YOURSOblicon.doc

8/14/2019 YOURSOblicon.doc

1/79

OBLIGATIONS

WHAT IS AN OBLIGATION?An obligation is a juridical necessity to give, to do or not to do. (1156)Manresa defines it as the legal relation between one party and another, the latter being bound to thefulfillent of a prestation which the forer ay deand of hi

Ang Yu Asuncion v. CA!laintiffs were tenants of the private respondents in "inondo. !laintiff Asuncion et al. are suing #u

$njieng for reneging on an offer to sell of the forers% dwelling. #u $njieng sold such to "uen&ealty and 'evelopent #orporation, which then deanded herein respondents to vacatepreises. and #A held that Ang u Asuncion had right of first refusal.*ssue+ - the decision is subject to writ of e/ecution0eld+ o. 'ishonoring right of first refusal is only subject to a separate proceeding for daagesrather than a writ of e/ecution. Right of first refusal is not a perfected contract thereforenot subect to an action for specific perfor!ance".". oo2 for essential eleents below for an obligation to arise. *n this case, there was noobligation because there was no contract or vinculu juris, thus an action for perforance is nottenable.

3upree #ourt spelled out the eleents of an obligation+a) #inculu! $uris4the legal tie or efficient cause, which binds the parties to the obligation, and is

established by law, contracts, uasicontracts, delicts and uasidelicts. (juridical tie)b) Obect4 prestation or conduct reuired in the perforance of the obligation, and ay consist of

giving, doing, or not doing a thingc) Subect%persons4 as according to deandability+

1. Obligee4 creditor, active, i.e. one who is entitled to deand the fulfillent of the obligation.7. Obligor 4 debtor, passive, i.e. one upon who deand is ade, who is bound to the

fulfillent of an obligation

&IN'S O( OBLIGATIONS1. #ie)point of sanction

a. *i+il obligations% give a right of action to copel their perforanceb. Natural obligations not being based on positive law but on euity and natural law, do not

grant a right of action to enforce their perforance8 but after voluntary fulfillent by theobligor, they authori9e the retention of what has been delivered or rendered by reason thereof

(1:7;)c. ,oral obligation those that cannot be enforced by action but which is binding on the party

who a2es it in conscience and natural law8 now erged with natural obligations.7. #ie)point of perfor!ance

a. -ositi+e % to give or to dob. Negati+e not to do

;. #ie)point of subect !attera. Real obligation to give

b. -ersonal obligation to do or not to do

SO.R*/S-bligations arise fro+ law, contracts, uasicontracts, delicts, uasidelicts (115Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?

=@apee>'eeon.poli1la)? =Ascheia>uul.re!1la)? =!aul>3orino@udy>&ipol.ci+1la)? =0ya>&afaelMac>Macapagal.cri!1la)?

=Bivian>an@ustin>Mendo9a.labor1la)? =Miguel>'[email protected]? =ianne>Cervasio.co!!1la)?=#es>3icangco&owena>&oero.ta21la)?


2/79

G/N/RAL R.L/obligations derived fro law are not presued8 only those e/pressly deterined inthis #ode or in special laws are deandable, and shall be regulated by the precepts of the law which

establishes the8 and as to what has not been foreseen, by the provisions of this "oo2 (115D)- this is so because obligations constitute a limitation upon individual property freedom and by the

due process clause, no person shall be deprived of property without due process; the obligationand corresponding consequences for non-performance should be clearly stated in law and not

merely presumed

B" *ONTRA*TS'efinition3 a contract is a eeting of inds between two persons whereby one binds hiself, withrespect to the other, to give soething or to render soe service (1;E5)

- characteristics of a contract

(1) binding force

(2) autonomy

(3) mutuality

(4) relativity

(5) consensuality

G/N/RAL R.L/3 the contracting parties ay establish such stipulations, clauses, ters andconditions as they ay dee convenient, provided they are not contrary to law, orals, goodcustos, public order and public policy (1;E6)

o contrary to law: renouncing action for future fraud

o contrary to morals: free domestic service

o contrary to good customs: trial marriage

o contrary to public order: providing that in case of failure to pay rent agreed upon, the landlord

may dispossess by force the tenant from the leased premise

o contrary to public policy: agreement intended to prevent or stifle prosecution for a public

crime

G/N/RAL R.L/3 *ontracts as force of la) bet)een parties obligations arising fro contractshave the force of law between the contracting parties and should be coplied with in good faith

(115F)8- *o!pellabilit0 liable for daages anor copliance

o a contract is an agreement that is effective to give rise to a civil obligation; hence, not all

agreements are contracts

T4-/S O( *ONTRA*TS3

(11 Inno!inate contractsthose which are not specifically governed by any provision in the #ivil #ode or 3pecial aw butwhich li2ewise involve the fulfillent or accoplishent of soe prestations.

Regulated b03

1 1 stipulationsof the parties

1 1 pro+isionsof itle * and ** of this "oo2

1 1 rules governing the ost analogous no!inate contracts

1 1 custo!sof the place (1;E"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




3/79

1. contract of sale3 deter!inate thing for price" one of the contracting parties obligates hiselfto transfer the ownership of and to deliver a deterinate thing, and the other to pay therefore a

price certain in oney or its euivalent (1:5D)7. contract of barter or e2change3 one thing for pro!ise of another" one of the parties binds

hiself to give one thing in consideration of the other%s proise to give another thing (16;D)

;. contract for a piece of )or53 )or5 for price or co!pensation" the contractor binds hiselfto e/ecute a piece of wor2 for the eployer, in consideration of a certain price or copensation.he contractor ay either eploy only his labor or s2ill, or also furnish the aterial (13taMaria.printing? =&osanne>Mede9.hr?




4/79

c. (ree disposal % that the persons constituting the pledge or ortgage have the free disposal oftheir property, and in the absence thereof, that they be legally authori9ed for the purpose8

d. 8rdperson !a0 put up securit0 % 0*&' persons who are not parties to the principal obligationay secure the latter by pledging or ortgaging their own property8 thing pledged ust be placed

in the possession of the creditor, or of a third person by coon agreeent (7ED5)

'ifference3 Obectsa. (or ,ortgage3

1.) I!!o+ables

7.) !o+ables that are registered in *hattel ,ortgage Registerchattel ortgage+ personal property is recorded in the #hattel Mortgage &egister as asecurity for the perforance of an obligation. *f the ovable, instead of beingrecorded, is delivered to the creditor or a third peron, the contract is a pledge and nota chattel ortgage (71:E)

;.) alienable real rightsonly the following property ay be the object of a contract of ortgage+ (1)iovables8 (7) alienable real rights in accordance with the laws, iposed uponiovables8 nevertheless, ovables ay be the object of a chattel ortgage (717:)

b. (or -ledge3 ,o+ables1.) not recorded in *hattel ,ortgage Register7.) deli+ered to creditor or third part0"

17. contract of antichresis3 fruits of i!!o+able to appl0 to debt" he creditor acuires theright to receive the fruits of an iovable of his debtor, with the obligation to apply the to

the payent of the interest, if owing, and thereafter to the principal of his credit. (71;7)

Perla Compania de Seguros, Inc. v. CA*n a bus accident in #avite, herein plaintiff is the insurance copany. he court ruled that theters of the contract constitute the easure of the insurer%s liability and copliance therewith isa condition precedent to the insured%s right of recovery fro the insurer. *n the case at bar, the

insurance policy with regards to third party injuries is only !hp 17,EEE which is in accordancewith iniu prescribed by law !.'. 1:6E. Gurtherore, the insured was stipulated to acuirewritten perission fro the insurer as regards to settleent with injured third parties. 3incesuch was not coplied with, the insured #ayas is precluded fro see2ing reiburseent..". ontracts as law between the parties. !hat has been agreed upon governs as long as it isnot contrary to law, morals, good customs, public order, and public policy"

*" 9.ASI%*ONTRA*TS'efinition3*t is the juridical relation resulting fro lawful, voluntary, and unilateral acts by virtue of

which the parties becoe bound to each other to the end that no one shall be unjustly enriched orbenefited at the e/pense of another (71:7)-bligations derived fro uasicontracts shall be subject to the provisions of #hapter 1, itle HB** ofthis "oo2 (116E)

-rincipal 5inds of 7uasi%contract3:" Negotioru! gestio3

hoever voluntarily ta2es charge of the agency or anageent of the business or property of

another, without any power for the latter, is obliged to continue the sae until the terinationof the affair and its incidents, or to reuire the person concerned to substitute hi, if the owner isin a position to do so. his juridical relation does not arise in either of these instances+

a. when the property or business is not neglected of abandoned

b. if in fact the anager has been tacitly authori9ed by the owner (71::);" Solutio indebiti3

*f soething is received when there is no right to deand it, and it was unduly delivered throughista2e, the obligation to return it arises (715:)

I#" '/LI*TS

=orybeth>"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




5/79

#ivil obligations arising fro criinal offenses shall be governed by the penal laws, subject to theprovisions of Article 713taMaria.printing? =&osanne>Mede9.hr?




