Obligations Reviewer

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OBLIGATIONS BIRTH AND SOURCES Judicial necessity: to give, to do or not to do court = order performance of an obligation if debtor does not fulfill it following elements should be meet [SOE] 1) Subject Person a. Active Subject/Obligee creditor possessor right to demand b. Passive Subject/Obligor debtor duty to perform 2) Object/Prestation/Conduct a. to give b. to do c. not to do 3) Efficient cause / Vernacular Juris / Legal of Jurisdical o right: juridical necessity o course of action: courts o sources of civil obligation vs. natural obligation perfect obligation imperfect obligation positive law natural law enforcement in courts church Sources of Obligation 1) Legal Obligations Taxes Law o not presumed 2) Contractual Obligation meeting of minds 3) Quasi-Contract extra-contractual obligation unjust enrichment a. Solutio Indebiti o payment by mistake o the receiver of the payment has no right to receive = return the payment

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Transcript of Obligations Reviewer

OBLIGATIONS

BIRTH AND SOURCESJudicial necessity: to give, to do or not to do court = order performance of an obligation if debtor does not fulfill it following elements should be meet [SOE]1) Subject Persona. Active Subject/Obligee creditor possessor right to demandb. Passive Subject/Obligor debtor duty to perform2) Object/Prestation/Conducta. to giveb. to doc. not to do3) Efficient cause / Vernacular Juris / Legal of Jurisdical right: juridical necessity course of action: courts sources of civil obligation vs. natural obligation perfect obligationimperfect obligationpositive lawnatural lawenforcement in courtschurch

Sources of Obligation

1) Legal Obligations Taxes Law not presumed2) Contractual Obligation meeting of minds3) Quasi-Contract extra-contractual obligation unjust enrichmenta. Solutio Indebiti payment by mistake the receiver of the payment has no right to receive = return the paymentb. Negotiorum Gestio unauthorized managementi. Property = neglectedii. 3rd Party = manage it: Lawful, Unilateral, Voluntary Creditor Gestor or officions managers iii. Owner = enriched benefited obligation to pay just compensation refund necessary and ordinary expenses4) Delicts civil obligation from crimes acts or omissions punishable by law Prison = criminal obligation Pay Damage = civil obligation5) Quasi-Delicts civil obligation from negligence Culpa Aquiliana Torts or Civil Negligence

Obligations of Debtor 1) To givea) Determinate Thing (Specific)i) Principal Obligation need to deliver the thingii) Legal Accessory Obligation(1) Deliver accessions (real property) and accessories (personal property)(2) Deliver the fruits(a) natural fruit(b) industrial fruit = with human intervention(c) civil fruit Cut-off? From when? Time obligation to deliver arises, except: stipulated sale fruits buyer: from the perfection of contract of sale pending delivery take care: ordinary diligence = due diligence b) Indeterminate Thing (Generic) Genus Nunguam Perit2) To do performance of a promise3) Not to do no delay negative obligation

Primary RemediesDeterminate ThingGeneric ThingTo DoNot To Do

1. Specific Performance(compel the debtor to deliver the determinate thing YES(only)NONONO

2. Substituted Performance(Cash at 3rd parties at debtors expense)NOYESYESYES

3. Equivalent Performance(Cash na lang)YESYESYESYES

4. Other Damages(Moral, Exemplary, Actual = Bad Faith or Malice)YESYESYES(if poorly done, it can be undone at debtors expense)YES(what is prohibited = done = can be undone at debtors expense)

Subsidiary or Secondary Remedies if the primary remedies are not available1) Accion Subgrogatoria (Subrogatory A) Action of the creditor vs. the debtor of his debtor The debtor of my debtor is also my debtor2) Accion Pauliana (Rescissory A)= action to rescind creditor can rescind Cs entitled by the debtor to debtor him example: donation by an insolvent debtor

Remedies when the debtor to failed to perform due to his fault 1. Fraud (Dolo) Dolo incidente fraud in the performance of obligation Remedy: ask for damages2. Negligence (Culpa)Culpa AquilianaCulpa Contractual

SourceObligationDamages

ContractNo (pedestrian: Bus)Yes (passenger: Bus)

