Obligations and Contracts

ARTICLE 1156 UNDER THE NEW CIVIL CODE COMPLAINT

AN OBLIGATION IS A JURIDICAL NECESSITY - Written statements where someone writes down why
TO GIVE, TO DO, OR NOT TO DO. they think they have a problem and deserve help from
- the court.
- Explains that an obligation is a legal requirement to - The first letter you send to the court to begin a legal
either provide something, perform a task, or refrain from disagreement.
doing something. COMPLAINT IN RELATION TO CAUSE OF ACTION
- Laws regarding on how we treat, deal or behave towards - This contains three essential elements of a cause of
each other. action.
JURIDICAL NECESSITY o Legal right of the plaintiff (person who starts a
legal case, the one who file complaints)
- If you fail to fulfill your promise, you can be sued.
o The correlative obligation of the defendant
OBLIGATION (what the defendant is expected to do in
- A civil obligation is enforceable by court action unlike response to the case filed against them)
natural obligations. (Contract signing and borrowing a o The act or omission of the defendant in
book) violation of said legal right (pointing out the
o Civil obligation – legal promises that the court wrong of the defendant)
make sure you keep - If these are absent, then the complaint becomes
o Natural obligation – doing or not doing what’s vulnerable to dismissal
right without having legal consequences. REQUISITES/ ELEMENTS OF AN OBLIGATION:
- “to do” includes all kinds of work or service (positive
Active Subject (Creditor or Obligee)
personal obligation)
- The party who has the right to demand performance of
- “to give” is a prestation which consists in the delivery of
the obligation
a movable or an immovable thing in order to create a
o Sa oras ng singilan, siya yung mas may gustong
real right
o "Prestation" refers to an action or service that may push through yung event kaya active
subject
is required as part of fulfilling an obligation.
(object)
Passive Subject (Debtor or Obligor)
- “not to do” obligation of the debtor or obligor to not
- the party who is required to perform the obligation
perform some act in favor of the creditor or obligee
o Ang mga may utang, usually tahimik lang
(negative personal obligation)
- A juridical relation whereby a person (creditor) may hanggang hindi pa sinisingil or hindi agad mag-
demand from another (debtor) the observance of a volunteer kasi ikaw yung mawawalan ng pera
determinative conduct (the giving, doing, or not doing). di naman sila.
o The friend who lent the book is the creditor, o Tahimik: passive
and the person who borrowed the book is the
debtor. The friend (creditor) can ask the person Prestation (Object or Subject Matter)
(debtor) to return the book, which is a specific - It may consist of giving, doing, or not doing something.
action they expect the debtor to do. - Fact, object, or service
o Ito yung kailangang gawin
If Trisha borrowed money from Yanna in the year 2000, can Efficient Cause (Vinculum Juris or Juridical Tie)
Yanna still ask Trisha to give the money back in 2023? - That which binds the parties of an obligation
o Reason why need gawin ni passive subject yung
- Yes, Yanna can still ask Trisha to give the money back obligation niya kay active subject
after 23 years however, this is already under natural Through a contract of loan, Diego borrowed P1,000,000 from
obligation and not under civil obligation since it is past Cardo a year ago.
the prescriptive period. Yanna can still ask Trisha to pay
her back but she cannot take her to court or sue. On the maturity date,
Prescriptive period – number of years kung hanggang kelan pde who/what is the active subject, passive subjective, prestation and
singilin the efficient cause?
- Once nag set in, di na pwede demanda magiging natural
obligation
 Active subject: Cardo
- Cannot extend but can toll by Demand letter
 Passive subject: Diego
 Prestation: the giving of P1,000,000
CIVIL ACTION  Efficient cause: contract of loan
- When one person takes another person to court to make
FORMS OF AN OBLIGATION:
sure a right is respected or protected.
- Oral
CAUSE OF ACTION
- Written
- When someone does violates the right of another - Partly oral and partly written
person.
KINDS OF OBLIGATION ACCORDING TO THE SUBJECT MATTER
ARTICLE 1157. SOURCES OF OBLIGATIONS
A. Real Obligations
OBLIGATIONS ARISES FROM LAW, CONTRACTS, QUASI-
- Latin word “res”- object
CONTRACTS, ACTS OR OMISSIONS PUNISHED BY LAW, AND
- Real obligations is the giving of an object
QUASI-DELICTS
- Represents to give
o Example: magbigay ka, magdeliver ka ng - The sources of obligation under this provision are
cellphone exclusive.
KINDS OF REAL OBLIGATIONS
1. Determinate or Specific Real Obligation PRACTICE OR CUSTOM (NOT AN OBLIGATION)
Personal Obligation - Not a source of a legally demandable or enforceable right
- Obligation of a debtor or obligor to deliver a determinate - Does not create a legal right that can be enforced
or specific thing to the creditor or obligee. - Just because something is done in a certain way
- Refers to the responsibility of the person who owes traditionally or commonly, does not mean you can legally
something (debtor) to give a specific thing to the person force other to follow it
they owe (creditor). It's about fulfilling a promise to hand o Leaving bowl of candies outside the house for
over a particular item as part of an obligation. Halloween, if they decide to not do it the next
- A thing is determinate when it's specifically pointed out Halloween, no one can legally force them to
or physically separated from similar things of its kind. In continue the practice.
other words, it's singled out or made distinct from others
of its type. (Obligation to deliver a car with plate number LAW
ABC123) - A rule of conduct, just, obligatory, promulgated by
B. A thing is indeterminate when it's identified only by its legitimate authority, and of common observance and
general category or type, without any specific name or benefit
physical separation. It's not singled out from others of - Law is a fair and necessary rule that comes from a proper
the same kind. authority
C. Positive personal obligation - Article 1158
a. Represents to do
b. Gumawa ng bahay, kumanta sa concert REPUBLIC ACT 623
D. Negative personal obligation - Meant to protect the intellectual property rights of
a. Represents not to do registrants of the containers and prevent unfair trade
b. Huwag mong gawin yung bagay na yon practices and fraud on the public.

RIGHT CONTRACT
- A claim or title to an interest in anything - Meeting of minds between two or more persons
- A power, privilege, or immunity guaranteed under a whereby one binds himself, with respect to another.
constitution, statute or decisional law - Agreement of people on something.
- Privilege - Negotiation, preparation, perfection, consummation
- For every right enjoyed by any person, there is a - Elements: Consent, Object, Cost
corresponding obligation on the part of another person - Article 1159
to respect such right Negotiation – the process that starts when people show they're
o When someone has a right, someone else has a interested in making an agreement and continues until they
responsibility to honor that right. actually finalize and agree on the terms of the contract.
o For every right someone has, there's a - Talking and discussing before both sides agree on
matching duty for others to respect it. everything

Imagine you borrowed a book from your friend. In this situation: Perfection – happens when all the important parts of the contract
come together and agree.
Your Obligation: You have an obligation "to return" the book to
your friend. This falls under the category of "to give." Consummation – begins when parties perform what they agreed
on.
Your Friend's Right: Your friend has the right to receive the book
back from you. Oral Contract – 6 years
- An agreement between people that's made through
Not to Do: Tamper your friend’s book or not give it back. spoken words, rather than being written down
- Harder to prove than written contracts

Written Contract – 10 years

QUASI-CONTRACTS (6 YEARS)
- Latin of “as if” DELICTS OR ACTS OR OMISSIONS PUNISHED BY LAW
- No one shall be unjustly enriched or benefited at the - A violation of the law; especially a wrongful act or
expense of another omission giving rise to a claim for compensation.
- They're situations where even if there's no official - Crime produce obligation
contract, nobody should unfairly gain or benefit from - Intentional
someone else's loss. It's about making sure people are - Every person criminally liable for a felony is also civilly
treated fairly and not taking advantage of others. liable.
- “Parang contract” hindi siya full-pledged contract - Revised Penal Code: laws about different crimes, special
because of “unilateral” - isa lang ang nag decide to push penal laws (specific crimes)
through unlike sa regular contract na bilateral - Pinagmumulan ng obligation ang crimse kasi may
- Most common examples: criminal liability na makukulong ka at meron dong civil
o Negotiorum gestio – If someone decides to liability na kailangan may babayaran ka.
handle someone else's business or belongings - Example: crime of arson (panunuyog ng bagay na
on their own, even if they weren't asked to, pagmamay-ari ng ibang tao) makukulong ka na at
they have to keep doing that until everything is kailangan mo pa i-reimburse yung halaga ng nasunog mo
finished or they get permission from the owner
to stop. QUASI-DELICTS
 Example: nagpunta sa ibang bansa
- Negligence
yung kapitbahay mo tapos biglang
- If you do something wrong or fail to do something, and it
nagkaroon ng calamity, and nasira
harms someone else, you have to compensate them for
yung bubong ng mga hawla ng hayop,
the damage you caused.
so there is a tendency na makatakas
- tort or culpa aquiliana (refers to a legal concept where
sila. Bilang mabuting kapitbahay, on
someone can be held responsible for causing harm to
your own initiative, pinaayos mo
another person due to their negligence or fault. It's a
yung hawla ng hayop
basis for seeking compensation when someone's actions
 Ikaw lang, unilaterally, ang nagdecide
or omissions lead to someone else's injury or damage.)
 Upon returning of your neighbor,
- There are acts or omissions that cause damage to
may obligation na siya to reimburse
another. There being fault or negligence but without any
yung mga ginastos mo even though
existing contractual relation between the parties. There
initially he didn’t give any approval
is now an obligation to pay for damages.
 Question: what if sinabi ng
- “Parang crime”
kapitbahay mo na bakit mo pinaayos,
- Intent: meron sa crime wala sa quasi-delict
sino nagbigay ng consent? ANG
o Sa crime, nandon yung intention mo na
BATAS MISMO ANG NAGSABI OR
makasakit
NAGBIGAY NG CONSENT.
o Sa quasi-delict walang intention na makasakit
 Ang point of view ng batas is if yung
pero nakasakit ka pa rin due to negligence
may-ari ang nasa bahay and nakikita
- Example: nagmamaneho ka ng sasakyan pero dahil sa
niya na sira na ang hawla, yon din
pagmamadali ka, nakasagasa ka (wala kang intent pero
naman ang gagawin niya. And kung
dahil sa negligence mo nakaasksidente ka) so you have to
may ibang tao na gumawa non para
pay for the damages such as bill sa hospital
sayo, it is your obligation to
reimburse.
ARTICLE 1158
o Solutio Indebiti – This refers to the payment by
OBLIGATIONS DERIVED FROM LAW ARE NOT PRESUMED.
mistake of an obligation, in excess of what
should have been paid or payment to a person - Only the things specifically stated in this code or in
not due to receive it. special laws can be legally enforced, and they will be
 Namali ang bayad or sumobra, may governed by the rules set in those laws. If something isn't
obligation tayo na ibalik to. covered, the regulations in this particular section will
 Hindi ka pwedeng makinabang at the apply.
expense of another person. - not presumed: dapat may actual or specific law bago mo
 If you get something you shouldn't masabi na may obligation ang tao
have asked for, and it was given by - Example: Tax Laws or Train Law - obligation to pay taxes
mistake, you have to give it back. - Family Code of the Philippines: obligations of family
 Must be proven: the absence of a members to each other
right to collect the excess sums; the o Obligation ng mga magulang na alagaan ang
payment was made by mistake (If mga anak lalo na ang mga menor de edad
you weren't supposed to receive kasama na dito ang pagbigay ng sustento
extra money, and it was given to you o Civil obligation and criminal liability ang hindi
by accident, you have to give it back pagbibigay ng sustento
because you don't have the right to
keep it.)
 o MENTAL