6/79

#" 9.ASI%'/LI*TS

'efinition3 act or oission with fault or negligence causing daage to another8 no crie nor contractwhoever by act or oission causes daage to another, there being fault or negligence, is obliged to

pay for the daage done. 3uch fault or negligence, if there is no pree/isting contractual relationbetween the parties, is called a uasidelict and is governed by the provisions of this #hapter (71"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




7/79

. Meddling with or disturbing the private life or faily relations of another8

. *ntriguing to cause another to be alienated fro his friends8

. Be/ing or huiliating another on account of his religious beliefs, lowly station in life, place of

birth, physical defect, or other personal condition. aisa dc5. .nust Refusal or neglect of -ublic official of his dut0 Art" ;" Any person suffering

aterial or oral loss because a public servant or eployee refuses or neglects, without justcause, to perfor his official duty ay file an action for daages and other relief against he latter,without prejudice to any disciplinary adinistrative action that ay be ta2en.f" .nust< oppressi+e< high%handed !easure Art" ;@" $nfair copetition in agricultural,

coercial or industrial enterprises or in labor through the use of force, intiidation, deceit, achinationor any other unjust, oppressive or highhanded ethod shall give rise to a right of action by the person

who thereby suffers daage.g" -olice refusal or failure to gi+e aid or protection Art" 8"hen a eber of a city or

unicipal police force refuses or fails to render aid or protection to any person in case of danger to life orproperty, such peace officer shall be priarily liable for daages, and the city or unicipality shall be

subsidiarily responsible therefor. he civil action herein recogni9ed shall be independent of any criinalproceedings, and a preponderance of evidence shall suffice to support such action.

h" #iolator of rights and liberties Art" 8;" Any public officer or eployee, or any privateindividual, who directly or indirectly obstructs, defeats, violates or in any anner ipedes or ipairs any

of the following rights and liberties of another person shall be liable to the latter for daages+(1) Greedo or religion8(7) Greedo of speech8(;) Greedo to write for the press or to aintain a periodical publication8

(:) Greedo fro arbitrary or illegal detention8

(5) Greedo of suffrage8(6) he right against deprivation of property without due process of law8(3taMaria.printing? =&osanne>Mede9.hr?




8/79

court ay reuire the plaintiff to file a bond to answer for daages in case the coplaint should be foundto be alicious.

*f in a criinal case the judgent of acuittal is based upon reasonable doubt, the court shall so declare.*n the absence of any declaration to that effect, it ay be inferred fro the te/t of the decision whether or

not the acuittal is due to that ground.Art. ;E. hen a separate civil action is brought to deand civil liability arising fro a criinal offense, and

no criinal proceedings are instituted during the pendency of the civil case, a preponderance of evidenceshall li2ewise be sufficient to prove the act coplained of.

;" Independence of ci+il fro! cri!inal action Art" 8:" hen the civil action is based

on an obligation not arising fro the act or oission coplained of as a felony, such civil action ayproceed independently of the criinal proceedings and regardless of the result of the latter.8" /+en if cri!inal proceedings is dis!issed Art" 8"hen a person, claiing to be injured

by a criinal offense, charges another with the sae, for which no independent civil action is granted inthis #ode or any special law, but the justice of the peace finds no reasonable grounds to believe that a

crie has been coitted, or the prosecuting attorney refuses or fails to institute criinal proceedings,the coplaint ay bring a civil action for daages against the alleged offender. 3uch civil action ay besupported by a preponderance of evidence. $pon the defendantJs otion, the court ay reuire theplaintiff to file a bond to indenify the defendant in case the coplaint should be found to be alicious.

*f during the pendency of the civil action, an inforation should be presented by the prosecuting attorney,the civil action shall be suspended until the terination of the criinal proceedings.

" -reudicial 7uestions !a0 proceed" Art" 8>"!rejudicial uestions, which ust be decidedbefore any criinal prosecution ay be instituted or ay proceed, shall be governed by rules of court

which the 3upree #ourt shall proulgate and which shall not be in conflict with the provisions of thiscode.

e"g"3 *ases of 'efa!ation< (raud< and -h0sical Inuries Art" 88" *n cases of defaation, fraud,

and physical injuries a civil action for daages, entirely separate and distinct fro the criinal action,ay be brought by the injured party. 3uch civil action shall proceed independently of the criinal

prosecution, and shall reuire only a preponderance of evidence.

/((/*TS O( OBLIGATIONS3

a" In obligations to gi+e3:" 'iligence re7uire!ent< if no stipulation or la)3

Good father of a fa!il0 (116;)

Ivery person obliged to give soething is also obliged to ta2e care of it with the properdiligence of a good father of a faily, unless the law or the stipulation of the partiesreuires another standard of care (116;)

b. the word something indicates a determinate thing, that which is segregated from allothers of a particular kind

c. the diligence of a good father of the family is the legal standard of diligence. It isordinary diligence. This standard means hemust take care of the thing as if he is the realowner.

Another diligence re7uire!ent3 e2traordinar0 for co!!on carriers% fro the nature of their business and for reasons of public policy, are bound toobserve e/traordinary diligence in the vigilance over the goods and for the safety ofthe passengers transported by the, according to all the circustances of each case.

3uch e/traordinary diligence in vigilance over the goods is further e/pressed in Articles13taMaria.printing? =&osanne>Mede9.hr?




9/79

% All3 principal< accession< accessories (1166)% At their state at ti!e of perfection of contract (15;Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




10/79

.". Accessories, accessions, fruits follow the principal but not vice versa. Irgo, in this case, thesale of house does not include the lot, since the latter would be the principal.

d. &ight to daagesi. Gortuitous events, only if+

1. delay C::>D7. proise to 7 rently interested persons C::>D

*f the obligor delays, or has proised to deliver the sae thing to two or ore persons who do

not have the sae interest, he shall be responsible for any fortuitous event until he has effectedthe delivery (1165)

;. law, stipulated, ris2y nature C::D

ii. Graud, delay, contravention of the tenor of obligation C::=D

hose who in the perforance of their obligations are guilty of fraud, negligence, delay and thosewho in any anner contravene the tenor thereof, are liable for daages (11Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




11/79

In the 2alane notes, there is no action for compliance for an obligation to do because suchwould be involuntary servitude which is prohibited by the constitution.

b" Liabilit0 for 'a!ages arises fori" (raud (11"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




12/79

(7) when fro the nature of the obligation it appears that the designation of the tie whenthe thing is to be delivered or the service is to be rendered is a controlling otive for the

establishent of the contract8 or(;) hen deand would be useless, as when the obligor has rendered it beyond his power to

perfor.*n reciprocal obligations, neither party incurs in delay if the other does not coply or is not

ready to coply in a proper anner with what is incubent upon hi. Gro the oent oneof the parties fulfills his obligation, delay by other begins. (116F)

K*'3+

(1) !ora sol+endi E b0 debtor euisites!

d. he obligation ust be liuidated, due and deandable.

e. he debtor is guilty of nonperforance.f. here was deand ade judicially or e/trajudicially.

