AcctngEd 03

ASSIGNMENT 2

Name: Audrey Gayle C. Gervacio

Course: BSMAC 1 D

True or False. Briefly explain your answer.

_False_ 1. The diligence of a good father of a family is expected and high standards of

integrity and performance are required of the banking business.

(In banking business, the highest degree of diligence is expected, and high

standards of integrity and performance are also required.)

True 2. The degree of diligence required of banks is more than that of a good father

of a family.
(The obligation of the banking business requires banks to assume the “highest

degree, and not just the diligence of a good father.)

False 3. It is presumed that a person driving a motor vehicle has not been negligent if

at the time of the mishap, he was violating any traffic regulations.

(The person is presumed to not be negligent if he was NOT violating any traffic

regulations.)

_False_ 4. The law characterizes diligence as the omission of that diligence required

by the nature of the obligation and corresponds with the circumstances of the

persons, of the time and of the place.

(It is negligence the law characterizes.)

_True_ 5. When the plaintiff’s own negligence was the immediate and proximate cause

of his injury, he cannot recover damages.

(The plaintiff who is responsible for his own injury should be entitled to recover

damages.)

_True_6. If the plaintiff’s negligence was only contributory, the immediate and
proximate cause of the injury being the defendant’s lack of due care, the plaintiff may

recover damages, but the courts shall mitigate the damages to be awarded.
(Since the plaintiff is partly responsible for his own injuries, he is not entitled to

recoever damages in full but he still must bear the consequences of his own

negligence.)
 AcctngEd 03
ASSIGNMENT 1

Name: Audrey Gayle C. Gervacio

Course: BSMAC 1 D

True or False. Briefly explain your answer.

_­False_ 7. When an employee causes damages due to his own negligence while

performing his own duties, there arises the presumption that his employer is not

negligent.
(There arises a presumption that the employer is negligent, rebuttable only by

proof of observance of the diligence of a good father.)

_False_ 8. Default does not begin from the moment the creditor demands the

performance of the obligation.

(Default generally begins from the moment the creditor demands the performance

of the obligation.)

_True_ 9. In compensation morae, the parties cancel out the effects of default, such

that it is as if no one is guilty of delay.

(The obligor's delay cancels out the obligor's delay and vice versa. Neither party

has made a default that can be used against them, therefore they are both

presumed not guilty of delay.

_­True_ 10. In reciprocal obligations, the general rule is that the fulfilment of the parties’

respective obligations should be simultaneous.

(They are to be accomplished at the same time, with the completion of one

conditional on the accomplishment of the other.)

 AcctngEd 03
ASSIGNMENT 1

Name: Audrey Gayle C. Gervacio

Course: BSMAC 1 D

True or False. Briefly explain your answer.

False_ 11. Dolo incidente is a fraud which induces a party to enter into a contract.
(Dolo incidente is a kind of fraud that isn't the reason the contracting parties

agreed to it. It only refers to an event in the contract, and even if it wasn't there, the

contracting parties would still have agreed to it.)

_False__12. Dolo causante is not the reason that induced the party to enter into a

contract.
(This is the main reason the party agreed to the contract. Without this, the party

would not have agreed to the contract.)

_True_13. In the selection of prospective employees, the concept of diligence requires

employers to examine their employees as to their qualifications, experience and

service records.
(The employer must demonstrate that it acted like a good father in the selection of

the employee and in the monitoring of the employee's obligations in order to avoid

liability.)

_False_14. When what is to be delivered is a generic thing, the creditor, may compel

the debtor to make the delivery.

(If the thing is indeterminate or generic, he may ask that the obligation be complied

with at the expense of the debtor.)

_False_15. If the thing is a determinate thing, the creditor may ask that the obligation

be complied with at the expense of the debtor.’

(When what is to be delivered is a determinate thing, the creditor, in addition to the

right granted him by article 1170, may compel the debtor to make the delivery.
 AcctngEd 03
ASSIGNMENT 1

Name: Audrey Gayle C. Gervacio

Course: BSMAC 1 D

True or False. Briefly explain your answer.

