Define OBLIGATION. (1156) An obligation is a juridical necessity to give, to do or not to do. The essential requisites of an obligation?

(1) a juridical or legal tie binds the parties to the obligation & which may rise either from bilateral or unilateral acts of persons (2) an active subject creditor or obligee, who can demand the fulfillment of the obligation (3) a passive subject debtor or obligor, from whom the obligation is juridically demandable (4) the fact, prestation, or service the object of the obligation. The sources of obligation? (1157) (a) Law (b) Contracts (c) Quasi-contracts (d) Acts or omissions punished by law (e) Quasi-delicts

In obligations to give, when does the creditor acquire a right to the thing which constitutes the object of the obligation as well as to the fruits thereof? (1164) Distinguish between the time when the creditor acquires a PERSONAL right to the thing and the fruits thereof and the time when he acquires a REAL right thereto. Before the delivery of the thing and the fruits thereof, the creditor has merely a personal right against the debtora right to ask for the delivery of the thing and the fruits. Once the thing and the fruits are delivered, then he acquires a real right over thema right which is enforceable against the whole world.

The different rights available to the creditor? (a) determinate obligations 1. to compel specific performance (1165) 2. to recover damages in case of breach of obligation (1170) (b) indeterminate/generic obligations 1. to ask for performance of the obligation (1246) 2. to ask that the obligation be complied with at expense of debtor (1165) 3. to recover damages in case of breach of obligation (1170)

In obligations to give, the different duties or obligations of the debtor/obligor? (a) determinate obligation 1. to deliver the thing which he is obliged to give 2. to take care of the thing w/ proper diligence of a good father to a family (1163) 3. to deliver all accessions and accessories (1166) 4. to pay damages in case of breach of the obligation (1170) (b) indeterminate obligation 1. to deliver the thing, which neither of superior nor inferior quality (1246) 2. to pay damages in case of breach of the obligation (1170)

Effect of fortuitous event.

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(a) determinate obligation obligor/debtor cannot be held liable for damages (1174) only determinate object can be destroyed by a fortuitous event. (b) indeterminate obligation obligor/debtor can still be held liable for damages (1263) an indeterminate object can never perish.

The different acts/omissions of the obligor/debtor resulting to breach of obligation for which he can be held liable for damages. (1170) (1) Default or mora (2) Fraud or dolo (3) Negligence or culpa (4) Contravention of the tenor of the obligation

Define DEFAULT or mora. Default or mora signifies the idea of delay in the fulfillment of an obligation. It is the non-fulfillment of an obligation with respect to time.

The different kinds of default or mora. (1) Mora solvendi delay of the obligor/debtor to perform his obligation (2) Mora accipendi delay of obligor/creditor to accept the delivery of the thing (3) Compensatio morae delay of the parties/obligors in reciprocal obligations

Define DELAY, in obligations to give or to do. (1169) The debtor incurs in delay from the time the creditor judicially/extrajudicially DEMANDS from him the fulfillment of his obligation & in spite of such demand, he is unable to comply with the obligation. When is demand by creditor not necessary? (1169) (1) when the obligation or law expressly so declares; (2) when from the nature & the circumstances of the obligation, it appears that the designation of the time when the thing is to be delivered or the service to be rendered was a controlling motive for the establishment of the contract; or (3) when demand would be useless when the obligor has rendered it beyond his power to perform.

Define DELAY, in reciprocal obligations. (1169) In reciprocal obligation, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins.

Define FRAUD or dolo. Fraud or dolo consists in the conscious & intentional proposition to evade the normal fulfillment of an obligation.

The differents kinds of fraud or dolo. (1) in performance of pre-existing obligation (a) present only during performance of pre-existing obligation (b) for purpose of evading the normal fulfillment of an obligation (c) results in nonfulfillment or breach of obligation (d) gives rise to a right of the creditor/oblige to recover damages (2 in the perfection of a contract (a) present only at the time of the birth of the obligation

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(b) for purpose of securing consent of the other party to enter into the contract (c) results in the vitiation of consent (d) gives rise to a right of the innocent party to ask for the annulment of the contract (causal fraud/dolo causante) or to recover damages (incidental fraud/dolo incidente)

Define NEGLIGENCE or culpa. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation & corresponds with the circumstances of the persons, of the time and the place. When negligence shows bad faith, articles 1171 & 2201 apply. If the law or contract does not state the diligence required, that which is expected of a good father of a family shall be required. (1173)

What is the test of negligence? Did the defendant, in doing the alleged negligent act, use the REASONABLE care & caution which an ordinarily prudent person would have used in the same situation? If not, then he is guilty of negligence.

Distinguish between Culpa Contractual and Culpa Aquiliana. (1) Culpa Contractual (a) there is a pre-existing contractual relation (b) there is only incidental negligence in the performance of the obligation (c) the source of the liability is the breach of contract (d) proof of contract & of its breach is sufficient prima facie to warrant recovery (e) the liability of the employers is based upon the principle that the negligence of employee is conclusively presumed to be negligence of the employer (f) proof of due diligence in the selection and supervision of employees is not available as a defense (2) Culpa Aquiliana (a) there is no pre-existing obligation (b) there is a substantive & independent negligence (c) the source of the liability is the defendants negligent act/omission (d) proof of the negligence of the defendant must be proved (e) the liability of the employers is based upon the principle that the negligence of employee is prima facie presumed to be negligence of the employer (f) proof of due diligence is available as a defense.

Define FORTUITOUS EVENT. (1174) A fortuitous event is an event which cannot be foreseen, or which though foreseen, is inevitable.

