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An obligation is a juridical
necessity to give, to do or not to do.
Why is obligation
necessity?
juridical
QUASI-CONTRACT - A quasi-contract
is that juridical relation resulting from
lawful, voluntary, and unilateral acts by
virtue of which the parties become
bound to each other to the end that no
one will be unjustly enriched or
benefited at the expense of another.
Elements of Quasi-Contract
1. There must be a lawful, voluntary
and unilateral act; and
2. If no obligation is imposed, one will
be unjustly enriched at the expense
of another.
Distinguish quasi-contract from an
implied contract?
It is important that the act is
unilateral because if there was
mutual agreement, a contract arises
rather than a quasi-contract. Hence,
quasi-contracts
should
be
distinguished from implied contracts
because in the latter, consent of both
parties although not expressly given,
may be inferred from their acts or
declarations. In quasi-contract, there
is no such consent of both parties.
Two Principal Types of QuasiContract
1. NEGOTIORUM GESTIO - is the
voluntary management of the
property or affairs of another without
the knowledge or consent of the
latter.
2. SOLUTIO INDEBITI - is the juridical
relation which is created when
something is received when there is
no right to demand it and it was
unduly delivered through mistake.
When does Negotiorum Gestio arise?
Negotiorum gestio arises whenever
a person voluntary takes charge of
the agency or management of the
3. Indemnification
damages.
for
consequential
Crime
and
CRIME
There is criminal or
malicious intent or
criminal
negligence
The purpose is
punishment
QUASI-DELICT
There
is
only
negligence
The purpose is
indemnification of
the offended party
Affects the public Concerns private
interest
interest
There
are There is only civil
generally
two liability
liabilities, criminal
and civil liability
The guilt of the The
fault
or
accused must be negligence of the
proved
beyond defendant need be
reasonable doubt
proven
by
preponderance of
evidence
Persons liable for obligations arising
from quasi-delicts
Except from the person directly
responsible for the damage incurred,
obligations arising from quasi-delicts
are demandable also against the
following:
1. The father, and, in case of his death
or incapacity, the mother, are liable
for any damages caused by the
minor children who live with them;
2. Guardians are liable for damages
done by minors or incapacitated
persons subject to their authority and
living with them;
3. Owners
or directors
of an
establishment or business are equally
liable for any damages caused by
their employees while engaged in the
branch of the service in which
employed, or on occasion of the
performance of their duties;
CHAPTER 2
Nature and Effect of Obligations
Art. 1163 Every person obliged to give
something is also obliged to take care of
2. Defective Performance
a. By doing something that was not
agreed upon;
b. By partial performance;
c. By poorly or badly performing the
obligation;
d. By delay in the performance, that
is, the defect relates to the time
of performance;
e. By performing the obligation but
not
in
accordance
with
specifications,
terms
and
conditions.
Two Types of Breach
1. Voluntary - if the debtor or obligor in
the performance of his obligation is
guilty of default (mora), or fraud
(dolo), or negligence (culpa), or in
any manner contravenes the tenor
thereof. The obligor is liable for
damages.
2. Involuntary - if he is unable to
comply with his obligation because
of an event which cannot be
foreseen, or which, though foreseen,
was inevitable (fortuitous event).
The obligor is not liable for damage.
Causes of Non-Performance
1. Cause that is attributable to the
obligor or debtor (fraud, malice,
negligence) the obligor or debtor is
responsible.
2. Cause that cannot be attributed to
the obligor or debtor in whole or in
part (fortuitous event) the obligor or
debtor is not responsible.
Art.1169 refers to non-fulfillment of the
obligation by the obligor or creditor
within the time agreed upon or within the
time contemplated by the nature of the
obligation. There is non-fulfillment with
respect to time, and this is called
DELAY or MORA.
Culpa
Culpa
the
source
of
2. As to characteristics
Negligence - the act or omission is
voluntary in character
Fraud - conscious and intentional
proposition to evade the fulfillment of
an obligation
3. As to governing rule
Negligence - Art. 1173 shall also
govern if the act or omission shows
bad faith
Fraud - Art. 1173 par. 1
4. As to waiver of a future action
Other circumstances
mitigate the damages:
can
a. When
the
plaintiff
himself
contravenes the terms of the
contract;
b. Where the plaintiff has derived
some benefit as a result of the
contract;
c. In cases where exemplary
damages are to be awarded,
where the defendant acted upon
advice of counsel;
d. Where the loss would have
resulted in any event;
e. Where upon filing of the action,
the defendant has done his best
to lessen the plaintiff's loss or
injury.
that
1. Unforeseability
2. Inevitability
Remedies
Credit
of
Creditor
to
Protect
CHAPTER 3 - DIFFERENT
KINDS OF OBLIGATIONS
Section 1 - Pure and Conditional
Obligations
Pure Obligations - 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, and
which,
as
a
consequence,
is
characterized by the quality of
immediate demandability.
