Quiz # 2 Flashcards
(145 cards)
1
Q
BREACH OF OBLIGATIONS?
A
DEFAULT (MORA)
FRAUD (DOLO)
NEGLIGENCE (CULPA)
CONTRAVENTION OF THE TERMS
2
Q
DEFAULT (MORA), define?
A
Delay in the fulfillment of obligations;
3
Q
is there a delay in negative obligations?
A
No.
4
Q
Reckoning/begining point of DEFAULT (MORA),?
A
Begins from the moment the creditor demands the performance of the obligation
5
Q
Kinds of Mora?
A
Mora solvendi
Mora accipiendi
6
Q
Requisites of mora accipiendi under Mora?
A
a. An offer of performance by the debtor who has the required capacity
b. The offer must be to comply with the prestation as it should be performed
c. The creditor refuses the performance without just cause
7
Q
Effects of mora accipiendi unde MORA?
A
a. The responsibility of the debtor for the thing is reduced and limited to fraud and gross negligence
b. The debtor is exempted from the risks and loss of the thing, which automatically pass to the creditor
c. All expenses incurred by the debtor for the preservation of the thing after the mora shall be chargeable to the creditor
d. If the obligation bears interest, the debtor does not have to pay the same from the moment of the mora
e. The creditor becomes liable for damages
f. The debtor may relieve himself of the obligation by the consignation of the thing
8
Q
Mora solvendi, under MORA, define?
A
default on the part of the debtor
9
Q
is there mora solvendi in negative obligations?
A
There is no mora solvendi in negative obligations
10
Q
Why no mora solvendi in negative obligations?
A
one cannot be late in not doing or giving)
11
Q
Is there mora in natural obligations?
A
There is no mora in natural obligations
12
Q
The delay (mora solvendi) was caused by factors not imputable to the debtor, is there delay?
A
There is legally no delay (mora solvendi) if this is caused by factors not imputable to the debtor
13
Q
Requisites for mora solvendi, under MORA
A
a. That the obligation be demandable and already liquidated
b. That the debtor delays the performance
c. That the creditor requires the performance judicially or extra-judicially
14
Q
In mora solvendi, default generally begins from?
A
the moment the creditor demands the performance of the obligation
15
Q
In mora solvendi, without such demand, the effects of default will?
A
the effects of default will not arise.
16
Q
In mora solvendi, if a period has been fixed in the obligation, demand is?
A
Demand is generally necessary
17
Q
In mora solvendi, Demand is also required on contracts of
A
loan, mortgage and sale.
18
Q
In mora solvendi, When Default Begins, IC Extra-judicial demand before filing of complaint:
A
from the date of such extra-judicial demand.
19
Q
In mora solvendi, When Default Begins, IC No evidence of extra-judicial demand?
A
from the filing of complaint.
20
Q
In mora solvendi, Demand Not Required:
A
there is an express stipulation to that effect
the law so provides
the period is the controlling motive or the principal inducement for the creation of the obligation
Where demand would be useless
When the obligor has expressly acknowledged that he really is in default
21
Q
In mora solvendi, what are the effects?
A
a. When it has for its object a determinate thing, the delay places the risks of the thing on the debtor
b. He becomes liable for damages for the delay
22
Q
In mora solvendi, the effects, Interest on liability on the basis of?
A
contract and judgement
23
Q
In mora solvendi, the effects, Interest on liability on the basis of contract ?
A
based on stipulations as long as the same is not unconscionable
24
Q
In mora solvendi, the effects, Interest on liability on the basis of judgement?
A
legal rate 12% or 6% (other monetary obligation) per annum
25
Mora accipiendi: define?
default on the part of the creditork; the necessary cooperation and acceptance on his part.
26
Requisites of mora accipiendi?
a. An offer of performance by the debtor who has the required capacity
b. The offer must be to comply with the prestation as it should be performed
c. The creditor refuses the performance without just cause
27
Compensatio morae, define?
neither is in default
28
Compensatio morae is applicable only in?
reciprocal obligation
29
Compensatio morae, If one party complied, then compensatio morae is converted to?
mora solvendi or mora accipiendi
30
Compensatio morae occur in just MUTUAL obligation,
No. in such case, mora solvendi or mora accipiendi can occur.
