Oblicon Flashcards by notpearl abare

Article 1156

An obligation is a juridical necessity to give, to do or not to do.

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Latin word that means tying or binding

obligatio

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Juridical necessity meaning

in case of noncompliance the court of justice may enforce fulfillment or damages.

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Passive subject

Debtor or Obligor

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Active Subject

Creditor or Obligee

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Object or Prestation

Subject matter of the obligation

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Also called efficient cause

Juridical tie or legal tie

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Obligation

the act or performance which the law will enforce.

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Obligation to give

Real obligation

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Obligation to do or not do.

Personal obligation

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Article 1157

Obligation arise from:
Law
1. Contracts
2. Quasi-contracts
3. Delicts or acts or ommsions punished by law
4. Quasi-delicts

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Contracts arise from

stipulations of the parties

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Quasi-contracts arise from

arise from lawful, voluntary, and unilateral acts which are enforceable to the end that no one should unjustly benefit or enrich at the expense of another.

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Crimes or acts of omissions punised by law arise from

civil liability which is the consequence of criminal offenses

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Quasi-delicts or torts arise from

damaged caused to another through an act or omission, negligence, but no pre existing contractual relationship.

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Article 1158

Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable.

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Special laws examples

Labor Code, Revised Penal Code

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Requirement of a valid contract

it is not contrary to the law, morals, good customs, public order, and public policy.

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Compliance in good faith means

compliance or performance in accordance with the stipulations or terms of the contract. Sincerity and honesty must be observed.

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Article 1159

Obligations arising from contracts have the force of law between contracting parties and should complied with in good faith.

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Article 1160

Obligations arising from quasi contracts.

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Kinds of quasi contracts

negotiorum gestio and solutio indebiti

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Negotiorum gestio is the

voluntary management of the property or the affairs of another without the knowledge or consent of the latter.

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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.

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No one should unjustly benefit or enrich at the expense of another.

Art. 2154

Article 1161

Obligations arising from criminal offenses shall be governed by penal laws. Delicts.

Scope of civil liability

Restitution Reparation Indemnification

ART. 1162

Obligations derived from quasi delicts

ART. 1163

Every person is obliged to give something si also obliged to take care of it with proper diligence of a good father of a family

class or

genus

Generic or

indeterminate refers only to a class or genus; not particular.

Diligence of a good father of a family

ordinary care that a diligence an average person should exercise over his own property

Deliver the fruits of the thing. ART.

1164

Deliver the accessions and accessories. ART.

1166

Answer for damages in case of non-fulfillment or breach. ART.

1179

ART. 1164

The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him.

spontaneous products of the soil and the young and other products of animals.

Natural fruits

spontaneous products of the soil and the young and other products of animals.

Industrial fruits

Civil fruits

those derived by virtue of a juridical relation.

Example of civil fruits:

Rents of buildings, price of leases of lands etc.

Example of industrial fruits:

Sugar cane; vegetables; rice, and all products of lands brought about by reason of human labor.

Example of natural fruits:

Grass; all trees and plants on lands produced without the intervention of human labor

In a contract of sale, the obligation arises

from the perfection of the contract even if the obligation is subject to a suspensive condition or a suspensive period where the price has been paid.

Personal Right

the right or power of a person (creditor) to demand from another (debtor), as a definite passive subject, the fulfillment of the latter's obligation to give, to do, or not to do.

Real Right

the right or interest of a person over a specific thing (like ownership, possession, mortgage), without a definite passive subject against whom the right may be personally enforced.

Personal right there is a

definite active subject and a definite passive subject

Real right there is

only definite active subject without any definite passive subject.

A personal right is, therefore, binding or enforceable only against a ______ _____, while a _____ __$$ is directed against the whole world.

particular person real right

ART. 1165

When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery. If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor. If the obligor delays, or has promised to deliver the same thing to two or more persons who do not

Recission means

cancelation of obligation

ART. 1166

The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned.

General rule in ART. 1166

all accessions and accessories are considered included in the obligation to deliver a determinate thing although they may not have been mentioned. This rule is based on the principle of law that the accessory follows the principal.

ART. 1167

person obliged to do something fails to do it, the same shall be executed at his cost. This same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone.

ART. 1168

When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense.

Ordinary delay

merely the failure to perform an obligation on time.

Legal delay or mora

the failure to perform an obligation on time which failure constitutes a breach of the obligation.

3 Kind of Delay

Mora Solvendi Mora Accipiendi Compensatio Morae

Delay on part of the debtor

Mora solvendi

Delay on both part of the debtor and creditor.

Compensatio Morae

Delay on the part of the creditor.

Mora Accipiendi

No delay in

negative personal obligation

3 requisites of delay

failure of the debtor to perform his (positive) obligation on the date agreed upon; (2) demand (not mere reminder or notice) 3. failure of the debtor to comply with such demand.

When demand is not necessary to put debtor on delay

1. "When the" obligation do provides. 2. "" law so provides. 3. When time is of the essence. 4. "" demand would be useless.

ART. 1170

Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages.

Fraud aka deceit or

dolo

Fraud

deliberate or intentional evasion of the normal fulfillment of the obligation.

Negligence aka Fault or

culpa

Negligence

lack of diligence only

Negligence

It is any voluntary act or omission, there being no bad faith or malice, which prevents the normal fulfillment of an obligation.

Indidental fraud latin

dolo incidente

Causal fraud latin

dolo causante

Causal fraud

fraud employed in the execution of the contract.

Incidental fraud

committed in the performance of an obligation already existing ent because of contract.

Waiver of action for future fraud

Void

ART. 1171

Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void.

Liability for fraud cannot be

mitigated or reduced by courts

Liability in negligence ___ be mitigated

can

ART. 1172

Responsibility arising from negligence in the performance of every kind of w obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances.

Waiver of action arising from negligence

Valid

Contractual negligence latin

culpa contractual

Civil negligence latin

culpa aquiliana

Criminal negligence latin

culpa criminal

ART. 1173

The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person, of the time and of the place. When negligence shows bad faith, the provisions of Articles 1171

Damages

money compensation awarded for loss or injury resulting from breach of contract or obligation by the other.

Diligence

attention and care required of a person in a given situation.

ART. 1174

Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which though foreseen, were inevitable.

Fortuitous event

any event which cannot be foreseen, or which, though foreseen, is inevitable. Stated otherwise, it is an event which is either impossible to foresee or impossible to avoid.

SPELL F M

Force Majeure

2 kind of fortuitous event

Ordinary Fortuitous event Extra ordinary Fortuitous event

Ordinary Fortuitous event

those events which are common and which the contracting parties could reasonably foresee.

Acts of Man

fortuitous event is an event independent of the will of the obligor but not of other human wills.

Acts of God

They refer to what is called majeure or those events which are totally independent of the will of every human being. (e g rain)

Acts of Man example

War, fire, robbery

Acts of God example

earthquake, flood, rain

ART. 1175

Usurious Transactions

Simple loan or

mutuum

Charging excessive interest.

Usury

legal interest

12%

Usury

contracting for or receiving interest in excess of the amount allowed by law for the loan etc.

Usury is now legal t or f

True

ART. 1176

The receipt of the principal by the ar creditor, without reservation with respect to the interest, shall give rise to the presumption that, said interest has been paid. The receipt of a later installment of a debt/ without reservation as to prior installments, shall likewise raise the presumption that such install- ments have been paid.

Presumption

meant the inference of a fact not actually known arising from its usual connection with another which is known or proved.

2 kind of presumption

Conclusive Presumption Disputable (Rebuttable) Presumption

Presumption that can't be contradicted.

Conclusive Presumption

ART. 1177

The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may have done to defraud them.

ART. 1178

Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary.

ART. 1179

Every 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. Every obligation which contain a resolutory condition shall also be demandable, without preju- dice to the effects of the happening of the event.

Pure Obligation

is one which is not subject to any condition and condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable.

Conditional Obligation

is one whose consequences are subject in one way or another to the fulfillment of a condition.

Characteristics of a condition.

Future and uncertain Past but unknown

Condition

a future and uncertain event, upon the happening of which, the acquisition or extinguishment of an obligation (or right) subject to it depends.

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.

Resolutory Condition

(condition subsequent) or one the fulfillment of which will extinguish an obligation (or right) already existing.

When the condition is fulfilled, the obligation extinguished.

Resolutory

the existence of the obligation is a mere hope.

Suspensive

the tie of law is consolidated

Resolutory

3 When is obligation is demandable at once.

When it is pure. When it is subject to a resolutory condition. When it is subject to resolutory period.

ART. 1180

When the debtor binds himself to pay when his means permit him to do so, the obligation shall be deemed to be one with a period, subject to the provisions of Article 1197.

Period

future and certain event upon the arrival of which the obligation subject to it either arises or is extinguished.

ART. 1181

In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.

ART. 1182

When the fulfillment of the condition depends upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon chance or upon the will of a third person, the obligation shall take effect in conformity with the provisions of this Code.

Suspensive

the happening of which gives rise to the obligation;

Conjuctive Condition

there are several conditions and all must be fulfilled;

Negative Condition

the condition consists in the omission of an act.

Positive Condition

the condition consists in the performance of an act; and

there are several conditions and all must be fulfilled;

Conjuctive Condition

the condition consists in the omission of an act.

Negative Condition

the condition consists in the performance of an act; and

Positive Condition

Potestative Condition

the condition depends upon the will of one of the contracting parties,

Casual Condition

the condition depends upon chance or upon the will of a third person;

the condition depends upon the will of one of the contracting parties,

Potestative Condition

the condition depends upon chance or upon the will of a third person;

Casual Condition

Implied Condition

the condition is merely inferred.

Possible Condition

the condition is capable of fulfillment, legally and physically;

Express Condition

the condition is clearly stated;

Impossible Condition

the condition is not capable of fulfillment, legally or physically.

the condition is capable of fulfillment, legally and physically;

Possible Condition

the condition is merely inferred.

Implied Condition

the condition is not capable of fulfillment, legally or physically.

Impossible Condition

the condition is clearly stated;

Express Condition

Condition classified as to effect

Suspensive Condition Resolutory Condition

Condition classified as to form

Express Implied

Condition classified as to possibility

Possible Condition Impossible Condition

Condition classified as to cause or origin

Potestative Condition Casual Condition Mixed

Condition classified as to mode

Positive Condition Negative Condition

Condition classified as to divisibility

Divisible Indivisible

Condition classified as to numbers

Conjunctive Disconjunctive

Disconjunctive

there are several conditions and only one or some of them must be fulfilled

Divisible

the condition is susceptible of partial performance,

Indivisible

the condition is not susceptible of partial performance.

the condition is susceptible of partial performance,

Divisible

the condition is not susceptible of partial performance.

Indivisible

Potestative; Suspensive Conditional obligation is

VOID

Potestative; Suspensive Obligation is

VALID

Potestative; Resolutory Obligation is

VALID

Casual: Suspensive Obligation is

VALID

ART. 1183

Impossible conditions, those con- trary to good customs or public policy and those prohibited by law shall annul the obligation which depends upon them. If the obligation is divisible, that part thereof which is not affected by the im- possible or unlawful condition shall be valid. The condition not to do an impossible thing shall be considered as not having been agreed upon.

Physically impossible conditions.

when they, in nature of things, cannot exist or cannot be done.

Legally impossible conditions

when they are contrary to law, morals, good customs, public order, or public policy.

ART. 1184

The condition that some event happen at a determinate time shall extinguish the obligation as soon as the time expires or if it has become indubitable that the event will not take place.

ART. 1185

The condition that some event will not happen at a determinate time shall render the obligation effective from the moment the time indicated has elapsed, or if it has become evident that the event cannot occur. If no time has been fixed, the condition shall be deemed fulfilled at such time as may have probably been contemplated, bearing in mind the nature of the obligation.

ART. 1186

The condition shall be deemed ful- filled when the obligor voluntarily prevents its ful- fillment.

