Obligations and Contracts

law is rule of conduct, just, and ·Restitution

obligatory promulgated by legitimate ·Reparation
authority and of common observance and ·Indemnification for consequential
benefit. damages
·
obligation is a juridical necessity to nature and effects of obligation
give, to do or not to do. keywords
Specific and generic indeterminate
Genus nunquam peruit or genus never
contract is a meeting of minds
perishes
between two persons whereby one binds
Diligence of good father of a family
himself with respect to another, to give
(bonum paterfamilia)
something of render some service.
What are the obligations in the delivery of
Requisites of Obligation determinate thing?
 Passive subject or debtor or obligor · Take good care of the thing with
 Active subject or creditor or obligee the diligence of a good father of the
 Object or prestation or subject matter family.
 Juridical tie or legal tie · Deliver the thing including its
Requisites of Contracts fruits.
 Consent, meeting of the minds · Deliver all its accessions and
 Object, subject matter accessories.
Personal Right v. Real Right
 Cause, consideration or price
Sources of Obligation
 Law Kinds of fruits
 Contracts a. natural b. c. civil
 Quasi contracts industrial
 Delicts or crime or felony
 Quasi delicts or tort or culpa aquiliana The creditor has the right to the fruits of
the thing from the time the obligation to
Kinds of Quasi Contracts deliver arises.
 Negotiorum Gestio In contracts, from the time of the
·Voluntary management perfection of the contract.
 Solution Indebiti
·Improper payment What transfers ownership?
If a crime is committed, there are two DELIVERY or TRADITION
liabilities What creates the real right over the thing?
 Criminal liability REGISTRATION
·Imprisonment
 Civil Liability Remedies of the creditor in a
·Payment of damages real obligation
·Scope of Civil liability In case the obligation is specific
  Demand specific performance or Can he compel? NO, because of
fulfillment of the obligation with a right involuntary servitude but you can ASK.
to indemnity for damages
 Demand rescission or cancellation of  undoing of the forbidden thing plus
the obligation also with a right to recover damages
damages  if not possible to undo, damages
 Demand payment of damages only
where it is the only feasible remedy. delay
general rule, no demand, no delay
Can the creditor compel the delivery of exceptions
the thing? YES
a. b. c. time is of d.
Can the creditor ask a third person? NO
law stipulatio the essence useles
n s
In case the obligation is generic
 Can be performed by a third person Kinds of delay
 Mora Solvendi (debtor’s delay)
Can the creditor compel the delivery of  Mora Accipiendi (creditor’s delay)
the thing? NO  Compensation Morae (both)
Can the creditor ask a third person? YES
Instance when debtor is liable
accessions are fruits of a thing or for damages
additions to or improvements upon a  Fraud, deceit, dolo
thing.  Negligence, fault, culpa
 Delay, mora, default
accessories are things joined to or  Violation of the terms of obligation,
included with the principal thing for the contravention, breach
latter’s establishment, better use or
completion. fraud
the deliberate of intentional evasion of the
Accessio cedit principali accessory normal fulfillment of an obligation.
follows the principal.
Can the principal exist without the Kinds of fraud
accessory?  Dolo incidente, incidental fraud
Can the accessory exist without the  Dolo causante, causal fraud
principal? Causal Fraud v Incidental Fraud
.
Remedies of the creditor in Before creation After creation
personal obligation Annulment Pay damages
a. ask the debtor, in case of refusal, ask a
third person How is causal fraud committed?
exception, personal consideration a. insidious words or machinations
is involved. b. concealment
b. damages.
waiver of future fraud, not valid
waiver of past fraud, valid
waiver of past or future negligence, valid
negligence Requisites to recover interest
any voluntary act or omission, the being Agreement Writing Lawful
no malice, which prevents the normal matuum, money
fulfillment of an obligation. commodatum, other than money

Kinds of negligence Disputable presumptions

 Culpa Contractual (contractual) Rule, interest paid ahead of the principal
 Culpa Aquiliana (Civil) Presumption, interest is already paid
 Culpa Criminal (criminal)
Rule, prior installments are first
fortuitous event liquidated
any event which cannot be foreseen, or Presumption, prior installments are
which though foreseen, is inevitable. already paid.

