Obligations and Contracts Reviewer by Chi[1]

7/21/2019 Obligations and Contracts Reviewer by Chi[1]

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OBLIGATIO

NS ANDCONTRACTS

Expanded CourseOutline Professor E.A. Labita

!ari"#i Santos $ %P La& B'()'


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 2of 110!ari"#i E. Santos $ %P La& B'()'

University of the PhilippinesCollege of Law

OBLIGATION AN! CONT"ACT

Professor #$ A$ La%itag'ndSe0ester+ A, '((-'((/

Title I. OBLIGATIONS

Chapter I$ General Provisions

CONC#PT O& OBLIGATION

!e'nition Art ))12Obliation is ajuridical necessityto i3e+ to do or not to do.

OBLIGATOR, RELATION IN ITS TOTALIT,4 T#e 5uridi"al relation+ "reated b6 3irtue of "ertain fa"ts+

bet&een t&o or 0ore persons+ ereb6 t#e (re)itoror obligee+ 0a6 de0and of t#e )e%toror obligor+a de7nite prestation.onPASSI8E SIDE4 9#ere t#ere is a ri#t or po&er to de0and+ t#ere is a "orrelati3e obliation or ani0position upon a person of a de7nite "ondu"t.

Criti(is* of )e'nition+It is one sided+ re:e"ts onl6 t#e debtor;s side of t#e aree0ent < San"#e=Ro0an

#le*ents of O%ligation

). A"ti3e sub5e"t < po&er to de0and t#e prestation >obliee?"reditor@ Personal'. Passi3e sub5e"t < bound to perfor0 t#e prestation >oblior?debtor@ ele0ents

Te0porar6 inde7niteness of a sub5e"t e.. neotiable instru0ent pa6able to bearer or a pro0iseof a pri=e or a re&ard for an6one perfor0in a "ertain a"t

. Prestation or Ob5e"t < not a t#in but a parti"ular "ondu"t of t#e debtor+ but al&a6s a prestation

KINDS OF PRESTATIONa. TO GI8E < "onsists in t#e deli3er6 of a 0o3able or an i00o3able t#in+ in order to "reate a

real ri#t or for t#e use of t#e re"ipient or for its si0ple possession or in order to return to itso&ner

b. TO DO < all inds of &or or ser3i"es+ et#er 0ental or p#6si"al". NOT TO DO < "onsists in abstainin fro0 so0e a"t+ in"ludes not to i3e+ bot# bein

neati3e obliations

REQUISITES OF PRESTATIONa. P#6si"all6 and 5uridi"all6 possibleb. Deter0inate or at least deter0inable a""ordin to preestablis#ed ele0ents or "riteria". Possible eui3alent in 0one6

Pe"uniar6 interest need not be for one of t#e parties+ it 0a6be for t#e bene7t of rdperson?s distin"t fro0 t#e parties to t#e "ontra"t

Prestation need not be of e"ono0i" "#ara"ter to #a3e pe"uniar6 3alue+ if it does not #a3e3alue t#e la& attributes to it e"ono0i" 3alue e.. 0oral and no0inal da0aes

F. E"ient "ause or 5uridi"al tie or vinculum juris< relation bet&een oblior and oblie i"# isestablis#ed4

B6 la& >e.. relation of #usband and &ife i3in rise to t#e obliation to support@


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,of 110!ari"#i E. Santos $ %P La& B'()'

B6 bilateral a"ts >e.. "ontra"ts i3in rise to t#e obliations stipulated t#erein@ B6 unilateral a"ts >e.. "ri0es and uasideli"ts@

1. Form in which he oblig!ion is m!ni"ese# $ "annot be "onsidered essential

!istin(tion %etween Nat-ral an) Civil O%ligation

NATU"AL CI.ILAs toenfor"eabilit6

Not b6 "ourt a"tions+ but b6ood "ons"ien"e of debtor

Court a"tion or t#e "oer"i3epo&er of publi" aut#orit6

As to basis Euit6 and natural 5usti"e Positi3e la&

OU"C# O& OBLIGATION

A. LA/HExLeeArt ))1- Obliations deri3ed fro0 la& are NOT PRESU%ED. Onl6 t#ose expressl6 deter0inedin his&o#eor in s'eci!l l!wsare de0andable+ and s#all be reulated b6 t#e'rece's o" he l!wi"#establis#es t#e0J and as to wh! h!s no been "oreseen+ b6 t#e pro3isions of t#is boo.

Go3erned b6 t#e la& itself

Aree0ent of t#e parties is not ne"essar6 e.. tax "olle"tion+ Art FF- and Art F-- Not presu0ed+ onl6 t#ose expressl6 pro3ided are enfor"eable

B. CONT"ACTHExContra"tu+ Culpa Contra"tualArt ))1/ Obliations arisin fro0 conr!cs h!ve he "orce o" l!wbet&een t#e "ontra"tin partiesand s#ould be com'lie# wihin goo# "!ih.

Expresses prin"iple of !uonom( o" will+ presupposes t#at "ontra"t is 3alid and enfor"eable PRE)&ONTRA&TUA* O+*I,ATION4 Da0aes "an be re"o3ered en "ontra"t is not perfe"ted if4

o OKers is "lear and de7nite + leadin oKeree in ood fait# to in"ur expenses in expe"tation ofenterin into a "ontra"t

o 9it#dra&al of t#e oKer 0ust be &it#out an6 illeiti0ate "ause. If oKeror4 ,uil( o" "!ul or negligence+ liabilit6 &ould be based on Art ')2

No "!ul or negligence+ &it#dra&al &as in abuse of ri#t+ liabilit6 &ould be based on Art)/ e.. brea"# of pro0ise to 0arr6

Art )(1 A "ontra"t is a 0eetin of 0inds bet&een t&o persons ereb6 one binds #i0self+ &it#respe"t to t#e ot#er+ to i3e so0et#in or to render so0e ser3i"e.

C. UAICONT"ACT or !#LICTHMuasi ExContra"tuArt ))2( Obliations deri3ed fro0 uasi"ontra"ts s#all be sub5e"t to t#e pro3isions of C#apter )+Title 8II.Art ')F' Certain la&ful+ 3oluntar6 and unilateral a"ts i3e rise to t#e 5uridi"al relation of uasi"ontra"t to t#e end t#at no one s#all be un5ustl6 enri"#ed or bene7ted at t#e expense of anot#er.

uridi"al relation i"# arises fro0 "ertain a"ts t#at are4

*A-FU*>aainst "ri0e@+ .O*UNTAR/>aainst uasideli"t < based on nelien"e or 0ere la" of foresi#t@ UNI*ATERA*>aainst "ontra"t in i"# t#ere are t&o parties@

E.. Art ')FF Art ')1(Art ')1F Art ')2FArt ')2 Art ')2-Art ')F Art ')1

in)s of -asi(ontra(ts

). Negotiorum gestio>o"ious 0anae0ent@Art ')FF 9#oe3er 3oluntaril6 taes "#are of t#e aen"6 or 0anae0ent of t#e business orpropert6 of anot#er+ &it#out an6 po&er fro0 t#e latter+ is o%lige) to (ontin-e the sa*euntil t#e


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ter0ination of t#e aKair and its in"idents+ or to reuire t#e person "on"erned to substitute #i0+ if t#eo&ner is in a position to do so. T#is 5uridi"al relation DOES NOT arise in eit#er of t#ese instan"es4

01 9#en t#e propert6 or business is noneglece# or !b!n#one#21 If in fa"t t#e 0anaer #as been !cil( !uhori3e# b( he owner

'. Solutio indebiti>pa60ent not due@Art ')1F If so0et#in is re"ei3ed en t#ere is no righ o #em!n# i+ and it &as un#ul( #elivere#

hroughmis!4e+ t#e o%ligation to ret-rnit arises.

. Ot#er uasi"ontra"ts >support i3en b6 straners and ot#er Good Sa0aritans@

Art ')2F 9#en+ &it#out t#e no&lede of t#e person oblied to i3e support+ it is i3en b6 a straner+ t#e latter s#all#a3e a righ o cl!imt#e sa0e fro0 t#e for0er+ %NLESS it appears t#at #e a3e it ou o" 'ie(and wihouinenionof bein repaid.

Art ')21 9#en funeral expenses are borne b6 a t#ird person+ &it#out t#e no&lede of t#ose relati3es o &ereoblied to i3e support to t#e de"eased+ said relati3es s#all reimburse he hir# 'erson+ s#ould t#e latter"lai0 rei0burse0ent.

Art ')22 9#en t#e person oblied to support an orp#an+ or an insane or ot#er indient person un5ustl6 refuses to i3esupport to t#e latter+ an6 t#ird person 0a6 furnis# support to t#e need6 indi3idual+ &it# ri#t ofrei0burse0ent fro0 t#e person oblied to i3e support. T#e pro3isions of t#is arti"le appl6 en t#e fat#er or0ot#er of a "#ild under ei#teen 6ears of ae un5ustl6 refuses to support #i0.

Art ')2 9#en t#rou# an a""ident or ot#er "ause a person is in5ured or be"o0es seriousl6 ill+ and #e is treated or#elped ile #e is not in a "ondition to i3e "onsent to a "ontra"t+ #e s#all be li!ble o '!( "or he services o"he 'h(sici!nor ot#er person aidin #i0+ UN*ESSt#e ser3i"e #as been rendered out of pure enerosit6.

Art ')2- 9#en durin a 7re+ :ood+ stor0+ or ot#er "ala0it6+ propert6 is sa3ed fro0 destru"tion b6 anot#er person&it#out t#e no&lede of t#e o&ner+ t#e latter is boun# o '!( he "ormer jus com'ens!ion.

Art ')2/ 9#en t#e governmen+ upon t#e failure of an6 person to "o0pl6 &it# #ealt# or safet6 reulations "on"erninpropert6+ undertaes to do t#e ne"essar6 &or+ e3en o3er #is ob5e"tion+ #e s#all be li!ble o '!( hee5'enses.

Art ')( 9#en b6 a""ident or ot#er fortuitous e3ent+ 0o3ables separatel6 pertainin to t&o or 0ore persons are"o00inled or "onfused+ t#e rules on co)ownershi's#all be appli"able.

Art ')) T#e ri#ts and obliations of t#e 6n#er o" los 'erson!l 'ro'er(s#all be o3erned b6 Arti"les )/ and '(.

Art ')' T#e ri#t of e3er6 'ossessor in goo# "!ihto rei0burse0ent for ne"essar6 and useful expenses is o3ernedb6 Arti"le 1F2.

Art ') 9#en a t#ird person+ &it#out t#e no&lede of t#e debtor+ pa6s t#e debt+ t#e ri#ts of t#e for0er areo3erned b6 Arti"les )'2 >re"o3er at #as been bene7"ial to debtor@ and )' >"annot "o0pel "reditor tosubroate pa6or in #is ri#ts@.

Art ')F 9#en in a s0all "o00unit6 a nationalit6 of t#e in#abitants of ae de"ide upon a 0easure for prote"tionaainst la&lessness+ 7re+ :ood+ stor0 or ot#er "ala0it6+ an6 one o ob5e"ts to t#e plan and refuses to"ontribute to t#e expenses but is bene7ted b6 t#e pro5e"t as exe"uted s#all be li!ble o '!( his sh!re o" s!i#e5'enses.

Art ')1 An6 person o is "onstrained to pa6 t#e taxes of anot#er s#all be enile# o reimbursemenfro0 t#e latter.

D. ACT or O4IION PUNI5#! B6 LA/HExDeli"tu+ Exale7"io+ Culpa Cri0inalArt ))2) Ci3il obliations arisin fro0 "ri0inal oKense s#all be o3erned b6 t#e penal la&s+ sub5e"t

to t#e pro3isions of Art ')+ and of t#e pertinent pro3isions of C#apter '+ Preli0inar6 Title onQu0an Relations and of Title 8III of t#is Boo+ reulatin da0aes.

Art )((+ RPC E3er6 person "ri0inall6 liable for a felon6 is also "i3ill6 liable.

GENERAL R%LE4 Ci3il liabilit6 is a ne"essar6 "onseuen"e of "i3il liabilit6o Reason4 Co00ission of "ri0e "auses not onl6 0oral e3il but also 0aterial da0ae.o Art )'+ RPC Exe0ptin "ir"u0stan"esJ do not in"ur liabilit6 but are NOT E7E%PT fro0 "i3il

liabilit6). I0be"ile or insane person+ unless a"tin in a lu"id inter3al'. Person under / 6ears of ae. Person o3er / 6ears of ae and under )1+ unless a"tin &it# dis"ern0ent


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F. A"tin under "o0pulsion of an irresistible for"e1. A"tin under i0pulse of an un"ontrollable fear of an eual or reater in5ur6

ECEPTION >"ri0es &it#out "i3il liabilit6@o Cri0inal "onte0pto Ga0blino Tra" 3iolations

-%si)iary Lia%ility for Cri*e). Inneepers+ ta3ern eepers and an6 ot#er persons or "orporations s#all be civill( li!blefor "ri0es

"o00itted in t#eir establis#0ent+ in all "ases ere a 3iolation of 0uni"ipal ordinan"es or so0eeneral or spe"ial poli"e reulation s#all #a3e been "o00itted b6 t#e0 or t#eir e0plo6ees.

