RFBT - OBLIGATIONS Flashcards
(209 cards)
1
Q
What is an obligation?
A
Art 1156 : An OBLIGATION is a juridical necessity to give, to do, or not to do.
2
Q
What does juridical necessity mean?
A
It means that the courts may be asked to order the performance of the obligation if the debtor refuses to perform it.
3
Q
What are the requisites of an obligation? Explain each.
A
Passive Subject - Debtor
Active Subject - Creditor
Prestation - Object of the obligation, it is what is given, done, or not done.
Efficient Cause/Vinculum Juris/Legal tie - that which binds the parties to an obligation. It can be any of the 5 sources of obligations.
4
Q
Differentiate Civil and Natural obligations.
A
Civil obligations are based on positive law, hence enforceable by court action.
Natural obligations exist only in moral justice and equity, it is not enforceable in court.
5
Q
What are the sources of an obligation?
A
L- Law C- Contract Q- Quasi-contract D- Delicts Q- Quasi-delict
6
Q
Briefly discuss each source of obligation.
A
Law - rule of conduct laid down by authority. OBLIGATIONS DERIVED FROM LAW ARE NOT PRESUMED. ONLY THOSE EXPRESSLY DETERMINED ARE DEMANDABLE.
Contract - meeting of minds between 2 persons whereby one binds himself with respect to the other to give something or to render some service.
Quasi-Contract - lawful,voluntary, and unilateral acts giving rise to a juridical relation on the basis that 'NO ONE SHALL BE UNJUSTLY ENRICHED AT THE EXPENSE OF ANOTHER." Common QC include: Solutio Indebiti(payment by mistake) and Negotiorum Gestio(Voluntary administration)
Delicts - Crime/acts/omissions punishable by law makes the offender civilly liable.
Quasi-delicts/torts/culpa aquiliana - acts that cause damage to another but without any pre-existing contractual relation between parties.
7
Q
What are the elements of a Quasi-delict?
A
(1) an act or omission
(2) the presence of fault or negligence in the performance or non-performance of the act;
(3) injury;
(4) a causal connection between the negligent act and the injury;
(5) no pre-existing contractual relation.
8
Q
Differentiate Generic and Determinate things.
A
Generic - not particularly designated.
Determinate - designated from all others of the same class.
9
Q
Why is it important to know whether a thing is determinate or generic?
A
Whether a thing is determinate or generic has its implications in obligations. For example, loss of a determinate thing through fortuitous event extinguishes the obligation.
10
Q
What are the obligations of one obliged to deliver a determinate thing?
A
- ) Take good care of the thing with the DILIGENCE OF A GOOD FATHER OF A FAMILY, unless another standard of care is needed.
- ) To deliver the thing, either actually or constructively.
- ) To deliver the fruits of the thing. Right to the fruits arises from the time the obligation to deliver it arises. Real right is established only when the thing has been delivered to him.
- ) To deliver the accessions and accessories even if they had not been mentioned.
- ) Answer for damages in case of breach/non-fulfillment.
11
Q
What does diligence of a good father mean?
A
It means the ordinary care that an AVERAGE person exercises in taking care of his property.
12
Q
What are the kinds of fruits? Explain each.
A
Natural fruits - are spontaneous products of soil and young and other products of animals.
Industrial fruits - refer to those produced by land of any kind through human cultivation/labor.
Civil fruits - result of juridical relation
Note: The young/offspring of animals, even with human intervention, or natural fruits.
13
Q
Define Accessions and Accessories and differentiate both.
A
Accessions - include those that are PRODUCED/ATTACHED to the thing.
Accessories - those joined to or included with the principal things FOR THE THINGS BETTER USE/PERFECTION/ENJOYMENT.
14
Q
Differentiate Personal and Real right.
A
Personal right - enforceable by one person against another. EG right to demand payment.
Real right - right/power over a specific thing, which is enforceable against the whole world. EG ownership of land.
15
Q
What are the remedies of a creditor if debtor fails to perform his obligation to deliver a determinate thing?
A
- ) Compel the debtor to make the delivery
2. ) To demand damages from the debtor.