ARTICLE 1159  Moral

OBLIGATIONS ARISING FROM CONTRACTS HAVE THE FORCE OF  Exemplary
LAW BETWEEN THE CONTRACTING PARTIES AND SHOULD BE  Nominal
COMPILED WITH IN GOOD FAITH.  Temper
- When people make agreements (contracts), those  Actual
agreements are like legal rules between them, and they  Liquidated
should be followed honestly and fairly by both parties. ACTUAL – needs to be justified by the presentation of actual
- Once may contract, such as contract of sale, may force of receipt
law. Para sa inyo (buyer and seller), yon ang batas and - Kunware si victim nabangga ng sasakyan, tas naospital
ano man ang nailagay sa contract as long as it is not sya, pano nya mapapareimburse sa accused yung mga
contrary to law, public morals, policy and good customs nagastos nya sa ospital. He needs to present in court
pwede, mag-stipulate (demand or specify) kung ano different official receipts coming from the hospital and
gusto niyo ilagay na provisions sa contract. pharmacy to prove reimbursement. Pag napakita nyam
- Good faith – a concept that doesn't have a specific ga resibo, the court will automatically grant actual
definition but generally means having honest intentions. damages in his favor
o It suggests that a person is acting sincerely and
doesn't have knowledge of important facts that MORAL – ginagrant kapag ang victim ay nagsuffre ng: MWSSS
should make them investigate further. In other (Mental Anguish, Wounded Feelings, Social Humiliation, Serious
words, it's about being genuine and not trying Anxiety, Sleepless Nights)
to deceive others. - If the victim suffered any of the MWSS, pwede syang mag
claim ng moral damages
ARTICLE 1160 - Di need ng proof, need lang magtestify na sa court
OBLIGATIONS DERIVED FROM QUASI-CONTRACTS SHALL BE - Kunware sa rape victim, naturally entitled sya sa moral
SUBJECT TO THE PROVISIONS OF CHAPTER 1, TITLE XVIII, OF THIS damages dahil lahat ng MWSS naranasan ng isang rape
BOOK victim. Pwede nya sabihin sa court “Your honor, I
suffered all of these emotions, these traumatic
NEGOTIORUM GESTIO expriences because of the crime that was committed
against me” and that will be sufficient for the court to
SOLUTIO INDEBITI grant sufficient damages.

EXEMPLARY – magkakambal moral and exemplary. Most of the

OTHER QUASI-CONTRACTS time sabay ginagrant
- The support given by strangers as enumerated under - Serves as a deterrent to the public na kapag gagawa ng
article 2164 to 2175 (support, funeral expenses, accident, crime yung isang tao pwede sya magbayad ng exemplary
fire, flood, storm) damages sa victim

ARTICLE 1161 NOMINAL – ginagrant sa isang victim kahit hindi seryoso yung
CIVIL OBLIGATIONS ARISING FROM CRIMINAL OFFENSES SHALL BE damages na nasuffer nya (may nagawang mali yung accuse but it is
GOVERNED BY PENAL LAWS not serious enough for them to pay for moral or exemplary)
- Civil liability of a person guilty or felony – every person is - Pinakamababang form of damages
criminally liable for a felony is also civilly liable - 1,000 pesos to 50,000
o When a person is found guilty of committing a
crime, they can also be held responsible for any PEOPLE OF THE PHILIPPINES VS ACCUSED (JUAN DELA CRUZ)
damages or harm caused by that crime. This - Nangyayari kasi yung accused has now become a public
means that their criminal liability is linked to charge, security risk na sya, nagiging kalaban nya na lahat
their civil liability – they might have to ng tao na nakatira sa bansa
compensate the victim financially or otherwise, - People of the Philippines hindi Filipinos – nagiging risk na
in addition to facing criminal consequences. sya di lang sa Filipinos kundi sa lahat ng nagrereside sa
o If someone committed a crime they can face Philippines kaya need sya ikulong
consequences: - Yung victim ang primary witness for the offense
 Criminal liability – against the state
 Imprisonment FAILURE TO PROSECUTE
 Fine - May mga kasong nadidismiss kapag wala nang witness
 Both kasi wala na magtetestify especially kapag primary
 Civil liability – against the innocent witness na yung hindi sumipot (di na uusad ung kaso)
person or victim
 Restitution (pagsoli) or - Subsidiary liability
Reparation (repair) – fix o Innkeepers (people who run hotels or similar
situation or make up for it places) or any other persons or corporations
 Indemnification of damages – can be held responsible for crimes that happen
compensation or payment in their establishments. They can also be held
 accountable for helping to return stolen goods, pinauwi ng doctor. Everytime she goes to cr to pee,
even if they weren't directly involved in the napapansin nya na may lumalabas na hibla ng tela. So
crime. This is a type of shared responsibility she thought na baka yung sinulid na ginamit lang pantahi
where they might have to compensate for yun kaya lang habang lumilipas ung araw, mas lalo
losses caused by criminal activities on their sumasakit ung tyan nya at mas kumakapal ung hibla ng
property. tela na lumalabas sakanya. Nung di nya na kaya yung
o Shall also apply to employers, teachers, sakit, pumunta sya ulit sa hospi para magpaultrasound
persons, and corporations engaged in any kind tas Nakita sa tyan nya yung gauze so naiwan pala yung
of industry for felonies committed by people gauze sa tyan nya. So kasalanan nung nag opera sakanya.
under them (employees, students) - The thing speaks for itself – yung presence nung gauze.
- What is included in civil liability? Yung gauze yung makakapagsabi na yung doctor ung
o Restitution – means giving back or returning liable for medical negligence. The thing doesn’t do the
something that was taken or stolen. When talking but its presence will speak for itself. Di pwede
restitution is required, it's best to return the sabihin nung doctor na walang witness kasi nandun nga
actual item itself if possible. If the item has yung gauze tsaka highly restricted ung operating room so
been damaged or deteriorated in some way, walang ibang ituturo kundi sila sila rin na nag opera
the person returning it should consider that sakanya kahit tulog ung misis nung inooperahan sya.
and make appropriate allowances. - Walang defense yung doctor. Di lang di ung doctor ung
o Reparation – involves compensating someone liable kundi ung buong team na nag opera
for the harm or damage caused. In legal cases,
the court will decide how much money should PROXIMATE CAUSE
be paid as compensation. This decision is based - If the event did not happen, would the injury still have
on factors such as the value of the item that resulted
was harmed and its emotional or sentimental - Ano yung pinaka puno’t dulo ng lahat?
importance to the person affected. - Bataclan vs Medina - a bus was traveling to Southern
o Indemnification – refers to compensating Luzon, mabilis ung takbo ng bus hanggang nabangga sa
someone for losses or damages. In this context, puno. Dahil sa lakas nung impact, bumaliktad ung bus at
it means that the compensation should cover nagleak ung gasoline. Sa lakas nung impact nagising ung
not only the harm suffered by the injured mga tao sa barrio eh wala pa kuryente nung panahon nay
person but also the losses experienced by their un so nung pumunta sila para icheck nagdala sila ng torch
family members as a result of the incident. kasi madaling araw palang nun mga 3 am, kaya lumiyab
yung bus tsaka namatay yung mga pasahero
ARTICLE 1162 - Yung proximate cause nyan nya is ung accident (turning
OBLIGATIONS DERIVED FROM QUASI-DELICTS SHALL BE of the bus upside down) encountered by the bus kasi dun
GOVERNED BY THE PROVISIONS OF CHAPTER 2, TITLE XVII OF nagkaron ng leak
THIS BOOK, AND BY SPECIAL LAWS - Yung immediate cause is yung contact ng torch sa fuel
- If there is no pre-existing contractual relation between
the parties, it is called quasi-delicts. COUNTER CLAIM – kontra demanda
- The responsibility for mistakes or carelessness, as
mentioned in the previous section, is completely CROSS CLAIM – may third party involved (may tao nakatayo sa gilid
separate from the civil liability that comes from ng poste tas nabangga ng car yung poste tas tumumba)
negligence under the Penal Code.
- In other words, being accountable for errors or CONTRIBUTORY NEGLIGENCE
negligence in one situation is different from being held - the victim contributed to the negligence of the accused
responsible for negligence as a criminal offense under - may patient na nagttake ng blood thinner tas sinabihan
the law. sya top bago operation kaso di ya stinop so nung cinut
sya na comatose kasi d tumigil pagdugo. Liable doctor
QUASI-DELICTS kasi di nagconduct ng lab test bago operation, liable yung
- There was a crime but no intent against the accused patient kasi di sumunod sa doctor.
- Hindi sinasadya
- Quasi means parang oo, parang hindi NATURE AND EFFECT OF OBLIGATIONS
ARTICLE 1163
NEGLIGENCE EVERY PERSON OBLIGED TO GIVE SOMETHING IS ALSO OBLIGED
- Lack of care, foresight, diligence TO TAKE CARE OF IT WITH PROPER DILIGENCE OF A GOOD
- Kaya nagkakaron ng aksidente kasi di nagiingat, there is FATHER OF A FAMILY, UNLESS THE LAW OR THE STIPULATION OF
lack of foresight but there was no intent to injure or to THE PARTIES REQUIRES ANOTHER STANDARD OF CARE
harm - If you have to give something to someone, you also have
to take care of it properly, like how a good parent would.
RES IPSA LOQUITUR This is unless the law or what you both agreed on says
- The thing speaks for itself you need to take care of it differently.
- Usually applicable in medical negligence case - One of the obligations of the obligor or debtor in Specific
- Kunware nagpaopera sa tyan si misis, pagkatapos Real Obligation
maoperahan, nagpahinga ng ilang araw sa ospitlal tsaka
 o In a specific real obligation, which is a type of o Medical, Banking, Common Carriers (Contract
legal duty, the person who owes something of Carriage), Food Industry
must fulfill a particular action tied to a specific
item or property.
- tulad ng isang pag-aalaga ng isang ama sa isang pamilya: STANDARD DILIGENCE
gagawin mo ang lahat para hindimapahamak ang iyong
- Ordinary standard of care (diligence of a good father)
mag-ina
o Example: nagtitinda ka ng pets at may bumili
sayo ng aso tapos iddeliver mo sa buyer next NEGLIGENCE
week. Hindi porket bayad na, pababayaan mo - Slight Diligence is equivalent to Negligence
na lang yung aso. Proper diligence of a good - Omission of that diligence required by the nature of
father of a family implies na kailangan alagaan obligation and corresponds with the circumstances of the
mo pa rin siya. persons, of the time, and place.
- Unless nanghihingi pa ng higher standard of care o Not being as careful as you should
o Example: everytime sumasakay tayo sa jeep o Not doing what’s needed according to the
and other public transportation, we enter a obligation’s requirements
contract of carriage. Under the law, it requires - The conduct that creates an undue risk of harm to others
the kind of care na extraordinary diligence, ibig - Failure to observe that degree of care
sabihin na ganon ka dapat alagaan ng mga ARTICLE 2179 OF THE CIVIL CODE
transportation vehicles. Pinapangako ng drivers - When the plaintiff’s own negligence was the immediate
na safe ka makakarating ka sa pupuntahan mo and proximate cause of his injury, he cannot recover the
and if naaksidente kayo, that is a breach of damages.
contract dahil hindi nasunod ng driver yung - But if his negligence was only contributory, the
extraordinary diligence immediate and proximate cause of the injury being the
o Pagsasakay ka ng jeep at hindi ka pa nakakaupo defendant’s lack of due care, the plaintiff may recover
at nasubsob ka, liable pa rin yung driver dahil damages (court shall mitigate the damages ti be
hindi niya in-exercise yung extraordinary awarded)
diligence. It is a violation to take good care of o If the person who is suing (plaintiff) is mostly
the passengers. responsible for their own injury, they can't ask
for compensation.
DILIGENCE o However, if their responsibility is only a part of
- Care, caution, attention, and care required from the the problem and the main reason for the injury
person in a given situation is the lack of care from the other person
o Being really careful and paying good attention (defendant), the plaintiff can ask for
to what needs to be done in a certain situation. compensation, but the court might reduce the
o Being careful in general amount.
- Opposite of negligence
DILIGENCE REQUIRED IN REAL OBLIGATION
DUE DILIGENCE (OBLIGATION TO GIVE)
- The diligence reasonably expected from, and ordinarily General Rule: to take care of the thing with the proper diligence
exercised by a person who seeks to satisfy a legal of a good father of a family
requirement or to discharge an obligation -
o Level of care and attention that a person EXCEPTIONS:
should give when they're trying to meet a legal 1. Law requires another standard of care
rule or fulfill a responsibility. It's what a - A case where the debtor or obligor in obligation must
reasonable person would do in that situation. observe a higher standard of care than ordinary diligence
o Being thorough and careful in a legal or because a specific law provides.
business context o If a law says you need to be even more careful
than the usual standard, you have to do that.
o It's like having to take extra care because the
EXTRAORDINARY DILIGENCE
law says so.
- Extreme care that a person of unusual prudence ARTICLE 1755, OF THE NEW CIVIL CODE
exercises to secure rights or property - A common carrier is bound to carry the passengers safety
o Being extremely careful in a way that goes as far as human care and foresight can provide, using the
beyond what a very careful person would utmost diligence of very cautious persons
normally do. o Transport companies must keep passengers
o It's like when someone takes exceptional safe by using the utmost care like very cautious
measures to protect their rights or belongings. people would.
- Necessary for Industries imbued with public interest and SECTION 2 OF RA NO. 8791 THE GENERAL BANKING LAW OF 2000
public policy - The State recognized the “fiduciary nature of banking
- Example of these industries: that requires high standards of integrity and
performance”
 o Banking is seen as a highly trustworthy and - Ang delivery ng subject matter ang nakapagpapalit
responsible job because it involves handling ng ownership
people's money and financial matters. - Pag nadeliver na ni seller kay buyer yung subject
matter, that’s the only time na nalilipatyung
2. The stipulation of the parties requires another standard ownership.
of care 3. To deliver the fruits of the thing.
- A case where the debtor or obligor and the creditor or a. Natural fruits: they are the spontaneous products
oblige agrees on a higher standard of care which is higher of the soul and the young and other products of
than ordinary diligence of a good father of a family animals.
o When the person who owes something and the - Tumubo na lang nang hindi na kailangan ng
person who should receive it agree to be more tulong ng tao
careful than usual, even more than what a - Anak ng hayop (puppy, cattle)
good parent would do. - Hayop na ipinanganak na may tulong ng
veterinary
DETERMINATE o Under the law, ang mga hayop ay
natural fruits
- A thing is considered to be determinate if it is particularly
b. Industrial fruits: they refer to those produced by land of
designated and physically segregated from all other
any kind through cultivation or labor.
objects of the same class.
- Kailangan ng tulong ng magsasaka bago tumubo
o Specifically chosen and physically separated
(palay, mais, tobacco)
from other similar things.
c. Civil fruits: refer to fruits that are the result of a juridical
Example:
relation.
1. I will give you a Toyota vios with plate number ABC123.
- Interest income, fruit from the loan
- Naging mas specific with the plate number kasi bawat
- Rent income, from your property
kotse ay may plate number but sya lang yung may
number na ganon.
2. I will give you a house located at 54B Scout Tuazon, PERSONAL OBLIGATION
Quezon City. (Specific because of the location) - Obligation to do or not to do
3. I will give you the pen that I am holding right now. - Kahit o Because you cannot compel a person to do
hindi mo pangalanan, but you are pertaining to a specific something which is against or not against his
object. will