'. Also appli"able to e0plo6ers+ tea"#ers+ persons and "orporations enaed in an6 ind ofindustr6 for felonies "o00itted b6 t#eir ser3ants+ pupils+ apprenti"es or e0plo6ees in dis"#areof t#eir duties.

To #old e0plo6ers s-%si)iarily lia%le for C"I4#of an e0plo6ee4 "o00itted in t#eperfor0an"e of t#e fun"tions or duties of t#e e0plo6ee.

But if a"tion is %ase) on CONT"ACT+ and not upon pre3ious "on3i"tion of e0plo6ee fora "ri0e4 e0plo6er;s liabilit6 is PRIAR, and INDEPENDENT+ not 0erel6 subsidiar6.

Civil lia%ility arising fro* Cri*e

Art ))2) Ci3il obliations arisin fro0 "ri0inal oKenses s#all be governed by the penal laws+sub5e"t to t#e pro3isions of Arti"le ')+ and of t#e pertinent pro3isions of C#apter '+ Preli0inar6Title+ on Qu0an Relations+ and of Title 8III of t#is Boo+ reulatin da0aes.

Rules on Cri0inal Pro"edure Rule ))) 9#en a "ri0inal a"tion is instituted+ t#e "i3il a"tion for t#ere"o3er6 of "i3il liabilit6 arisin fro0 t#e oKense "#ared s#all be #eeme# insiue# wih hecrimin!l !cionUN*ESSt#e oKended part6 &ai3es he civil !cion+ reserves he righ o insiue ise'!r!el(or institutes t#e "i3il a"tion'riorto t#e "ri0inal a"tion.

#8tent of Civil Lia%ilityArt )(F+ RPC 9#at is in"luded in "i3il liabilit6

). "estit-tion< t#in itself is restored >Art )(1+ RPC@

'. "eparation of )a*age (a-se)< "ourt deter0ines a0ount of da0ae >Art )(2+ RPC@. In)e*ni'(ation for (onse9-ential )a*ages< not onl6 "aused t#e rdpart6 but also

t#ose suKered b6 #is fa0il6 or b6 a rdperson b6 reason of t#e "ri0e >Art )(+ RPC@

Ci3il liabilit6 for "ri0es is extinuis#ed t#e sa0e "auses pro3ided in t#e CC for t#eextinuis#0ent of ot#er obliations.

GENERAL R%LE4 Cri0inal a"tion bars "i3il a"tion for t#e sa0e oKense Ci3il a"tion for re"o3er6 of "i3il liabilit6 arisin fro0 t#e oKense is im'lie#l( insiue#&it# t#e

"ri0inal a"tionECEPTIONS4

OKended part6 reserves he righto institute it separatel6

T#e la& pro3ides for an independent "i3il a"tion >i.e. "i3il a"tion 0a6 pro"eed to 7nal 5ud0entirrespe"ti3e of result of t#e "ri0inal a"tion and 7lin of t#e "ri0inal a"tion does not suspend t#e

"i3il a"tion@o obliations arisin fro0 t#e a"t or o0ission "lai0ed to be "ri0inal >Art )@o 3iolations of "onstitutional ri#ts and liberties of indi3iduals >Art '@o defa0ation+ fraud or p#6si"al in5uries >Art @o refusal or failure of 0e0bers of poli"e for"e to render prote"tion to life or propert6 >Art

F@

E. UAI!#LICTHMuasi ExDeli"to+ Muasi Exale7"io+ Culpa Auilana+ Tort >"o00on la&@Art ))2' Obliations deri3ed fro0 uasideli"ts s#all be o3erned b6 t#e pro3isions of C#apter '+Title 8II of t#is Boo and b6 spe"ial la&s.Art ')2 9#oe3er b6 a"t or o0ission "auses da0ae to anot#er+ t#ere bein fault or nelien"e+ isoblied to pa6 for t#e da0ae done. Su"# fault or nelien"e en t#ere is no preexistin


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae :of 110!ari"#i E. Santos $ %P La& B'()'

"ontra"tual relation bet&een t#e parties+ is "alled 8u!si)#elicand is o3erned b6 t#e pro3isions oft#is C#apter.

BASIS4 %ndisputable'rinci'le o" e8ui(J fault or nelien"e "annot pre5udi"e an6one else besides its!uhorand in no "ase s#ould its "onseuen"es be borne b( him who su9erst#e #ar0 produ"ed b6 su"#fault or nelien"e.

an is responsible not onl6 for #is 3oluntar6 &illful a"ts+ exe"uted "ons"iousl6 and

intentionall6 but also for t#ose a"ts perfor0ed &it# la" of foresi#t+ "are anddilien"e+ i"# "ause 0aterial #ar0 to so"iet6 or to ot#er indi3iduals.

NE9 SO%RCES O OBLIGATION < enerall6 re"oni=ed b6 la& alt#ou# not in"luded in t#e "ode). %n5ust enri"#0ent >CC "ateori=ed under uasi"ontra"t@'. %nilateral de"laration of &ill. Abuse of ri#ts >CC "ateori=ed under uasideli"t@

Test of Negligen(e+ 9ould a prudent 0an+ in t#e position of t#e person to o0 nelien"e isattributed+ foresee #ar0 to t#e person in5ured as a reasonable "onseuen"e of t#e "ourse about to bepursued

E*E%ENTS OF NE,*I,EN&E

a@ dut6 on t#e part of t#e defendant to prote"t t#e plaintiK fro0 in5ur6 of i"# t#e latter"o0plainsb@ failure to perfor0 su"# dut6"@ an in5ur6 to t#e plaintiK t#rou# su"# failure

KINDS OF NE,*I,EN&E0: &ul'! !8uil!n! < or "ulpa extra"ontra"tualJ nelien"e as a sour"e of obliation+ a

8u!si)#elic2: &ul'! conr!cu!l < nelien"e in t#e perfor0an"e of a "ontra"t;: &ul'! crimin!l < "ri0inal nelien"e

!istin(tion %etween C-lpa A9-ilana an) C-lpa Contra(t-al

CULPA AUILANA;(-lpa e8tra(ontra(t-al< CULPA CONT"ACTUAL

Go3erned b6 Art ')2 to ')/F Go3erned b6 Art ))/ e se8uelNelien"e as a sour"e of obliation Nelien"e in t#e perfor0an"e of a "ontra"tault or nelien"e i"# "onstitutes anindependent sour"e of obliation bet&eenparties not pre3iousl6 bound

ault or nelien"e of t#e debtor as anin"ident in t#e ful7ll0ent of an existinobliation

Nelien"e of defendant s#ould be t#eproxi0ate "ause of da0ae if liabilit6 is toatta"#

!istin(tion %etween -asi)eli(ts an) Cri*es

A TO= UAI!#LICT C"I4#

Nature of ri#t 3iolatedJ An obliation "an arisefro0 bot# "ri0e anduasideli"t at t#e sa0eti0e >e.. p#6si"alin5uries@ B%T "an onl6re"o3er da0ae on"eand not t&i"e

Pri3ate ri#tsJ &ron aainst t#eindi3idual Publi" ri#tJ &ron aainst t#e state

Condition of 0ind Cri0inal intent is not ne"essar6. Possiblet#at t#ere is not "ri0inal "#are but onl6"i3il liabilit6 for da0aes arisin fro0uasideli"t

Cri0inal intent is ne"essar6 for t#eexisten"e of liabilit6+ &it#out it+ t#ere "anbe no "ri0e

Leal basis of liabilit6 A"tionable in an6 a"t or o0issionerein fault or nelien"e inter3enes

Not as broad as uasideli"t+ "an bepunis#ed onl6 en t#ere is a penal la&


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae >of 110!ari"#i E. Santos $ %P La& B'()'

"learl6 penali=in itLiabilit6 for da0aes Liabilit6 for da0aes to t#e in5ured part6 Certain "ri0es do not #a3e "i3il liabilit6

e.. "onte0pt+ a0blin+ 3iolations ofordinan"es and tra" reulations ennobod6 is in5ured

or0s of redress Reparation of t#e in5ur6 suKered b6 t#ein5ured part6 "o0pensation+inde0ni7"ation

ine >a""ruin to t#e publi" treasur6@+i0prison0ent or bot# punis#0ent

A0ount of e3iden"e Preponderan"e of e3iden"e Be6ond reasonable doubtCo0pro0ise Can be "o0pro0ised as an6 ot#er "i3il

liabilit6Can ne3er be "o0pro0ised

"e9-isites of Lia%ility -n)er -asi!eli(ts1. T#ere exists a wrong"ul !c or omissioni0putable to t#e defendant b6 reason of #is fault or

negligence2. T#ere exists a damage or injury3. Direct causal connectionor relation of "ause and eKe"t bet&een t#e fault or nelien"e and t#e

da0ae or in5ur6 ORt#at t#e fault or nelien"e be t#e "ause of da0ae or in5ur6o DOCTRINE O PROIATE CA%SE4 su"# adeuate and e"ient "ause as+ in t#e natural

order of e3ents+ and under t#e parti"ular "ir"u0stan"e surroundin t#e "ause+ &ouldne"essaril6 produ"e t#e e3ent

o NAT%RAL AND PROBABLE CA%SE4 eit#er en it a"ts dire"tl6 produ"in t#e in5ur6+ or setsin 0otion ot#er "auses so produ"in it and for0in a "ontinuous "#ain in naturalseuen"e do&n to t#e in5ur6

o CONC%RRENT CA%SE4 if t&o "auses operate at t#e sa0e ti0e to produ"e a result i"#0i#t be produ"ed b6 eit#er independentl6 of t#e ot#er+ ea"# of t#e0 is a proxi0ate"ause

o 9#en t#e plaintiK;s own negligen(e&as t#e i00ediate and proxi0ate "ause of #isin5ur6+ #e c!nno recover #!m!ges.

o B%T if nelien"e is only (ontri%-tory+ t#e i00ediate and proxi0ate "ause of t#e in5ur6is defendant;s la" of due "are+ t#e plaintiK m!( recover #!m!ges+ t#e "ourts s#all0itiate t#e da0aes to be a&arded >Art ')/@

Lia%ility for fa-lt of others Obliation arisin fro0 uasideli"t is de0andable not onl6 for one;s

o&n a"ts or o0issions+ but also for hose o" 'ersons "or whom one is res'onsible.

Art ')-( T#e obliation i0posed b6 Arti"le ')2 is de0andable not onl6 for ones o&n a"ts or o0issions+ but also for t#ose ofpersons for o0 one is responsible.

T#e fat#er and+ in "ase of #is deat# or in"apa"it6+ t#e 0ot#er+ are responsible for t#e da0aes "aused b6 t#e 0inor "#ildreno li3e in t#eir "o0pan6.

Guardians are liable for da0aes "aused b6 t#e 0inors or in"apa"itated persons o are under t#eir aut#orit6 and li3e int#eir "o0pan6.

T#e o&ners and 0anaers of an establis#0ent or enterprise are lie&ise responsible for da0aes "aused b6 t#eir e0plo6eesin t#e ser3i"e of t#e bran"#es in i"# t#e latter are e0plo6ed or on t#e o""asion of t#eir fun"tions.E0plo6ers s#all be liable for t#e da0aes "aused b6 t#eir e0plo6ees and #ouse#old #elpers a"tin &it#in t#e s"ope of t#eirassined tass+ e3en t#ou# t#e for0er are not enaed in an6 business or industr6.

T#e State is responsible in lie 0anner en it a"ts t#rou# a spe"ial aentJ but not en t#e da0ae #as been "aused b6t#e o"ial to o0 t#e tas done properl6 pertains+ in i"# "ase at is pro3ided in Arti"le ')2 s#all be appli"able.

Lastl6+ tea"#ers or #eads of establis#0ents of arts and trades s#all be liable for da0aes "aused b6 t#eir pupils and studentsor apprenti"es+ so lon as t#e6 re0ain in t#eir "ustod6.

T#e responsibilit6 treated of in t#is arti"le s#all "ease en t#e persons #erein 0entioned pro3e t#at t#e6 obser3ed all t#edilien"e of a ood fat#er of a fa0il6 to pre3ent da0ae.

Art ')-+ C T#e s"#ool+ its ad0inistrators and tea"#ers+ or t#e indi3idual+ entit6 or institution enaed in "#ild are s#all #a3espe"ial parental aut#orit6 and responsibilit6 o3er t#e 0inor "#ild ile under t#eir super3ision+ instru"tion or "ustod6.

Aut#orit6 and responsibilit6 s#all appl6 to all aut#ori=ed a"ti3ities et#er inside or outside t#e pre0ises of t#e s"#ool+ entit6or institution.


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ?of 110!ari"#i E. Santos $ %P La& B'()'

Art ')/+ C T#ose i3en t#e aut#orit6 and responsibilit6 under t#e pre"edin Arti"le s#all be prin"ipall6 and solidaril6 liablefor da0aes "aused b6 t#e a"ts or o0issions of t#e une0an"ipated 0inor. T#e parents+ 5udi"ial uardians or t#e personsexer"isin substitute parental aut#orit6 o3er said 0inor s#all be subsidiaril6 liable.