16
Q
What are the remedies of a creditor if debtor fails to perform his obligation to deliver a generic thing?
A
- ) To ask that the obligation be complied with at the expense of the debtor.
- ) To demand damages from the debtor.
17
Q
What are the remedies of a creditor if debtor fails to perform his obligation or performs it but in contravention to the tenor of the obligation?
A
- ) Creditor may have the obligation executed at the expense of the debtor.
- ) Demand damages from debtor.
18
Q
What are the remedies of a creditor if debtor performs but does it poorly?
A
- ) Creditor may have the same be undone at debtor’s expense.
- ) Creditor may also demand damages from debtor.
19
Q
What are the remedies of a creditor if the debtor does what has been forbidden him?
A
- ) The creditor may demand that what has been done be undone.
- ) He may also demand damages.
20
Q
What are the grounds for liability to pay damages?
A
F Fraud
N Negligence
D Delay
C Contravention of the tenor of the obligation
21
Q
What are damages? How is it different from Injury?
A
INJURY CAUSES DAMAGE
Damages - refer to the harm done and the sum of money that may be recovered in reparation for the harm done.
Injury - refers to the wrongful/unlawful/tortuous act which causes loss or harm to another.
22
Q
What are the kinds of damages? Explain each.
A
M Moral - Damages suffered because of physical suffering, mental anguish, etc.
E Exemplary/Corrective - Imposed as an example or correction for public good.
N Nominal - damages to vindicate a right.
T Temperate/Moderate - more than nominal but less than compensatory. Damages given when amount of pecuniary loss cannot be proved with certainty.
A Actual/Compensatory - Pecuniary loss suffered and profits not realized.
L Liquidated - Agreed upon by parties in case of breach.
23
Q
What is fraud?
A
Fraud is the deliberate/intentional evasion by debtor of normal compliance of his obligation.
24
Q
What are the kinds of fraud ? Explain each.
A
Causal Fraud (Dolo Causante) - Fraud without which consent would not have been given. Renders the contract VOIDABLE.
Incidental Fraud (Dolo Incidente) Fraud without which consent would still be given, but on different terms. It renders the contract valid but the party guilty of fraud is liable for damages.
25
What happens when there is fraud in the performance of the obligation?
The fraud has no effect on the validity of the contract since it was employed after perfection. However the guilty party shall be liable for damages. Dolo Incidente occurs in this case
26
Discuss waiver for future and past fraud.
A waiver for future fraud cannot be made. If there is, it is void.
A waiver of an action of past fraud may be made by the creditor/aggrieved party.
27
What is negligence?
It is the omission of diligence which is required by the nature of the obligation and corresponds with the circumstances of the person/time/place. It is the failure to observe the degree of care/caution/vigilance which the circumstances justly demand.
28
What are the kinds of negligence? Explain each.
Contractual negligence (Culpa Contractual) - Negligence in the performance of a contract. MASTER-SERVANT RULE APPLIES.
Civil Negligence (Tort/Quasi-delict/Culpa extra-contractual) Acts or omissions that cause damage to another, there being no contractual relation between parties.
Criminal Negligence (Culpa Criminal) Negligence that results in commission of a crime.
Passenger may sue owner for contractual negligence plus criminal negligence on the driver.
Pedestrian may sue driver for civil and criminal negligence. He may also sue the owner for civil negligence.
29
What is delay?
Delay (Mora) is the non-fulfillment of an obligation with respect to time.
30
What are the kinds of delay? Explain each.
Mora solvendi - delay on the part of the debtor. 2 types
a. ) Ex re - delay in real obligation
b. ) Ex persona - delay in personal obligations
Mora accipiendi - delay on the part of the creditor. This happens when creditor refuses to accept the thing without any justification.
Compensatio Morae - Delay by both parties, it is as if there is no delay.
31
What is the general rule in delay in obligations?
No demand, no delay. Debtor incurs delay from the time the creditor demands fulfillment of the obligation, but debtor fails to comply.
32
What are the requisites of delay?