Due DiligenceYes = defenseNo

Presumption of NegligenceNot presumed (prove it)Yes, it is presumed

3. Delay (Mora) Mora solvendi = debtors delay in performancei. positive obligationii. due and demandable = obligation with a periodiii. creditor demanded RULE: no delay, no demand (judicial and extra judicial)iv. debtor failed to perform Except: Delay is automatic (RTOLD)1. Reciprocal obligation ex. sale2. Time is essential 3. Obligation so promotes (stipulated)4. Law so provides ex. VAT5. Demand will be useless a. debtor = lost it b. debtor = another Mora accipiendi = consignation4. Contravention (to violate) = tenor obligation

Fortuitous Event with Fraud, Negligence, Delay and Contravention Debtor is still liable impossible to foresee acts of nature impossible to avoid acts of majeure/ force majeure beyond the control of debtor debtor is not partly at fault

Debtor is exempted from liabilities, except the following: (LOGS)1. Law so provides Fortuitous events + fraud, negligence, delay and contravention2. Obligation assessment of risk Insurance3. Generic Generic Nexer perishes4. Stipulated

KINDS OF OBLIGATIONS

A. Primary Obligations1) Pure Obligation and Conditional Obligation

Pure Obligation without a term or condition demandable at once

Conditional Obligation demandability depends upon the happening of the condition Future and uncertain event Past event unknown to the parties

i. Suspensive Condition demandable only when the condition is fulfilled condition antecedent or condition precedentGeneral Rule: the effect of the fulfillment of the suspensive conditionretroacts to the day of the constitution of the obligation

Exceptions: no retroactive effects with respect to fruits and interests1. Reciprocal Obligations fruits and interests shall be deemed to have been mutually compensated = each party shall keep the fruits and interests received by him prior to the fulfillment of the condition

2. Unilateral Obligations debtor keeps the fruits and interests received before the fulfillment of the condition

Loss of the thing before the fulfillment of the suspensive condition Without debtors fault obligation = extinguished With debtors fault debtor = pay damages

Deterioration of the thing before the fulfillment of the suspensive condition Without debtors fault impairment shall be borne by the creditor With debtors fault creditor pay opt to: 1rescission + damages and 2fulfillment + damages

Improvement of the thing before the fulfillment of the suspensive condition By nature or by time benefit of the creditor At the expense of the debtor debtor = rights to usufructuary

ii. Resolutory Condition will extinguished the obligation parties shall return to each other what they have received condition subsequent in case of loss, deterioration or improvement of a thing = same rule as to suspensive condition

Rules1. Illegal or Immoral = VOID2. Impossible = VOID3. Not to do = VALID (demandable)4. Debtor prevented the condition to happen = DEMANDABLE (deemed fulfilled)5. Sole will of the partya. Creditor only: VALID (if feel mo)b. Debtor only: VOID (if feel ko)

Potestative: condition depends upon the will of one of the contracting parties. i. Debtora. Suspensive: obligation = VOID even if the condition is fulfilled, the obligation is not demandable.b. Resolutory: obligation = VALIDii. Creditora. Suspensive: obligation = VALIDb. Resolutory: obligation = VALID

Casual: condition depends upon chance or upon the will of the third person

Mixed: condition depends partly upon the will of one of the parties and partly upon chance of upon the will of a third person

Possible: one that is capable of fulfillment in its nature and by law

Impossible: one that is not capable of fulfillment in its nature or due to operation of law

If the condition is not to do an impossible thing, it shall be deemed as not having been agreed upon.

Reciprocal Obligation: arises from the same cause and in which each party is a debtor and a creditor of the other obligation of one is dependent upon the obligation of the other to be performed simultaneously = performance of one is conditioned upon the simultaneous.