T#e respe"ti3e liabilities of t#ose referred to in t#e pre"edin pararap# s#all not appl6 if it is pro3ed t#at t#e6 exer"ised t#eproper dilien"e reuired under t#e parti"ular "ir"u0stan"es.

All ot#er "ases not "o3ered b6 t#is and t#e pre"edin arti"les s#all be o3erned b6 t#e pro3isions of t#e Ci3il Code on uasideli"ts.

!iligen(e of #*ployers @ An e0plo6er 0a6 be #eld "i3ill6 liable for t#e uasideli"t or "ri0e of #ise0plo6ee.

LIABILIT, O EPLO,ERS OR EPLO,EES;UAI!#LICT ;Art 21?0 CCArt ))/))/'@ ti0e of enfor(ea%ility

P%RE4 de0andable at on"e CONDITIONAL4 ful7ll0ent or extinuis#0ent depends upon a future and un"ertain e3ent

2$ 9QEN4 9it# a period or ter0 >Art ))/))/-@ ti0e of )e*an)a%ility

PERIOD4 its ful7ll0ent or extinuis#0ent depends upon a future and "ertain e3ent

,$ 9QAT4 Alternati3e and a"ultati3e >Art ))//)'(2@ 0ultiple o%e(ts

ALTERNATI8E4 0ultiple prestations but debtor &ill perfor0 one or some bu no !ll+ dependinon ose "#oi"e it is

AC%LTATI8E4 0ultiple prestations &it# a'rinci'!l oblig!ion !n# subsiue 'res!ions+"#oi"e is enerall6 i3en to t#e DEBTOR

3$ 9QO4 oint and Solidar6 >Art )'()'''@ 0ultiple s-%e(ts+ fo"uses on t#e tie t#at bonds t#eparties

OINT4 ea"# "an be 0ade to pa6 onl( his sh!rein t#e obliation

SOLIDAR,4 one "an be 0ade to'!( "or he whole oblig!ionsub5e"t to rei0burse0ent

7$ QO94 Di3isible and Indi3isible >Art )'')''1@perfor*an(eof t#e prestation+ not to t#et#in i"# is ob5e"t t#ereof+ et#er it "an be ful7lled in parts or not

:$ 9it# a penal "lause >Art )''2)'(@ a((essoryundertain to assu0e reater liabilit6 in"ase of brea"#

B$ e(on)ary Classi'(ation

1. Leal >Art ))1-@ fro0 la&Con3entional >Art ))1/@ fro0 "ontra"tsPenal >Art ))2)@ fro0 "o00ission of a "ri0e

2. >As to sub5e"t 0atter@ Real >to i3e@ and Personal >to do or not to do@

3. >As to sub5e"t 0atter of obliation@ Deter0inate and Generi"

4. Positi3e >to i3e+ to do@ and Neati3e >not to i3e+ not to do@

. %nilateral < onl6 one part6 bound to perfor0 obliation+ one debtor and one "reditor >e.. si0pleand re0unerator6 donation+ to i3e support@

Bilateral < OR s6nalla0ati" "ontra"ts+ e0ptio 3enditoJ t&o parties are re"ipro"all6 bound t#usdebtor and "reditor of ea"# ot#er >e.. pur"#ase and sale+ ease@

!. Indi3idual < onl6 one sub5e"tColle"ti3e < se3eral sub5e"t

". A""essor6 < depends on t#e prin"ipal obliation e.. plede+ 0ortaePrin"ipal < 0ain obliation

#. As to ob5e"t or prestationa. Si0ple < onl6 one prestationb. ultiple < t&o or 0ore prestation


10/110


i. Con5un"ti3e < all 0ust be perfor0edii. Distributi3e < one or so0e 0ust be perfor0ed

a. Alternati3e < 0ore t#an one prestation but one part6 0a6 "#oose i"# oneJ se3eral aredue but onl6 one 0ust be ful7lled at t#e ele"tion of t#e debtorb. a"ultati3e < 0ain prestation and a substitute prestation and it is t#e debtor o"#oosesJ onl6 one t#in is due but t#e debtor #as reser3ed t#e ri#t to substitute it &it#anot#er

$. Possible < "apable of bein perfor0ed+ eit#er p#6si"all6 or leall6I0possible < p#6si"all6 or leall6 in"apable of bein done

Chapter II$ Nat-re an) #De(ts of O%ligations

IN! O& P"#TATION

A$ O%ligation TO GI.#

P#CI&IC T5ING ;)eter*inate< G#N#"IC T5ING ;in)eter*inateArt )'/)@ Defe"ts of t#e t#in 0a6 be &ai3ed b6 t#e "reditor I

o Expressl6 de"lareso 9it# no&lede t#ereof+ #e a""epts t#e t#in &it#out protest or disposes or

"onsu0es it &ai3er of defe"t

%$ to preserve thing with )-e (areArt ))2 E3er6 person oblied to i3e so0et#in is also obliged to ta&e careof it &it# t#e

proper diligenceof a good father of a family+ UN*ESSt#e la& or t#e stipulation of t#eparties reuires anot#er standard of "are.

9#64 t#e obliation to deli3er6 &ould be illusor6. 9#at ind of dilien"e4 DILIGENCE O GOOD ATQER O AIL,J elaborated in Art

))o ailure to preser3e t#e t#in Liabilit6 for da0aeso B%T if due to ORT%ITO%S E8ENTS or ORCE AE%REExe0pted fro0

responsibilit6

($ to )eliver the a((essions an) a((essoriesArt ))22 Obliation to i3e a deter0inate t#in in"ludes t#at of delivering all its accessionsand accessories+ e3en t#ou# t#e6 0a6 not #a3e been 0entioned.

a6 be uali7ed b6 "ontrar6 intentions of t#e parties+ e.. ex"lude deli3er6 ofa""ession or a""essor6 of t#e t#in.

ACC#ION ACC#O"I#In"ludes e3er6t#in i"# is produ"ed b6 a t#in+ or T#ose t#ins i"#+ destined for e0bellis#0ent+ use or


11/110


i"# is in"orporated or atta"#ed t#ereto+ eit#ernaturall6 or arti7"iall6. Does not in"lude fruits be"auseArt ))2F 0entioned it alread6A""esion "ontinua i"# in"ludes4

).Accesion n!ur!l< e.. allu3ion'.Accesion in#usri!l< e.. buildin+ plantin+

so&in

preser3ation of anot#er t#in or 0ore i0portant+ #a3efor t#eir ob5e"t t#e "o0pletion of t#e latter for i"#t#e6 are indispensable or "on3enient.

)$ to )eliver the fr-itsArt ))2F Par ) T#e "reditor #as a right to the fr-itsof t#e t#in fro0 t#e time the obligationto deliverit arises. Qo&e3er+ t#ere is no real rightuntil t#e sa0e #as been deli3ered to #i0.

Non nu#is '!cis> se# r!#iione #omin! rerum r!s"erenur t#e o&ners#ip of t#insis transferred not onl6 b6 0ere aree0ents but b6 deli3er6

REA* RI,=T< po&er belonin to a person o3er a spe"i7" t#in+ &it#out a passi3e sub5e"tindi3iduall6 deter0ined+ aainst o0 su"# ri#t 0a6 be personall6 exer"ised

Gi3es to a person a dire"t and i00ediate po&er o3er a t#in+ i"# is sus"eptible ofbein exer"ised+ not onl6 aainst a deter0inate person but aainst t#e ole &orld

E.. ri#ts of o&ners#ip and possessionPERSONA* RI,=T < po&er belonin to one person to de0and of anot#er+ as a de7nite passi3esub5e"t+ t#e ful7ll0ent of a prestation to i3e+ to do or not to do

&ORRE*ATI.E RI,=TS OF T=E O+*I,EE?&REDITOR >fro0 Sir Labita;s diara00ati"al outline@). Ri#t to "o0pel deli3er6

a. ruits >bot# industrial and natural fro0 t#e ti0e obliation to deli3er arises@+a""essions and a""essories

b. No real ri#t until deli3er6 personal a"tion aainst debtor+ no ri#t aainst t#e&orld

'. Ri#t to res"ission or resolution. Ri#t to da0aes

a. ailure to deli3er Leal ex"use for brea"# of obliation or dela64 ORT%ITO%S E8ENT unless t#ere

iso La& e.. possession in bad fait# >Art 11'@o Stipulation to t#e "ontrar6o Nature of obliation reuires assu0ption of ris

E APPLICABLE TO4o Nonperfor0an"eo Dela6o Loss?deterioration of spe"i7" t#in

Art ))-/ Before #appenin of suspensi3e "onditionArt ))/( Before #appenin of resolutor6 "ondition

Debtor still liable despite E4o Expressl6 spe"i7ed b6 la&

Art )/F' Bailee liable for loss >"o00odatu0@Art '(() A"t of a t#iefArt ')F Neotioru0 estio

Art )// Loss of deposito Stipulation e.. debtor be"o0es insurer of t#e obliationo Assu0ption of riso raud or 0ali"e >bad fait#@

Art ))21 Par Deli3ers to t&o or 0ore persons #a3in diKerentinterest

o Debtor in dela6 alread6 en E #appened >Art ))21 Par @o Debtor uilt6 of "on"urrent nelien"e in t#is "ase+ no lon Eo Liabilit6 arises fro0 "ri0inal a"t ex"ept if debtor tenders t#in and

"reditor un5usti7abl6 refuses to re"ei3e >Art )'2-@b. raud". Nelien"e in perfor0an"e


12/110


d. Dela6 or defaulte. An6 0anner in "ontra3ention of t#e tenor of obliation

,eneric hing Art ))21@

*I%ITED ,ENERI& T=IN,< eneri" ob5e"ts "on7ned to a parti"ular "lass+ t#e "lass is "onsidered in itselfa deter0inate ob5e"t

&ORRE*ATI.E RI,=TS OF T=E O+*I,EE?&REDITOR >fro0 Sir Labita;s diara00ati"al outline@). Ri#t to as for res"ission or da0aes'. Ri#t to da0aes

a. ailure to deli3erb. raud >0ali"e or bad fait#@". Nelien"e

d. Dela6e. An6 0atter "ontra3ene t#e tenor of obliation

RI,=TS OF A &REDITOR >fro0 BarOps Re3ie&er '((-@

P#CI&IC G#N#"ICTo "o0pel spe"i7" perfor0an"e To as for t#e perfor0an"e of t#e obliationTo re"o3er da0aes+ in "ase of brea"# of t#eobliation+ ex"lusi3e or in addition tospe"i7" perfor0an"e

To as t#at t#e obliation be "o0plied &it#at t#e expense of t#e debtor

Entitle0ent to fruits+ interests fro0 t#e ti0eobliation to deli3er arises

To re"o3er da0aes in "ase of brea"# ofobliation

B$ O%ligation TO !OArt )'FF Par ' In o%ligations to )o or not to )o+ an a"t or forbearan"e cannot be substitutedb6 anot#er a"t or forbearan"e !g!ins he obligee@s will. Ex"eption4 AC%LTATI8E OBLIGATION erein t#e #ebor reserves he righ o subsiueanot#er

prestation

Art ))2 If a person is oblied to do so0et#in fails to do it+ t#e sa0e s#all be e5ecue# ! his cos.T#e sa0e rule 0a6 be obser3ed if #e does it in conr!venion o" he enor o" he oblig!ion.urt#er0ore+ it 0a6 be de"reed t#at wh! h!s been 'oorl( #one be un#one.

DUTIES OF O+*I,OR >fro0 BarOps Re3ie&er '((-@). To do it >Art ))2@'. To s#oulder t#e "ost if so0eone else does it >Art ))2@. To undo at #as been poorl6 done >Art ))2@

F. To pa6 da0aes >Art ))())'+ ''()''('@

No a"tion for "o0plian"e be"ause t#at &ould be in3oluntar6 ser3itude i"# is pro#ibited b6t#e "onstitution.

C$ O%ligation NOT TO !OArt )'FF Par ' In obliations to do or not to do+ an a"t or forbearan"e c!nno be subsiue#b6anot#er a"t or forbearan"e aainst t#e obliee;s &ill. Perfor0an"e "annot be b6 a deleate or an aent No leal a""essor6 obliations arise >as "o0pared to obliation to i3e@


13/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 1,of 110!ari"#i E. Santos $ %P La& B'()'

Art )'2- 9#en t#e obliation "onsists in not doin+ and t#e oblior does at #as been forbidden#i0+ it s#all also be un#one ! his e5'ense.

DUTIES OF O+*I,OR >fro0 BarOps Re3ie&er '((-@). Not to do at s#ould not be done'. To s#ould t#e "ost to undo at s#ould not #a3e been done >Art ))2-@. To pa6 da0aes >Art ))(+ ''()''('@


14/110


B"#AC5 O& OBLIGATION

CONC#PT

.OLUNTA"6arises fro0 t#e modespro3ided in'rt 11"(

IN.OLUNTA"6 arises be"ause offortuitous events!istin(tion %etween UBTANTIAL an) CAUALELIG5T %rea(h

UBTANTIAL CAUALTotal PartialA0ounts to nonperfor0an"e A part is perfor0edBasis for res"ission and pa60ent ofda0aes

Gi3es rise to liabilit6 for da0aes

GENERAL R%LE4 Res"ission &ill not be per0itted for a sli#t or "asual brea"# of t#e "ontra"t+ but onl6for su"# brea"#es as are so substantial and fundamentalas to defeat t#e ob5e"t of t#e parties in0ain t#e aree0ent.