1. ) That the obligation be due and demandable.
2. ) The debtor does not perform the obligation.
3. ) The creditor demands the performance either judicially or extra-judicially.
4. ) Debtor fails to comply with the demand.
33
When will delay exist even without demand?
The following are the exceptions:
1. ) When the law so provides.
2. ) When the obligation so expressly declares.
3. ) When time is of the essence of the contract.
4. ) When demand would be useless.
5. ) In reciprocal obligations, where the obligations arise out of the same cause and must be fulfilled at the same time.
34
What are the effects of delay on the part of the debtor? On the part of the creditor?
Debtor shall be liable for damages.
If the obligation consists in the delivery of a determinate thing, he shall be liable for any fortuitous events until he has effected delivery.
Creditor shall bear the risk of loss and shoulder expenses for the preservation of the thing. Debtor may resort to consignation of the thing.
35
What is a Fortuitous event?
These are events that could not be foreseen or are inevitable, such as war, flood, and other calamities.
36
What are the elements of a fortuitous events?
1. ) The cause must be independent of the debtor's will.
2. ) There must be impossibility of foreseeing the event or avoiding it if it can be foreseen.
3. ) The occurrence of the event must be of such character as to render it impossible for the debtor to perform his obligation in a normal manner.
37
What is the general rule for fortuitous events?
That no person be liable for fortuitous events, i.e., his obligation will be extinguished.
38
What are exceptions to the general rule on fortuitous events?
1. ) When the law expressly provides for liability even in case of fortuitous events. (Example: Debtor has promised the same thing to different creditors not sharing the same interest.)
2. ) When the parties have declared liability even in case of fortuitous event.
3. ) When the nature of obligation requires the assumption of risk. (Insurance)
39
What are the remedies of a creditor to enforce payment of his claims against the debtor?
In the following order:
1. ) Pursue the property in the possession of the debtor, except those exempt by law.
2. ) Accion Subrogatoria - Exercise all the rights and bring all the actions of the debtor except those rights personal to him.
3. ) Accion Pauliana - Impugn the acts which the debtor may have done to defraud his creditors.
40
What is the general rule on transmissibility of rights?
All rights acquired in virtue of an obligation are transmissible.
41
What are the exceptions to the general rule on transmissibility of rights?
1. ) If the law prohibits the transmissibility of rights.
2. ) If the parties agreed against transmissibility.
3. ) If the right is by its nature is not transmissible.
42
What is a Pure obligation?
Obligation without a term or condition.
43
What is a conditional obligation?
Obligation whose demandability or extinguishment depends upon the happening of a condition.
44
What is a condition? Briefly discuss its types.
It is an uncertain event which wields an influence on a legal relationship. It has several classifications:
1.) Suspensive/CONDITION PRECEDENT/ANTECEDENT - gives rise to obligation.
2. ) Resolutory/CONDITION SUBSEQUENT -extinguishes an obligation.
3. ) Potestative - depends upon the will of one of the contracting parties. (Suspensive postestative condition on the part of debtor is VOID)
4. ) Casual - depends upon chance or will of third person.
5. ) Mixed - partly upon will of one of the parties and upon chance/3rd person.
6. ) Possible - capable of fulfillment
7. ) Impossible - VOID
8. ) Positive - condition that some event will happen at a future time..
9. ) Negative - condition that some event will not happen at a future time.
10. ) Divisible - capable of partial performance.
11. ) Indivisible - not capable of partial performance either by its nature or law or agreement of parties.
45
What is the general rule on the effect of suspensive conditions?
That the effect of the fulfillment of the suspensive condition RETROACTS to the day of the constitution of the obligation.
46
What are the exceptions to the general rule of the effect of suspensive conditions?
1. ) There shall be no retroactive effect with respect to fruits and interest in:
a. ) Reciprocal obligations, the fruits and interests are deemed to be mutually compensated.
b. ) Unilateral obligations, since it is gratuitous.
47
What is the effect when the debtor voluntarily prevents the fulfillment of the condition?
The condition is deemed fulfilled and the obligation becomes immediately demandable.
