternative Joint & Solidary Divisible & Indivisible Obligations with a penal clause
SUSPENSIVE CONDITION
the happening of which will give rise to the acquisition of a right if the condition does not happen, the parties would stand as if the obligation had never existed
DETERIORATION a. without debtors fault, impairment is borne by creditor; b. with debtors fault, creditor may choose between: - rescission plus damages, or - fulfillment plus damages
IMPROVEMENT a. by nature or by time, inure to the benefit of creditor; b. at the expense of the debtor - he has no right to be reimbursed or indemnified; - not to alter form & substance - limited right of removal - may exercise right of usufructuary to use & the fruits.
RESOLUTORY CONDITION
obligation is demandable at once, but rights already acquired are lost when condition is fulfilled;
Mutual restitution
Including fruits & interests after deducting expenses made for their production, gathering & preservation
Same rule as in suspensive condition in case of loss, deterioration or improvement, the debtor being the party obliged to return
Potestative Condition
- fulfillment of condition depends on sole will of one of the parties
potestative on the part of the debtor
a. suspensive condition & obligation void b. resolutory condition & obligation valid potestative on the part of the creditor
NOTE: if debtor binds himself to pay when his means permit him to do so - deemed obligation with a period
Casual condition
fulfillment of condition depends upon chance or upon the will of a third person
Mixed condition
Fulfillment of condition depends upon will of debtor & upon chance or will of a third person
Positive Condition
Condition that some event will happen at a determinate time Obligation extinguished if:
a. Time expires & condition did not happen b. It becomes indubitable that the event will not take place
Negative Condition
Condition that some event will not happen at a determinate time Obligation effective if:
a. It becomes evident that the even cannot occur b. Time expires & event did not take place
Right to Rescind
1. implied/presumed in reciprocal obligations & need not therefore be expressly provided
Reciprocal obligation parties are reciprocally obliged to do or give something; cause must be identical & obligation must arise simultaneously; the obligation or promise of each party is the cause or consideration for the obligation or promise of the other.
3. can be demanded only by the party ready, willing & able to comply with his obligation, & the other is not 4. needs judicial approval in certain cases
if there was delivery & not returned voluntarily, judicial action is necessary; no need if stipulated upon in case of nonfulfillment by the other
5. not absolute
a. trivial or slight causes not sufficient to cause rescission; b. court wont decree rescission if it can fix period to comply; c. no rescission if property is already in the possession of innocent third person.
Definite or Indefinite Suspensive (ex die) or Resolutory (ex diem) Legal or Conventional or Judicial
b) Obligation does not fix a period, but it can be inferred that a period was intended c) Court denies rescission as it finds it proper to fix a period NOTE: once period is fixed by court, it cannot be changed.
c. When guaranties or securities are impaired due to his own acts or they disappear due to fortuitous event, unless he immediately gives new ones equally satisfactory d. He violates any undertaking in consideration of which the creditor agreed to the period e. He attempts to abscond
Effects of Payment/Delivery Before Period Arrives Payment by mistake > recovery may be done, plus fruits & interests
No mistake > no recovery because period will definitely come & obligation will have to be fulfilled
NOTE: In case of loss, deterioration or improvement before arrival of period, same rules as provided in Art. 1189.
Alternative Obligations
An obligation where out of two or more prestations, only one is due Creditor cannot be compelled to receive part of one & part of another undertaking Right of choice, as a rule, belongs to the debtor, but he cannot choose those which are impossible, or illegal, or not object of the obligation
Choice has no effect except from time of notice to the creditor > obligation becomes simple once choice is made & communicated > notice is not to secure creditors consent but to inform him of choice
When Right of Choice Belongs to Creditor > must be expressly stipulated > once creditor makes & communicates his choice, obligation ceases to be alternative & becomes simple
Effect of Loss Before Creditor Makes Choice: Loss due to fortuitous event
> debtor to deliver that chosen by creditor from among those remaining, or that which remains if only one
Facultative Obligation
> only one prestation is involved, but obligor may render another in substitution; > in case of loss or deterioration of substitute due to debtors negligence or fault, he is Not liable if no substitution made Liable once substitution is made & communicated
Art. 1824. Liability of all partners with the partnership for everything chargeable to the partnership under Articles 1822 & 1823. *** loss or injury due to wrongful act or omission of any partner in the ordinary course of business or with authority of copartners; *** misapplication by partner of money or property received by him while acting within scope of apparent authority; *** misapplication by any partner of money or property received by partnership in the course of its business
Art. 1911. When agent exceeds his authority and principal allows him to act as though he had full powers. Art. 1915. For all consequences of the agency when two or more principals appoint an agent for a common transaction or undertaking. Art. 1945. Liability of two or more bailees to whom a thing is loaned in the same contract.
Art. 2146. Liability of two or more officious managers, unless management was assumed to save thing or business from imminent damage Art. 2157. Liability of two or more payees in solutio indebiti. Art. 2194. Liability of two or more persons in quasi-delict. Art. 110 (RPC). Liability of principals, accomplices, & accessories, each within their respective class for their quotas
e. Demand upon a debtor is not demand upon the others f. Judicial action against a debtor is not action against all g. Defenses of one debtor are not necessarily available to the others
2.
3.
4.
3. Remission of obligation
> other creditors to proceed against creditor who made the remission > no effect if made after obligation was paid > debtor who obtains the remission not entitled to reimbursement from others.
