DAJAO.MA.RACQUEL.

Q#2

KINDS OF OBLIGATONS

Section 1: Pure and conditional Obligations

 PURE OBLIGATION -  is a not which is not subject to any conditions

and no specific date is mentioned for its fulfillment and is, therefore,
immediately demandable.
Example:
Ame obliges himself to pay Viron the P6,000 she borrowed.
The obligation is immediately demandable since there's no condition and no
date mentioned for its fulfillment

 CONDITIONAL OBLIGATION - is one whose consequences are subject

in one way or another to the fulfillment of a condition.

Two principal kinds of Conditional:

1. Suspensive Condition - (condition precedent or condition antecedent) or

one the fulfillment of which will give rise to an obligation (or right). In other
words, the demandability of the obligation is suspended until the happening
of the uncertain event which constitutes the condition.
Example:
Viron will sell their house to Viddeon if it is adjudicated to me in the division
of my late grandfather's estate.
The obligation is demandable only after the condition is fulfilled, but in the
meantime, Viron is not liable to Viddeon.

2. Resolutory Condition - (condition subsequent) or one the fulfillment of

which will extinguish an obligation (or right) already existing.
Example:
In payment of her dept, Faye, binds herself to give Flair weekly allowance
until Flair graduates from highschool.
The obligation is already demandable but it will be extinguished after Flair
graduates fron highschool (since the resolutory condition is fulfilled).

Section 2. – OBLIGATIONS WITH A PERIOD

- An obligation with a period is one whose effects or consequences are
subjected in one way or another to the expiration or arrival of said period or
term.

Kinds of period or term:

 Suspensive period (ex die) - The obligation begins only from a day
certain upon the arrival of period.
Example:
Flair will pay Ame P5,000 at the end of this month.

 Resolutory period (in diem) - The obligation is valid up to a certain

day and will be terminated upon the arrival of the period.
Example:
Viddeon will give P1,000 a month to Lucy for 2 years.

Section 3. – ALTERNATIVE OBLIGTIONS

- An alternative obligation is one wherein various prestations are due but
the performance of one of them is sufficient as determined by the choice
which, as a general rule, belongs to the debtor.
Example:
Ame borrowed P10,000 from Mrs. Gocy. It is agreed that Ame could comply
her obligation by giving Mrs. Gocy P10,000, or by giving her a table set or by
organizing and painting the room of Mrs. Gocy.
The giving of P10,000, giving a table set or organizing and painting the room,
is sufficient to comple her obligation. Performance must be complete, it must
not be in half (P5,000 then half of the table set or P5,000 then painting half
of the room).

Section 4. – Joint and Solidary Obligations

 JOINT OBLIGATIONS - or one where the whole obligation is to be paid
or fulfilled proportionately by the different debtors and/ or is to be
demanded proportionately by the different creditors.
Example:
1. Viron and Viddeon borrowed P8,000 from Faye.
Viron and Viddeon are jointly liable. There are two debts one credit. Faye can
only demand P4,000 fron each debtors or a total of P8,000.
2. Faye and Ame are liable to Viron and Viddeon for P10,000.
There are two debts and two creditors. Each creditors will demand each
deptors P5,000. Here the total liability of Faye and Ame, and the total
collection of Viron and Viddeon can't exceed to P5,000.

 SOLIDARY OBLIGATIONS - or one where each one of the debtors is

bound to render, and/ or each one of the creditors has a right to demand
from any of the debtors, entire compliance with the prestation.