48
What happens when a thing deteriorates because of debtor's fault before the fulfillment of a suspensive condition?
The creditor may either:
1. ) Ask for rescission plus damages
2. ) Fulfillment plus damages
49
What is an obligation with a period?
One whose demandability or extinguishment is subjected to expiration of the term WHICH MUST NECESSARILY COME at a date beforehand, or at a time that cannot be determined.
50
What is a period?
Period is a space of time which determines the effectivity or extinguishment of an obligation.
51
Differentiate Period and Condition.
Condition - may or may not happen
Period - must happen
Condition - may refer to past or future.
Period - future
Condition - causes obligation to arise or cease
Period - merely fixes the time for efficaciousness of an obligation.
52
What are the kinds of period?
Ex die - period with a suspensive effect.
In diem - period with a resolutory effect.
Legal - fixed by law
Voluntary - fixed by parties
Judicial - fixed by court
53
"I will pay my debt when my means permit me to do so." Period or condition?
It is an obligation with a period. The remedy is to ask the court to fix a period.
54
When can the court fix the period?
1. ) When the obligation does not fix a period, but it can be inferred from its nature that a period was intended.
2. ) When the duration of the period depends upon the will of the debtor.
55
What is the presumption as to who has the benefit of the period?
It is assumed that the period was designated for the benefit of both parties, unless otherwise stated in the obligation.
56
Give an example of a period wherein benefit is vested on the debtor and the creditor.
Debtor's benefit - Abdul is obliged to pay Rashid 500 on or before Ramadan.
Creditor's benefit - Abdul borrowed 500 from Rashid, collectible by Rashid on or before Ramadan.
57
What are the instances when the debtor loses his right to make use of the period if it is for his benefit?
1. ) When the debtor becomes insolvent, unless he gives a guaranty/security for the debt.
2. ) When the debtor fails to furnish the guarantee or securities he promised.
3. ) When he impairs said guaranty/security by his own acts, or because of fortuitous events they disappear, unless he gives a new one equally satisfactory.
4. ) When he violates any undertaking in consideration of which the creditor agreed to the period.
5. ) When he attempts to abscond.
58
Differentiate Alternative and Facultative obligations.
Alternative obligation - one where several prestations are due but the complete performance of one of them is sufficient to extinguish the obligation.
Facultative - An obligation where only one prestation is due but the debtor may render another in substitution..
59
What are the kinds of obligation according to the number of prestations?
Simple - only one prestation is due.
Compound - 2 or more prestations are due.
a.) Conjunctive - all must be performed to extinguish obligation
b.) Distributive/disjunctive - either facultative or alternative.
60
By default, who has the right to choose prestation in an alternative obligation?
The debtor, unless it has been EXPRESSLY granted to the creditor.
61
When does an obligation cease to be alternative therefore becomes a simple obligation?
1. ) When the debtor has communicated his choice to the creditor.
2. ) When only one of the prestations is practicable.
3. ) When the creditor has been given expressly the right to choose, and he has communicated his choice to debtor.
62
Differentiate Joint and Solidary Obligations.
Joint - debtor is only liable for a proportionate share of the debt, and the creditor is entitled only to a proportionate part of the credit. (IF SILENT, ASSUME JOINT)
Solidary - each debtor is liable for the whole obligation, each creditor is entitled to demand payment of the whole obligation.
63
What are the other terms for Solidary obligations?
1. ) Jointly and severally
2. ) Individually and collectively
3. ) In solidum
4. ) Mancomunada solidaria
5. ) Juntos o separadamente
64
What are other terms for Joint obligations?
1. ) Proportionately
2. ) Pro rata
3. ) Mancomunada
4. ) Mancomunada simple
65
A and B are solidary debtors of X and Y, solidary creditors in the amount of 20000. If X renounces the whole obligation without Y's consent, will the obligation be extinguished?
Yes, remission made by any SOLIDARY CREDITOR extinguishes the whole obligation, but X has to reimburse Y's share.
66
A and B are solidary debtors of X and Y, solidary creditors in the amount of 20000. If A obtains remission from the creditors, may A demand reimbursement from B?