$ffects "hen these elements are present!

a. he creditor ay as2 for daages.b. he debtor is liable even if the loss is due to fortuitous

events.

c. he debtor shall bear the ris2 of loss.

Instance "hen there is no default or mora solvendi

1. *n negative obligations, because one can never be late in not doing or

not giving soething.7. *n natural obligations, because the perforance is optional or voluntaryon the part of the debtor.

(2) !ora accipiendi E b0 creditor

a. euisites!a. -ffer of perforance by the debtor.b. &efusal of the creditor to accept without just cause.

b. $ffects!;. #reditor shall bear the ris2 of loss.:. All e/penses for the preservation of the thing after the delay shall be borne by the creditor.5. #reditor is liable for daages.

(3) co!pensation !orae E b0 the parties

/ffect3 Liabilit0 for da!ages (11D si2 percent" (77EF)*f obligation consists in payent of a su of oney, and debtor incurs in delay, the indenity for

daages, there being no stipulation to the contrary, shall be the payent of the interest agreed upon, andin the absence of stipulation, the legal interest, which is si/ percent per annu. (77EF)

-I+ When there is dela0< the inured part0 !a0 as5 for da!ages" But this benefit arisingfro! ,ora< default or dela0 !a0 cease upon3

a" Renunciation of the creditor

b" -rescription of actionc" /2tension of ti!e for the fulfill!ent of the obligation





13/79

Chave- v. on-alesRepairer of the t0pe)riter< after se+eral de!ands of the o)ner< returned such )ith

!issing parts and )ithout ha+ing it repaired" The o)ner had another co!pan0 fi2 thet0pe)riter< S* ruled that the original repairer can be held liable not onl0 for the !issing parts

but also for cost of the e2ecution of the obligation of repairing the t0pe)riter b0 anotherco!pan0" Repairer is liable under article ::> and ::="

SSS v. oon"al& +evelopment and /ousing CorporationSSS filed a co!plaint against ,oon)al5 alleging error in co!putation of :; interest

due to dela0 in pa0!ent thus affecting the total a!ount the latter had to pa0"0eld+ on the clai for penalties, it is e/tinguished since a penal clause is an accessory penalty,which necessarily follows the loan that has already been paid. Gurtherore, nowhere in the case did itappear that 333 deanded payent fro Moonwal2 of its onthly aorti9ations. here was ereattept at foreclosure at first, and at the tie of issuing of stateent of account, Moonwal2 paid its

obligation in full. 0ence there was no delay. *n turn, penalty never becae deandable.Aside+ the court distinguished this case fro #hristian Missionary 3ociety v. 3ocial 3ervice

#oission by stating that penalty therein was provided by law not by ere agreeent of the parties.

Re7uisites of 'efault3aD Obligation be due and de!andable and alread0 li7uidatedbD 'ebtor dela0s perfor!ance or is guilt0 of non%perfor!ancecD *reditor re7uires perfor!ance udiciall0 and e2tra%udiciall0

.". *n this case, the third reuisite was absent thus there was no delay. hey did not deand for

interests.

I/tinguishent of principal carries with it the accessory penalty. Application of payent ust be adefirst to the interest. *n payent of principal, there is presuption of e/tinguishent of the interestalready. i2ewise, receipt of later installent of debts without reservation for prior ones shall also raise

presuption that prior installents have already been paid.C::>D

2arga4a v. 5

A contract )as entered into for deli+er0 of !aterials on 'ec" ;;< := in ti!e for theaggrie+ed part0Fs )ife )ho e2pressl0 )ished that she be buried before *hrist!as da0< and

)here< despite 5no)ing this ti!etable and ha+ing paid for the !aterials< the supplier failed to!a5e the deli+er0 despite pleas and earnest follo)%ups b0 the )ido)er< Supre!e *ourt ruled

that ti!e )as of the essence of such contract and the supplier should be liable for the dela0 andbreach"

.". I/aple of incurring delay without judicial or e/trajudicial deand. (L7)ie is of theessence. #ontract was entered into in view of burial before #hristas.

5gcaoili v. 67I7

The parties entered into a contract of sale of a go+ern!ent housing unit on thecondition that Agcaoili should occup0 the sa!e )ithin three da0s fro! the receipt of notice"

(ailure to i!!ediatel0 occup0 contractuall0 allo)ed GSIS to ter!inate the contract" Agcaoliupon receipt of notice< i!!ediatel0 )ent to the place and found a house in a state of

inco!pleteness that ci+ilied occupation )as not possible" He !ade the first !onthl0install!ent but refused to !a5e further pa0!ents until and unless GSIS co!pleted the housing

unit" GSIS cancelled the a)ard and re7uired Agcaoili to +acatethe pre!ises" Held3 GSIS had noright to rescind sale" *n reciprocal obligations, neither party incurs in delay if the other does not coply

or is not ready to coply in a proper anner with what is incubent upon hi. (116F, par. 6)

C&-$'3 G-& *A"** - !A 'AMACI3





14/79

"859 8


15/79

0T85B=0TI0 " T1= T=8A " T1= 568==A=0T

In general< e+er0 debtor )ho fails in the perfor!ance of his obligation is bound toinde!nif0 for the losses and da!ages caused thereb0" B0 the phrase Jin an0 !annercontra+enes the tenorK !eans an0 illicit act< )hich i!pairs the strict and faithful fulfill!ent ofthe obligation< or e+er0 5ind of defecti+e perfor!ance" It is therefore i!!aterial )hether or not

the actor is in bad faith or negligent< )hat is re7uired is that it is his fault or the act donecontra+enes their agree!ent"

CAS0 10#2I#0

'efinition3 e+ents )hich could not be foreseen< or )hich though foreseen are ine+itable" (11"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




16/79

N"B"One )ho negligentl0 creates a dangerous situation cannot escape liabilit0 for the naturaland probable conse7uences thereof although an act of God inter+ened to precipitate the loss"

There !ust be no fraud< negligence< dela0 or +iolation or contra+ention in an0 !anner of thetenor of the obligation"

A**ION S.BROGATORIA and A**ION -A.LIANA

RIGHTS O( *R/'ITOR AGAINST '/BTOR

%'* o deand fulfillent of the obligation or specific perforance.%&* o attach the properties of the debtor, e/cept those e/ept by law fro e/ecution.%* Accion subrogatoria

%C* Accion !auliana

A. Accion subrogatoria3 No+ation +ia change of creditor (17F1, no. ;)

'efinition3 in+ol+es the right of the creditor to e2ercise all of the rights and bring all ofthe actions )hich the debtor !a0 ha+e against third persons"

Re7uisite conditions3a) 'ebtor to )ho! the right or action properl0 pertains !ust be indebted to

the creditor"b) *reditor is preudiced b0 inaction or failure of the debtor to proceed

against the third person"c) *reditor !ust first pursue and e2haust all properties of the debtor not

e2e!pted fro! e2ecution"

B" Accion -auliana3 Rescission

'efinition3 in+ol+es the right of the creditor to attac5 or i!pugn b0 !eans of arescissor0 action an0 act of the debtor )hich is in fraud and to the preudice of his

rights as creditor"

:" Subsidiar03in character since it can only be availed of in the absence of other legal reedies

for reparation for the injury. (17F:)after having pursued the property in possession of the debtor to satisfy their

clais (11Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




17/79

3ec. :E+ he court ay order any property of the judgent obligor, or oney due hi, not e/ept froe/ecution, in the hands of either hiself or another person, to be applied to the satisfaction of the

judgent, subject to any prior rights over such property. *f upon investigation of his current incoe ande/penses, it appears that the earnings of the judgent obligor for his personal services are ore than

necessary for the support of his faily, the court ay order that he pay the judgent in fi/ed onthlyinstallents

TRANS,ISSIBILIT43

CII&A &$I+ all rights ac7uired +ia an obligation are trans!issible/2cept3 stipulations< la) and nature of right pro+ide other)ise

/2ceptions to trans!issibilit03C:D )hen prohibited b0 la)3taMaria.printing? =&osanne>Mede9.hr?




