GENERAL DIVISIONS AND KINDS OF LAW

LESSON 1
 State Law- promulgated and enforced by
What is law? the state.
a binding custom or practice of a community: a rule of  These are the formal laws
conduct or action prescribed or formally recognized as  Also called Positive law, municipal law,
binding or enforced by controlling authority.
civil or Imperative Law.
MERIAM WEBSTER
Non-legally speaking laws NOT promulgated and
a rule, usually made by a government, that is used to
enforced by the state. (pag na violate ang law walang
order the way in which a society behaves.
punishment)
CAMBRIDGE DICTIONARY
DIVINE LAW
BROAD SENSE
any rule of action or norm of conduct applicable to all  Of religion and faith; sin and salvation
kinds of action and to all objects of creation  Formally promulgated by God
STRICT SENSE  Ten Commandments Quoran
rule of conduct, just and obligatory, laid down by NATURAL LAW
legitimate authority for common observance and benefit
 Sense of justice, fairness and righteousness
 Internal dictates of reason – inward instinct
ELEMENTS/ CHARACTERISTICS  Basic understanding of right and wrong; good and
evil
RULE OF CONDUCT  Comes from you in the sense of justice and
-guide in interrelating with others and in the community. righteousness.
-It serves as a guide on how you interact with other MORAL LAW
people w/ your community.
 Totality of norms of good and right – human
JUST conscience
-End goal is the way and dominance of justice”.
 Changes with time, conditions and convictions of
-About what is right for all. people
 Influence STATE LAW ex: Abortion is Immoral,
OBLIGATORY
but in constitution it is acceptable.
-Enforced in order to serve its purpose
PHYSICAL LAW
-Laws have specific purposes
PRESCRIBED BY LEGITIMATE AUTHORITY  Operation or course of nature
-feature of sovereignty or govt. state  Law of gravity

3 Branches of Government- all co-equal of branches

CLASSIFICATION OF LAW
 Legislative Department- House of
representatives and senate. Sila yung gumagawa AS TO PURPOSE
ng batas. SUBSTANTIVE
 Executive Department- the department that -defines rights and duties
implements the law. The Gov. who will signed the -law on obligations and contracts
law.
 Judicial Department/ Judiciary- when PROCEDURAL
-also called adjective or remedial law
something violates, questions about the law, the
concern goes to the judiciary. The supreme court -prescribes the manner or procedure by
which rights may be enforced or violations redressed
interprets the law.
-Rules of Court
ORDAINED FOR THE COMMON BENEFIT
Substantive VS. Procedural Law
-Follows the time-honored principle “salus populi est
supreme lex” – the welfare of the people is the supreme  In Substantive it tells you what is right and
law entitlement. Pag d nasunod yung rights and
-the importance of law is to have the benefit for the entitlement the use of Procedural paano mo
ipaglalaban.
people.
Equal protection
- application of law to all AS TO SUBJECT MATTER
-the law allows for certain exemption. Just like tax PUBLIC
exemption. -Regulates the rights and duties arising from the
relationship of the state to the people
CRIMINAL LAW
CONSTITUTIONAL LAW
 ADMINISTRATIVE LAW Article 10
“In case of doubt in the interpretation or applications of
PRIVATE
law, it is presumed that the lawmaking body intended
-regulates relations of individuals with one another for
right and justice to prevail”
purely private ends
STATUTORY CONSTRUCTION- legal term for
CIVIL LAW (Law of Obligations and Contracts), it
interpreting the law.
governs private law.
-art or process of discovering the meaning and intention
COMMERCIAL/ MERCANTILE LAW
of the authors of law when there is ambiguity
-to give effect to the intention of the law- may gusting
mangyari sa law.
SOURCES OF LAW
CONSTITUTION
-Written instrument by which the fundamental powers JUDICIAL SYSTEM IN THE PHILIPPINES-
of the government are established, limited and lodge w/ the supreme court
defined and distributed among several departments for
ARTICLE VII, SECTION 1 (1987 Philippine
their safe and useful exercise for the benefit of the
Constitution)
people
judicial power rests with the Supreme Court and the
-Fundamental or supreme or highest law of the land
lower courts, as established by law
LEGISLATION
-Enacted or statue law JUDICIAL SYSTEM
-deliberation or discussion between House of the REGULAR COURTS
senate. -general administration of Justice

ADMINISTRATIVE OR EXECUTIVE ORDERS, RULES a. MTCs, MTCCs, MCTCs

AND REGULATIONS b. RTCs
- A.O or E.O (Executive Order) called exercise of quasi- c. CA
legislative power administrative officials or bodies. d. SC

Judicial Decisions/ Jurisprudence (Precedent) SPECIAL COURTS

-limited jurisdiction over specific case, i.e. graft and
 These are the decisions of the courts. Especially corruption
in the supreme court whether it is right or wrong it
becomes part of the law of the land. a. Sandiganbayan- for government officials, kasuhan
 Doctrine of State Decisions- decisions of the ng graft and corruption.
supreme court is binding on all subordinate b. Court oAppeals- for BIR tax
courts. c. Shari’a Courts- For Muslim brothers and sisters.
 Means, kung ang isang case ay sinampang Involves violation of Muslim laws
regional trial court ay same sa nangyari on the QUASI-COURTS OR QUASI-JUDICIAL BODIES
pervious case the decision of supreme court, it will
be adopted. Note: they are not vested to the judicial powers, but
doing their mandate they have Quasi-judicial powers.
CUSTOM -administrative agencies exercising adjudicatory powers
habits and practices for a long period that have been to attain its goals
acknowledged and approved by the society as a rule of
conduct: they are potentially sources of law a. Civil Service Commission
-proved as a fact- shows that it becomes part of habit b. Commission of Election
or practice. c. Commission on Audit
-not contrary to law- hindi kumu contra in any law.
-number of repeated acts uniformly performed-
practiced for a long period of time.
-judicial intention to make a rule of conduct