No, because the remission is gratuitous only, and does not entitle him to reimbursement.
67
A and B are solidary debtors of X and Y, solidary creditors in the amount of 20000. X renounces A's share of 10000, but it turns out that B already paid the whole 20000 a day ago. May B still go after A?
Yes he can go after A for 10000. The remission made by X does not release A from his liability to his co-debtor B. A's remedy will be to go to X or Y.
68
Abdul, Rashid, and Mohammed are solidary creditors of Ustadz for 30000. If Abdul pays Ustadz for the whole amount and Mohammed has become insolvent, how much can Abdul claim from Rashid? What if all of them are joint debtors?
Rashid must reimburse Abdul for 15000. Abdul and Rashid split up Mohammed's share since he is insolvent.
If it was a joint obligation on the part of debtors, Abdul and Rashid do not have to be liable for Mohammed's share.
69
Abdul, Rashid and Mohammed are solidarily liable to Jamal for 30000. However it was agreed that Abdul's share is payable on demand, Rashid's share next Ramadan, and Mohammed's on the next Feast day St. Peter. What is the effect?
Jamal can demand payment from any of the debtor's share for 10000(Abdul). He can demand another 10000(Rashid) from any of them on Ramadan. He can demand the last 10000(Mohammed) from any of them on St. Peter's Day.
70
Explain Joint Indivisible Obligations.
It is an obligation where the debtors or creditors are jointly bound but the prestation is indivisible.
1. ) Creditors must act collectively in making the demand, unless one is specifically authorized to act for the others. A demand made by one or some of them will have no effect.
2. ) Demand must be made against all debtors since compliance is possible only when they act together.
3. ) The right of creditors may be prejudiced only by their collective acts.
4. ) If one of the debtors does not comply with his undertaking, the obligation is converted into a monetary obligation to pay damages. The debtors who were ready to comply shall not contribute to the indemnity beyond his/her share.
71
A,B, and C are jointly indebted to deliver a specific car to X,Y,Z worth 900000. Explain what happens.
XYZ must make a demand against ABC.
If A does not comply, B and C each owes 300000, but A must pay 300000 plus damages.
If A is insolvent, B and C will not absorb A's share.
If X renounces his share, Y and Z are entitled to receive 200000 each from the debtors.
72
What are divisible and indivisible obligations?
Divisible - capable of partial performance.
| Indivisible - not capable of partial performance.
73
What is a penal clause?
Penal clause - clause that provides greater liability on the part of the debtor, to ensure performance, either as punishment or reparation for damages, or both.
74
Is proof of actual damages suffered necessary in obligations with a penal clause?
No. Obligor is bound to pay the stipulated indemnity without the need of proof of damages.
75
What is the general rule when obligations have a penal clause?
GR: The penalty takes the place of the damages and interest in case of non-compliance.
76
What are the exceptions to the general rule on penal clauses?
1. ) When there is a stipulation that aside from penalty, damages and interest may also be demanded.
2. ) When the debtor refuses to pay the penalty.
3. ) When the debtor is guilty of fraud in the performance of the obligation.
77
What are the causes of extinguishment of obligations?
```
Payment/performance
Loss of the thing due
Condonation/remission of debt
Confusion/merger
Compensation
Novation
Annulment
Rescission
Fulfillment
Prescription
Other causes
```
78
What is legal tender?
Legal tender is the money or currency which the debtor may compel his creditor to accept in payment of his debt.
Centavos - LT up to 100 pesos
Coins - LT up to 1000
Bills - any amount
79
What is the formula for the amount to be paid in cases of extraordinary inflation or deflation?
A = (B/C) x B
Wherein:
A = new amount to be paid
B = Old amount
C = value of the amount at date of maturity.
FOR THIS TO BE APPLICABLE, THERE MUST BE AN OFFICIAL PRONOUNCEMENT MADE BY COMPETENT AUTHORITIES.
80
When do mercantile documents like checks produce the effect of payment?
When they have been cashed or deposited, OR when through the fault of the creditor they have been impaired.