18/79

*ertain *ondition3 Ter! % A day certain is understood to be that which ust necessarily coe,

although it ay not be 2nown when. 'eandability also depends on whether it is suspensive orresolutory.

'ifference bet)een conditional and those )ith a ter!3 uncertaint0 or certaint0 of a

da0*f the uncertainty consists in whether the day will coe or not, the obligation is conditional,and it shall be regulated by the rules of the preceding section. (11F;)

A" -.R/ OBLIGATIONS3 de!andable at onceIvery obligation whose perforance does not depend upon a future or uncertain event, or upon a pastevent un2nown to the parties, is deandable at once. Ivery obligation which contains a resolutory

condition shall also be deandable, without prejudice to the effects of the happening of the event (11"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




19/79

" I!possible Cph0sicall0 and logicall0D and illegal conditions3

*f the condition is to do an ipossible or illegal thing, both the condition and the

obligation are void.

*f the condition is negative, that is, not to do an illegal thing, both the condition and

the obligation are valid.

*f the condition is negative, that is, not to do the ipossible, just disregard the

condition, but the obligation reains.

" Resolutor0 condition3 e+ent happens at deter!inate ti!e< or indubitabl0 )ill not

happen" the condition that soe event happen at a deterinate tie shall e/tinguish theobligation as soon as the tie e/pires or if it has been indubitable that the event will not ta2e

place (11D:)

>" Suspensi+e condition3 e+ent )ill not happen at deter!inate ti!e< e+ident that suchcannot occur" the condition that soe event will not happen at a deterinate tie shall render

the obligation effective fro the oent the tie indicated has elapsed, or if it has becoeevident that the event cannot occur. *f no tie has been fi/ed, the condition shall be deeedfulfilled at such tie as ay have probably been conteplated, bearing in ind the nature of theobligation (11D5)

" 'ee!ed fulfilled )hen obligor pre+ents such" he condition shall be deeed fulfilled whenthe obligor voluntarily prevents its fulfillent (11D6) (constructive or presumed fulfillment)

@" Resolutor0 condition3 each returns )hat each has recei+ed fro! another" when the

conditions have for their purpose the e/tinguishent of an obligation to give, the parties, uponthe fulfillent of said conditions, shall return to each other what they have received. *n case ofthe loss, deterioration or iproveent of the thing, the provisions which, with respect to the

debtor, are laid down in the preceding article shall be applied to the party who is bound to return(11FE)These rules apply if the resolutory condition takes place, creating the original creditor/s obligationto return the thing received.

" Retroacti+it0 of effect of conditional obligations

a" To gi+e3

i" Retroact to da0 of obligation"ii" ,utual co!pensation in reciprocal obligations"

%see!ingl0 conte!plates a si!ultaneous perfor!ance ofprestations because other)ise< the fruits and interests )ould not

be able to offset the otheriii" If unilateral< debtor shall appropriate fruits and interests recei+ed

unless intention constituting such )as different"% Since debtor still has possession of thing to be gi+en hehas control< and po)er to appropriate such but subect toaccounting per de!and b0 the creditor as pro+ided for b0

:8 )herein all fruits pertain to the +endee fro! theti!e of perfection of the contract" This is in accordance to::> )herein there is alread0 personal right at perfectionof contract but real right +ests onl0 upon deli+er0"

he effect of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the dayof the constitution of the obligation. evertheless, when the obligation iposes reciprocal prestationsupon the parties, the fruits and interests during the pendency of the condition shall be deeed to have

been utually copensated. *f the obligation is unilateral, the debtor shall appropriate the fruits andinterests received, unless fro the nature and circustances of the obligation it should be inferred that

the intention of the person constituting the sae was different. *n obligations to do and not to do, thecourts shall deterine, in each case, the retroactive effect of the condition that has been coplied with

(11DMalayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




20/79

*n obligations to do and not to do, the courts shall deterine, in each case, the retroactive effect of the

condition that has been coplied with (11DMalayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




21/79

(5) if it deteriorates through the fault of the debtor, the creditor ay choose betweenthe rescission of the obligation and its fulfillent, with indenity for daages in

either case8(6) if the thing is iproved by its nature, or by tie, the iproveent shall inure to

the benefit of the creditor8(3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




22/79

(;) when the thing deteriorates without the fault of the debtor, the ipairent is to beborne by the creditor8

(:) if it deteriorates through the fault of the debtor, the creditor ay choose between therescission of the obligation and its fulfillent, with indenity for daages in

either case8(5) if the thing is iproved by its nature, or by tie, the iproveent shall inure to the

benefit of the creditor8(6) if it is iproved at the e/pense of the debtor, he shall have no other right than that

granted to the usufructuary (11DF)

hen the conditions have for their purpose the e/tinguishent of an obligation to give, theparties, upon the fulfillent of said conditions, shall return to each other what they havereceived.*n case of the loss, deterioration or iproveent of the thing, the provisions which, with

respect to the debtor, are laid down in the preceding article shall be applied to the partywho is bound to return.As for obligations to do and not to do, the provisions of the second paragraph of article11D< shall be observed as regards the effect of the e/tinguishent of the obligation (11FE)

B" Non%co!pliance

:" B0 one part03

R/SOL.TION3

a" in Reciprocal Obligations< and the other does not co!pl0i" -o)er to Rescind plus da!ages

ii" *o!pel fulfill!ent and then rescind if such beco!es i!possible

b" *ourt decrees rescission unless ust cause for authoriing a periodc" Without preudice to third persons

he power to rescind obligation is iplied in reciprocal ones, in case one of the obligorsshould not coply with what is incubent upon hi8

he injured party ay choose between the fulfillent and the rescission of the obligation,with the payent of daages in either case. 0e ay also see2 rescission, even after hehas chosen fulfillent, if the latter should becoe ipossible.he court shall decree the rescission claied, unless there be just cause authori9ing the

fi/ing of a period.his is understood to be without prejudice to the rights of third persons who haveacuired the thing, in accordance with articles 1;D5 and 1;DD and the Mortgage aw.

(11F1)

;" B0 both parties3 (11F7)

a" Rule against first infractor< as te!pered b0 courts

b" If first infractor cannot be deter!ined< obligation e2tinguishedin case both parties have coitted a breach of the obligation, the liability of the firstinfractor shall be euitably tepered by the courts. *f it cannot be deterined which ofthe parties first violated the contract, the sae shall be deeed e/tinguished, and each

shall bear his own daages.(11F7)

Songcuan +" IA*Alviar sold property to 3ongcuan. he contract included a right of redeption plus costs of iproveents

within ten years. here was also a stipulation wherein on such occasion 3ongcuan was entitled to becoea lessee of the said land. he case involves two obligations+ reconveyance and lease. he obligation of

reconveyance does not depend on the obligation to lease, rather, obligation to lease arises only afterreconveyance. 3ongcuan%s reedy is that for specific perforance. -nly the area actually used by3ongcuan was andatorily leased to hi8 only 1; of the area in uestion.N"B" here is an e2a!ple of a conditional obligation"





23/79

-hilippine A!use!ent /nterprises< inc" +" Nati+idad?laintiffs leased a $ukebo# to 0atividad as owner of Irene/s refreshment ?arlor in avao.

0atividad wanted to return said $ukebo# since the coins always got stuck in the slot. Theystopped operating said machine and bought their own $ukebo#. The 7upreme ourt ruled

against the defendants ordering the return of the $ukebo# and payment of liquidateddamages.

4.6. escission should be done 7udicially unless stipulated in the contract.escission "ill only be granted if breach of the obligation is substantial and notmere occasional malfunction of the machine "ithout even an allegation of loss of

income.