INTERPRETATION OF LAW
-Lodged with the judiciary
-When the law is clear, there is no room for
interpretation – “dura lex, sed lex”- means the law
may be harsh but it is the law.
CIVIL CODE PROVISIONS
Article 9
“No judge or court shall decline to render judgement by
reason of the silence, obscurity or insufficiency of the
laws”
 LAW ON OBLIGATIONS AND CONTRACTS PRESTATION (Subject Matter)
FOUND IN THE CIVIL CODE OF THE PHILIPPINES  Particular conduct required to be observed by the
obligor and can be demanded by the oblige
Body of rules which deals with:  To give, to do or not to do
1. Nature and sources of obligations
2. Rights and duties arising from agreements and OBLIGEE – creditor
particular contracts
 Active subject- he/she has the right to demand the
OBLICON Can be found in the civil code of the performance.
Philippines  Right to demand the performance
 Obligations articles 1156- 1304
JURIDICAL TIE/ VINCULUM JURIS
 Contract articles 1305- 1422
Under Article 3 Of the civil code  Vinculum Juris – legal relationship or tie
 Efficient cause or the reason for the obligation
“Ignorance of the law excuses no one from  Binds the parties
compliance therewith”  It ties the debtor and creditor
Book 1 : PERSON AND FAMILY RELATIONS
EXAMPLE SITUATION
Book 2 : PROPERTY, OWNERSHIP AND ITS
MODIFICATIONS
Juan is obliged to pay taxes.
Book 3 : DIFFERENT MODES OF ACQUIRING
OWNERSHIP (SUCCESSION) Obligor (passive subject) – JUAN
Book 4 : OBLIGATIONS AND CONTRACTS Obligee (active subject) – Government (BIR)
Book 5 : SPECIAL CONTRACTS Prestation (object) – income tax
Juridical Tie – TAX CODE Law
LESSON 2
OBLIGATION CONTRACT OF SALE
- from the Latin word “obligatio” which means Mr. Reyes sold a bottle of wine to Mr. Cruz for
tying or binding (Etymological Meaning) P1,000,000
- a juridical necessity that entails something to
Obligation Obligation 2
give, to do or not to do (Legal Meaning)
1
CRITICIZED AS INCOMPLETE BUT ACTUALLY OBLIGOR Mr. Reyes Mr. Cruz
REPRESENTS TWO SIDES: OBLIGEE Mr. Cruz Mr. Reyes
PRESTATION Deliver Pay
- debt and credit
bottle of ₱1,000,000
- duty of debtor and rights of the creditor wine
JURIDICAL NECESSITY JUDICAL TIE CONTRACT
- rights and duties are legally demandable and
the courts may be called upon to resolve the IMPORTANT CONCEPTS
matter Right – power which a person has under the law to
Examples: CIVIL OBLIGATIONS - things that to give, demand from another any prestration
to do or not to do Cause of Action – act or omission which violates a
- pay your tuition fee at university (TO GIVE) right
- parent to take care of their children (TO DO) Act- may ginawa
- not to steal (NOT TO DO)
Omission- May hindi ginawa or violation
NOT a juridical necessity (therefore NOT a
Injury – act or omission which causes harm
civil obligations)
Damage – to harm done to a party
- Obligation to attend masses (MORAL
OBLIGATION) does not entail to be legally Damages – sum of money recoverable by reason of
demandable damage done commonly known as “Danyos Perwisyo”
- To pay your debt of gratitude (NATURAL
OBLIGATION)
SOURCES
ELEMENTS
THOSE EMANATING FROM LAW
OBLIGOR – debtor Obligations are not presumed; the must be expressly
 Passive subject- Person who is bound to perfom. stated

 Bound to perform  Payment of taxes

 Spouses to observe mutual help and support

- THOSE EMANATING FROM PRIVATE ACTS

 LICIT ACTS- legal acts Generic or indeterminate thing – refers only to a
class or genus to which it pertains and cannot be
 CONTRACTS pointed out with particularly
 Meeting of the minds between two persons, whereby  A CAR
one binds himself, with respect to the other, to give  A DOG
something or to render some service
 Have the force of law between the parties Anything can be given as long as it pertains to the
 Must not be contrary to law, morals, good customs, same kind
public order or public policy
 COMPLIANCE WITH OBLIGATIONS
 QUASI-CONTRACTS ( Nagkaroon ng parang
contract, because of the enrichment) DUTIES IN OBLIGATIONS TO GIVE A
DETERMINATE THING
 Based on the principle that no one will be unjustly
enriched at the expense of another- may nakinabang,  Preserve the thing – incidental duty to take care of
pero d pwedeng walang kapalit. the thing due
 Arises from a lawful act o with the diligence of a good father of a family
 A unilateral voluntary act o as provided by the law or as stipulated, i.e.
extraordinary
 NEGOTIORUMGESTIO – spontaneous voluntary act  Deliver the fruits of the thing (Article 1164)
for the benefit of another who has no knowledge of it.  Deliver the accessions and accessories
Example: saving a burning house and sustaining injuries DUTIES IN OBLIGATIONS TO DELIVER A
GENERIC THING
 SOLUTIOINDEBITI – payment of what is not owed
 Deliver a thing in accordance with the quality
 Something is received by mistake intended taking into consideration the purpose of the
 No right to receive the same obligation and other circumstances
 Mistake in the delivery  Liable for damages in case of fraud, negligence or
delay
Example: receiving excessive change after buying
something DELIVERY OF FRUITS
Article 1164: THE CREDITOR HAS THE RIGHT TO
ILLICIT ACTS- illegal Acts THE FRUITS OF THE THING FROM THE TIME THE
OBLIGATION TO DELIVER ARISES. HOWEVER, HE
 DELICTS/CRIMES SHALL ACQUIRE NO REAL RIGHT OVER
ITUNTILTHE SAME HAS BEEN DELIVERED TO HIM.
 Governed by penal laws WHAT ARE THESE FRUITS?

 QUASI-DELICTS
DELIVERY OF ACCESSIONS AND ACCESSORIES
 Also called torts
Article 1166: THE OBLLIGATION TO GIVE A
 Damage or injury caused to a person because of an
DETERMINATE THING INCLUDES THAT OF
act or omission of another coupled with negligence
DELIVERING ALL ITS ACCESSIONS AND
ACCESSORIES, EVEN THOUGH THEY MAY NOT
HAVE BEEN MENTIONED.
NATURE AND EFFECT
ACCESSIONS
Article 1163: EVERY PERSON OBLIGED TO GIVE
SOMETHING IS ALSOOBLIGED TO TAKE CARE OF  Fruits of a thing or additions to or improvements upon a
IT WITH PROPER DILIGENCE OF A GOOD FATHER thing
OF FAMILY, UNLESS THE LAW OR THE
STIPULATION OF THE PARTIES REQUIRES Example: house or trees on land
ANOTHER STANDARD OF CARE.
ACCESSORIES
 PRESTATION/OBJECT
 things joined or included with the principal thing for
Specific or determine thing – particularly embellishment, better use of completion – accessory
designated or physically segregated from all others of follows the principal.
the same class.
Example: key of a house, frame of a painting
 THE 2020 GEELY COOLRAY CAR WITH PLATE
NUMBER JDJ 5979
 THE WATCH THAT YOU WORE YESTERDAY BREACH OF OBLIGATIONS

No substitute allowed unless allowed by the creditor WHAT IS DELAY?

 Ordinary Delay – failure to perform on time

 Legal Delay or default or mora – failure to perform on  Upon the fulfillment of a suspensive condition or arrival
time constituting a breach of obligation of the term
KINDS OF DELAY
1. Mora solvendi – default on the part of the debtor BREACH OF OBLIGATION

 Conditions: Failure or refusal to perform obligations

a. Failure of the debtor without legal justification – VOLUNTARY
b.Demand from the creditor to comply
c. Failure to comply with the demand 1. Fraud (deceit or dolo)
*assumption that obligation is due and demandable  Incidental fraud not causal fraud

Effects: debtor is:  Deliberate or intentional evasion

o FRAUD NEGLIGENCE Guilty  Malice, dishonesty
Deliberate intent to None of  Bad faith
cause damage or
injury Waiver may be 2. Negligence (fault or culpa)
allowed
Waiver of liability for  Voluntary act or omission
future fraud is void Presumed from the  No bad faith or malice
violation 3. Delay (mora)
Must be proven 4. Contravention of the terms
May be mitigated  Not due to fortuitous event
Cannot be mitigated

breach or violations of his obligation Article 1171: Responsibility arising from fraud is
o Liable for interest or damages demandable in all obligations. Any waiver of an action
o Liable ever for fortuitous events (deliver a determinate for future fraud is void.
thing)  Fraud is deemed serious and evil should,
this be discouraged
2. Mora accipendi – default of the part the creditor to
 Future fraud – cannot be waived
accept the performance
 Past fraud – may be waived expressly – act
of generosity
Effects: creditor is:

o Guilty of breach of obligation

o Liable for damages suffered Article 1172: Responsibility arising from
o Bears the risk of loss of the thing due negligence in the performance of every kind of
*debtor shall not be liable for interest obligation is also demandable, but such
*debtor may relieve himself of the obligation by depositing liability may be regulated by the courts,
the amount or consigning the thing to the court. according to circumstances.
 Entitlement to damages
 Courts have the discretion in fixing the
3. Compensation morae – delay of obligations in
measure of damages – case- to-case basis
reciprocal obligations
 Action for future negligence – may be
renounced
 Delay of one cancels the delay of the other
 Negligence +bad faith = fraud
 Delay of one after the other – shall be equitably
tempered KINDS OF NEGLIGENCE
 If it cannot be determined who was in delay, obligation
will be extinguished and each one bears his own 1. culpa contractual – contractual negligence
losses. 2. culpa aquiliana – civil negligence
3. culpa criminal – criminal negligence

What if the creditor is also negligent?