Remedies of the injured party in Reciprocal Obligation1. Rescission with damages2. Fulfillment of the obligation with damages

2) Obligation with a period

PERIOD = sure to happen or arise

a) Suspensive Period its arrival; increase obligation (on 12/25/2015)b) Resolutory Period its arrival decreases obligation (until the end of the year)c) A day Certain sure to come but unknown when (death of a person)

CONDITIONPERIOD

As to fulfillmentEvent that may or may not happenEvent that must necessarily come, at a date known beforehand, or at a time that cannot be determined

As to timeRefer to the future or past even unknown to the parties

Always refer to the future

As to influence on the obligationCauses an obligation to arise or to ceaseMerely fixes the time for the efficaciousness of an obligation

As to the will of the debtorA condition depends upon the will of the debtor which is suspensive shall annul the obligationA period that depends upon the will of the debtor authorizes the court to fix its duration

Kinds of Periods1. Ex die: period with a suspensive effect obligation becomes demandable upon the lapse of the period2. In Diem: period with a resolutory effect obligation is demandable at once but is extinguished upon the lapse of the period3. Legal: period that is fixed by law4. Voluntary: period fixed by the parties5. Judicial: period fixed by the court

For whose benefit is the period? for both debtor and creditor except when contrary is stipulated Debtors benefit only debtor has the option on or before 12/25/15 Creditors benefit only creditor has the option on 12/25/15 unless creditor demands sooner

When the debtor loses the benefit of the period? [IFIDVAS]-Obligation becomes immediately demandable i. Debtor is insolventii. Debtor failed to furnish the guarantee he promisediii. Debtor has impaired the guarantee through his fault (no substitute)iv. Disappear or Lost thru fortuitous event (unless debtor can deliver to creditor a satisfactory substitute)v. Violated the condition for the periodvi. Debtor absconds vii. Stipulated

When can courts intervene and fix the period for both debtor and creditor? Debtor: I will pay when my means prompt me Debtor: sole will of the debtor Little by little: debt of 100k 1 pesos per month Period is intended but not fixed as soon as possible

3) Alternative Obligation and Facultative Obligation

Kinds of Obligation according to the number of Prestations

1. Simple there is only one prestations2. Compound there are several prestationsa. Conjunctiveseveral prestations are due but all must be performedb. Distributive or disjunctiveeither be alternative or facultative

Alternative Obligation: one where several prestations are due but the complete performance of one of them is sufficient to extinguish the obligation

Right to Choose Prestation DEBTOR (unless expressly given to creditor)Limitations on debtors right to choose debtor must completely perform the prestation chosen. He cannot compel the creditor to receive part of one and part of another undertaking cannot choose those prestations which are impossible, unlawful or which could not have been the object of the obligation

When obligation ceases to be alternative and becomes a simple obligation1. When the debtor has communicated his choice to the creditor2. When among the prestations whereby the debtor is alternatively bound, only one is practicable3. When the creditor has communicated his choice to the debtor, if the creditor has been expressly given the right of choice

Rules in case of loss of things or impossibility of services, which are alternatively the object of the obligation Right of Choice = DEBTOR1. if only one or some are lost through a fortuitous event or through the debtors fault debtor may deliver any of the remainder or that which remains if only one subsists.2. if all are lost through a fortuitous event obligation is extinguished3. if all are lost through the debtors fault debtor shall pay the value of the last thing that was lost plus damages Right of Choice = CREDITOR1. if only one or some are lost through a fortuitous event debtor shall deliver that which the creditor should choose among the remainder or that which remains if only one subsists.2. if all are lost through a fortuitous event obligation is extinguished3. if only one or some are lost through the debtors fault creditor may claim any of those subsisting or the price of those which were lost through the debtors fault plus damages4. if all are lost through the debtors fault creditor may claim the price of any of them plus damages

Facultative Obligation: only one prestation is due but the debtor may render another in substitution

Rules in case of loss of principal thing and substitute

1. Before substitutiona. Principal thingi. fortuitous event: obligation is extinguishedii. debtors fault: debtor shall pay damagesb. Substitute no additional obligation on the debtor because it is not yet due2. After substitutiona. Principal thingimposes no additional obligation on the debtor because the thing due is already the substitute = the obligation also ceases to be a facultative obligation and becomes a simple obligationb. Substitutei. fortuitous event: obligation is extinguishedii. debtors fault: debtor shall pay damages

Alternative ObligationFacultative Obligation

Several prestations are due, but the performance of one is sufficient to extinguish the debt

Only one prestation, the principal obligation, is due

If there are void prestations, the others may still be valid, hence, the obligation remains