GENERIC ARTICLE 1164

THE CREDITOR HAS A RIGHT TO THE FRUITS OF THE THING FROM
- Indeterminate thing
THE TIME THE OBLIGATION TO DELIVER IT ARISES. HOWEVER, HE
- Identified only by its species. The debtor can give
SHALL ACQUIRE NO REAL RIGHT OVER IT UNTIL THE SAME HAS
anything of the same class as long as it is of the same
BEEN DELIVERED TO HIM
kind.
Example: I will give you a car. - The person who is owed something (creditor) can enjoy
- Generic object kasi maraming uri ng kotse. the benefits that come from the item as soon as the
- You need to identify kung ano ang determinate or obligation to give it starts. But they don't actually own
specific kasi yun yung kailangan mo alagaan sa obligation the item until it's physically given to them.
mo. o Creditor is considered a buyer or the active
- Correlating sa example in the pet shop: hindi lang basta subject
aso yung aalagaan mo, kundi si Casper na binili mo. And Illustration: On August 1, Mr. A promised to give a specific dog to
if hindi i-specify like: I will give you a dog; pwedeng hindi Mr. B. Based on their agreement, the dog should be delivered to
mo alagaan ng todo yung aso kasi kung mamatay man, Mr. B on August 15. Unfortunately, the dog was delivered on
matutupad mo pa rin yung pangako or obligation mo na August 31. Unknown to Mr. B, the dog gave birth to 3 puppies on
magbigay ng aso. August 21. Who should be entitled to the three puppies?
- Under the law, lahat ng fruits of the right kay creditor
Genus nungram perit - genus never perishes, na kahit mamatay
dapat from the time the obligation to deliver it arises. So
yung aso may iba pa namang aso sa ibang lugar (money)
on August 15, lahat ng fruits (natural fruits) ng dog are
- Even if specific instances within a category may
entitled to Mr. B kahit na nanganak sa bahay ni Mr. A.
disappear, the broader category itself continues to exist.
- What if the dog gave birth on August 10? The puppies are
entitled to Mr. A kasi hindi pa dumarating yung time para
OBLIGATIONS OF A DEBTOR OBLIGED TO GIVE A DETERMINATE
i-deliver yung dog.
THING
- If hindi napag-usapan yung date of delivery sa isang
1. To take good care of the thing with the diligence of a
contract of sale, dapat itong madeliver immediately.
good father of a family unless the law or agreement of
Example: if the dog gave birth the night before your
the parties requires another standard of care.
supposed delivery, the puppies are entitled na sa buyer.
- The rule is to take care of something as a
(Immediately demandable yung delivery kung walang
responsible parent would, unless the law or an
napag-usapan)
agreement asks for a different level of care.
2. To deliver the thing.
 siyang karapatan don sa aso. Since personal right lang meron siya,
pwede niya kulitin si seller na ideliver na yung dog, pwede siya
DELIVERY magdemand or ilaban against that person. Ang real right naman,
magkakaroon ka nito pag na-deliver na yung mismong aso sayo.
- Formal act of transferring something (deed, giving or
Yung karapatan niya sa aso pwede niya na ilaban against the world.
yielding possession, control to something or another)
Ikaw na yung mismong owner since na tanggap mo na upon
- Need ideliver yung isang bagay from the due date or else
delivery, kaya hindi na pwedeng kunin sayo. If ever may kumuha
delayed
nung aso sayo, pwede mo na kasuhan.
o Kunware umorder ka sa Lazada, nakalagay na
due date sa delivery ay today, kaso di pa
Yung personal right mo magiging real right pag na-deliver na sayo.
dumadating. Yung actual delivery date nya
Pag wala pang delivery, ang pwede mo lang habulin ay yung
could be delayed
nagtitinda.
o Kapag due date, creditor has personal right
- Ownership over properties are acquired and transmitted
over the thing
by delivery.
o Kapag delivery date, creditor already has a real
right over the thing
KINDS OF FRUITS
ACTUAL DELIVERY NATURAL FRUITS
- Act of giving real and immediate possession to the buyer - They are the spontaneous products of the soul and the
or the buyer’s agent. young and other products of animals.
o Physically handing over - Tumubo na lang nang hindi na kailangan ng
o Giving real and immediate control to buyer tulong ng tao
- Anak ng hayop (puppy, cattle)
CONSTRUCTIVE DELIVERY - Hayop na ipinanganak na may tulong ng
- Amounts to a transfer of title by operation of law when veterinary
actual transfer is impractical or impossible o Under the law, ang mga hayop ay
o A legal way to transfer ownership when giving natural fruits
the actual item is too hard or not doable. It's
like a special rule to change ownership without INDUSTRIAL FRUITS
physically handing over the item. - They refer to those produced by land of any kind through
- Imagine you're buying a big piece of land, but you can't cultivation or labor.
physically go to the land to receive it. Instead, the seller - Kailangan ng tulong ng magsasaka bago tumubo
hands you the keys to a gate that leads to the land. Even (palay, mais, tobacco)
though you haven't physically gone there, this "key
delivery" symbolizes that you now own the land. CIVIL FRUITS
- Refer to fruits that are the result of a juridical relation.
- Interest income, fruit from the loan
PERSONAL RIGHT
- Rent income, from your property
- Power of one person to demand of another, as a definite
passive subject, the fulfillment of a prestation to give, to ARTICLE 1165
do, or not to do. WHEN WHAT IS TO BE DELIVERED IS A DETERMINATE THING, THE
o One person having the authority to ask another CREDITOR, IN ADDITION TO THE RIGHT GRANTED HIM BY ARTICLE
person to do something specific for them, like 1170, MAY COMPEL THE DEBTOR TO MAKE THE DELIVERY
giving, doing, or not doing something
- Only arises prior to delivery of the thing IF THE THING IS INDETERMINAET OR GENERIC, HE MAY ASK THAT
- Kahit nabayaran mo pa at di pa dumadating personal THE OBLIGATION BE COMPLIED WITH AT THE EXPENSE OF THE
right lang ang meron ka DEBTOR