Article 1170: Those in the performance of their
obligations are guilty of fraud, negligence, or delay and
 Negligence is the immediate and proximate
those who in any manner contravene the tenor
cause – no damages
thereof, are liable for damages.
 Negligence is merely – mitigated damages

 Natural – spontaneous products of the soil, and the Article 1173: The fault or negligence of the
young and other products of animals obligor consist in the omission of that diligence
 Industrial – produced by lands of any kind through which is required by the nature of the
cultivation or labor obligation and corresponds with the
 Civil – derive by virtue of a juridical relation circumstances of the person, time and of the
place. When negligence shows bad faith, the
WHEN TO DELIVER THE FRUITS?
provisions of Article 1171 and 2201,
 Upon delivery of the thing due paragraph 2, shall apply.
 If the law or contract does not state the  debtor is free from participation in, or the
diligence which is to be observed in the aggravation of, the injury to the creditor
performance, that which is expected of a good
father of a family shall be required.  GENERAL RULE – NO LIABILITY TO PAY
DAMAGES
Exceptions:
FAULT NEGLIGENCE
 When expressly specified by law
Failure to observe for the protection of the oWhen debtor is guilty of fraud, negligence, or
interests of another person, that degree of delay or contravention of the tenor of the
care, precaution and vigilance which the obligations
circumstances justly demand whereby such oWhen the debtor promised to deliver the same
other person suffers injury. (specific) thing to 2 or more persons
 Factors to consider: oObligation to deliver a specific thing arises from a
crime
1. Nature of the obligation oThing to be delivered is generic
2. Circumstances of the person
3. Circumstances of time  When declared by stipulation – freedom of
4. Circumstances of the place contract
 When the nature of the obligations required the
assumption of risks
DAMAGES
oMoney compensation awarded to the injured party
Article 1175. Usurious transactions shall be
or who suffered loss governed by special laws.
oIn contracts and quasi contracts where the debtor
acted in good faith- damages shall be those that
are in natural and probable consequences of the
Article 1176. The receipt of the principal by the
breach.
creditor, without reservation with respect to the
oIn cases of fraud, bad faith, malice or wanton
interests, shall give rise to the presumption that
attitude – all damages that can be reasonable
said interests has been paid.
attributed to the breach.
The receipt of a later installment o a debt without
 Kinds of diligence required reservation as to prior installments, shall likewise
raise the presumption that such installments have
oas agreed, orally or verbally been paid.
oas required by law
odiligence of a good father of a family
PRESUMPTIONS – inference of a fact not actually
known arising from its usual connection with
Article 1174: Except in cases expressly specified
another which is known or proved.
by law, or when it is otherwise declared by
stipulation, or when the nature of the obligation KINDS
requires the assumption of risk, no person shall be
responsible for those events which could not be  Conclusive – cannot be contradicted
foreseen, or which through foreseen, were  Disputable/rebuttable – can be contradicted or
inevitable. rebutted by presenting evidence to its contrary
Article 1177. The creditors, after having pursued
the property in possession of the debtor to satisfy
their claims, may exercise all the rights and bring all
FORTUITOUS EVENT the actions of the latter for the same purpose, save
independent of the will of the debtor; impossible to those which are inherent in his person; they may
foresee or impossible to avoid impugn the acts which the debtor may have done to
defraud them.
 acts of man
 acts of God Remedies of the creditor to satisfy his claim:
KINDS:  Exact fulfillment with right to the damages
 Pursue the leviable property of the debtor
 ordinary – common and can be reasonably  Exercise all the rights and bring all actions
foreseen of the debtor except those inherent to his person
 extraordinary – uncommon and could not be  Ask the court to rescind or impugn acts or
reasonably foreseen contacts which the debtor may have done to
REQUISITES: defraud him

 independent of human will, or at least the debtor

 could not be foreseen, or if foreseen, is inevitable Article 1178. Subject to the laws, all rights
acquired in virtue of an obligation are transmissible,
 renders it impossible for the debtor to fulfil his
if there has been no stipulation to the contrary.
obligations in a normal manner
Transmissibility of rights:  Resolutory Condition (Condition
subsequent)
GENERAL RULE: TRANSMISSIBLE OR
ASSIGNABLE  Fulfillment will extinguish an obligation
 (extinguish meaning mawawala na or
Exceptions:  Existing na yung obligation)
1. Prohibited by law  (pagnangyari resolutory condition
oContract of partnership matatapos na yung obligation)
oContract of agency  Ex: I promise to pay for your tuition fee
oContract of commodatum until u graduate.
2. Prohibited by stipulation of the parties  (Subsequent- it comes after)
 Article 1180
 When the debtor binds himself to pay
Lesson 3 when his means permit him to do so,
the obligation shall be deemed one with
Classification of Obligations a period, subject to the provision of
Article 1197
Pure and Conditional Obligations  An obligation with a period
 Article 1179 (Pure Obligation)  Duration of the period depends upon
Every obligation whose performance does not the debtor
depend upon a future or uncertain event, or  Period- future AND certain; will either
upon a past event unknown to the parties, is give rise or extinguish an obligation
demandable at once.
 (When the performance is not subject to any
condition)  Article 1197
 (Kapag pure obligation is immediately  If the obligation does not fix a period,
demandable) but from nature and the circumstances
 Ex: I promise to pay the amount of P10,000 it can be inferred that a period was
to Jaslene (walang specific date kung kelan intended, the courts may fix the duration
dapat bayaran) thereof.
 The courts may fix the duration.
 Every Obligation which contain a resolutory  (Walang specific date, pero may
condition shall also be demandable, without naindicate na period)
prejudice to the effects of the happening of
 (Once na pumasok na sa court na fix na
the event.
yung period, it will no longer fixed them)
 Introduce what are called as pure and
 Article 1181
conditional obligation
 In conditional obligations, the
Conditional Obligation acquisition of rights, as well as the
extinguishment or loss of those already
 Consequences are subject to the
acquired shall depend upon the
fulfillment of a condition.
happening of the event which
 Condition- Future and uncertain event the
constitutes the condition
happening of which will give effect or
 Reiterates obligation subject to a
extinguish an obligation.
suspensive condition
 (Pag nangyari magkakaroon ng possible
 Creditor merely has hope or
effect, magkakaroon ng obligation or
expectations (na mangyari yung
mawawala obligation)
suspensive condition para gawin na ni
 (May refer to the past must be unknown,
debtor yung obligation)
pero walang nakakaalam na nangyari na
 Article 1182
sya)
 When the fulfillment of the condition
2 Kinds of Condition: depends upon the sole will of debtor,
 Suspensive condition also called the conditional obligation shall be void,
if it depends upon a chance or upon the
(condition
will of a third person, the obligation shall
precedent/antecedent)
take effect in conformity with the
(Pag sinabing Pre or Ante it comes
provisions of code.
before
 (The entire obligation is void means it
 Fullfillment will give rise to the obligation
nevers existed)
 ( Suspensive Condition means, walang
 Classifications of Conditions:
pang obligation, naka suspend yung
obligation, papasok lang yung condition  As to effect
once nasunod na or nangyari na yung Suspensive – occurrence will give rise
condition) to the obligation
 Resolutory – occurrence will extinguish Ex: Sam borrowed P5,000 from Teagan and I promised
the obligation. to pay after 1 month. After the 1 month, Sam requested
 As to from Taegan that he will just pay when he finds a job.
Express - clearly stated
Implied – inferred, (based sa nakasulat What if the suspensive condition depends upon the
may obligation) will of the creditor?
 As to possibility  Valid
Possible – capable of being fulfilled,  Rationale: fulfillment of the obligation is
legally or physically for his benefit
Impossible – not capable of being
fulfilled, legally or physically
 As to cause of origin