31
Reciprocal obligations, the fulfillment by the parties should be
simultaneous, unless otherwise provided.
32
Reciprocal obligation is _ obligation based on _
bilateral; SAME source
33
Reciprocal obligation, The fulfillment of one party is conditioned in?
the fulfillment of the other party.
34
Reciprocal obligations: Where both are in default, their respective liability for damages
shall be offset equitably.
35
Cessation of Mora:
Renunciation by the creditor (express or implied)
| Prescription
36
FRAUD (DOLO), define?
The deliberate and intentional evasion of the normal fulfillment of obligations.
37
FRAUD (DOLO), implies?
malice or dishonesty
38
FRAUD (DOLO),cannot cover cases of?
mistake and errors of judgment made in good faith.
39
FRAUD (DOLO), the test is?
The element of intent.
40
Is degree of actual harm done as test of Fraud (Dolo)?
no. The element of intent, and not degree of actual harm done is the test.
41
Types of Fraud (dolo)?
Dolo Incidente
| Dolo Causante
42
Dolo Incidente,def?
Causes breach of obligation and committed in non-performance of pre-existing obligations
43
Dolo Causante,def?
Involves fraud in obtaining consent of one party and results to a VOIDABLE contract
44
_ based on fraud _ be extinguished by both party, but it can be _.
Liability;Cannot; mitigated
45
Distinguised, Fraud and Negligence, as to Cause Damage?
DELIBERATE intention other is not.
46
Distinguised, Fraud and Negligence, as to Liability?
CANNOT be mitigated or
| reduced by the courts; reduced in certain cases.
47
Distinguised, Fraud and Negligence, as to Waiver of an action to enforce liability due to future fraud or culpa?
Void; allowed
48
NEGLIGENCE (CULPA), def?
absence of diligence/due care required by the obligation
49
Negligence as Question of Fact?
No fixed standard of diligence applicable to each and every obligation.
Each case must be determined upon its particular facts and circumstances, and the degree of diligence required for the performance of an obligation must depend upon the circumstances of the particular obligation.
50
-
-
51
Negligence, Diligence, degree?
Extra-ordinary diligence
Ordinary diligence
Simple or slight diligence
52
Negligence, Diligence, degree, Extra-ordinary diligence, applicalbe to?
common carriers, commodatum, banks in handling money and property, and public utility such as telecommunications
53
Negligence, Diligence, degree, Ordinary diligence, def?
Common standard
54
Negligence, Diligence, degree, Simple or slight diligence?
No provision of law to support such but it can be stipulated
55
Kinds of Negligence?
Culpa Contractual
Culpa Aquiliana
Culpa Criminal
56
Kinds of Negligence, Culpa Contractual?
Is the fault or negligence of the debtor as an incident to the fulfillment of an existing obligation.
57
Kinds of Negligence, Culpa Contractual, Negligence in the performance of pre-existing obligation from?
a perfected contract.
58
Kinds of Negligence, Culpa Contractual, who is liable for negligence?
Only the parties of the contract
59
Kinds of Negligence, Culpa Contractual, Action is?
purely civil in character
60
Kinds of Negligence, Culpa Contractual, If other party is a juridical person, apply the?
principle of agency
61
Kinds of Negligence, Culpa Contractual, If other party is a juridical person, the principle of agency, explain?
“employee is the agent of principal, negligence of the employee is negligence of the principal.”
62
Kinds of Negligence, Culpa Contractual, If other party is a juridical person; Respondiat superior (master servant):, explain?
Negligence of the employer is the negligence of employee since the former has control to the latter.
63
Kinds of Negligence, Culpa Contractual, Defense of a good father, valid?
Defense of a good father is not a valid defense.
64
Kinds of Negligence, Culpa Contractual, proof needed is the?
breach of contract
65
Kinds of Negligence, Culpa Contractual, defense of diligence may?