0ce7o v. International 6an&ing Corp.*hua Teng *hong e2ecuted a pro!issor0 note to the Ban5 )ith %!onth period had lapsed3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




24/79

building the oent it accepted the donation with said condition. he deed of donation did not specify aperiod. Article 11F< provides that courts ay fi/ the duration wherein it can be inferred fro its nature

and circustances that a period was intended. 0owever, the court said that 5E years is sufficient tie for#!$ to have fulfilled its obligation of establishing a edical college. Art. 11F1 provides that when one of

the obligors cannot coply, obligee ay see2 rescission and the court shall decree the sae unless thereis just cause to fi/ a period. #!$ has slept on its obligation for an unreasonable length of tie, donation

ust be rescinded.N"B" We ha+e to clarif0 the difference bet)een an onerous and gratuituous title since the!aorit0 opinion !entioned that the donation )as both gratuituous and onerous as pointed out

b0 'a+ideFs dissent" Note that the +ote here is 8 to ;" The case illustrates discretion on the partof the courts in rescinding contracts"

OBLIGATIONS R/N'/R/' #OI' B4 */RTAIN *ON'ITIONS

Annulling conditions3

a" -otestati+e E onl0 if suspensi+e condition dependent solel0 on )ill of debtorwhen the fulfillent of the condition depends upon the sole will of the debtor, the conditional

obligation shall be void. *f it depends upon chance or upon the will of a third person, theobligation shall ta2e effect in confority with the provisions of this #ode. (11D7)

b" I!possible *onditions (11D;)c" those contrar0 to la)< good custo!s< !orals< public order or public polic0

(11D;) % separable if di+isible (11D;)*possible conditions, those contrary to good custos or public policy and those prohibited by lawshall annul the obligation which depends upon the. *f the obligation is divisible, the part thereof

which is not affected by the ipossible or unlawful condition shall be valid. (11D;)d" Not to do an i!possible thing E not agreed upon

he condition not to do an ipossible thing shall be considered as not having been agreed upon(11D;)

Lao Li! +" *Ahe stipulation that the lessee has the right to renew contract of lease as long as he needs the preisesand he can pay for the sae is invalid. *t would leave the lessee, 'y the sole power to deterine whetherthe lease should continue or not. A general covenant to renew is deeed satisfied by one renewal unless

provision is clearly and e/pressly ade for further renewals. ease contract deeed e/tinguished at theend of a year, subject to renewal via new agreeent but the lessor did not want to renew. Irgo, no orelease.

Os!ena +" Ra!aTo!as Os!ena )as gi+en b0 Rafols all the rights the latter inherited fro! #ictoriano Os!ena toclai! pa0!ent fro! Ra!a on account of a loan the0 contracted" To!as Os!ena presentedcontracts to Ra!a for pa0!ent< )hich she ac5no)ledged" The0 e2ecuted another contract

)herein she pro!ised to pa0 once her house in -agina )as sold" The Supre!e *ourt ruled thecondition as in+alid as it )as dependent on the sole )ill of Ra!a< Her ac5no)ledge!ent"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




25/79

8" Naga Tel" *o" +" *A

NAT/L*O entered a contract )ith *AS/R/*O )herein the for!er )as allo)ed the use of electricpost" NAT/L*O installed ten phone lines for *AS/R/*OFs use free of charge" After := 0ears"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




26/79

a. I/die 4 period ust lapse before the obligations can be deanded.b. *ndie 4 period after which the obligation is e/tinguished

(3) According to definitenessa. 'efinite 4 refers to a fi/ed 2nown date or tie

b. *ndefinite 4 refers to an event which will necessarily happen but the date of its happeningis not 2nown.

Re7uisites of -eriod3%'* *t ust refer to the future.

%&* *t ust be certain.%* *t ust be possible.

-eriod distinguished fro! a condition3%'* As to fulfill!ent E a period is a certain event, which ust happen sooner or later at

a date 2nown beforehand or at a tie, which cannot be deterined8 while a conditionis an uncertain event.

%&* As to ti!e E a period refers only to the future, while a condition ay also refer to apast event un2nown to the parties.

%* As to influence on the obligation Ea period erely fi/es the tie for theefficaciousness of the obligation. -n the other hand, a condition causes an obligationto arise or to cease. (Art. 11F;)

/ffect of pa0!ent before the arri+al of the period3he debtor ay recover what he has paid including the fruits and interest if he is unaware

of the period. *f he paid voluntarily 2nowing that the obligation is not yet due, he cannot recoverwhat he has paid.

b" Interi! obligations

*n case of loss, deterioration or iproveent of the thing before the arrival of the day

certain, the rules in article 11DF shall be observed.

i" /2ercise due diligence6 other)ise< responsibilit0 for loss< deterioration (11DF)ii" I!pro+e!ent inures to creditor< if at e2pense of debtor onl0 usufructuar0

right (11DF)hen the conditions have been iposed with the intention of suspending the efficacy of an

obligation to give, the following rules shall be observed in case of the iproveent, loss ordeterioration 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

e/tinguished2. if the thing is lost through the fault of the debtor, he shall be obliged to pay

daages8 it is understood that the thing is lost when it perishes or goesout of coerce, or disappears in such a way that its e/istence is un2nownor it cannot be recovered8

3. when the thing deteriorates without the fault of the debtor, the ipairentis to be borne by the creditor8

4. if it deteriorates through the fault of the debtor, the creditor ay choosebetween the rescission of the obligation and its fulfillent, with indenity

for daages in either case85. if the thing is iproved by its nature, or by tie, the iproveent shall

inure to the benefit of the creditor86. if it is iproved at the e/pense of the debtor, he shall have no other right

than that granted to the usufructuary (11DF)iii" Reco+er0 pa0!ent or deli+er0 before due and de!andabilit0

Anything paid or delivered before the arrival of the period, the obligor being unaware of the periodor believing that the obligation has becoe due and deandable, ay be recovered, with thefruits and interest. (11F5)

c" Benefit of the period





27/79

i" -resu!ption3 benefit for bothhenever in an obligation a period is designated, it is presued to have been established for the

benefit of both the creditor and the debtor, unless fro the tenor of the sae or othercircustances it should appear that the period has been established in favor of one or of the

other. (11F6)

*f the period is for the benefit of both parties, the creditor ay not, before the e/pirationof the period, deand fulfillent8 neither ay the debtor fulfill. *f the period has beenestablished solely for the benefit of the creditor, he ay deand fulfillent when he

pleases but the debtor ay not oblige hi to accept before the arrival of the period. *fteh period has been established solely for the benefit of the debtor, he ay, use it tooppose a preature deand, or renounce it and pay in advance of aturity.

Abesamis v. 8oodcraft 8or&s, Inc.

he contract provided that the appellant shall a2e shipent before the end of @uly, but will notcoence earlier than April with the option to a2e partial shipent depending on the availability of logsand vessels. he 3upree #ourt, in deciding who was to bear the loss as a result of the typhoon in acontract for delivery of logs, ruled that the uoted provision provides for a period. he designated tie

was calculated to avoid typhoons. -n May 5, 1F51 the appellant failed to send a vessel to pic2 up the logs,which were conseuently swept away by a typhoon. 3ince the said date was within the period prescribed,none could incur delay nor deand perforance. he loss should be shouldered by the appellee or thelogger.

d" (i2ing of a period

I" i" In the follo)ing cases< the court !a0 fi2 a period3 (11FMalayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




28/79

.". &euisites and guidelines for setting a period+ there is no period specified but such was intended.#ourts should just fi/ a period, which the parties could have intended.