Potestative – depends upon the will of Resolutory Condition

one of the contrasting parties
(Yung condition nakadepende either What if the resolutory condition depends upon the
kay debtor or creditor) will of debtor?
Casual- depends upon chance or will of
a 3rd person  Valid
Ex:(I will give u 1M pesos if I will win  Rationale: debtor is interested in the
the lotto, its upon chance) fulfillment of the obligation
Mixed- depends partly upon chance  Casual Condition -Valid
and partly upon the will of a 3rd person.  Mixed Condition –Valid

 As to mode Article 1183

Positive – condition is the performance Impossible conditions, those contrary to good
of an act (may pinapagawa sayo) customs of public policy, and those prohibited by law
Negative – condition is the omission of shall annul the obligation which depends upon them. If
an act the obligation is divisible, that part thereof which is not
affected by the impossible or unlawful condition shall be
 As to numbers (merong hindi valid
pinagagawa)
Conjunctive – several conditions and The condition not to do an impossible thing shall be
all must be fulfilled (kailangan lahat considered as not having been agreed upon.
matupad)
Disjunctive – several conditions and Article also refers to suspensive condition involving
only one or some or several must be impossible condition
fulfilled (hindi lahat kailangan matupad) Impossible condition may be:

 As to divisibility Physically impossible – due to the nature of things, it

Divisible- the obligation is capable of cannot exist or be done
partial performance
Indivisible- incapable of partial Ex: I will give you a brand-new car if you can count all
performance. the stars.

Suspensive Condition Legally Impossible- contrary to law, morals, good

customs, public order or public policy.
What if the suspensive condition upon the will of
the debtor? Examples:

 Void A. Law – steal a diamond ring

B. Moral – marry your brother
 No burden on the part of the debtor
C. Good customs – abandon your
 No juridical tied is created
parents
Ex: D. Public order – campaign for rebellion
I will pay when I want to E. Public Policy – perjured witness
I will give you the house when I inherit it from my
What is the effect of impossible conditions?
parents
 Obligation is void
In cases where the condition was imposed AFTER the
obligation was born, only condition is void  Rationale: obligation cannot be
fulfilled; no intention to comply
  An impossible condition NOT TO DO If no time has been fixed, the condition shall be
is VALID- obligation is considered deemed fulfilled at such time as may have
pure and valid probably been contemplated, bearing in mind the
Example: I will pay you P 10,000 if you nature of the obligation.
will win swim in the Antartic Ocean
Negative condition – an event will not
 If the obligation is divisible – only happen at a determinate time:
the part affected/covered by the
impossible condition is void. Obligation will arise when:
Example: I will give you a new car. If the time indicated has elapsed and the event did
you sell my house and lot, and I will not happen; or
give you P50,000 if you can show
me God. it has become evident that event cannot occur
even if the time determined has not yet elapsed
Lesson 4 Examples: Yolan binds himself to give Mocha a
car if she will not marry Berlin by the end of
Positive and Negative Condition December 2020

Article 1184. The condition that some event - Yolan is NOT liable if Mocha marries Berlin on
happen at a determinate time shall extinguish 15 December 2020 or at any earlier date
the obligation as soon as the time expires or if it - Yolan is liable if Mocha married Berlin on 01
has become indubitable that the event will not January 2021 or at any later date
take place. - Yolan is NOT liable if Mocha dies before the
end of December 2020
Positive Condition – happening of an
event at a determinate time  obligation is Article 1186.
extinguished if: The condition shall be deemed fulfilled when the
 the time expires and it does obligor voluntarily prevents its fulfillment
not happen “Constructive fulfillment of suspensive condition
 it becomes indubitable that • condition is suspensive
the event will not happen • obligor actually prevents the fulfillment of the
even if the time has not yet condition – malice, fraud
expired • voluntary act
Example: Rover obliges himself to give Cruiser Example: Star promised to sell Bruno her vintage
you a house and lot if Cruiser will graduate from Volkswagen car if he graduates from college
college with a degree in Business Administration before 31 December 2020. After his thesis
before the age of 24 years old. defense in November 2020, Bruno was informed
–Rover will be liable to give if Cruiser graduates by the school registrar that he will be joining the
with the degree at the age of 23 years old graduation ceremonies on 15 December 2020.
- Rover will NOT be liable if Cruiser was not able When Star learned about this, she sold the car to
to graduate or was able to graduate but after Buttercup on 09 December 2020.
reaching the age of 24; obligation was  Obligor need not act with fraud or malice
extinguished when Cruiser reached 24 years old so long as his purpose is to prevent the
- Obligations is extinguished if for any reason fulfillment
Cruiser, before reaching the age of 24, suffers  Can also apply to an obligation subject to
from death or illness or incapacity that stops his a resolutory condition if the debtor is bound
schooling to return something he has received upon
Article 1185. the fulfillment of the condition

The condition that some event will not happen at Article 1187.
a determinate time shall render the obligation The effects of a conditional obligation to give,
effective from the moment the time indicated as once the condition has been fulfilled, shall
elapsed, or if it has become evident that the retroact to the day of the constitution of the
event cannot occur. obligation. Nevertheless, when the obligation
imposes reciprocal prestations upon the parties, Example: Mika promised to sell the land to Erika
the fruits and interests during the pendency of for a sum of P100,000.00 after Erika graduates
the condition shall be deemed to have been from college.
mutually compensated. If the obligation is
unilateral, the debtor shall appropriate the fruits Unilateral obligations – generally no
and interest received, unless from the nature and retroactivity since it is gratuitous in nature unless
circumstance of the obligation it should be it can be inferred otherwise from the nature and
inferred that the intention of the person other circumstances
constituting the same was different.
In obligation to do and not to do, the courts shall Article 1188.
determine, in each case, the retroactive effect of
the condition that has been complied with. The creditor may, before the fulfillment of the
condition, bring the appropriate actions for the
Retroactive effects of the fulfillment of a preservation of his right.
suspensive condition
The debtor may recover what during the same
Obligations to give time he has paid by mistake in case of a
-Condition is only an accidental element of a suspensive condition
contract
-Obligations can exist without condition Rights pending fulfillment of suspensive
condition
Example: Sometime in September 2020, Bella
promised to sell her land to Neneth should A. Creditor - take or bring action for the
Neneth lose a case involving the ownership of preservation of his right, i.e. alienation or
another parcel of land. On 18 October 2020, concealment of the thing due
Bella sold the land to Jeric and on 15 November B. Debtor – recover what was paid by
2020, Neneth lost in the case. mistake