,defense of diligence may mitigate
66
Kinds of Negligence, Culpa Aquiliana, def?
fault or negligence which constitutes an independent source of obligation between parties not previously bound.
67
Kinds of Negligence, Culpa Aquiliana, Quasi-delict founded on ?
negligent act or omission
68
Kinds of Negligence, Culpa Aquiliana, The party who committed the negligent act will be?
solely and principally liable.
69
Kinds of Negligence, Culpa Criminal, def?
vNegligence punishable by law as crime:
70
Kinds of Negligence, Culpa Aquiliana, The employer is primarily liable to the impaired party upon proof of the negligence of what?
(negligence in supervision and selection).
71
Kinds of Negligence, Culpa Criminal, Kinds?
a. Reckless imprudence
| b. Simple negligence
72
Kinds of Negligence, Culpa Criminal, If there are several accused, the liability?
the liability is solidary.
73
Kinds of Negligence, Culpa Criminal, If there are several accused, _ must be issued to satisfy the _ attached to a _ of party.
Writ of execution must be issued to satisfy the civil liability attached to a property of party.
74
Kinds of Negligence, Culpa Criminal, If the accused has no property, who will be liable?
guardian/employer will be liable civilly, subsidiary liability for employer under RPC
75
Kinds of Negligence, Culpa Criminal, Defenses for Employers?
a. Absence of employer-employee relationship
b. Crime was not committed by the accused-employee in the discharge of his function.
c. Prove that employee is not insolvent
76
CCon, CAqu, CCrim, Distinguished:
- In CAqu and Ccon, the negligence is direct, substantial and independent cause
- CCrim, reasonable doubt; CAqu and CCon, preponderance of evidence
- CAqu, defense of diligence; CCrim and CCon, such is not valid.
77
CONTRAVENTION OF THE TERMS, Prestation to do: or
not done or poorly done
78
REMEDIES IN CASE OF BREACH
```
I. SPECIFIC PERFORMANCE
II. RESOLUTION/RESCISSION
III. DAMAGES
IV. EXHAUSTION OF ALL PROPERTIES OF DEBTOR
V. ACCION SUBROGATORIA
VI. ACCION PAULIANA
```
79
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, Through?
actions.
80
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, why Not all _ are covered, like in prestation to do?
obligations; amount to involuntary servitude.
81
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, Whether the object of the obligation is determinate or generic, the creditor has the right?
to ask that the same be performed
82
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, implies that its basis is a?
contractual relation between plaintiff and defendant.
83
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, In case of _, the delivery of any thing belonging to the species stipulated will be _
generic objects; sufficient;
84
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, if the debtor does not make the delivery, the creditor can?
demand that things of the kind agreed upon be be delivered to him at the expense of the debtor
85
REMEDIES IN CASE OF BREACH, SPECIFIC PERFORMANCE, Can the debtor, avoid the obligation by paying damages if the creditor insists on the performance, in case of generic objects?
No.
86
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Rescission under Art. 1191 of the Civil Code is an action for ? not _? not in a sense as it is used in _
resolution; defective contract.
87
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Applicable only in?
reciprocal obligations
88
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Applicable only in reciprocal obligations such as?
negotiorum gestio, contract of lease, contract of sale.
89
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, The power to rescind is given to the?
injured party.
90
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, When one party fails to comply with his obligation under a contract, the other party has the right to?
either demand performance or ask for the resolution of the contract
91
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Where both parties have committed a breach of obligation and it cannot be determined who was the first infractor, the contract shall be deemed?
extinguished and each shall bear his/its own damages
92
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: If the obligation has not yet been performed, extra-judicial declaration of resolution or rescission by the party, would suffice?
ready and willing to perform
93
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: If the obligation has not yet been performed, extra-judicial declaration of resolution or rescission by the party who is ready and willing to perform would suffice;he can refuse to perform if the other party is?
not ready and willing to perform.