ART. 1187

Retroactive Effects ARALIN MO SA LIBRO

The effects of a conditional obligation to give, once the condition has been fulfilled, shall retroact to the _______________.

day of the constitution of the obligation.

ART. 1188

The creditor may, before the fulfil ment of the condition, bring the appropriate actions for the preservation of his right. The debtor may recover what during the same time he has paid by mistake in case of a suspensive condition.

ART. 1189

When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the following rules shall be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition: (1) If the thing 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; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered; (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 other right than that granted to the usufructuary..

(1189) If the thing is lost without the fault of the debtor, the obligation shall be _______;

extinguished

(1189) If the thing is Improved by its nature, or by time, the improvement shall inure to the benefit of the ______

creditor

(1189) If it deteriorates through the fault of the debtor, the creditor may choose between the ______ of the obligation and its fulfillment, with _____ __ _____ in either case

recission indemnity for damages

(1189) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the _____

creditor

(1189) If the thing is lost through the fault of the debtor, he shall be obliged to ___ ______; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered

pay damages

(1189) If it is improved at the expense of the _____, he shall have no other right than that granted to the ______.

debtor usufructuary

ART. 1190

When the conditions have for their purpose the extinguishment of an obligation to give, the parties, upon the fulfillment of said conditions, shall return to each other what they have received. In case of loss, deterioration or improvement of the thing, the provisions which, with respect to the debtor, are laid down in the preceding article shall be applied to the party who is bound to return. As for obligations to do and not to do, the provisions of the second paragraph of Article 1187 shall be observed as regards the effect of the extinguishment of the obligation.

Usufruct

is the right to enjoy the use and fruits of a thing belonging to another.

ART. 1191

The power to rescind obligations both is implied in reciprocal ones, in case one of the obligors should not comply with what is Incumbent upon him. The injured party may choose between the fulfillment and the rescission of the obligation,bwith the payment of damages in either case. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period. This is understood to be without prejudice to the rights of third persons who have acquired the thing, in accordance with Articles 1385 and 1388 and the Mortgage Law.

Unilateral

when only one party is obliged to comply with a prestation.

Bilateral

when both parties are mutually bound to each other.

Reciprocal obligations

those which arise from the same cause and in which each party is a debtor and creditor sa action of the other, such that the performance of one is designed to be the equivalent and the condition for the performance of the other of his own obligation.

Non-reciprocal obligations

those which do not impose simultaneous and correlative performance on both parties. In other words, the performance of one party is not dependent upon the simultaneous performance by the other of his own obligation.

ART. 1192

case both parties have com- mitted a breech of the obligation, the liability of the first infractor shall be equitably tempered by the courts. If it cannot be determined which of the parties first violated the contract the same shall be deemed extinguished and each shall bear his own damages (n)

(1192) case both parties have com- mitted a breech of the obligation, the liability of the first infractor shall be equitably tempered by the _____. If it cannot be determined which of the parties first violated the contract the same shall be deemed _____ and each shall bear his own ______ (n)

courts extinguished damages

ART. 1193

Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day comes. Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain. A day certain is understood to be that which must necessarily come, although it may not be known when. If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be regulated by the rules of the preceding section.

The obligation begins only from a day certain upon the arrival of period

Suspensive Period (ex die)

The obligation is valid up to a day certain and terminates upon arrival of the period.

Resolutory Period (in diem)

Suspensive Period latin

ex die

Resolutory Period latin

in diem

Resolutory Period

The obligation is valid up to a day certain and terminates upon arrival of the period.

Kinds of period according to effect

Suspensive period Resolutory period

Kinds of period according to source

Legal period Conventional or voluntary period Judicial period

Kinds of period according to definiteness

Definite period Indefinite period

Legal period

When it is provided for - by laws;

Conventional or voluntary period

When it is agreed to by the parties

Judicial period

When it is fixed by the court.

Indefinite period

When it is not fixed or it is not - known when it will come. Where the period is not fixed but a period is intended, the courts are usually empowered by law to fix the same.

ART. 1194

In case of loss, deterioration or improvement of the thing before the arrival of the day certain, the rules in Article 1189 shall be

ART. 1195

Anything paid or delivered before the arrival of the period, the obligor being unaware of the period or believing that the obligation has become due and demandable, may be recovered, with the fruits, and interests.

ART. 1196

Whenever in an obligation a period is designated, it is presumed to have been established for the benefit of both the creditor and the debtor, unless from the tenor of the same or other circumstances, it should appear that the period has been established in favor of one or of the other.

ART. 1197

If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that a period was intended, the courts may fix the duration thereof. The courts shall also fix the duration of the period when it depends upon the will of the debtor. In every case, the courts shall determine such period as may under the circumstances have been probably contemplated by the parties. Once fixed by the courts, the period cannot be changed by them.

Contractual Period

period fixed by the parties in their contract

ART. 1198

Art. 1198. The debtor shall lose every right to make use of the period: (1)When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or securityfor the debt; (2) When he does not furnish to the creditor the guaranties or securities which he has promised; (3) When by his own acts he has impaired said guaranties or securities after their establishment, and whenthrough a fortuitous event they disappear, unless he immediately gives new ones equally satisfactory; (4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period; (5) When the debtor attempts to abscond. (1129a)

ART. 1199

A person alternatively bound by different prestations shall completely perform one of them. The creditor cannot be compelled to receive (h) part of one and part of the other undertaking.

Simple obligation

1 prestation

Compound obligation

2 prestation

Conjuctive obligation

one where there are several prestations and all of them are due

Distributive obligation

one where two (2) or more of the prestations is due. It may be: alternative or facultative

Alternative obligation

one where severa prestations are due but the performance of one is sufficient

Facultative obligation

one where only one prestation is due but the debtor may substitute another.

ART. 1200

The right of choice belongs to the debtor, unless it has been expressly granted to the creditor. The debtor shall have no right to choose those prestations which are impossible, unlawful or which could not have been the object of the obligation.

ART. 1201

The choice shall produce no effect except from the time it has been communicated.

ART. 1202

The debtor shall lose the right of choice when among the prestations whereby he is alternatively bound, only one is practicable.

ART. 1203

If through the creditor's acts, the debtor cannot make a choice according to the terms of the obligation, the latter may rescind the contract with damages.

ART. 1204

The creditor shall have a right to indemnity for damages when, through the fault of the debtor, all the things which are alternatively the object of the obligation have been lost, or the compliance of the obligation has become impossible. The indemnity shall be fixed taking as a basis the value of the last thing which disappeared, or that of the service which last became impossible. Damages other than the value of the last thing -or service may also be awarded.

ART. 1205

When the choice has been expressly given to the creditor, the obligation shall cease to be alternative from the day when the selection has been communicated to the debtor. Until then the responsibility of the debtor shall be governed by the following rules: padin (1) If one of the things is lost through a fortuitous event, he shall perform the obligation by delivering that which the creditor should choose from among the remainder, or that which remains if only one subsists; (2) If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of those subsisting, or the price of that which, through the fault of the former, has, disappeared, with a right to damages; (3) If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon the price of any one of them, also with indemnity for damages. The same rules shall be applied to obligations to do or not to do in case one, some or all of the prestations should become impossible.

(1205) If the loss of one of the things occurs through the fault of the debtor, the creditor may claim any of those _____, or the price of that which, through the fault of the former, has, ______ , with a right to ______;

subsisting disappeared damages

(1205) If all the things are lost through the fault of the debtor, the choice by the creditor shall fall upon the price of ________, also with _______.

of any of them indemnity for damages.

(1205) If one of the things is lost through a _______, he shall perform the obligation by delivering that which the creditor should choose from among the ______, or that which remains ______ subsists;

fortuitous event remainder if only one

ART. 1206

When only one prestation has been agreed upon, but the obligor may render another in substitution, the obligation is called facultative. The loss or deterioration of the thing intended as a substitute, through the negligence of the obligor, does not render him liable. But once the substitution has been made, the obligor is liable for the loss of the substitute on account of his delay, negligence or fraud.

Facultative obligation

is one where only one prestation has been agreed upon but the obligor may render another in (see Art. 1156.) substitution.

ART. 1207

The concurrence of two or more creditors or of two or more debtors in one and the same obligation/does not imply that each one of the former has a right to demand, or that each one of the latter is bound to render, entire compliance with the prestation. There is a solidary liability only when the obligation expressly so states, or when the law or the nature of the obligation requires solidarity.

ART. 1208

If from the law, or the nature or the wording of the obligations to which the preceding article refers, the contrary does not appear, the credit or debt shall be presumed to be divided into as many equal shares as there are creditors or debtors, the credits or debts being considered distinct from one another, subject to the Rules of Court governing the multiplicity of suits.

Joint obligation

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.

Solidary obligation

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

pro rata

Joint liability

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

Solidary obligation

We promise to pay

Joint liability

Word for joint latin

mancomunada mancomunadamente

Solidary words latin

solidaria solidum juntos or separadamente

I promise to pay

Solidary

Kinds of solidary according to parties bound

Passive Active Mixed

Passive solidary

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.

Active solidary

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 solidary creditors with powers to exercise the rights of others in the same manner as their rights.

Mixed solidary

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.

Conventional solidarity

where solidarity is agreed upon by the parties. (Art. 1306.) If nothing is men tioned in the contract relating to solidarity, the obligation is only joint.

Legal solidarity

where solidarity is imposed by the law.

Kinds of solidary according to source

Conventional Legal Real

Real solidarity

imposed by the nature of the obligation

ART. 1209

If the division is impossible, the s right of the creditors may be prejudiced only by their collective acts, and the debt can be enforced only by proceeding against all the debtors. If one of ver the latter should be insolvent, the others shall not be liable for his share.

ART. 1210

The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does solidarity of itself imply indivisibility.

ART. 1211

Solidarity may exist although the creditors and the debtors may not be bound in the same manner and by the same periods and conditions.

Uniform

when the parties are bound by the same stipulations;

ART. 1212

Each one of the solidary creditors may do whatever may be useful to the others, but not anything which may be prejudicial to the latter.

ART. 1213

A solidary creditor cannot assign so his rights without the consent of the others.

ART. 1214

The debtor may pay any one of the solidary creditors; but if any demand, judicial or extrajudicial, has been made by one of them, payment should be made to him.

ART. 1215

Novation, compensation, confusion or remission of the debt, made by any of the solidary creditors or with any of the solidary debtors, shall extinguish the obligation, without prejudice to the provisions of Article 1219. The creditor who may have executed any of these acts, as well as he who collects the debt, shall be liable to the others for the share in the obligation corresponding to them.

ART. 1216

The creditor may proceed against any one of the solidary debtors or some or all of them simultaneously. The demand made against one of them shall not be an obstacle to those which may subsequently be directed against the others, so long as the debt has not been fully collected.

ART. 1217

Payment made by one of the solidary debtors extinguishes the obligation. If two or more solidary debtors offer to pay, the creditor may choose which offer to accept. He who made the payment may claim from his co-debtors only the share which corresponds to each, with the interest for the payment already made. If the payment is made before the debt is due, no interest for the intervening period may be demanded. When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each.

ART. 1218

Payment by a solidary debtor shall not entitle him to reimbursement from hisco-debtors if such payment is made after the obligation has prescribed or become illegal.

ART. 1219

The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors, in case the debt had been totally paid by anyone of them before the remission was effected.

ART. 1220

The remission of the whole obligation obtained by one of the solidary debtors, does not entitle him to reimbursement from his co- debtors.

ART. 1221

If the thing has been lost or if the prestation has become impossible without the fault of the solidary debtors, the obligation shall be extinguished. If there was fault on the part of any one of them, all shall be responsible to the creditor, for the price and the payment of damages and interest, without prejudice to their action against the guilty or negligent debtor. If through a fortuitous event, the thing is lost or the performance has become impossible after one of the solidary debtors has incurred in delay through the judicial or extrajudicial demand upon him by the creditor, the provisions of the preceding paragraph shall apply.

