1.

If the thing due is destroyed by a fortuitous event, will the obligor be

liable?
o No, in general rule If the reason for the non-compliance in the
obligation is a fortuitous event, the obligor is exempted from liability
whatsoever. Except where such liability is expressly specified by law;
where it is declared by stipulation of the parties; where the nature
of the obligation requires the assumption of risk.

2. What type of obligation is present where there are several creditors but
one of them can demand the fulfillment of the entire obligation?
o This is active solidary obligation. one of the solidary creditors can
demand the payment or performance of the entire obligation from
the debtor or any of the debtors.
o Passive solidarity – Solidarity on the part of the debtors where any
one of them can be made liable for the fulfillment of the entire
obligation.

3. If through the creditor’s acts, the debtor cannot make a choice among
the alternative objects of the obligation, what will happen to the
obligation?
o Debtor can rescind the contract. When the debtor's right of choice
is rendered ineffective through the creditor's fault, the only possible
remedy for the debtor is to bring an action for the rescission of the
contract with damages. The debtor still needs to pay the debt.
Creditor, in turn, must pay debtor the value of the item destroyed,
plus damages.

4. When the choice has been expressly given to the creditor, what will
happen to the alternative obligation?
o When the choice has been expressly given to the creditor, the
alternative obligation ceases to be alternative from the day the
selection is communicated to the debtor. This means that the
obligation becomes a simple obligation, where the debtor is now
required to fulfill only the specific prestation chosen by the creditor.
The debtor can no longer choose among the alternatives, and if
the selected prestation becomes lost or impossible due to the
debtor's fault, they are liable for that specific obligation.
5. Is it true that in an obligation with a penal clause, the creditor can no
longer collect for damages?
o In general rule YES, creditor cannot collect for damages in addition to
the penalty, as the stipulated penalty serves as a substitute for damages.
Penalty is fixed by the contracting parties as a substitute for damages in
case of breach of the obligation. However, there are exceptions to this
rule; 1) When there is a stipulation to the contrary; 2) When the obligor is
sued for refusal to pay the agreed penalty; 3) When the obligor is guilty
of fraud.

6. What if the object to be delivered is partially destroyed, will it be

considered a loss?
o It depends. If the object to be delivered is partially destroyed, it will
be considered a loss only if the court determines that the
significance of the partial loss is tantamount to a complete loss. If
the loss is substantial, the obligation may be extinguished; if not, the
obligation remains enforceable.

7. Carlos sold a rare book to Anna, agreeing to deliver it to her in pristine

condition. Before the delivery date, Carlos carefully wrapped the book to
ensure it would not be damaged in transit. However, Carlos also knew that
the book needed to be stored in a dry place to avoid any moisture
damage.
o Every person obliged to give something is also obliged to take of it
with the proper diligence of a good father or family, unless the law
or the stipulation of the parties requires another standard of care.

8. Liza purchased a high-end camera from Mark, which came with a variety
of accessories, but the accessories were not delivered.
o If the obligor fails to do that which he has obligated himself to do,
the obligee can have the obligation performed or executed at the
expense of the former, and demand for damages by reason of
breach.
9. Is it true that demand from the creditor is always necessary to make the
obligation demandable?
o In general rule, yes, demand from the creditor is necessary to make
the obligation demandable. Default begins when the creditor
demands performance of the obligation, whether through judicial
or extra-judicial means. Without such a demand, the effects of
default do not arise, meaning the obligor is not held liable for
damages until a demand is made. The initiation of a lawsuit is
considered a sufficient demand. However, it's important to note
that Article 1169 applies to obligations involving actions other than
the payment of money. For obligations to pay money, Article 2209
states that if the debtor is delayed, the compensation for damages
is represented by interest, rather than traditional damages, with the
legal interest being six percent per annum if no other rate is
specified.
o Exemption:
- Clear Rules: When the obligation or the law expressly so
declare; or
- Timing is Key: When from the nature and the circumstances of
the obligation it appears that the designation of the time
when the thing is to be delivered or the service is to be
rendered was a controlling motive for the establishment of
the contract; or
- Useless Demand: When demand would be useless, as when
the obligor has rendered it beyond his power to perform.

10. What type of diligence is not presumed under the law?

• Extraordinary diligence is not presumed under the law. Ordinary diligence

is the default standard unless a higher level of care is required by law or
contract (Art. 1173, Civil Code).