8oman v. 5

Saranga0a and Ro!an entered a contract for the sale of parcels of land" It pro+ided thatRo!an )ould pa0 Saranga0a )ithin si2t0 da0s after the latter has secured titles for the saidlots" Other)ise the +endees )ould be liable for -hp =Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




29/79

(onacier lost his right to the period< i"e" ti!e to sell the iron ore< unless he i!!ediatel0 gi+esne) ones e7uall0 satisfactor0"

/ffect of Loss of right to ter!3 'e!andabilit0 % references of dela0 and liabilit0

A" 'ela0 starts fro! ti!e of udicial or e2traudicial de!and

.nless3h" obligation or la) e2pressl0 declares

i" ti!e is a controlling !oti+e" de!and )ould be useless

Reciprocal obligations3 dela0 happens fro! the !o!ent one part0 fulfills C::>D

5inds3!ora sol+endi * delay of obligor or debtor!ora accipiendi9 delay by obligee or creditorco!pensation !orae E delay of parties in reciprocal obligations

B" *o!pel co!pliance3 responsibilit0 for loss< deterioration< or i!pro+e!ent (11DF)

hen the conditions have been iposed with the intention of suspending the efficacy of an obligation to

give, the following rules shall be observed in case of the iproveent, loss or deterioration of the thingduring the pendency of the condition+

a. if the thing is lost without the fault of the debtor, the obligation shall be e/tinguishedb. if the thing is lost through the fault of the debtor, he shall be obliged to pay daages8 it isunderstood that the thing is lost when it perishes or goes out of coerce, or disappears insuch a way that its e/istence is un2nown or it cannot be recovered8

c. when the thing deteriorates without the fault of the debtor, the ipairent is to be borne by thecreditor8

d. if it deteriorates through the fault of the debtor, the creditor ay choose between the rescissionof the obligation and its fulfillent, with indenity for daages in either case8

e. if the thing is iproved by its nature, or by tie, the iproveent shall inure to the benefit ofthe creditor8

f. if it is iproved at the e/pense of the debtor, he shall have no other right than that granted tothe usufructuary (11DF)

'I#ISIBILIT4 O( RIGHT TO '/,AN' OR OBLIGATION TO -/R(OR,CSINGL/ #/RS.S ,.LTI-L/ -ARTI/SD

II" $OINT OBLIGATIONS

a" 'efinition@- is one where the whole liability is to be paid or fulfilled proportionately by the different debtors andor

is to be deanded also proportionately by the different creditors. Also called prorata, proportionate,ancounada, ancounada siple.

b. In case there are t)o or !ore debtors or creditors< the la) presu!es a oint

liabilit0" (17EMalayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




30/79

(;) According to its nature" hen the nature of the obligation reuires solidarity.

c. -resu!ed e7ual di+ision according to parties< credits and debts beingdistinct fro! the other" (17ED)

*f fro the law, or the nature of the wording of the obligations to which the precedingarticle refers the contrary does not appear, the credit or debt shall be presued to be

divided into as any eual shares as there are creditors or debtors, the credits or debtsbeing considered distinct fro one another, subject to the &ules of #ourt governing theultiplicity of suits. (17ED)

Furado : In a $oint obligation, each debtor shall be liable only for his part of the debt presumed tobe eaual with the other debtors. The above provision is consistent with the rule that a $ointobligation is presumed in case of plurality of debtors or creditors for solidary obligation e#ists onlywhen the law so provides, when e#pressly stipulated by the parties or when called for by thenature of the obligation.

d" So!e feature of oint liabilit0

*nsolvency of one debtor does not a2e the others liable.

Bitiated consent on the part of one debtor does not affect the others.

'eand ade to one of the debtors is not a deand to all because the

debt of one is distinct fro the others.

Philippine 4ational 6an& v. Sta. ariahe principal, in a special power of attorney, erely epowered his agent to borrow

oney and deliver ortgages of real estate to the creditor and where the said agent

indeed borrowed oney but e/ecuted a ortgage not on the account of his principal butin his own nae. he 3upree #ourt applying Art. 17E< ruled that the ortgage was notjoint and several because the special power of attorney did not grant the authority to bind

her solidarily with hi on any loan he ight secure thereunder.N"B" There )as no e2press state!ent in the obligation< nor )as there a la) ornature of the obligation re7uiring solidarit0"

3aucian v. :uerol*n -ctober, 1FED, ino 'ayandante and 0erenegilda &ogero e/ecuted a private writing

in which they ac2nowledged theselves to be indebted to &oan @aucian in the su of!1;,;;7.;;. 0erenegilda &ogero signed this docuent in the capacity of surety for ino

'ayandante8 but as clearly appears fro the instruent itself, both debtors boundtheselves jointly and severally to the creditor, and there is nothing in the ters of the

obligation itself to show that the relation between the two debtors was that of principaland surety. 0erenegilda &ogero died, and her estate is now adinistered by Querol. he

3upree #ourt held that @aucian%s clai against the estate is not contingent but absolute,the latter being solidarily liable. 0is clai did not depend on whether or not @aucian

e/hausts all the property of 'ayandante in satisfying his clai, but rather as a solidarycodebtor, the forer can go after &ogero%s estate. 'ayandante was declared insolvent ashe could not satisfy his debt to @aucian as decreed by the court, regardless of such,@aucian can still go after &ogero%s estate.

he #ivil #ode a2e it clear that 0erenegilda &ogero was liable absolutely andunconditionally for the full aount of the obligation without any right to deand thee/haustion of the property of the principal debtor previous to its payent. 0er position sofar as the creditor was concerned was e/actly the sae as if she had been the principal

debtor.he opinion contains an e/position of the difference between the juridical conceptions ofliability incident to ultiple obligations, as ebodied in the civil law and coon lawrespectively8 and the civil law distinction is noted between the apportionable joint

obligation and the solidary joint obligation. At coon law each of the debtors in aultiple obligation is liable in solidu for the whole, the obligation not being

apportionable aong the debtors.

N"B" In a gi+en contract< )herein a part0 signs as a suret0 but the agree!entstates oint and se+eral liabilities< there is a solidar0 obligation"





31/79

$OINT IN'I#ISIBILIT4A 7oint indivisible obligation is one in "hich the ob7ect or prestation is

indivisible, not susceptible of division; "hile the tie bet"een the parties is 7oint,that is, liable only to a proportionate share.

-reudiced onl0 b0 collecti+e acts of ALL creditors (17EF)

/nforced against ALL debtors (17EF)

If the division is impossible, the rights of the creditors may be pre$udiced only by theircollective acts, and the debt can be enforced only by proceeding against all the debtors.

If one of the latter should be insolvent, the others shall not be liable for his share. %'&DJ*he above article conteplates an obligation which is joint as to the parties but indivisible as tocopliance. he concurrence of all the creditors is necessary for deanding copliance due to theindivisibility of the obligation. he sae is inversely true as regards the debtors. he concurrenceof all the creditors is also necessary for acts which are prejudicial. "ut an act beneficial to al li2e

interruption of prescription ay be perfored by one of the creditor.

Indi+isibilit0 is not necessaril0 solidar0 (171E)

he indivisibility of an obligation does not necessarily give rise to solidarity. or does solidarity of itselfiply indivisibility. (171E)

Characteristics!%'* 'eand ust be ade to all the joint debtors.%&* he creditor ust proceed against all the joint debtors, because the copliance of the

obligation is possible only if all of the joint debtors would act together.

%* *f one of the debtors is insolvent, the other shall not be liable for his share.

%C* *f one of the debtors cannot coply, the obligation is converted into onetaryconsideration. -ne who is ready and willing to coply will pay his proportionateshare, and the other not willing shall pay his share plus daages when his financial

condition will iprove.%E* *f there is ore than one creditor, delivery ust be ade to all, unless one is

authori9ed to receive for the others.