Who has better right to the land Bella promised Article 1189.
to Neneth but sold to Jeric?
When the conditions have been imposed with
 Before 15 November 2020, Neneth had no the intention of suspending efficacy of an
right to demand the sale obligation to give, the following rules shall be
 After 15 November 2020, Neneth became observed in case of improvement, loss or
entitled to the sale of the land beginning deterioration of the thing during the pendency of
September 2020 the condition:
What if it was Neneth who sold the land to Banoy 1. If the thing is lost without the fault of the
on 20 October? debtor, the obligation shall be extinguished;
 Banoy will have a better right than Jeric since
the sale made by Neneth will be considered as 2. If the this is lost through the fault of the
valid. debtor, he shall be obliged to pay damages; it is
understood that the thing is lost when it perishes,
Retroactive effects of the fulfillment of a or goes out of commerce, or disappears in such
suspensive condition a way that its existence is unknown or it cannot
Obligations to do or not to do be recovered;

-No fixed rule 3. When the thing deteriorates without the fault
-Courts are empowered to use discretion of the debtor, the impairment is to be borne by
considering the intent of the parties to determine the creditor;
retroactivity 4. If it deteriorates through the fault of the debtor,
Retroactive effects as to fruits and interests the creditor may choose between the rescission
in obligation to give of the obligation and its fulfillment, with indemnity
for damages in either case;
Reciprocal obligations – no retroactive effect
as the fruits and interests are deemed mutually 5. If the thing is improved by its nature, or by
compensated time, the improvement shall inure to the benefit
of the creditor;
6. If it is improved at the expense of he debtor, In case of loss, deterioration or improvement of
he shall have no other right than that granted to the thing, the provisions which, with respect to
the usufruactuary. the debtor, are laid down in the preceding article
shall be applied to the party who is bound to
return.
As for obligations to do and not to do, the
provisions of the second paragraph of Article
1187 shall be observed as regards the effect of
the extinguishment of the obligation.
Requisites for Article 1189 to apply: Fulfillment of resolutory condition
1. Real obligation Obligation to give
2. Specific or determinate thing  Obligation is extinguished
3. Suspensive condition  Return of what have been received
 If the thing is legally in the possession of a 3rd
4. Condition is fulfilled person – restitution (compensation)
Examples:
5. Loss, deterioration or improvement of the
• Gen allowed Erika to live in her condominium
thing pending the fulfillment of the condition.
unit until she returns from her vacation.
Kinds of losses: • Jeric binds himself to give daily allowance to
Mary Ann as long as she is studying.
A. Physical –thing perishes
Article 1191.
B. Legal – thing goes out of commerce or The power to rescind obligations is implied in
becomes illegal reciprocal ones, in case one of the obligors
C. Civil – thing disappears or cannot be should not comply with what is incumbent upon
discovered him.

Rules in case of loss, deterioration or The injured party may choose between the
improvement of the thing during the fulfillment and the rescission of the obligation,
pendency of suspensive condition: with the payment of damages in either case. He
may also seek rescission, even after he has
1. Without debtor’s fault chosen fulfillment, if the latter should become
A. Loss – obligation is extinguished impossible.
B. Deterioration – creditor suffers
Through debtor’s fault The court shall decree the rescission claimed,
2. Through Debtor’s Fault unless there be just cause authorizing the fixing
A. Loss – debtor will be liable for of a period.
damages This is understood to be without prejudice to the
B. Deterioration – creditor may opt to rights of third persons who have acquired the
rescind or fulfillment of the obligation, thing, in accordance with Articles 1385 and 1388
with damages in either case and the Mortgage Law.
3. Improvement
A. By nature or by law – creditor will Kinds of obligation according to the person
benefit from it obliged:
B. At debtor’s expense – debtor will
• Unilateral – only one party is obliged
have the right of usufructuary (right to
enjoy the use and fruits of a thing • Bilateral both parties are mutually bound to
belonging to another). each other
Article 1190. 1. Reciprocal – obligations arise from the
same cause; fulfillment by one is a suspensive
When the conditions have for their purpose the
condition to the other Example: contract of sale
extinguishment of an obligation, the parties,
upon the fulfillment of said condition, shall return 2. Non-reciprocal – no simultaneous and
to each other what they have received. correlative performance on both parties;
obligation of one is not dependent on the Obligations for whose fulfillment a day certain
obligation of the other has been fixed, shall be demandable only when
Example: Maricar borrowed the notes of Clarissa that day comes.
and promised to return the same before the Obligations with resolutory period take effect at
midterm exam, Clarissa, on the other hand, once, but terminate upon arrival of the day
borrowed a sum of money from Maricar. certain. A day certain is understood to be that
which must necessarily come, although it mat
not be known when.

Rules in reciprocal obligations:

A. Choice of remedies – aggrieved party may If the uncertainty consists in whether the day will
choose between: come or not, the obligation is conditional, and it
• Action for specific performance with shall be regulated by the rules of the preceding
damages section.
• Action for rescission with damages
• obligation with a period - one whose effects
B. Remedy of rescission in case of
or consequences are subjected in one way or
noncompliance – used in cases of
another to the expiration or arrival said period or
breachthat violates
term.
• Has to be resorted to in the courts
• Court may decide to grant performance of • period - future and certain event upon the
the obligation arrival of which the obligation is subject to arise
• If the thing is legally in the hand of a 3 rd or terminate - a day certain which must
person in good faith – rescission is not necessarily come
available Distinction between a period and a condition
• Violation must be substantial
Period Condition
 Article will not apply if there is express As to fulfillment Certain event
stipulation by the parties for automatic which must Uncertain event
happen sooner or
rescission in case of breaches; there must later
be demand first As to time Future but may
 Where one party is willing to comply, he also refer to the
Future past unknown to
can declare rescission the parties
As to influence on Merely fixes time
the obligation for the Cause an
effectiveness of obligation to
Article 1192. the obligation arise or cease
In case both parties have committed a breach of As to effect when left Empower the Invalidates the
obligation, the liability of the 1st infractor shall be to debtor’ will court to fix the obligation
time
equitable tempered by the courts. If it cannot be As to retroactivity of No retroactive Has retroactive
determined which of the parties first violated the effects effect except event
when agreed
contract, the same shall be deemed upon
extinguished, and each shall bear his own
damage.
Kinds of period or term:
Rules where both party are guilty of breach:
1. According to effect
1. 1st infractor is known - Equitable
• suspensive - obligation begins upon arrival of
reduction
the period or term
2. 1st infractor cannot be determined -
Obligations shall be extinguished and each • resolutory - obligation is valid until the arrival of
shall bear his own damages the period or term
2. According to source
OBLIGATIONS WITH A PERIOD
• legal - provided by law
Article 1193.
• conventional or voluntary - agreed upon
• judicial - fixed by the court
3. According to definiteness COMPUTATION OF TERM OR PERIOD
• definite - fixed or known when it will come - Based on the Administrative Code:
• indefinite - not fixed, not known when it will i. Year - 12 months
come
ii. Month - 30 days; calendar month - according
to actual days in a month
iii. Day - 24 hours
iv. Night - sunset to sunrise
Article 1195.
Anything paid or delivered before the arrival of Article 1197.
the period, the obligor being unaware of the
period or believing that the obligation has Obligations without a fixed period - discussed in
become due and demandable, may be connection with Article 1180.
recovered, with the fruits, and interests. Article 1198.
- Article applies only to obligations to give - The debtor shall lose every right to make use of
Discusses payment before arrival of the period - the period:
Debtor may recover with fruits and interests -
based on principle of unjust enrichment - Debtor (1) When after the obligation has been
is presumed to know the period - burden to contracted, he becomes insolvent, unless he
prove that he was unaware - If debtor was fully gives guaranty or security for his debts;
aware and still decided to comply with his
(2) When he does not furnish to the creditor the
obligation, he is deemed to have waived the
guaranties or securities which he has promised;
period
(3) When by his own acts he has impaired said
Example: Emer borrowed P10,000 from Ronan
guaranties or securities after their establishment,
and promised to pay by 31 December 2020.
and when through a fortuitous event they
- If Emer paid on December 2019 thinking in disappear, unless he immediately gives new
good faith that it was already due, today, he can ones equally satisfactory;
recover the amount he paid with interest (12%).
(4) When the debtor violates any undertaking, in
- By December 2020, he can only recover the consideration of which the creditor agreed to the
interest period;
(5) When the debtor attempts to abscond.

