OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

An obligation is a juridical n c ssit! to gi" # to do# or not to do.

1156. JURIDICAL NECESSITY juridical tie; connote t at in ca!e o" nonco#$liance% t ere &ill 'e le(al !anction!) An o'li(ation i! not in( #ore t an t e dut* o" a $er!on +o'li(or, to !ati!"* a !$eci"ic de#anda'le clai# o" anot er $er!on +o'li(ee, & ic % i" 'reac ed% i! en"orcea'le in court)

one ! all 'e unju!tl* enric ed or 'ene"ited at t e e?$en!e o" anot er DELICTS ari!e "ro# ci-il lia'ilit* & ic i! t e con!e7uence o" a cri#inal o""en! =UASI>DELICTS +tort!, ari!e "ro# da#a(e cau!ed to anot er t rou( an act or o#i!!ion% t ere 'ein( "ault or ne(li(ence% 'ut no contractual relation e?i!t! 'et&een t e $artie! @@ . !ource! o" o'li(ation!< la& and contract 7>contract% delict!% and 7>delict! are i#$o!ed '* la&)

DA$AG%S !u# o" #one* (i-en a! a co#$en!ation "or

t e injur* or ar# !u""ered '* t e o'li(ee "or t e -iolation o" i! ri( t) . /INDS 01 02LI3ATI0N 4) CIVIL 02LI3ATI0N an o'li(ation% i" not "ul"illed & en it 'eco#e! due and de#anda'le% #a* 'e en"orced in court t rou( action; 'a!ed on la&) .) NATURAL 02LI3ATI0N a !$ecial 5ind o" o'li(ation & ic cannot 'e en"orced in court 'ut & ic aut ori6e! t e retention o" t e -oluntar* $a*#ent or $er"or#ance #ade '* t e de'tor; 'a!ed on e7uit* and natural la&) +i)e) & en t ere i! $re!cri$tion o" dut* to $a*% !till% t e o'li(or $aid i! due! to t e o'li(ee t e o'li(or cannot reco-er i! $a*#ent e-en t ere i! $re!cri$tion, ELEMENTS 01 02LI3ATI0N &SOC' 4) ACTIVE SU2JECT +Creditor80'li(ee, t e $er!on & o i! de#andin( t e $er"or#ance o" t e o'li(ation; .) 9ASSIVE SU2JECT +De'tor80'li(or, t e one 'ound to $er"or# t e $re!tation or to "ul"ill t e o'li(ation or dut*; :) 9RESTATI0N +to (i-e% to do% or not to do, !u'ject #atter o" t e o'li(ation; conduct re7uired to 'e o'!er-ed '* t e de'tor; ;) E11ICIENT CAUSE t e JURIDICAL TIE & ic 'ind! t e $artie! to t e o'li(ation; !ource o" t e o'li(ation) 9RESTATI0N 4) T0 3IVE deli-er* o" a t in( to t e creditor +in !ale% de$o!it% $led(e% donation,; .) T0 D0 co-er! all 5ind! o" &or5! or !er-ice! +contract "or $ro"e!!ional !er-ice!,; :) N0T T0 D0 con!i!t! o" re"rainin( "ro# doin( !o#e act! +in "ollo&in( rule! and re(ulation!,) INJURY &ron("ul act or o#i!!ion & ic cau!e! lo!! or ar# to anot er DAMA3E re!ult o" injur* +lo!!% urt% ar#, 1155. Obligations )ro* la, ar not 3r su* d. Onl! t4os &1' 63r ssl! d t r*in d in t4is cod or &.' in s3 cial la,s ar d *andabl # and s4all b r gulat d b! t4 3r c 3ts o) t4 la, ,4ic4 stablis4 s t4 *- and as to ,4at 4as not b n )or s n# b! t4 3ro"isions o) t4is cod . Unle!! !uc o'li(ation! are EA9RESSLY $ro-ided '* la&% t e* are not de#anda'le and en"orcea'le% and cannot 'e $re!u#ed to e?i!t) T e Ci-il Code can 'e a$$lica'le !u$$letoril* to o'li(ation! ari!in( "ro# la&! ot er t an t e Ci-il Code it!el") S$ecial la&! re"er to all ot er la&! not contained in t e Ci-il Code)

1157. Obligations arising )ro* contracts 4a" t4 )orc o) la, b t, n t4 contracting 3arti s and s4ould b co*3li d ,it4 in good )ait4. C0NTRACT #eetin( o" #ind! 'et&een t&o $er!on! & ere'* one 'ind! i#!el"% &it re!$ect to t e ot er% to (i-e% to do !o#et in( or to render !o#e !er-ice; (o-erned $ri#aril* '* t e a(ree#ent o" t e contractin( $artie!) VALID C0NTRACT it ! ould not 'e a(ain!t t e la&% contrar* to #oral!% (ood cu!to#!% $u'lic order% and $u'lic $olic*) In t e e*e! o" la&% a -oid contract doe! not e?i!t and no o'li(ation &ill ari!e "ro# it)

02LI3ATI0NS ARISIN3 1R0M C0NTRACTS $ri#aril* (o-erned '* t e !ti$ulation!% clau!e!% ter#! and condition! o" t eir a(ree#ent!) I" a contractB! $re!tation i! uncon!ciona'le +un"air, or unrea!ona'le% e-en i" it doe! not -iolate #oral!% la&% etc)% it #a* not 'e en"orced totall*) Inter$retation o" contract in-ol-e! a 7ue!tion o" la&)

115(. Obligation aris s )ro* + &1' la,- &.' contracts- &/' 0uasi1contracts- &2' acts or o*issions 3unis4 d b! la,- &5' 0uasi1d licts. LAW i#$o!ed '* la& it!el" C0NTRACTS ari!e "ro# !ti$ulation! o" t e $artie!< #eetin( o" t e #ind! 8 "or#al a(ree#ent =UASI>C0NTRACTS LVU ari!e "ro# la&"ul% -oluntar* and unilateral act! and & ic are en"orcea'le to t e end t at no

C0M9LIANCE IN 300D 1AITC co#$liance or $er"or#ance in accordance &it t e !ti$ulation! or ter#! o" t e contract or a(ree#ent) 1ALSI1ICATI0N 01 A VALID C0NTRACT onl* t e unaut ori6ed in!ertion! &ill 'e di!re(arded; t e ori(inal ter#! and !ti$ulation! ! ould 'e con!idered -alid and !u'!i!tin( "or t e $artie! to "ul"ill) 1168. Obligations d ri" d )ro* 0uasi1contracts s4all b subj ct to t4 3ro"isions o) c4a3t r 1# titl 1( o) t4is boo9.

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=UASI>C0NTRACT juridical relation re!ultin( "ro# la&"ul% -oluntar* and unilateral act! '* -irtue o" & ic % 'ot $artie! 'eco#e 'ound to eac ot er% to t e end t at no one &ill 'e unju!tl* enric ed or 'ene"ited at t e e?$en!e o" t e ot er) 4) T ere i! no con!ent con!ent i! 9RESUMED) NE30TI0RUM 3ESTI0 juridical relation & ic ta5e! $lace & en !o#e'od* -oluntaril* #ana(e! t e $ro$ert* a""air! o" anot er &it out t e 5no&led(e or con!ent o" t e latter; o&ner ! all rei#'ur!e t e (e!tor "or nece!!ar* and u!e"ul e?$en!e! incurred '* t e latter "or t e $er"or#ance o" i! "unction a! (e!tor) S0LUTI0 INDE2ITI !o#et in( i! recei-ed & en t ere i! no ri( t to de#and it and it &a! undul* deli-ered t rou( #i!ta5e; o'li(ation to return t e t in( ari!e! on t e $art o" t e reci$ient)

TEST 01 NE3LI3ENCE Did t e de"endant% in doin( t e alle(ed ne(li(ent act%% u!e t e rea!ona'le care and caution & ic an ordinar* $rudent #an &ould a-e u!ed in t e !a#e !ituationF BASIS 4) INTENT .) INTEREST :) LIA2ILITY ;) 9UR90SE E) C0M9R0MISE G) 3UILT D%LICTS=CRI$% Cri#inal8#aliciou! A""ect! 9U2LIC intere!t Cri#inal and ci-il lia'ilitie! 9ur$o!e $uni! #ent Cannot 'e co#$ro#i!ed 9ro-ed 'e*ond rea!ona'le dou't >?ASI1D%LICTS Ne(li(ence A""ect! 9RIVATE intere!t Ci-il lia'ilit* Inde#ni"ication Can 'e co#$ro#i!ed 9re$onderance o" e-idence

.)

1161. Ci"il obligations arising )ro* cri*inal o)) ns s s4all b go" rn d b! t4 3 nal la,s# subj ct to t4 3ro"isions o) Articl .1((# and o) t4 3 rtin nt 3ro"isions o) C4a3t r .# :r li*inar! in ;u*an R lations# and o) Titl 15 o) t4is boo9# r gulating da*ag s. E-er* $er!on cri#inall* lia'le "or a "elon* i! al!o ci-ill* lia'le +art) 4DD% R9C, CIVIL LIA2ILITY INCLUDES<RRI 4) RESTITUTI0N r storation o) 3ro3 rt! 3r "iousl! ta9 n a,a!- t e t in( it!el" ! all 'e re!tored% e-en t ou( it 'e "ound in t e $o!!e!!ion o" a t ird $er!on & o a! ac7uired it '* la&"ul #ean!% !a-in( to t e latter i! action a(ain!t t e $ro$er $er!on & o #a* 'e lia'le to i#) .) RE9ARATI0N 01 TCE DAMA3E CAUSED court d t r*in s t4 a*ount o) da*ag < 3ric o) a t4ing# s nti* ntal -alue% etc) :) INDEMNI1ICATI0N 10R C0NSE=UENTIAL DAMA3ES includ s da*ag s su)) r d b! t4 )a*il! o) t4 injur d 3art! or b! a t4ird 3 rson '* rea!on o" t e cri#e) T e ac7uittal o" t e accu!ed in t e cri#inal ca!e on (round o" rea!ona'le dou't doe! not $reclude t e "ilin( o" a !u'!e7uent ci-il action)

Basis 4) NATURE 01 NE3LI3ENC E .)300D 1ATCER 01 TCE 1AMILY DE1ENSE :)9RESUM9T I0N 01 NE3LI3ENC E

Cul3a A0uiliana &>uasi1d lict' Direct% !u'!tanti-e and inde$endent Co#$lete and $ro$er de"en!e +$arent!% (uardian% e#$lo*er!, No $re!u#$tion injured $art* #u!t $ro-e ne(li(ence o" t e de"endant)

Cul3a Contractual &Br ac4 o) contract' Incidental to t e $er"or#ance o" t e o'li(ation) Not co#$lete and $ro$er de"en!e in t e !election o" e#$lo*ee!) T ere i! $re!u#$tion de"endant #u!t $ro-e t at t ere &a! no ne(li(ence in t e carr*in( out o" t e ter#! o" t e contract)

116/. %" r! 3 rson oblig d to gi" so* t4ing is also oblig d to ta9 car o) it ,it4 t4 3ro3 r dilig nc o) a good )at4 r o) a )a*il!# unl ss t4 la, or t4 sti3ulation o) t4 3arti s r 0uir s anot4 r standard o) car . S$ea5! o" an o'li(ation to care o" a DETERMINATE t in( +t at i! one & ic i! !$eci"ic; a t in( identi"ied '* it! indi-idualit*, & ic an o'li(or i! !u$$o!ed to deli-er to anot er)

116.. Obligations d ri" d )ro* 0uasi1d licts s4all b go" rn d b! t4 3ro"isions o) c4a3t r .# titl 1( o) t4is boo9# and b! s3 cial la,s. =UASI>DELICT +cul$a a7uiliana, an act or o#i!!ion '* a $er!on & ic cau!e! da#a(e to anot er (i-in( ri!e to an o'li(ation to $a* "or t e da#a(e done% t ere 'ein( "ault or ne(li(ence 'ut t ere i! no $re>e?i!tin( contractual relation 'et&een $artie!) RE=UISITES< > 0NDDN 4) o#i!!ion .) ne(li(ence :) da#a(e cau!e to t e $lainti"" ;) direct relation o" o#i!!ion% 'ein( t e cau!e% and t e da#a(e% 'ein( t e e""ect E) no $re>e?i!tin( contractual relation! 'et&een $artie! 1ault or Ne(li(ence con!i!t! in t e o#i!!ion o" t at dili(ence & ic i! re7uired '* t e nature o" t e o'li(ation and corre!$ond! &it t e circu#!tance! o" t e $er!on% ti#e% and o" t e $lace)