ART. 1222

A solidary debtor may, in actions filed by the creditor, avail himself of all defenses which are derived from the nature of the obligation and of those which are personal to him, or pertain to his own share. With respect to those which personally belong to the others, he may avail himself thereof only as regards that part of the debt for which the latter are responsible.

ART. Defenses Available to a Solidary Debtor

1222

ART. No Right to Reimbursement in Case of Remission

1220

ART. Paymentto Any of the Solidary Creditors

1214

ART. Indivisibility and Solidarity Distinguished

1210

ART. Rules in Case Thing has been Lost or Prestation Has Become Impossible

1221

ART. Effect of Loss, Deterioration, or Improvement Before Arrival of Period

1194

ART. When Obligation Can Be Demanded Before Lapse of Period

1998

ART. Effect When Only One Prestation is Practicable

1202

ART. When Debtor may Rescind Contract.

1203

ART. Effect of Loss of Objects of Obligation; Basis Indemnity

1204

ART. Meaning of Facultative Obligation; Effect of Loss; Alternative and Facultative Obligations Distinguished

1206

ART. Kinds of Obligation According to Object; Meaning of Alternative Obligation

1999

ART. Payment Before Arrival of Period; Debtor Presumed Aware of Period; No Recovery in Personal Obligations

1195

ART. Presumption as to Benefit of Period; Exceptions to the General Rule; Computation of Term or Period

1996

ART. Transmissibility of Rights

1178

ART. Effects of Payment after Obligation has Prescribed or Become illegal; Prescriptive Periods of Actions

1218

ART. Requisites for Application of Article ____; Kinds of Loss: Rules in Case of Loss, Deterioration, or Improvement of Thing During Pendency of Suspensive Condition

1189

ART. Where Both Parties are Guilty of Breach

1192

ART. Retroactive Effects of Fulfillment of Suspensive Condition; Retroactive Effects as to Fruits and Interests in Obligations to Give

1187

ART. Positive Condition

1184

ART. Grounds for Liability; Fraud and Negligence Distinguished

1170

ART. Grounds for Liability; Fraud and Negligence Distinguished

1170

ART. Different Kinds of Fruits; Right of Creditor to the Fruits; When Obligation to Deliver Fruits Arises; Meaning of Personal Right and Real Right; Personal Right and Real Right Distinguished; Ownership Acquired by Delivery

1164

ART. Meaning of Simple Loan or Mutuum; Meaning of Usury; Requisites for Recovery of Interest

1175

ART. Meaning of Fortuitous Event; Fortuitous Event Distinguished from Force Majeure; Kinds of Fortuitous Events; Requisites of a Fortuitous Event; Rules as to Liability in Case of Fortuitous Event

1174

1164

ART. Meaning of Specific or Determinate Thing Meaning of Generic or Indeterminate Thing: Specific Thing and Generic Thing Distinguished; Duties of Debtor in Obligation to Give a Determinate Thing; Duties of Debtor in Obligation to Deliver a Generic Thing

1163

ART. Responsibility Arising from Fraud Demandable; Waiver of Action for Future Fraud Void; Waiver of Action for Past Fraud Valid

1171

ART. Quasi-contractual Obligations; Kinds of Contractual Obligation

1160

ART. Legal Obligations

1158

ART. Obligations Arising from Quasi-delicts; Requisites of Quasi-delict; Crime Distinguished from Quasi-delict

1162

ART. Civil Liability Arising from Crimes or Delicts; Scope of Civil Liability

1161

ART. Where Duration of Period Depends upon will of debtor.

1180

Contractual negligence (Culpa contractual)

negligence resulting in breach of contracts.

5 When demand is not necessary to put debtor in delay

When the obligation so provides (kapag sinabi ng obligation; nasa contract) When the law so provides (may batas kung kalian dapat i-delive o bayaran) When the time is of the essence (example is yung obligation to deliver the wedding dress before the wedding day) When demand would be useless (wala ng kwenta yung demand) When there is a performance by a party in reciprocal obligations (delay na ang isang party kapag na-fulfill na ng isang party yung obligation niya)

Mora accipiendi

The creditor is guilty of breach of obligation

Mora solvendi

The debtor is guilty of breach of obligation He is liable for interest (if loan) and damages.

Accessions

additions or improvements upon the principal object. You can still use the principal object even without the accessions.

Accessories

things joined or included in the principal object. It is necessary for the perfection, use, and preservation of the principal object.

Reparation

to pay for any damages caused or In case of inability to return the property stolen, the culprit must pay the value of the property stolen

Restitution

return the property to the owner or if loss, its monetary value.

Injury

act or omission that cause harm

Damage

the harm done to someone

Damages

sum of money to pay to the damaged. (compensation money)

Right

power to demand any prestation.

Wrong

an actions that are not in line with accepted moral and ethical principles.

Unenforceable Contract

valid but can’t be enforced.

Generic or Indeterminate

cannot be pointed out with particularity, can be replaced as long as same class and kind.

Specific or Determinate

particularly designated or physically segregated from others. (sinabi mo na “ito”; nahiwalay na sa iba) cannot be substituted even if it is of the same kind or quality without the consent of creditor.

Which of the following is not a requisite of an obligation? a. Demand b. Debtor c. Creditor d. Efficient cause

Which of the following is not a source of an obligation? a. Law b. Contracts c. Quasi-delicts d. Demand

What do you call the voluntary administration of another one's property without prior consent? a. Natural obligation b. Quasi-delict c. Solutio indebiti d. Negotiorum gestio

If a party caused damage to another party without a pre-existing contractual relationship, it is called a. Crime b. Quasi-delict c. Solutio indebiti d. Negotiorum gestio

The default standard of care to be given to an object when a person is obliged to give this particular object a. Good diligence of a good father of a good family b. Good diligence of a father of a family c. Diligence of a good father of a family d. Diligence of a father of a good family

This is the creditor's right that is capable of being enforced from the debtor. a. Natural right b. Moral right c. Real right d. Personal right

It is a specifically identified thing from other things of the same kind. a. Personal thing b. Real thing c. Generic thing d. Determinate thing

In which of the following does "no demand, no delay rule" applies to? a. When failure to complete a required performance by a date certain set forth therein will constitute an incurable breach. b. When the parties failed to stipulate whether there is a need for demand. c. When the parties stipulated that demand is not necessary d. When the law specified that demand is not necessary to be made

This term refers to the creditor's delay a. Mora accipiendi b. Mora solvendi ex re c. Mora solvendi ex persona d. Compensatio Morae

In which of the following cases will not result to liability when there is a loss due to fortuitous event? a. In an obligation to deliver a determinate thing, there is no stipulation whether there is a debtor's liability in case of loss due to fortuitous event. b. There is a risk assumption requirement as to the nature of the obligation. c. There is a stipulation that there is a liability even though there is a loss due to a fortuitous event. d. There is a delay on the part of the debtor.

Which of the following is not a remedy for a creditor to pursue claims against the debtor? a. The creditor can exercise all the rights and bring all the actions of the debtor. b. The creditor can impugn the acts which the debtor may have done to defraud his creditors. c. The creditor can compel the performance of service in an obligation to do. d. The creditor can pursue the property owned and possessed by the debtor.

Joseph borrowed PhP70,000 from John. Before John could collect from Joseph, John suffered from respiratory distress and immediately passed away, leaving his daughter Jane as heir. Which of the following is not incorrect? a. Jane cannot collect from Joseph because the credit right transmission is prohibited by law. b. Jane can collect from Joseph if John and Joseph agreed on it in advance. c. Jane cannot collect from Joseph as the credit right is personal to John. d. Jane can collect from Joseph although Joseph and John did not agree that John's credit right will pass to Jane.

Anna obliged herself to give Mary a specific Pandora jewelry item if Mary succeeds in obtaining her CPA license. What kind of obligation is this? a. Obligation with a period b. Obligation with a suspensive condition c. Pure obligation d. Obligation with an impossible condition since Mary is still moving on from her ex-lover and cannot study well

Lovely has many debtors and she needs money right now due to enhanced community quarantine. She can collect immediately from the following debtors, except from: a. A debtor whose obligation is subject to an ex die period b. A debtor whose obligation is subject to an in diem period c. A debtor whose obligation is subject to a resolutory condition d. A debtor who has a pure obligation

Which of the following is a void obligation a. Pedro is obliged to give Tirso PhP88,000 if Tirso does not go to the Sun b. Roxanne is obliged to give Cielo PhP88,000 if Roxanne goes to Wuhan c. Ella is obliged to give Robin PhP88,000 if Robin will go to Italy d. Roger is obliged to give Therese PhP88,000 if Therese will win in a ranked game in the Mobile Legends

Frank is obliged to give Dario PhP37,500 if Ernesto dies. This obligation can be classified as: a. A pure obligation b. An obligation with a period c. An obligation with a resolutory condition d. An obligation with a suspensive condition

When a debtor is bound to pay when his means permit him to do so, the obligation can be classified as: a. A pure obligation b. An obligation with a period c. An obligation with a resolutory condition d. An obligation with a suspensive condition

Presumably, it is for whose benefit whenever a period is being designated in an obligation? a. For the creditor b. For the debtor c. Both for the creditor and for the debtor d. For the court who fixed the period

Jennifer owes Friedrich PhP8,000. Jennifer shall not lose the right to make use of the period when Jennifer a. Does not furnish any security to Friedrich. b. Attempts to abscond. c. Violates any undertaking in which Friedrich considered in agreeing to the period. d. Becomes insolvent.

In which of the following cases does not turn an alternative obligation into a simple obligation? a. Regina, the debtor, has already told Ogie, the creditor, of her choice. b. When Paul, the creditor, was expressly given the right to choose and he has communicated his choice to Tina, the debtor. c. When among the five prestations that are due, only one is practicable. d. When among the four prestations that are due, one of them became impossible and one of them became unlawful.

Angela and Miya are childhood friends. Events transpired which made Miya obliged to give Angela a specific necklace, a specific car, or a specific doll. They agreed that Angela will have the right to choose what will be given to her. Before Angela made her choice, Miya drove the specific car and crashed it to pieces by driving it at a speed of 120kph along a 40kph driving zone and an hour after, lost the specific necklace by playing it in the Rizal Park like a frisbee. Angela was so disappointed with Miya and she wants to enforce her right. Which of the following describes the right of Angela? a. Angela may choose between the delivery of the specific doll or the price of the specific necklace, the last thing that was lost, plus damages. b. Since Miya can still deliver the specific doll, Angela can only choose the specific doll. c. Since Miya already lost the confidence of Angela, Angela may choose the price of any of the prestations, plus damages. d. Angela may choose the delivery of the specific doll or either of the price of the specific car or the price of the specific necklace. If Angela will not choose the specific doll, Miya is liable for damages.

Romina is obliged to give Daniella a specific bracelet (Prestation A), in which they also agreed that Romina may give a specific set of earrings (Prestation B) as a substitute. Which of the following is correct? a. If Prestation A is lost to Romina's fault which happened after the substitution, Romina should pay damages. b. If Prestation A is lost due to a fortuitous event which happened after the substitution, Romina's obligation is extinguished. c. If Prestation B is lost due to a fortuitous event which happened before the substitution, Romina's obligation is extinguished. d. If Prestation A is lost due to a fortuitous event which happened before the substitution, Romina's obligation is extinguished.