Debtor cannot choose to pay penalty instead of performing principal obligation, unless such right is expressly reserved to him; Creditor cannot demand fulfillment of obligation and satisfaction of penalty at the same time, unless > such right is clearly granted to him; > obligation is monetary with penalty; If creditor chooses fulfillment but becomes impossible without his fault, penalty may be enforced
substantial performance in good faith is considered as strict & complete fulfillment, without prejudice to the damages that the creditor may have suffered; obligation deemed fully complied with if creditor accepts performance without protest or objection despite knowing its incompleteness or irregularity
Monetary Obligation
delivery of amount in full currency stipulated upon, and if not possible, in Philippine legal tender (1249)
** R.A. 8183 (11 June 1996) all monetary obligations shall be settled in the Philippine currency which is the legal tender in the Philippines. However, the parties may agree that the obligation or transaction shall be settled in any other currency at the time of payment.
in case of extraordinary inflation or deflation - basis of payment shall be the value of the currency at the time the obligation was established, unless there is contrary agreement (1250) - inflation is the sharp increase of money or credit or both without a corresponding increase in business transaction resulting in substantial & continuing rise in the general price level; - effects of extraordinary inflation are applicable only when there is an official declaration by competent authorities.
Equitable PCI Bank v Ng Sheung Ngor, 541 S 223 Extraordinary inflation exists when there is an unusual decrease in the purchasing power of currency (that is, beyond the common fluctuation in the value of currency) & such decrease could not be reasonably foreseen or was manifestly beyond contemplation of the parties at the time of the obligation. Extraordinary deflation, on the other hand, involves an inverse situation.
Dation in payment, datio in solutum, or adjudicacion en pago > payment of monetary debt through property > governed by law on sales Payment by cession > debtor transfers all his property not subject of execution to creditors > property to be sold and proceeds use to pay obligation > Requisites: a. more than one creditor b. complete or partial insolvency c. acceptance / consent of all creditors
Real Obligation
delivery of thing/s contemplated debtor cannot compel creditor to receive different one, even if of same value or more valuable if object is generic > the purpose & other circumstances of the obligation shall be taken into consideration; > creditor cannot demand thing of superior quality > debtor cannot deliver thing of inferior quality
Personal Obligation
doing or performing service or undertaking contemplated; another act or service cannot be performed as substitute against the will of the creditor
Negative Obligation
by refraining from doing the action contemplated
Debtor is released if payment done in good faith to person in possession of credit Payment after debtor was judicially ordered to retain debt is not valid
Application of Payment
> designation of the debt to which should be applied a payment made by the debtor who owes several debts of the same kind in favor of the same creditor a. two or more debts of same kind b. same creditor c. all debts due d. payment not enough to extinguish all debts
Limitation of right a. contrary stipulation b. cannot choose principal ahead of interest If debtor does not specify & creditor issues receipt in which application of payment is made, the former cannot complain unless there is cause for invalidating the contract. If no application of payment
apply to most onerous same nature & burden, apply proportionately
Tender of payment
monetary legal tender real obligation subject matter complete
II.
III. CONDONATION OR REMISSION > act of liberality by virtue of which the creditor, without receiving any price or equivalent, renounces the enforcement of the obligation.
Obligation due & demandable Gratuitous Acceptance by debtor Not inofficious
Express must comply with forms of donation Implied - voluntary delivery by creditor of document evidencing credit
If heirs of creditor claim that it should be nullified for being inofficious, debtor may prove that delivery was made in virtue of payment; When debtor is in possession of private document of debt, it is presumed to have been delivered voluntarily by creditor; When debtor is in possession of thing pledged, the accessory obligation of pledge is presumed condoned.
IV. CONFUSION OR MERGER > characters of creditor and debtor are merged in the same person > meeting in one person of the qualities of creditor & debtor with respect to the same obligation
Should take place between the principal creditor & debtor Clear & definite Obligation involved is one & same obligation
V. COMPENSATION > two persons are mutually & reciprocally creditors & debtors to each other.
Total or partial Voluntary even when debts are not due Judicial must be pleaded; effective only by court order Legal
1. Parties are bound principally as creditors & debtors of each other; 2. Both debts are monetary, or if things, they are fungible & of same kind & quality 3. Debts are due 4. Debts are liquidated & demandable 5. None of the debts is subject of retention or controversy commenced by third person & communicated in due time to the debtor. NOTE: when all requisites are present, legal compensation shall take place even though parties are not aware of it.
a. b. c. d. e.
Legal compensation not proper when one debt arises from: depositum obligations of a bailee in commodatum claims for support civil liability in crimes obligations in favor of the government, i.e. taxes, fees, duties
VI. NOVATION
> substitution or change of an obligation by another, either by changing its object or principal conditions (real or objective), or by substituting another in place of the debtor, or by subrogating another in the rights of the creditor (personal or subjective) > cannot be presumed; must be clearly so declared or that the old and new obligations are incompatible on every point (they cannot stand together)
Requisites:
a. previous valid obligation b. agreement of parties to the new obligation c. extinguishment of the old obligation d. validity of the new obligation
Old obligation void, cannot be novated Old obligation voidable, can be novated Old obligation extinguished, nothing to novate Old obligation subject to suspensive or resolutory condition, new obligation also subject unless otherwise stipulated New obligation void, old obligation subsists unless parties intended it to be extinguished in any event.
Substitution of Debtor
Expromision - initiative of third person as new debtor - creditors consent necessary - debtors consent not necessary
Delegacion
- initiative of old debtor - with new debtors consent - with creditors consent & acceptance
New debtor pays, full reimbursement with subrogation in all of creditors rights; New debtor fails to pay, old debtors obligation not revived, unless - new debtors insolvency was already existing & of public knowledge or is known to the old debtor at the time of delegacion
Legal
a. creditor pays another creditor who is preferred even without debtors consent b. third person, not interested in the obligation, pays with debtors approval c. payment, even without debtors knowledge, by a person interested in the fulfillment of the obligation