4O!# O& B"#AC5Art ))( T#ose o in the performanceof t#eir obliations are uilt6 of FRAUD+ NE,*I,EN&E+ orDE*A/and t#ose o in an6 0anner &ONTRA.ENE T=E TENOR t#ereof+ are liable for da0aes.

1 &"AU!1< !OLO CAUANT# ;Art 1,,?< !OLO INCI!#NT# ;Art 1,33Art ))(@

2 N#GLIG#NC#


16/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 1:of 110!ari"#i E. Santos $ %P La& B'()'

a. 8OID if ross nelien"e Stipulations exe0ptin fro0 liabilit6 for t#at a0ount to afraud

b. 8ALID if si0ple nelien"e onl6

#De(ts of Negligen(e). Da0aes are de0andable+ i"# t#e "ourts 0a6 reulate a""ordin to "ir"u0stan"es'. In3alidates defense of fortuitous e3ent

, !#LA6e..fortuitous e3ents@

,$ T#at t#e "reditor reuires or )e*an)s t#e perfor0an"e e8tra-)i(ially or -)i(ially ere re0inder is not a de0and be"ause it 0ust appear t#at t#e bene3olen"e and toleran"e

of t#e "reditor #as ended.

GENERAL R%LE4 Creditor s#ould 0ae de0and before debtor in"urs dela6 Default beins fro0 t#e 0o0ent "reditor de0ands t#e perfor0an"e of obliation.

o If extra5udi"ial4 date of de0ando If un"ertain4 date of 7lin of "o0plaint >for purposes of "o0putin pa60ent of interests or

da0aes@ De0and 0a6 be in an6 for0+ pro3ided it "an be pro3ed. It is also enerall6 ne"essar6 e3en if a

period #as been 7xed in t#e obliation. Burden of proof of de0and on t#e "reditor. De0and 0ust refer to t#e prestation t#at is due and not anot#er.

But e3en if &it#out de0and+ debtor in"urs in dela6 if #e !c4nowle#ges his #el!(. Reuest forextension of ti0e for pa60ent is not su"ient t#ou#+ t#e a"no&lede0ent 0ust be express.


17/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 1>of 110!ari"#i E. Santos $ %P La& B'()'

E7&EPTIONB -hen #em!n# is no re8uire#0: Express stipulation < Insertion of t#e "lause Cwihou "urher noice2: La& so pro3ides Not enou# to 0erel6 7x date for perfor0an"e+ but also t#at default &ill

"o00en"e after t#e period lapses;: Period is t#e "ontrollin 0oti3e or t#e prin"ipal indu"e0ent for t#e "reation of t#e obliation < in

"ases ere it appears t#at t#e obliation &ould not #a3e been "reated for a date ot#er t#an

t#at 7xed e.. install0ent plans@

#De(ts of 4ora

A: %or!solven#i0: 9#en it #as for its ob5e"t a deter0inate t#in+ t#e dela6 pla"es t#e ris of t#e t#in on t#e

debtor2: Debtor be"o0es liable for da0aes of t#e dela6

+: %or!!cci'ien#i0: Responsibilit6 of t#e debtor for t#e t#in is redu"ed and li0ited to fraud and ross

nelien"e2: Debtor is exe0pted fro0 t#e riss of loss of t#in+ i"# auto0ati"all6 pass to t#e "reditor;: All expenses in"urredb6 t#e debtor for t#epreser3ation of t#e t#in after t#e 0ora s#all be

"#areable to t#e "reditor: If t#e obliation bears interest+ t#e debtor does not #a3e to pa6 it fro0 t#e 0o0ent of t#e

0ora: T#e "reditor be"o0es liable for da0aesG: T#e debtor 0a6 relie3e #i0self of t#e obliation b6 t#e "onsination of t#e t#in

&: &om'ens!ionmor!e


18/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 1?of 110!ari"#i E. Santos $ %P La& B'()'

0: E5ce'io non !#em'lei conr!cus$one is not "o0pelled to perfor0 #is prestation en t#eot#er "ontra"tin part6 is not 6et prepared to perfor0 #is prestationJ default of one"o0pensates t#e default of t#e ot#er

Cessation of eDe(ts of *ora). Renun"iation b6 t#e "reditor

a. Express

b. I0plied4 en after dela6 #as been in"urred+ t#e "reditor gr!ns !n e5ension o" imeto t#e debtor or arees to a nov!ionof t#e obliation

'. Pres"ription

3 CONT"A.#NTION O& T#NO"< an6 illi"it a"t i"# i0pairs t#e stri"t and fait#ful ful7ll0ent of t#eobliation or e3er6 ind of defe"ti3e perfor0an"e

o ali"ious or nelient viol!ion o" he erms !n# con#iions stipulated in t#e obliationo ust not be due to fortuitous e3en or for"e 0a5eure+ot#er&ise t#ere &ould be no liabilit6o I00aterial et#er or not t#e a"tor is in b!# "!ih or negligen+ at is reuired is t#at it is

#is fault or t#e a"t done "ontra3enes t#eir aree0ent

7 ABOLUT# NONP#"&O"4ANC#

"#4#!I# O& C"#!ITO" IN CA# O& B"#AC5

A"tion for perfor0an"e >spe"i7" perfor0an"e or obtain "o0plian"e@A"tion for res"issionA"tion for da0aes >ex"lusi3el6 OR in addition to eit#er of t#e 7rst a"tions@

A$ ACTION &O" P#"&O"4ANC#

). A"tion forspe(i'( perfor*an(e>in obliation to i3e spe"i7" t#in@Art ))21 Par ) 9#en at is to be deli3ered is a deter0inate t#in+ t#e "reditor+ in addition to t#eri#t ranted #i0 b6 Art ))( >inde0ni7"ation for da0aes@+ 0a6 "o0pel t#e debtor to ma&e thedelivery.ROC /+ Se" )( Exe"ution+ satisfa"tion and eKe"t of 5ud0ent.

I0plies t#at t#e basis is a "ontra"tual relation bet&een plaintiK and defendants.

'. A"tion for s-%stit-te) perfor*an(e>in obliation to i3e eneri" t#in@

Art ))21 Par ' If t#e t#in is indeter0inate or eneri"+ #e 0a6 as t#at t#e obliation be compliedwithat t#e expense of t#e debtor.

Deli3er6 of an6t#in belonin to t#e spe"ies stipulated &ill be su"ient.

Debtor "annot a3oid obliation b6 pa6in da0aes if t#e "reditor insists on t#e perfor0an"e.

. A"tion for s-%stit-te) perfor*an(eor -n)oing of poor worF>in obliation to do@Art ))2 If a person oblied to do so0et#in "!ils o #o i+ t#e sa0e s#all be e)ecuted at his cost.T#is sa0e rule s#all be obser3ed if #e does it in contravention of the tenor of the obligation.urt#er0ore+ it 0a6 be de"reed t#at what has been done poorly be undone.

T#e "ourt #as no dis"retion to 0erel6 a&ard da0aes to t#e "reditor en t#e a"t "an be donein spite of t#e refusal or failure of debtor to do so.

ECEPTION4 I0position of personal for"e or "oer"ion upon t#e debtor to "o0pl6 &it# #isobliation tanta0ount to in3oluntar6 ser3itude and i0prison0ent for debt

F. A"tion for -n)oing


19/110


>in obliation not to do@Art ))2- 9#en t#e obliation "onsists in not doin+ and t#e oblior does at #as been forbidden#i0+ it s#all also be undone at his e)pense.

ECEPTION4 9#en t#e onl6 feasible re0ed6 is in#emni6c!ion "or he #!m!ges"aused4 If #as be"o0e i0possible to undo t#e t#in p#6si"all6 or leall6 If t#e a"t is de7nite and &ill not "ease e3en if undone

B$ ACTION &O" !A4AG#Art ))( Re"o3erable da0aes in"lude !n( !n# !ll #!m!gest#at a #u0an bein 0a6 suKer.Responsibilit6 for da0aes is in#ivisible.

C$ ACTION &O" "#CIIONArt ))/) T#e power to res(in) o%ligationis im'lie# in reci'roc!l ones+ in "ase one of t#e obliorss#ould not com'l(&it# at is in"u0bent upon #i0.T#e in5ured part6 0a6 "#oose bet&een &UL&ILL4#NTand t#e "#CIIONof t#e obliation+ &it#t#e pay*ent of )a*agesin eit#er "ase. Qe 0a6 also see res"ission+ even !"er he h!s chosen"ul6llmen+ if t#e latter s#ould be"o0e I4POIBL#.T#e "ourt s#all de"ree t#e res"ission "lai0ed %NLESS t#ere be ajus c!use !uhori3ing he )ing ofa period.

T#is is understood to be wihou 'reju#ice o he righs o" hir# 'ersonso #a3e a"uired t#et#in+ in a""ordan"e &it# Arti"les )-1 and )-- and t#e ortae La&.

Art ))/' In "ase %oth parties have (o**itte) %rea(h of o%ligation+ t#e liabilit6 of t#e 7rstinfra"tor s#all be e8ui!bl( em'ere#b6 t#e "ourts. If it "annot be deter0ined i"# of t#e parties7rst 3iolated t#e "ontra"t+ t#e sa0e s#all be e5inguishe#and e!ch sh!ll be!r his own #!m!ges.

T#e re0ed6 is alternative. Part6 seein res"ission "an onl6 ele"t one bet&een ful7ll0ent andres"ission. T#ere "an be no partial perfor0an"e and partial res"ission.

Onl6 applies to re"ipro"al obliations+ ere t#ere is re"ipro"it6 bet&een t#e parties i.e."reditor debtor relations arise fro0 t#e sa0e "ause or identit6 of "ause

Re"ipro"al obliations #a3e a TA&IT RESO*UTOR/ &ONDITION.

5ower to rescind4o Pertains to t#e in5ured part6+ part6 o did not perfor0 not entitled to insist upon t#e

perfor0an"e of t#e "ontra"t b6 t#e defendant or re"o3er da0aes b6 reason of #is o&nbrea"#

Ri#ts of in5ured part6 subordinated to t#e ri#ts of a rdperson to o0 bad fait# isnot i0putable

o Not absolute+ not per0itted in "asual?sli#t brea"#+ 0a6 onl6 be "lai0ed in substantialbrea"#


20/110


E7PRESS RESO*UTOR/ &ONDITION4 auto0ati" resolution if one of t#e parties does not "o0pl6&it# #is obliation. Often found in insuran"e "ontra"ts. Its nature is a fa"ultati3e resolutor6"ondition


21/110


. Patri0onial ri#ts in#erent in t#e persons of t#e debtor e.. ri#t to re3oe a donation b6reason fo inratitude+ ri#t to de0and t#e ex"lusion of an un&ort#6 #eir

'. Art ' Onl6 t#ose o at t#e ti0e of t#e donors deat# #a3e a ri#t to t#e leiti0e and t#eir#eirs and su""essors in interest 0a6 as for t#e redu"tion or ino"ious donations.T#ose referred to in t#e pre"edin pararap# "annot renoun"e t#eir ri#t durin t#e lifeti0e oft#e donor+ eit#er b6 express de"laration+ or b6 "onsentin to t#e donation.T#e donees+ de3isees and leatees+ o are not entitled to t#e leiti0e and t#e "reditors of t#e

de"eased "an neit#er as for t#e redu"tion nor a3ail t#e0sel3es t#ereof.. Se" )+ Rule /+ Rules of Court

2'ccion5aulianaArt )) Ut#e6 0a6 also i*p-gn the a(ts i"# t#e debtor 0a6 #a3e done to #e"r!u#t#e0Art )-) Par T#ose undertaen in fraud of "reditors en t#e latter "annot in an6 ot#er 0anner"olle"t t#e "lai0s due t#e0. >ound under Res"issible Contra"ts@

Con(ept Creditors #a3e t#e ri#t to set aside or re3oe a"ts i"# t#e debtor 0a6 #a3e done todefraud t#e0. All a"ts of t#e debtor i"# redu"e #is patri0on6 in fraud of #is "reditors+ et#er b6ratuitous or onerous title+ "an be re3oed b6 t#is a"tion. Pa60ents of're)e5ising oblig!ions !lre!#( #ue+ et#er natural or "i3il+ "annot be i0puned

b6 an a""ion pauliana.