11. If the debtor paid the obligation knowing that the period has not yet
come, can the debtor recover the payment?

• No. There can be no right of recovery if the obligor delivers the thing
voluntarily or with knowledge of the period or term or the fact that the
obligation has not yet become due and demandable. The payment
cannot be recovered when the debtor voluntarily paid his debt with his
knowledge of the period. As if the debtor tacitly waived the term of the
payment. As a result, obligation is already matured. But if obligor is
unaware, he may recover what he has paid or delivered with fruits and
interests.
12. Julia lent Paul 5,000 with no specific terms on when the repayment should
be made.

• The creditor cannot demand its fulfilment. Because an action for the court
to fix the period has yet to be filed. In the meantime, no one can ask for
the fulfillment of the obligation after the court has fixed the period for its
compliance (Vda de Ungson vs. Lopez, L-10180, March 10, 1954). It must
be filed within ten (10) years, otherwise, it would prescribe

13. What is the consequence if the obligor prevented the happening of the
condition?

• The condition shall be deemed fulfilled when the obligor voluntarily

prevents [the obligee from] its fulfillment [of the condition] ART. 1186 -
applicable only to Suspensive conditions and not to Resolutory conditions.
The prevention must have been done for the precise purpose of
preventing the condition.
• 1. I’ll buy your land for P10 million if you pass the last bar examinations.
(This is suspensive for the results will be awaited).
• 2. I’ll give you my land now, but should you fail in the last bar
examinations, your ownership will cease and it will be mine again. (This is
resolutory because it ends upon failure.).

14. Carlos owes Maria a debt and has agreed to fulfill it by delivering 100
kilograms of rice or 50 liters of olive oil. Maria prefers olive oil.

• The right of choice belongs to the debtor, unless it has been expressly
granted to the creditor. The debtor shall have no right to choose between
prestations which are impossible, unlawful or which could not have been
the object of the obligation.

15. Who will benefit from the improvement of the thing due?

• If the thing is improved by its nature, or by the time, the improvement shall
inure to the benefit of the creditor.

16. Will the obligation to render some service be extinguished through loss of
the thing due?

• Yes, provided that the requisites are present; the thing which is lost is
determinate; the thing is lost without any fault of the debtor; and, the
thing is lost before the debtor has incurred in delay.

17. What is the correct meaning of Merger or Confusion?

• Merger or Confusion refers to the situation where the characteristics of
debtor and creditor are merged in one person, extinguishing the
obligation (Art. 1275, Civil Code).

18. If you are a debtor, and you have several debts from several creditors,
and you are under insolvency, how will you pay your debts?

• If you are a debtor facing insolvency with multiple debts, you can
manage your obligations through a process called cession or assignment
of property, as specified in Article 1255. This involves assigning all your
properties to your creditors, who can then sell these assets to recover their
claims. The cession must be accepted by the creditors, and you will only
be released from responsibility for the net proceeds from the sale of the
assigned properties. This means that if the proceeds do not cover your
total debts, you remain liable for the remaining amount. It's important to
follow any relevant insolvency laws to ensure compliance and to explore
any additional options available to you. Creditors do not gain ownership
of the properties; they merely have the authority to sell them to recover
debts.

19. Is it possible to have novation even without an agreement between the

creditor and debtor?

It depends,

• Expromision Effected with the consent of the creditor at the instance of

the new debtor even WITHOUT the knowledge or consent of the old
debtor.

Requisites:

A. Initiative for substitution must emanate from the new debtor

B. Consent of the creditor to the substitution

Two kinds of substitution by expromision:

1. Substitution with the knowledge and consent of the old debtor

2. Substitution without the knowledge or consent of the old debtor

• Delegacion
A method of novation caused by the replacement of the old debtor by a
new debtor, who (the old debtor) has proposed him to the creditor, and
 which replacement has been agreed to by said creditor and by said new
debtor. Effected with the consent of the creditor at the instance of the old
debtor with the concurrence of the new debtor

Requisites:
A. Initiation for substitution must emanate from the old debtor
B. Consent of the new debtor
C. Acceptance by the creditor

20. What type of obligations may be extinguished through compensation?

• Reciprocal obligations where both parties owe each other an amount

can be extinguished through compensation, provided the debts are
liquidated and demandable (Art. 1278, Civil Code).