DUTIES 01 DE2T0R< 4) 9re!er-e or ta5e care o" t e t in(! due) a) DILI3ENCE 01 A 300D 1ATCER a (ood "at er doe! not a'andon i! "a#il*% e i! al&a*! read* to $ro-ide and $rotect i! "a#il*; ordinar* care & ic an a-era(e and rea!ona'l* $rudent #an &ould do) ') AN0TCER STANDARD 01 CARE e?traordinar* dili(ence $ro-ided in t e !ti$ulation o" $artie!) c) 1ACT0RS T0 2E C0NSIDERED dili(ence de$end! on t e nature o" o'li(ation and corre!$ond! &it t e circu#!tance! o" t e $er!on% ti#e% and $lace) De'tor i! not lia'le i" i! "ailure to deli-er t e t in( i! due to "ortuitou! e-ent! or "orce #ajeureH &it out ne(li(ence or "ault in i! $art) Deli-er t e "ruit! o" a t in( Deli-er t e acce!!ion!8acce!!orie!
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OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

;) E)

Deli-er t e t in( it!el" An!&er "or da#a(e! in ca!e o" non>"ul"ill#ent or 'reac

1166. T4 obligation to gi" a d t r*inat t4ing includ s t4at o) d li" ring all its acc ssions and acc ssori s# " n t4oug4 t4 ! *a! not 4a" b n * ntion d. ACCESSI0NS "ruit! o" t e t in( or addition! to or i#$ro-e#ent! u$on t e $rinci$al) ACCESS0RIES t in(! included &it t e $rinci$al "or t e latterB! e#'elli! #ent% 'etter u!e% or co#$letion Co&e-er% t e $artie! #a* !ti$ulate t e certain acce!!ion! or acce!!orie! & ic ! all 'e e?cluded a! t e* a-e "reedo# to !ti$ulate)

1162. T4 cr ditor 4as a rig4t to t4 )ruits o) t4 t4ing )ro* t4 ti* t4 obligation to d li" r it aris s. ;o, " r# 4 s4all ac0uir no r al rig4t o" r it until t4 sa* 4as b n d li" r d to 4i*. 0&ner! i$ i! tran!"erred '* deli-er* & ic could 'e eit er actual or con!tructi-e) T e re#ed* o" t e 'u*er i" t ere i! no deli-er* de!$ite de#and i! to "ile a co#$laint "or IS9ECI1IC 9ER10RMANCE AND DELIVERYJ 'ecau!e e i! not *et t e o&ner o" t e $ro$ert* 'e"ore t e deli-er*)

ACTUAL DELIVERY actual deli-er* o" a t in( "ro# t e and o" t e (rantor to t e and o" t e (rantee +$re!onall*,% or #ani"e!ted '* certain $o!!e!!or* act! e?ecuted '* t e (rantee &it t e con!ent o" t e (rantor +realt*,) C0NSTRUCTIVE TRADITI0N re$re!entati-e o" !*#'olical in e!!ence and &it intention to deli-er t e o&ner! i$) 1RUITS< 4) NATURAL !$ontaneou! $roduct! o" t e !oil% t e *oun( and ot er $roduct! o" ani#al!; .) INDUSTRIAL $roduced '* land! o" an* culti-ation or la'or; :) CIVIL t o!e deri-ed '* -irtue o" juridical relation) 1165. @4 n ,4at is to b d li" r d is a d t r*inat t4ing# t4 cr ditor A *a! co*3 l t4 d btor to *a9 d li" r!. I) t4 t4ing is ind t r*inat or g n ric# 4 *a! as9 t4at t4 obligation b co*3li d ,it4 at t4 63 ns o) t4 d btor. I) t4 obligor d la!s or 4as 3ro*is d to d li" r t4 sa* t4ing to t,o or *or 3 rsons ,4o do not 4a" t4 sa* int r st# 4 s4all b r s3onsibl )or an! )ortuitous " nt until 4 4as )) ct d t4 d li" r!. DETERMINATE TCIN3 !o#et in( & ic i! !u!ce$ti'le o" $articular de!i(nation or !$eci"ication; o'li(ation i! e?tin(ui! ed i" t e t in( i! lo!t due to "ortuitou! e-ent!) INDETERMINATE TCIN3 !o#et in( t at a! re"erence onl* to a cla!! or (enu!; o'li(ation to deli-er i! not !o e?tin(ui! ed '* "ortuitou! e-ent!) REMEDIES 10R 1AILURE 01 DELIVERY +deter#inate t in(, 4) Co#$laint "or !$eci"ic $er"or#ance an action to co#$el t e "ul"ill#ent o" t e o'li(ation) .) Co#$laint "or re!ci!!ion o" t e o'li(ation action to re!cind :) Co#$laint "or da#a(e! action to clai# "or co#$en!ation o" da#a(e! !u""ered A! a (eneral rule% Ino $er!on ! all 'e re!$on!i'le "or t o!e e-ent! & ic could not 'e "ore!een% or & ic % t ou( "ore!een% are ine-ita'le% e?ce$t< a) in ca!e! e?$re!!l* !$eci"ied '* t e la& ') & en it i! !ti$ulated '* t e $artie! c) & en t e nature o" t e o'li(ation re7uire! a!!u#$tion o" ri!5 An indeter#inate t in( cannot 'e o'ject o" de!truction '* a "ortuitou! e-ent 'ecau!e (enu! ne-er $eri! e!)

116(. I) a 3 rson oblig d to do so* t4ing )ails to do it# t4 sa* s4all b 6 cut d at 4is cost. T4is sa* rul s4all b obs r" d i) 4 do s it in contra" ntion o) t4 t nor o) t4 obligation A it *a! b d cr d t4at ,4at 4as b n 3oorl! don b undon . TCREE SITUATI0NS< 4) De'torB! "ailure to $er"or# an o'li(ation creditor #a* do t e o'li(ation% or '* anot er% at t e e?$en!e o" t e de'tor; reco-er da#a(e! .) 9er"or#ance &a! contrar* to t e ter#! a(reed u$on order o" t e court to undo t e !a#e at t e e?$en!e o" t e de'tor :) 9er"or#ance in a $oor #anner order o" t e court to undo t e !a#e at t e e?$en!e o" t e de'tor 1165. @4 n t4 obligation consists in NOT DOING and t4 obligor do s ,4at 4as b n )orbidd n 4i*# it s4all also b undon at 4is 63 ns . 1167. T4os oblig d to d li" r or to do so* t4ing incur in d la! )ro* t4 ti* t4 oblig judiciall! or 6trajudiciall! d *ands )ro* t4 * t4 )ul)ill* nt o) t4 ir obligation. ;o, " r# t4 d *and b! t4 cr ditor s4all not b n c ssar! in ord r t4at d la! *a! 6ist< 1. .. /. 2. 5. @4 n t4 la, or obligation so 63r ssl! d clar s@4 n )ro* t4 natur o) t4 contract# ti* is t4 ss nc and *oti"ating )actor )or its stablis4* nt@4 n d *and ,ould b us l ss &3r station is i*3ossibl 'In r ci3rocal obligations# )ro* t4 *o* nt on o) t4 3arti s )ul)ills 4is obligation@4 n t4 d btor ad*its 4 is in d )ault

0RDINARY DELAY #ere "ailure to $er"or# an o'li(ation at t e a$$ointed ti#e) LE3AL DELAY +DE1AULT, tanta#ount to non>"ul"ill#ent o" t e o'li(ation and ari!e! a"ter an e?trajudicial or judicial de#and &a! #ade u$on t e de'tor) /INDS 01 DE1AULT< 4) M0RA S0LVENDI dela* on t e $art o" t e de'tor to "ul"ill i! o'li(ation; RE=UISITES< a) "ailure o" t e o'li(or to $er"or# o'li(ation on t e DATE a(reed u$on; ') de#and +j8ej, '* t e creditor; c) "ailure to co#$l* &it !uc de#and E11ECTS< a) de'tor lia'le "or da#a(e! and intere!t!
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de'tor lia'le "or t e lo!! o" a t in( due to a "ortuitou! e-ent .) M0RA ACCI9IENDI dela* on t e $art o" t e creditor to acce$t t e $er"or#ance o" t e o'li(ation; E""ect!< a) creditor lia'le "or da#a(e! ') creditor 'ear! t e ri!5 o" lo!! o" t e t in( c) de'tor not lia'le "or intere!t "ro# t e ti#e o" creditorB! dela* d) de'tor relea!e i#!el" "ro# t e o'li(ation :) C0M9ENSATI0 M0RAE dela* o" t e o'li(or! in reci$rocal o'li(ation) E""ect< t e de"ault o" one co#$en!ate! t e de"ault o" t e ot er; t eir re!$ecti-e lia'ilitie! ! all 'e o""!et e7uita'le) 11(8. T4os ,4o in t4 3 r)or*anc o) t4 ir obligations ar guilt! o) )raud# n glig nc # or d la!# and t4os ,4o in an! *ann r contra" n t4 t nor t4 r o)# ar liabl )or da*ag s. 1RAUD +dolo, deli'erate intentional e-a!ion o" t e "ait "ul "ul"ill#ent o" an o'li(ation; NE3LI3ENCE +cul$a or "ault, -oluntar* act or o#i!!ion o" dili(ence% t ere 'ein( no #alice% & ic $re-ent! t e nor#al "ul"ill#ent o" an o'li(ation; DELAY +#ora, de"ault or tardine!! in t e $er"or#ance o" an o'li(ation a"ter it a! 'een due and de#anda'le; C0NTRAVENTI0N 01 TERMS 01 02LI3ATI0N +-iolatio, -iolation o" ter#! and condition! !ti$ulated in t e o'li(ation; t i! #u!t not 'e due to a "ortuitou! e-ent) 11(1. R s3onsibilit! arising )ro* )raud is d *andabl in all obligations. An! ,ai" r o) an action )or )utur )raud is "oid. To allo& !uc &ai-er &ill nece!!aril* render t e o'li(ator* "orce o" contract! illu!or*) T e la& doe! not $ro i'it &ai-er o" an action "or da#a(e! 'a!ed on "raud alread* co##itted) An* deli'erate de-iation "ro# t e nor#al &a* o" "ul"illin( t e o'li(ation #a* 'e a $ro$er 'a!i! "or clai# "or da#a(e! a(ain!t t e (uilt* $art*)

')

obs r" d in t4 3 r)or*anc # t4at ,4ic4 is 63 ct d i) a good )at4 r o) a )a*il! s4all b r 0uir d. DILI3ENCE t e attention and care re7uired o" a $er!on in a (i-en !ituation and i! o$$o!ite o" ne(li(ence) NE3LI3ENCE con!i!t! in t e o#i!!ion o" t at dili(ence & ic i! re7uired '* t e nature o" t e $articular o'li(ation and corre!$ond! &it t e circu#!tance! o" t e $er!on!% o" t e ti#e% and o" t e $lace) /INDS o" DILI3ENCE< 4) DILI3ENCE 01 A 300D 1ATCER a (ood "at er doe! not a'andon i! "a#il*% e i! al&a*! read* to $ro-ide and $rotect i! "a#il*; ordinar* care & ic an a-era(e and rea!ona'l* $rudent #an &ould do) .) Dili(ence re7uired '* t e la& (o-ernin( t e $articular o'li(ation :) Dili(ence !ti$ulated '* t e $artie! 11(2. %6c 3t in cas s 63r ssl! s3 ci)i d b! t4 la,# or ,4 n it is ot4 r,is d clar d b! sti3ulation# or ,4 n t4 natur o) t4 obligation r 0uir s t4 assu*3tion o) ris9# no 3 rson s4all b r s3onsibl )or t4os " nts ,4ic4 could not b )or s n# or ,4ic4# t4oug4 )or s n# , r in "itabl . 10RTUIT0US EVENT an occurrence or a$$enin( & ic could not 'e "ore!een or e-en i" "ore!een% i! ine-ita'le; a'!olutel* inde$endent o" u#an inter-ention; act o" 3od) M0RCE MAJEURE > an e-ent cau!ed '* t e le(iti#ate or ille(iti#ate act! o" $er!on! ot er t an t e o'li(or; t ere i! u#an inter-ention) RE=UISITES 01 10RTUIT0US EVENT< 4) Inde$endent o" t e u#an &ill +or at lea!t o" t e o'li(orB!, .) Un"ore!een or una-oida'le :) 0" !uc c aracter a! to render it i#$o!!i'le "or t e o'li(or to co#$l* &it i! o'li(ation in a nor#al #anner ;) 0'li(or "ree "ro# an* $artici$ation8a((ra-ation o" t e injur* to t e o'li(ee +no ne(li(ence or i#$rudence, EAE9TI0NS<SN>D.2L 4) W en it i! e?$re!!l* !ti$ulated t at e ! all 'e lia'le e-en i" non>$er"or#ance o" t e o'li(ation i! due to "ortuitou! e-ent!; .) W en t e nature o" t e o'li(ation re7uire! t e a!!u#$tion o" ri!5; :) W en t e o'li(or i! in dela*; ;) W en t e o'li(or a! $ro#i!ed t e !a#e t in( to t&o or #ore $er!on! & o do not a-e t e !a#e intere!t; E) W en t e $o!!e!!or i! in 'ad "ait and t e t in( lo!t or deteriorated due to "ortuitou! e-ent; G) W en t e o'li(or contri'uted to t e lo!! o" t e t in() 11((. ?surious transactions s4all b go" rn d b! s3 cial la,s. USURY contractin( "or or recei-in( intere!t in e?ce!! o" t e a#ount allo&ed '* la& "or t e loan or u!e o" #one*% (ood!% etc) SIM9LE L0AN one o" t e $artie! deli-er! to anot er% #one* or ot er con!u#a'le t in( u$on t e condition t at t e !a#e a#ount o" t e !a#e 5ind and 7ualit* ! all 'e $aid)
9a(e ;