"#UIIT# O& ACCION PAULIANA). PlaintiK asin for res"ission >subsidiar6 a"tion@ #as a "redit prior to t#e alienation+ alt#ou#

de0andable later'. Debtor #as 0ade subseuent "ontra"t+ i3in ad3antae to a rdperson. Creditor #as no ot#er re0ed6 but to res"ind t#e debtor;s "ontra"t to t#e rdperson >last resort@F. A"t bein i0puned is fraudulent

o Presu0ption of fraud 0a6 be found in Art )- >ratuitous transfer &it#out lea3insu"ient funds for obliations OR ratuitous transfers b6 a 5ud0ent debtor@ ore detailsin pae VV

1. rdperson o re"ei3ed t#e propert6 is an a""o0pli"e in t#e fraudo See Res"issible Contra"ts for 0ore detail dis"ussion on t#e eKe"ts of ood fait# and bad

fait# of t#e t#ird part6 transferee >Pae -'@

!istin(tion %etween accion subrogatoriaan) accion pauliana

ACCION UB"OGATO"IA ACCION PAULIANANot essential t#at "redit is prior to t#ea"uisition of debtor;s ri#t

Credit 0ust exist before fraudulent a"t

Intent to defraud "reditors is not reuired If "ontra"ts res"inded is onerous+ t#ere 0ustbe fraudulent intent

No period of pres"ription A"tion pres"ribes &it#in F 6ears of t#edis"o3er6 of t#e fraud

, Other spe(i'( re*e)ies ;'ccion Derecta Fuer3! %!(or> &!so ForuioA. A"t of God < b6 nature e.. eart#uaes+ stor0s+ :oods+ epide0i"s+ 7res+ et"J all #u0an aen"ies

ex"luded


22/110


B. A"t of an < b6 a"ts of 0an+ e. ar0ed in3asion+ atta" b6 bandits+ o3ern0ental pro#ibitions+robber6+ et"J for as lon as t#at t#e6 #a3e a for"e of an i0position i"# t#e debtor "ould not#a3e resisted

In"ludes una3oidable a""idents+ e3en if t#ere #as been inter3ention of #u0an ele0ent+ pro3idedt#at t#e "!ul or negligence c!nno be im'ue# o he #ebor

"e9-isites of &ort-ito-s #vent0: Cause of t#e unforeseen and unexpe"ted o""urren"e or t#e failure of t#e debtor to "o0pl6 &it#

#is obliation 0ust be in)epen)ent of h-*an will2: I0possible to foresee t#e e3ent i"# "onstitute t#e "aso fortuito >ordinar6@ ORif it "an be

foreseen+ 0ust be i0possible to a3oid >extraordinar6@;: O""urren"e 0ust be su"# as to render it i*possi%lefor t#e debtor to "ul6ll his oblig!ion in !

norm!l m!nner: Oblior 0ust be free fro* any parti(ipationin t#e ara3ation of t#e in5ur6 resultin to t#e

"reditor >no "on"urrent nelien"e@

#De(t of CONCU""#NT &AULT of the !e%tor 9#en t#e nelien"e of a person "on"urs &it# an a"t of God in produ"in a loss+ su"# person is

no e5em' "rom li!bili(b6 s#o&in t#at t#e i00ediate "ause of t#e da0ae &as t#e a"t of

God. If #e cre!es ! #!ngerous con#iionor nelien"e alt#ou# t#e a"t of God &as t#e i00ediate

"ause+ #e "annot es"ape liabilit6 for t#e natural and probable "onseuen"e t#ereof. T#ere 0ust be NO"r!u#+negligence> #el!( or viol!ion?conr!venion in !n( m!nner o" he enor

of t#e obliation. 9#en t#e eKe"t is found to bepartlyresultin fro0 t#e parti"ipation of 0an+ et#er due to #is

a"ti3e inter3ention or nele"t or failure to a"t+ t#e ole o""urren"e is t#en hum!ni3e#andre0o3ed fro0 t#e rules appli"able to t#e a"ts of God


23/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 2,of 110!ari"#i E. Santos $ %P La& B'()'

UU"IOU T"ANACTION

Art ))1 %surious transa"tions s#all be o3erned b6 spe"ial la&s.Art )F) Interest paid in ex"ess of t#e interest allo&ed b6 t#e usur6 la&s 0a6 be re"o3ered b6 t#edebtor+ &it# interest t#ereon fro0 t#e date of t#e pa60ent.Art )/2) %surious "ontra"ts s#all be o3erned b6 t#e %sur6 La& and ot#er spe"ial la&s+ so far as t#e6are not in"onsistent &it# t#is Code.

INTEREST< t#e in"o0e produ"ed b6 0one6 in relation to its a0ount and to t#e ti0e t#at it "annot beutili=ed b6 its o&ner. It "an eit#er be 0orator6 or "o0pensator6.

o %ORATOR/< paid in "ontra"tual obliations to pa6 a su0 of 0one6+ eit#er as pri"e for t#euse of t#e 0one6 OR as stipulated ad3an"ed deter0ination of t#e da0aes due to t#e dela6in t#e ful7ll0ent of t#e obliation. Hmor! #el!(

o &O%PENSATOR/< interests on obliations i"# #a3e an extra"ontra"tual or deli"tual oriin

USUR/< "ontra"tin for or re"ei3in so0et#in in ex"ess of t#e a0ount allo&ed b6 t#e la& for t#e loanor forbearan"e of 0one6+ ood or "#attels. It is also tain 0ore interest for t#e use of 0one6+ oods or"#attels or "redits t#an t#e la& allo&s.

T/O CONC#PT ON PA64#NT O& INT#"#T >fro0 Sir Labita;s #andout@

A. -nterest for the use or loan or forbearance of money6 goods orcredit

If no stipulation re4 pa60ent of interest4No interestfor use or forbearan"eW No interest s#all be due unless it #as been expressl6stipulated in &ritin >Art )/12@

If t#ere is express stipulation >i"# 0ust be in &ritinto be 3alid@ for pa60ent of interests+ but no r!emenione#

Interest s#all be 12H per ann-*>Se". '+ onetar6Board Cir"ular /(1+ )( De" )/-'@

If t#ere is stipulation in &ritin and r!e o" ineres is!gree# u'on>in"ludin "o00issions+ pre0iu0s+ feesand ot#er "#ares@

Su"# interest s#all not %e s-%e(t to (eilingpres"ribed under t#e %sur6 La& >Se". )+ onetar6 BoardCir"ular /(1+ )( De" )/-'@@

B. -nterest as damages for breach or default in payment of loan or forbearance of money6

goods6 credit

No stipulation as to interest for use of 0one6

In "ase of !#&AULT+ loan or forbearan"e s#all earnleal interest+ at rate of 12H per ann-*fro* dateof judicial or e)trajudicial demand+ sub5e"t to Art))2/ >dela6?0ora@

If rate of interest stipulated+ e.. 'FX per annu0

Loan Y stipulated interest+ s#all earn 12H perann-*"rom #!e o" ju#ici!l #em!n#W Interest due s#all earn leal interest fro0 t#e ti0e it is

5udi"iall6 de0anded+ alt#ou# t#e obliation 0a6 be silentupon t#is point >Art '')'@

C. -f obligation N consisting of a loan or forbearance of money6 goods or credit isbreached6 e.g. obligation to give6 to do6 not to do

o Interest 0a6 be i0posed at the )is(retion of (o-rtat t#e rate of :H per ann-*.

o No interest ad5uded on -nli9-i)ate) (lai*s or )a*ages+ until de0and "an beestablis#ed &it# re!son!ble cer!in(.

o After t#us establis#ed &it# reasonable "ertaint6+ interest of :H per ann-*s#all bein torun fro0 t#e )ate of -)i(ial ore8tra-)i(ial )e*an).


24/110


o But if obliation "annot be establis#ed &it# reasonable "ertaint6 ! ime o" #em!n#+ :H perann-*interest s#all bein to run onl6 fro* )ate of -)g*ent< on !moun 6n!ll(!#ju#ge# b( cour.

D. 9#en-)g*entof "ourt a&ardin 0one6 be"o0es 'nal an) e8e(-tory+ 0one6 5ud0ent is A+ B

and C >abo3e@ s#all earn12H per ann-* fro* 'nality of -)g*ent -ntil f-ll pay*entDPNpresupposes 0arriae@

past e3ent "annot be a "ondition be"ause it is not a future and un"ertain e3ent+ 0ore properl6"alled as basisJ alt#ou# proof of a past e3ent 0a6 be a "ondition

TER%< not un"ertain but 0ust ne"essaril6 #appen e.. deat# of a person

CON!ITION P#"IO!ET#"4Deter0ines e5isenceof an obliation Deter0ines #em!n#!bili(of an obliation

in)s of Con)itions

1$ As to eDe(t on o%ligation

Art ))-) CAc8uisiion o" righsand Ce5inguishmen or loss o" hose !lre!#( !c8uire#

UP#NI.# "#OLUTO"6 9#en "ondition ful7lled Obliation arises Obliation is extinuis#ed9#en "ondition notful7lled

T#e 5uridi"al or leal tie does not appear Tie of la& is "onsolidated+ be"o0esabsolute

%ntil it taes pla"e Obliation is a 0ere #ope T#e eKe"t :o&+ but o3er it #o3erspossibilit6 of ter0ination lie S&ord ofDa0o"les

EKe"t A"uisition of ri#ts Extinuis#0ent or loss of t#ose alread6a"uired

Also no&n as Condition pre"edent?ante"edent Condition subseuent

S:S50NS-;0>"ondition pre"edent?ante"edent@ t#e obliation arises+ but if t#e "ondition does not #appen+ obliation does not "o0e into

existen"e

"etroa(tive eDe(t when Js-spensiveK (on)ition is f-l'lle) T#e bindin tie of "onditionalobliation is produ"ed fro0 t#e ti0e of perfe"tion+ not #appenin of "ondition.

Can also be seen as Ri#ts of "reditor and debtor after ful7ll0ent of t#e "ondition

Art ))- T#e eKe"ts of a "onditional o%ligation to give+ on"e t#e "ondition #as been ful7lled s#allretroact to the day of the constitution of t#e obliation. Ne3ert#eless+ en t#e obliation i0posesreciprocal prestationsupon t#e parties+ t#e fruits and interests durin t#e penden"6 of t#e "onditions#all be dee0ed to #a3e been 0utuall6 "o0pensated. If t#e obliation is unilateral+ t#e debtor s#allappropriate t#e fruits and interests re"ei3ed+ %NLESS fro0 t#e nature and "ir"u0stan"es of t#eobliation it s#ould be inferred t#at t#e intention of t#e person "onstitutin t#e sa0e &as diKerent.

In o%ligations to )o or not to )o+ t#e courts shall determine+ in ea"# "ase+ t#e retroa"ti3e eKe"t of"ondition t#at #as been "o0plied &it#.

OBLIGATION TO GI.# OBLIGATION TO !O or NOT TO !O+il!er!l>re"ipro"al obliation@

dee0ed to #a3e been 0utuall6 "o0pensatedUnil!er!l

debtor s#all appropriate fruits and interestsre"ei3ed+ %NLESS t#ere &as a diKerentintention

Courts s#all deter0ine t#e retroa"ti3e eKe"t of t#e"ondition


26/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 2:of 110!ari"#i E. Santos $ %P La& B'()'

%ntil t#e ful7ll0ent of suspensi3e "ondition+ "reditor "annot enfor"e t#e obliation as #is ri#t t#en&as merel( !n e5'ec!nc(. Qo&e3er+ upon #appenin+ t#e debtor "an be "o0pelled to perfor0.

REASON OR RETROACTI8IT,4 Condition is onl6 a""idental and not an essential ele0ent of t#eobliation. T#e obliation is "onstituted en t#e essential ele0ents i"# i3e rise t#ere to "on"ur.

Contra"ts entered into PENDENTE &ONDITIONE>before #appenin of suspensi3e "ondition@o CREDITOR transfers #is ri#ts prior to #appenin of "ondition e.. 0ortae o3er t#e

propert6 to be deli3ered to #i0 EKe"t4 "onsolidate or 0aes eKe"ti3e t#e a"t perfor0ed.o DEBTOR4 "annot alienate or dispose t#e t#in+ if #e does so+ all su"# "ontra"ts are abroated

and "ease to #a3e an6 eKe"t upon #appenin of t#e suspensi3e "ondition. But be"ausedeli3er6 transfers real ri#t o3er t#e t#in4

rdperson in ood fait# retains o&ners#ipJ debtor be"o0es liable to "reditor forda0aes.

rdperson is in bad fait# #e 0a6 be "o0pelled to deli3er t#e t#in to t#e "reditor.

LIITATIONS ON RETROACTI8IT, >as di"tated b6 5usti"e and reuired b6 pra"ti"abilit6 or"on3enien"e@4

o lossof t#e t#in b6 fortuitous e3ent+ debtor suKers t#e loss be"ause #e is still t#e o&nero !cs o" !#minisr!ionbefore ful7ll0ent not aKe"ted b6 retroa"ti3it6J #o&e3er abuse of ri#ts

in uise of ad0inistration are not allo&ed to defeat ri#ts of "reditoro usu"rucu!r( righsnot &it#in t#e prin"iple of retroa"ti3it6 of "onditional obliations

"ights of (re)itor an) )e%tor %efore f-l'll*ent of (on)itionArt ))-- T#e "reditor+ 0a6 be"ore he "ul6llmen o" he oblig!ion+ brin t#e appropriate a"tion for t#epreservationof #is ri#t.T#e debtor 0a6 re(overat durin t#e sa0e ti0e #e #as pai) %y *istaFein "ase of a suspensi3e"ondition.

No preferen"e of "redit is ranted to t#e "reditor but onl6 allo&s #i0 to brin proper a"tion for t#epreser3ation of #is ri#ts.

PA,ENT BEORE QAPPENING O CONDITION4 Debtor 0a6 onl6 re"o3er at #e paid b6 0istaebe"ore h!''ening of suspensi3e "ondition+ #en"e if "ondition #as been ful7lled+ #e "an no loner"lai0 be"ause of retroa"ti3it6 of t#e "ondition.