Dario, Dexie, Don, and Danny are obliged to give Cris, Carl, Cathy, Cass, and Cory PhP100,000. How much can Cory collect from Don? a. PhP100,000 b. PhP25,000 c. Php20,000 d. Php5,000

Dario, Dexie, Don, and Danny, joint debtors, are obliged to give Cris, Carl, Cathy, Cass, and Cory PhP100,000, solidary creditors. How much can Cory collect from Don? a. PhP100,000 b. PhP25,000 c. Php20,000 d. Php5,000

Dario, Dexie, Don, and Danny, solidary debtors, are obliged to give Cris, Carl, Cathy, Cass, and Cory PhP100,000, joint creditors. How much can Cory collect from Don? a. PhP100,000 b. PhP25,000 c. Php20,000 d. Php5,000

Dario, Dexie, Don, and Danny, solidary debtors, are obliged to give Cris, Carl, Cathy, Cass, and Cory PhP100,000, solidary creditors. How much can Cory collect from Don? a. PhP100,000 b. PhP25,000 c. Php20,000 d. Php5,000

Which of the following is not a characteristic of an alternative obligation? a. Several prestations are due, but it is sufficient to perform only one for the debt to be extinguished. b. The obligation remains even if some prestations are void. c. The right of choice belongs to the debtor only. d. If all prestations are impossible except for one, the remaining is must still be given

Which of the following is not a divisible obligation? a. To give a cavan of rice. b. To give twenty gallons of purified water. c. To perform twenty hours of accounting work. d. To give a specific ring.

Given the following: I. Interest II. Damages III. Penalty Which of the foregoing, as a rule, is/are recoverable from a debtor who breached an obligation with a penal clause? a. I and III only b. II and III only c. I, II, and III d. III only

When there has been payment of what is not due, the responsibility of two or more payees - a. is joint b. is solidary c. depends on the original relationship of the payees d. depends on the agreement of the payees after the payment has been made

B Article 2157 of The Civil Code of the Philippines provides that: The responsibility of two or more payees, when there has been payment of what is not due, is solidary.

Lets assume that A is the obligation and B is the penal clause. Which of the following is/are true? I. The nullity of A will consequently result to nullity of B. II. The nullity of A will not result to nullity of B. III. The nullity of B will consequently result to nullity of A. IV. The nullity of B will not result to nullity of A. a. I and III b. II and IV c. I and IV d. II and III

Which of the following terms does not describe a joint obligation? a. Proportionately b. Pro-rata c. Juntos o separadamente d. Mancomunada

Nestor and Jenny entered into a loan contract. As a result, Nestor is obliged to pay Jenny Php500,000 on January 1, 2025. What is the efficient cause? a. January 1, 2025 b. Php500,000 c. Obligation to pay d. Loan contract

Which of the following terms does not belong to the group? a. Active subject b. Creditor c. Obligor d. Obligee

When, without the knowledge of the person obliged to give support, it is given by a stranger, the latter shall have a right to claim the same from the former, unless it appears that he gave it out of piety and without intention of being repaid. This is an example obligation arising from: a. Law b. Contract c. Quasi-contract d. Quasi-delict

Whoever voluntarily takes charge of the agency or management of the business or property of another, without any power from the latter, is obliged to continue the same until the termination of the affair and its incidents, or to require the person concerned to substitute him, if the owner is in a position to do so. In which instance/s does negotiorum gestio apply/ies? I. When the property or business is not neglected or abandoned; II. If in fact the manager has been tacitly authorized by the owner. a. I only b. II only c. Both I and II d. Neither I nor II

Which of the following is incorrect? a. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care. b. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. c. If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for any fortuitous event until he has effected the delivery. d. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, provided that they are stipulated.

When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, which of the following rules shall not be observed in case of the improvement, loss or deterioration of the thing during the pendency of the condition? a. If the thing is lost without the fault of the debtor, the obligation shall be extinguished. b. If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered. c. 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. d. If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the debtor.

Which of the following is not true? a. In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. b. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof, are liable for damages. c. Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is valid. d. Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances.

Evaluate the following statements: I. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. II. The receipt of a later installment of a debt without reservation as to prior installments, shall raise the presumption that such installments have been paid. Which of the foregoing statements is/are false? a. I only b. II only c. Both I and II d. Neither I nor II

Covida is obliged to give a specific car to Quarantina if she passes the CPA Licensure Exams on or before December 31, 2022 is - a. An obligation with a period b. An obligation with a suspensive condition c. An obligation with a resolutory condition d. A pure obligation

B Although there is a given date, it just gives a deadline on the happening of the suspensive condition. After the time expires, the obligation is extiguished.

This is the currency which the obligor may compel the obligee to accept in payment of his obligation. a. Money b. Cash c. Legal tender d. Debt instrument

This is a sustained increase in the general price level of goods and services in an economy over a period of time. a. Inflation b. Hyperinflation c. Extraordinary inflation d. Price hike

When is the effect of extraordinary inflation or deflation be applied? a. When the inflation rate for the last three years exceeds 100% b. When the general price index of primary commodities exceeds 100% c. When the global inflation rate exceeds 100% d. When there is an official declaration by competent authorities

Which of the following is not a legal tender in the Philippines? a. One thousand pesos denominated in twenty-peso bills b. Five hundred pesos denominated in one-peso coins c. Two hundred pesos denominated in 25-centavo coins d. One hundred pesos denominated in 1-centavo coins

Which of the following is not correct? a. A debt shall not be understood to have been paid unless the thing or service in which the obligation consists has been completely delivered or rendered, as the case may be. b. If the obligation has been substantially performed in good faith, the obligor may recover as though there had been a strict and complete fulfillment, less damages suffered by the obligee. c. When the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with. d. The creditor is bound to accept payment or performance by a third person who has no interest in the fulfillment of the obligation.

Which of the following is not a type of damages? a. Compensatory b. Temporary c. Moderate d. Corrective

When the government, upon the failure of any person to comply with health or safety regulations concerning property, undertakes to do the necessary work, even over his objection, he shall be liable to pay the expenses. This liability or obligation arises from what source? a. Contract b. Quasi-contract c. Acts punishable by law d. Quasi-delict

Which of the following is incorrect? a. Payment made to the creditor by the debtor after the latter has been judicially ordered to retain the debt shall not be valid. b. The debtor of a thing cannot compel the creditor to receive a different one, although the latter may be of the same value as, or more valuable than that which is due. c. Unless it is otherwise stipulated, the extrajudicial expenses required by the payment shall be for the account of the creditor. d. Unless there is an express stipulation to that effect, the debtor cannot be compelled to make partial payments

These are imposed, by way of example or correction for the public good. a. Moral b. Temperate c. Liquidated d. Exemplary

These are damages agreed upon by the parties to a contract, to be paid in case of breach. a. Nominal b. Moral c. Liquidated d. Moderate

Five-peso coins are legal tender up to what amount? a. Php1,000 b. Php500 c. Php100 d. Any amount

An educational institution (i.e. a school) is obliged to provide a secure environment and an atmosphere conducive to learning. This obligation arise from a. Contract b. Quasi-contract c. Quasi-delict d. Law

This is the offer made by the obligor to extinguish his obligation to the obligee. a. Dacion en pago b. Application of payment c. Tender of payment d. Legal tender

Extinguishment of obligation happened through passage of time. a. Novation b. Payment c. Remission d. Prescription

Statement I: A person criminally liable is also civilly liable. Statement II: Obligations arising from contracts have the force of law between the contracting parties. a. True; True b. True; False c. False; True d. False; False

Statement I: A natural obligation can be enforced in a court of law Statement II: A waiver for future fraud is valid. a. True; True b. True; False c. False; True d. False; False

Statement I: Indemnification for damages shall comprehend not only the value of the loss suffered, but also that of the profits which the obligee failed to obtain. Statement II: The party suffering loss or injury must exercise the diligence of a good father of a family to minimize the damages resulting from the act or omission in question. a. True; True b. True; False c. False; True d. False; False

A thing is not considered lost when it: A. Perishes B. goes out of commerce C. stolen or robbed D. deteriorates

On June 1, 2021 Andrewborrowed P2m from Peter payable after 30 days. James proposed to pay Andrew’s debt and Peter agreed to release Andrew from his obligation. Andrew was not aware of the agreement between James and Peter. When Peter tries to collect from James upon maturity of the obligation, James turned out to be insolvent and it is of public knowledge. In this case: A. Peter can still run after Andrew B. Peter can no longer run after Andrew C. Peter can sue for damages against James and Andrew D. Peter should file a specific performance case against Andrew

Bob obliged himself to give to Job his car onFeb 15, 2022. There was no delivery until Feb 20, 2022 when the garage of Bob’s house collapsed due to a strong typhoon and the car was totally destroyed. Is Bob still liable? A. No, even if Bob was already in default, he could plead impossibility of performance. B. Yes, the obligation to deliver the car is changed to pay the equivalent value because Bobby is in legal delay. C. No, because there was no demand by Job to deliver the car and the specific object was lost due to fortuitous event. The obligation is extinguished. D. Yes, because the contract is perfected

Angela and Gabriel are jointly liable to deliver on Feb. 15, 2022,theirshih tzu dog “Kisses” valued at P10,000 to Pauline. Which of the following is correct? A. The prestation is indivisible making the debtors solidarily liable B. If on Feb 15, 2022, Angela is willing to deliver the dog but Gabriel is not, Pauline may enforce the obligation against Angela C. Angela is liable for a proportionate part of the obligation and will be liable also for damages if Gabriel is not ready to comply with his obligation, even if Angela is willing to deliver the dog D. The liability of Angela and Gabriel is joint and that damages may be assessed only against the debtor who violated the obligation

On Dec. 6, 2021 Buknoy obtained a loan from May Malasakit Bank due on March 1, 2022. The loan was evidenced by written contract and as a security, Buknoy executed a mortgage on her house. The house however, was subsequently destroyed by typhoon “Odette” on January 1, 2022. In this case. A. The obligation of Buknoyis extinguished B. The bank may demand payment Buknoy even before March 1, 2022 C. The mortgage is extinguished without fault of Buknoy and therefore must be excused from paying the obligation D. The bank must wait for March 1, 2022 before it could demand payment.

Ben promised to give to Connie the luxury liner M/V Morning Star with a particular Boeing 747 commercial airplane as a replacement. Ben intentionally destroyed the plane by attaching bombs into it. In this case: A. Connie may demand delivery of M/V Morning Star plus damages B. Connie may demand the value of the airplane plus damages C. Ben is liable for damages for the loss of the airplane D. Ben is liable to give M/V Morning Star

Which of the following statements is true? A. A future event may be a period or a condition. B. The debtor losses the right to the period if he does not give any security to the creditor. C. The condition to do an impossible thing does not render the obligation void. D. In alternative obligations, the right to select which of the prestation shall be delivered belongs to the creditor, unless expressly given to the debtor

Which of the following is false? A. The receipt of a later installment of a debt without reservation as to prior installments, shall give rise to a presumption that such installments have been paid. B. The receipt of the interest shall give rise to a disputable presumption that the principal loan has been paid. C. The receipt of the principal loan shall give rise to a disputable presumption that the interest earned has been paid as well. D. When the thing improves pending the fulfillment of the suspensive condition with the expense of the debtor, and the condition is fulfilled; said improvement shall inure to the benefit of the creditor

A promissory note signed by Manny is worded as follows: “I promise to pay Diego the sum of One Million Pesos provided that if he should fail in the first online Bar Examinations in Feb. 2022, he shall return to me the said amount.” The above note gives rise to an obligation with: A. Suspensive condition C. Resolutory condition B. Casual condition D. Mixed condition

Tom owes Jerry, P1m payable on March 1, 2022. Which of the following is correct? A. If Jerry dies before March 1, 2022, his heirs can collect from Tom B. If Tom dies, the obligation is extinguished C. If Jerry dies, the obligation is extinguished D. If Tom and Jerry die, the heirs of Jerry can collect from the heirs of Tom

When something is received when there is no right to demand it, and it was unduly delivered thru mistake, the recipient has the duty to return it. A. Quasi-contract B. Quasi-delict C. Negotiorum gestio D. Solutio indebiti

Sources of obligations as provided by law, except A. Torts B. Contracts C. Culpa aquiliana D. Solutioindebiti