_True_16. If a person obliged to do something fails to do it, the same shall be

executed at his cost.

(If the person obliged failed to do his obligation, he shall bear the consequences.)

_True_ 17. If a person obliged to do something does it in contravention of the tenor of

the obligation, the same shall be executed at his cost.

(If the debtor fulfills an obligation but does so in violation of the terms, he will be

executed at his own expense.)

_True__18. Mere delinquency in payment does not necessarily mean delay in the legal

concept.
(When a person defaults, they're not just delaying; they're actually starting a new

condition or situation that has its own unique impacts and outcomes.)

_False_19. If the object of obligation is a generic thing, the loss or destruction of

anything of the same kind even without the debtor’s fault and before he has incurred

in delay will not have the effect of extinguishing the obligation.

(An obligation involving the delivery of a specific item shall be extinguished if it is

lost or destroyed without the debtor's fault and prior to the debtor incurring a

delay.)

_False_ 20. An obligation to pay money is determinate.

(The obligation to give a determinate thing includes that of delivering all its

accessions, and accessories. The payment of debt with money must be stipulated.)
 AcctngEd 03
Answer the following:

When is an obligation with suspensive condition demandable?

An obligation to give subject to a suspensive condition becomes demandable only

upon the fulfillment of the condition. However, once the condition is fulfilled, its

effects shall retroact to the day when the obligation was constituted.

If the obligation imposed a resolutory condition, when is the obligation

demandable?
Upon the fulfillment of a resolutory condition, the obligation is demandable at

once, without prejudice to the effects of the happening of the event.

What is the effect upon the obligation if the condition imposed depends solely

upon the will of the debtor?

When the fulfillment of the condition depends upon the sole will of the debtor, the

conditional obligation shall be void.

What is the effect upon the obligation if the condition imposed depends upon

chance or upon the will of a third person?

If it depends upon chance or upon the will of the third person, the obligation shall

take effect in conformity with the provisions of the code.

If the condition imposed is not to do an impossible thing, will the obligation be

affected?
If the condition imposed is not to do an impossible thing, it shall be considered as

not having been agreed upon.

When shall the obligation be demandable if the condition imposed is that some

event happen a determinate time?

The obligation shall be demandable if the condition imposed is that some event

happen a determinate time when the time stipulated on the condition has ended.

If the condition imposed is that some event will not happen at a determinate time,

when shall the obligation become effective?

If the condition imposed is that some event will not happen at a determinate time,

the obligation becomes effective from the moment the time indicated has elapsed,

or if it has become evident that the event cannot occur.

 AcctngEd 03
Answer the following:

If the obligor voluntarily prevents the fulfillment of a suspensive condition, shall

the obligation become effective?

The condition shall be deemed fulfilled when the obligor voluntarily prevents its

fulfillment. That means the obligation remains effective.

What are the rules to determine the retroactive effects of the fullfillment of a

suspensive condition in conditional obligations to give?

when the obligation imposes reciprocal prestations upon the parties, the fruit

interest during the pendency of the condition shall be deemed to have been

mutually compensated.
If the obligation is unilateral, the debtor shall appropriate the fruits and interest

received, unless from the nature and circumstances of the obligation it should be

inferred that the intention of the person constituting the same was different.

Who shall determine the retroactive effects of the condition that has been

complied with, in obligations to do or not to do?

The court are the ones to determine the retroactive effects of the condition.

What are the rights of the creditor during the pendency of a suspensive condition?
The creditor may go to court, to prevent alienation or concealment of property.

What are the rules to follow in case of improvement, loss or deterioration of the

determinate thing during the pendency of a suspensive condition in an obligation

to give?
(1) If the thing is lost without the fault of the debtor, the obligation shall be

extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay

damages; it is understood that the thing is lost when it perishes, or goes out of

commerce, or disappears in such a way that its existence is unknown or it cannot

be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is

to be borne by the creditor;

(4) If it deteriorates through the fault of the debtor, the creditor may choose

between the rescission of the obligation and its fulfillment, with indemnity for

damages in either case;

(5) If the thing is improved by its nature, or by time, the improvement shall inure to

the benefit of the creditor;

 AcctngEd 03
Answer the following:

(6) If it is improved at the expense of the debtor, he shall have no other right than

that granted to the usufructuary. (1122)

What rules will be applied in case of the fulfillment of a resolutory condition?

extinguishment of an obligation to give
the parties, upon the fulfillment of said conditions, shall return to each other what

they have received.