If t#e pa60ent &as for a deter0inate t#in4 !ccion reivin#ic!ori!>for inexistent "ontra"ts@

Ot#er&ise >not a deter0inate t#in@4 soluio in#ebii If t#e pa60ent &as &it# no&lede of "ondition4 i0plied &ai3er of "ondition and "annot

re"o3er If t#e pa60ent &as &it# no&lede but t#e "ondition did not #appen4 debtor "an re"o3er lest

t#e "reditor &ill be un5ustl6 enri"#ed. T#e la& is silent as to et#er fruits 0a6 be re"o3ered lie in Art ))/1+ but Tolentino sa6s &e

"an appl6 prin"iple of solutio indebiti+ espe"iall6 if "reditor is in bad fait# >ne& t#at t#edebtor is pa6in before t#e suspensi3e "ondition #as #appened@. Sir *!bi!g s!(s (es>hough:I "ollows he s!me rules:


27/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 2>of 110!ari"#i E. Santos $ %P La& B'()'

On t#e part of t#e debtor4 Does not pre3ent for0ation of 3alid obliation be"ause in partdepends on "ontinen"ies o3er i"# #e #as no "ontrol

'. P-rely potestative< depends solel6 and ex"lusi3el6 upon t#e &ill Destro6s t#e e"a"6 of t#e leal tie #De(t if f-l'll*ent of (on)ition )epen)s solely on the will of the )e%tor8OID

be"ause it is a dire"t "ontra3ention of Art )(- on 0utualit6 of "ontra"ts and to do so is tosan"tion illusor6 "onditions

If depends ex"lusi3el6 on t#e &ill of "reditor 8ALID Appli"able onl6 to S%SPENSI8E and NOT to RESOL%TOR, Qen"e+ resolutor6 potestati3e >fa"ultati3e@ "onditions are perfe"tl6 3alid+ e3en if 0ade to

depend upon t#e oblior?debtor+ sin"e t#e obliation is alread6 in for"e

!e%tors pro*ise to pay when he (an is not a (on)itional o%ligationArt ))-( 9#en t#e debtor binds #i0self to pa6 9QEN #is 0eans per0it #i0 to do so+ t#e obliations#all be dee0ed to be one &it# a period sub5e"t to t#e "onditions of Art ))/ >period &as intended@.

Creditor &ill #a3e to as t#e "ourt to 7x a period be"ause an i00ediate a"tion to enfor"e t#eobliation &ould be pre0ature.

'S:'7@ dependsex"lusi3el6 upon "#an"e+ &ill of a t#ird person or ot#er fa"tors+ and not upon t#e&ill of t#e "ontra"tin parties

-=0D< depends upon t#e &ill of one of t#e "ontra"tin parties and ot#er "ir"u0stan"es+ in"ludin t#e&ill of t#ird persons

,$ As to possi%ilityArt ))- IPOSSIBLE CONDITIONS+ t#ose "ontrar6 to ood "usto0s or publi" poli"6 and t#osepro#ibited b6 la& s#all annul the obligationi"# depends upon t#e0. If t#e obliation isDI8ISIBLE+ t#at part t#ereof i"# is no !9ece# b( he im'ossible or unl!w"ul con#iions#all bevalid.

T#e "ondition not to )o an i*possi%le things#all be "onsidered as no h!ving been !gree# u'on.

-5SS-+70< 0a6 eit#er be physi(al>"ontrar6 to t#e la& of nature@ or-ri)i(al>"ontrar6 to la&+

0orals+ ood "usto0s+ and publi" poli"6 AND restri"ts "ertain ri#ts i"# are ne"essar6 for t#e freede3elop0ent of #u0an a"ti3it6 i.e. politi"al ri#ts+ fa0il6 ri#ts and "onstitutional ri#ts and libertiese.. "ondition not to "#ane do0i"ile+ reliion or "ontra"t 0arriae@

I**I&IT &=ARA&TER< deter0ined not b6 t#e fa"ts but b6 t#e eKe"t upon one of t#e parties. T#us+ t#e"riterion is sub5e"ti3e. Not t#e a"t but t#e intention and its eKe"t t#at deter0ine t#e illi"it "#ara"ter oft#e "ondition.

9#6 I0possibilit6 of ful7ll0ent i0plies #e #oes no inen# o be boun#+ t#us t#e nullit6 oft#e pro0ise

#De(t of I*possi%le Con)itions

Annuls onl6 obliations i"# are POSITI8E and S%SPENSI8E. In t#e "ase of a neg!iveim'ossible con#iion+ it;s "onsidered as not &ritten and t#e obliation is "on3erted to a pure and

si0ple one. Applies onl6 to "ontra"ts and not to si0ple and testa0entar6 donations and to testa0entar6

dispositions I0possibilit6 of "ondition 0ust exist at t#e ti0e of t#e "reation of t#e obliation >not existen"e of

a 3alid obliation subseuentl6 rendered i0possible under Art )'22 on subseuenti0possibilit6@

DI8ISIBLE OBLIGATION4 part not aKe"ted b6 t#e i0possible "ondition s#all re0ain 3alid

GENERAL R%LE4 I0possible "ondition annuls t#e obliation dependent upon t#e0ECEPTIONS4

o Preexistin obliationo Di3isible obliation

o Si0ple or re0unerator6 obliationo Testa0entar6 disposition


28/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae 2?of 110!ari"#i E. Santos $ %P La& B'()'

o Neati3e i0possible t#ins

3$ As to *o)e

5S--;0 ;s-spensivecours sh!ll #eermine@s#all be obser3ed as reards t#e eKe"t of t#e extinuis#0ent of obliation.

LO ). Peris#es'. Goes out of t#e "o00er"e of 0an. Disappears in su"# a &a6 t#at its existen"e is unno&n or it "annot be re"o3ered

!#T#"IO"ATION An6 redu"tion or i0pair0ent in t#e substan"e or 3alue of a t#in i"# does not a0ount to aloss. T#e t#in still exists at t#e ti0e t#e "ondition is ful7lled+ but it is no loner inta"t+ OR isless t#an at it &as en t#e obliation &as "onstituted.

I4P"O.#4#NT An6t#in added to+ in"orporated in+ or atta"#ed to t#e t#in t#at is due.

#De(t of loss or )eterioration


29/110


LO !#T#"IO"ATION9it#out debtor;s fault Extinuis#ed+ unless t#ere is a stipulation

to t#e "ontrar6. ode of extinuis#0ent Art)'2' Par )

Not liable for da0ae+ "reditor 0ust a""eptt#e t#in in i0paired "ondition

9it# debtor;s fault Liable to da0aes upon ful7ll0ent of"ondition

a6 de0and t#e t#in OR as forres"ission+ in eit#er "ase+ "reditor 0a6re"o3er da0aes

#De(t of i*prove*ent4O!#

B6 nature or ti0e Inures to t#e bene7t of t#e "reditor b6 3irtue of prin"iple of retroa"ti3it6 of "onditionalobliations

At debtor;s expense Onl6 usufru"tuar6 ri#tsJ Go3erned b6 Art 1/ >useful i0pro3e0ents or for 0erepleasure+ re0o3e if possible to re0o3e &it#out da0ae to propert6@ and Art 1-( >set oKt#e i0pro3e0ents #e 0a6 #a3e 0ade aainst an6 da0ae@

#De(t of prevention of the f-l'll*ent of the (on)ition %y the o%ligorArt ))-2 T#e "ondition s#all be deemed fullleden t#e oblior 3oluntaril6 pre3ents ful7ll0ent.

&ONSTRU&TI.E FU*FI**%ENT< a "ondition i"# alt#ou# not ex"lusi3el6 &it#in t#e &ill of t#e debtor+0a6 in so0e &a6 be pre3ented b6 t#e debtor fro0 #appenin.

REM%ISITES4a. Intent of t#e oblior to pre3ent t#e ful7ll0ent of t#e "onditionESSENTIALZb. A"tual pre3ention of t#e "o0plian"e

9#6 Part6 to a "ontra"t 0a6 not be ex"used fro0 perfor0in #is pro0ise b6 t#e nono""urren"e of t#e e3ent i"# #e #i0self pre3ented.

Also appli"able to'rovoc!ion o" resoluor( con#iions

C$ "#CIP"OCAL OBLIGATIONArt ))/) T#e po&er to res"ind obliation is i*plie) in re(ipro(al ones+ in "ase one of t#e obliorss#ould not "o0pl6 &it# at is in"u0bent upon #i0.

T#e in5ured part6 0a6 "#oose bet&een ,:7,-770Nand t#e


30/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,0of 110!ari"#i E. Santos $ %P La& B'()'

b. A"tion for Res"ission "e9-isites for res(ission

a. One of t#e "reditors faile) to (o*ply&it# at is in"u0bent upon #i0b. Oblior o perfor0ed "#ose res"ission o3er ful7ll0ent or perfor0an"e is i*possi%lec. T#e brea"# is s-%stantialso as to defeat t#e ob5e"t of t#e parties in 0ain t#e

aree0ent < it &ill not be ranted in sli#t or "asual brea"#

5ow *a)e< Res"ission reuires 5udi"ial appro3al to produ"e leal eKe"t

ECEPTION4 ob5e"t is not 6et deli3ered AND obliation #as not 6et been perfor0ed If t#e obliation #as not 6et been perfor0ed4 extra5udi"ial de"laration of part6 &illin

to perfor0 &ould su"eJ "an refuse to perfor0 if t#e ot#er part6 is not 6et read6 to"o0pl6

If t#e in5ured part6 #as alread6 perfor0ed4 "annot extra5udi"iall6 res"ind I t#e ot#erpart6 opposes t#e res"ission >ot#er&ise+ res"ission produ"es leal eKe"t@. In t#e "aset#e ot#er part6 i0puns res"ission+ t#e "ourt "o0es in eit#er to4

a. De"lare t#e res"ission as properl6 0adeb. Gi3e a period to t#e debtor in i"# to perfor0

#De(ts of "es(ission

). Extinuis#es obliator6 relation as if it #ad ne3er been "reated Eui3alent to in3alidatet#e 5uridi"al tie+ lea3in t#ins in t#eir status before t#e "elebration of t#e "ontra"t

'. utual restitution

"es(ission Art 1,?0 !isting-ishe) fro* "esol-tion Art 111

Art 111 "esol-tion Art 1,?0 "es(issionSi0ilarities ). Presuppose "ontra"ts 3alidl6 entered into and existin

Res"ission 3. Annul0ent4 t#e latter t#ere is a defe"t i"# 3itiates?in3alidates t#e "ontra"t

'. utual restitution en de"lared proper9#o 0a6de0and

Onl6 b6 a part6 to t#e "ontra"t Part6 to t#e "ontra"t suKerin lesionT#ird parties pre5udi"ed b6 t#e "ontra"t

Grounds Nonperfor0an"e >i0plied ta"it "ondition inre"ipro"al obliation@

8arious reasons of euit6 pro3ided b6 t#erounds+ 0ainl6 e"ono0i" in5ur6 or lesions

S"ope of5udi"ial "ontrol

Court deter0ines su"ien"6 of reason to 5ustif6extension of ti0e to perfor0 obliation

>et#er sli#t or "asual brea"#@

Su"ien"6 of reason does not aKe"t ri#t to asfor res"ission >"annot be refused if all t#e

reuisites are satis7ed@!ind of obliappli"able to

Onl6 to re"ipro"al %nilateral+ re"ipro"alE3en en "ontra"t is full6 ful7lled

C#ara"ter Prin"ipal Re0ed6 Se"ondar6?Subsidiar6

II$ O%ligation with a Perio)

Art ))/ Obliations ose ful7ll0ent a day certain#as been 7xed+ s#all be de0andable onl6 ent#at da6 "o0es.Obliations &it# a resol-tory perio)tae eKe"t at on"e but ter0inate upon arri3al of t#e da6 "ertain.A da6 "ertain is understood to be t#at i"# must necessarily come+ alt#ou# it 0a6 not be&nown when.If t#e un"ertaint6 "onsists in whether the )ay will (o*e or not+ t#e obliation is &ONDITIONA*+ andit s#all be reulated b6 t#e rules of t#e pre"edin Se"tion.

Art ))-( 9#en t#e debtor binds #i0self to pay /5#N his *eans per*it#i0 to do so+ t#e obliations#all be deemed to be one with a period+ sub5e"t to t#e pro3isions of Art ))/.