If the principal obligation is void, the debtor is not required to give the substitute

The right of choice is with the debtor unless expressly given to the creditor

The right of choice belong to the debtor only

If all prestations are impossible except one, that which is possible must still be given If the principal obligation is impossible, the debtor is not required to give the substitute

4) Joint Obligation and Solidary Obligation

Joint Obligation: each debtor is liable only for a proportionate part of the debt and each creditor is entitled only to a proportionate part of the credit Proportioantely Pro rata Mancomunada Mancomunada Simple

Solidary Obligation: each debtor is liable for the whole obligation and each creditor is entitled to demand payment of the whole obligation Jointly and Severally Individually and collectively In solidum Mancomunada Solidaria Juntos o separadamente

Solidary is not presumed (too burdensome) unless: 1law provides (conspiracy to commit a crime) and 2parties stipulated

Kinds of Solidary Obligations1. Passive solidarity part of the debtors2. Active solidarity part of the creditors3. Mixed solidarity or solidarity on the part of both debtors and creditors

X Y P100T on 12/25/15 + 10% for every week of delayPenalty: to ensure performanceLimitations illegal or immoral: VOID only the principal will subsist no burdensome amount shocking to the conscience court can reduce itSubstitute to damages

When obligation has penal clause, no more Damages can be asked except1. Debtor refuses to pay the penalty2. Debtor = dolo/fraud 3. Stipulated

5) Divisible Obligation and Indivisible Obligation

Divisible Obligation capable of partial performance part which is not affected by the impossible of unlawful conditionVALID deemed divisible obligation has for its object the execution of a certain number of days of work obligation has for its object the accomplishment of work by metrical units analogous things which by their nature are susceptible of partial performace

Indivisible Obligation not capable of partial performance by its nature or by law or agreement of the parties deemed indivisible obligations to give definite things not susceptible of partial performance where the object or service is physically divisible but it is indivisible by provision of law where the object or service is physically divisible but it is indivisible by the intention of the parties

6) Obligation with a penal clause one which provides for a greater liability on the part of the debtor in case of non-compliance penal clause = accessory undertaking on the part of the debtor

Functions of Penal Clause1. to provide for liquidated damages2. to strengthen the coercive force of the obligation by a threat of greater responsibility in the event of breach

Kinds of Penal Clause1. Legal and Conventionala. Legal imposed by lawb. Conventional imposed by the agreement of the parties2. Subsidiary and Jointa. Subsidiary when only the penalty may be enforcedb. Joint when both the obligation and the penalty may be enforced

General Rule: The penalty takes the place of the damages and interest in case of non-compliance

Exceptions: 1. when there is a stipulated to that effect2. when the debtor refuses to pay the penalty3. when the debtor is guilty of fraud in the performance of the obligationWhen the court may reduce the penalty?1. when the obligation has been partly complied with by the debtor2. when the obligation has been irregularly compiled with by the debtor3. when the penalty is iniquitous or unconscionable even if there has been no performance

Effect of nullity of principal obligation, penal clause1. nullity of principal obligation carries with it the nullity of the penal clause penal clause is accessory undertaking and cannot stand by itself2. nullity of the penal clause does not carry with it that of the principal obligation principal obligation can stand by itself

B. Secondary Obligations1) Real Obligation and Personal Obligation2) Unilateral Obligation and Bilateral Obligation3) Individual Obligation and Collective Obligation4) Positive Obligation and Negative Obligation

Positive Obligation condition that some event happen at a determinate time obligation is extinguished as soon as the time expires or it has become indubitable that the event will not place

Negative Obligation condition that some event will not happen at a determinate time obligation becomes effective the time has elapsed or it has become evident that the event will not occur

5) Accessory Obligation and Principal Obligation6) Conventional Obligation and Legal Obligation7) Civil Obligation and Natural Obligation

EXTINGUISHMENT OF OBLIGATIONS [PoLoCo3NO]