REAL RIGHT IF THE OBLIGOR DELAYS, OR HAS PROMISED TO DELIVER THE

- The power belonging to a person over a specific thing, SAME THING TO TWO OR MORE PERSONS WHO DO NOT HAVE
without a passive subject individually determined, THE SAME INTEREST, HE SHALL BE RESPONSIBLE FOR ANY
against whom such right may be personally exercised FORTUITIOUS EVENT UNTIL HE HAS EFFECTED THE DELIVERY
o Having control over something specific, and - Creditor can force debtor to give it (Article 1170)
you don't need to focus on a particular person - Creditor can ask debtor to do it at debtor’s cost
to use that control. - Debtor is responsible for accidents or delays until given
- Only arises in actual delivery kasi may actual possession
ka na REMEDIES:
SPECIFIC PERFORMANCE WITH DAMAGES
Example:
- Bumili ka ng kotse tas bayad mo na, kaso mag 1 month
Si seller may ibinentang specific dog, hanggang hindi pa naiddeliver
na di parin dinideliver, ano ngayon ang remedy mo
ni seller yung specific dog kay buyer, ang tanging meron lang si
against the car dealer?
buyer mula kay seller dahil may perfected contract naman is
personal right. Hanggang wala pa sa kanya yung aso, wala pa
 o Specific Performance with damages, - Removal of accession can cause damage of the whole
cinocompel mo sya na ideliver na yung bagay thing as opposed to the accessory
na binili mo Example:
Bumili ka ng lupa and may nakatanim na puno ng mangga. Kahit
DEMAND DAMAGES IN CASE OF FRAUD, NEGLIGENCE OR DELAY hindi sinabi sa contract kung kasama yung puno sa pagmamay-ari
IN THE PERFORMANCE OF HIS OBLIGATION, OR CONTRAVENTION mo o delivery, kasama ito dahil ito ay considered na accession kasi
OF THE TENOR naka-incorporate ito sa lupa. But kung explicitly sinabi sa contract
na hindi kasama yung puno ng mangga, hindi ito kasama sa
- Kunware napagusapan nyo is red vios car tapos yung
delivery.
dumating sayo pearl white so merong contravention
pwede ka mag demand
ACCESSORIES
RESCISSION WITH DAMAGES IN CASE OF RECIPROCAL - All the things that are meant to make another, more
OBLIGATION important thing look better, be more useful, or last
longer.
- Article 1191 VS 1380
- These accessories aren't physically attached or part of
- Ipapawalang bisa yung contract
the main thing, but they serve to improve or protect it.
- Cellphone. Yung battery considered as an accession kasi
DETERMINATE pag tinanggal mo yung battery hindi na gagana yung
- A thing is considered to be determinate if it is particularly cellphone.
designated and physically segregated from all other - Yung accessories kahit tanggalin mo, kaya pa mag-
objects of the same class. function nung principal object but yung accession if
o Specifically chosen and physically separated tinanggal mo, (may effect sa principal object) hindi mo na
from other similar things. magagamit or ma-eenjoy nang maayos yung principal
Example: object.
4. I will give you a Toyota vios with plate number ABC123. o Tools sa loob ng sasakyan: accessory
- Naging mas specific with the plate number kasi bawat - Removal will not damage the whole thing
kotse ay may plate number but sya lang yung may
number na ganon. REMEDIES OF THE CREDITOR
5. I will give you a house located at 54B Scout Tuazon,
- If the debtor fails to perform his obligations to deliver a
Quezon City. (Specific because of the location)
determinate thing:
6. I will give you the pen that I am holding right now. - Kahit
o To compel the debtor to make the delivery
hindi mo pangalanan, but you are pertaining to a specific
o To demand damages from the debtor
object.
- If someone owes you something specific but doesn't give
it to you, you have two options to make things right:
GENERIC o Ask for the thing: You can make them give you
- Identified only by its species. The debtor can give what they owe.
anything of the same class as long as it is of the same o Ask for payment: You can also ask them to pay
kind. you money instead, to make up for what they
Example: I will give you a red car. owe you.
- Hindi tumupad yung dealer, you can let somebody - Yan lang option mo because it is a determinate thing,
deliver a red car for you tapos yung nag deliver ng red car hindi pwedeng bumili sa iba kasi specific yon
sayo, pwedeng sya yung maningil dun sa dealer a pwede - If the debtor fails to perform his obligation to deliver a
din singilin ng damages generic thing:
o To ask that the obligation be complied with at
ARTICLE 1166 the expense of the debtor.
THE OBLIGATION TO GIVE A DETERMINATE THING INCLUDES  Sa iba na bibili, pero si seller na ang
THAT OF DELIVERING ALL ITS ACCESSIONS AND ACCESSORIES, magsshoulder ng expenses
EVEN THOUGH THEY MAY NOT HAVE BEEN MENTIONED o To demand damages from the debtor.
- If you're supposed to give someone a particular item,  Pwede mong hanapin sa ibang seller
you're also responsible for giving them anything extra yung bagay, kasi meron pang same
that naturally comes with it, even if you didn't specifically kind sa iba.
mention those extras before. - If the debtor fails to perform his obligation in obligations
to do:
ACCESSIONS o If the debtor fails to perform the obligation or
- Signifies all of those things which are produced by the performs it but contravenes the tenor thereof,
thing which is the object of the obligation as well as all of the creditor may have the obligation executed
those which are naturally or artificially attached thereto at the expense of the debtor or he may also
o Includes things that come from the main thing demand damages from the debtor.
itself and things that are added to it.  Nag-usap kayo ng karpintero na
- ATP – it should be attached (steering wheel), produced magpapagawa ka ng bahay, pero
(fruits), incorporated (nakakabit sa whole thing) biglang ayaw nya na. As a customer
pwedeng sa ibang karpintero mo na
 ipagawa pero yung charges shoulder o If someone was supposed to do something but
na nung unang karpintero. Pero kung didn't do it, they have to pay to get it done.
hindi ka makahanap ng iba, pwede o Personal obligation
mong singilin sa damages. Hindi mo o You need to qualify
siya pwedeng pilitin gawin yung - This same rule shall be observed if he does it on
bahay kung labag na sa loob niy dahil contravention of the tenor of the obligation.
it is a violation of his right against - It may be decreed that what has been poorly done be
involuntary servitude. undone.
o If the debtor performs the obligations but does o The same applies if they do it against what they
it poorly, the creditor may have the same be were supposed to do. The work done poorly
undone at the debtor’s expense or he may also might need to be reversed.
demand damages from the debtor. - Provides for the right of the creditor or oblige on positive
 If the person who owes you personal obligation in case of non-performance by the
something completes their task but debtor or obligor of his obligation to do.
does it poorly, you have two options: o This explains the rights of the creditor when
 Request a redo: You can the debtor doesn't do what they were
ask them to fix their work supposed to do.
and cover the costs - Substituted performance is sometimes not allowed
themselves. because you hire someone because of their qualification
 Ask for payment: You can and unique skills
also ask them to pay you Let's say you hired a painter to paint your house. You both agreed
money to compensate for that the job should be completed within a week. However, after a
the poor quality of their week has passed, the painter hasn't even started the work.
work.
- If the debtor does what has been forbidden him: According to the rule mentioned, since the painter has not fulfilled
o The creditor may demand that what has been their obligation to paint your house, you have the right to take
done be undone but at his expense. action.
o He may also demand damages from the debtor.
You can choose to do one of two things:
Remedies of the Creditor in Obli to Give Spec Gen
Demand delivery of the (generic) thing from / / 1. Have the work done at their cost: You can hire another
the debtor (specific performance) (1165) painter to complete the job, and the original painter
would have to cover the expenses.
Demand delivery of the generic thing from a X /
2. Demand damages: You can also ask the original painter
third person at the cost of the debtor (1165)
to compensate you for the inconvenience caused by not
Creditor may obtain the generic thing X /
completing the work on time.
himself and charge the cost to the debtor
(substituded performance) This rule gives you the power to make sure that the obligations are
Demand damages in case of fraud, / / fulfilled or that you're adequately compensated if they aren't.
negligence, delay, or contravention of the
tenor of the obligation (1170)
ARTICLE 1168
Rescission w/ damages in reciprocal obli / / WHEN THE OBLIGATION CONSISTS IN NOT DOING, AND THE
(1191) OBLIGOR DOES WHAT HAS BEEN FORBIDDEN HIM, IT SHALL ALSO
BE INDONE AT HIS EXPENSE
Duties of the Debtor in Obli to Give Spec Gen
- Explains that if someone is obligated to not do
Standard diligence (1163) / X
something, but they go ahead and do it anyway, they are
Deliver the fruits of the thing (1164) / X
responsible for undoing their action at their own cost.
Deliver the specific thing (1165) / / - Vandalisms during the time of Isko
Deliver the accessions and accessories of / X
the thing (1166) RIGHTS OF THE CREDITOR OR OBLIGEE IN PERSONAL
Pay damages in case of fraud, negligence, / / OBLIGATIONS
delay, or contravention of the tenor of the
POSITIVE PERSONAL OBLIGATIONS OR OBLIGATION “TO DO”
obligation (1165, 1170)
(ART 1167)
ARTICLE 1167 The obligee can:
IF A PERSON OBLIGED TO DO SOMETHING FAILS TO DO IT, THE 1. Have the obligation performed or executed at the
SAME SHALL BE EXECUTED AT HIS COST expense of the obligor (except when the prestation
consists of an act where the personal and special
THIS SAME RULE SHOULD BE OBSERVED OF HE DOES IT IN qualification of the obligor is the principal motive for the
CONTRAVENTION OF THE TENOR OF THE OBLIGATION. establishment of the obligation. In such case the remedy
FURTHERMORE, IT MAY BE DECREED THAT WHAT HAS BEEN is an action for damages under Art. 1170)
POORLY DONE BE UNDONE o Make them do it at their expense: The obligee
can force the person owing to do the task and
 pay for it. (Unless the task needs their specific - Neither party incurs in delay if the other does not comply
skills.) or is not ready to comply in a proper manner with what is
2. Ask that what has been poorly done be undone incumbent for him.
o Fix bad work: If the job is done poorly, the o If one person doesn't fulfill their obligation
obligee can ask for it to be corrected. properly, the other person isn't considered
3. Recover damages under Art. 1170 late.
o Get paid for harm: The obligee can also ask for - From the moment one of the parties fulfills his
compensation if there's harm or loss under obligation, delay by the other begins.
Article 1170. o Once one party fulfills their obligation, the
other party is then considered late if they
NEGATIVE PERSONAL OBLIGATIONS OR OBLIGATION “NOT TO haven't done their part.
DO” (ART.1168) - Contract of sale: Bumili ka ng kotse tas bayad mo na,
kaso di pa dinideliver yung car sayo, delaer is considered
If the obligor does what has been forbidden him, the oblige shall
to be in delay without the need of making any demand
have the following remedies:
- Pag delayed yung debtor liable na sya for interest and
1. Have it undone at the expense of the obligor; and
damages
o Undo at the obligor's cost: The obligee can
make the person who did the forbidden thing
REQUISITES:
reverse their action, and the cost is on them.
1. OBLIGATION IS ALREADY DUE AND LIQUIDATED
2. To ask for damages under Art. 1170
- Pag sinabi ko na yung interest na babayaran is 6% of the
o Claim damages: The obligee can also ask for
principal amount kahit di ko sinabi yung principal
compensation for any harm or loss suffered
amount, madedetermine mo parin
under Article 1170.
- Pag sinabi ko na ung interest na babayaran mo for 100
thousand pesos is 6% of whatever profit my company will
ARTICLE 1169
earn in 2025, that is unliquidated kasi pano
THOSE OBLIGED TO DELIVER OR TO DO SOMETHING INCUR IN
madedetermine exact amount
DELAY FROM THE TIME THE OBLIGEE JUDICIALLY OR
2. CREDITOR MAKES A JUDICIAL OR EXTRAJUDICIAL DEMAND
EXTRAJUDICIALLY DEMANDS FROM THEM THE FULFILLMENT OF
- Judicial: nagfile ka na ng kaso sa korte to demand the
THEIR OBLIGATION
collection of the loan or the performance of an obligation
- If someone owes you something and you ask them to - Extrajudicial: outside the court
give it or do it, they're considered late from that point if 3. THE DEBTOR DOES NOT COMPLY DUE TO FRAUD , FAULT,
they don't fulfill their obligation. OR NEGLIGENCE
- Due na yung utang kaso ayaw magbayad ni debtor, as a
HOWEVER, THE DEMAND BY THE CREDITOR SHALL NOT BE general rule, no demand = no delay
NECESSARY IN ORDER THAT DELAY MUST EXIST:
1. When the obligation or the law expressly so declare; or
DELAY
- Payment of taxes. Every 2nd week of April. Di na
need magpadala ng demand letter ng BIR sa mga - Begins from the time the oblige judicially or
payer para magbayad sila ng tax dahil sabi ng batas extrajudicially demands from the obligor the
di na need ng demand letter performance of the obligation.
2. When from the nature and the circumstances of the
obligation it appears that the designation of the time ARTICLE 1170
when the thing is to be delivered was a controlling THOSE WHO IN THE PERFORMANCE OF THEIR OBLIGATIONS ARE
motive for the establishment of the contract; or GUILTY OF FRAUD, NEGLIGENCE, OR DELAY, AND THOSE WHO IN
- Nakasulat sa contract na due and demandable yung ANY MANNER CONTRAVENE THE TENOR THEREOF, ARE LIABLE
utang after 1 year, pag nakasulat don that the FOR DAMAGES
creditor does not need to send a demand letter to
put the debtor in delay, matik magiging in delay sya
FRAUD
once dumating yung due date
o If the specific timing for delivering something - Intentional or conscious design to evade the normal
was a really important reason for making the fulfillment of the existing obligations
deal, then delay can exist even without a - Panloloko
formal request for it.
3. When demand would be useless, as when the obligor has DEFAULT
rendered it beyond his power to perform. - Delay with the cause of malice or negligence
- Umorder kayo ng isang bday cake, di na need ng
demand letter kasi time is of the essence CONTRAVENTION OF THE TENOR OF THE OBLIGATION
o If it's impossible for the person who owes to
- Doing an act that is contrary to the stipulations of the
fulfill the obligation, asking them won't make a
parties
difference.