“debtor must be free from any

participation”
Remedies available to the
creditors for the satisfaction of
a. acts of man their claims
b. acts of god (force majeure) Primary remedy, specific performance
Secondary remedies
general rule, debtor is not liable  Exhaust the properties, find
exceptions  Accion Subrogatia, subrogation
a. law  Accion Pauliana, rescind
b. stipulation Obligation are NOT transmissible
c. nature of obligation requires the
assumption of risk General Rule, rights are transmissible
Exception
Usury law is legally inexistent a. prohibited by law
b. stipulation

Kinds of Obligations
Keywords  no condition, no period
Unilateral v. Bilateral Condition
Real v. Personal  future and uncertain
Determinate v. Generic period
Civil v. Natural
 future and certain
Legal v. Conventional v. Penal
instance when obligation is immediately
Pure v. Conditional
demandable
Obligation with a period
Alternative v. Facultative
Suspensive v. Resolutory
Joint v. Solidary
condition condition
Divisible v. Indivisible
Condition Condition
Obligations with a penal clause
precedent subsequent
Suspended Demandable at
Pure obligation once
 Arises Extinguished  From the moment that the time indicate
Acquisition of Termination of elapsed without the event taking place.
rights right  It has become evident that the event
cannot occur, although the time indicated
Debtor promises to pay when his means has not yet elapsed
permit him to do so, PERIOD
Constructive fulfillment of
If period depends on debtor valid
If condition depends on Void condition
debtor Two types,
If condition depends on Valid  Suspensive condition
creditor, will of third person  Resolutory condition
or chance
If condition potestative “one” Suspensive condition
If condition casual “or” Requisites
If condition is mixed “and”  Condition must be suspensive
 The obligor actually prevents the
Impossible v Impossibility in the fulfillment of the condition
obligation . performance of the  He acts voluntarily.
obligation NOTE, the obligor should not be allowed
a. beginning a. after the creation to profit from his own fault or bad faith to
b. annulled or b. debtor is released the prejudice of the obligee.
void
Resolutory condition
Kinds of Effect (GR)  Obligation subject to a resolutory
impossibility  both obligation condition with respect to the debtor who
a. physically and condition are is bound to return what he has received
b. legally void. upon the fulfillment of the condition.

Retroactive effects of
Positive condition fulfillment of suspensive
The happening of an event at a condition
determinate time. Obligation to give
Extinguished,  It is a suspensive condition, however,
 as soon as the time expires without the once the condition is fulfilled, its effect
event taking place. shall retroact to the day when the
 As soon as it has become indubitable obligation was constituted. Reason, the
that the event will not take place although condition is only an accidental element of
the time specified has not expired. a contract.

Obligation to do or not to do
negative condition
 No fixed rule is provided
an event will not happen at a determinate
time.
The obligation shall become effective and Rights pending the fulfillment
binding, of suspensive condition
Rights of the creditor fortuitous event.
 He may take or bring appropriate Loss of thing Creditor is entitled
actions for the preservation of his right, as debtor’s fault with damages, if
the debtor may render nugatory the any, and the value
obligation upon the happening of the of the thing.
condition. Deterioration of Reduce the value
Remedy, he may go to court to prevent thing without of the thing as the
the alienation or concealment of the debtor’s fault creditor will suffer
property the debtor has bound himself to for the
deliver, or to have his right annotated on deterioration or
the title to the property in the registry of impairment
deeds. amount.
Rights of debtor Deterioration of Creditor can
 he is entitled to recover what he has thing through choose between,
paid by mistake prior to the happening of debtor’s fault  Rescission or
the suspensive condition. cancelation plus
damages.
kinds of loss  Fulfillment of
requisites the obligation with
 the obligation is a real obligation damages.
 the object is a specific or determinate Improvement of
thing thing by nature or
 the obligation is subject to a suspensive by time
condition Improvement of
 the condition is fulfilled thing at expense of
debtor
 there is loss, deterioration, or
improvement of the thing during the Usufruct, the right to enjoy the use and
pendency of the condition. fruits of a thing belonging to other.

Kinds Effects of fulfillment of

 physical loss, when a thing perishes as resolutory condition
when a house is burned and reduced to Obligation to give
ashes.  When the resolutory condition in an
 Legal loss, when a thing goes out of obligation to give is fulfilled, the
commerce or when a thing heretofore obligation is extinguished. The parties
legal becomes illegal. are obliged to return to each other what
 Civil loss, when a thing disappears in they received during the obligation.
such a way that its existence is unknown
or even if known, it cannot be recovered, Obligation to do or not to do
whether as a, atter of fact or of law.  Court shall decide the retroactive
effect of the fulfillment of the resolutory
Rules condition.