INCIDENTAL 1RAUD co##itted in t e $er"or#ance o" an o'li(ation alread* e?i!tin( 'ecau!e o" a contract) CAUSAL 1RAUD e#$lo*ed in t e e?ecution o" contract) 11(.. R s3onsibilit! arising )ro* n glig nc in t4 3 r)or*anc o) " r! 9ind o) obligation is also d *andabl # but suc4 liabilit! *a! b r gulat d b! t4 courts# according to circu*stanc s. CourtB! di!cretion 'ecau!e< 4) ne(li(ence de$end! u$on t e circu#!tance! o" a ca!e (ood or 'ad "ait o" t e o'li(or #a* 'e con!idered a! &ell a! t e conduct or #i!conduct o" t e o'li(ee; .) it i! not a! !eriou! a! "raud) Ne(li(ence lac5 o" "ore!i( t or 5no&led(e I#$rudence lac5 o" !5ill or $recaution 11(/. T4 )ault or n glig nc o) t4 obligor consists in t4 o*ission o) t4at dilig nc ,4ic4 is r 0uir d b! t4 natur o) t4 obligation and corr s3onds ,it4 t4 circu*stanc s o) t4 3 rsons# o) t4 ti* and o) t4 3lac A I) t4 la, or contract do s not stat t4 dilig nc ,4ic4 is to b

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

4) USURY LAW #a5e! t e u!urer! cri#inall* lia'le i" t e intere!t c ar(ed on loan! are #ore t at t e li#it $re!cri'ed '* la&) T i! la& i! re$ealed Circular No) KDE o" t e Central 2an5 a! e?$re!!l* re#o-ed t e intere!t ceilin(! $re!cri'ed '* t e USURY LAW) 11(6. T4 r c i3t o) t4 3rinci3al b! t4 cr ditor ,it4out r s r"ation ,it4 r s3 ct to t4 int r st# s4all gi" ris to t4 3r su*3tion t4at said int r st 4as b n 3aid. T4 r c i3t o) a lat r install* nt o) a d bt ,it4out r s r"ation as to 3rior install* nts# s4all li9 ,is rais t4 3r su*3tion t4at suc4 install* nts 4a" b n 3aid. To 'e !ure &rite t e intere!t and t e date! co-ered '* !uc $a*#ent in t e recei$t)

.)

Su!$en!i-e 0'li(ation it! "ul"ill#ent (i-e! ri!e to an o'li(ation; t e de#anda'ilit* o" t e o'li(ation or t e e""ecti-it* o" t e contract can ta5e $lace onl* a"ter t e condition a! 'een "ul"illed) Re!olutor* 0'li(ation it! a$$enin( e?tin(ui! e! t e o'li(ation & ic i! alread* e?i!tin(;

1158. @4 n t4 d btor binds 4i*s l) to 3a! ,4 n 4is * ans 3 r*it 4i* to do so# t4 obligation s4all b d * d to b on ,it4 a 3 riod# subj ct to t4 3ro"isions o) Articl 117(. S$ea5! o" a $eriod de$endin( on t e &ill o" t e DE2T0R) I" it! $ur$o!e i! to dela*% i##ediate action i! allo&ed) T e court "i?e! t e ter#!)

9ERI0D a "uture and certain e-ent u$on t e arri-al o" & ic % t e o'li(ation !u'ject to it eit er ari!e! or i! e?tin(ui! ed) INDICATI0NS 01 A TERM 0R 9ERI0D< W en t e de'tor 'ind! i#!el" to $a* 4) & en i! #ean! $er#it i# to do !o .) little '* little :) a! !oon a! $o!!i'le ;) "ro# ti#e to ti#e E) a! !oon a! I a-e t e #one* G) in $artial $a*#ent L) & en in t e $o!ition to $a* 1151. In conditional obligations# t4 ac0uisition o) rig4ts# as , ll as t4 6tinguis4* nt or loss o) t4os alr ad! ac0uir d# s4all d 3 nd u3on t4 4a33 ning o) t4 " nt ,4ic4 constitut s t4 condition. Su!$en!i-e Condition t e ac7ui!ition o" ri( t! '* t e creditor de$end! u$on t e a$$enin( o" t e e-ent & ic con!titute! t e condition; i" !uc condition doe! not ta5e $lace% it &ould 'e a! o" t e conditional o'li(ation ad ne-er e?i!ted) +i)e) $ro#i!e to (i-e a car a"ter (raduatin( "ro# la& !c ool a! cu# laude, Re!olutor* Condition t e ri( t! and o'li(ation! alread* e?i!tin( are under t reat o" e?tinction u$on t e a$$enin( or "ul"ill#ent o" !uc condition) +i)e) donation '* rea!on o" #arria(e t e cele'ration o" #arria(e i! a re!olutor* condition; i" t e #arria(e did not $u! t rou( % t e donation #a* 'e re-o5ed, 115.. @4 n t4 )ul)ill* nt o) t4 condition d 3 nds u3on t4 sol ,ill o) t4 d btor# t4 conditional obligation s4all b "oid. I) it d 3 nds u3on c4anc or u3on t4 ,ill o) a t4ird 3 rson# t4 obligation s4all ta9 )) ct in con)or*it! ,it4 t4 3ro"isions o) t4is Cod . A$$lie! onl* to !u!$en!i-e condition!)

11((. T4 cr ditors# a)t r 4a"ing 3ursu d t4 3ro3 rt! in 3oss ssion o) t4 d btor to satis)! t4 ir clai*s# *a! 6 rcis all t4 rig4ts and bring all t4 actions o) t4 latt r )or t4 sa* 3ur3os # sa" t4os ,4ic4 ar in4 r nt in 4is 3 rson- t4 ! *a! also i*3ugn t4 acts ,4ic4 t4 d btor *a! 4a" don to d )raud t4 *. REMEDIES AVAILA2LE T0 CREDIT0RS 10R TCE SATIS1ACTI0N 01 TCEIR CLAIMS< 4) E?act "ul"ill#ent &it ri( t to da#a(e! .) E? au!tion o" t e de'torB! $ro$ertie! !till in i! $o!!e!!ion &rit o" attac #ent +'e"ore jud(#ent, or &rit o" e?ecution +"or "inal jud(#ent not *et e?ecuted, :) ACCI0N SU2R03AT0RIA an action & ere t e creditor & o!e clai#! ad not 'een "ull* !ati!"ied% #a* (o a"ter t e de'tor! +:rd $er!on, o" t e de"endant de'tor) ;) ACCI0N 9AULIANA an action & ere t e creditor "ile! an action in court "or t e RESCISSI0N o" act! or contract! entered into '* t e de'tor de!i(ned to de"raud t e "or#er) 11(5. Subj ct to t4 la,s# all rig4ts ac0uir d in "irtu o) an obligation ar trans*issibl # i) t4 r 4as b n no sti3ulation to t4 contrar!. EACE9TI0NS< 4) T o!e not tran!#i!!i'le '* t eir nature li5e $urel* $er!onal ri( t!; .) T o!e not tran!#i!!i'le '* $ro-i!ion o" la&; :) T o!e not tran!#i!!i'le '* !ti$ulation o" $artie!) 11(7. %" r! obligation ,4os 3 r)or*anc do s not d 3 nd u3on a )utur or unc rtain " nt# or u3on a 3ast " nt un9no,n to t4 3arti s# is d *andabl at onc . %" r! obligation ,4ic4 contains a r solutor! condition s4all also b d *andabl # ,it4out 3r judic to t4 )) cts o) t4 4a33 ning o) t4 " nt. C0NDITI0N an e-ent & ic i! 'ot "uture and uncertain u$on & ic t e creation or e?tin(ui! #ent o" an o'li(ation i! #ade to de$end) 9URE 02LI3ATI0N an o'li(ation & ic doe! not contain an* condition or ter# u$on & ic t e "ul"ill#ent i! #ade to de$end; i##ediatel* de#anda'le '* t e creditor! and t e de'tor cannot 'e e?cu!ed "ro# not co#$l*in( &it i! $re!tation) C0NDITI0NAL 02LI3ATI0N an o'li(ation !u'ject to a condition)

: /INDS 01 C0NDITI0NS UNDER TCIS ARTICLE< 1. 90TESTATIVE a !u!$en!i-e condition & ic de$end! u$on t e &ill o" one o" t e contractin( $artie! i" at t e !ole &ill o" t e de'tor% it i! -oid; i" at t e creditorB!% !till -alid) t i! i! to $re-ent t e e!ta'li! #ent o" illu!or* o'li(ation!) .) CASUAL t e condition de$end! u$on c ance or t e &ill o" a t ird $er!on;+i)e) cell$ one &arrant*, :) MIAED t e condition de$end! $artl* u$on t e &ill o" t e $artie! and $artl* u$on c ance or t e &ill o" a t ird $er!on; 115/. I*3ossibl conditions# t4os contrar! to good custo*s or 3ublic 3olic! and t4os 3ro4ibit d b! la, s4all
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OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

annul t4 obligation ,4ic4 d 3 nds u3on t4 *. I) t4 obligation is di"isibl # t4at 3art t4 r o) ,4ic4 is not a)) ct d b! t4 i*3ossibl or unla,)ul condition s4all b "alid. T4 condition not to do an i*3ossibl t4ing s4all b consid r d as not 4a"ing b n agr d u3on. 90SSI2LE C0NDITI0N i" it i! ca$a'le o" reali6ation or actuali6ation accordin( to nature% la&% $u'lic $olic* or (ood cu!to#!) . /INDS 01 IM90SSI2LE C0NDITI0NS< 4) 9 *!icall* I#$o!!i'le cannot e?i!t or cannot 'e done in it! nature; .) Le(all* I#$o!!i'le contrar* to la&% (ood cu!to#!% or $u'lic $olic*) W en a conditional o'li(ation i! V0ID i#$o!!i'le condition! annul t e o'li(ation & ic de$end! u$on t e#; t e o'li(or 5no&! i! o'li(ation cannot 'e "ul"illed% e a! no intention to co#$l* &it i! o'li(ation) W en a conditional o'li(ation i! VALID i" t e condition i! ne(ati-e +not to do an i#$o!!i'le t in(,% it i! di!re(arded and t e o'li(ation i! rendered $ure and -alid) 0nl* t e a""ected o'li(ation i! -oid% i" t e o'li(ation i! di-i!i'le% and t e $art t ereo" not a""ected '* t e i#$o!!i'le condition i! -alid) 0nl* t e condition i! -oid i" t ere i! alread* a $re>e?i!tin( o'li(ation and it doe! not de$end u$on t e "ul"ill#ent o" t e condition & ic i! i#$o!!i'le) 1152. T4 condition t4at so* " nt 4a33 n at a d t r*inat ti* s4all 6tinguis4 t4 obligation as soon as t4 ti* 63ir s or i) it 4as b co* indubitabl t4at t4 " nt ,ill not ta9 3lac . 9o!iti-e condition re"er! to t e "ul"ill#ent o" an e-ent or $er"or#ance o" an act Ne(ati-e condition re"er! to t e non>"ul"ill#ent or non> $er"or#ance o" an act) 90SITIVE SUS9ENSIVE C0NDITI0N T e o'li(ation i! e?tin(ui! ed< 4) A! !oon a! t e TIME EA9IRES &it out t e e-ent ta5in( $lace; .) A! !oon a! it a! 'eco#e certain t at t e EVENT WILL N0T TA/E 9LACE alt ou( t e ti#e !$eci"ied a! not *et e?$ired) @@ TIME i! t e condition ! ould a$$en "or t e o'li(ation to e?tin(ui! ) 1155. T4 condition t4at so* " nt ,ill not 4a33 n at a d t r*inat ti* s4all r nd r t4 obligation )) cti" )ro* t4 *o* nt t4 ti* indicat d 4as la3s d# or i) it 4as b co* "id nt t4at t4 " nt cannot occur. I) no ti* 4as b n )i6 d# t4 condition s4all b d * d )ul)ill d at suc4 ti* as *a! 4a" 3robabl! b n cont *3lat d# b aring in *ind t4 natur o) t4 obligation. @@ T i! i! a condition o" non> a$$enin( o" a "uture e-ent) T e o'li(ation ! all 'eco#e e""ecti-e and 'indin(< 4) 1ro# t e #o#ent t e ti#e indicated a! ela$!ed &it out t e e-ent ta5in( $lace;

.)