Which of the following obligations is valid? A. Asyong obliged himself to give to Bosyo his brand new Omega watch if the latter can make a circle that is at the same time a square B. Asyong obliged himself to give to Bosyo his BMW if Bosyo will kill Juan C. Asyong obliged himself not to demand the return of his laptop borrowed by Bosyo unless Bosyo will fly to the sun and be back on earth alive D. Asyong made the promise on Feb 8, 2022 thathe will paint the portrait of Bosyo on December 1, 2021

Which of the following is false? A. In Facultative obligations, if substitution has been made, the loss of the original prestation is immaterial B. In delagacion, the insolvency of the new debtor can sometime revive the original debtor’s obligation. C. In expromission, the insolvency of the new debtor shall not revive the original debtor’s obligation D. The condition that some event happen at a determinate time shall give rise to the obligation as soon as the time expires or if it has become indubitable that the event will not take place

Ana promised to give her son a car if the son will marry Sofia this year, 2022. In this case: A. If before 2022 ends, Sofia is already dead, Ana will give her son a car B. If before 2022 ends Ana’s son married Sofia, obligation to give a car is effective and demandable. C. If today is January 1, 2023 and Ana’s son married Sofia, he will be entitled to the car D. If today is January 1, 2023 and Ana’s son did not marry Sofia, Ana can sue for breach of contract

Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of P900,000. Jane’s obligation is: A. Pay James P100,000 B. Pay John P150,000 C. Pay John, James and Jonathan P900,000 D. Pay Jonathan P300,000

Jane and Jenny are debtors of solidary creditors John, James and Jonathan, in the amount of P900,000. John can collect from Jenny: A. P150,000 C. P450,000 B. P900,000 D. P300,000

Bogs sold his house and lot to Tess reserving his right to repurchase the same within 5 years from the date of the execution of their agreement. The sale together with the right to repurchase was registered with the Register of Deeds. Two years after the execution of the sale, Tess sold the same lot to Conrad who was not aware that Bogs reserved his right to repurchase the lot. In this case: A. The sale by Bogs to Tess is subject to a suspensive condition. B. The sale by Tess to Conrad is subject to a suspensive condition. C. The sale by Tess to Conrad is void D. The sale by Bogs to Tess is absolute

The following are examples of obligations with a period, except: A. “As soon as I have money” B. “30 days after the death of Digong” C. “10 minutes after sunset on Dec 1, 2022” D. “If Digong reaches the age of 78 which is 2 years from today”

The creditor shall have a right to indemnity for damages when, through the fault of the debtor, all the things which are alternatively the object of the obligation have been lost or compliance of the obligation has become impossible. The indemnity shall be fixed taking as a basis the value of the A. Choice of the creditor. B. Most expensive thing. C. Last thing which disappeared D. First thing which disappeared.

Lenny obliged herself to deliver to Jenny the following: 1) her brand new BMW m5 car 2022 model 2) A black Persian cat Which of the following is true? A. In case Lenny failed to deliver any of the two objects, the obligations may be complied with at her expense B. In case Lenny failed to deliver the Persian cat, the court may order the performance of the obligation at her expense C. Lenny is obligated to exercise diligence over the two objects D. Lenny is obligated to deliver all accessories of the two objects

Ping owes Pong P100,000. Later Ping paid Pong P75,000 leaving a balance of P25,000. Leila, intending to surprise Ping, paid Pong the sum of P100,000 thinking that Ping still owed Pong that amount. Leila did this without knowledge of Ping. Which of the following is correct? A. Leila can recover P100,000 from Ping B. Leila can recover P100,00 from Pong C. Leila cannot recover anything from Ping D. Leila can recover P25,000 from Ping

A solidary creditor who paid the entire obligation will be not entitled to be reimbursed in which of the following cases? A. If such payment was made after the obligation has become due and demandable and notice of payment was made only to him B. If such payment was made in compliance with the demand made to him by all the creditors C. If such payment was made before the obligation is due D. If such payment was made after the obligation has prescribed or become illegal

A, B and C are jointly indebted to D and E in the amount of P3m. Before due date, C becomes insolvent while B died. On due date, E can collect from A: A. Php 1m B. Php 1.5m C. Php 500k D. Php 3m

1 st Statement – Unless the application of payment is expressly stated, the payment shall be applied to the obligation most burdensome or onerous to the debtor. 2 nd Statement –Cession en Pago is governed by the law on sales A. 1st statement is wrong, 2nd statement is correct C. Both statements are correct B. 1st statement is correct, 2nd statement is wrong. D. Both statements are wrong

X, Y and Z are solidary debtors of Q and R in the amount of P60,000.00. Q condoned the share of Z which the latter accepted. How much can R collect from Y if X is insolvent? A. Zero because condonation will inure to the benefit of all debtors B. P30,000.00 C. P20,000.00 D. P10,000.00

May the suit filed by a passenger who was hurt against the operator of a public utility vehicle still prosper even if the driver was acquitted by the court? A. Yes, provided he can prove the negligence of the driver. B. No, this will constitute double jeopardy which is violative of the Constitution C. No, the acquittal means that the guilt of the accused was not proven by proof beyond reasonable doubt D. Yes, it is sufficient for him to prove the existence of the contract of carriage and the injuries suffered

Which of the following is false? A. The expenses of consignation when properly made, shall be charged against the obligee. B. In a joint obligation, the insolvency of one shall not make the other debtors liable to pay his share C. The latin phrase “Faciout des” refers to a bilateral obligation to give D. If the debtor promised to give his house and lot to the creditor located in Quezon City if the debtor decides to live in Mandaluyong, the obligation is void.

The cause of loss is material to determine if the obligation of the debtor will be extinguished in which of the following cases? A. The debtor promised to give a generic thing B. One of the prestations in an alternative obligation was lost C. The obligation of the debtor is to pay money and the specific thing mortgaged to secure the loan was lost D. The obligation is facultative and the principal object was lost before substitution

In which of the following situations will compensation take place? A. Bong owes Kiko P1m payable on March1, 2022. Kiko owes Bong1,000 sacks of rice worth P1m on March 1, 2022. B. Ping owes Willie P1m payable onMarch26, 2022. Willie owes Ping P1m due on Jan. 27, 2022 and today is Feb 28, 2022. C. Tito owes Isko P1m. Sara is the Guarantor of Tito. Isko owes Sara P1m. D. Lenny owes Manny 10 sacks of rice. Manny owes Lenny 10 sacks of rice

Which of the following is true? A. Novation may be presumed B. Substitution in facultative obligations will result to novation C. Novation may be implied D. Cession en pago is an example of novation

Tom promised to give his car to Jerry with the condition that_________; hence the obligation is valid. A. Jerry commits suicide B. Jerry kills Spike C. Jerry will bring a live unicorn to Tom D. Tom’s deceased father will not rise from the dead

Letlet and Potpot entered into a contract wherein Potpot will receive from Letlet a year 2022 model car worth P1m and Potpot will give to Letlet a farm lot worth P1m. Which of the following is not a correct group of characteristics of their contract? A. Onerous, bilateral and principal B. Bilateral, innominate and commutative C. Onerous, commutative and consensual D. Nominate, principal, bilateral

There shall be no reformation of contract in the following cases except: A. When the real agreement is void. B. Simple donation intervivos with no condition being imposed. C. A contract of mortgage fraudulently made as a contract of sale. D. A contract of lease where consent is vitiated by fraud

If mistake, fraud, accident or inequitable conduct has prevented a meeting of the minds of the parties to a contract, the proper remedy to avoid liability is: A. Ratify the contract B. Ask for rescission C. Annulment of the contract D. Reformation of the contract

Which of the following does not constitute a definite offer? A. An offer made thru an agent B. An offer thru letters and telegrams C. An offer thru business advertisements or newspapers of things for sale

Pedrodelivered his laptop to Jaun for the latter’s use for one whole school year without any compensation. In this case: A. The cause of the contract is the generosity of Pedro B. The object of the contract is the laptop of Pedro C. The cause of the contract is the laptop of Pedro D. The prestation is the friendship between the parties

A contract giving a person the right, to enjoy the use and fruits of a thing belonging to another: A. antichresis B. sale C. usufruct D. commodatum

Which of the following is true? A. There is relative simulation of contracts when parties executed a document intentionally deceiving others by producing the appearance of a contract that really does not exist. B. A contract of sale fraudulently made as a contract of mortgage may be cured by reformation C. There is absolute simulation of contracts when the parties executed a document intentionally deceiving others by producing the appearance of a contract which is different from the true agreement. D. Ratification will cure the defect of simulated contracts may it be absolute or relative simulation

Kiko offered to sell his mobile phone to Bong for P50,000. Bong offered to buy the mobile phone for P38,000 but was rejected by Kiko. When Bong was about to leave, Kikocalled him and said he is now willing to sell for P38,000. In this case: A. Bong is obligated to pay P38,000 B. Bong has no obligation to buy the mobile phone C. The contract of sale was perfected. D. The contract of sale must be in writing to be enforceable

A promissory note was executed and signed by Tito which states"I promise to pay to Isko Php50m.” The consideration received by Tito is not stated in the contract. In this case: A. The contract is valid because the cause is always presumed to exist. B. The contract is valid so long as it is in writing. C. The contract is valid because cause is not essential to a contract. D. The contract is void because the cause is not stated

Bong sold to Sara his land. Sara paid the purchase price and the land was constructively delivered to her. Later, Bong changed his mind and sued for recover of the land alleging that the sale is void because it was entered into orally. In this case? A. The contract is unenforceable. Bong can recover the land B. The contract is valid because the contract was not contrary to law or illegal C. The contract is not valid because it is not in writing as required by the Statute of Frauds D. The contract is valid because there was implied ratification when the contract was executed

The following are not vices of consent except: A. Duress C. Reverential Fear B. Reluctance D. Simple mistake

Motive is different from cause of a contract because: A. Motive is not an essential element of a contract B. Motive is always known to the contracting parties C. If the motive is illegal, the validity of the contract is affected D. There will be no contract without it

When one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and gave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants to give his consent, there is: A. Violence B. Intimidation C. Mistake D. Undue influence

Which of the following is true? A. The number of parties to a contract cannot be more than two persons. B. Acceptance by letter or telegram binds the offeror from the time the letter of acceptance is mailed or sent by the offeree. C. A contract of partnership is a principal and preparatory contract D. Mutuum and commodatum are accessory contracts

The following contracts are not perfected until the delivery of the object of the obligations, except A. Barter C. Commodatum B. Deposit D. Pledge

A contract to make a deposit, to make a pledge or to make a commodatum are: A. Not perfected without delivery B. Must be in writing to be valid C. Perfected by mere consent D. Governed by the Statute of Frauds

Which of the following characteristics of fraud will may make a contract voidable: A. Incidental and both parties should not be in pari delicto B. Serious and both parties must be in pari delicto C. Incidental and should have been employed by both parties. D. Serious and should have not have been employed by both contracting parties

Which of the following is not essential in perfecting consensual contracts? A. Consent of the contract parties. B. Object certain which are the subject matter of the contract. C. Cause of the obligation which must be established. D. Physical presence of the parties

A contract where the parties give equal or almost equal values is known as: A. Cumulative contract. C. Aleatory contract. B. Compensatory contract. D. Commutative contract

Which of the following is valid and enforceable? A. Oral sale of a grand piano for a price of P500k B. Oral sale of a commercial lot for a price of P40m C. Oral contract of loan for P10m D. Oral agreement made in consideration of marriage

Linda and Tess agreed on a certain contract of sale, but Tess fraudulently made a document reciting a contract of donation. Later both Linda and Tess died. Which is correct? A. The heirs of Linda may bring an action to reform the instrument but not the heirs of Tess B. The heirs of Tess may bring an action to reform the instrument but not the heirs of Linda C. Either the heirs of Linda or Tess may bring an action to reform the instrument D. Nobody’s heirs can ask for reformation because the contract was deemed void upon death of Linda and Tess