94
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: If the injured party already performed such as the property has already been delivered to the other party,, he cannot by his own, provided that the other party opposes rescission?
declaration rescind the contract and reacquire title to the property
95
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: If the injured party already performed such as the property has already been delivered to the other party, he cannot by his own declaration rescind the contract and reacquire title to the property, if the other party opposes rescission. In such case, court action?
must be taken,
96
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: If the injured party already performed such as the property has already been delivered to the other party, he cannot by his own declaration rescind the contract and reacquire title to the property, if the other party opposes rescission. In such case, court action must be taken, and the function of the court?
to declare the rescission as properly made, or to give a period to the debtor in which to perform
97
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: if the debtor impugns the declaration of extra-judicial declaration of rescission, it shall be subject to?
judicial determination
98
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Declaration of Rescission: But where the other party does not oppose or impugn the extra-judicial declaration of rescission, such declaration will
produce legal effect.
99
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, The right to resolve or rescind is?
is not absolute
100
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, The court is given
discretionary power to allow a period within which a person in default may be permitted to perform the stipulation upon which the claim for rescission of the contract is based.
101
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Requisite for Action for Resolution
Reciprocal obligation,
Complete performance of the aggrieved party or at least substantial compliance
The other party committed substantial breach, not trivial or slight only like 10-day delay of delivery
The plaintiff, for the action to prosper, should not be guilty of breach
The subject matter of the obligation is not yet passed to an innocent third person
102
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Requisite for Action for Resolution, The other party committed substantial breach, not trivial or slight only like 10-day delay of delivery, There is substantial breach if the non-performance of obligation
defeats the very rights of the other party for which the obligation is based
103
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Requisite for Action for Resolution, The other party committed substantial breach, not trivial or slight only like 10-day delay of delivery, Rescission will not be permitted for a
slight or casual breach of the contract but only for such breaches as are so substantial and fundamental as to defeat the object of the parties in making the agreement
104
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Purpose of action for resolution:
status quo ante
105
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, The exercise of the power to rescind extinguishes the
obligatory relation as if it had never been created, the extinction having a retroactive effect.
106
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, The rescission is equivalent to
Invalidating and unmaking the juridical tie, leaving things in their status before the celebration of the contract.
107
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Where a contract is rescinded, it is the duty of the court to
require both parties to surrender that which they have respectively received and to place each other as far as practicable in his original situation
108
REMEDIES IN CASE OF BREACH, RESOLUTION/RESCISSION, Rescission not possible:
If restitution and restoration to status quo ante is not possible because it will prejudice the rights of third party, the only remedy left is damages or specific performance.
- Restitution and specific performance are alternative remedies, only one can be chosen.
- Even if the aggrieved party chose restitution but the same is impossible, the court can still order specific performance.
109
REMEDIES IN CASE OF BREACH, DAMAGES, Damages must be?
proved
110
REMEDIES IN CASE OF BREACH, DAMAGES, Damages must be proved except in?
MORAL DAMAGES on rape cases and CIVIL INDEMNITY on death cases.
111
REMEDIES IN CASE OF BREACH, DAMAGES, Types of Damages (MENTAL):
Moral damages: Exemplary damages:Nominal damages: Temperate damages: Actual damages: Liquidated damages:
112
REMEDIES IN CASE OF BREACH, DAMAGES, Types of Damages (MENTAL): Moral damages: Exemplary damages:Nominal damages: Temperate damages: Actual damages: Liquidated damages: define or explain each
1. Moral damages: to compensate victim for mental anguish, sleepless nights, anxiety, etc.
2. Exemplary damages: punitive damages, set the defendant as example to society and serve as a deterrent for the performance of similar act.
3. Nominal damages: awarded for breach of right, when the right is known and established.
4. Temperate damages: awarded when amount of damages cannot be determined but the injury is obvious.
5. Actual damages: all necessary related expenses and lost or foregone income
6. Liquidated damages: arise from contractual relations which are agreed upon by both parties. No need to prove damages as long as contract is clear.
113
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Applicable only when?
the obligation is originally monetary or pecuniary in nature (money or property)
114
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR,The creditor has the right to
The creditor has the right to look at the asset of the debtor for the satisfaction of the debt
115
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Ways:
1. Execution:
| 2. Attachment:
116
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Ways: 1. Execution:?