RECIPROCAL OBLIGATIONS INJURY

- Legal invasion of a legal right
 - If victim ung mismong proximate cause of injury, he
DAMAGE should not be allowed to recover
o May taong tumawid sa expressway tas
- Is the hurt, loss, or harm which results from the injury
nainjure, di liable ung nakasagasa kasi ung
taong tumawid mismo ung proximate cause
wala din contributory negligence

DAMAGES ARTICLE 1173

- Damages are the recompense or compensation awarded THE FAULT OR NEGLIGENCE OF THE OBLIGOR CONSISTS IN THE
for the damage suffered OMISSION OF THAT DILIGENCE WHICH IS REQUIRED BY THE
NATURE OF THE OBLIGATION AND CORRESPONDS WITH THE
BREACH OF CONTRACT CIRCUMSTANCES OF THE PERSON, OF THE TIME AND OF THE
- Unang una dapat may contractual relations kayo. Pag PLACE. WHEN NEGLIGENCE SHOWS BAD FAITH, THE PROVISIONS
meron kayo neto, and any of the parties violated the OF ARTICLES 1171 AND 2201, PARAGRAPH 2, SHALL APPLY.
terms and conditions of the contract, pwede syang
maging liable for the payment of damages IF THE LAW OR CONTRACT DOES NOT STATE THE DILIGENCE
- Existence of a perfected contract, breach by the WHICH IS TO BE OBSERVED IN THE PERFORMANCE, THAT WHICH
contracting party IS EXPECTED OF A GOOD FATHER OF A FAMILY SHALL BE
REQUIRED.
ARTICLE 1171 - Article 2201 – refers contracts and quasi-contracts
RESPONSIBILITY ARISING FROM FRAUD IS DEMANDABLE IN ALL - Debtor who acted in good faith and in bad faith
OBLIGATIONS. ANY WAIVER OF AN ACTION FOR FUTURE FRAUD - Pag walang nakasulat sa contract standard diligence lang
IS VOID. need
- Article 6 NCC – rights granted by law may be waived
provided that such waiver is not contrary to the public GOOD FAITH
interest or public order or prejudicial to a third person - State of mind denoting honesty
- Waiver of an action for future fraud is void because it - Hindi nya alam na mali
gives license to a perpetuate fraud liability - Hindi intention ng tao na makasakit ng kapwa nya
- Free and harmless flaws: mga pinapapirma ng school pag - Magbabayad ka na ng credit card, tas yung bill nyo
fieldtrip na di sila liable in case something happens to us 15,550, kaso Malabo mata mo naoverlook mo ung isang
- Actions from past frauds may be waived because it is 5, ang binayad mo lang is 15,500 so kulang ng 50 kaya
equivalent to pardon considered ka to be in default by the credit card
o Nagkamali yung accused, the complainant does company sinisingil ka ng finance charge. You are
not want anymore to file a case to the person considered a negligent debtor in good faith
who injured them
BAD FAITH
WAIVER - Imports a dishonest purpose or some moral obliquity or
- Voluntary relinquishment or abandonment, express, or or conscious doing of a wrong that partakes of the nature
implied, of a legal right or advantage. of fraud
- Rights may be waived , unless the waiver Is contrary to - Motivated by ill will
law, public order, public policy, morals or customs, or - Nagbebenta ka ng itlog tas alam mong luma na mga itlog
prejudicial to a third person with a right recognized by mo pero binenta mo parin at a regular price. Ikaw ay
law. isang negligent (badbitch) debtor in bad faith
- Must be clear or else it will not be valid and effective
General Rule: Diligence expected of a good father of a family
ACTION
- Civil or criminal judicial proceeding Exceptions: Law and Stipulation
- An ordinary proceeding in a court of justice
ARTICLE 1174
ARTICLE 1172 EXCEPT IN CASES EXPRESSLY SPECIFIED BY THE LAW, OR WHEN IT
RESPONSIBILITY ARISING FROM NEGLIGENCE IN THE IS OTHERWISE DECLARED BY STIPULATION, OR WHEN THE
PERFORMANCE OF EVERY KIND OF OBLIGATION IS ALSO NATURE OF THE OBLIGATION REQUIRES THE ASSUMPTION OF
DEMANDABLE, BUT SUCH LIABILITY MAY BE REGULATED BY THE RISK, NO PERSON SHALL BE RESPONSIBLE FOR THOSE EVENTS
COURTS, ACCORDING TO THE CIRCUMSTANCES WHICH COULD NOT BE FORESEEN, OR WHICH, THOUGH
FORESEEN, WERE INEVITABLE.
- Contributory negligence
o The court may mitigate or reduce the award of - Unless the law clearly says otherwise or it's written in an
agreement, people won't be held responsible for things
damages because the victim who is partly
that couldn't have been expected or that, even if
responsible for his own injury should not be
expected, were bound to happen due to the nature of
entitled to full damages but must
the situation.
proportionately bear the consequences of his
own negligence
 - Kunware bumili ka kotse sa dealership tapos sa Saturday bayaran na 1,000 lang yung inaabot mo. Ang tamang pag
mo na makukuha kaya lang Sunday na wala pa tapos resibo ay yung 100 ay bayad don sa interest at yung 900
bumagyo binaha yung sasakyan. ay bayad sa principal. Hindi mo pwedeng resibo na yung
o Liable for obligation parin yung dealership kasi 1,000 lang (yung principal lang) dahil may nag-aarise na
kahit may fortuitous event, delayed sila eh. isang presumption: na dahil ini-indicate mo na ang
payment, yung 1,000 ay para sa buong payment ng
FORTUITOUS EVENT principal, iniimply mo na bayad na yung interest, which in
reality hindi pa bayad interest. Logic states na una mo
- Events that cannot be foreseen, or which, though
dapat bayaran yung interest bago yung principal.
foreseen, is inevitable
o Kung magresibo ka ng 1,000 na for principal
lang, ilagay mong “Received 1,000 for the
payment of principal but the interest is not yet
ARTICLE 1175
paid.” , para hindi mag-arise yung presumption
USURIOUS TRANSACTIONS SHALL BE GOVERNED BY SPECIAL
- The receipt of a later installment without reservation as
LAWS.
to prior installments, shall give rise to the presumption
- Usury is contracting for or receiving interest in excess of that prior installments have been paid.
the amount allowed by law for the loan or use of money, - ex. I have a boarding house, per room is 5,000 per
goods, chattels or credits. month. Yung isang nagdorm, tatlong buwan na hindi
- Usury is now legally non-existent. Parties are now free to nakapagbayad, January-March. Then nung nakasalubong
stipulate any amount of interest. This is due to Central mo siya, nagbayad siya ng 5,000. Under the law, ang
Bank Circular No. 905 that took effect on January 1, 1983. pinaka tamang buwan para sa resibo ng 5,000 ay para sa
- It does not, however, give absolute right to the creditor buwan ng January. Kasi kung ang nilagay mo na ang
to charge the debtor interest that is “iniquitous or bayad niya ay para sa February or March, it gives rise to
unconscionable.” (wala nang limit sa interest ngayon the presumption: na dahil nagreresibo ka na para sa
pero wag naman yung masyadong abusado) March, bayad na siya ng January at February.
- Court has the power to reduce interest rate if it is o Kung gagawin mong for March yung bayad sa
shocking resibo idagdag mo na January and February has
- 5-6 scheme (u borrow 5k from the lender and u return not yet been paid. Para hindi mag give rise sa
6k), interest is earned monthly (20% interest), it is a assumption na bayad na yung ibang buwan.
usurious transaction because interest is exorbitant - The foregoing are mere disputable presumptions (not
conclusive) and the creditor may rebut such with clear
USURIOUS and convincing evidence to the contrary.
- Refers to practices or transactions involving excessively
high interest rates on loans or lending, often to the point CONCLUSIVE PRESUMPTION
of being considered exploitative or unfair. - Presumption remains regardless of your arguments
o Ignorance from law excuses no one (Article 3)
ARTICLE 1176 o As citizens, you are presumed to know the law
THE RECEIPT OF THE PRINCIPAL BY THE CREDITOR WITHOUT
of the country , even foreigners
RESERVATION WITH RESPECT TO THE INTEREST, SHALL GIVE RISE
- When the presumption becomes irrebuttable upon the
TO THE PRESUMPTION THAT SAID INTEREST HAS BEEN PAID
presentation of the evidence and any evidence tending
to rebut the presumption is not admissible
THE RECEIPT OF A LATER INSTALLMENT OF A DEBT WITHOUT
- This means that in certain situations, once a presumption
RESERVATION AS TO PRIOR INSTALLMENTS, SHALL LIKEWISE
is established and evidence is presented, any attempt to
RAISE THE PRESUMPTION THAT SUCH INSTALLMENTS HAVE BEEN
challenge or dispute that presumption is not allowed,
PAID
and any counter-evidence that aims to challenge it
- Disputable presumptions cannot be considered.
- 2 kinds: Conclusive and Disputable
- 2ND PAR: there is a monthly amortization, the debtor paid
DISPUTABLE PRESUMPTION
the 7th monthly amortization and the creditor accepted it
but did not react, dahil walang reaction it is presumed - You can present arguments to rebut such presumption
that the debtor paid his previous installments (1-6), to be (akala)
disputed, the creditor could write a demand letter for the - Receipt of the principal in relation to the interest
debtor to pay the previous installments, if debtor denies o If debtor pays his loan and only pays the
then creditor can challenge the debtor to present a proof principal, it is also presumed that he also paid
of payment, no proof = no payment of previous the interest
installments o May loan si trisha na 10000 kay lianne with
12% interest annum, nagbayad na trisha ng
Presumptions on receipts of principal and installment payments 10000 tas no reaction si lianne it is then
- The receipt of the principal without reservation as to presumed that trisha already paid the interest
interest, shall give rise to the presumption that the of the loan kasi di sya umimik pero pwede mag
interest has been paid rebut si lianne pero as soon as possible dapat di
- ex. Pinautang kita 1,000 ang usapan natin after one year ung paaabutin ng prescriptive period. Pwede si
ay 100 so ang total na utang mo sakin is 1,100. Nung lianne magwrite ng demand letter na di pa
 nagbayad ng interest si trisha tas pwede - Asking the court to rescind or to impugn all the acts
maghingi ng proof of payment kung di sya which the debtor may done to defraud the creditors
nakapag present disputed na - Minsan may loko-lokong debtors na, pinapasok sa sa
deed of sale yung properties nila para hindi mo ma-
attach or mahila. Pwede mo i-request sa korte na i-
impugn or i-cancel yung mga kontrata na pinasok nung
ARTICLE 1177 loko-lokong debtors sa ibang tao, para bumalik yung
THE CREDITORS, AFTER HAVING PURSUED THE PROPERTY IN ownership sa debtor at pwede mo na ma-attach.
POSSESSION OF THE DEBTOR TO SATISFY THEIR CLAIMS, MAY
EXERCISE ALL THE RIGHTS AND BRING ALL THE ACTIONS OF THE Before using the remedy of accion pauliana, you need to exhaust
LATTER FOR THE SAME PURPOSE, SAVE THOSE WHICH ARE the three remedies first, making it your last resort, because in
INHERENT IN HIS PERSON; THEY MAY ALSO IMPUGN THE ACTS accion pauliana, there is a third party affected.
WHICH THE DEBTOR MAY HAVE DONE TO DEFRAUD THEM.
- Creditors can take over the debtor's rights and legal RELATIVITY OF CONTRACTS
actions related to recovering their money, except for - A contract can only bind the parties who have entered
things specific to the debtor's personal self. They can also into it or their successors who have assumed their
challenge any tricky actions the debtor took to cheat personality or their juridical position and that, as a
them. consequence, such contract can neither favor nor
- Refers to the remedies of the creditor prejudice a third person.
o Somebody obtained a loan from you, if the - Ang pwede lang maapektuhan ng isang kontrata ay kung
debtor doesn’t pay you, there are 3 remedies: sino lang mismo ang pumasok doon at yung successors
 Exhaustion of property of the debtor nila. Ang hahabulin lang nung kontrata ay kung sino ang
through levying attachment and nakapirma.
execution upon all the property of - Hindi mo pwedeng manahin ang utang ng ibang tao.
the debtor except such are exempt Under the relativity of contracts, hindi mo dapat utang
from execution yon. Lumalabas lang na utang ang minana mo dahil konti
 ABC bank extended a 300 million na lang ang matitira sa assets niya pagkabayad sa mga
clean loan to XYZ corporation, clean utang ng lolo mo.
loan – unsecured and high risk, pag di o Bago makuha ng successors ang mana sa assets
nagbayad wala kang pwede habulin ng lolo nila, kailangan bayaran muna yung