1ro# t e #o#ent it a! 'eco#e e-ident t at t e e-ent cannot occur% alt ou( t e ti#e indicated a! not *et ela$!ed)

44M; >-!> 44ME 1152 &:OSITIB% S?S:%NSIB%' Jon Davis obliges himself to give the pregnant woman Amy Lee $5000 if she would give birth on or before December 30. a) Jon Da-i! i! LIA2LE i" A#* Lee (i-e! 'irt on or 'e"ore Dece#'er :D) ') Jon Da-i! i! N0T LIA2LE i" A#* Lee (i-e! 'irt a"ter Dece#'er :D) c) I" A#* Lee &ould a-e a #i!carria(e 'e"ore Dece#'er :D% t e o'li(ation i! EATIN3UISCED) 1155 &N%GATIB% S?S:%NSIB%' Jon Davis obliges himself to give the pregnant woman Amy Lee $5000 if she would !" give birth on December 30. a) Jon Da-i! i! N0T LIA2LE i" A#* Lee (i-e! 'irt on Dece#'er :D) ') Jon Da-i! i! LIA2LE i" A#* Lee DID N0T (i-e 'irt on Dece#'er :D i" A#* Lee (i-e! 'irt 2E10RE or A1TER Dece#'er :D) c) I" A#* Lee &ould a-e a #i!carria(e 'e"ore Dece#'er :D% t e o'li(ation i! dee#ed 1UL1ILLED)

1156. T4 condition s4all b d * d )ul)ill d ,4 n t4 obligor "oluntaril! 3r " nts its )ul)ill* nt. RE=UISITES< 4) T e condition i! SUS9ENSIVE; .) T e o'li(or ACTUALLY 9REVENTS t e "ul"ill#ent o" t e condition; :) Ce act! V0LUNTARILY) Malice or "raud i! not re7uired% a! lon( a! i! $ur$o!e i! to $re-ent t e "ul"ill#ent o" t e condition) No $er!on ! all $ro"it '* i! o&n &ron()

115(. T4 )) cts o) a conditional obligation to gi" # onc t4 condition 4as b n )ul)ill d# s4all r troact to t4 da! o) t4 constitution o) t4 obligation. N " rt4 l ss# ,4 n t4 obligation i*3os s r ci3rocal 3r stations u3on t4 3arti s# t4 )ruits and int r sts during t4 3 nd nc! o) t4 condition s4all b d * d to 4a" b n *utuall! co*3 nsat d. I) t4 obligation is unilat ral# t4 d btor s4all a33ro3riat t4 )ruits and int r sts r c i" d# unl ss )ro* t4 natur and circu*stanc s o) t4 obligation it s4ould b in) rr d t4at t4 int ntion o) t4 3 rson constituting t4 sa* ,as di)) r nt. In obligations to do and not to do# t4 courts s4all d t r*in # in ac4 cas # t4 r troacti" )) ct o) t4 condition t4at 4as b n co*3li d ,it4. A$$lie! onl* to "ul"illed !u!$en!i-e condition!) Retroacti-e !tatute T e e""ect! o" t e o'li(ation i! dee#ed to co##ence not "ro# t e "ul"ill#ent o" t e o'li(ation 'ut "ro# t e da* o" it! con!titution +!i#ilar to t e le(iti#ation o" a natural c ild, T e article doe! not re7uire t e deli-er* o" "ruit! or $a*#ent o" intere!t! accruin( +accu#ulatin(, 'e"ore t e "ul"ill#ent o" t e !u!$en!i-e condition) 0'li(ation! to do or not to do t e retroacti-e e""ect ! all 'e deter#ined '* t e court u!in( it! !ound
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OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

di!cretion &it out di!re(ardin( t e intention! o" t e $artie!) 1155. T4 cr ditor *a!# b )or t4 )ul)ill* nt o) t4 condition# bring t4 a33ro3riat actions )or t4 3r s r"ation o) 4is rig4t. T4 d btor *a! r co" r ,4at during t4 sa* ti* 4 4as 3aid b! *ista9 in cas o) a sus3 nsi" condition. 9re!er-ation o" t e ri( t! o" CREDIT0R t e de'tor #a* render nu(ator* +not !eriou!% i(nore, t e o'li(ation u$on t e a$$enin( o" t e o'li(ation) 4) Action "or $ro i'ition re!trainin( t e alienation o" t e t in( $endin( t e a$$enin( o" t e !u!$en!i-e condition; .) Action to de#and !ecurit* i" t e de'tor a! 'eco#e in!ol-ent; :) Action to !et a!ide alienation! #ade '* t e de'tor in "raud o" creditor!; ;) Action! a(ain!t ad-er!e $o!!e!!or! to interru$t t e runnin( $re!cri$ti-e $eriod) Ri( t! o" t e DE2T0R entitled to reco-er & at a! 'een $aid '* #i!ta5e $rior to t e a$$enin( o" t e !u!$en!i-e condition) 1157. @4 n t4 conditions 4a" b n i*3os d ,it4 t4 int ntion o) sus3 nding t4 ))icac! o) an obligation to gi" # t4 )ollo,ing rul s s4all b obs r" d in cas o) t4 i*3ro" * nt# loss or d t rioration o) t4 t4ing during t4 3 nd nc! o) t4 condition< L0SS 4) .) de'tor &it out "ault o'li(ation i! e?tin(ui! ed de'tor &it "ault o'li(ation to $a* da#a(e!

Donation '* rea!on o" #arria(e i" t e #arria(e doe! not a$$en% !uc donation ! ould 'e returned to t e donor) Lo!!% deterioration and i#$ro-e#ent (o-erned '* 44MK) In o'li(ation! to do and not to do% t e court! ! all deter#ine% in eac ca!e% t e retroacti-e e""ect o" t e condition t at a! 'een co#$lied &it )

1171. T4 3o, r to r scind obligations is i*3li d in r ci3rocal on s# in cas on o) t4 obligors s4ould not co*3l! ,it4 ,4at is incu*b nt u3on 4i*. T4 injur d 3art! *a! c4oos b t, n t4 )ul)ill* nt and t4 r scission o) t4 obligation# ,it4 t4 3a!* nt o) da*ag s in it4 r cas . ; *a! also s 9 r scission# " n a)t r 4 4as c4os n )ul)ill* nt# i) t4 latt r s4ould b co* i*3ossibl . T4 court s4all d cr t4 r scission clai* d# unl ss t4 r b just caus aut4oriCing t4 )i6ing o) a 3 riod. T4is is und rstood to b ,it4out 3r judic to t4 rig4ts o) t4ird 3 rsons ,4o 4a" ac0uir d t4 t4ing# in accordanc ,it4 Articl s 1/55 and 1/55 and t4 $ortgag La,. RESCISSI0N re!olution or cancellation o" t e contract A$$lie! onl* to reci$rocal o'li(ation! & ere t&o $artie! are #utuall* de'tor and creditor o" eac ot er in t e !a#e tran!action) T e cau!e #u!t 'e identical and t e o'li(ation! #u!t ari!e !i#ultaneou!l*) T e $art* & o can de#and re!ci!!ion ! ould 'e t e $art* & o i! read*% &illin(% and a'le to co#$l* &it i! o&n o'li(ation! & ile t e ot er i! not ca$a'le to $er"or# i! o&n) REMEDIES< 4) .) S$eci"ic $er"or#ance or "ul"ill#ent o" o'li(ation &it da#a(e!; Re!ci!!ion o" contract &it da#a(e!)

DETERI0RATI0N 4) de'tor &it out "ault i#$air#ent i! to 'e 'orne '* t e creditor .) de'tor &it "ault creditor c oo!e!< re!ci!!ion o" o'li(ation% "ul"ill#ent% inde#nit* IM9R0VEMENT 4) '* nature or ti#e i#$ro-e#ent< inure to t e 'ene"it o" t e creditor .) at t e e?$en!e o" t e de'tor (ranted to t e u!u"ructuar* 1178. @4 n t4 conditions 4a" )or t4 ir 3ur3os t4 6tinguis4* nt o) an obligation to gi" # t4 3arti s# u3on t4 )ul)ill* nt o) said conditions# s4all r turn to ac4 ot4 r ,4at t4 ! 4a" r c i" d. In cas o) t4 loss# d t rioration or i*3ro" * nt o) t4 t4ing# t4 3ro"isions ,4ic4# ,it4 r s3 ct to t4 d btor# ar laid do,n in t4 3r c ding articl s4all b a33li d to t4 3art! ,4o is bound to r turn. As )or t4 obligations to do and not to do# t4 3ro"isions o) t4 s cond 3aragra34 o) Articl 115( s4all b obs r" d as r gards t4 )) ct o) t4 6tinguis4* nt o) t4 obligation. Re"er! to t e "ul"ill#ent o" a re!olutor* condition) W en t e re!olutor* condition a$$ened% t e o'li(ation i! con!idered a! i" it did not e?i!t) T e $artie! are 'ound to return or re!tore & ate-er t e* a-e recei-ed "ro# eac ot er Ireci$rocal re!titutionJ

E""ect o" re!ci!!ion< t e $artie! #u!t !urrender & ate-er t e* a-e recei-ed "ro# t e ot er% and t e o'li(ation to $a* i! e?tin(ui! ed) I" t ere i! an e?$re!! !ti$ulation o" auto#atic re!ci!!ion 'et&een $artie! !uc re!olution ! all ta5e $lace onl* a"ter t e creditor a! noti"ied t e de'tor o" i! c oice o" re!ci!!ion !u'ject to judicial !crutin*) 117.. In cas bot4 3arti s 4a" co**itt d a br ac4 o) t4 obligation# t4 liabilit! o) t4 )irst in)ractor s4all b 0uitabl! t *3 r d b! t4 courts. I) it cannot b d t r*in d ,4ic4 o) t4 3arti s )irst "iolat d t4 contract# t4 sa* s4all b d * d 6tinguis4 d# and ac4 s4all b ar 4is o,n da*ag s. 1IRST IN1RACT0R /N0WN T e lia'ilit* o" t e "ir!t in"ractor ! ould 'e e7uita'l* reduced) e7uita'l* o""!et eac ot erB! da#a(e!) 1IRST IN1RACT0R CANN0T 2E DETERMINED T e court ! all declare t e e?tin(ui! #ent o" t e o'li(ation and eac ! all 'ear i! o&n da#a(e!) 117/. Obligations )or ,4os )ul)ill* nt a da! c rtain 4as b n )i6 d# s4all b d *andabl onl! ,4 n t4at da! co* s. Obligations ,it4 a r solutor! 3 riod ta9 )) ct at onc # but t r*inat u3on arri"al o) t4 da! c rtain.