Con(eptA spa"e of ti0e i"#+ exertin an in:uen"e on obliations a s a "onseuen"e of a 5uridi"ala"t+ sus'en#s heir #em!n#!bili(or #eermines heir e5inguishmen.

o Re8uisies o" Perio#). uture'. Certain. Possible

Perio)ETer* vs$ Con)ition


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A TO T#"4EP#"IO! CON!ITIONul7ll0ent E3ent 0ust ne"essaril6 "o0e+ et#er no&n

before #and OR at a ti0e i"# "annot bepredeter0ined

E3ent is un"ertain

In:uen"e ont#e obliation

No eKe"t on t#e existen"e+ but onl6 on t#eirde0andabilit6 or perfor0an"e+ QENCE+ #oesno"arr6 &it# it an6 retroa"ti3e eKe"t

Gi3es rise to an obliation or extinuis#es onealread6 existin

Ti0e Al&a6s to t#e future a6 refer to past e3ent not no& to t#e parties9ill of t#edebtor

If dependent on &ill of debtor+ 0erel6e0po&ers "ourt to 7x su"# period

If dependent on &ill of debtor+ ANN%L

in)s of Perio)ETer*

1$ As to eDe(t

S:S50NS-;0>Ex die@Art ))/ Par ) Obliations ose "ul6llmen ! #!( cer!in h!s been 65e#+ s#all be demandableonlyen t#at da6 "o0es.

o ust lapse before t#e perfor0an"e of t#e obliation "an be de0andedo T#in4 in"ubatin periodo T#e oblior #as t#e burden of pro3in an6 extension of t#e period b6 satisfa"tor6 e3iden"eo S%SPENSION O PERIOD4 If a fortuitous e3ent super3enes+ t#e oblior is 0erel6 relie3ed of

t#e obliation to ful7ll at t#at ti0e+ and does not stop t#e runnin of t#e period be"ause ineKe"t t#at &ould be an extension of t#e ter0 of t#e "ontra"t. or"e 0a5eure "annot bededu"ted fro0 t#e period stipulated.

o ORATORI% LA9S4 postpone0ent of t#e ful7ll0ent of an obliation+ an extension of t#eperiod for t#e perfor0an"e of t#e obliation+ de"reed b6 t#e statute. Qo&e3er+ to 0eet"onstitutional reuire0ents4 T#e suspension s#ould be #e6nieand re!son!ble.

Qol6 9ee@+ e3ents in "i3il or politi"al life

>ae of 0a5orit6 or be"o0in a uali7ed 3oter@ Debtor pro0ises to pa6 en able or little b6 little or as soon as possible Two steps in )ealing with an in)e'nite perio) ;fro* ir La%itags le(t-refor '1 6ears@

@:D--'7 < set b6 t#e "ourts in "ase of i0plied and inde7nite periods


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OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,,of 110!ari"#i E. Santos $ %P La& B'()'

If pa60ent &as &it# no&lede of t#e ter0+ it "annot be re"o3ered be"ause it is"onsidered as ta"it &ai3er of t#e bene7t of t#e ter0 >not onl6 fruits and interest+ butalso prin"ipal@

NoeArt ))/ Par In e3er6 "ase+ t#e "ourt s#all determine such periodas 0a6 under t#e"ir"u0stan"es #a3e been pro%a%ly (onte*plate) %y the parties. Once 65e# b( he cours>t#e

'erio# c!nno be ch!nge# b( hem.

Bene't of Perio)

1$ &or whose %ene't an) its eDe(ts

Cre)itor

a6 de0and perfor0an"e an6ti0e+ but not "o0pelled to a""ept before period expiresE.. pa60ent of interest+ &ants to eep #is 0one6 safel6 in3ested instead of #a3in it in #is#ands+ prote"ts #i0self fro0 sudden de"line in pur"#asin po&er of t#e "urren"6 loaned

!e%tor a6 oppose a pre0ature de0and+ but 0a6 3alidl6 pa6 an6 ti0e before period expiresE.. ti0e to raise 0one6

Both Presu0ption in absen"e of stipulation or in "ase of doubtCreditor 0ust i3e "onsent 7rst before debtor 0a6 pa6 in ad3an"e espe"iall6 en "reditorre"ei3es ot#er bene7ts b6 reason of t#e ter0

2$ Pres-*ptionfor t#e bene7t of BOTQ t#e "reditor and debtorArt ))/2 9#ene3er in an obliation a period is desinated+ it is'resume#to #a3e been establis#edfor t#e bene7t of +/"reditor and debtor+ UN*ESSfro0 t#e enorof t#e sa0e or ohercircums!nces it s#ould appear t#at t#e period #as been establis#ed in fa3or of one or t#e ot#er.

,$ /hen )e%tor losesright to *aFe -se of perio)Art ))/- T#e debtor s#all lose e3er6 ri#t to 0ae use of t#e period4

1A 9#en after t#e obliation #as been "ontra"ted+ #e be"o0es insolventUN*ESS#e i3es auarant6 or se"urit6 for t#e debt do3etail &it# !ccion '!uli!n!>prior "redit alt#ou#de0andable later@

2A 9#en #e does not furnis# to t#e "reditor t#e g-aranties or se(-rities whi(h he haspro*ise)

3A 9#en b6 #is own !cs#e #as i*paire) sai) g-arantiesor se"urities after t#eir

establis#0ent+ and en t#rou# a "oruious event#e6 disappear+ UN*ESS#e i00ediatel6i3es ne& ones euall6 satisfa"tor6

4A 9#en t#e debtor violates any -n)ertaFingin "onsideration of i"# t#e "reditor areed tot#e period

A 9#en t#e debtor atte0pts to a%s(on)s#o&s bad fait#

Par )4 insol3en"6 need not be de"lared in an insol3en"6 pro"eedin+ enou# t#at #e is in astate of 7nan"ial di"ult6 t#at #e is unable to pa6 #is debts

Par 4 i0paired need not be totalJ disappear t#rou# fortuitous e3ent total+ used in t#e senseof loss

Obliation be"o0es i00ediatel6 due and de0andable e3en if period #as not 6et expiredJ"on3erted to a pure obliation

Does not appl6 to extension of period 7xed b6 0oratoriu0 statutes

/hen (o-rt *ay '8 perio)

Art ))/ If t#e obliation does not 7x a period+ but fro0 its nature and "ir"u0stan"e it "an be inferre)that a perio) was inten)e)+ t#e "ourts 0a6 7x t#e duration t#ereof.Par ' T#e "ourts s#all also 7x t#e duration of t#e period en it depends upon the will of thedebtor.Par T#e "ourts s#all deter0ine i"# period as 0a6 under t#e "ir"u0stan"es #a3e been pro%a%ly(onte*plate)b6 t#e parties. Once 65e# b( he cours> he 'erio# c!nno be ch!nge# b( hem:

0: Period is i0plied a period &as intendedJ also INDEFINITE PERIOD2: Period depends solel6 on &ill of debtor


34/110


o If it &ere (on)ition4 3oid

III. Alternative o%ligations @ pluralit6 of ob5e"ts

Con(ept). Con-n(tive< all prestations 0ust be perfor0ed to extinuis# obliation'. !is-n(tive < one or so0e prestations 0ust be perfor0ed to extinuis# obliation

a. Alternative < Debtor 0ust perfor0 one of se3eral alternati3es+ "#oi"e belons to debtor%NLESS expressl6 i3en to "reditor

b. &a(-ltative < One prin"ipal prestation but one or 0ore substitutes+ "#oi"e belons toDEBTOR ONL,

Absent indi"ation t#at it is fa"ultati3e+ t#e pres-*ption is that it is ALT#"NATI.#be"ause"reditor &ould be at a disad3antae if fa"ultati3e. a"ultati3e is ne3er presu0ed.

Art ))// A person alternati3el6 bound b6 diKerent prestations s#all "o0pletel6 perfor0 one of t#e0.Par ' T#e "reditor "annot be "o0pelled to re"ei3e part of one and part of t#e ot#er undertain.

"ight of (hoi(e debtor unless expressl6 ranted to "reditorArt )'(( T#e ri#t of "#oi"e belons to t#e )e%tor+ UN*ESSit #as been e5'ressl( gr!ne#to t#e

"reditor.Par ' T#e debtor s#all #a3e no ri#t to "#oose t#ose prestations i"# are i0possible+ unla&ful or i"#"ould not #a3e been t#e ob5e"t of t#e obliation

o Grant to "reditor "annot be i0pliedo C#oi"e 0a6 also be entrusted b6 t#e parties to a t#ird persono LIITATIONS ON RIGQT O CQOICE

Ri#t to "#oose is indi3isible >"annot "#oose part of one and part of t#e ot#er@ Cannot "#oose prestations i"# are i0possible+ unla&ful or "ould not #a3e been t#e

ob5e"t of t#e obliation >Art )'((+ Par '@

#De(t of noti(e of (hoi(e

T#e eKe"t of noti"e of "#oi"e is to li*it the o%ligation to the o%e(t or prestation sele(te)+

&it# all t#e "onseuen"es i"# t#e la& pro3ides. T#e obliation is (onverte) to a si*ple o%ligationto perfor0 t#e prestation "#osen.

On"e t#e sele"tion #as been "o00uni"ated+ it be"o0es irrevo(a%le.

/hen noti(e pro)-(es eDe(tArt )'() T#e "#oi"e s#all produ"e no eKe"t ex"ept fro0 t#e time it has been communicated.

Noti"e of sele"tion?"#oi"e 0a6 be in an6 for0 pro3ided it is su"ient to m!4e he oher '!r(4now h! elecion h!s been m!#e.

o Orall6o In &ritino Ta"itl6 !ci #ecl!r!ion o" he selecion0a6 be done4

perfor*an(eb6 t#e debtor o #as t#e ri#t to "#oose or in t#e a((eptan(eofa prestation b6 t#e "reditor en #e #as t#e ri#t of sele"tion

en t#e "reditor s-es for the perfor*an(eof one of t#e prestationo An6 ot#er uneui3o"al ter0s

La& does not reuire t#e ot#er part6 to "onsent to t#e "#oi"e 0ade b6 t#e part6 entitled to"#oose. A 0ere de"laration of t#e "#oi"e+ "o00uni"ated to t#e ot#er part6 is su"ient unilateral de"laration of &ill

Onl6 possible ECEPTION4 Debtor #as "#osen a prestation i"# "ould not #a3e been t#e ob5e"tof t#e obliationJ "reditor;s "onsent t#ereto &ould brin about a no3ation of t#e obliation

PL%RALIT, O S%BECTo oint4 "#oi"e 0ust be "onsented b6 all+ as none of t#e0 "an extinuis# t#e obliation

aloneo Solidar64 "#oi"e b6 one &ill be bindin personall6 upon #i0+ but not as to ot#er

>baeeetZ@


35/110


Ri#t to "#oose is not lost b6 t#e 0ere fa"t t#at t#e part6 entitled to "#oose dela6s in 0ain #issele"tion.

o Sir Labita4 -%stit-te) perfor*an(een t#e debtor does not &ant to 0ae a"#oi"e+ "reditor "an as t#e "ourt for a rdpart6 e.. "ler of "ourt+ s#eriK+ or an6 ot#erno&ledeable rdperson to "#oose

#De(t of loss or i*possi%ility of one or all prestations

Art )'(' T#e debtor s#all lose t#e ri#t of "#oi"e+ en a0on t#e prestations ereb6 #e isalternati3el6 bound+ onl6 one is pra"ti"able.

Con3erted to a sim'le !n# 'ure oblig!ionJ T#e i0possibilit6 of t#e a"t 0ust not be due tocre#ior@s !cere Art )F( s#all appl6.

Creditor "annot "lai0 da0aes+ be"ause it;s t#e debtor;s "all

Art )'( If t#rou# t#e creditorBs act+ t#e debtor cannot ma&e a choicea""ordin to t#e ter0s oft#e obliation+ t#e latter 0a6 res(in) t#e "ontra"twith )a*ages.

I0possibilit6 due to "reditor

Art )'(F T#e cre#iors#all #a3e a ri#t to in#emni( "or #!m!gesen+ t#rou# t#e fault of thedebtor+

!: ALL TQE TQINGS i"# are alternati3el6 t#e ob5e"t of t#e obliation #a3e been 7Sorb: COPLIANCE of t#e obliation #as be"o0e -5SS-+70.

Par ' T#e in#emni(s#all be 7xed tain as a basis t#e ;'7:0 of t#e l!s hing which #is!''e!re#ORt#at of t#e service which l!s bec!me im'ossible.Par Da0aes ot#er t#an t#e 3alue of t#e last t#in or ser3i"e 0a6 also be a&arded.

Applies to "ases ere t#e )e%tor has the right to (hoose If onl6 so0e of t#e prestations are lost?i0possible+ not liable for da0aes be"ause #e "an still

"o0pl6 b6 perfor0in t#e re0ainin prestations e3en if t#ere is onl6 one >Art )'('@ LOSS TQRO%GQ ORT%ITO%S E8ENTS4 obliation is extinuis#ed+ debtor not liable for da0aes

Art )'(1 9#en t#e (hoi(e has %een e8pressly given to the (re)itor + t#e obliation s#all ce!se obe !lern!ivefro0 t#e da6 en t#e selection has been communicatedto t#e debtor.Par ' %ntil t#en+ t#e responsibilit6 of t#e debtor s#all be o3erned b6 t#e follo&in rules4

). If ONEof t#e t#in is LOTt#rou# fortuitous event+ #e s#all perfor0 t#e obliation b6deli3erin t#at i"# t#e "reditor s#ould "#oose fro0 t#e re0ainder+ or t#at i"# re0ains ifonl6 one subsists.

'. If t#e LOof ONEof t#e t#ins o""urs t#rou# t#e fault of the debtor+ t#e "reditor 0a6 "lai0an6 of t#ose subsistin+ or t#e pri"e of t#at i"#+ t#rou# t#e fault of t#e debtor #as disappear+&it# a ri#t to da0aes.