Conditional Obligations - one whose
effectivity is subordinated to the
fulfillment or non-fulfillment of a future
and uncertain fact or event.
Requisites
Obligations
of
Conditional
1. Suspensive
when
the
fulfillment of the condition results
in the acquisition of rights arising
out of the obligation
Resolutory - when the fulfillment
of the condition results in the
extinguishment of rights arising
out of the obligation.
2. Potestative - when the fulfillment
of the condition depends upon
the will of a party to the obligation
Casual - when the fulfillment of
the condition depends upon
chance and/or upon the will of a
third person
Mixed - when the fulfillment of
the condition depends partly
upon the will of a party to the
obligation and partly upon chance
and/or the will of a third person
3. Possible - when the condition is
capable of realization according
to nature, law, public policy or
good customs
Impossible - when the condition
is not capable of realization
according to nature, law, public
policy or good customs
4. Positive - when the condition
involves the performance of an
act
Negative - when the condition
involves the omission of an act
5. Divisible - when the condition is
susceptible of partial realization
Indivisible - when the condition
is not susceptible of partial
realization
6. Conjunctive - when there are
several conditions, all of which
must be realized
and
1. If an obligation is subject to a
suspensive condition:
a. The acquisition of right shall
depend upon the happening or
fulfillment of the fact or event
whcih constitutes the condition.
b. The obligation shall become
effective only upon the fulfillment
of the condition.
CASUAL
and
III.
POSSIBLE and IMPOSSIBLE
CONDITIONS
1. Possible - when it is capable of
realization not only according to its
nature, but also according to the law,
good customs and public policy.
2. Impossible - when it is not capable
of realization either according to its
nature or according to law, good
customs or public policy.
Effects
1. Impossible conditions as well as
those which are contrary to good
customs or public policy and
those which are prohibited by law
shall annul the obligation which
depends upon them.
IV.
POSITIVE
CONDITIONS
and
NEGATIVE
DOCTRINE
OF
CONSTRUCTIVE
FULFILLMENT
OF
SUSPENSIVE
CONDITIONS
Conditions
Doctrine
or
Requisites
of
the
Exception:
1. The doctrine can be applied only to
suspensive and not to resolutory
conditions.
Effect of Suspensive
Before Fulfillment
Conditions
Effect of Loss,
Improvement
Deterioration
or
1. Losses
- A thing is lost (1) when it perishes; or
(2) when it goes out of commerce; or
(3) when it disappears in such a way
that its existence is unknown or it
cannot be recovered.
- If the thing is lost without any fault of
the debtor, the obligation is
extinguished.
- If the thing is lost through the fault of
the debtor, the obligation is
converted into one of indemnity for
damages.
2. Deterioration
- If the thing deteriorates without the
fault of the debtor, the impairment is
to be borne by the creditor.
3. Improvements
- If the thing is improved by its nature
or by time, the improvement shall
inure to the benefit of the creditor
- If the thing is improved at the
expense of the debtor, he shall have
no right than that granted by
usufructuary.
- The debtor cannot ask the creditor to
reimburse his expenses for useful
improvements and improvement for
mere pleasure, but he has the right
to remove the same provided it is
possible to do so without damage to
the thing or property.
- The debtor may also set off the
improvements he may have made
on the property against any damage
to the same.
Conditions
Effect of Loss,
Improvement
Deterioration
or
CONCEPT
OF
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.
Tacit Resolutory Condition
General rule: If one of the parties fails
to comply with what is incumbent upon
him, there is a right on the part of the
other to rescind (or resolve) the
obligation.
Necessity of Judicial Action
General rule: The right to rescind or
resolve the obligation is a right which
belongs to the injured party alone.
However, it is essential that it must be
invoked jucially. The party entitled to
rescind must invoke judicial aid by filing
the proper action for rescission or
resolution of the contract if he so elects
for it is the judgment of the court and not
the mere will of the vendor which
produces the rescission of the sale.
Exception: Where the contract itself
contains a resolutory provision by virtue
of which the obligation maybe cancelled
or extinguished by the injured party in
case of breach, judicial permission to
Nature of Breach
General rule:
Rescission will be
ordered only where the breach
complained of is substantial as to defeat
the object of he parties in entering into
the agreement It will not be granted
where the breach is slight or casual.
Alternative Remedies of Injured Party
In case one of the parties should not
comply with what is incumbent upon
him, the injured party may choose
between:
1. Fulfillment of the obligation with
payment for damages (specific
performance with damages)