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OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

A da! c rtain is und rstood to b t4at ,4ic4 *ust n c ssaril! co* # alt4oug4 it *a! not b 9no,n ,4 n. I) t4 unc rtaint! consists in ,4 t4 r t4 da! ,ill co* or not# t4 obligation is conditional# and it s4all b r gulat d b! t4 rul s o) t4 3r c ding S ction. 9ERI0D 8 TERM con!i!t! in a !$ace or len(t o" ti#e u$on t e arri-al o" & ic % t e de#anda'ilit* or t e e?tin(ui! #ent o" an o'li(ation i! deter#ined; it #a* 'e de"inite +e?act date or ti#e i! 5no&n, or inde"inite +arri-al o" date i! un5no&n 'ut !ure to co#e,) 3ENERAL CLASSI1ICATI0NS< 4) EA DIE "ro# a da* certain (i-e ri!e to t e o'li(ation; !u!$en!i-e e""ect) .) IN DIEM arri-al o" a ter# certain ter#inated t e o'li(ation; re!olutor* e""ect)

1176. @4 n " r in an obligation a 3 riod is d signat d# it is 3r su* d to 4a" b n stablis4 d )or t4 b n )it o) bot4 t4 cr ditor and t4 d btor# unl ss )ro* t4 t nor o) t4 sa* or ot4 r circu*stanc s it s4ould a33 ar t4at t4 3 riod 4as b n stablis4 d in )a"or o) on or o) t4 ot4 r. Cannot a$$l* & en t e court &a! aut ori6ed '* t e $artie! to "i? a rea!ona'le ter#) T e 'ene"it o" t e ter# #a* 'e t e !u'ject o" !ti$ulation o" t e $artie!) 4) Ter# i! "or t e 'ene"it o" t e de'tor alone e cannot 'e co#$elled to $a* $re#aturel*% 'ut e can i" e de!ire! to do !o) .) Ter# i! "or t e 'ene"it o" t e creditor Ce #a* de#and "ul"ill#ent e-en 'e"ore t e arri-al o" t e ter# 'ut t e de'tor cannot re7uire i# to acce$t $a*#ent 'e"ore t e e?$iration o" t e !ti$ulated $eriod) T e creditor #a* a-e rea!on! ot er t an t e #aturit* o" intere!t% t atB! & *% unle!! t e creditor con!ent!% t e de'tor a! no ri( t to accelerate t e ti#e o" $a*#ent e-en i" t e $re#ature tender include an o""er to $a* t e $rinci$al and intere!t in "ull)

Ter# len(t o" ti#e !ure to co#e Condition "act or e-ent uncertain to co#e Basis 4) TIME .) 1UL1ILLMENT :) IN1LUENCE : riod=T r* Al&a*! re"er! to 1UTURE Sure to a$$en at an e?act date or inde"inite ti#e 'ut !ure to co#e) Merel* "i?e! t e ti#e "or t e de#anda'ilit* or $er"or#ance o" o'li(ation) Condition Can re"er to $a!t e-ent! un5no&n to t e $artie! Ma* or #a* not a$$en) Ma* cau!e t e ari!in( or ce!!ation o" t e o'li(ation)

117(. I) t4 obligation do s not )i6 a 3 riod# but )ro* its natur and t4 circu*stanc s it can b in) rr d t4at a 3 riod ,as int nd d# t4 courts *a! )i6 t4 duration t4 r o). T4 courts s4all also )i6 t4 duration o) t4 3 riod ,4 n it d 3 nds u3on t4 ,ill o) t4 d btor. In " r! cas # t4 courts s4all d t r*in suc4 3 riod as *a! und r t4 circu*stanc s 4a" b n 3robabl! cont *3lat d b! t4 3arti s. Onc )i6 d b! t4 courts# t4 3 riod cannot b c4ang d b! t4 *. JUDICIAL 9ERI0D $eriod de!i(nated '* t e court) C0NTRACTUAL 9ERI0D $eriod "i?ed '* t e $artie! in t eir contract) Court &ill "i? a $eriod< 4) W en no $eriod i! #entioned% 'ut it i! in"era'le "ro# t e nature and circu#!tance! o" t e o'li(ation t at a $eriod &a! intended '* t e $artie!) .) W en t e $eriod i! de$endent u$on t e &ill o" t e de'tor) I" t e o'li(ation doe! not !tate and intend a $eriod% t e court i! not aut ori6ed to "i? a $eriod) T e court #u!t "i? t e duration o" t e $eriod to $re-ent t e $o!!i'ilit* t at t e o'li(ation #a* ne-er 'e "ul"illed or to cure a de"ect in a contract & ere'* it i! #ade to de$end !olel* u$on t e &ill o" one o" t e $artie!)

RE=UISITES< 4) 1uture .) Certain% !ure to co#e :) 9 *!icall* or le(all* $o!!i'le 1172. In cas o) loss# d t rioration or i*3ro" * nt o) t4 t4ing b )or t4 arri"al o) t4 da! c rtain# t4 rul s in Articl 1157 s4all b obs r" d. 1175. An!t4ing 3aid or d li" r d b )or t4 arri"al o) t4 3 riod# t4 obligor b ing una,ar o) t4 3 riod or b li "ing t4at t4 obligation 4as b co* du and d *andabl # *a! b r co" r d# ,it4 t4 )ruits and int r sts. T e $a*#ent or deli-er* i! done 'e"ore t e arri-al o" t e $eriod)

C0NSE=UENCES< 4) I" e &a! not a&are o" t e $eriod or e 'elie-e! t at t e o'li(ation a! 'eco#e due and de#anda'le e can reco-er & at e $aid or deli-ered includin( "ruit! and intere!t!; .) I" e &a! a&are and e $aid -oluntaril* e cannot reco-er t e deli-er* #ade; it i! dee#ed a &ai-er o" t e 'ene"it o" t e ter# and t e o'li(ation i! con!idered alread* #atured) T e $re!u#$tion i! t at t e de'tor 5ne& t at t e de't &a! not *et due) Ce a! t e 'urden o" $ro-in( t at e &a! una&are o" t e $eriod)

Court cannot "i? t e $eriod< 4) I" t ere i! a $eriod a(reed u$on '* t e $artie! and it a! alread* la$!ed or e?$ired) .) 1ro# t e -er* #o#ent t e $artie! (i-e t eir acce$tance and con!ent to t e $eriod "i?ed '* t e court% it 'eco#e! a la& (o-ernin( t eir contract) 1175. T4 d btor s4all los " r! rig4t to *a9 us o) t4 3 riod< &1' @4 n a)t r t4 obligation 4as b n contract d# 4 b co* s insol" nt# unl ss 4 gi" s a guarant! or s curit! )or t4 d bt9a(e M

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

&.' @4 n 4 do s not )urnis4 to t4 cr ditor t4 guaranti s or s curiti s ,4ic4 4 4as 3ro*is d&/' @4 n b! 4is o,n acts 4 4as i*3air d said guaranti s or s curiti s a)t r t4 ir stablis4* nt# and ,4 n t4roug4 a )ortuitous " nt t4 ! disa33 ar# unl ss 4 i** diat l! gi" s n , on s 0uall! satis)actor!&2' @4 n t4 d btor "iolat s an! und rta9ing# in consid ration o) ,4ic4 t4 cr ditor agr d to t4 3 riod&5' @4 n t4 d btor att *3ts to abscond. e!ca$e T e $eriod i! di!re(arded and t e o'li(ation 'eco#e! $ure and i##ediatel* de#anda'le< I3IVA 4) W en de'tor 'eco#e! in!ol-ent; T e in!ol-enc* need not 'e judiciall* declared) It i! !u""icient t at de'tor could not $a* i! de't! due to lac5 o" #one* or "und!) W en t e de'tor doe! not "urni! (uarantie! or !ecuritie!; W en (uarantie! or !ecuritie! (i-en a-e 'een i#$aired or a-e di!a$$eared; I" !ecurit* &a! lo!t t rou( de'torB! "ault > i#$air#ent I" !ecurit* &a! lo!t t rou( "ortuitou! e-ent > di!a$$earance W en de'tor -iolate! an underta5in(; I" !uc underta5in( i! t e rea!on "or t e creditor to a(ree &it !uc $eriod) W en de'tor atte#$t! to a'!cond +e!ca$e,) Mere atte#$t to a'!cond i! !u""icient) It i! an indication o" 'ad "ait )

.) :)

0nce t e c oice a! 'een co##unicated to t e ot er $art*< 4) T e o'li(ation i! no& LIMITED onl* to t e 9RESTATI0N CC0SEN% &it all t e natural con!e7uence! "lo&in( t ere"ro#; .) T e c oice i! IRREV0CA2LE) T e $er"or#ance o" $re!tation &it out announcin( t e c oice to t e creditor i! N0T 2INDIN3) T e con!ent o" t e ot er $art* i! N0T RE=UIRED in #a5in( t e c oice t at &ill in e""ect "ru!trate t e clear intention o" t e la& and t e nature o" t e alternati-e o'li(ation) I" t ere i! dela* in t e #a5in( o" c oice $uni! t e one & o i! !u$$o!ed to e?erci!e t e ri( t o" c oice "or t e dela* e cau!ed court #a* order t e de'tor to #a5e a c oice% or creditor to #a5e t e c oice &it in certain $eriod% or court #a5e! t e c oice)

1.8.. T4 d btor s4all los t4 rig4t o) c4oic ,4 n a*ong t4 3r stations ,4 r b! 4 is alt rnati" l! bound# onl! on is 3racticabl . T ere 'ein( 'ut one $re!tation a-aila'le% t i! $re!tation 'eco#e! a !i#$le o'li(ation) 1.8/. I) t4roug4 t4 cr ditorDs acts t4 d btor cannot *a9 a c4oic according to t4 t r*s o) t4 obligation# t4 latt r *a! r scind t4 contract ,it4 da*ag s. 1. I" t e de'tor could not #a5e a c oice due to t e creditorB! act o" #a5in( t e $re!tation! i#$o!!i'le% de'tor #a* RESCIND t e contract &it da#a(e!)> re!ci!!ion ta5e! $lace at t e initiati-e o" t e de'tor) I" t e de'tor i! 'ein( $re-ented to c oo!e onl* a $articular $re!tation% and t ere are ot er! a-aila'le% e i! "ree to c oo!e "ro# t e#% a"ter noti"*in( t e creditor o" i! deci!ion)

;) E)

1177. A 3 rson alt rnati" l! bound b! di)) r nt 3r stations s4all co*3l t l! 3 r)or* on o) t4 *. T4 cr ditor cannot b co*3 ll d to r c i" 3art o) on and 3art o) t4 ot4 r und rta9ing. 02LI3ATI0NS WITC 9LURAL 9RESTATI0NS< 4) C0NJUNCTIVE8C0M90UND 02LI3ATI0N > an o'li(ation & ere t e de'tor a! to $er"or# ALL t e !e-eral $re!tation! in t e contract to e?tin(ui! t e o'li(ation) .) ALTERNATIVE 02LI3ATI0N an o'li(ation & ere t e de'tor i! re7uired to "ul"ill 0NLY 0NE o" t e !e-eral $re!tation! to e?tin(ui! t e o'li(ation) :) 1ACULTATIVE 02LI3ATI0N an o'li(ation & ere t e de'tor i! 'ound to $er"or# 0NLY 0NE $re!tation% &it a re!er-ed ri( t to c oo!e anot er $re!tation a! SU2STITUTE "or t e $rinci$al) 1.88. T4 rig4t o) c4oic b longs to t4 d btor# unl ss it 4as b n 63r ssl! grant d to t4 cr ditor. T4 d btor s4all 4a" no rig4t to c4oos t4os 3r stations ,4ic4 ar i*3ossibl # unla,)ul or ,4ic4 could not 4a" b n t4 obj ct o) t4 obligation. I#$lied (rant to t e creditor i! not allo&ed) I" it doe! not a$$ear on t e a(ree#ent a! to & o# a#on( t e# a! t e ri( t to c oo!e% it i! t e de'tor & o can c oo!e)

.)

1.82. T4 cr ditor s4all 4a" a rig4t to ind *nit! )or da*ag s ,4 n# t4roug4 t4 )ault o) t4 d btor# all t4 t4ings ,4ic4 ar alt rnati" l! t4 obj ct o) t4 obligation 4a" b n lost# or t4 co*3lianc o) t4 obligation 4as b co* i*3ossibl . T4 ind *nit! s4all b )i6 d ta9ing as a basis t4 "alu o) t4 last t4ing ,4ic4 disa33 ar d# or t4at o) t4 s r"ic ,4ic4 last b ca* i*3ossibl . Da*ag s ot4 r t4an t4 "alu o) t4 last t4ing or s r"ic *a! also b a,ard d. I" t e i#$o!!i'ilit* o" all t e o'ject! o" t e alternati-e o'li(ation i! cau!ed '* t e de'tor% t e creditor i! entitled to da#a(e!) I" !uc i#$o!!i'ilit* i! cau!ed '* a "ortuitou! e-ent% t e o'li(ation i! e?tin(ui! ed and t e de'tor i! relea!ed "ro# re!$on!i'ilit*% unle!! t e contrar* i! !ti$ulated '* t e $artie!) T e creditor cannot clai# "or da#a(e! i" t e de'tor can !till $er"or# t e re#ainin( $re!tation!) T e da#a(e! t at #a* 'e reco-ered i! 'a!ed on t e la!t t in( & ic di!a$$eared or t e !er-ice & ic 'eca#e i#$o!!i'le) T i! la!t one i! con-erted into a !i#$le o'li(ation)

1.81. T4 c4oic s4all 3roduc no )) ct 6c 3t )ro* t4 ti* it 4as b n co**unicat d. T e c oice ! all not $roduce an* le(al e""ect until it a! 'een dul* co##unicated to t e ot er $art*) It can 'e done in &ritin(% -er'all*% i#$liedl*% or an* une7ui-ocal #ean!)