Subject to exempted property i.e. family home, support,
117
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Ways: 2. Attachment:
Property of debtor is reserved for satisfaction of pending judgment.
118
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Ways: 2. Attachment: Only applicable if there is a
a pending litigation.
119
REMEDIES IN CASE OF BREACH, EXHAUSTION OF ALL PROPERTIES OF DEBTOR, Ways: 2. Attachment: Writ of attachment can be
issued by the court even before final judgment.
120
REMEDIES IN CASE OF BREACH, ACCION Subrogatoria
The action which the creditor may exercise in the place of his negligent debtor in order to preserve or recover for the patrimony of the debtor the product of such action, and then obtain therefrom the satisfaction of his own credit.
121
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA, The creditor shall be ?
substituted to all the rights the debtor has as against third person.
122
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA, To exercise accion subrogatoria
a previous approval of the court is not necessary.
123
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA, Ways:
Garnishment & Assignment
124
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA, Ways: Garnishment & Assignment define?
1. Assignment
- i.e. repudiated share in inheritance
- If repudiation (debtor refuses to accept his inheritance) prejudices rights of third person, accion subrogatoria can be filed by the third person.
- If the inheritance is repudiated and the same was used to fulfill the obligation of the debtor, in case there is excess, the same cannot be recovered by the heir.
2. Garnishment
- Bank pays the debt of the depositor to the creditor, the debt paid will be subtracted to the deposit of the depositor.
125
-ef?
-
126
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA,ACCION PAULIANA,
Action to rescind or revoke acts which the debtor may have done to defraud them or acts which are considered as fraudulent reductions of the properties of the debtor which constitute the guaranty for his debts.
127
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA,ACCION PAULIANA, All acts of the debtor which reduce his patrimony in fraud of his creditors, whether by gratuitous or onerous title, can be
revoked by this action.
128
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA,ACCION PAULIANA, Revocable actions:
- Alienations of property
- Payments of debts which are not due
- Renunciations of rights such as the right of usufruct or an inheritance
- Assignments of credit
- Remission of debts
- Renunciation of a prescription which has already been acquired.
- Judicial acts such as when the debtor, in connivance with another, permits the latter to bring an action against him and obtain a judgment by default or confession and such judgment is enforced against the debtor’s property.
129
REMEDIES IN CASE OF BREACH, ACCION SUBROGATORIA,ACCION PAULIANA, Revocable actions:Exception:
Payment of pre-existing obligations already due, whether natural or civil, cannot be impugned by this action.
130
CASO FORTUITO (FORTUITOUS EVENT)
An event which takes place by accident and could not have been foreseen.
131
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), An event which takes place by accident and could not have been foreseen, provided
fault or negligence cannot be imputed to the debtor.
132
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Force Majeure (fuerza mayor):
Inevitable accident or casualty; an accident produced by any physical cause which is irresistible.
- The event which we could neither foresee nor resist.
- The term generally applies, broadly speaking, to natural accidents.
133
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Types of Caso Fortuito:
1. Ordinary: by Nature, such as earthquakes, storms, floods, epidemics and fires
2. Extra-ordinary: by the act of man, such as an armed invasion, attack by bandits, governmental prohibitions, robbery, etc.
- For an act of man to constitute fortuitous event, it is necessary that they have the force of an imposition which the debtor could not have resisted.
134
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Requisite of a fortuitous event to exempt a man from liability
1. The cause of the unforeseen and unexpected occurrence, or the failure of the debtor to comply with his obligations, must be independent of human will.
2. It must be impossible to foresee the event which constitutes the caso fortuito, or if it can be foreseen, it must be impossible to avoid.
3. The occurrence must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner.
4. The obligor must be free from any participation in the aggravation of the injury resulting to the creditor.
135
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Jurisprudence on fortuitous events:
- Employee strike on manufacturing companies is a fortuitous event.