Loss of thing Extinguished, GR,

without debtor’s a person is not
kinds of obligation according
fault liable for a to the person obliged
unilateral  Action for specific performance of the
 When only one party is obliged to obligation with damages or
comply with a prestation.  Action for rescission plus damages
Bilateral
 When both parties are mutually bound Both parties are guilty of
to each other.
breach
a. reciprocal obligations, arise from the First infactor known
same cause and in which each party is a  One party violated his obligation,
debtor and creditor of the other. (Contract subsequently the other also violated his
of sale) part of the obligation.
b. non reciprocal obligation, those which  Liability of the first infractor should be
do not impose simultaneous and equitably reduced.
correlative performance on both parties. First infactor cannot be determined
 one of the party violated his obligation
Remedies in reciprocal followed by the other, but cannot be
determined which of them was the first
obligation infactor.
Choice of remedies, in case one of the  Contract shall be deemed extinguished
obligors does not comply with what is and each will bear the damages.
incumbent upon him.

Obligations with a period

An obligation with a period is one whose effect or
consequences are subjected in one way or another to the
expiration or arrival of said period or term.
kinds of period or term definite period
a. according to effect  When it is fixed, or it is known when it
Suspensive period (ex dei) will come
 Obligation begins from a day certain Indefinite period
upon the arrival of period.  When it is not fixed, or it is not known
Resolutory period (in diem) when it will come.
 Obligation is valid up to a day certain
and terminates upon arrival of the period. Debtor presumed aware of the
period
b. according to source Presumption, the debtor knew that the
legal period was not yet due yet. He has the burden of
 When it is provided for by laws providing that he was unaware of the
Conventional or voluntary period period.
 When it is agreed to by the parties  The obligor can no longer recover the
Judicial period thing or money once the period has
 When it is fixed by the court. arrived but he can recover the fruits or
interest.
c. according to definiteness
Presumption as to benefit of General rule
 Obligation is nor demandable before
period the lapse of the period (respect the
General rule period).
 The period is presumed to have been
established for the benefit of both the Exception
creditor and debtor.  When debtor becomes insolvent
Exception
 When debtor does not furnish
 term is for the benefit of the debtor guaranties or securities promised
alone. He cannot compelled to pay
 When guaranties or securities given
prematurely, but he can is he desires to do
have been impaired or have disappeared.
so.
 When debtor violates an undertaking
 Term is for the benefit of the creditor.
 When debtor attempts to abscond.
He may demand fulfillment even before
the arrival of the term but the debtor
cannot require him to accept payment
before expiration of the stipulated period.

Judicial period
if the obligation does not state a period
and no period is intended, the court is not
authorized to fix a period. The courts have
no right to make contract for the parties.

Exception
 No period is fixed but period was
intended
 Duration of the period depends upon
the will of the debtor.

When obligation can be

demanded before lapse of
period

Alternative Obligations
Various prestation are due but the performance of the one of
them is sufficient as determined by the choice, as a general
rule, belongs to the debtor.
Kinds of obligation according Compound obligation
 One where there are two or more
to subject prestation
Simple obligation Conjunctive obligation
 One where there is only one prestation.
  one where there are several prestation  the debtor is not liable since he has the
and all of them are due. right of choice and the obligation can be
Distributive obligation still performed.
 one where two or more of the All of the objects
prestation is due.  the creditor shall have the right to
- alternative obligation, one where several indemnity for damages since the
prestation are due but the performance of obligation can no longer be complied
the one is sufficient with.
- facultative obligation, one where only  Exception, fortuitous event, the
one prestation is due but the debtor may obligation is extinguished.
subside another.
Effect of loss of obligation -
General Rule
 the right to choose the prestation creditor
belongs to the debtor. when a thing is lost through a fortuitous
Exception event
 it may be exercised by the creditor but  Creditor can choose among the
only when expressly granted to him, or by remainder or that which remains of the
a third person when the right is given to items are lost.
him by common agreement. When a thing is lost through debtor’s fault
 Creditor may claim from the remaining
item with a right to damages or the price
Communication of notice that of item also with a right to damages.
choice has been made When all the things are lost through
Effect of notice debtor’s fault
Until the choice is made and  Creditor can demand payment of the
communicated, obligation remains price of any one of them with a right to
alternative. indemnity for damages.
Proof and form of notice When all the things are lost through
Can be orally of in writing, expressly or fortuitous event
implide.  The obligation shall be extinguished.