1) Payment or Performance How must the payment be made1. There must be delivery of the thing or rendition of the service that was contemplateda. The debtor of a thing cannot compel the creditor to accept a different one although the latter may be of the same value as, or more valuable than that which is dueb. To do or not to do: An act or forbearance cannot be substituted by another act or forbearance against the obligees will.c. To give a generic thing: the creditor cannot demand a thing of superior quality; debtor cannot deliver a thing of inferior quality d. Monetary obligation: legal tender2. The payment or performance must be completea. Substantially performed in good faith: obligor may recover as though there had been strict and complete fulfillment, less damages suffered by the obligeb. obligee accepts the performance (incomplete or irregularity) without any protest: obligation is deemed fully complied with Review to give determinate thing indeterminate thing

to do not to do Monetary Obligation Legal Tender (Php) Creditor cant refuse; otherwise, consignation Paper Bills any amount Coins P5 and P1 P1,000 only Below P100 only check is not a legal tender unless it was realized Foreign Currency (No as a rule) YES, if stipulated and if conversion (Exchange rate at the time of payment except, 1stipulated rate or 2extraordinary inflation Special modes of Payment Dacion en pago or Donation in Payment payment in kind; Debtor (solvent) ; Creditor (1 only) Obligation automatically extinguished Assignment in favor of creditors or Cession debtor is insolvent; Creditors (2 or more) not yet extinguished until accounting (governed by insolvency law); the debtor abandons all his properties except those which are exempt from execution; the creditors accept the abandonment.

Payment by cession = abandonment or assignment by the debtor of all his property in favor of his creditors so that the latter may sell them and recover their claims out of the proceeds.

Payment by cessionDation in Payment

1. There must be two or more creditors1. Plurality of creditors is not required

2. The debtor is insolvent2. The debtor may not be insolvent

3. Affects all the debtors properties except those exempt from execution3. Does not affect all the debtors properties

4. The creditors are authorized to sell only the debtors properties4. The creditor becomes the owner of the properties given as payment

5. The debtor is not released as a rule5. The debtor is released as a rule

Tender of Payment and Consignation Judicial Deposit Tender of payment = act of the debtor of offering to his creditor what is due him Consignation = act of depositing the sum or thing due with the judicial authorities whenever the creditor refuses without just cause to accept the same or in the cases when the creditor cannot accept it. Debtor offer to pay but creditor refuses to accept without valid cause Debtor can go to court and pay there. No valid consent unless there is a valid tender of payment (1st) except: Rule: Consignation is not automatic. [CLURITS]i. Court Orderii. Location of Creditoriii. Unknown Creditoriv. Refuses to issue receipt from Creditorv. Incapacitated (Creditor)vi. Two or more persons claimed to be the creditorvii. Stipulated Application of Payment 1 Debtor and 1 Creditor 2 or more debts (1due and 2demandable) Example: P100K (10%) and P200K (15%) Debtor has P50K 1. Debtor option (1st)2. If not CreditorPay all interest first

a. Apply most onerousb. Apply proportionally Debtors payment is incomplete Persons involved1. Payor Principal Debtor or Promissory Note (maker) or Bills/Checks (drawee or acceptor) successor in interest, heirs, assigns, estate 3rd parties? yes: effectsi. with interest in the fulfillment of obligation (example: Guarantor = 1creditor cant refuse; 22 effects in payment: areimbursement and bsubrogation)ii. total strangera. with consent of the debtor (same as guarantor above)b. without consent of debtor i. creditor can refuseii. if accepted: reimbursement only in so far as it benefited to the debtor2. Payee Principal Creditor or Holder in due course 3rd person: rule: NO except [ERA2]i. Creditor is estoppedii. Ratified by creditoriii. Redounded for creditors benefit accounting lawiv. 3rd person: acquired the creditors rights Subrogation2) Loss of the thing due 3 Types of Lossi. Perishes Physical Lossii. Goes out of Commerce Legal Loss iii. Disappears (unknown where) Civil Loss1. without debtors fault extinguished2. with debtors fault remedies

Effect on Obligation1. Loss of a determinate thing extinguishes the obligation, except when: fault of the debtor debtor has incurred in delay stipulated by the parties nature of the obligation requires the assumption of risk debt proceeds from a criminal offense when so provided by law when debtor has promised to deliver the same thing to two or more persons who do not have the same interest2. Loss of a generic thing do not extinguish the obligation (genus nunquam perit)except deliminated generic thing3. Loss in personal obligations (obligation to do) Obligation is extinguished when prestation becomes legally pr physically impossible without the fault of the debtor When the service has become so difficult as to be manifestly beyond the contemplation of the parties, the obligor may also be released in whole or in part.