81
Is a check a legal tender?
No.
82
What are the two instances wherein payment or performance MAY NOT be complete?
1. ) When the obligation has been substantially performed in good faith, the obligor may recover as though there had been strict and complete fulfillment less damages suffered by obligee.
2. ) When the obligee accepts the performance knowing its completeness or irregularity and without expressing any protest or objection, the obligation is deemed fully complied with.
83
When can partial payments be made?
1. ) When there is an agreement to that effect.
| 2. ) When the debit is in part liquidated.
84
What does free disposal of the thing due mean?
It means that the property delivered should not be subject to any claim by or encumbered by third persons.
85
What happens when a 3rd person makes payment on behalf of the debtor without debtor's consent? With consent?
Without consent - 3rd person can only recover what has been beneficial to the debtor.
With consent - 3rd person can recover and is subrogated in the rights of the creditor such as those arising from mortgage, guaranty or penalty.
86
What is the general rule when payment is made to an incapacitated creditor?
Invalid payment.
87
What are the exceptions to the general rule in payment to an incapacitated creditor?
1. ) If the incapacitated creditor has kept the thing delivered to him.
2. ) Insofar as the payment has been beneficial to him.
88
What is the general rule in payment to unauthorized persons?
Invalid payment.
89
What are the exceptions to the general rule in payment to unauthorized persons?
1.) If the payment has redounded to the benefit of the creditor, which benefit need not be proven in:
a.) If after payment, 3rd person acquires creditor's rights
b.) If creditor ratifies the payment to 3rd person.
c.) If by the creditor's conduct, the debtor has been
led to believe that the 3rd person had the authority to
receive payment.
90
Where must payment be made?
1.)With stipulation - in place designated.
2.) If there is no stipulation
a.) Determinate thing - place where thing is
at the time obligation was constituted.
b.) Generic thing - Domicile of the debtor.
91
What are the special forms of payment?
1. )D Dation in payment
2. ) A Application of payment
3. ) P Payment by cession
4. ) T Tender of payment and consignation
92
What is dation in payment?
Dation in payment(dacion en pago) is a special form of payment where the ownership of property is transferred to his creditor to pay a debt in money.
What actually takes place is an objective novation of the obligation.
93
What is appplication of payment?
It is the designation of the debtor of the debt to which payment shall be applied when the debtor owes several debts in favor of the same creditor.
94
What are the requisites of application of payment?
1. ) There must be 2 or more debts.
2. ) The debts must be of the same kind.
3. ) The debts are owed by the same debtor to the same creditor.
4.) All debts are due, except when:
a.) When parties have stipulated that payment may be
applied to a debt not yet due (payable on or before)
b.) When application for whose benefit the term has
been constituted.
In all instances, if the debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been covered.
95
What is payment by cession?
Payment by cession is the abandonment or assignment by the debtor of ALL HIS PROPERTY in favor of his creditors so that the latter may sell them and recover their claims out of the proceeds.
It only releases the debtor of his obligations up to the amount of the proceeds.
96
What are the requisites of payment by cession?
1. ) There must be two or more creditors.
2. ) The debtor is insolvent.
3. ) The debtor abandons all his properties except those that are exempt.
4. ) The creditors accept the abandonment.
97
What is tender of payment?
Tender of payment is the act of the debtor of offering to his creditor what is due him.
98
What is consignation?
Consignation is the act of depositing the sum of money or thing due with the judicial authorities whenever the creditor refuses to accept it without just cause, or in cases where the creditor cannot accept it.
99
What are the steps/requirements for tender of payment and consignation to extinguish obligation?
1. ) There must be a valid tender of payment.
2. ) The creditor refuses without just cause to receive the payment.
3. ) The persons interested in the fulfillment of the obligation must be notified by the debtor of his intention to deposit the sum or thing due with the judicial authorities. (THIS NOTICE IS MANDATORY. WITHOUT IT CONSIGNATION IS VOID)
4. ) The sum or thing is deposited to judicial authorities.