What are the remedies of the aggrieved party in case one of the obligors in a

reciprocal obligation does not comply with what is incumbent upon him?
The aggrieved party may choose between the fulfillment and the rescission of the

obligation, with the payment of damages in either case. He may also seek

rescission, even after he has chosen fulfillment, if the latter should become

impossible.

What rules will be applied to determine the liability in case both parties to an

obligation have committed a breach of obligation?

In case both parties have committed a breach of the obligation, the liability of the

first infractor shall be equitably tempered by the courts. If it cannot be determined

which of the parties first violated the contract, the same shall be deemed

extinguished, and each shall bear his own damages.

For whose benefit is the period, whenever in an obligation a period is designated?

When in an obligation a period is designated, it is supposed to have been

established for the benefit of both the creditor and debtor.

When may the courts fix a period in an obligation?

The courts may fix an obligation period if the obligation does not fix a period, but

it is clear from its nature and circumstances that a time frame was intended.

Who has the right of choice in an alternative obligation?

As a general rule, in an alternative obligation, the right of choice belongs to the

debtor.
 AcctngEd 03
Answer the following:

When does the debtor lose his right of choice in an alternative obligation?
The debtor loses his right to chose when all of the prestations, except one, have

been impossible or unlawful.

When does an alternative obligation become a simple obligation?

An alternative obligation becomes a simple obligation when the debtor has made a

choice or selection and has announced it to the creditor.

In a facultative obligation, who shall have the right to make the substitution?
In a facultative obligation, the obligor has the right to render another in

substitution.

If the obligation is solidary, how shall the debtors be liable?

If the obligation is solidary, the debtor can be held liable for the whole amount,

and after that debtor pays the whole obligation, that same debtor can then

proceed against his other debtors to be paid/reimbursed for the rest of the

obligation.

How shall the obligation be performed if the obligation is joint but the division is

impossible?
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 of the latter should be insolvent, the others shall not be liable

for his share.

If one of the solidary debtors pays in full the obligation, will the obligation be

extinguished?
Payment in full made by one of the solidary debtors extinguishes the obligation.

What is the true test in determining whether an obligation is divisible or indivisible?

[1] Purpose of the obligation
[2] Intention of the parties
 AcctngEd 03
Answer the following:

What are the purposes of the penal clause in an obligation with a penal clause?
According to he purpose of incorporating a penal clause to an obligation are to

insure their performance by creating an effective deterrent against breach,

making the consequences of such breach as onerous as it may be possible and to

substitute a penalty for the indemnity for damages and the payment of interests in

case of non-compliance; or to punish the debtor for the on-fulfillment or violation

of his obligation.

Can the debtor choose to pay the penalty instead of performing the obligation in an

obligation with a penal clause?

The general rule is that the debtor is not allowed to pay the penalty instead of

fulfilling the obligation. He can only do so if the right has been EXPRESSLY

reserved. The reason is that if he can just pay, fulfillment if the obligation will be

considered an alternative one. The word EXPRESSLY means that any implied

reservation is not allowed.

Can the creditor enforce the penalty even though he has not suffered any damage?
The creditor can enforce the penalty even if he has not suffered any damage.

However, he cannot recover more than the stipulated penalty.

State the difference between penalty and liquidated damages, if any.

The major distinction between liquidated damages and penalties is that a penalty

is imposed when the sum fixed is greater than the actual loss experienced,

whereas liquidated damages are imposed when the amount fixed is a pre-

estimate of the loss.

What is the effect of the nullity of the penal clause upon the principal obligation?
The nullity of the penal clause does not carry with it that of the principal

obligation.

What is the effect of the nullity of the principal obligation upon the penal clause?
The nullity of the principal obligation carries with it that of the penal clause.