kasi clean loan pero pwede gawin utang ng lolo noong buhay pa siya. Lahat ng
yung ay magpadue diligence remedy hindi mababayaran na liabilities ng lolo niya,
sa bullet before to. kailangan i-write off na ito ng creditors. Hindi
ka dapat habulin o hindi dapat maapektuhan
Different remedies of the creditor to enforce payment of his yung personal assets mo para pambayad sa
claims against the debtor utang ng lolo mo.
o Yung ibang tao na binabayaran yung utang ng
Specific performance kamag-anak nila, it is not a civil obligation but
- Exact fulfillment of the obligation by specific or substitute more of a moral obligation.
performance with a right to damages in either case
- If may utang sayo yung isang tao, pwede ka mag-file ng EXCEPTIONS ARE INTRANSMISSIBLE RIGHTS AND OBLIGATIONS
collection case at yung judge ang mag-uutos sa debtor na - By their nature as when the special or personal
magbayad ng utang niya sayo qualification of the obligor constitutes one of the
principal motives for the establishment of the contract
- By stipulation of the parties, as when the contract
Attachment
expressly provides that the obligor shall perform an act
- Pursue the property in the possession of the debtor,
by himself and not through another
except those exempt by law Hihilain ng korte ang mga
- By provision of law, as in the case of those arising from a
ari-arian ng debtor, ibebenta para ikaw ay mabayaran
contract of partnership or of agency
- Properties exempt by law: Family home unless ito yung
o A, B and C ay partners sa isang partnership.
nakasangla, gamit sa paghahanapbuhay, clothing and
Namatay si A, hindi pwedeng successor yung
kailangan mag-iwan ng provision for at least 3 months.
anak niya. Hindi transmissible ang karapatan
maging miyembro sa isang partnership dahil
Accion subrogatoria
ang isang partnership ay dapat may mutual
- To be subrogated to all the rights and actions of the
trust at confidence.
debtor save those which are inherent in his person
- Si A may utang sayo, si B naman may utang kay A.
ARTICLE 1178
Pwedeng utusan na lang ng korte si B na direktang
SUBJECT TO THE LAWS, ALL RIGHTS ACQUIRED IN VIRTUE OF AN
magbayad sayo, this process is called process of
OBLIGATION ARE TRANSMISSIBLE, IF THERE HAS BEEN NO
garnishment
STIPULATION TO THE CONTRARY
Accion pauliana - If you have to do something because of an agreement,
- Remedy of last resort like a promise or a contract, those things you're
 supposed to get can be given to someone else if the rules - An obligation where its demadability or creation depends
allow it, unless the agreement says you can't. on the fulfillment of a condition
- Depende sa condition
General Rule: All rights acquired by virtue of an obligation are - Must be future and uncertain, past but unknown and
transmissible. (the things you’re supposed to get can be given to must not be impossible
someone else if the rules allow it) - Death is a period not a condition kasi lahat tyo
mamamatay kaya certain
Exceptions: - Pwede mag give rise sa obligation or existing obligation
1. When prohibited by law ay mawala
- Contract of partnership (fiduciary), agency, and
commodatum Classifications of Conditions:
- Upon the death of the partner, contract will come to A condition must be both a future and uncertain event.
dissolution (If it is a future but certain event, it is not a condition but is called a
- Kunware may partnership kayo sa business tas namatay period)
ka, di mo pwede itransfer yung partnership sa anak mo - Suspensive - a condition where the happening of which
or asawa will give rise to the obligation, also known as condition
- Sa agency need may consent antecedent or condition precedent.
- Commodatum: pinahiram book ng oblicon sayo (not o Condition na kapag nangyari na yung bagay na
consumable) so need mo isalo. Yung hiniram mong book yon (yung condition na yon), doon pa lang
di mo pwedeng ipahiram sa iba except immediate family magkakaroon ng obligation yung nangako
members o Ex.: “I will give you ₱20,000 kapag pumasa ka
2. When prohibited by stipulation of parties sa paparating na CPA na Board Exam.” Ang
tawag sa condition ay suspensive condition
ARTICLE 1179 dahil yung obligation sayo na bibigyan ng
EVERY OBLIGATION WHOSE PERFORMANCE DOES NOT DEPEND ₱20,000 ay nakadepende pa kung matutupad
UPON A FUTURE OR UNCERTAIN EVENT, OR UPON A PAST EVENT mo yung condition.
UNKNOWN TO THE PARTIES, IS DEMANDABLE AT ONCE o Kailan lang ako magkaroon ng obligation na
EVERY OBLIGATION WHICH CONTAINS A RESOLUTORY magbigay ng ₱20,000? KAPAG NAPASA MO NA
CONDITION SHALL ALSO BE DEMANDABLE, WITHOUT PREJUDICE YUNG PAPARATING NA BOARD EXAM. pag
TO THE EFFECTS OF THE HAPPENING OF THE EVENT hindi ka pumasa, walang obligation na
- If you have to do something and it's not based on magbigay ng ₱20,000
something uncertain in the future or something that o Kapag nangyari o natupad yung condition,
already happened but you didn't know about, you have doon pa lang magkaroon ng obligation
to do it right away. - Resolutory - a condition where the happening of which
- Even if there's a condition that could end the obligation extinguishes the obligation, also known as condition
(like "if this happens, then you don't have to do it subsequent. The obligation is demandable immediately
anymore"), you can still ask for it to be done, while but shall be extinguished upon the happening of the
keeping in mind that if the condition happens, things Resolutory condition.
might change. o Kabaliktaran ng suspensive condition
o Kapag natupad na yung Resolutory condition,
6 PRIMARY CLASSIFICATIONS OF OBLIGATION titigil na yung obligation ko sayo
o Ex.: “Anak, bibigyan kita ng sustento every
month hangga’t hindi ka pa nakapagtatapos ng
PURE OBLIGATION
college.” Tawag dito ay Resolutory condition
- Is one without a term or condition and is demandable dahil nakadepende na kung titigil yung
immediately. (no condition and date) obligation ko sayo kung ikaw ay makakatapos
- “upon demand” ng college. Kung hindi man makakatapos ng
- This is an obligation that doesn't have any waiting time or college, hindi titigil yung obligation ko na
special conditions attached. You can ask for it to be magbigay ng allowance every month.
fulfilled right away. o Kailan mo ko pwede kulitin tungkol don sa
- Article 1179. Every obligation whose performance does allowance? AGAD-AGAD. (Demandable
not depend upon a future or uncertain event, or upon a immediately)
past event unknown to the parties, is demandable at o Pag nangyari na yung condition, titigil na yung
once. obligation.
o Ex. Sabi ko sayo, “Bibigyan kita ng ₱20,000.” Ito - Potestative - a condition that depends upon the will of
ay isang pure obligation, walang kasunod na one of the contracting parties
condition, walang hinihintay na period of time o Either will ng debtor or will ng creditor
na dumaan muna. o Article 1182. When the fulfillment of the
o Kailan mo ko pwedeng hingan ng ₱20,000? condition depends upon the sole will of the
IMMEDIATELY DEMANDABLE debtor, the conditional obligation shall be void.
o Ex.: “Bibigyan kita ng ₱20,000 kapag gusto ko
CONDITIONAL OBLIGATION na.” Ako yung magbibigay/ debtor, ikaw yung
 tatanggap/creditor, pero yung condition ay muna lalabas ng bahay ngayong weekend.”
nakadepende sa will ko. Something negative: hindi mo dapat gawin.
o This is called a Purely Potestative Condition, Hindi ka dapat lumabas ng bahay, pag natupad
dahil nakadepende sa will ng debtor, which is mo yung condition, mag-arise na yung
considered void. Void dahil possible na hindi obligation ko na magbigay
magkatotoo ang condition, dahil puwedeng
gumawa ng paraan si debtor na hindi
magkatotoo yung condition para hindi
magkaroon ng obligation. May risk na pwedeng ARTICLE 1180
hindi mag-arise yung obligation dahil WHEN THE DEBTOR BINDS HIMSELF TO PAY FORMS OF PROMISE
nakadepende sa debtor. OR COMMITMENT, THE OBLIGATION IS DEEMED WITH A PERIOD
o Allowed pag yung condition nakadepende sa OR TERM. THE MOMENT OF PAYMENT IS DEPENDENT UPON THE
will ng creditor WILL OF THE DEBTOR.
 Ex.: “Bibigyan kita ng ₱20,000 kapag - Pag sinabi ng debtor na magbabayad siya ng kanyang
gusto mo na.” Kapag sinabi mong utang when his means permit him to do so, hindi ito
gusto mo na, mag aarise na yung considered a condition, but a period
obligation ng debtor. - Terms for when his means permit him to do so: Little by
- Casual - a condition that depends upon chance or upon little, as soon as possible, from time to time, at any time I
the will of a third person have the money
o Ex.: “Bibigyan kita ng ₱20,000 kapag nag- - Ex.: “I will pay you ₱5,000 when my means permit me to
champion sa NBA ang Los Angeles Lakers.” do so.” Babayaran kita kapag kaya ko na
Nakadepende upon chance, walang assurance o one with a period kasi isa siyang future and
na sila ang magiging champion. certain event
o Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka o magkaiba yung kapag gusto ko na (purely
ng nililigawan mo.” Nakadepende sa will ng potestative - void because it depends on the
nililigawan mo, kapag sinagot ka na, mag aarise will of the debtor) sa kapag kaya ko na (hindi
na yung obligation na bigyan ka ng ₱20,000. pwedeng never niya kakayanin ng debtor, hindi
- Mixed - a condition that depends partly upon the will of physically possible na mangyari na never niyang
one of the parties and partly upon the will of a third kayanin kasi ang isang tao hanggang siya ay
person. nabubuhay, meron siyang pag-asa na kayanin
o Ex.: “Bibigyan kita ng ₱20,000 kapag nag-apply mabayaran ang utang)
ka sa SGV at natanggap ka.” Dalawa yung
condition, nakadepende sayo kung mag-apply EXCEPTION:
ka at nakadepende sa HR ng SGV kung 1. When prohibited by law
tatangapin ka. 2. When prohibited by stipulation of parties
- Possible - one that is capable of fulfillment by nature or
law PERIOD
o Ex.: “Bibigyan kita ng ₱20,000 kapag natapos
- A time of definite length
mong basahin yung libro ni Atty. De Leon na
- Definite, having distinct or certain limits; determinate in
Oblicon.” Possible mo makuha kapag natapos
extent of character; limited; fixed – as definite period
mo na, medyo mahirap pero possible.
- Impossible - one that is not capable of fulfillment in its
ARTICLE 1181
nature, or impossible in law; the effect would be to
IN CONDITIONAL OBLIGATIONS, THE ACQUISITION OF RIGHTS , AS
nullify both the condition and the obligation.
WELL AS THE EXTINGUISHMENT OR LOSS OF THOSE ALREADY
o Imposibleng gawin o bawal sa batas
ACQUIRED, SHALL DEPENDS UPON THE HAPPENING OF THE
o impossible by nature: “Bibigyan kita ng ₱20,000
EVENT WHICH CONSTITUTES THE CONDITION.
kapag nakapag-dunk ka mula sa half court
line.” Walang bisa ang ganitong condition dahil - If obligations are conditional, getting or losing rights
parang sinabi mo na rin na hindi ka depends on the event that the condition is about.
makakapagbigay dahil hindi naman talaga
kakayanin. SUSPENSIVE CONDITION
o impossible by law: “Bibigyan kita ng ₱20,000 - Will give rise to an obligation
kung papatayin mo yung kaaway ko.” Possible
pero sa mata ng batas impossible o mali kaya RESOLUTORY CONDITION
considered na null o void.
- Will extinguish the obligation
- Positive - a condition that is supposed to happen or
occur or something that must be done
o Ex.: “Bibigyan kita ng ₱20,000 kapag nilinis mo On January 15, 2004, Mr. X sold his property to Pandayan Inc. The
ang kwarto mo.” Kailangan mong gawin ● sale agreement stated that if the buyer couldn't get the property
Negative - a condition characterized by an rezoned, the sale would be canceled, and both parties would
event not supposed to happen or something return to their original state.
that must not be done.
○ Ex.”Bibigyan kita ng ₱20,000 kapag hindi ka
Later, after the buyer had the property, their rezoning request was MIXED
denied. So, the property sale had to be reversed, and the money - A condition that depends partly upon the will of one of
paid to Pandayan Inc. had to be returned. the parties and partly upon the will of a third person.
- Ex.: “Bibigyan kita ng ₱20,000 kapag nag-apply ka sa SGV
at natanggap ka.” Dalawa yung condition, nakadepende
sayo kung mag-apply ka at nakadepende sa HR ng SGV
kung tatangapin ka.