SOLI'AR4 OBLIGATIONS

a" 'efinition3- is one where each of the debtors is bound to render copliance of the entire

obligation andor each one of the creditors has a right to deand entire copliance of theprestation. Also called in solidu, jointly and severally, individually and collectively, and

ancounada solidaria.

b" Ne+er presu!ed3 e2pressl0 stipulated< pro+ided b0 la)< re7uired b0 natureof obligation

here is a solidary obligation only when the obligation e/pressly so states, or when the law or the natureof the obligation reuires solidarity. (17E"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




32/79

of the debtors, the obligation is joint, and if its object is indivisible, it is a joint and indivisibleobligation.

d. 3olidarity e/ists even if bound by different+ MAI&, !I&*-', #-'**-3 C:;::DSolidarit0 !a0 e2ist although the creditors and the debtors !a0 not be bound in the sa!e

!anner and b0 the sa!e periods and conditions" C:;::D

e. -bligation ay be joint on the side of the creditors and solidary on the side of the

debtors or viceversa.f. Kinds of solidarity+

Acti+e E solidarit0 a!ong creditors

-assi+e E solidarit0 a!ong debtors ,i2ed E solidarit0 on the part of creditors and debtors

onuillo v. CARon7uillo )as one of four debtors" The co!pro!ise agree!ent sa0ing Jindi+iduall0K andJointl0K indicates solidar0 liabilit0"

" InchaustiMco +" 4uloSi2 brothers and sisters ad!itted solidar0 liabilit0" Gregorio 4ulo )as sued for pa0!ent ofentire indebtedness" Ho)e+er< solidar0 debtors (rancisco< ,anuel and *ar!en entered into a

co!pro!ised agree!ent )ith plaintiff" S* ruled3 Gregorio can be sued for the entireindebtedness plus interest" -artial re!ission granted to the three debtors also benefited hi!"'efense of non%!aturit0 of his other co%debtors solidar0 liabilit0 is a defense to allo) for !erepartial pa0!ent" Gregorio )as ordered to pa0 the part of the reduced indebtedness< onl0 insofar

as such is de!andable" Greg 4ulo )as solidaril0 liable< he benefited fro! re!ission< but note2tension of the period for pa0!ent for his o)n part< thus there )as partial de!andabilit0"

g" 'ebtor passi+e solidarit0 distinguished fro! suret0ship3

B0 guarant0 a person< called the guarantor< binds hi!self to the creditor to fulfillthe obligation of the principal debtor in case the latter should fail to do so" Asolidar0 guarant0 is suret0ship"

Suret0ship4 *f a person binds hiself solidarily with the principal debtor, the provisions of 3ection :,#hapter ;, itle * of this "oo2 shall be observed. *n such case the contract is called a suretyship. (7E:"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




33/79

Furado: ?ayment made by the debtor to any one of the solidary creditors e#tinguishes theobligation. If one of the solidary creditors demands payment of the debt, he has the right to do

so and payment must be made to him.

:uiombing v. CA-nly one of the solidary creditors filed a suit for collection against the solidary debtors.

he debtors oved for the disissal of the suit on the ground that the other solidarycreditors should have been included in the case. he 3upree #ourt rejected thedisissal of the suit invo2ing Art. 1717 and stated that recovery of the contract price was

surely a useful act and can be done even by one solidary creditor. Gurhterore, theuestion as to who should sue was a personal issue aong the solidary creditors.N"B" As to )ho sues for reco+er0 of the obligation should not !atter to thedebtors as the0 are )holl0 obligated to either one of the solidar0 creditors"

Action against and pa0!ent b0 solidar0 debtor

o -roceed against an0one< so!e< or all of the! si!ultaneousl0

(1716)

o 'e!and against one3 not obstacle for de!and against [email protected]? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




34/79

(7) defenses personal to the debtor li2e inority, insanity, civil interdiction, etc. 'efensespersonal to the debtor are not available to the other debtors so as to free the latter fro their

liability for their own shares in the obligation8(;) defenses that pertain to his codebtor or codebtors, li2e the e/istence of a period or condition

for as already stated, solidarity ay e/ist even if the debtors are bound under differentperiods or conditions.

Imperial Insurance, inc. v. +avid0usband and wife bound theselves solidarily in favor of obligee for a su of oney and

when the husband died, the obligee deanded payent fro the wife who resistedpayent, claiing that the obligee%s clai is barred by it%s failure to file a clai in theintestate proceeding of the deceased husband. he 3upree #ourt ruled that the obligeecan properly clai fro the wife as the nature of the obligation is solidary.N"B" If obligation )ere solidar0< the entire obligation is de!andable fro! an0one

of the solidar0 obligors"

Right of action against solidar0 co%debtors

o pa0or of obligation !a0 clai! fro! each co%debtor their share of the

debt (171"aldrias.head? =ayna>Malayang.deput0? =&hud9>&ayundo.secretariat? ='ionne>3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




35/79

he divisibility or indivisibility of the things that are the object of obligation in which there is only onedebtor and only one creditor does not alter or odify the provisions of #hapter 7 of this itle. (177;)

The divisibility or indivisibility refers to the performance, not to the thing which is the ob$ect of theobligation. 5lthough a thing is by its nature physically divisible, the obligation is indivisible if fullcompliance is intended by the parties or is so provided by law.

Indi+isibilit0 is not solidar0< +ice +ersa" (171E)he indivisibility of an obligation does not necessarily give rise to solidarity. or does solidarity of

itself iply indivisibility. (171E)

his is so because indivisibility refers to the object of the obligation which is capable of partialperforance while solidarity refers to the liability of one debtor to answer not only for his share of

the obligation but also for the shares of the other debtors. ithout solidary liability of thedebtors, the obligation is joint, and if its object is indivisible, it is a joint and indivisibleobligation.

-resu!ptions3

Indi+isible3 definite things< not partial perfor!ance

Gor the purposes of the preceding articles, obligations to give definite things and those which are notsusceptible of partial perforance shall be deeed to be indivisible. (1775)

'i+isible3 partial perfor!ance6 b0 da0s of )or5< !etrical units< or analogous

things

hen the obligation has for its object the e/ecution of a certain nuber of days of wor2, the

accoplishent of wor2 by etrical units, or analogous things which by their nature are susceptible ofpartial perforance, it shall be divisible. (1775)

-h0sicall0 di+isible3 subect to la) or )hat is intended b0 the parties

0owever, even though the object or service ay be physically divisible, an obligation is indivisibleif so provided by law or intended by the parties.

Not to do3 deter!ined b0 character of prestation

*n obligations not to do, divisibility or indivisibility shall be deterined by the character of theprestation in each particular case. (1775)

Indivisibility of an obligation may be:

%a* by law, as when ta#es are to be paid in full because the law does not

permit paying the same by installments;

%b* by stipulation of the parties or intention by them to treat the things asindivisible even if they are actually divisible;

%c* by the nature of the obligation;

Indi+isibilit0 is not solidarit0< +ice +ersa" C:;:=D he indivisibility of an obligation does not necessarily give rise to solidarity. or does solidarity of

itself iply indivisibility. (171E)

his is so because indivisibility refers to the object of the obligation which is capable of partialperforance while solidarity refers to the liability of one debtor to answer not only for his share of

the obligation but also for the shares of the other debtors. ithout solidary liability of thedebtors, the obligation is joint, and if its object is indivisible, it is a joint and indivisible

obligation.

:uantum eriut Principle!

'*B*3*"I -"*CA*-+ *f only partially perfored, the obligor can enforce his rightin proportion to the services perfored.

*'*B*3*"I -"*CA*-+ *f obligor fails to perfor the wor2 copletely, he cannotrecover on this principle because in indivisible obligations, partial perforance iseuivalent to nonperforance.





36/79

his principle allows recovery of the reasonable value of the wor2 done regardless ofany agreeent as to the value. *t entitles the party to Oas uch as he reasonably

sRdeservesP as distinguished fro uantu valebant or Oto as uch as what isreasonably worthP. he selleent of clai under this principle reuires application of

judgent and discretion and cannot be adjusted by siple arithetical process. (G.G.Manocop v. #A, C& 1771F6, @an. 15, 1FF3anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




37/79

which ay subseuently be directed against the others, so long as the debt has not beenfully collected. (1716)

Alternati+e Obligations

An alternative obligation is one "herein, out of t"o or more prestations, "hich may be given,only one is due. In short, there are several things due but the delivery of one is sufficient to

e%tinguish the obligation.

G/N/RAL R.L/S3

A" As to perfor!ance< perfor!ance !ust be3a" *o!plete% creditor cannot be co!pelled to recei+e part of one and another(11FF)

b" -ossible< la)ful< and )hich could ha+e been the obect of the obligation(17EE)

Art. 11FF. A person alternatively bound by different prestations shall copletely perfor one ofthe.he creditor cannot be copelled to receive part of one and part of the other underta2ing.