Article 1196. GENERAL RULE: Obligation is not demandable

before the lapse of the period or term
Whenever in an obligation a period is
designated, it is presumed to have been
established for the benefit of both the creditor
ALTERNATIVE OBLIGATIONS
and the debtor, unless from the tenor of the
same or other circumstances, it should appear Article 1199.
that the period has been established in favor of
one or of the other. A person alternatively bound by different
prestations shall completely perform one of
GENERAL RULE: period stipulated is for the them.
benefit of BOTH EXCEPTIONS: agreement or
stipulation of the parties The creditor cannot be compelled to receive part
of one and part of the other undertaking.
- If period was fixed for the benefit of the debtor,
he cannot be compelled to pay beforehand Kinds of period or term:

- If period was fixed for the benefit of the creditor 1. Simple - only 1 prestation
- he may demand fulfillment before the arrival of 2. Compound - there are 2 or more prestations
the term
• Conjunctive - there are several prestations and • Burden of proof rests on the one who made the
ALL of them are due choice
• Distributive – there are several prestations and Article 1202.
only 2 or more prestations are due
The debtor shall lose the right of choice when
Alternative - several prestations are due but among the prestations whereby he is
performance of 1 is enough alternatively bound, only one is practicable.
Example: Christian borrowed P10,000 from -Obligation becomes simple
Hillary. It was agreed that Christian can pay in
cash, or give gift certificate in the same amount,
or grocery items. Article 1203.
Facultative - only 1 prestation is due but the If through the creditor's acts, the debtor cannot
debtor may substitute another make a choice according to the terms of the
Example: John borrowed P100,000 from Jalen. If obligation, the latter may rescind the contract
he failed to pay on the due date, John will with damages.
mortgage his car to Jalen. -Instance when the debtor has the option to
Article 1200. rescind

The right of choice belongs to the debtor, unless Article 1204.

it has been expressly granted to the creditor The creditor shall have a right to indemnity for
The debtor shall have no right to choose those damages when, through the fault of the debtor,
prestations which are impossible, unlawful or all the things which are alternatively the object of
which could not have been the object of the the obligation have been lost, or the compliance
obligation. of the obligation has become impossible.

GENERAL RULE: right to choose prestation The indemnity shall be fixed taking as basis the
belongs to the debtor EXCEPTION: Express value of the last thing which disappeared, or that
grant to the creditor of the service which last became impossible.

Limitations on the right of debtor to choose the Damages other than the value of the last thing or
prestation: service may also be awarded.

1. Prestation should NOT be impossible, -In case of disagreement, the creditor has the
unlawful or those that could not have been the burden to prove the value
object of an obligation; Article 1205.
2. No choice if despite alternative prestations, When the choice has been expressly given to
only one is practicable the creditor, the obligation shall cease to be
3. Debtor cannot partially from each prestation. alternative from the day when the selection has
been communicated.
Article 1201.
Until then the responsibility of the debtor shall be
The choice shall produce no effect except from governed by the following rules:
the time it has been communicated.
(1) If one of the things is lost through a fortuitous
• Obligation remains alternative until after a event, he shall perform the obligation by
choice have been made and communicated delivering that which the creditor should choose
from among the remainder, or that which
• Once communicated, it is irrevocable and can remains if only one subsists;
only be changed with the consent of the other
party (2) If the loss of one of the things occurs through
the fault of the debtor, the creditor may claim any
• Concurrence of the creditor to the choice made of those subsisting, or the price of that which,
is not required • No required form of through the fault of the former, has disappeared,
communication - written or oral with a right to damages;
(3) If all the things are lost through the fault of the prestation. There is a solidary liability only
the debtor, the choice by the creditor shall fall when the obligation expressly state, or when the
upon the price of any of them, also with law or the nature of the obligation requires
indemnity for damages. solidarity. Article 1208. If from the law, or the
nature or the wording of the obligations to which
The same rules shall be applied to obligations to the preceding article refers, the contrary does
do or not to do in case one, some or all of the not appear, the credit or debt shall be presumed
prestations should become impossible. to be divided into as many as there are creditors
• Pertains to rules in case of loss when the or debtors, the credits or debts being considered
creditor is given the choice distinct from one another, subject to the Rules of
Court governing the multiplicity of suits
Article 1206.
Kinds of obligations according to the number
When only one prestation has been agreed of parties
upon, but the obligor may render another in
substitution, the obligation is called facultative. 1. Individual obligation - 1 obligor or 1 obligee

The loss or deterioration of the thing intended as 2. Collective obligation - 2 or more debtors
substitute, through the negligence of the obligor, and/or 2 or more creditors
does not render him liable. But once the a. Joint obligation - whole obligation is to be
substitution has been made, the obligor is liable paid or fulfilled by the different debtors and/or is
for the loss of the substitute on account of his to be demanded proportionately by the different
delay, negligence or fraud. creditors
Facultative obligation - only one prestation has b. Solidary obligation - each one of the debtors
been agreed upon but the obligor may render is bound to render and/or each one of the
another in substitution. creditors has a right to demand from any of the
Example: I will give you my phone but I may give debtors entire compliance
you my smart watch as a substitute. • Collective obligations are presumed to be
Effect of loss: JOINT • Jointly, proportionately, pro-rata

(1) Before substitution Example: A, B and C borrowed Php15,000 from

D
a. Through fortuitous event - obligation is
extinguished Presumed JOINT since there is no indication to
the contrary • Debts and/or credits are separate
b. Debtor is not liable with (damages) or without and distinct • Each debtor is liable only for
fault proportionate share - Php5,000 each
c. Loss will extinguish the facultative character • Solidary obligations arises only when:
(2) After substitution o The obligation expressly states so o Law
requires solidarity o Nature of the obligation
a. Debtor is not liable for whatever cause
requires solidarity o Imposed upon a final
because it is no longer due
judgment
b. Once substitution is made, the obligation
• Jointly and/or severally, in solidum, solidaria,
becomes simple
individually and/or collectively
LESSON 5 KINDS OF SOLIDARITY

JOINT AND SOLIDARY OBLIGATIONS According to parties bound Passive solidarity -

on the part of the debtors; any one can be
Article 1207. compelled to comply with the entire obligation -
The occurrence of two or more creditors or of MUTUAL GUARANTY
two or more debtors in one and the same
obligation does not imply that each one of the Example: Elle and Yanna are solidary debtors of
former has a right to demand, or that each of the Mayumi in the amount of P10,000 - Mayumi can
latter is bound to render, entire compliance with demand P10,000 from either Elle or Yanna - The
debtor who pays has the right to demand Example: Regine, Donna and Mikey are jointly
payment from the other debtor liable to deliver so laptop worth P30,000 to
Perlie. On the due date, Regine was not willing
Active solidarity - solidarity on the part of the to comply.
creditors; any one can demand the fulfillment of
the entire obligation • Resort of the creditor is found in Article 1224
Example: Mayumi is liable for P10,000 to Elle Article 1210 The indivisibility of an obligation
and Yanna who are solidary creditors - Elle or does not necessarily give rise to solidarity. Nor
Yanna can demand from Mayumi na payment of does solidarity of itself imply indivisibility.
P10,000 - If Elle received payment, he is
responsible for giving Yanna's share INDIVISIBILITY