ARTICLE 1182 POSSIBLE

WHEN THE FULFILLMENT OF THE CONDITION DEPENDS UPON THE
- One that is capable of fulfillment by nature or law
SOLVE WILL OF THE DEBTOR, THE CONDITIONAL OBLIGATIONS
- Ex.: “Bibigyan kita ng ₱20,000 kapag natapos mong
SHALL BE VOID. IF IT DEPENDS UPON CHANCE OR UPON THE WILL
basahin yung libro ni Atty. De Leon na Oblicon.” Possible
OF A THIRD PARTY, THE OBLIGATIONS SHALL TAKE EFFECT IN
mo makuha kapag natapos mo na, medyo mahirap pero
CONFORMITY WITH THE PROVISION OF THIS CODE.
possible.
- If a condition's fulfillment relies on the debtor's own
choice, the conditional obligations are not valid.
IMPOSSIBLE
However, if it's based on luck or the decision of a third
party, the obligations will be carried out according to the - One that is not capable of fulfillment in its nature, or
rules laid out in this code. impossible in law; the effect would be to nullify both the
condition and the obligation.
- Imposibleng gawin o bawal sa batas
POTESTATIVE CONDITION
- impossible by nature: “Bibigyan kita ng ₱20,000 kapag
- One depends upon the will of one of the contracting nakapag-dunk ka mula sa half court line.” Walang bisa
parties ang ganitong condition dahil parang sinabi mo na rin na
- Power in which one of the party realize or prevent hindi ka makakapagbigay dahil hindi naman talaga
- If fulfillment depends exclusively upon the will of the kakayanin.
debtor, the conditional obligation shall be void vice versa - Impossible by law: “Bibigyan kita ng ₱20,000 kung
- Let's say there's a contract where Company A agrees to papatayin mo yung kaaway ko.”
pay Company B a certain amount of money if Company - Possible pero sa mata ng batas impossible o mali kaya
A's CEO decides to do so. If the fulfillment of the considered na null o void.
condition depends solely on the CEO's choice without
any objective criteria, it's a potestative condition and the
POSITIVE
contract might be deemed void.
- A condition that is supposed to happen or occur or
something that must be done
PURELY POTESTATIVE CONDITION
- Ex.: “Bibigyan kita ng ₱20,000 kapag nilinis mo ang
- Ex.: “Bibigyan kita ng ₱20,000 kapag gusto ko na.” Ako kwarto mo.” Kailangan mong gawin
yung magbibigay/debtor, ikaw yung tatanggap/creditor,
pero yung condition ay nakadepende sa will ko.
NEGATIVE
- This is called a Purely Potestative Condition, dahil
nakadepende sa will ng debtor, which is considered void. - A condition characterized by an event not supposed to
Void dahil possible na hindi magkatotoo ang condition, happen or something that must not be done.
dahil puwedeng gumawa ng paraan si debtor na hindi o Ex.”Bibigyan kita ng ₱20,000 kapag hindi ka
magkatotoo yung condition para hindi magkaroon ng muna lalabas ng bahay ngayong weekend.”
obligation. May risk na pwedeng hindi mag-arise yung - Something negative: hindi mo dapat gawin. Hindi ka
obligation dahil nakadepende sa debtor. dapat lumabas ng bahay, pag natupad mo yung
- Ex.: “Bibigyan kita ng ₱20,000 kapag gusto mo na.” Kapag condition, mag-arise na yung obligation ko na magbigay
sinabi mong gusto mo na, mag aarise na yung obligation
ng debtor. ARTICLE 1183
IMPOSSIBLE CONDITIONS, THOSE CONTRARY TO GOOD CUSTOMS
OR PUBLIC POLICY AND THOSE PROHIBITED BY LAW SHALL
CASUAL
ANNUL THE OBLIGATION WHICH DEPENDS UPON THEM. IF THE
- A condition that depends upon chance or upon the will of OBLIGATION IS DIVISIBLE, THAT PART THEREOF WHICH IS NOT
a third person AFFECTED BY THE IMPOSSIBLE OR UNLAWFUL CONDITION SHALL
- Ex.: “Bibigyan kita ng ₱20,000 kapag nag-champion sa BE VALID.
NBA ang Los Angeles Lakers.” Nakadepende upon THE CONDITION NOT TO DO AN IMPOSSIBLE THING SHALL BE
chance, walang assurance na sila ang magiging CONSIDERED AS NOT HAVING BEEN AGREED UPON.
champion.
- If the condition is impossible, goes against what's right,
- Ex.: “Bibigyan kita ng ₱20,000 kapag sinagot ka ng
or breaks the law, any obligation connected to it
nililigawan mo.” Nakadepende sa will ng nililigawan mo,
becomes invalid. But if the obligation can be split, the
kapag sinagot ka na, mag aarise na yung obligation na
part that's not affected stays valid.
bigyan ka ng ₱20,000.
 - If a condition is about not doing something impossible,
it's like it was never agreed upon. When No Period is Stipulated – the rule in second
paragraph of Article 1185 is applicable.
KINDS OF IMPOSSIBLE CONDITIONS
PHYSICAL IMPOSSIBLE CONDITION 2. Yanna promised to give Trisha a parcel of land if Trisha
will marry her daughter Lianne. If Lianne died or married
- Contrary to the law of nature
someone else, the obligation of Yanna to give is
- Trisha will give Yanna a gold necklace if she swims across
extinguished.
the Pacific Ocean.

