Timothy M.

Tanseco

BSBM 1-D

Chapter 3 different kinds of obligations

DIFFERENT KINDS OF OBLIGATION

1. Pure and conditional obligation

2. Obligations with a period

3. Alternative and facultative obligations

4. Joint and solidary obligations

5. Divisible and indivisible obligations

6. Obligations with a penal clause

Pure obligations- one which is not subject to conditions or burdens nor does it mention a specific date
for it fulfillment and as such it is immediately demandable

- obligation whose performance does

not depend upon a future or uncertain event, or upon a past event unknown to the parties, is
demandable at once

Condition- an uncertain event; the uncertainty consists in whether the day will come or not

Suspensive condition- a condition which suspends the demand ability of the obligation until the
fulfillment of the obligation

Resolutory condition- extinguishment of an obligation upon the happening of the event

Potestative condition- depends on the exclusive will of the debtor and hence, it is void.

Suspending the efficacy of an obligation to give

1. If the things is lost without the fault of the debtor, the obligation shall be extinguished

2. If the thing is lost through the fault of the debtor, he shall be obliged to pay damages

3. When the thing deteriorates without the fault of the debtor, the impairment is to be borne by
the creditor

4. If it deteriorates through the fault of the debtor, the creditor may choose between the
rescission of the obligation and its fulfillment, with indemnity for damages in either case

5. If the thing is improved by its nature or by time, the improvement shall inure to the benefit of
the creditor
6. If it is improved at the expense of the debtor, he shall have no right than that granted to the
usufructuary.

Reciprocal obligation- one where two parties are mutually obliged to do or to give something

Period- it is a day certain and which must necessarily come, although it may not be known when

Resolutory period- take effect at once, but terminate upon arrival of the day certain

Suspensive period- an obligation that is not demandable until the period happens.

Alternative obligation- one wherein various things are due, but the payment of one of the prestation, is
sufficient, determined by the choice which as a general rule belongs to the obligor

Facultative obligation- an obligation where only one presentation has been agreed upon, but the obligor
may render another in substitution;

Solidary obligation- a creditor has a right to demand, and each of the debtors is bound to render, entire
compliance with the prestation

Joint obligation- debt is divided into as many shares as there are creditors or debtors, ad the credits or
debts are considered distinct from one another

Solidary liability exists only when:

A. When the obligation so provides

B. When the law so provides

C. When the nature of the obligation requires solidary

Divisible obligation- obligations that are susceptible of partial performance

Indivisible obligation- obligations that are not susceptible of partial performance

Obligations with a penal clause- an accessory undertaking to assume greater liability in gas of a breach

Chapter 4 Extinguishment of Obligation

Extinguishment of obligations

1. Payment or performance- mode of extinguishing an obligation that does not only the delivery or
money but also the performance, in any other manner, of an obligation

2. Loss of the thing due-

3. Condonation or remission of the debt- mode of extinguishing an obligation that the obligee acts
with liberality that the debt of the debtor is already extinguished partly or entirely by donation.

4. Confusion or merger of the rights or creditor and debtor- when the rights of a creditor and the
obligations of a debtor with respect to the same obligation are merge in one person
5. Compensation- mode of extinguishing an obligation where there are two obligations that are
weighed together or balance in order to extinguish them to the extent that the value of one obligation is
covered by the value of the other. ; take place when two persons, in there own right are principal
debtors and creditors of each other

6. Novation- mode of extinguishing an obligation by substituting an existing an obligation by a new

7. Annulment of contract 8. Rescission of contract- 9. Fulfilment of a regulatory condition

10. Dation in payment- instead of paying money delivers property in payment of a debt in money

11. Cession- abandonment of the debtor to all of his rights to his properties for the benefit of his
creditors and the creditors will dispose or sell the property and the proceeds will be a payment to the
debtor’s debt

Subrogation- substitution of one for another, as a creditor, the new creditor succeeding to the former’s
rights in law

Right application of payments

1. One debtor and one creditor

2. Several debts

3. Debts are of the same kind

4. Debts are all due, except when the parties stipulate or that the application is made by the party
with benefit of the term

Tender of payment- the offer to pay on the part of the debtor and it just be shown that the debtor has
the thing or the amount to be paid

Consignation- act of depositing the thing due with the court or juridical authorities whenever the
creditor cannot accept or refuses to accept payment and it generally requires a prior

tender of payment

Requirements of consignation

1. Existence of valid indebtedness

2. There must be valid tender of payment and refusal to accept without justifiable reason

3. There must be notice of consignation to the persons interested before and after the deposit

4. Deposit with the judicial authority

GENERAL RULE: the debtor does not incur liability for the loss in case of fortuitous event

Exceptions:

a. When provided for by law

c. By stipulation if the parties

d. When the debtor is guilty of crime, malice or bad faith, has

promised the same thing two or more persons who does not have the same interest

e. When the debtor contributed to the loss

f. When the debtor is guilty of fraud

Condonation or remission- it is an act of liberality by which the obligee, who receives no price or
equivalent thereof, renounces the enforcement of the obligation, which is extinguished in its entirety or
in that part or aspect of the same to which the remission refers

Requisites of condonation

1. It must be gratuitous

2. Obligation must be demandable at the time the remission is made

3. Must be accepted by the obligor

4. It must not be in officious donation

5. It must be with the forms of donation

Requisites of confusion or merger of rights

1. Characters of creditor and debtor must be in the same person

2. Must take place in the person of either the principal editor or the principal debtor

3. It must be complete and definite

Requisites of valid compensation

1. When the debtor and creditor who are principally bound to each other

2. Both debts must consist in a sum of money, and if the prestation is a consumable thing, it must
be of the same kind or same quality

3. The two debts be due

4. They be liquidated and demandable

5. That over neither of them there be any retention or controversy, commenced by third persons
and communicated in due time to the debtor

Kinds of compensation

1. Legal Compensation- takes place in the operation of law without the need of agreement of both
parties. The requisites of article 1279 should be present
2. Voluntary Compensation- exists when there is an agreement of the parties as in case of natural
set off of accounts.

3. Judicial Compensation- takes place when the court permits the counterclaim of the defendant
against the claim of the plaintiff.

4. Partial Compensation- exists when there are 2 obligations that are of different amounts and a
balance remains unextinguished even after the compensation.

5. Total Compensation- takes place when there are obligations that are of different amounts and
compensation extinguishes the obligation entirely.

Kinds of novation

1. Real novation- the change in the object or principal conditions of the obligation

2. Personal novation- another person substituted in place of the debtor or he is subgrogated to the
rights of the creditor

3. Mixed novation- the change in the person of the parties and the objects or modification of
principal condition

Kinds of substitution or debtor

Expromision- when a third person of his own accord and even without the knowledge of the original
debtor assumes the obligation, with the consent of the creditor

Delegacion- when the debtor asks the creditor to accept a third person to take his place as a debtor.

Legal subrogation- it takes place by operation of law without need of an agreement of parties

Conventional subrogation- takes place by agreement of the creator, the original debtor, and the third
person

Requisites of legal subrogation

1. When creditors pay another creditor who is preferred, even without the debtor’s knowledge

2. When a third person, not interested in the obligation, pays with the express or tacit approval of
the debtor

3. When, even without the knowledge of the debtor, a person interested in the fulfilment of the
obligation pays, without prejudice to the effects of confusion to the latter’s share