Kinds of Solidarity

1. Passive Solidarity - solidarity on the part of the debtors, where any one
of them can be made liable for the fulfillment of the entire obligation. It is in
the nature of a mutual guaranty.
Example:
Lucky and Levi are solidary deptors of Mrs. Gocy, borrowing P12, 000 from
her.
There is only 1 dept (the dept of Lucky and Levi) and 1 creditor. The creditor
can demand payment from either Lucky or Levi. Payment by Lucky will
extinguished the obligation but she can claim the share of Levi depending
upon their agreement.
2. Active Solidarity - solidarity on the part of the creditors, where any one
of them can demand the fulfillment of the entire obligation. Its essential
feature is that of mutual representation among the solidarity creditors with
powers to exercise the rights of others in the same manner as their rights.
Example:
Kid is liable for P5,000 in favor of Law and Green (solidarity creditors)
Kid (the deptor) can either pay Law or Green (solidarity creditors) and as long
as the entire dept is not paid Law or Green can demand payment from Kid.
And if Law receives payment he is liable to Green's share in the credit
according to their agreement.

3. Mixed Solidarity - solidarity on the part of the debtors and creditors,

where each one of the debtors is liable to render, and each one of the
creditors has a right to demand, entire compliance with the obligation.
Example:
Law and Green are solidarity liable to Faye and Ame solidarity creditors, with
the amount P16,000.
Each one of the deptors is liable to render, and each one of the creditors has
a right to demand. The payment of one deptor shall extinguished the
obligation. The one who payed can ask reimbursement from the other the
amount they agreed upon, and the one who collected is liable give the other's
share.

Section 5. – Divisible and Indivisible Obligations

 DIVISIBLE OBLIGATION - is one the object of which, in its delivery or

performance, is capable of partial fulfillment.
Example:
Filomina agreed to pay montly, for five months installment, for her P15,000
dept to Gin.
This is capable of partial performance since the obligation of Filomina (the
deptor) will be paid monthly.

 INDIVISIBLE OBLIGATION - is one of the object of which, in its

delivery or performance, is not capable of partial fulfillment.
Example:
Gin agreed that he will pay full P10,000 to Filomina on Dec. 5.
This is not capable of partial performance since payment is full and at one
time.
Note: if it is a definite thing, it will always be indivisible since a definite thing
(like car) cannot be served into parts without altering it's essence and
destroying its value.

Section 6. – OBLIGATION WITH A PENAL CLAUSE

- An obligation with a penal clause is one which contains an accessory
undertaking to pay a previously stipulated indemnity in case of breach of the
principal prestation, intended primarily to induce its fulfillment.
Example:
Flame promised to build a vacation house for Freya. The contract carried a
penal clause that in case of non-compliance Flame would have to pay a
penalty of P30,000. Flame did not built the vacation house and Freya suffered
damaged in the amount of P17,000.
The penalty (P30,000) shall be paid and Freya cannot recover more than the
amount of the penalty. The penalty substitutes the indemnity for the damage
of P17,000 and if Flame refuses to pay the penalty may recover legal interest.
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1. Define the following words.

a) PAYMENT
The fulfillment of a promise; the performance of an agreement. A deli
very of money, or its equivalent in either specific property or services, by 
a debtor to a creditor.

b) PERFORMANCE
Fulfillment of one's obligations required by contract. Specific performa
nce of a contract may be demanded in a lawsuit. Partial performance is sh
ort of full performance spelled out in the contract, but if the contract provi
ded for a series of acts or deliveries with payment for each of the series, t
here may be partial recovery for what has been performed or delivered ev
en if there is not full performance.

c) CONDONATION OR REMISSION OF DEBT

Condonation or remission of debt is the gratuitous abandonment by
the creditor of his right against the debtor. It is thus a form of donation.

d) CONFUSION OR MERGER RIGHTS OF CREDITOR AND DEBTOR -

The confusion or merger of the rights is a mode of extinguishment
of obligation wherein the characters/qualities of creditor and debtor are
merged in the same person. An obligation is extinguished if the debtor
also becomes the creditor since one cannot claim against himself.

e) COMPENSATION
Is the extinquishment to the concurrent amount of the debts of two
person who, in their own right, are debtors and creditors of each other. It
 involves the siultaneous balancing of two obligations in order to
extinguish them to hthe extend in which the amount of one is covered by
that of the other.