Mixed solidarity - solidarity on the part of SOLIDARITY

debtors and creditors where each one of the Prestation
debtors is liable and each one of creditors has a
right to demand compliance or fulfillment of the Juridical or legal tie
obligation Example: Michael and Jhun are
Only the debtor guilty of breach is liable
solidarily liable to Dez and Mina, who are
solidary creditors, in the amount of P50,000. - All debtors are liable for the breach of any one of
Either Michael or Jhun can pay Dez or Mina - them
Either Dez or Mina can demand from Michael or
Jhun Can exist with only 1 debtor and 1 creditor

According to source • Conventional solidarity - There must at least be 2 debtors or 2 creditors

solidarity is agreed upon • Legal solidarity - Others will not be liable for the Debtors are
solidarity is imposed by law, i.e. partnership • proportionately liable insolvency of 1 debtor
Real solidarity - solidarity isimposed by the
nature of the obligation Example: Lee and Park are jointly liable to
deliver to Suju a car.
Article 1209.
If the division is impossible, the right of the .
creditors may be prejudiced only by their
collective acts, and the debt can be enforced
only by proceeding against all the debtors. If one Article 1211. Solidarity may exist although the
of the latter should be insolvent, the others shall creditors and the debtors may not be bound in
not be liable for his share. the same manner and by the same periods and
conditions
Joint
KINDS OF SOLIDARYOBLIGATIONS
in terms of liability indivisible
ACCORDING TO THE LEGAL TIE:
in terms of compliance obligation
1. Uniform - same stipulations 2. Non-uniform or
Example: Regine, Donna and Mikey are jointly varied - not subject to the same stipulations
liable to deliver so laptop worth P30,000 to
Example: Jennie, Rose, Lisa and Jisoo obliged
Perlie. On the due date, Regine was not willing
themselves solidarily to pay RM P10,000 as
to comply.
follows
• Resort of the creditor is found in Article 1224
• Jennie to pay by monthly installment of P1,000
Article 1209. If the division is impossible, the starting October 2020 • Rose to pay by monthly
right of the creditors may be prejudiced only by installment of P1,000 starting November 2020 •
their collective acts, and the debt can be Lisa to pay by monthly installment of P1,000
enforced only by proceeding against all the starting December 2020 . Jisoo to pay when she
debtors. If one of the latter should be insolvent, graduates from college.
the others shall not be liable for his share.
Article 1212 Each one of the solidary creditors
Joint in terms of liability may do whatever may be useful to the others,
but not anything which may prejudicial to others
indivisible in terms of compliance) obligation
. Based on the theory of mutual agency" - right of due, no interest for the intervening period may
one to act for be demanded
and in the name of the others • If one of the When one of the solidary debtors cannot
creditor act prejudicially and results in the because of his insolvency, reimburse his Share
to the debtor paying the obligation, his share
extinguishment of the obligation, he shall be shall be bome by all his co debtors, in proportion
liable to the other creditors to the debt of each
Article 1213 A solidary creditor cannot assign his • Reimbursement • Interest from the time of
rights without the consent of the others. payment
• Trust and confidence • Assignment to a third Article 1218. Payment by a solidary debtor shall
person - not allowed • Assignment to a co- not entitle him to reimbursement from his co
creditor - allowed debtors it such payments made after the
Article 1214. The debtor may pay any one of the obligation has prescribed or become
solidary creditors; but if any demand, judicially or Prescriptive periods of actions - lapse of time .
extrajudicially, has been made by one of them, 10 years from the time the right of action accrues
payment should be made to him
o Written contract o Obligation created by law
o Upon a judgment • 6 years
o Oral contract
.
o Quasi-contract • 4 years
.
o Injuries to the rights of the plaintiff o Quasi-
Article 1215. Novation, compensation, confusion delict
or remission of the debt, made by any of the
solidary creditors or with any of the solidary Article 1219. The remission made by the creditor
debtors, shall extinguish the obligation, without of the share which affects one of the solidary
prejudice to the provisions of Article 1219. debtors does not release the latter from his
responsibility towards the co-debtors, in case the
The creditor who may have executed any of debt has been totally paid by anyone of them
these acts, as well as he who collects the debt before the remission was effected
shall be liable to the others for the share in the
obligation corresponding to them • Remission or waiver has no effect if payment
was made first
Article 1216. The creditor may proceed against
any one of the solidary debtors or some or all of .
them simultaneously. The demand made against
one of them shall not be an obstacle to those .
which may subsequently be directed against the Article 1220. The remission of the whole
others, so long as the debt has not been fully obligation obtained by one of the solidary
collected debtors, doos not entitle him to reimbursement
• Right of the creditor to proceed against any from his co-debtors.
solidary debtor Article 1221. If the thing has been lost or if the
. prestation has become impossible without the
fault if the solidary debtors, the obligation shall
Article 1217 Payment made by one of the be extinguished
solidary debtors extinguishes the obligation. If
two or more solidary debtors offer to pay, the If there was out on the part of any one of them all
creditor may choose which offer to accept shall be responsible to the creditor for the price
and the payment of damages and interest,
He who made the payment may claim from his without prejudice to their action against the guilty
debars only the share which corresponds to or negligent debtor
each, with the interest for the payment already
made. If the payment is made before the debt is If through fortuitous event, the thing is lost or the
performance has become Impossible after one of
the solidary debtors has incurred in delay KINDS OF INDIVISIBILITY: 1.legal indivisibility -
through judicial or extrajudicial demand upon him declared by law to be indivisible - divisible by
by the creditor, the provisions of the preceding
paragraph shall apply nature 2.conventional indivisibility - will of the
parties - divisible by nature 3. natural indivisibility
Article 1222 A solidary debtor, may, in action - nature of the object/prestation does not admit
filed by the creditor, avail himself of all defenses
which are derived from the nature of the division
obligation and of those which are personal to Article 1224. A joint indivisible obligation gives
him, or pertain to his own share with respect to rise to indemnity for damages from the time
those which personally belong to the others, he anyone of the debtors does not comply with his
may avait himself thereof only as regards that undertaking. The debtors who may have been
part of the debt for which the latter are ready to fulfill their promises shall not contribute
responsible to the indemnity beyond the corresponding
Defenses from the nature of obligation i. portion of the price of the thing or of the value of
Payment il Fraud iii. Prescription iv. Remission the service which the obligation consists.
V. Illegality or absence of consideration vi. Res • Non-compliance with a joint indivisible
judicata - judged matter vii, Non-performance of obligation results in an
suspensive condition
action for damages
Defenses personal to, or which pertain to share
of, debtor sued i Insanity ii. Incapacity iii. Mistake • Specific performance or rescission is not
In Violence V. Minority demandable since

Defenses personal to other solidary debtors there is no cause of action to the other debtors

. .