1.85. @4 n t4 c4oic 4as b n 63r ssl! gi" n to t4 cr ditor# t4 obligation s4all c as to b alt rnati" )ro* t4 da! ,4 n t4 s l ction 4as b n co**unicat d to t4 d btor. ?ntil t4 n t4 r s3onsibilit! o) t4 d btor s4all b go" rn d b! t4 )ollo,ing rul s<
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OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

A) 2) C)

D)

onl* one t in( lo!t "ortuitou! e-ent creditor c oo!e! "ro# t e re#ainder de'tor deli-er! t e c oice to creditor; onl* one re#ain! de'tor deli-er! t e !a#e to t e creditor; onl* one t in( lo!t "ault o" t e de'tor 4) creditor #a* c oo!e an* one o" t e re#ainder!; .) creditor #a* c oo!e t e $rice or -alue o" t e one & ic &a! lo!t; :) #a* c oo!e 4 or . $lu! da#a(e! all t in(! lo!t "ault o" t e de'tor creditor #a* c oo!e t e $rice o" ANY0NE o" t e t in(!% &it da#a(e! i" &arranted)

/aren% /i#% N /en are !olidar* de'tor! o" /at rina in t e !u# o" OKDD) /at rina can de#and $a*#ent o" t e entire o'li(ation & en it 'eco#e! due% "ro# an* one o" t e de'tor! or "ro# all o" t e# at t e !a#e ti#e) I" /ennet $aid t e & ole OKDD to /at rina% e #a* clai# rei#'ur!e#ent "ro# /aren and /i#) .) Acti-e Solidarit* "ull $a*#ent to an* o" t e creditor! e?tin(ui! e! t e o'li(ation) T e creditor & o recei-ed t e entire a#ount &ill 'e lia'le to $a* t e corre!$ondin( ! are! o" i! co>creditor! in accordance &it t eir internal a(ree#ent) Lil* o&e! t e !u# o" 9;D%DDD to Alin( C olen(% 2o* Ta(a!% Mae Ta'a% and Doden( Adi5% & o are !olidar* creditor!) I" Lil* can $a* an*one o" t e#) I" Alin( C olen( recei-ed t e 9;D%DDD% ! e i! lia'le to $a* t e corre!$ondin( ! are! o" er co>creditor!)

T4 sa* rul s s4all b a33li d to obligations to do or not to do in cas on # so* or all o) t4 3r stations s4ould b co* i*3ossibl . T i! article a$$lie! onl* & en t e ri( t o" c oice a! 'een e?$re!!l* (ranted to t e creditor)

MIAED S0LIDARITY A) Solidar* De'tor!% Joint Creditor! O K%DDD)DD total de't D btors &Solidar!' Cr ditors &Foint' Aida $a*! O ;%EDD)DD Jo n P O ;%EDD)DD Lorna $a*! O ;%EDD)DD Mar! a P O ;%EDD)DD 1e 2) Joint De'tor!% Solidar* Creditor! O K%DDD)DD total de't D btors &Foint' Cr ditors &Solidar!' Aida +O :%DDD)DD, Jo n +can clai# "ro# de'tor!, Lorna +O :%DDD)DD, Mar! a +>!a#e>, 1e +O :%DDD)DD, 1.85. I) )ro* t4 la,# or t4 natur or t4 ,ording o) t4 obligations to ,4ic4 t4 3r c ding articl r ) rs t4 contrar! do s not a33 ar# t4 cr dit or d bt s4all b 3r su* d to b di"id d into as *an! s4ar s as t4 r ar cr ditors or d btors# t4 cr dits or d bts b ing consid r d distinct )ro* on anot4 r# subj ct to t4 Rul s o) Court go" rning t4 *ulti3licit! o) suits. W en t ere i! a concurrence o" !e-eral creditor! or o" !e-eral de'tor! in one and in t e !a#e o'li(ation% t ere i! a $re!u#$tion t at t e o'li(ation i! joint) Eac o" t e creditor! ! all 'e entitled to de#and onl* t e $a*#ent o" i! $ro$ortionate ! are o" t e credit) Eac o" t e de'tor! can 'e co#$elled to $a* onl* i! $ro$ortionate ! are o" t e de't) T e credit! or de't! ! all 'e con!idered di!tinct "ro# one anot er)

1.86. @4 n onl! on 3r station 4as b n agr d u3on# but t4 obligor *a! r nd r anot4 r in substitution# t4 obligation is call d )acultati" . T4 loss or d t rioration o) t4 t4ing int nd d as a substitut # t4roug4 t4 n glig nc o) t4 obligor# do s not r nd r 4i* liabl . But onc t4 substitution 4as b n *ad # t4 obligor is liabl )or t4 loss o) t4 substitut on account o) 4is d la!# n glig nc or )raud. + NOT% T;ISE I" lo!! or deterioration a$$ened 'e"ore !u'!titution i! #ade% o'li(or i! not lia'le; a"ter !u'!titution i! co##unicated% e i! lia'le "or lo!! +t rou( dela*% ne(li(ence or "raud,

1.8(. T4 concurr nc o) t,o or *or cr ditors or o) t,o or *or d btors in on and t4 sa* obligation do s not i*3l! t4at ac4 on o) t4 )or* r 4as a rig4t to d *and# or t4at ac4 on o) t4 latt r is bound to r nd r# ntir co*3lianc ,it4 t4 3r station. T4 r is a solidar! liabilit! onl! ,4 n t4 obligation 63r ssl! so stat s# or ,4 n t4 la, or t4 natur o) t4 obligation r 0uir s solidarit!. INDIVIDUAL 02LI3ATI0N one de'tor and one creditor C0LLECTIVE 02LI3ATI0N t&o or #ore de'tor! and t&o or #ore creditor! 4) J0INT entire o'li(ation i! to 'e $aid or $er"or#ed $ro$ortionatel* '* t e de'tor!; .) S0LIDARY eac one o" t e de'tor! are o'li(ed to $a* t e entire o'li(ation% eac one o" t e creditor! a! t e ri( t to de#and "ro# an* o" t e de'tor!% t e "ul"ill#ent o" t e entire o'li(ation; A) 9a!!i-e Solidarit* !olidarit* on t e $art o" t e DE2T0RS 2) Acti-e Solidarit* !olidarit* on t e $art o" t e CREDIT0RS) S0LIDARITY SC0ULD 2E EA9RESSED la&% !ti$ulation% nature o" o'li(ation) W en t e o'li(ation i! a#'i(uou!% it #u!t 'e con!idered a! joint o'li(ation) C0NSE=UENCES 01 S0LIDARITY< 4) 9a!!i-e Solidarit* "ull $a*#ent #ade '* an*one o" t e !olidar* de'tor! e?tin(ui! e! t e o'li(ation) T e one & o $aid can clai# rei#'ur!e#ent "ro# i! co> de'tor! a! re(ard! t eir corre!$ondin( ! are! in t e o'li(ation)

C0NSE=UENCES 01 J0INT 02LI3ATI0N< 4) Eac de'tor lia'le "or a $ro$ortionate $art o" t e entire de't; An((e% 2a'e!% C en(% N Dan( o&e 94DD to Eddie P ; de't! and 4 credit Eac o" t e# o&e Eddie 9.E Eddie cannot collect t e entire 94DD "ro# an* one o" t e#) .) Eac creditor entitled to a $ro$ortionate $art o" t e credit;
9a(e 4D

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

C a##* o&e! O4DD to Wa""le and Al#ond P 4 de't and . credit! Wa""le can onl* collect OED "ro# C a##*% Sa#e &it Al#ond

contract .) Nu#'er o" !u'ject! 8 $artie! :) E""ect o" 'reac o" o'li(ation Doe! not re7uire $luralit* o" $artie! 0'li(ation i! con-erted into #onetar* o'li(ation "or inde#nit* "or da#a(e! eac de'tor i! lia'le onl* "or i! $art in t e inde#nit*)

:)

De#and #ade '* one creditor u$on one de'tor $roduce! t e e""ect! o" de"ault onl* a! 'et&een t e#% 'ut not &it re!$ect to t e ot er!; Eddie de#anded $a*#ent "ro# An((e; An((e &a! in de"ault) T i! doe! not #ean t at t e ot er! are in de"ault too 'ecau!e Eddie did not de#and "ro# t e#)

$artie! o" t e o'li(ation +& o i! lia'le, Re7uire! $luralit* o" $artie! T e lia'ilit*% e-en i" con-erted into inde#nit* "or da#a(e!% re#ain! !olidar*)

Note t i! oneR
1.11. Solidarit! *a! 6ist alt4oug4 t4 cr ditors and t4 d btors *a! not b bound in t4 sa* *ann r and b! t4 sa* 3 riods and conditions. T e !olidarit* o" t e de'tor! i! not a""ected e-en i" di""erent ter#! and condition! are #ade a$$lica'le to t e#) En"orce#ent o" t e ter#! and condition! #a* 'e #ade at di""erent ti#e!) T e o'li(ation! & ic a-e #atured can 'e en"orced & ile t o!e !till undue &ill a-e to 'e a&aited) En"orce#ent can 'e #ade a(ain!t an* one o" t e !olidar* de'tor! alt ou( it can a$$en t at a $articular o'li(ation c ar(ea'le to a $articular de'tor i! not *et due) Ce &ill 'e an!&era'le "or all t e $re!tation! & ic "all due alt ou( c ar(ea'le to t e ot er co>de'tor!)

;)

E)

T e interru$tion o" $re!cri$tion cau!ed '* t e de#and #ade '* one creditor u$on one de'tor &ill not 'ene"it t e co>creditor!; Wa""le e?tended t e $eriod in & ic C a##* ! ould a-e $aid er de't to er) T i! doe! not #ean t at t e !a#e e?ten!ion a$$lie! to C a##*B! de't to Al#ond) T e in!ol-enc* o" one de'tor &ill not increa!e t e lia'ilit* o" i! co>de'tor!% nor &ill it allo& a creditor to de#and an*t in( "ro# t e co>creditor!) I" Joel and Te!! are de'tor! o" Rene "or 94%DDD%DDD)DD and Joel 'eco#e! in!ol-ent% t e lia'ilit* o" Te!! &ill onl* 'e 9EDD%DDD)DD re$re!entin( er $ro$ortional ! are o" Q in t e & ole o'li(ation)

1.87. I) t4 di"ision is i*3ossibl # t4 rig4t o) t4 cr ditors *a! b 3r judic d onl! b! t4 ir coll cti" acts# and t4 d bt can b n)orc d onl! b! 3roc ding against all t4 d btors. I) on o) t4 latt r s4ould b insol" nt# t4 ot4 rs s4all not b liabl )or 4is s4ar . J0INT INDIVISI2LE 02LI3ATI0N an o'li(ation & ere !olidarit* i! not $ro-ided and t e $re!tation or o'ject i! not !u!ce$ti'le o" di-i!ion; it! "ul"ill#ent re7uire! t e concurrence o" all de'tor!% & ile doin( eac oneB! $art!) 2a'*ca5e! and 2a'*an(el jointl* o'li(ed t e#!el-e! to deli-er a 'rand ne& To*ota 1ortuner &ort 9 4%EDD%DDD)DD to Su$er#an) T e o'ject% a -e icle% i! indi-i!i'le) T e* #u!t deli-er t e t in( jointl*) In ca!e o" 'reac % t e o'li(ation i! con-erted into #onetar* o'li(ation "or inde#nit* "or da#a(e!) 2a'*ca5e! and 2a'*an(el &ill 'e lia'le onl* "or 9 LED%DDD)DD eac ) 1.18. T4 indi"isibilit! o) an obligation do s not n c ssaril! gi" ris to solidarit!. Nor do s solidarit! o) its l) i*3l! indi"isibilit!. Solidarit* i! e?$re!!ed in t e !ti$ulation! o" t e $art*% la& (o-ernin( t e o'li(ation% or t e nature o" t e o'li(ation)