Effect when only one Facultative obligation

prestation is practicable One where only one prestation has been
The obligation is still alternative because agreed upon but the obligor (debtor) may
the debtor has still the right of choice. If render another substitution.
only one is practicable, the obligation is
converted into simple obligation. Effects of lost
Before substitution
 If the principal thing is lost through a
fortuitous event, the obligation is
Effect of loss of obligation – extinguished, otherwise, the debtor is
debtor liable for damages.
 The effect of the lost is merely to
Some of the objects extinguish the facultative character of the
obligation.
After substitution.  It the substitute is lost. The liability of
 If the principal thing is lost, the debtor the debtor depends upon whether or not
is not liable whether may be the cause of the loss is due to his fault.
the loss, because it is no longer due.

Joint and Solidary Obligations

joint obligation – pro rata creditors has a right to demand entire
the whole obligation is to be paid or compliance.
fulfilled proportionately by different Conventional solidarity
debtors and or be demanded  Solidarity is agreed upon by the
proportionately by different creditors. parties.
Legal solidarity
 Where solidarity is imposed by the
solidary obligation law.
each one of the debtors is bound to
Real solidarity
render, and or each one of the creditors
 Solidarity is imposed by the nature of
has a right to demand from any of the
the obligation.
debtors, entire compliance with the
prestation.
Joint indivisible obligation
Presumption – JOINT The obligation is joint as to liabilities of
the debtors or rights of the creditors but
When obligation is solidary indivisible as to compliance.
 The obligation expressly states
 The law requires solidarity Differences between
 The nature of the obligation requires indivisibility and solidary
solidarity.
obligation
Indivisibility Solidarity
Kinds of solidary obligation Refers to the Refers to the
Passive solidarity prestation juridical or legal
 Solidarity on the part of the debtors, tie that binds tie
any one of them can be made liable for Only the debtor is All of the debtors
the fulfilment of the obligation. guilty of breach of are liable for the
Active solidarity obligation and os breach of the
 Solidarity on the part of the creditors, liable for damages obligation
any one of them can demand the committed by a
fulfillment of the entire obligation. debtor
Mixed solidarity Can exist although There must be at
 Solidarity on the part of the debtors there is only one least two debtors
and creditors, where each one of the debtor and one or two creditors
debtors is liable to render, each one of the creditor
 Others are not Other debtors are represents the other and the assignee may
liable in case of proportionately not have the confidence of the original
insolvency of one liable creditor.
debtor If the assignment is made to a co-creditor,
the consent of other creditors is not
Kinds of solidary obligation necessary.
according to legal tie
Uniform
 Parties are bound by the same Payment to any of the solidary
stipulations creditors
Non uniform or varied debtor may pay any one of the solidary
 Parties are not subject to the same creditors, but when a demand, judicial or
stipulations extrajudicial has been made by one of
them, payment should be made to him,
Solidarity not affected by otherwise, the obligation will not be
extinguished.
diverse stipulation
Essence of solidarity
 There may be solidary obligation Right of creditor to proceed
although the parties may not be bound in against any solidary debtor
the same manner and by the same periods The choice is left to the solidary creditor
and condition. to determine against whom he will
Action against any of the solidary debtors enforce collection.
 Upon the expiration of the term or the
fulfillment of the condition, the creditor Payment by a solidary debtor
will have the right to demand the payment Payment made by one of the solidary
of the remainder. debtors extinguishes the obligation.
Liability of any solidary debtor for entire
obligation Effects of payment
 the parties may stipulate that any Between the solidary debtors and
solidary debtor already bound may be creditors
made liable for the entire obligation.  payment made by one of the solidary
debtor extinguishes the obligation
Act of solidary creditor however, then creditor is given the right
prejudicial to others to choose which offer to accept if two or
Solidary creditor may do any act more solidary debtors offer to pay.
beneficial to the others but cannot Among the solidary debtors
perform any act prejudicial to them, it will  after payment of the debt, the paying
result to extinguishment of the obligation solidary debtor can demand
plus damages. reimbursement from his co debtors for
their proportionate shares with legal
interest inly from the time of payment.
Assignment by solidary (creates joint obligation)
creditor of his rights  In case of insolvency, the others
Solidary creditors cannot assign his rights assume the share of the insolvent one pro
to a third person, because each creditor rata.
Among the solidary creditors
 The receiving creditor is jointly liable Defenses available to solidary
to the others for their corresponding
shares.
creditor
Defenses Complete Fraud,
derived defense, it prescription,
Payment after obligation has from nullifies remission,
prescribed nature of the illegality or
Payment by a solidary debtor shall not the obligation. absence of
entitle him to reimbursement from his obligatio consideration
codebtors when the obligation has already n , res judicata.
been prescribed or become illegal, the Defenses If the Incapacity,
obligation is extinguished. personal action of mistake,
to, or C against violence,
Effects oof remission of share which of B, B minority.
pertain to was insane
after payment share of, at the time
If payment is If remission is debtor the
made first, the made previous to sued obligation
remission or the payment and was
waiver is no payment is made, contracted
effect. solutio indebiti , the
There is no arises. defense is
obligation to complete.
remit. Defense
personal
to other
Effect of loss of thing solidary
Loss is without fault and before delay debtors
 Obligation shall be extinguished
Loss is due to fault on the part of solidary
debtor
 The fault or delay of one solidary
debtor shall be the fault or delay of all the
solidary debtors
 The innocent solidary creditors can
recover the full amount plus damages to
the guilty debtor is they contributed to the
full price
 If the creditor recovers the price plus
damages from the guilty debtor, the latter
cannot claim reimbursement from other
debtor as he alone was at fault.
Loss is without fault but after delay
 The default of one debtor makes all
solidary debtor responsible even for a
fortuitous event.
 Divisible and Indivisible
obligation
Divisible obligation Ideal or intellectual division
The delivery or performance of an  Exist only in the minds of the parties
obligation is capable of partial fulfillment.
Kinds of indivisibility
Indivisible obligation Legal indivisibility
The delivery of performance of an  A specific provision of law declares as
obligation is not capable of partial indivisible obligation which, by their
fulfillment nature are divisible.
Conventional indivisibility
Kinds of division  will of the parties make as indivisible
obligation which, by nature are divisible.
Qualitative division
Natural indivisibility
 Based on quality
 nature of the object or prestation does
Quantitative division
not admit of division.
 Based on quantity