3) Condonation or Remission Gratuitous or forgiveness of debtors obligation by the creditor debtors consent Taxable gift (Donors tax) creditor KINDS i. As to amount or extent1. Total when the total obligation (principal and accessory) is remitted2. Partial when only a part of obligation is remittedii. As to form1. Express made orally or in writing valid immovable property remission and acceptance must be in public instrument Movable or personal property More than 5,000 must be in writing Less than 5,000 in any form2. Implied inferred from the conduct of the parties when creditor voluntarily delivers the private document evidencing the credit to the debtor (Presumed) The accessory obligation of pledge is presumed remitted but not the principal obligation The remission of the principal debt extinguishes the accessory obligation (accessory follows the principal rule) The remission of the accessory obligation does not carry with it that of the principal debt

4) Confusion or Merger of Rights Person became debtor and creditor of himself Merger when there is a guarantor takes place in the principal debtor or creditor benefits the guarantors both the principal obligation and the guaranty are extinguished takes place in the person of the guarantor does not extinguish the obligation guaranty is only extinguished Merger in a joint obligation extinguishes only the share of the joint debtor or creditor in whom the characters of debtor and creditor concur Merger in a solidary obligation extinguishes the whole obligation Solidary debtor can demand reimbursement from his co-debtors Solidary creditor liable to his co-creditors for the share corresponding to each of them Example: A pivote to B X Y Z A Z is guarantor of A? No, because secondary Z is surety of A? Yes, due to solidary

5) Compensation or Set-off (Simplified payment or Abbreviated Payment) 2 persons became debtor and creditor of each other 2 kinds1. Legal Creditor Automatic When?i. both debts due and demandedii. both debts due has the same amount or kind2. Conventional Creditor not automatic (Parties must agree) 3. Judicial ordered by court4. Facultative may be claimed or opposed by one of the parties when one of the debts arises from a deposit when one of the debts arises from the obligations of a bailee in commodatum when one of the debts arises from a claim for support by gratuitous title when one of the debts consists in civil liability arising from a penal offense

6) Novation (before due and demandable)New debtor = insolventRevive old obligation

Novate = to change onlyi. subject 1debtors side Delegacion new debtor with old debtors consent if insolvent Rule: NO except old debtor is in bad faith = YES old debtor: public knowledge = YES Expromision new debtor without old debtors consent 2creditors side Legal or Subrogation Convention agreement of partiesii. object 1full and 2partial

Requisites of novation1. there must be a previous valid obligation2. there must be an agreement between the parties to modify or extinguish the obligation, except: when a creditor pays another creditor who is preferred, even without the debtors knowledge when even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latters share3. there must be the extinguishment of the old obligation4. there must be validity of the new obligation Kinds of novation1. According to object or purposea. Real or objective changing the object or principal conditionb. Personal or subjective change of partiesi. Substituting the person of the debtor (w/ creditors consent)1. Expromision third person initiates the substitution and assumes the obligation even without the knowledge or against the will of the debtor

Rights of new debtor if he makes payment the new debtor can only recover insofar as the payment has been beneficial to the debtor

If new debtor is insolvent or does not fulfill obligation shall not give rise to any liability on the part of the original debtor

2. Delegacion debtor initiates the substitution, w/c requires the consent of all parties

Rights of new debtor if he makes payment can recover what he has paid and is entitled to subrogation

If new debtor is insolvent the creditors right to proceed against the original debtor is not revived except when: when the insolvency of the new debtor was already existing and of public knowledge when the original debtor delegated his debt when the insolvency of the new debtor was already existing and known to the original debtor at the time he delegated his debtii. Subrogating a third persons in the rights of the creditor1. Conventional Subrogation change of creditor by the agreement of the parties2. Legal Subrogation by operation of law presumed when: creditor pays another creditor who is preferred even without the debtors knowledge a third person, not interested in the obligation, pays with the express or tacit approval of the debtor even without debtors knowledge, a person interested in the fulfillment of the obligation pays without prejudice to the effects of confusion as to the latters share3. Mixed change of object and parties to the obligaiton2. According to forma. Express novation declared in unequivocal terms parties inconvertibly disclose that their object in executing the new contract is to extinguish the old oneb. Implied when old and new obligation are not every point incompatible with each other3. According to extenta. Total or extinctive old obligation is total extinguishedb. Partial or modificatory old obligation still remains in force except as it has been modified