2onnier% 3lenn% and Arnel (ot a loan o" O4ED "ro# Je"") T e* !i(ned a $ro#i!!or* note !olidaril* 'indin( t e#!el-e! to $a* Je"" under t e "ollo&in( ter#!< 2onnier &ill $a* OED &it :S on Dece#'er :D% .DDG 3lenn &ill $a* OED &it ;S on Dece#'er :D% .DDL Arnel &ill $a* OED &it ES on Dece#'er :D% .DDM 0n Dece#'er :4% .DDG% Je"" can collect i! OED &it :S "ro# an* one o" t e de'tor!% 'ut not t e & ole O4ED 'ecau!e it i! not *et entirel* due) T e #aturit* o" t e ot er a#ount! ! ould !till 'e a&aited) I" #aturit* co#e!% Je"" can collect "ro# an* o" t e de'tor!% 'ecau!e t e* are e?$re!!l* !olidar* in lia'ilitie!% and not a""ected '* t e !econdar* !ti$ulation!) 1.1.. %ac4 on o) t4 solidar! cr ditors *a! do ,4at " r *a! b us )ul to t4 ot4 rs# but not an!t4ing ,4ic4 *a! b 3r judicial to t4 latt r. E-er* !olidar* creditor i! 'ene"ited '* t e u!e"ul act! o" an* one o" t e#) I" a !olidar* creditor $er"or#! an act & ic i! not "air to i! co>creditor!% t e act #a* a-e -alid le(al e""ect! or t e o'li(ation o" t e de'tor due to t e# #a* 'e e?tin(ui! ed% 'ut t e $er"or#in( creditor ! all 'e lia'le to i! co>creditor!)

INDIVISI2LE 02LI3ATI0N an o'li(ation & ere t e $re!tation or o'ject to 'e deli-ered cannot 'e $er"or#ed '* $art! &it out alterin( it! e!!ence or !u'!tance) 2a!i! 4) Nature Indi-i!i'ilit* Re"er! to t e $re!tation o" t e Solidarit* Re"er! to t e tie e?i!tin( 'et&een

1.1/. A solidar! cr ditor cannot assign 4is rig4ts ,it4out t4 cons nt o) t4 ot4 rs. A!!i(n tran!"er o" ri( t T e a!!i(nee doe! not 'eco#e a !olidar* creditor% and an* $a*#ent #ade u$on i# '* t e de'tor doe! not e?tin(ui! t e o'li(ation) Ce i! con!idered a
9a(e 44

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

STRAN3ER% and i! act! are not 'indin( to t e !olidarit*) 1.12. T4 d btor *a! 3a! an! on o) t4 solidar! cr ditors- but i) an! d *and# judicial or 6trajudicial# 4as b n *ad b! on o) t4 *# 3a!* nt s4ould b *ad to 4i*. T e de'tor can $a* an* one o" t e !olidar* creditor!) Suc $a*#ent & en acce$ted '* an* o" t e !olidar* creditor! &ill e?tin(ui! t e o'li(ation) To a-oid con"u!ion on t e $a*#ent o" t e o'li(ation% t e de'tor i! re7uired to $a* onl* to t e de#andin( creditor and t at $a*#ent i! !u""icient to e""ect t e e?tin(ui! #ent o" t e o'li(ation) In ca!e t&o or #ore de#and! #ade '* t e ot er creditor!% t e "ir!t de#and #u!t 'e (i-en $riorit*)

against t4 ot4 rs# so long as t4 d bt 4as not b coll ct d.

n )ull!

W en t ere i! $a!!i-e !olidarit*% t e creditor can $roceed a(ain!t< 4) An* o" t e !olidar* de'tor!; .) So#e o" t e !olidar* de'tor!; :) All o" t e !olidar* de'tor!% !i#ultaneou!l*)

E?trajudicial de#and! > "ir!t de#and ! all not $re-ent !u'!e7uent de#and! on t e ot er co>de'tor!% i" co>de'tor "ir!t to a-e 'een re7uired to "ul"ill o'li(ation did not act on it) 1.1(. :a!* nt *ad b! on o) t4 solidar! d btors 6tinguis4 s t4 obligation. I) t,o or *or solidar! d btors o)) r to 3a!# t4 cr ditor *a! c4oos ,4ic4 o)) r to acc 3t. ; ,4o *ad t4 3a!* nt *a! clai* )ro* 4is co1d btors onl! t4 s4ar ,4ic4 corr s3onds to ac4# ,it4 t4 int r st )or t4 3a!* nt alr ad! *ad . I) t4 3a!* nt is *ad b )or t4 d bt is du # no int r st )or t4 int r" ning 3 riod *a! b d *and d. @4 n on o) t4 solidar! d btors cannot# b caus o) 4is insol" nc!# r i*burs 4is s4ar to t4 d btor 3a!ing t4 obligation# suc4 s4ar s4all b born b! all 4is co1d btors# in 3ro3ortion to t4 d bt o) ac4. 9a*#ent con!i!t! in t e deli-er* o" t e t in( or t e rendition +renderin(, o" t e !er-ice & i! i! t e o'ject o" t e o'li(ation) Intere!t co#$en!ation "or t e u!e o" 'orro&ed #one* 9artial $a*#ent t e !olidar* de'tor & o #ade t e $artial $a*#ent i! entitle! to 'e rei#'ur!ed onl* "or !uc a#ount o" #one* & ic e ad $aid and & ic e?ceed! i! o&n ! are in t e o'li(ation) I" one o" t e de'tor! i! in!ol-ent and could not $a* i! ! are in t e o'li(ation% all !olidar* de'tor! includin( t e $a*in( de'tor ! all ! are $ro$ortionatel* in t e !ettle#ent o" t e corre!$ondin( ! are o" t e in!ol-ent de'tor) TIn ! ort% i! co> de'tor! &ill !a-e i! a!!)U 1.15. :a!* nt b! a solidar! d btor s4all not ntitl 4i* to r i*burs * nt )ro* 4is co1d btors i) suc4 3a!* nt is *ad a)t r t4 obligation 4as 3r scrib d or b co* ill gal. + not t4isEE No rei#'ur!e#ent i"< 4) 0'li(ation 9RESCRI2ES T e creditor did not #a5e an* de#and "or #ore t an 4D *ear!) .) 0'li(ation 'eco#e! ILLE3AL La& a! 'een $a!!ed% #a5in( !uc $re!tation ille(al) 1.17. T4 r *ission *ad b! t4 cr ditor o) t4 s4ar ,4ic4 a)) cts on o) t4 solidar! d btors do s not r l as t4 latt r )ro* 4is r s3onsibilit! to,ards t4 co1d btors# in cas t4 d bt 4ad b n totall! 3aid b! an!on o) t4 * b )or t4 r *ission ,as )) ct d. An* 'elated +dela*ed, re#i!!ion '* t e creditor o" t e ! are o" an* o" t e de'tor a! no e""ect on t e internal relation! i$ o" t e co>de'tor!) Aaron% Carlo% and A(! !olidaril* o&e Neil 94%EDD)DD) Carlo $aid t e entire o'li(ation) A"ter & ic % Neil re#itted t e ! are

1.15. No"ation# co*3 nsation# con)usion or r *ission o) t4 d bt# *ad b! an! o) t4 solidar! cr ditors or ,it4 an! o) t4 solidar! d btors# s4all 6tinguis4 t4 obligation# ,it4out 3r judic to t4 3ro"isions o) Articl 1.17. T4 cr ditor ,4o *a! 4a" 6 cut d an! o) t4 s acts# as , ll as 4 ,4o coll cts t4 d bt# s4all b liabl to t4 ot4 rs )or t4 s4ar in t4 obligation corr s3onding to t4 *. N0VATI0N o'li(ation! are #odi"ied '*< 4) C an(in( t eir o'ject or $rinci$al condition!; .) Su'!titutin( t e $er!on o" t e de'tor; and :) Su'ro(atin( +$lacin(, a t ird $er!on in t e ri( t! o" t e creditor) C0M9ENSATI0N 0R 011SETTIN3 ta5e! $lace & en t&o $er!on!% in t eir o&n ri( t% 'eco#e creditor! and de'tor! o" eac ot er In(rid 'orro&ed 94DD "ro# Claudette) Claudette 'orro&ed 9LE "ro# In(rid) In(ridB! o'li(ation to Claudette i! no& 9.E onl*% 'ecau!e t e ori(inal o'li(ation &a! o""!et '* ClaudetteB! !u$$o!ed>to>'e o'li(ation to In(rid) C0N1USI0N 0R MER3ER 01 RI3CTS ta5e! $lace & en t e c aracter! o" creditor and de'tor are #er(ed in t e !a#e $er!on) Ian $a*! i! de't to Jo n &it a c ec5 $a*a'le to Ica! J) Jo n $aid i! de't to Jere#ia &it t e !a#e c ec5) Jere#ia $aid i! de't to Ian% &it t e !a#e c ec5 Ian i!!ued to Jo n) Ian 'eco#e! $aid '* i! o&n c ec5) Ce 'eco#e! t e de'tor and t e creditor o" i#!el" at t e !a#e ti#e) REMISSI0N t e (ratuitou! a'andon#ent '* t e creditor o" i! ri( t; acce$tance o" t e o'li(or i! nece!!ar*) T e!e ; #ode! o" e?tin(ui! in( o'li(ation! are act! $rejudicial to t e ot er !olidar* co>creditor! 'ecau!e t e!e a-e t e e""ect o" e?tin(ui! in( t e de't or o'li(ation & ic i! due to all o" t e#) T e onl* recour!e o" t e co>creditor! i! to let t e one & o e?ecuted an* o" t o!e act! 'e lia'le "or t e ! are! corre!$ondin( to all i! co>creditor! +in t eir internal a(ree#ent,)

1.16. T4 cr ditor *a! 3roc d against an! on o) t4 solidar! d btors or so* or all o) t4 * si*ultan ousl!. T4 d *and *ad against on o) t4 * s4all not b an obstacl to t4os ,4ic4 *a! subs 0u ntl! b dir ct d

9a(e 4.

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

o" A(!) Carlo can collect 9EDD)DD eac "ro# Aaron and A(! e-en i" t e ! are o" A(! in t e o'li(ation ad 'een re#itted) A"ter t e $rior $a*#ent o" t e entire o'li(ation% t ere i! not in( to re#it 'ecau!e t e o'li(ation ad 'een e?tin(ui! ed)

1../. T4 di"isibilit! or indi"isibilit! o) t4 t4ings t4at ar t4 obj ct o) obligations in ,4ic4 t4 r is onl! on d btor and onl! on cr ditor do s not alt r or *odi)! t4 3ro"isions o) C4a3t r . o) t4is Titl . DIVISI2ILITY re"er! to t e !u!ce$ti'ilit* o" an o'li(ation to 'e $er"or#ed $artiall*) 0'li(ation to deli-er 4DD !ac5! o" rice or a $articular t*$e INDIVISI2ILITY re"er! to t e non>!u!ce$ti'ilit* o" an o'li(ation to $artial $er"or#ance) 0'li(ation to deli-er a $articular co#$uter !et I" a t in( could 'e di-ided into $art! and a! di-ided% it! -alue i! i#$aired di!$ro$ortionatel*% t at t in( i! INDIVISI2LE) 1..2. A joint indi"isibl obligation gi" s ris to ind *nit! )or da*ag s )ro* t4 ti* an!on o) t4 d btors do s not co*3l! ,it4 4is und rta9ing. T4 d btors ,4o *a! 4a" b n r ad! to )ul)ill t4 ir 3ro*is s s4all not contribut to t4 ind *nit! b !ond t4 corr s3onding 3ortion o) t4 3ric o) t4 t4ing or o) t4 "alu o) t4 s r"ic in ,4ic4 t4 obligation consists. J0INT INDIVISI2LE 02LI3ATI0N t e o'ject i! indi-i!i'le 'ut t e lia'ilit* o" t e $artie! i! joint) T e un"ul"illed underta5in( +dut*, i! con-erted into a #onetar* o'li(ation & ic i! no di-i!i'le) T e (uilt* de'tor i! lia'le "or da#a(e!)