DIVISIBLE AND INDIVISIBLE OBLIGATIONS Article 1225. For the purposes of the preceding
articles, obligations to give definite things and
Article 1223. The divisibility or indivisibility of the those which are not susceptible of partial
things that are the object of obligations in which performance shall be deemed indivisible.
there is only one debtor and only one creditor
does not alter or modify the provisions of When the obligation has for its object the
Chapter 2 of this Title. execution of a certain number of days of work,
the accomplishment of work by metrical units, or
Divisible obligation -object is capable of partial analogous things which by their nature are
performance Indivisible obligation-object is not susceptible of partial performance, it shall be
capable of partial performance divisible.
Test for the distinction: intention of the parties However, even though the object or service may
- If the object if not physically divisible or the be physically divisible, an obligation in indivisible
service is not capable of partial performance, it is if so provided by law or intended by the parties.
always indivisible In obligations not to do, divisibility or indivisibility
Example: John agreed to pay Krismy P10,000 in shall be determined by the character of the
4 equal installment -DIVISIBLE will become prestation in each particular case.
INDIVISIBLE if the agreement was for John to • Obligation deemed indivisible: i. To give a
pay the full amount of a certain definite thing ii. Not susceptible of partial
date performance - sing a song, tiktok challenges iii.
Provided by law - even if the thing is physically
DIVISIBLE AND INDIVISIBLE OBLIGATIONS divisible - taxes iv. Intended by parties to be
indivisible - one time payments
KINDS OF DIVISION:
- Obligation deemed divisible: i. Execution is for
1. qualitative division - based on quality 2. certain number of days ii. Accomplishment by
quantitative division - based on quantity 3. metrical units ill. Susceptible of partial
ideal/intellectual division - exists only in the mind performance by their nature
OBLIGATIONS WITH A PENAL CLAUSE Article 1227 The debtor cannot exempt himself
from the performance of the obligation by paying
Article 1226. In obligations with a penal clause, the penalty. Save in case where this right has
the penalty shall substitute the indemnity for been expressly reserved for him. Neither can the
damages and the payment of interests in case of creditor demand the fulfillment of the obligation
non-compliance, if there is no stipulation to the and the satisfaction of the penalty at the same
contrary. Nevertheless, damages shall be paid if time, unless this right has been clearly granted
the obligor refuses to pay the penalty or is guilty him. However, if after the creditor has decided to
of fraud in the fulfillment of the obligation require the fulfillment of the obligation, the
The penalty may be enforced only when it is performance thereof should become impossible
demandable in accordance with the provisions of without His Put the penalty may be enforced
this Code. • Penalty not substitute for performance
• Principal obligation - can stand by itself; not Article 1228 Proof of actual damages suffered by
dependent on another the creditor is not necessary in order that the
obligation • Accessory obligation - attached to a penalty may be demanded
principal obligation
Obligation with a penal clause - contains an Article 1229. The judge shall equitably reduce
accessory undertaking to pay a previously the penalty when the principal obligation has
stipulated indemnity in case of breach of the been partly or irregularly complied with by the
principal prestation debtor Even if there has been no performance,
. the penalty may also be reduced by the courts if
it is iniquitous or unconscionable.
OBLIGATIONS WITH A PENAL CLAUSE
When penalty may be reduced by the courts: i.
Penal clause - Accessory undertaking attached Partial or irregular performance ii. Penalty
to an obligation to assume greater liability in agreed upon is iniquitous unconscionable
case of breach
Article 1230. The nullity of the penal cause does
• To insure performance • To substitute a penalty not carry with it that of the principal obligation
for the indemnity for damages and
The nullity of the principal obligation carries with
payment of Interests in case of non-compliance it that of the penal cause
(1) As to origin a. Legal - provided by law b.
Conventional - stipulated by the parties General principle: Accessory follows the principal
- not vice versa
(2) As to purpose a. Compensatory - takes the
place of damages b. Punitive imposed as Answers in Quizzes:
punishment for breach Moral- Laws that change with time and is the
(3) As to demandability or effect a. Subsidiary or totality of norms of good and right.
alternative - only the penalty can be enforced b. Procedural- also called adjective or remedial
Joint or cumulative - both principal obligation and law.
penal clause can be enforced
Damage- harm done to a party
OBLIGATIONS WITH A PENAL CLAUSE
Cause of Action- Act of omission which violates
When can a creditor recover damages in a right.
addition to the penalty - when agreed upon -
when debtor refuses to pay the penalty - debtor -Accessories
is guilty of fraud in the fulfillment of the obligation
-Accession
penalty is demandable only when there is a
breach of obligation and it is not contrary to low, -Fruits – when the delivery of the thing which
morals, good customs, publle order is the object of an obligation to give due, which
of the following should debtor give.
or public policy
Contracts- is not a source of law
.
Not to give- which is not civil obligation True- conditions as to numbers may be
conjunctive or disjunctive.
Contracts- is not a source of law
True- A condition that an event will happen at a
Commercial- example of public public determinate time is called a positive condition.
Furtuitous event- breach of obligation, which True- it is impossible that an obligation subject of
does not belongs to the fraud, negligence, and a suspensive condition may be deemed
delay. fulfillment when the creditor intervenes and
Void- if an obligation is dependent on the sole prevents its fulfillment.
will of the debtor False- Retroactivity is automatic to give, to do
Legally Impossible- if a condition is contrary to and not to do.
law, morals, good customs, public order and True- there is absolutely no retroactive effect in
public policy, the condition unilateral obligations since it is naturally
Constructive- when a condition is deemed gratuitous
fulfilled because the debtor voluntarily prevented True- when the thing subject of an obligation is
its fulfillment also called. lost through the debtor’s fault he/she is liable for
Obligation with a period- an obligation for damages.
which a day certain was fixed for its fulfillment. False- when the thing subject of an obligation is
-Future and uncertainment event improved at the debtor expense, he/she do not
have any right over.
-has retroactive effect
False- when the thing subject of an obligation
-makes the obligation invalid -which of because of the debtor, creditor may have the obli
the following are applicable to a condition rescinded or fulfilled.
True- when the thing subject of an obligation
deteriorates without the debtor’s fault, creditor
suffers the loss.
-Only prestation is practicable
True- when both are guilty of breach, there will
-prestation is not impossible - in an be an equitable reduction if the 1st infractor is
alternative obligation, the following are the known.
limitations to the debtors right to choose.
True- obligations subject to a casual or mix
True or False: conditions are valid.

False- an obligation subject of a suspensive True- a resolutory condition extinguishes an

condition is demandable at once. obligation while a suspensive gives rise to an
obligation.
True- In obligations subject to a suspensive
condition, the creditor only has mere hope or True- generally, a condition is something that is
expectation prior to the fulfillment of the in future and uncertain, however, it may also
condition. refer to something in the past but must be
known.
True- the fulfillment of a condition may be
dependent on the will of the debtor or upon False- an obligation is pure if it subject to a
chance or upon the will of 3rd person. condition that can be easily done.

True- A condition may be imposed even after the False- when the parties did not specify any
obligation was born period, the court cannot intervene because the
contract is already a law between the parties.
False- when the fulfillment of a suspensive
condition depends solely upon will of the False- Accessories always follow the principal
creditor, it is void. If the same is dependent upon
False- a debtor is always liable even in case of
the sole will of the debtor it is valid.
fortuitous event.
True- waiver of future negligence may be
allowed.
False- laws should always be interpreted even
when it is clear.
False- Quasi-contracts is a source of obligation
based on the principle that the law may be harsh
but it is the law.
True- as general rule, the kind of diligence
required to give is that to give is that of good
father of the family.
True- obligations arise from contracts, quasi-
contracts, delics of quasi-delics
True- rights arising from obligations may be
assigned to another person.
True- laws may also from customs
True- some presumptions may be contradicted
by presentation of evidence to the contrary
True- in case of delay on the part of the creditor,
there are available remedies for the debtor to be
relieved from his obligation.
False- Fortuitous event cannot always be
foreseen.
False- obligations arising from laws are always
presumed
False- accessories always follow principal.