Which of the following is an element of a real contract? A. Execution of a public instrument. B. Execution of a private instrument. C. Delivery of the object of the contract. D. Formalities required by law

Which of the following contracts is not void or inexistent? A. Oral authority given to an agent in sale of land. B. Oral partnership agreement where immovable property is contributed. C. Oral partnership agreement when capital is P10m cash D. Contract in writing contemplating and asking for impossible service

Which of the following is true? A. An offer must be absolute and acceptance must be certain before there can be meeting of minds between the parties. B. Real contracts are perfected by mere consent of the parties regarding the subject matter and the cause of the contract C. An oral donation of a parcel of land may be ratified thru actual or constructive delivery of the land by the donor to the done D. Contracts entered into between a minor and an insane person is not void

Which of the following is not a requisite of stipulation pour autrui A. The contracting parties must have clearly and deliberately conferred a favor upon third person B. The stipulation must be part of the contract C. The third person communicated his acceptance to the obligor before it revocation D. There must be an agency between either of the parties and the third person

Which of the following is false? A. Autonomy of contracts is the principle that contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, moral, public policy and public order. B. Failure to disclose factsconstitutes fraud C. Contracts are effective only between the parties, heirs and assigns. D. Lesion or the inadequacy of cause, like an insufficient price for a thing sold does not automatically render the contract rescissible

Which of the following is true? A. In an aleatory contract, one of the parties or both reciprocally bind themselves to give or to do something in consideration of what the other shall give or do upon the happening of an event which is uncertain, or which is to occur at an indeterminate time. B. There is no cause or consideration in gratuitous contracts. C. A written document is a requisite for the perfection of a contract D. Conception of a contract is when the contract is executed

An action of annulment to extinguished a voidable contract on the ground of fraud must be brought: A. Within four years from perfection of the contract B. Within six years from the time of the commission of the vice of consent C. Within four years from the discovery of the fraud D. Within 10 years if in writing and six years if orally constituted

Contract wherein ratification is the cure: A. Those which are entered into by guardian whenever the ward whom they represent suffer lesion of more than ¼ of the value of the thing belonging to the ward B. Contract of Donation between persons guilty of adultery or concubinage C. Sale of Luneta Park in a private document D. Oral Lease of a house and lot for a period of 2 years.

Which of the following can be extinguished by annulment of contract? A. Ambo and Bosyo who are both unemancipated minors entered into a contract of sale in writing. B. Ambo to defraud his creditor Bosyo, pretented to sell his house and lot to Kiko. C. Ambo and Kiko entered into a written contract of sale involving 3 planets in the solar system D. Ambo intimidated Bosyo to marry Ambo’s daughter, Diday

Which of the following is a rescissible contract? A. Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claim due them. B. Those which are entered into by guardian whenever the ward whom they represent suffer lesion of ¼ of the value of the thing belonging to the ward C. Sale of a property in representation of an absentee worth P1m sold for P750k only D. Sale of land worth P1m sold for P300k only

Which of following contracts is without defect? A. A contract where a party gave his consent while in a state of drunkenness B. A contract where a party gave his consent because the other party threatened to sue him for an unpaid debt C. A contract where a party gave his consent because the other party threatened to kill the former’s spouse D. A contract where the wife sells her property to her husband because of intimidation

Before acceptance of an offer, the offeree suffered insanity. What will be the status of the contract? A. Still valid B. Unenforceable C. Void or inexistent D. Voidable because of incapacity to give consent

Elsa intimidated Christoff to marry Elsa’s sister Anna. The marriage contract is: A. Void because marriage is a special contract B. Valid because Elsa is not a party to the contract although she was the onewho is guilty of intimidation C. Valid because Christoff and Anna are both of legal ages D. Voidable because of vitiated consent

X corporation issued and sold shares of stock to Mr. Payaman. Such shares sold may be delivered by: A. actual delivery C. tradition brevi manu B. traditio longa manu D. quasi-traditio

A contract of sale with a right to repurchase and other contracts including a contract purporting to be an absolute sale shall be presumed to be an equitable mortgage in the following cases, except: A. When the vendee binds himself to pay the taxes due. B. When the vendor remains in possession of the thing sold. C. When the price of sale with right to repurchase to repurchase is unusually inadequate. D. When the period to repurchase the property is extended beyond the period allowed by law

Which of the following illustrates a sale known as emptio rei sperati? A. sale of lottery tickets C. sale of newly born puppies B. sale of rice yet to be harvested D. sale of alienable rights

A kind of mortgage which, although lacking some formality, form of words, or requisites prescribed by law, shows the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary to law is known as: A. Legal mortgage. C. Conventional mortgage. B. Equitable mortgage. D. Voluntary mortgage

Angela sold to Althea a residential lot to be containing an area of 100 square meters at P100,000 per square meter. In this connection, which of the following statements is correct? A. If the lot should contain 90 sq. meters, Althea can choose between proportionate reduction of the price or rescission of the contract B. If the lot should contain 95 sq. meters only, Athea can ask for a proportionate reduction of the price or rescission. C. If the lot should contain 120 sq. meters, Althea must pay additional price at P100,000 per square meter and cannot refuse to take the excess. D. If the lot should contain 90 sq. meters, Althea can choose proportionate reduction of the price but not rescission of the sale

Angelo obtained from Gabriel a loan amounting to P500,000.00, the same being secured by a mortgage on Angelo’s house and lot. Thereafter, Gabriel assigned his credit right to Andrei after sending notice to Angelo. Which of the following statements is incorrect? A. Andrei can collect from Angelo even if Angelo does not give his consent to the assignment. B. Andrei cannot collect from Angelo because the assignment of credit was without consent of Angelo and Andrei is a third person to the contract. C. Andrei can collect from Angelo and has the right to foreclose the mortgage on the house and lot if Angelo will fail to pay. D. Gabriel seized to have a right over the loan and the mortgage

In which of the following contracts of sale the provisions of Art. 1484 of the Civil Code (Recto Law) apply? A. Sale of a brand newE-jeep vehicle on straight term. B. Sale of residential house and lot on installment. C. Sale of car on installment where the buyer constituted a mortgage on his truck. D. Sale of an apple mac book pro laptop on installments where the buyer constituted a chattel mortgage over it.

Megan sold her house and lot to Nicole. The sale was made orally. Nicole paid the agreed price and wanted to have the sale registered but she needs a public instrument. In this case: A. Megan cannot be compelled to execute a document because the sale is unenforceable. B. Nicole may compel Megan to execute the public instrument because the sale is valid. C. Nicole may only ask for refund of the purchase price D. The proper remedy is reformation and not ratification

Peter, Paul and John are co-owners of a rural lot with an area of 9,000 square meters. The lot is surrounded on its four sides as follows: on the North, by the lot of James consisting of 1 hectare; on the East, by the lot of Andrew consisting of 2,000sqm; on the South, by the lot of Thomas consisting of 5 hectares; and on the West, by the provincial highway. John sells his undivided interest in the agricultural lot to Mark, who owns several hectares of rural land in the area. Who has the right of legal redemption over the undivided interest in the lot sold by John to Mark? A. John B. John, Paul and Peter C. Peter and Paul D. Peter, Paul, James, Andrew and Thomas

Mark owned a rural lot with an area of 1,000 square meters. The lot is surrounded on its four sides as follows: on the North, by the lot of Matthew consisting of 1 hectare; on the East, by the lot of Morris consisting of 2,000 sqm; on the South, by the lot of Melissa consisting of 5 hectares; and on the West, by the provincial highway. Mark sold his agricultural lot to Marissa, who owns several hectares of rural land in the area. In case all adjacent owners will exercise their legal redemption right, who will be preferred? A. Marissa B. Matthew C. Morris D. Melissa

It is the process of enforcing the State’s right to take away property for public use upon payment of just compensation which is governed by special laws: A. Eminent Domain B. Escheat C. Police Power D. Expropriation

Under Article 1484 of the Civil Code (Recto Law), in case of sale of movables on installment basis, which of the following is not correct? A. The seller can cancel the sale should the buyer fails to pay two or more installments due. B. The seller can cancel the sale should the buyer fails to pay two or more installmentsand forfeit the installments paid if stipulated C. The seller can recover deficiency if the proceeds of the public sale after availing the remedy of foreclosure of the chattel mortgage executed over the thing sold will not be sufficient to pay the total contract price. D. The seller can sue for specific performance or to exact fulfillment should the buyer fail to pay any of the installments

Danilo bought from X Duplex Homes Corp., a 1000 square-meter commercial lot located beside SM Molino, Cavite, on which he intended to construct a commercial building for lease to future tenants. The terms of the sale provided for the payment of the contract price of P12m with down payment of P2m and balance of P10m payable in 50 equal monthly installments of P50k. Danilo faulted in the payment of the succeeding installments. As a consequence, the sale was. Danilo now wants to claim the return of the cash surrender value of the payments he had made pursuant to the “Realty Installment Buyer Act” otherwise known as the Maceda Law. In this case he is: A. Entitled to a cash surrender value of 50% if he paid atleast 2 years installment. B. Entitled to a cash surrender value of P50% plus 5% for every year after the 5th year. C. Entitled to a maximum cash surrender value of 90% of under the Maceda Law. D. Precluded from raising the provisions of Maceda Law

A party to the contract of sale with right to repurchase who shall generally bear the taxes due to the government in relation to the possession of the property. A. Agent C. Vendee B. Vendor D. Bailee

A stipulation stating that despite delivery, the ownership of the thing shall remain with the seller until the buyer has fully paid the price: A. pactum commissorium C. fraud in factum B. pactum reservatidominii D. constitutum possessorium

The redhibitory action based on the faults or defects of movable things must be brought within A. 40 days from discovery of the vendee B. 40 days from delivery to the vendee C. 7 days from delivery to the vendee D. 6 months from delivery to the vendee

When in a contract of sale there is a stipulation that the seller has the right to repurchase the thing sold but the parties failed to fix the period, the right can be exercised: A. any time under the principle of autonomy or freedom of the parties to stipulate B. within 10 years from the date of the contract C. after 4 years from the date of delivery D. within 4 years from the date of the contract

Mando Rucot stole the gold bracelet of Marita worth P500k. Mando subsequently sold the same to Maritesswho had knowledge about the circumstances that happened between Mando and Marita. Maritess thereafter, immediately sold the same bracelet to Marisol, the latter was bereft of any knowledge during the sale about the fact that the bracelet was stolen from Marita by Mando.Marisol later pledged the bracelet to secure a loan she acquired from the pawnshop owned by May Malasakit.When Marisol failed to pay the loan, the bracelet was sold in a public auction to Dina Natuto. Marita proceeded against Dina to recover the bracelet. Who has the better right over the bracelet? A. Maritess C. Marisol B. Dina Tuto D. Marita

Which of the following statements is true? A. Generally possession in good faith of a movable property is equivalent to ownership. B. Sale of future inheritance is valid as future things may be the object of the contract. C. The fixing of the price in a contract of sale is at the option of the seller. D. As a general rule in a contract to sell, ownership passes to the buyer upon actual or constructive delivery

Lotlot and Potpot entered into a contract wherein Potpot will receive from Lotlot a Toyota Avanza 2020 model worth P800k and Potpot will give to Lotlot cash amounting to P500k and a farm lot worth P300k. What kind of contract is this? A. Barter because there will be exchange of properties B. Sale because of clear intention of the parties C. Neither sale nor barter D. Sale because the value of money exceeds the value of the car as considerations in exchange of the house and lot

Pauline sold her poodle dog “Peaches” to Gabriel for P10k on Feb 1, 2022. No date was stipulated for the delivery of the poodle. While still in the possession of Pauline, “Peaches” gave birth to three (3) puppies. Two (2) puppies died because of a fortuitous event. Which of the following is correct? A. Pauline is entitled to the puppies because they were born before her obligation to deliver “Peaches” arises but she will bear the loss of the 2 puppies under the principle of res perit domino. B. Pauline is automatically in delay because the object of the contract is a specific thing C. Pauline is entitled to the puppy as Gabriel has not yet paid the price. D. Pauline is obligated to deliver “Peaches” and the remaining puppy upon payment of the purchase price but is excuse for the loss of the 2 puppies