1..8. T4 r *ission o) t4 ,4ol obligation# obtain d b! on o) t4 solidar! d btors# do s not ntitl 4i* to r i*burs * nt )ro* 4is co1d btors. T ere i! not in( to 'e rei#'ur!ed 'ecau!e e did not !$end an* #one*% t e re#i!!ion 'ein( a (ratuitou! act)

1..1. I) t4 t4ing 4as b n lost or i) t4 3r station 4as b co* i*3ossibl ,it4out t4 )ault o) t4 solidar! d btors# t4 obligation s4all b 6tinguis4 d. I) t4 r ,as )ault on t4 3art o) an! on o) t4 *# all s4all b r s3onsibl to t4 cr ditor# )or t4 3ric and t4 3a!* nt o) da*ag s and int r st &::I'# ,it4out 3r judic to t4 ir action against t4 guilt! or n glig nt d btor. I) t4roug4 a )ortuitous " nt# t4 t4ing is lost or t4 3 r)or*anc 4as b co* i*3ossibl a)t r on o) t4 solidar! d btors 4as incurr d in d la! t4roug4 t4 judicial or 6trajudicial d *and u3on 4i* b! t4 cr ditor# t4 3ro"isions o) t4 3r c ding 3aragra34 s4all a33l!. Lo!! o" t e t in( or i#$o!!i'ilit* o" $re!tation 4) N0 1AULT !olidar* de'tor! o'li(ation i! e?tin(ui! ed .) 1AULT an* one o" t e# all are lia'le 'ecau!e o" t eir #utual a(enc* :) 10RTUIT0US EVENT dela* on t e $art o" t e de'tor! all &ill 'e lia'le I" t e t in( due &a! not lo!t% 'ut t ere i! #erel* a dela*% "raud or ne(li(ence on t e $art o" one o" t e !olidar* de'tor!% all +includin( t e innocent, de'tor! &ill ! are in t e $a*#ent o" t e 9RINCI9AL $re!tation) T e da#a(e! and intere!t i#$o!ed &ill 'e 'orne '* t e (uilt* de'tor) 0'li(ation to deli-er i! con-erted into an o'li(ation to $a* inde#nit* & en t ere i! lo!! or i#$o!!i'ilit* o" $er"or#ance)

1..5. Gor t4 3ur3os s o) t4 3r c ding articl s# obligations to gi" d )init t4ings and t4os ,4ic4 ar not susc 3tibl o) 3artial 3 r)or*anc s4all b d * d to b indi"isibl . @4 n t4 obligation 4as )or its obj ct t4 6 cution o) a c rtain nu*b r o) da!s o) ,or9# t4 acco*3lis4* nt o) ,or9 b! * trical units# or analogous t4ings ,4ic4 b! t4 ir natur ar susc 3tibl o) 3artial 3 r)or*anc # it s4all b di"isibl . ;o, " r# " n t4oug4 t4 obj ct or s r"ic *a! b 34!sicall! di"isibl # an obligation is indi"isibl i) so 3ro"id d b! la, or int nd d b! t4 3arti s. In obligations not to do# di"isibilit! or indi"isibilit! s4all b d t r*in d b! t4 c4aract r o) t4 3r station in ac4 3articular cas . T e "ollo&in( are con!idered INDIVISI2LE o'li(ation!< 4) 0'li(ation to (i-e de"inite t in(! .) 0'li(ation! & ic are not !u!ce$ti'le o" $artial $er"or#ance :) E-en t ou( t e o'ject or !er-ice #a* 'e $ *!icall* di-i!i'le% it i! indi-i!i'le i"< a) t e la& !o $ro-ide! ') & en t e $artie! intended it to 'e indi-i!i'le T e "ollo&in( o'li(ation! are dee#ed DIVISI2LE< 4) W en t e o'ject o" t e o'li(ation i! t e e?ecution o" a certain nu#'er o" da*! o" &or5 .) W en t e o'ject o" t e o'li(ation i! t e acco#$li! #ent o" &or5 #ea!ured in unit! :) W en t e o'ject o" t e o'li(ation i! !u!ce$ti'le o" $artial co#$liance ;) W en t e o'ject o" t e o'li(ation i! !uc t at t e de'tor i! re7uired to $a* in in!tall#ent!

1.... A solidar! d btor *a!# in actions )il d b! t4 cr ditor# a"ail 4i*s l) o) all d ) ns s ,4ic4 ar d ri" d )ro* t4 natur o) t4 obligation and o) t4os ,4ic4 ar 3 rsonal to 4i*# or 3 rtain to 4is o,n s4ar . @it4 r s3 ct to t4os ,4ic4 3 rsonall! b long to t4 ot4 rs# 4 *a! a"ail 4i*s l) t4 r o) onl! as r gards t4at 3art o) t4 d bt )or ,4ic4 t4 latt r ar r s3onsibl . DE1ENSES 01 A S0LIDARY DE2T0R< 4) .) :) De"en!e ari!in( "ro# t e nature o" t e o'li(ation !uc a! $a*#ent% $re!cri$tion% re#i!!ion% !tatute o" "raud!% $re!ence o" -ice! o" con!ent% etc) De"en!e! & ic are $er!onal to i# or & ic $ertain! to i! o&n ! are alone !uc a! #inorit*% in!anit* and ot er! $urel* $er!onal to i#) De"en!e! $er!onal to t e ot er !olidar* creditor! 'ut onl* a! re(ard! t at $art o" t e de't "or & ic t e ot er creditor! are lia'le)

9a(e 4:

OBLIGATIONS AND CONTRACTS MIDTERM REVIEWER

I" t e contract i! di-i!i'le% and a $art o" it i! ille(al% t e ille(al $art i! -oid% and t e re!t ! all 'e -alid and en"orcea'le) I" t e contract i! indi-i!i'le% and a $art o" it i! ille(al% t e entire contract i! -oid) 9artial $er"or#ance o" an indi-i!i'le o'li(ation i! tanta#ount to non>$er"or#ance)

.)

& en t e creditor a! de#anded "ul"ill#ent o" t e o'li(ation 'ut cannot 'e "ul"illed due to t e a) de'torB! "ault creditor #a* de#and "or $enalt* ') creditorB! "ault e cannot clai# t e $enalt* c) "ortuitou! e-ent $rinci$al o'li(ation and $enalt* are e?tin(ui! ed

1..6. In obligations ,it4 a 3 nal claus # t4 3 nalt! s4all substitut t4 ind *nit! )or da*ag s and t4 3a!* nt o) int r sts in cas o) nonco*3lianc # i) t4 r is no sti3ulation to t4 contrar!. N " rt4 l ss# da*ag s s4all b 3aid i) t4 obligor r )us s to 3a! t4 3 nalt! or is guilt! o) )raud in t4 )ul)ill* nt o) t4 obligation. T4 3 nalt! *a! b n)orc d onl! ,4 n it is d *andabl in accordanc ,it4 t4 3ro"isions o) t4is Cod . 9ENALTY CLAUSE T i! i! an acce!!or* o'li(ation attac ed to t e $rinci$al o'li(ation% & ic i#$o!e! an additional lia'ilit* in ca!e o" 'reac o" t e $rinci$al o'li(ation) It $u! e! t e de'tor to $er"or# i! o'li(ation "ait "ull* and &it out dela* &it in t e $eriod a(reed u$on% or el!e% e !u""er! a "i?ed ci-il $enalt* &it out need o" $ro-in( t e da#a(e! o" t e ot er $art*) T e $enalt* i#$o!a'le i! a !u'!titute "or t e inde#nit* "or< a) da#a(e! ') $a*#ent o" intere!t in ca!e o" 'reac o" o'li(ation unle!! t e contrar* i! !ti$ulatedR EACE9TI0NS additional da#a(e! #a* 'e reco-ered "ro# t e "ollo&in( act!< 4) I" t e de'tor re"u!e! to $a* t e $enalt* .) I" t e de'tor i! (uilt* o" "raud in t e "ul"ill#ent o" t e o'li(ation :) I" t ere i! e?$re!! !ti$ulation t at t e ot er da#a(e! or intere!t! are de#anda'le to t e $enalt* in t e $enal clau!e Mel-in o'li(ed i#!el" to $roctor t e e?a# in Con!titutional La& to 4LL2% and in ca!e e "ail!% e &ill $a* 94D%DDD) Mel-in a! no c oice 'ut to $a* 94D%DDD i" e "ail! to !u$er-i!e !aid e?a# re!ult!) 1..(. T4 d btor cannot 6 *3t 4i*s l) )ro* t4 3 r)or*anc o) t4 obligation b! 3a!ing t4 3 nalt!# sa" in t4 cas ,4 r t4is rig4t 4as b n 63r ssl! r s r" d )or 4i*. N it4 r can t4 cr ditor d *and t4 )ul)ill* nt o) t4 obligation and t4 satis)action o) t4 3 nalt! at t4 sa* ti* # unl ss t4is rig4t 4as b n cl arl! grant d 4i*. ;o, " r# i) a)t r t4 cr ditor 4as d cid d to r 0uir t4 )ul)ill* nt o) t4 obligation# t4 3 r)or*anc t4 r o) s4ould b co* i*3ossibl ,it4out 4is )ault# t4 3 nalt! *a! b n)orc d. A de'tor cannot e-ade "ro# $a*#ent o" i! $rinci$al o'li(ation '* c oo!in( to $a* t e $enalt* !ti$ulated% e?ce$t & en t e de'tor i! EA9RESSLY (ranted &it t e ri( t to !u'!titute t e $enalt* "or t e $rinci$al o'li(ation) an o'li(ation &it $enalt* clau!e cannot 'e turned to "acultati-e o'li(ation unle!! e?$re!!l* !ti$ulated in t e contract) T e creditor cannot de#and t e !ti$ulated "ul"ill#ent o" t e $rinci$al o'li(ation and t e $enalt* at t e !a#e ti#e% e?ce$t 4) & en t e creditor &a! clearl* (i-en t e ri( t to en"orce 'ot t e $rinci$al o'li(ation and $enalt*;

1..5. :roo) o) actual da*ag s su)) r d b! t4 cr ditor is not n c ssar! in ord r t4at t4 3 nalt! *a! b d *and d. A! lon( a! t e a(ree#ent or contract i! 'reac ed) T e #ere non>"ul"ill#ent o" t e $rinci$al o'li(ation entitle! t e creditor to t e $enalt* !ti$ulated) T e $ur$o!e o" t e $enalt* clau!e i! $reci!el* to a-oid $ro-in( da#a(e!)

1..7. T4 judg s4all 0uitabl! r duc t4 3 nalt! ,4 n t4 3rinci3al obligation 4as b n 3artl! or irr gularl! co*3li d ,it4 b! t4 d btor. %" n i) t4 r 4as b n no 3 r)or*anc # t4 3 nalt! *a! also b r duc d b! t4 courts i) it is ini0uitous or unconscionabl . JUDICIAL REDUCTI0N 01 9ENALTY 4) 9rinci$al o'li(ation $artl* co#$lied &it '* t e de'tor +'ut not in indi-i!i'le o'li(ation% 'ecau!e it i! tanta#ount to non>co#$liance, .) 9rinci$al o'li(ation co#$lied not in accordance &it t e tenor o" t e a(ree#ent :) 9enalt* ini7uitou! or uncon!ciona'le Jud(eB! $o&er to reduce $enaltie! are li#ited to $ri-ate contract!)

INI=UIT0US 0R UNC0NSCI0NA2LE & en it i! re-oltin( to t e con!cience or co##on !en!e; (ro!!l* di!$ro$ortionate to t e da#a(e! !u""ered) 9ENALTY N0T EN10RCEA2LE< 4) I#$o!!i'le $er"or#ance o" $rinci$al o'li(ation due to "ortuitou! e-ent! .) Creditor $re-ented t e de'tor "ro# "ul"illin( t e o'li(ation :) 9enalt* i! contrar* to (ood #oral! or (ood cu!to#! ;) 2ot $artie! are (uilt* o" 'reac o" contract E) 2reac o" contract '* t e creditor G) None o" t e $artie! co##itted an* &ill"ul or cul$a'le -iolation o" t e a(ree#ent 1./8. T4 nullit! o) t4 3 nal claus do s not carr! ,it4 it t4at o) t4 3rinci3al obligation. T4 nullit! o) t4 3rinci3al obligation carri s ,it4 it t4at o) t4 3 nal claus . 2ecau!e t e $enal clau!e i! onl* an acce!!or* to t e $rinci$al o'li(ation% it cannot e?i!t alone) I" t e $enal clau!e i! -oid% t e $rinci$al o'li(ation re#ain! en"orcea'le)

9a(e 4;