f) NOVATION
Novation is the total or partial extinction of an obligation through the
creation of a new one which substitutes it. It is the substitution or change
of an obligation by another, which extinguishes or modifies the first,
either by changing its object or principal conditions, or by substituting
another in place of the debtor, or by subrogating a third person in the
rights of the creditor.

g) ANNULMENT
Annulment, legal invalidation of a marriage. Annulment announces
the invalidity of a marriage that was void from its inception. It is to be
distinguished from dissolution, which ends a valid marriage for special
reasons—e.g., insanity of one partner after marrying. The annulment
decree attempts to leave the parties in statu quo ante (as they were
before the marriage), unless doing so would adversely affect a third
person

h) RESCISSION
Rescission is the voiding of a contract not recognized as legally
binding. The courts can free non-liable parties from their
agreed obligations and, when possible, will effectively seek to restore
them to the position they were in before the contract was signed.

i) FULFILLMENT OF RESOLUTORY CONDITION

Resolutory condition refers to a condition whereby, upon fulfillment
terminates an already enforceable obligation. It also entitles the parties to
be resorted to their original positions. A resolutory condition is also implied
in all commutative contracts.
j) PRESCRIPTION
One acquires ownership and other rights through the lapse of time in
the manner and under the conditions laid down by law. In the same way,
rights and actions are lost by prescription.

k) LEGAL TENDER
Legal tender is that currency which if offered by the debtor in the
right amount, the creditor must accept in payment of a debt in money.

2.State and define the special forms of payment.

There are four (4) special forms of payment under the Civil Code namely;

1. Dation in Payment ( adjudication or dacion en pago)- is the conveyance

of ownership of athing as an accepted equivalent of performance. It is a
special form of payment because it is not the ordinary way of extinguishing
an obligation. An existing debt in money is satisfied, not by payment of
money but by the alienation of property.

2. Application of Payments - is the designation of the debt to which should

be applied the payment made by a debtor who has various debts of the same
kind in favor of one (1) and the same creditor.

3. Payment by Cession - is another special form of payment. It is the

assignment or abandonment of all the properties of the debtor for the benefit
of his creditors in order that the latter may sell the same and apply the
proceeds thereof to the satisfaction of their credits.

4. Tender of Payment and Consignation - tender of payment is the act,

on the part of the debtor, of offering to the credito the thing or amount due.
The debtor must show that he has in his possession the thing or money to be
delivered at the time of the offer. Consignation is the act of depositing the
thing or amount due with the proper court when the creditor does not desire
or cannot receive it, after complying with the formalities required by law.
Consignation is applicable when there is a debt or an obligation to pay. It is
always judicial and it generally requires a prior tender of payment which is, by
its very nature, extrajudicial.

3.State and define the different kinds of compensation.

1) By its effect or extent;

a) TOTAL – when both obligations are of the same amount and are
entirely extinguished.

b) PARTIAL – when the two (2) obligations are of different amounts and
a balance remains. The extinctive effect of compensation will be partial
only as regards the larger debt.

2) By its cause or origin;

a) LEGAL – when it takes place by operation of law even without the

knowledge of the parties.

b) VOLUNTARY – when it takes place by agreement of the parties.

c) JUDICIAL – when it takes place by order form a court in a litigation.

Strictly speaking, judicial compensation is merely a form of legal or
voluntary compensation when declared by the courts by virtue of an
action by one of the parties, who refuses to admit it, and by the
defenses of the other who invokes it.

d) FACULTATIVE – when it can be set up only by one of the parties.

4. State and define thee different kinds of condonation.

1) As to its extent;

a) COMPLETE – when it covers the entire obligation; or

b) Partial – when it does not cover the entire obligation.

2) As to its form;

a) EXPRESS – when it is made either verbally or in writing; or

b) IMPLIED – when it can only be inferred from conduct.