5. ) The persons interested in the fulfillment of the obligation must be notified AGAIN by the debtor stating that consignation has been made. (THIS NOTICE IS MANDATORY. WITHOUT IT CONSIGNATION IS VOID)
100
What is the effect of consignation?
If the consignation is duly made, the debtor may ask the judge to cancel the obligation. The obligation is extinguished after the creditor has accepted the consignation OR when the judge has declared that consignation has been properly made.
101
May the debtor withdraw the thing that was consigned? What are the steps?
Yes.
If it was BEFORE acceptance of the creditor of consignation or before the declaration of the judge that consignation has properly been made (CONSENT OF CREDITOR NOT NEEDED):
1. ) Obligation shall remain in force..
2. ) Co debtors, sureties, guarantors are not released.
If AFTER acceptance of the creditor of consignation or the after declaration of the judge that consignation has properly been made (CONSENT OF CREDITOR NEEDED)
1. ) The obligation shall be revived
2. ) Creditor will lose every preference which he may have had over the thing
3. ) Guarantors, co-debtors and sureties are released unless the consented.
102
When will consignation, without a previous tender of payment produce the same effect?
1. ) When creditor is absent or does not appear in the place of payment.
2. ) When he is incapacitated to receive the payment at the time it is due
3. ) When without just cause he refuses to give a receipt
4. ) When two or more persons claim the same right to collect.
5. ) When the title of obligation has been lost.
103
What is Loss? What are the kinds of losses?
A thing is considered lost when it perishes, goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered.
Physical loss - when a thing perishes (house burnt)
Legal loss - when a thing goes out of commerce or becomes illegal
Civil Loss - when a thing disappears in such a way that its existence is unknown
104
What is the general rule when a determinate thing is lost? What are the exceptions?
GR: Obligation is extinguished.
Exceptions:
1.) When the thing is lost due to the fault of the debtor.
2.) When the debtor has incurred delay.
3.) When so provided by law as when debtor promised the same thing to two different unrelated parties who do not share the same interest.
4.) When it has been stipulated by the parties
5.) When the nature of the obligation requires the assumption of risk
6.) When the debt proceeds from a criminal offense
105
What is the general rule on the loss of a generic thing? What is its exception?
GR: The loss/destruction of a generic thing does not extinguish the obligation because a generic thing never really perishes. (Genus nunquam perit)
Exception: In the case of "delimited generic thing" (100 sacks of rice from my harvest this year when such harvest is destroyed)
106
What is the effect of partial loss?
Courts shall determine whether under the circumstance, partial loss is so important that it extinguishes the obligation.
107
What is the creditor's right if the loss is caused by 3rd persons?
Creditor shall have all the rights of action which the debtor may have had against 3rd persons by reason of the loss.
108
What is condonation/remission?
It is the gratuitous abandonment by the creditor of his right.
109
What is the presumption when the thing pledged after its delivery to the creditor is found in the possession of the debtor or of a 3rd person who owns the thing?
It is presumed that the accessory obligation of the pledge is remitted, but not the principal obligation.
110
What is confusion/merger?
It is the meeting in one person of the qualities or the characters of creditor and debtor.
111
Abdul owes Rashid 5000 evidenced by a note. The debt is guaranteed by Mohammed. Rashid assigns the note to Masjid, Masjid to Abu, and Abu to Abdul.
1. ) What happens next?
2. ) What happens if Abu assigns it to Mohammed instead?
1. ) The principal and accessory obligation is extinguished.
| 2. ) Only the accessory obligation is extinguished.
112
A,B, and C are joint debtors of X for 3000 evidenced by a note. X assigns the note to Y, Y to Z, and Z to A. What happens next?
A's share of 1000 is extinguished, and he can claim 1000 each from C and B.
113
A,B, and C are solidary debtors of X for 3000 evidenced by a note. X assigns the note to Y, Y to Z, and Z to A. What happens next?
The whole obligation is extinguished by confusion to which the debtors and creditor are one and the same in essence, A can claim 1000 each from C and B.
114
What is compensation?
Compensation shall take place when two person in their own right are creditors and debtors of each other.