Obligations with a Penal

Clause
Contains an accessory undertaking to pay a previously
stipulated indemnity in case f breach of the principal
prestation.
Purpose of penal clause  penalty takes the place of damages.
 to ensure the performance by creating Punitive penal clause
an effective deterrent against breach  penalty is imposed merely as
 to substitute a penalty fir the indemnity punishment for breach.
for damages and the payment of interest Subsidiary or alternative penal clause
in case of non-compliance  the penalty can be enforced
joint or cumulative penal clause
kinds of penal clause  both the principal obligation and the
legal penal clause
penal clause can be enforced.
 it is provided by law.
Conventional penal clause
 provided for by stipulation of the
parties. Liability for penalty, damages
compensatory penal clause or interest
  penalty substitutes for damages and note
interest  proof of actual damages is not
 penalty and interest are enforceable. necessary in order that the penalty may be
demanded.
General rule  Judge shall equitably reduce the
The creditor cannot demand fulfillment of penalty when the principal obligation has
the obligation and the satisfaction of the been partly complied by the debtor.
penalty at the same time.  Nullity of the penal clause does not
In case of noncompliance, creditor may carry with it that f the principal
ask for the penalty or require specific obligation.
performance.
Remedy, alternative obligation.

Extinguishment of
Obligations
 Payment  Prescription (extinctive)
 Loss of the thing due
 Condemnation or Remission of the Causes of extinguishment if
debt
obligation
 Merger of the rights of creditor and
 Death of a party in case the obligation
debtor
is personal
 Compensation
 Mutual desistance or withdrawal
 Novation
 Compromise
 Annulment
 Impossibility of the fulfillment
 Recission
 Happening of a fortuitous event
 Fulfillment of resolutory condition