B" As to effect3 /ffect fro! ti!e of *o!!unication of *hoice b0 the one gi+en suchArt. 17E1. he choice shall produce no effect e/cept fro the tie it has been counicated.(11;;)

*" *HOI*/3 'ebtor

Art. 17EE. he right of choice belongs to the debtor, unless it has been e/pressly granted to thecreditor.

he debtor shall have no right to choose those prestations which are ipossible, unlawful or which couldnot have been the object of the obligation. (11;7)

/2ception3 e2pressl0 granted to *reditor

*reditorFs choice3 rules pending co!!unication of choice in to gi+e< to do< or notto do

a" If fortuituous< debtor is not liable for loss< thus creditor chooses fro!an0 of the re!aining" (17E5, no.1)

b" If fault of debtor< debtor replaces such )ith a price< creditor choosesfro! re!ainder plus the price )ith the right to da!ages (17E5, no. 7)

c" If all things are lost< creditor chooses fro! an0one of their prices plusda!ages as replaced b0 debtor" (17E5, no. ;)

4.6. Creditor must not be deprived of choice through fault of debtor. 'oss is replaced by

price.Art. 17E5. hen the choice has been e/pressly given to the creditor, the obligation shall cease to bealternative fro the day when the selection has been counicated to the debtor.$ntil then the responsibility of the debtor shall be governed by the following rules+(1) *f one of the things is lost through a fortuitous event, he shall perfor the obligation by delivering

that which the creditor should choose fro aong the reainder, or that which reains if only onesubsists8 cd i(7) *f the loss of one of the things occurs through the fault of the debtor, the creditor ay clai anyof those subsisting, or the price of that which, through the fault of the forer, has disappeared, with a

right to daages8(;) *f all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon

the price of any one of the, also with indenity for daages.he sae rules shall be applied to obligations to do or not to do in case one, soe or all of the prestations

should becoe ipossible. (11;6a)

'" As to loss3:" *hoice belongs to the debtor3

a" Loss is due to fortuitous e+ent

If all are lost< obligation is e2tinguished"

If ; or !ore of the obects re!ain< the debtor can deli+er an0

of the t)o re!aining

If onl0 one re!ains< a pure and si!ple obligation e2ists"





38/79

b" Loss is due to the debtorFs fault

If all are lost< the obligation is con+erted into !onetar0

consideration as inde!nit0 for the da!ages ta5ing intoconsideration the +alue of the last thing lost plus da!ages"

If ; or !ore obects re!ain< the debtorcan choose )hich one

to deli+er bet)een the t)o< but )ithout da!ages"

If onl0 one re!ains< there is no !ore alternati+ce obligation

but a pure and si!ple obligation" What he should deli+er isthe re!aining obect )ithout da!ages"

;" *hoice belongs to the creditora" If the loss is due to a fortuitous e+ent< the effects are the sa!e as )here

the right of choice belongs to the debtor"b" Loss is due to debtorFs fault

If none re!ains< the obligation is con+erted into !onetar0

consideration ta5ing into account the +alue of an0 of theobects chosen b0 the creditor< plus da!ages" 'a!agesare a)arded because the creditor )as depri+ed of hisright to choose"

If t)o or !ore re!ain< the obligation is still alternati+e"

The right of the creditor is to choose bet)een the t)ore!aining obects )ith da!ages" If he chooses the lostobect< the debtor is liable for the +alue plus da!ages"

If onl0 one re!ains< the obligation is con+erted into a

si!ple one" The creditor !a0 choose the re!aining obect

)ith da!ages" If he chooses an0one of the t)o )hich)ere lost< the debtor !ust pa0 the +alue plus da!ages"

Art. 17E7. he debtor shall lose the right of choice when aong the prestations whereby he isalternatively bound, only one is practicable.

Art. 17E;. *f through the creditorJs acts the debtor cannot a2e a choice according to the ters ofthe obligation, the latter ay rescind the contract with daages. (n)Art. 17E:. he creditor shall have a right to indenity for daages when, through the fault of thedebtor, all the things which are alternatively the object of the obligation have been lost, or the copliance

of the obligation has becoe ipossible.he indenity shall be fi/ed ta2ing as a basis the value of the last thing which disappeared, or that of theservice which last becae ipossible.'aages other than the value of the last thing or service ay also be awarded.

*n suary+ Alternative obligations are converted to siple obligations when+

The debtorFs choice is co!!unicated to the creditor" The creditor co!!unicated his choice to the debtor< if gi+en the right to

choose"

Onl0 one of the prestations due is practicable"

(acultati+e3 Substitution of -restations C:;=>D

G/N/RAL R.L/3 Loss or deterioration of substitute in case of dela0< fraud< or negligence"- No liabilit0 unless it has been substituted as !ain prestation" (17E6)

4.6. one is primary, other is merely contingent. If both "ere primary, it "ould not befacultative but rather alternative

Art. 17E6. hen only one prestation has been agreed upon, but the obligor ay render another in

substitution, the obligation is called facultative.he loss or deterioration of the thing intended as a substitute, through the negligence of the obligor, doesnot render hi liable. "ut once the substitution has been ade, the obligor is liable for the loss of thesubstitute on account of his delay, negligence or fraud. (n)

Alternati+e +s" (acultati+e

*n A, there are different prestations, but the debtor shall copletely perfor one of the,

while in G, there is only one prestation but the debtor ay perfor another in substitution.





39/79

*n A, if it is ipossible to give all e/cept one, the last one ust still be given8 while in G, if it is

ipossible to give the principal, the substitute does not have to be given8 and if it isipossible to give the substitute, the principal ust still be given.

*n A, the right to choose ay be given either to the debtor or creditor8 while in G, the right to

choose is given only to the debtor.

/ffect of the Loss of the Thing3

6efore substitution! *f the principal is lost due to fortuitous event, obligation is

e/tinguished8 if due to debtor%s fault, he is liable for daages. *f the thing intended as a

substitute is the one which was lost, with or without debtor% fault, the obligation to deliver thesubstitute is e/tinguished because what is to be delivered is the principal object and not the

substitute. he loss of this substitute is iaterial.

After substitution! *f the principal thing is lost, the debtor is no longer liable whatever be

the cause of the loss, because it is no longer due. *f the substitute is lost due to fortuitous

event, the obligation is e/tinguished8 if due to debtor%s fault, he is liable for daages.

-/NAL *LA.S/SIn an obligation "ith a penal clause, the penalty shall substitute the indemnity for damages

and the payment of interest in case of non*compliance, if there is no stipulation to the contrary.A penal clause is an accessory underta&ing to assume greater liability in case of breach.

-urposes3

o ensure perforance of the obligation. o substitute a penalty for the indenity of daages and the payent of interest in

case of noncopliance. o punish the debtor for the nonfulfillent of his obligation.

SS "asically to provide for liuidated daages, while strengthening the coercive force of the obligation by

the threat of greater responsibility in the event of breach.

/2ceptions )hen da!ages and interest !a0 be de!andable b0 the creditors aside fro! penalt03

hen it is stipulated.

hen the debtor is guilty of fraud.

hen the debtor refuses to pay the penalty.

A" Rules in non%e2istence of -enal *lause3

'a!ages hose who in the perforance of their obligations are guilty of fraud, negligence, or

delay, and those who in any anner contravene the tenor thereof, are liable for daages. (113anche9.acads?=@a>@acob.design? "obbie>3taMaria.printing? =&osanne>Mede9.hr?




40/79

a" Substitute for da!ages and interest

'a!ageshose who in the perforance of their obligations are guilty of fraud, negligence, ordelay, and those who in any anner contravene the tenor thereof, are liable for daages. (113taMaria.printing? =&osanne>Mede9.hr?

=@apee>'eeon.poli1la)? =Ascheia>uul.re!1la)? =!aul>3orino@udy>

Date post:	04-Jun-2018
Category:	Documents
Upload:	broy-d-brium
View:	215 times
Download:	0 times

YOURSOblicon.doc

Documents