LEGAL IMPOSSIBLE CONDITION ARTICLE 1185

- Conditions contrary to the law, morals, good customs, THE CONDITION THAT SOME EVENT WILL NOT HAPPEN AT A
public order, or public policy. DETERMINATE TIME SHALL RENDER THE OBLIGATION EFFECTIVE
- If a contract offers a reward for carrying out an illegal FROM THE MOMENT THE TIME INDICATED HAS ELAPSED, OR IF IT
action, like smuggling, the condition becomes legally HAS BECOME EVIDENT THAT THE EVENT CANNOT OCCUR.
impossible due to its conflict with the law and societal
norms. IF NO TIME HAS BEEN FIXED, THE CONDITION SHALL BE DEEMED
FULFILLED AT SUCH TIME AS MAY HAVE PROBABLY BEEN
General Rule: Impossible conditions annul to the obligation which CONTEMPLATED, BEARING IN MIND THE NATURE OF THE
depends upon them. Consequently, both the condition and the OBLIGATION.
obligation are void. - Explains that if a condition is about an event not
happening at a specific time, the obligation starts as soon
Exception: as that time passes or if it's clear the event won't occur.
1. In divisible obligation that part thereof which is not - If no specific time is set, the condition is considered met
affected by the impossible or unlawful condition shall be at the time that was likely intended, taking into account
valid. the nature of the obligation
2. If the condition is negative (not to do an impossible
thing), it shall be considered as not having been agreed The condition that some even will not happen at a determinate
upon. Thus, the obligation is pure and valid. time will make the obligation effective when:
- Considered as not written
- Condition has no effect, seen as straightforward a. The determinate time has elapsed without the event
and unconditional having occured;
- Trisha promised to pay 10,000 if Yanna will not - Illustration: Jun obligated himself to deliver a piece of
assemble a flying chair. land to Mario on the condition that Mario shall not run
3. If the obligation is pre-existing and not depending on the for Vice-Mayor in their municipality within 9 years.
fulfillment of the impossible condition for its existence, - More than 9 years had elapsed without Mario running
only the condition is void. for Vice-Mayor. The obligation to deliver the piece of
land becomes effective.
DIVISIBLE OBLIGATION
- Those which have as their subject a prestation which is b. It has become evident that the event will not occur.
susceptible of partial performance without the essence - Illustration: Jun obligated himself to deliver a piece of
of the obligation being changed. land to Mario on the condition that Mario shall not run
- Task can be partially done without changing the main for Vice-Mayor in their municipality within 9 years.
obligation's essence - Before 9 years had elapsed, the Municipality became
totally submerged by lahar and ceased to be a
ARTICLE 1184 municipality. The residents had to transfer to other
THE CONDITION THAT SOME EVENT HAPPEN AT A DETERMINATE municipalities. In this case, even before the lapse of 9
TIME SHALL EXTINGUISH THE OBLIGATION AS SOON AS THE TIME years it is clear that the obligation has become effective
EXPIRES OR IF IT HAS BECOME INDUBITABLE THAT THE EVENT because of the disappearance of the Municipality. It is
WILL NOT TAKE PLACE. not evident that Mario can never run for Vice-Mayor
- States that if a condition is tied to a specific time, the anymore in that Municipality because it ceased to be
obligation will end either when that time is reached or if one.
it becomes certain that the event won't happen
ARTICLE 1186
Example: THE CONDITION SHALL BE DEEMED FULFILLED WHEN OBLIGOR
1. Yanna promised to give Trisha a parcel of land if Trisha VOLUNTARILY PREVENTS ITS FULFILLMENT.
will marry her daughter, Lianne, this year. If Lianne died - States that if the person obligated intentionally prevents
or married someone else, or Trisha has not still married the condition from being fulfilled, the condition is
Lianne within the said year, the obligation of Yanna to considered met.
give is extinguished.
REQUISITES: - Court is powered to determine retroactive effect of the
1. There is intent on the part of the obligor to prevent the suspensive condition that has been complied with
happening of the condition - This rule is also applicable to obligation to do or not to do
- Trisha promises to pay Lianne $100 if they don't eat any with resolutory condition in accordance with Art. 1190
dessert for a month. Trisha intentionally tries to tempt
Lianne with sweets throughout the month to prevent RETROACTIVE EFFECT AS TO THE FRUITS AND INTERESTS ON
them from fulfilling the condition. OBLIGATION TO GIVE
2. The obligor actually prevents its fulfillment. 1. In Reciprocal Obligation
- In a business deal, a company agrees to supply goods to - There is no retroactive effect. The fruits and interests
another company only if they pay a certain amount during the pendency of the condition shall be deemed to
upfront. However, the first company deliberately fails to have been mutually compensated.
deliver the goods despite receiving the payment, - No backward effect
effectively preventing the fulfillment of the condition. - The fruits and interests during the time the condition is
ARTICLE 1187 pending are seen as having balanced out between the
THE EFFECTS OF A CONDITIONAL OBLIGATION TO GIVE, ONCE THE parties.
CONDITION HAS BEEN FULFILLED, SHALL RETROACT TO THE DAY
OF THE CONSTITUTION OF THE OBLIGATION. NEVERTHELESS, UNILATERAL OBLIGATION
WHEN THE OBLIGATION IMPOSES RECIPROCAL PRESTATIONS
- There is no retroactive effect. The debtor shall
UPON THE PARTIES, THE FRUITS AND INTERESTS DURING THE
appropriate the fruits and interests received, unless from
PENDENCY OF THE CONDITION SHALL BE DEEMED TO HAVE BEEN
the nature and circumstances of the obligation it should
MUTUALLY COMPENSATED. IF THE OBLIGATION IS UNILATERAL,
be inferred that the intention of the person constituting
THE DEBTOR SHALL APPROPRIATE THE FRUITS AND INTERESTS
the same was different.
RECEIVED, UNLESS FROM THE NATURE AND CIRCUMSTANCES OF
- Usually gratuitous
THE OBLIGATION IT SHOULD BE INFERRED THAT THE INTENTION
- This type of obligation is typically given without any
OF THE PERSON CONSTITUTING THE SAME WAS DIFFERENT.
expectation of receiving something in return and is often
gratuitous in nature.
IN OBLIGATIONS TO DO AND NOT TO DO, THE COURTS SHALL
- If Sarah promises to donate $100 to a charity if they
DETERMINE, IN EACH CASE, THE RETROACTIVE EFFECT OF THE
reach a certain fundraising goal, and the goal is met,
CONDITION THAT HAS BEEN COMPLIED WITH.
Sarah is obligated to give the money. Since this is a
- When a conditional obligation to give is fulfilled, its unilateral obligation, there's no retroactive effect. If
effects go back to when the obligation was created. Sarah had already received any benefits, like recognition
- If both parties have obligations, benefits during the for her promise, she gets to keep those unless it's clear
condition balance out. from the situation that she intended otherwise. Such
- If it's one-sided, the debtor keeps what they gained, obligations are often acts of generosity without the
unless the obligation's nature suggests otherwise. expectation of receiving something in return.
- For obligations to do or not do, the courts decide the
retroactive impact of the fulfilled condition. ARTICLE 1188
THE CREDITOR MAY, BEFORE THE FULFILLMENT OF THE
Principle of retroactivity in suspensive condition CONDITION BRING THE APPROPRIATE ACTIONS FOR THE
- It is limited only to the effects of the obligation PRESERVATION OF HIS RIGHT. THE DEBTOR MAY RECOVER WHAT
DURING THE SAME TIME HAS PAID BY MISTAKE IN CASE OF
IN OBLIGATION TO GIVE SUSPENSIVE CONDITION.
- Ince the condition has been fulfilled, it shall retroact to - States that before the condition is fulfilled, the creditor
the day of the constitution of the obligation. The has the right to take legal actions to protect their rights.
condition is only an accidental element of a contract. If the condition is suspensive (waiting for a future event),
Hence, the obligation is still valid even in the absence of the debtor can ask for a refund of any payments made by
such condition. mistake during that waiting period.
- On Jan 2, 2020, Lianne obliges herself to give her only car
to Trisha if she will pass her May 2020 board exams.
Subsequently, Trisha passed the said board exam. By
operation of law, as if Trisha owns the car beginning Jan
2, 2020

ACCIDENTAL ELEMENTS OF A CONTRACT

- Those which exist only when the parties expressly
provide them for the purpose of limiting or modifying the
normal effects of the contract
- Conditions, terms, and modes

IN OBLIGATION TO DO OR NOT TO DO (Personal Obligation)