. IfA**t#e t#ins are LOTt#rou# t#e fault of the debtor+ t#e "#oi"e b6 t#e "reditor s#all fallupon t#e pri"e of an6 of t#e0+ also &it# inde0nit6 for da0aes.

Par t#e sa0e rules s#all be applied to o%ligations to )o or not to )o+ in "ase ONE> OR SO%E ORA** of t#e prestations s#ould be"o0e I4POIBL#.

&ACULTATI.# OBLIGATION

Art )'(2 9#en onl( one 'res!ion h!s been !gree# u'on> bu he obligor m!( ren#er !noher insubsiuion+ t#e obliation is "alled facultative.Par ' T#e LOTor !#T#"IO"ATIONof t#e hing inen#e# !s ! subsiuet#rou# t#e negligenceoft#e oblior+ does notrender #i0 liable. B%T on"e t#e substitution #as been 0ade+ t#e oblior is lia%lefor t#e loss of t#e substitute on a""ount of #is delay+ negligenceor fraud.

Con(ept Onl6 one prestation is due+ but t#e oblior reser3ed t#e ri#t to render anot#er insubstitution


36/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,:of 110!ari"#i E. Santos $ %P La& B'()'

!isting-ishe) fro* Alternative O%ligation

A TO ALT#"NATI.# &ACULTATI.#Contents oft#eobliation

8arious prestations all of i"# "onstitute partsof t#e obliation

Onl6 t#e prin"ipal "onstitutes t#e obliation +t#e a""essor6 bein onl6 a 0eans to fa"ilitatepa60ent

Nullit6 ofprestation

Nullit6 of one prestation does not in3alidate t#eobliation i"# is still in for"e &it# respe"t tot#ose i"# #a3e no 3i"e

Creditor "an "#oose fro0 t#e re0ainder

Nullit6 of t#e prin"ipal prestation >e.. en t#eob5e"t is unla&ful or outside t#e "o00er"e of0an@ in3alidates t#e obliation.

Creditor "annot de0and t#e substitute e3enen t#is is 3alid.

C#oi"e Ri#t to "#oose 0a6 be i3en to t#e "reditor Onl6 t#e debtor "an "#oose t#e substituteprestation

EKe"t of Loss>fortuitouse3ent@

Onl6 t#e IPOSSIBILIT, O ALL t#e prestationsdue wihou "!ulof t#e debtor extinuis#es t#eobliation

I0possibilit6 of t#e prin"ipal prestation issu"ient to extinuis# t#e obliation+ e3en ift#e substitute is possible.

Loss of substitute does not 0ae debtor liable+unless substitution #as been 0ade

EKe"t of Loss>t#rou#

fault@

Debtor not liable if ot#er prestation stilla3ailable

If "#oi"e belons to "reditor+ loss of onealternati3e i3es rise to liabilit6

Debtor is liableLoss of t#e substitute before substation does

not render debtor liable

#De(ts of -%stit-tiono Before t#e substitution is eKe"ted+ t#e substitute is not t#e prestation t#at is due.o I t#e substitute prestation be"o0es i0possible due to t#e fault or nelien"e of t#e debtor

obliation is not aKe"ted+ and #e "annot be #eld for da0aes+ e3en if #e a"ts &it# badfait# in renderin t#e substitute i0possible.

o ro0 t#e ti0e t#e debtor "o00uni"ates to t#e "reditor t#at #e ele"ts to perfor0 t#esubstitute prestation+ substitution is eKe"ti3e.

I8. Moint an) oli)ary o%ligation @ pluralit6 of sub5e"ts+ t#e 5uridi"al tie t#at bindst#e0

@-N +7->'-NS

Con(ept Ea"# of t#e debtors is liable onl6 for a proportionate part of t#e debt+ and ea"# "reditor isentitled onl6 to a proportionate part of t#e "redit. Ea"# "reditor "an re"o3er onl6 #is s#are of t#eobliation and ea"# debtor "an be 0ade to pa6 onl6 #is part. Sir Labita des"ribes it as a t#in plasti"rope or strin t#at binds t#e parties.

"e9-isites of Moint O%ligations

). Pluralit6 of sub5e"ts'. Deter0ination of t#e s#ares in t#e de0andabilit6 of t#e ful7ll0ent of t#e obliation

/or)s -se) to in)i(ate oint o%ligations

o an"o0unadao

an"o0unada Si0pleo Pro ratao 9e pro0ise to pa6U used b6 t&o or 0ore siners

Pres-*ptions in Moint O%ligationsArt )'( T#e "on"urren"e of t&o or 0ore "reditors or of t&o or 0ore debtors in one and t#e sa0eobliation does not implyt#at ea"# one of t#e for0er #as a ri#t to de0and+ OR t#at ea"# one oft#e latter is bound to render entire "o0plian"e &it# t#e prestations. T#ere is a OLI!A"6LIABILIT6onl6 en t#e obliation e5'ressl( so s!esOR en t#e l!wOR t#e n!ureof t#eobliation re8uiressolidarit6.

Art )'(- If fro0 t#e la&+ or t#e nature or t#e &ordin of t#e obliations to i"# t#e pre"edinarti"le refers t#e "ontrar6 does not appear+ t#e "redit or debit s#all bepresumed to be divided as


37/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,>of 110!ari"#i E. Santos $ %P La& B'()'

many eCual sharesas t#ere are "reditors or debtors+ t#e "redits or debts bein "onsidered distin"tfro0 one anot#er+ sub5e"t to t#e Rules of Court o3ernin t#e 0ultipli"it6 of suits.

oint "#ara"ter is presu0ed Eual s#ares

#De(ts of Moint O%ligation

a. Extent of liabilit6 of debtor). Onl6 &it# respe"t to #is parti"ular s#are in t#e debt'. 8i"es of ea"# obliation arisin fro0 t#e personal defe"t of a parti"ular debtor or "reditor does

not aKe"t t#e obliation or ri#ts of t#e ot#ers. T#e insol3en"6 of a debtor does not in"rease t#e responsibilit6 of #is "odebtors nor does it

aut#ori=e a "reditor de0and an6t#in fro0 #is "o"reditorsF. OINT DI8ISIBLE OBLIGATION4 defense of res ju#ic!!is not extended fro0 one debtor to

anot#er

b. Extent of ri#t of "reditor). De0and b6 one "reditor upon one debtor produ"es t#e eKe"ts of default onl6 &it# respe"t to

t#e "reditor o de0anded and t#e debtor on o0 t#e de0and &as 0ade+ but not &it#

respe"t to ot#ers'. Interruption of pres"ription b6 t#e 5udi"ial de0and of one "reditor upon a debtor does not

bene7t t#e ot#er "reditors nor interrupt t#e pres"ription as to ot#er debtors

". In "ase of4 Nov!ionB AKe"ts onl6 t#e s#are of t#e 5oint "odebtor in o0 t#e no3ation is "reated

&om'ens!ion4 AKe"ts onl6 t#e s#are of t#e 5oint "odebtor in o0 t#e "o0pensation taespla"e

&on"usion4 Art )' Confusiondoes not e)tinguisha 5oint obliation ex"ept as reards t#es#are "orrespondin to t#e "reditor or debtor in o0 t#e t&o "#ara"ters "on"ur.

Remission4 Bene7ts onl6 t#e 5oint "odebtor in o0 t#e re0ission is ranted+ obliationextinuis#ed

S7-D''-NS

Con(ept Ea"# of t#e debtors is liable for t#e entire obliation+ and ea"# "reditor is entitled to de0andt#e ole obliation. Ea"# "reditor 0a6 enfor"e t#e entire obliation and ea"# debtor 0a6 be oblied topa6 it in full. Sir Labita des"ribes it as a solid steel "able t#at binds t#e parties.

Solidar6 obliations exist onl6 b64o Stipulation of t#e partieso La&o Nature of obliationo C#are of "ondition is i0posed upon leatees or #eirso I0puted b6 7nal 5ud0ent upon se3eral defendants

"e9-isites of Moint O%ligations). Pluralit6 of sub5e"ts

'. Deter0ination of t#e s#ares in t#e de0andabilit6 of t#e ful7ll0ent of t#e obliation /or)s -se) to in)i(ate oint o%ligations

o an"o0unada solidariao oint and se3eralo In solidu0o I pro0ise to pa6U follo&ed b6 t#e sinature of t&o or 0ore personso Indi3iduall and "olle"ti3el6

ir La%itags *agi( short(-t for*-la >appli"able onl6 tooint lia%ility on %oth si)es@o [ of debtors x [ of "reditors \ di3isor of t#e total a0ount of obliation


38/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,?of 110!ari"#i E. Santos $ %P La& B'()'

IN! O& OLI!A"6 OBLIGATION

a$ As to so-r(eArt )'(- ro0 la&+ or t#e nature or t#e &ordin of t#e obliationU

70>'7Art )/)1 T&o or 0ore prin"ipals appointed an aent for "o00on transa"tion+ solidaril6 liable to

aentArt )/F1 T&o or 0ore bailees to o0 a t#in is loaned in t#e sa0e "ontra"ts >"o00odatu0@Art ')/F oint tortfeasorsArt ')F2 oint o"ious 0anae0ent+ t&o or 0ore 0anaersArt ')1 oint pa6ees in solutio indebiti >pa60ent is not due@Art ))/+ RPC

N;0N-N'7b6 stipulation of parties


39/110

OBLIGATIONS * CONTRACTS $ Prof. Labita+ A.,. '((-'((/ Pae ,of 110!ari"#i E. Santos $ %P La& B'()'

DEAND B, SE8ERAL CREDITORS4 Pa6 t#e one o noti7ed #i0 7rst. Ifsi0ultaneous+ debtor reser3es t#e ri#t to "#oose.

Does not appl6 to IED SOLIDARIT,4 solidar6 "odebtor 0a6 pa6 in be#alf of t#eone to o0 de0and #as been 0ade AND to an6 of t#e solidar6 "reditors

T#e "reditor 0a6 pro"eed aainst AN6 ON#of t#e solidar6 debtors or O4#or ALLof t#e0simultaneously. remission b( ! cre#ior No3ation+ "o0pensation+ "onfusion or re0ission of t#e debt+ 0ade %y anyof t#e solidar6

"reditors OR with anyof t#e solidar6 debtors+ s#all e)tinguisht#e obliation+ &it#outpre5udi"e to t#e pro3isions of Art )')/ i.e. responsibilit6 of a solidar6 "odebtor &it# respe"tto rei0burse0ent prior to #is re0ission >Art )')1 Par )@

ii$ oli)ary(o(re)itorEs

In c!se o" nov!ion> com'ens!ion> con"usion> remission T#e "reditor o 0a6 #a3e exe"uted an6 of t#ese a"ts+ as &ell as #e o "olle"ts t#e debt+

s#all be liable to others for the sharein t#e obliation "orrespondin to t#e0 >Art )')1Par '@

o Re0ission done b6 se3eral but not all of t#e "reditors4 t#ose o 0ade it do not #a3ea"tion aainst ea"# ot#er+ but all of t#e0 liable for t#e s#are of one o does notre0it

Preju#ici!l !cs 'rohibie# Ea"# one of t#e solidar6 "reditors 0a6 do ate3er is useful to t#e ot#ers+ but not an6t#in

i"# 0a6 be pre5udi"ial to t#e latter. >Art )')'@o E.. re0ission+ no3ation+ "o0pensation and 0erer?"onfusiono Tae note t#at t#e sa0e a"t is per0itted b6 Art )')1+ erefore Tolentino "on"ludes

t#at t#e pro3ision is un#appil6 ina""urate.o To #ar0oni=e &it# Art )')14 T#e pre5udi"ial a"ts are 3alid as to t#e debtor+ but not

&it# respe"t to t#e "o"reditors ose ri#ts subsists and "an be enfor"ed aainst t#e"reditor o perfor0ed pre5udi"ial a"ts

Assignmen o" righs no !llowe# Solidar6 "reditor "annot assin #is ri#ts &it#out t#e "onsent of ot#ers >Art )')@

o 9#6 As a solidar6 "reditor+ #e is an aent of ot#ers+ "annot assin t#at aen"6&it#out t#e "onsent of #is prin"ipals. I0plies 0utual "on7den"e 0a6 tae into a""ountt#e personal uali7"ation of ea"# "reditor.

o Assin0ent of ri#ts allo&ed as to "o"reditor

%$ OLI!A"6 !#BTO"in relation to4

i$ Co**on(re)itor

Oblig!ion o 'er"orm Ea"# one of t#e solidar6 "odebtor is bound to render entire (o*plian(e&it# t#e

prestations >Art )'(@

In c!se o" nov!ion> com'ens!ion> con"usion> remission b( ! cre#ior


40/110


#8ting-ishes the o%ligation&it#out pre5udi"e to t#e responsibilit6 of a solidar6 "odebtor&it# respe"t to rei0burse0ent prior to #is re0ission >Art )')1 Par )@

ii$ oli)ary(o)e%tor

In c!se o" '!(men b( ! co)#ebor Pa60ent b6 one of t#e solidar6 "odebtors extinuis#es t#e obliation. >Art )')+ Par )@

Solidar6 "odebtor o paid 0a6 rei0burse fro0 #is "odebtors onl6 t#e s#are i"#"orresponds to ea"#+ &it# t#e interest for t#e pa60ent

Obligations and Contracts Reviewer by Chi[1]

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