- Tire blowout is not a fortuitous event if:
1. Driver is over-speeding.
2. Common carrier accepted passengers beyond normal capacity.
- Tire blowout is a fortuitous event if:
1. Tires installed are new; in this case the product manufacturer should be blamed.
- Typhoon is not a fortuitous event especially for maritime vessels if:
1. Despite warning, vessels continues journey; in this case, it is negligence.
136
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Instances where debtor is still liable despite fortuitous event:
1. Express stipulation between parties
2. Expressly imposed by law
3. The nature of the obligation of the debtor requires the assumption of risk (aliatory contracts)
137
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Instances where debtor is still liable despite fortuitous even, Expressly imposed by law
- Article 1169 par 2, where the debtor promises to deliver same subject to two parties then there is breach of contract. Hence, even if there is fortuitous event, debtor is still liable.
- Contract of depositum to innkeepers or hotel owners, the general rule is that they are not liable for robbery. However, they can be liable if the robbery is committed by their employee. Robbery in this case is a fortuitous event.
- Contract of deposit of baggage on bus compartment, liable if the same is lost due to fortuitous event.
138
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Instances where debtor is still liable despite fortuitous even,, 3. The nature of the obligation of the debtor requires the assumption of risk (aliatory contracts)
Governed by happening of future contingent event such as insurance to take care of contents of a warehouse. If the warehouse and the contents from the creditor are burned due to fortuitous event, the creditor is liable.
Forward or Commodities contract such as when debtor ordered 100 metric tons of sugar to creditor to be delivered next year, the creditor must deliver whether or not there is fortuitous event like pestilence. In case there is fortuitous event, creditor must outsource sugar to deliver.
139
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Doctrine of Created or Assumer Risks:
Those who benefit from the maintenance or operation of dangerous machineries or facilities must indemnify for the injuries or damages that they may cause.
140
REMEDIES IN CASE OF BREACH, CASO FORTUITO (FORTUITOUS EVENT), Doctrine of Created or Assumer Risks: Exception:
Unless the injury is caused by the inexcusable fault or negligence of the victim
141
REMEDIES IN CASE OF BREACH, TRANSMISSIBILITY OF RIGHTS AND OBLIGATIONS
Rights and obligations are transferrable to heirs, assignees, and successors-in-interest
142
REMEDIES IN CASE OF BREACH, TRANSMISSIBILITY OF RIGHTS AND OBLIGATIONS, Exceptions:
depending on the nature of the rights or obligations, some of them may be intransmissible:
1. Expressly stipulated in contract
2. Expressly stated in law
3. Nature of obligation makes it personal (personal in character or personal qualification
143
REMEDIES IN CASE OF BREACH, TRANSMISSIBILITY OF RIGHTS AND OBLIGATIONS, Exceptions:
1. Expressly stipulated in contract?
If promissory note is negotiable in nature then it may be transferred to others upon endorsement and negotiations, but not if it states “pay to X only.”
144
REMEDIES IN CASE OF BREACH, TRANSMISSIBILITY OF RIGHTS AND OBLIGATIONS, Exceptions:
2. Expressly stated in law
a. In partnership, the death of a partner extinguishes the partnership since the same is purely personal and based on trust and confidence.
b. In agency, the death of principal or agent extinguishes the agency.
c. In usufruct, death of usufructuary extinguishes the usufruct. Usufruct: real right whereby the right to possess, use and derive benefits and fruits of the property is given to one person while the naked ownership belongs to the other.
d. In commodatum, the death of the borrower extinguishes the commodatum. The same cannot be passed to the heirs and other successors. The obligation to pay on part of the heirs now becomes a natural obligation. Exception: Immediate member of the family
145
REMEDIES IN CASE OF BREACH, TRANSMISSIBILITY OF RIGHTS AND OBLIGATIONS, Exceptions:
3. Nature of obligation makes it personal (personal in character or personal qualification
- In succession, the monetary obligation of the deceased is personal; heirs cannot be compelled to pay because debt is chargeable only to the estate of the deceased.
- Heirs are only liable for the said debts if they divide the estate of their parents without paying the debts first.
- Transfer of public office or other position which requires personal qualification is also not allowed.