Angela sold her shih tzu dog “Chico” to Gabriel for P10k on Feb 1, 2022. Payment and delivery will be on Feb 24, 2022. On February 14 ,2022 “Chico” was struck by lightning and died. In this case: A. The sale is unenforceable because it was constituted orally. B. The sale will be rendered inexistent because of physical absence of the object C. Gabriel can choose between accionredhibitoria or accionquantiminoris D. Angela is excused from here obligation to deliver but Gabriel is still obligated to pay

Which of the following statements is true? A. In a contract of sale or return ownership shall not pass to the buyer despite delivery of the goods. B. The seller having voidable title to the thing sold can validly transfer title to his buyer, provided his title has not been avoided at the time of the sale. C. A stipulation exempting the seller from the obligation to answer for eviction is void. D. If the consideration of the contract consists partly in money and partly in another thing, it shall be considered a barter if the value of the thing given as a part of the consideration exceeds the amount of the money or its equivalent

Which of the following statements is true? A. A guardian cannot purchase the property of the ward unless consent of ward is given B. The husband can never sell his property to his wife. C. A stipulation that even when the object is delivered to the buyer, ownership will not pass until the price is fully paid is void. D. Dacioenpago is governed by the law on sales

The liability of the surety is: A. Solidary C. Joint B. Secondary D. Subsidiary

A void stipulation fixing the price at which the property will be sold at a foreclosure sale. A. auction price C. upset price B. option money D. contract price

Which of the following is true? A. The creditor cannot appropriate the things given by way of pledge or mortgage, without any express stipulation. B. In case of pledge of animals, their offspring shall pertain to the pledgor or owner of the animals pledged, but shall be subject to the pledge, if there is no stipulation to the contrary. C. If the debtors are not solidarity liable, the pledge or mortgage will not be indivisible. D. The promise to constitute a pledge is a real contract

Which of the following is false? A. Pledge and mortgage are accessory and consensual contracts. B. If the thing pledged is returned by the pledgee to the pledgor or owner, the pledge is extinguished even without any stipulation. C. Not all contracts of pledge are voluntary and conventional. D. If a movable property, instead of being recorded, is delivered to a third person or to the creditor, the contract is pledge and not chattel mortgage

1 st statement – The indivisibility of a pledge or mortgage is not affected by the fact that the debtors are not solidarily liable 2 nd statement – Commodatum and mutuum may be gratuitous or with a stipulation to pay interest. A. Both statements are false C. Only the 1st statement is true B. Both statements are true D. Only the 2nd statement is true

Atoy, a jeepney driver, driving recklessly, caused serious physical injuries to his passenger Bitoy and pedestrian Caloy. As a result, which of the following is not correct? A. Bitoy may proceed against Atoy for culpa criminal B. Bitoy may proceed against Atoy for culpa contractual C. Caloy may proceed against Atoy for culpa aquiliana D. Caloy may proceed against Atoy for culpa criminal

Alternative Obligations ARTS

1199 - 1206

Obligations with a period ARTS

1193-1198

Divisible and Indivisible Obligations ARTS

1223-1225

Obligations with a Penal Clause

1226-1230

Joint and Solidary Obligations

1207-1222

Pure and Conditional Obligations

1179-1192

Payment or Performance

1232-1251

Application of Payment

1252-1254

Payment by Cession

1255

Tender of Payment and Consignation

1256-1261

Loss of Thing Due

1262-1269

Loss of the thing due

1262-1269

Condonation or Remission of Debt

1270-1274

Confusion or Merger of rights

1275-1277

Compensation

1278-1290

Novation

1291-1304

Rescissible Contracts

1380-1388

Voidable Contracts

1390-1402

Unenforceable Contracts

1403-1408

Void Contracts

1409-1422

Natural Obligations

1423-1430

If the condition is potestative and the fulfillment depends exclusively upon the will of the debtor, the conditional obligation shall be

void

If the condition is potestative and the fulfillment depends exclusively upon the will of the creditor, the conditional obligation shall be

valid

Suspensive conditions depend upon the will of the debtor is (Potestative)

void

condition depends upon chance or upon will of a third person

Casual Condition

Suspensive condition depends upon the will of the creditor (Potestative)

Valid

Resolutory condition depends upon the will of the debtor (Potestative) is

Valid

Casual Condition is

valid

Mixed condition is

valid

In case of inability to return the property stolen, the culprit must pay the value of the property stolen

Reparation

It is receiving payment by mistake that is not due or does not have such right to demand such payment. It creates an obligation to return such payment

Solutio indebiti

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

Onerous contract

type of contract that is recognized and enforceable by law

nominate

are agreements where a party doesn't have to perform contractual obligations unless a specified event happens

Aleatory contracts

contracts where one party gives something or renders service to another in consideration of a previous or past deeds of the other.

Remunerative

a contract can generate rights and obligations only in favor of, or regarding the obligation of the contracting parties, as well as of persons who became parties after closing the contract or assimilated to the parties.

principle of relativity

A, 25, B, 35, and C, 17, are solidary debtors of X in the amount of P9,000.00 a. X may collect from A P9,000.00 b. X may collect from A P6,000.00 c. X may collect from A P1,000.00 d. X may collect nothing because the obligation is voidable, C being a minor

Consider the following statements: I. The nullity of the principal obligation carries with it the nullity of the penal clause. II. The nullity of the principal obligation does not carry with it the nullity of the penal clause. III. The nullity of the penal clause carries with it the nullity of the principal obligation. IV. The nullity of the penal clause does not carry with it the nullity of the principal obligation. a. Statements I and III are true. b. Statements I and IV are true. c. Statements II and III are true. d. Statements II and IV are true.

Consignation alone without any tender of payment is sufficient in the following cases, except: a. when the creditor is absent or unknown or does not appear at the place of payment. b. when the creditor presents the title to the obligation for collection. c. when without just cause, the creditor refuses to give a receipt. d. when two or more persons claim the same right to collect

In order that condonation may extinguish an obligation involving a movable property whose value exceeds P5,000.00— a. It is sufficient that the condonation and the acceptance are in writing, even a private one. b. It is required that the condonation and the acceptance be in a public instrument. c. The delivery of the document evidencing the debt is sufficient since the property is movable. d. The condonation and the acceptance may be made orally

D owes C P6,000.00. No date payment was stipulated by the parties. a. C cannot require D to pay because there is no date for payment. b. C can require D to pay at anytime. c. D is not liable to C because the obligation is void there being no date of payment. d. D is not required to pay unless C goes to court and asks the court to fix a period of the payment

Which of the following does not apply to payment by cession. Which is it? a. Ownership of the debtor’s properties is transferred to the creditor. b. The debtor must be insolvent. c. It affects all the properties of the debtor except those exempt from execution. d. There are several creditors.

The delivery to the creditor of mercantile documents such as checks shall produce the effect of payment: a. upon delivery. b. when they have been cashed. c. when through the fault of the debtor they have been impaired. d. when they are deposited in the bank

Oli Sykes sold 100 bottles of imported “Fundador” brandy to Chris Martin who paid immediately the price thereof amounting to P20,000.00. Oli promised to deliver the brandy to Chris within one week from their agreement. On the agreed date of delivery, Oli delivered to Chris 100 bottles of fake “Fundador” brandy. The contract between Oli and Chris is: a. voidable. b. void. c. valid d. rescissible

Three of the following are the characteristics of a condition. Which is the exception? a. It may or may not happen. b. It may refer to the future. c. It merely fixes the time for the efficaciousness of an obligation. d. It may refer to a past event unknown to the paries.

These statements are presented to you: I. Innominate contracts, not having name under the law, are void because no law or rule governs them. II. Facio ut des and Do ut facias are innominate contracts. In your evaluation of the foregoing statements: a. Both are true. b. Both are false. c. Only statement I is true. d. Only statement II is true

These statements are presented to you: I. Human hair may validly be the object of a contract of sale. II. The donation by a mother of a part of her liver to be transplanted to his son is valid. In your evaluation of the foregoing statements: a. Both statements are true. b. Both statements are false. c. Only statement I is true. d. Only statement II is true

These statements are presented to you: I. A sale by auction is enforceable between the seller and the buyer although the memorandum made by the auctioneer on the sale was not signed by the seller and the buyer. II. Contracts that are enforceable under the Statute of Frauds are deemed ratified by the failure to object to the presentation of oral evidence to prove them. In your evaluation of the foregoing statements: a. Both statements are true. b. Both statements are false. c. Only statement I is true. d. Only statement II is true

At the height of the flood, D saw C and his family bringing their personal effects to a higher ground. He offered his help which was accepted. Thereafter, C gave P500,000 to D who was not expecting the payment. The contract between D and C is: a. Onerous b. Remuneratory c. Gratuitious d. There was no contract at all

At the height of the flood, D saw C and his family bringing their personal effects to a higher ground. He offered his help which was accepted. Thereafter, C gave P500,000 to D who was not expecting the payment. The cause is: a. The payment of P500,000. b. The benefit received by C. c. The personal effects of C and his family. d. There is no cause because there is no contract between D and C

A provision in a promissory note authorizing the creditor to increase, decrease, or otherwise change from time to time the rate of interest and/or bank charges without advance notice to the borrower is violative of which principle of contract? a. Relativity b. Mutuality c. Obligatory force d. Consensuality

It refers to a contract wherein one party imposes a ready-made form of contract, which the other party may accept or reject, but which the latter cannot modify. a. Aleatory contract b. Contract of adhesion c. Auto-contract d. Innominate contract

A contract of pledge is perfected upon: a. Meeting of the minds of the parties b. Delivery of the object of contract c. Execution of the written agreement by the parties d. Acknowledgement by the parties of the instrument evidencing the contract before a notary public

S shipped his goods in the vessel of B. The goods were destined for Cebu. When the vessel reached Cebu, V hired T who owned a special equipment for the unloading of the cargoes that included the goods of S. The goods of S, however, fell into the sea while being unloaded because of the negligence of the operator of the equipment. a. S can go after T. b. S can only go after V. c. S can go after both T and V. d. S cannot go after wither T or V.

P met an accident and died while on board a taxi owned by Roadmasters Taxicad Company. Roadmasters has a common carrier insurance policy with ABC Insurance Company for the payment of indemnity to any fare-paying passenger in case of accident. Which of the following statements is incorrect? a. The heirs of P can claim the indemnity from ABC Insurance for the death of P. b. The heirs cannot claim any indemnity because P was not a party to the contract of insurance between Roadmasters and ABC Insurance. c. The provision in the insurance policy for the payment of indemnity is an example of stipulation pour autrui. d. The right of P to claim for indemnity was transmitted to his heirs upon his death

An aleatory contract is one: a. The fulfillment of which depends upon a chance. b. The parties of which are obliged to perform reciprocal prestations. c. Where only one party actually and physically enters into the contract. d. Where delivery of the object is required to be made for its perfection

Which of the following contracts is not a void contract? a. A contract of sale of an animal suffering from a contagious disease. b. A purchase of an illegitimate child by one who is the father of the child. c. A contract of insurance whereby the insured asked another to take his place during the medical examination d. A contract between F, a Filipino and A, an alien, for the purchase of the right kidney of F for P200,000.00.