Payment or Performance
Payment means not only the delivery of money but also the
performance, in any other manner, if an obligation
When is debt considered paid A receipt of payment is deemed to be the
Integrity of prestation best evidence of payment, a voucher is
 Partial performance will not produce not necessarily an evidence of payment.
extinguishment of an obligation.
Identity of the prestation Requisites for the application
 The very prestation due must be of article 1234
delivered or performed.  There must be substantial performance
  The obligor must be in good faith – it Subrogation and
is always presumed in the absence of
proof to the contrary.
reimbursement
Subrogation
 the person who pays for the debtor is
Recovery allowed when put into the shoes of the creditor.
incomplete performance is Reimbursement
waived  third person is entitled by reason of
 if the payment is incomplete, the payment has merely the bare right to be
creditor may properly reject it. refunded.
 In case of acceptance, the law
considers that he waives his right, which Payment of a third person who does not
extinguished the whole obligation. intend to be reimbursed by the debtor is
deemed to be a donation, which requires
the debtor’s consent. But it must be
Requisites for the application accepted by the creditor.
of 1235
 the oblige knows that the performance
is incomplete
 he accepts the performance without
expressing any protest. Free disposal of the thing due
The thing to be delivered must be not
subject to any claim of a third person.

Persons from whom creditor Capacity to alienate

must accept payment Person is not incapacitated to enter into
 debtor contracts.
 any person who has interest in the
obligation General rule
 a third person who has no interest in Obligation to give, payment by one who
the obligation when there is stipulation does not have the free disposition of the
that he can make payment. thing due and capacity to alienate it is not
valid.
Effects of payment by a third  The creditor cannot be compelled to
person accept payment where the person paying
if made without the knowledge or against has no capacity to make it.
the will of the debtor
 the payor can recover from the debtor Person to whom payment shall
only as the payment has been beneficial to be made
the latter.  Creditor or oblige
if made with the knowledge of the debtor  His successor in interest (heir or
 the payer shall have the rights of assignee)
reimbursement and subrogation which is  Any person authorized to receive it.
to recover what he has paid and to acquire (must be authorized by law to receive it)
all the rights of the creditor.
Effects on It is not valid
 payment to an unless such Exception, if the to an action for his
incapacitated incapacitated parties have a expenses incurred
person person kept the stipulation on who in the action. The
thing paid or will bear the cost shall be paid
delivered, or was expenses, it will by the losing
benefited by the be followed. party.
payment.
Instance when partial payment
Effect of payment Not valid except
to a third person as it has is valid
or wrong party redounded to the  When there is an express stipulation to
benefit of the that effect
creditor  Debt is in part liquidated and in part
unliquidated
 Different prestation in which the
Special forms of payment obligation are subject to different terms
dation in payment (dacio en pago)
which affects some of them.
 Conveyance of ownership of a thing as
an accepted equivalent of performance.
Application of payments legal tender
 Legal application of payments the currency which if offered by the
Payment by cession debtor in the right amount, the creditor
Tender of payment and consignation must accept in payment of a debt in
money.
All coins and notes issued by the
Rule of medium quality Bangko Sentral ng Pilipinas (BSP)
(generic)
If the obligation is to deliver a generic Inflation
thing, the creditor cannot demand a thing Is a sharp sudden increase of money
of superior quality neither the debtor without corresponding increase in
deliver a thing of inferior quality. business transactions. It causes a drop in
the value of money, resulting the rise of
Judicial v. extrajudicial the general price.
expenses
deflation
Extrajudicial Judicial cost are reduction in volume and circulation of the
expenses are for statutory amounts available money, resulting in a decline of
the of the debtor. allowed to a party the general price level.

Loss of the thing due

General rule  Stipulation
obligation is extinguished.  Nature of the obligation
exceptions  Obligation to deliver a specific thing
arises from a crime
 Law
 Generic
 Condonation or remission of
debt
Gratuitous abandonment by the creditor of his rights against
the debtor
Requisites of condonation
 It must be gratuitous
 Must be accepted by the obligor
 The parties must have capacity
 It must not be inofficious
 If made expressly, it must comply with the forms of donation.
 Contracts
A contract is a meeting of minds between two persons
whereby one binds himself with respect to another, to give
something of render some service.
Classification of contract  Aleatory, when it depends upon an
According to name or designation uncertain event or contingency both as to
 Nominate benefit or loss.
 Innominate According to liability
According to perfection  Unilateral, when it creates an
 Consensual obligation on the party of only one of the
parties
 Real
According to cause  Bilateral, when it gives rise to re
 Onerous
 Remuneratory or remunerative
 Gratuitous
According to form
 Informal, common, or simple
 Formal or solemn
According to obligatory force
 Valid
 Rescissible
 Voidable
 Unenforceable
 Void or inexistent
According to the person obliged
 Unilateral
 Bilateral
According to risk
 Commutative, when the undertaking of
one party is considered the equivalent of
that of the other