2) As to its date of effectivity;

a) INTER VIVOS – when it will take effect during the lifetime of the
donor;

b) MORTIS CAUSA – when it will become effective upon the death of

the donor. It must comply with the formalities of a will.
DAJAO.MA.RACQUEL.S#1M

1. State the difference between payment by cession and dation in

payment.

Payment by cession is another special form of payment. It is the

assignment or abandonment of all the properties of the debtor for the benefit
of his creditors in order that the latter may sell the same and apply the
proceeds thereof to the satisfaction of their credits. (8 Manresa 321.)

Requisites of payment by cession.

They are: (1) There must be two or more creditors;

(2) The debtor must be (partially) insolvent;

(3) The assignment must involve all the properties of the debtor; and

(4) The cession must be accepted by the creditors.

Dation in payment or dacion en pago is a special form of payment whereby

another thing is alienated by the debtor to the creditor who accepts it as
equivalent of payment of an existing debt in money. There is no dation if the
transfer of property is by way of security only, and not by way of satisfying
the debt.  The differences are:

(1) In dation (see Art. 1245.), there is usually only one creditor, while in
cession, there are several creditors;
(2) Dation does not presuppose the insolvency of the debtor or a situation of
financial difficulties, while in cession, the debtor is insolvent at the time of
assignment;

(3) Dation does not involve all the property of the debtor, while cession
extends to all the property of the debtor subject to execution;

(4) In dation, the creditor becomes the owner of the thing given by the
debtor, while in cession, the creditors only acquire the right to sell the thing
and apply the proceeds to their credits pro rata; and

(5) Dation is really an act of novation (Art. 1291[1].), while cession is not an
act of novation.

2. State the requisites of Novation.

 There are four essential requisites:

(1) a previous valid obligation;
(2) the agreement of all the parties to the new contract;
(3) the extinguishment of the old contract; and
(4) validity of the new one.
DAJAO.MA.RACQUEL.Q#3M

I. Select the best answer by writing the letter of your choice.

1. D
2. D
3. D
4. A
5. D
6. C
7. A
8. B
9. B
10. C

II. State and define each word.

1. SOLUTIO INDEBITI (Payment by mistake) – 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.

2. DELEGACION – the debtor offers, and the creditor accepts, a third person
who consents to the substitution and assumes the obligation; thus, the
consent of these three persons are necessary. Both modes of substitution by
the debtor require the consent of the creditor.

3. POTESTATIVE CONDITION – A condition suspensive in nature and

which depends upon the sole will of one of the contracting parties is known
as potestative condition.

4. SUBROGATION – occurs when an insurance company which pays its

insured client for injuries and losses then sues the party which the injured
person contends caused the damages to him/her.

5. ACCION PAULIANA – An accion pauliana accrues only when the creditor

discovers that he has no other legal remedy for the satisfaction of his claim
against the debtor other than an accion pauliana. The accion pauliana is an
action of a last resort. For as long as the creditor still has a remedy at law for
the enforcement of his claim against the debtor, the creditor will not have any
cause of action against the creditor for rescission of the contracts entered into
by and between the debtor and another person or persons.

6. MORA ACCIPIENDI (mora of the creditor) – the delay of the obligee or

creditor to accept the delivery of the thing which is the object of the
obligation. ... -the fulfilment requires the act of cooperation on the part of
the creditor. -that the debtor has done what is incumbent upon him. -refusal
by creditor.

7. EXPROMISSION – civil law. The act by which a creditor accepts a new

debtor, who becomes bound instead of the old, the latter being released. It is
a species of novation.

8. NEGOTIORUM GESTIO – is the voluntary management of the property

or affairs of another without the knowledge or consent of the latter.

9. FORTUITOUS EVENT – An event happening by chance or accident. It is

an occurrence or failure to occur which is, or is assumed by the parties to be
adversely affected by the happening of such event.