The following contracts are presented to you. I. A contract of sale involving 100 sacks of rice entered into by G, a guardian, in behalf of M, his ward. The rice was worth P100,000.00 but was sold by G for P85,000.00. II. A contract of sale made by D of his only lot to X in order to defraud C, his creditor. X was not aware of the fraudulent intention of D when he sold the lot to him. III. A contract of sale made by D to X of jewelry which C is trying to recover in a court case he filed against D. X was not aware that the jewelry was the subject of litigation between C and D. In your evaluation of the foregoing contracts: a. Contracts I and II are rescissible. b. Contracts I and III are rescissible. c. Contracts II and III are rescissible. d. None of the above contracts is rescissible

B entered into a contract for the purchase of 5 rolls of cloth worth P20,000 from S. The materials which were to be used by B in the making of school uniforms were scheduled for delivery within 7 days. On the seventh day, S failed to deliver the cloth despite demands from B. As a result, B could not meet his commitment to his customers and was threatened with a court suit. S claimed that M from whom he ordered the cloth under a contract that he (S) and M entered into, did not finish manufacturing the product as scheduled in accordance with such terms of the contract. In this case, B may not sue M for damages under the contract between S and M under which principle of contract? a. Principle of Liberality of Contract b. Principle of Relativity of Contract c. Principle of Consensuality of Contract d. Principle of Obligatory Force of Contract

contracts are the law and, as a result, courts must enforce them between the contracting parties. Also, courts cannot make a contract or a stipulation if there is none. Not all people can be harmed or benefited by a contract.

principle of obligatory force of contracts

The following statements are presented to you: I. The illegality of the motive of the party to a contract renders the contract void. II. The motive of one party to a contract is always known by the other party. In your evaluation of the foregoing statements: a. Both are true. b. Both are false. c. Only I is true. d. Only II is true.

The following contracts are presented to you: I. Pledge II. Commodatum III. Sale IV. Donation of an immovable. The real contracts among the four contracts enumerated are: a. I and II. b. II and III. c. I and III. d. II and IV

It exists when a person takes improper advantage of his power over the will of another depriving the latter of a reasonable freedom of choice. a. Intimidation b. Duress c. Threat d. Undue influence

Abulencia, who knew that his ring was embellished with glass, told Banzon that the embellishment was emerald. Banzon, who knew that his watch was gold-plated, told Abulencia that it was made of pure gold. Banzon, believing that Abuencia’s ring was embellished with emerald, and Abulencia, believing that Banzon’s watch was made of pure gold, then entered into a contract whereby they exchanged their respective articles. A week later, Banzon discovered that the ring was adorned only with an ordinary glass. a. The contract may be annulled at the instance of Banzon since he discovered the fraud. b. The contract may be annulled at the instance of Abulencia since Banzon also employed fraud. c. The contract is void because of the bad faith of both parties; hence, it shall not produce any effect. d. Neither party may ask for annulment since both are guilty of fraud. The contract, therefore, is valid

One of the following statements does not pertain to a relatively simulated contract: a. The parties conceal their real agreement. b. The parties are bound by their real agreement provided it does not prejudice third persons. c. The parties are bound by their real agreement provided it is not contrary to law, morals, third persons, public order or public policy. d. The parties do not intend to be bound at all

Servando and Bernardo entered into a contract where they made it appear that Servando was mortgaging his lot and building to Bernardo to secure a contract of loan. The truth, however, was that Servando was selling his lot and building to Bernardo. Which of the following statements is true? a. The parties are bound by the contract of sale. b. The parties are bound by the contract of loan and mortgage. c. The parties are not bound at all. d. The parties are bound by the contract of sale only when third persons are affected

S and B orally entered into a contract whereby S sold his one-year production of eggs in his poultry farm to B for P50,000.00 which amount B immediately gave in cash to S. The contract between S and B is: a. Void because the object was not existing at the time of the execution of the contract. b. Valid because future things may be the object of contracts. c. Rescissible because B will likely suffer damage if the eggs do not come into existence. d. Unenforceable because the contract was not in writing

A died leaving properties estimated at P1,000,000.00 to his sons, S and T. Subsequently, S sold one-half of his inheritance to X for P300,000.00, although his share was still to be delivered. a. The contract is valid since the inheritance is an existing inheritance. b. The contract is void because what S sold is future inheritance which may not be the object of contract as a rule. c. The contract is rescissible. d. The contract is unenforceable

A contract whose cause is the promise of a thing or service by the other party is: a. An onerous contract b. A gratuitous contract c. A lucrative contract d. A remuneratory contract

A contract whose cause is the liberality of the benefactor is: a. A gratuitous contract or contract of pure beneficence. b. A remuneratory contract. c. An aleatory contract. d. An onerous contract

If the illegal contract between the parties is a criminal offense but only one party is guilty, such illegal contract shall produce the following effects, except: a. The guilty party will be criminally prosecuted. b. Neither party may compel the other to comply with his undertaking. c. The instrument shall be confiscated in favor of the government. d. The innocent party cannot recover what he has given

If the contract is illegal but it does not constitute a criminal offense and only one party is guilty, such illegal contract shall produce the following effects, except: a. The guilty party cannot recover what he has given. b. The guilty party cannot ask for the fulfilment of what has been promised him. c. The innocent party cannot be compelled to comply with his promise. d. The innocent party cannot demand the return of what he has given.

Reformation of instruments has the following requisites, except: a. There must be a meeting of minds of the parties to the contract. b. The true intention of the parties dis not expressed in the instrument. c. The failure of the instrument to express the true intention of the parties is due to mistake, fraud, inequitable conduct or accident. d. The contract must be in a public instrument

Reformation of an instrument is available in the following cases, except: a. When a mutual mistake of the parties causes the failure of the instrument to disclose their agreement. b. When one party was mistaken and the other party acted fraudulently or inequitably in such a way that the instrument does not show their true intention. c. When a party was mistaken and the other knew or believed that the instrument did not state their real agreement. d. When one of the parties has brought an action to enforce the contract

Reformation is not available in the following cases, except: a. Simple donation inter vivos wherein no condition is imposed. b. Wills. c. When the real agreement is void. d. When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk, or typist, the instrument does not express the intention of the parties

As a rule, a contract of sale is perfected: a. Upon compliance with the requirements of the law as to form. b. Upon delivery of the object of the contract. c. Upon the meeting of the minds on the thing which is the object of the contract and upon the price. d. Upon demand

it refers to the legal tie that binds one person to another, creating an obligation or legal bond

vinculum juris

compliance with good faith latin

jus getium

is it possible that even there is a contract, quasi delict can still be committed by one against the other regarding the area covered by the contract

Yes

in an obligation with a period e.g when his means permit him to do so,is it demandable at once?

This is called facultative condition

Potestative

in diem

resolutory period

jointly and severally

solidarity

Is a check a legal tender?

when the period is "on or before a date" the period is in favor of the

debtor

Proof of pecuniary loss is not required in the damages such as

Exemplary Moral Nominal Temperate or Moderate

Contract with false cause is:

void

Acceptance of a commercial document is equivalent to payment when a. The check has been cashed. b. The check became valueless due to the creditor's fault. c. Creditor is in estoppel. d. All of the above.

The kind of compensation which arises by way of proved counterclaim in a case is called: a. legal compensation. b. voluntary compensation. c. judicial compensation. d. facultative compensation.

G was appointed guardian of S, the latter being 16 years old. S sold his parcel of land in writing to B valued at P100,000 for P75,000, suffering lesion by 1/4 of the value. What is the status of the contract? a. Rescissible b. Unenforceable c. Enforceable d. Voidable

The act of abandoning or transferring all the debtor's prop erty to his creditors so that the creditors may sell them, and out of its net proceeds to recover their claim is called

Payment by Cession

The substituion or change of an obligation by a subsequ one which extinguishes or modifies the first, either by charg ing the object or principal conditions, or by substituting the person of the debtor, rights subrogating a third person the rights of the creditor is called:

Novation

A source of obligation where there exists criminal negligence a. culpa contractual b. quasi-contract c. culpa delictual d. culpa aquiliana

The loss or harm suffered by one person on his property is called:

damage

An obligation wherein various things are due but the com plete performance of all of them is necessary to extinguish the obligation. a. Facultative obligation. b. Conjoint obligation. c. Alternative obligation. d. Pure or simple obligation.

The kind of compensation which may only be raised by the creditor and not by the debtor in the obligation to give gratuitous support:

facultative compensation

taking place by the agreement of the original creditor, the third person substituting the original creditor and the debtor.

Conventional subrogation

the transfer to a thing person of all the rights appertaining to the creditor, including the right to proceed against the guarantor, possesors of mortgages, subject to any legal provision or any modification that may be agreed upon.

subrogation

If the original is voidable only, a _____ can take place because voidable contacts are valid until annulled by proper action in court.

valid novation

If the new obligation is voidable, not void, the old one is extinguished and the new one shall be given force and effect until it is annulled. Take note that voidable contracts are subject to ratification to give them a lasting effect.

One which takes place when the creditor accepts a third person to take the place of the debtor at the instance of the latter.

Delegacion

(that which takes place when a third person of his own initiative and without the knowledge or against the will of the original debtor assumes the latter's obligation with the consent of the creditor.

Expromision

If time of payment is shortened, say from 10 yearsbto 5 years, there is ___ because the two obligations are incompatible with one another.

novation

If the payment is extended, say from 5 years to 10 years, there is ____because the two obligations are compatible to one another, they can stand together.

no novation

is the extinguishment of an existing obligation by the substitution of a new obligation

Novation

refers to the substitution of another in the person of the debtor or to the subrogation of a third person in the rights of the creditor.

Personal Novation

refers to the change either in the cause, object or principal conditions of the obligation.

Real or Objective Novation

In compensation, __ payment is always permitted. while in payment, it must be complete and indivisible as a rule.

partial

one party can claim compensation the other cannot

Facultative compensation

to vindicate a right

Nominal Damage

exact amount cannot be determined

Temperate Damage

actual losses and unrealized profit

Actual damage

is the fault or negligence which constitutes an independent source of an obligation between parties not previously bound.

culpa aquiliana

is a superior or irresistible force which is essentially an act of man, such as wars, strikes, riots, acts of robbers, pirates and brigands.

force majeure

The action which the creditor may exercise in the place of his debtor in order to preserve or recover the property lost or transferred so that he can satisfy his own credit is called

accion subrogatoria or subrogatory action.

The creditor as a last resort has the right to set aside or revoke or cancel the acts which the debtor may have done to defraud him and this is called

Accion Pauliana or the right to rescind

A condition is a future and uncertain event upon which an obligation is subordinated or made to depend.

Condition

What are the requisites of condition?

a. Futurity b. Uncertainty

When the debtor voluntarily prevents the fulfillment of the condition, the condition is deemed fulfilled. The obligation, therefore, is effective. This is called

constructive or presumed fulfillment

a period after which the obligation is extinguished.

in diem resolutory period

a period which must lapse before the obligations can be demanded.

ex die suspensive period

Legal provisions regarding the obligations of devises and legatees Liability of principals, accomplices, and accessories of a felony. Bailees in commodatum.

Solidarity

when it is established for the purpose of indemnifying the damages suffered by the obligee or creditor in case of breach of the obligation.

Compensatory penalty

when it is established for the purpose of punishing the obligor or debtor in case of breach of the obligation.

Punitive penalty

is the mode of extinguishing an obligation whereby the debtor alienates property in favor of the creditor for a satisfaction of monetary obligation.

Dation

The other names for Dation in payment are: 1. datio in solutum. 2. adjudecacion en pago. 3. payment in kind.

An act to assure uniform value of Philippine coin and currency.

RA 8183

It is the designation of the debt to which should be applied when payment is made by a debtor who owes several debts in favor of the same creditor. The purpose is to know which debt out of two or more debts owing the creditor should be extinguished.

application of payment

To whom does the right to make an application of payment belong?

debtor

The creditors do not become the owners, they are considered assignees with power to sell the property

Payment by Cession

cession requires

full or partial insolvency

Tender of payment is ___ while consignation is ___.

extrajudicial judicial

It 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

Tender of payment without consignation shall ____ the obligation. In short, there must be an offer to pay.

not extinguish

Effect of delivery of the thing pledged to the debtor by the creditor. Contract of pledge is extinguished but not the principal obligation. Debtor is still indebted but there is no more security.

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