New obligation = VOID novation is void Original obligation = VOID no obligation to extinguish = non-existent Original obligation = VOIDABLE novation is valid provided that annulment may be claimed only by the debtor or when ratification extinguishes acts which are voidable = novation cures whatever defects Original obligation is subject to a suspensive or resolutory condition new obligation shall be subject to the same condition unless otherwise stipulated by the parties7) Other analogous modes (Secondary Modes) [CHIP / FRAM2D]a. Compromiseb. Happening of Fortuitous Events or Resolutory Conditionc. Illegality or Impossibilityd. Prescriptioni. Written Contracts = 10 yearsii. Oral Contracts = 6 years e. Full resolutory conditionf. Rescissiong. Annulmenth. Mutual Desistancei. Marriage of the partiesj. Death

ANSWERS

I. Identification1. Subject person or person2. Legal or Civil personality3. Contractual Capacity or Legal or Civil Capacity4. Law5. Accessions6. Accessories7. Moral Solvendi or Debtors delay8. Res perit Domino9. Culpa Aquiliana or 10. Dolo Incidente11. Legal tender12. Indivisibility of Payment Rule 13. Cession14. Consignation15. Unjust Enrichment16. Confusion17. Compensation18. Condonation19. Subjective Novation20. Prescription

II. True or False and Matching Type

30. 31. False32. False 33. False = facultative34. True35. False = debtor36. False 37. False = always, as a rule 38. False = from the time the obligation arises39. False = resolutory happening terminates obligation40. True41. False = future fraud = Void culpa=valid (Waiver civil aspect); past f&C=valid but not criminal aspect = government only)42. False = both debtor and creditor43. True = which he owes him; valid but court fixes period44. False = never presume45. False = essentially; not generally gratuitous46. False = with his knowledge47. False = application of payment48. True49. False = quasi contract 50. False = not voluntary; principle of recovery 51. C52. C53. A (S1=specific performance; S2=substituted performance)54. D55. A56. C57. D58. A59. C60. D61. B (S1=joint)62. C (S1=obligation is created S2=void)63. C (S1=can change S2=next year dont know when to happen)64. B65. D66. C67. A68. D69. D70. D (S1 = suspensive or resolutory)71. A (If acted in bad faith it will be C)72. B (S1=compliance S2=with respect to time = delay)73. C (substituted performance because generic)74. C (Fault of Creditor thats why debtor cannot choose)75. A (B, C, D gestor at fault)76. A (S1=penal clause S2=facultative)77. A (If there is demand C)78. D79. A80. C81. D82. C83. D (Alternative obligation = complex obligation 2: 1Simple Obligation when? choice is common to other parties and all are lost expect 1 without fault; 21 or some or all = lost before simple obligation *Debtors choice (if silent) as long as long as/ is left = choose remedies ones; All are lost without debtors fault = extinguished; if with debtors fault = cash last one lost plus damages84. C85. C86. D87. D (if can B)88. A89. A90. D91. C92. D93. D94. C95. D96. C97. B98. C99. C100. D101. C102. C (mutuum =simple loan debtor and creditor relationship)103. B104. A105. C (it must be the debtor who will withdraw in the court)106. B (S1= S2=cannot and conventional)107. D (S1= illegal obligation S2=object inexistent VOID)108. A109. B (deligacion in good faith effect like expromission; keyword: NEVER)110. A111. D112. D113. D114. C115. B (S1=just before novation; S2=substitution no effect)116. B(S1=integrity of payment rule; S2= with acceptance)117. B(S1= obligation is created; S2=not presumed)118. D (subrogation theres 3rd parties)119. A(impossibility of performance; if with fault D)120. C