Kinds of Fortuitous events. (1680) (a) Fortuitous even proper (Act of God) absolutely independent of human intervention (b) Force Majeure dependent upon human intervention (wars, strikes, riots, etc) (c) Ordinary event which usually happens or which could have been reasonably foreseen (d) Extraordinary event which does not usually happen & which could not have been reasonably foreseen.

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The rule re: fortuitous events. (1174) GENERAL RULE: No person shall be responsible for those events which could not be foreseen, or which though foreseen, were inevitable. EXCEPTIONS: (a) in cases expressly specified by the law; or (b) when it is otherwise declared by stipulation; or (c) when the nature of the obligation requires assumption of risk

The conditions for application of rule on fortuitous events. Exemption from liability by reason of fortuitous events when: (1) the cause of the breach of the obligation must be independent of the will of the debtor; (2) the event must be either unforeseeable or unavoidable; (3) the event must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner; AND (4) the debtor must be free from any participation in the aggravation of the injury resulting to the creditor.

Define ASSUMPTION OF RISK. It refers to a situation in which the obligor/debtor, with full knowledge of the risk, voluntarily enters into some obligatory relation with the obligee/creditor. It is based on the principle of volenti non fit injuria no wrong is done to one who consents.

The remedies available to creditor to protect his rights against debtor? (1177) (1) to exhaust the property in possession of the debtor; (2) accion subrogatoriato be subrogated to all of the rights & actions of the debtor save those which are inherent in his person (3) accion paulianato impugn all of acts w/c debtor may have done to defraud him.

The different classes of obligations. (a) Pure, Conditional & W/ a term or period 1179-1198 (b) Alternative & Facultative 1199-1206 (c) Joint & Solidary 1207-1222 (d) Divisible & Indivisible 1223-1225 (e) With & Without a penal clause 1226-1230 (f) Natural & Civil 1156, 1423 (g) Legal, Conventional & Penal 1158-1162 (h) Real & Personal 1156, 1163-1168 (i) Determinate & Generic 1163-1164 (j) Positive & Negative 1163-1168 (k) Accessory & Principal 1166, 1230 (l) Unilateral & Bilateral 1191 (m) Single & Multiple 1199, 1206 (n) Individual & Collective 1207 PURE OBLIGATIONS (1179)

Define PURE OBLIGATION. (1179)

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A pure obligation is one whose effectivity or extinguishment does not depend upon the fulfillment or nonfulfillment of a condition or upon the expiration of a term or period, & which, as a consequence, is characterized by the quality of immediate demandability.

The most distinctive characteristic of pure obligations. Its immediate demandability. Distinction, however, must be made between: (a) immediate demandability of obligation AND (b) its performance or fulfillment by the obligor/debtor. The quality of immediate demandability is not infringed or violated when a reasonable period is granted for performance. CONDITIONAL OBLIGATIONS (1179-1192)

Define CONDITIONAL OBLIGATION. An obligation is said to be conditional when its effectivity is subordinated to the fulfillment or nonfulfillment of a future & uncertain fact or event.

Define CONDITION & its requisites. A condition is a future & uncertain event upon which an obligation is subordinated or made to depend. It has two requisites: (1) futurity (2) uncertainty

The classification of conditions. a. (1) Suspensive when fulfillment of the condition results in the acquisition of rights arising out of the obligation rights are not yet acquired, but there is a hope or expectancy that they will soon be acquired (2) Resolutory when fulfillment of the condition results in the extinguishment of rights arising out of the obligation rights are already acquired, but subject to threat of extinction b. (1) Potestative when fulfillment of the condition depends upon will of a party if dependent upon debtor (void), but if dependent upon creditor (valid) (2) Casual when fulfillment of obligation depends upon chance &/or upon will of a 3rd person obligation shall be valid (3) Mixed when fulfillment of obligation depends partly upon will of a party AND partly upon chance &/or will of a 3rd person dependent upon chance &/or will of 3rd person (valid) c. (1) Possible when the condition is capable of realization (according to nature, law, public policy or good customs) (2) Impossible when the condition is not capable of realization (according to nature, law, public policy or good customs) d. (1) Positive when the condition involves the performance of an act (2) Negative when the condition involves the non-performance of an act e. (1) Divisible when the condition is susceptible of partial realization (2) Indivisible when the condition is not susceptible of partial realization f. (1) Conjunctive when there are several conditions, all must be realized (2) Alternative when there are several conditions, one must be realized g. (1) Express when the condition is stated expressly (2) Implied when the condition is tacit.

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The effect of loss, deterioration or improvement to obligations w/ suspensive condition. (1189) (1) If the thing is lost w/o fault of debtor, the obligation shall be extinguished; (2) If the thing is lost w/ fault of debtor, he shall be obliged to pay damages LOST = when it perishes, 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 w/o fault of debtor, the impairment is to be borne by creditor (4) When the thing deteriorates w/ fault of debtor, the creditor may choose between the rescission of the obligation & its fulfillment, with indemnity for damages (5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor; (6) If the thing is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary. ***above rules applicable to obligations w/ resolutory condition. (1190) However, the debtor is the person obliged to return the object of the obligation in case of fulfillment of the condition, while the creditor is the person to whom the thing/object must be returned.

Define RECIPROCAL OBLIGATION. Reciprocal obligations are those which are created or established at the same time, out of the same cause, and which result in mutual relationships of creditor and debtor between the parties.

The effect of non-compliance in reciprocal obligations. (1191) The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. The injured 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. The court shall decree the recission, unless there be just cause authorizing the fixing of a period. This is understood to be without prejudice to the rights of 3rd persons who have acquired the thing, in accord with arts. 1385 & 1388 & the Mortgage Law.

The effect of breach of both parties in reciprocal obligations. (1192) The first infractor shall be liable, but his liability shall be equitably tampered by the courts. However, 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 damage.

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