115
What are the requisites of compensation?
1. ) That each of the obligors be bound principally and that he be the principal creditor of the other.
2. ) That both debts consist in a sum of money, or things that are of the same kind and quality, if so stated.
3. ) That the two debts be due.
4. ) That both debts be liquidated and demandable.
5. ) That over neither of them there be any retention or controversy commenced by 3rd persons and communicated in time to the debtor.
116
May a guarantor set up compensation as regards to what the creditor owes the debtor?
Yes.
117
D owes C 5000, G as guarantor. C owes D 4000. On due date C demands payment from D but D no longer has any assets left so C goes after G. May G set up compensation?
Yes, G may raise compensation which is the only exception to the first requisite of compensation. C can only collect 1000 from G.
118
What is a facultative compensation?
A compensation that may be claimed or opposed by one of the parties such as when not all requisites of a compensation are not present
119
What are some instances of facultative compensation?
1. ) Deposit
2. ) Commodatum
3. ) Debt arises from a claim of support by gratuitous title.
4. ) When one of the debts consists in civil liability arising from a penal offense.
120
D owes C 5000. C out of anger intentionally rammed his jeepney against D's gates causing damages amounting to 5000, which he was ordered to pay by the court. Who may claim compensation?
Only D may claim compensation.
121
D owes C 20000 due on March 15, C owes D 8000 on March 10. On March 12, C assigned his right to T with D's consent. What happens next? What must D do so that he can claim compensation?
On March 15, T can collect 20000 from D, but D can collect 8000 from C.
D must RESERVE HIS RIGHT TO THE COMPENSATION WHEN HE CONSENTED TO THE ASSIGNMENT. This would mean that on March 15, T can collect only 12000 from D.
122
D owes C 20000 due on March 15. C owes D 8000 on March 1, 3000 on March 8, and 5000 on March 14. On March 12 C assigned his credit right to T with notice to D but D did not give his consent to the assignment. What happens next?
T may collect 9000 only from D because D can set up compensation with respect to the debts due before the assignment.
IF THE DEBTOR WAS NOTIFIED OF THE ASSIGNMENT BUT HE DID NOT CONSENT, DEBTOR MAY SET UP COMPENSATION OF DEBTS MATURING BEFORE THE ASSIGNMENT, BUT NOT OF SUBSEQUENT ONES.
123
What happens in compensation when the assignment was without the knowledge of the debtor?
The debtor can set up compensation on all debts maturing before the time he obtains knowledge of the assignment.
124
D owes C 20000 on March 25. C owes D 8000 on March 1, 3000 on March 8, 5000 on March 14, and 2000 on March 31. On March 12, C assigned his right to T without knowledge of D. D learned of the assignment on March 16. How much can T collect from D on March 25?
T can collect 4000, 20000 less the debts due before D learned of the assignment.
125
A is indebted to XYZ, solidary creditors for 30000. X in turn owes A 30000. Can there be compensation?
X and A may claim compensation, there being only two creditors and debtors in essence. However, X has to reimburse Y and Z 10000 each for their share.
126
What is novation?
Novation is the modification or extinguishment of an obligation by another, either by changing the object or principal condition, substitution of debtor or subrogating a 3rd person in the rights of the creditor. It extinguishes an obligation to substitute another one in its place.
127
What are the requisites of novation?
1.) There must be a previous valid obligation.
2.) There must be agreement between the parties to the novation, except when:
a.) When the person of the debtor is changed which
can be made even if it is against the will of the debtor
b.)When another person is subrogated in the place of the creditor
1.) When a creditor pays another creditor who is preferred, even without the debtor's knowledge
2.) When, even without the knowledge of the debtor, a person interested in the fulfillment of the obligation pays, without prejudice to the effects of confusion as to the latter's share.
3. ) There must be an extinguishment of the old obligation
4. ) There must be a new valid obligation.
128
What are the kinds of novation?
1.) Real/objective - changing the object or principal condition
2.) Personal/subjective
SUBSTITUTION of debtor(ALWAYS W CREDITOR'S CONSENT
a.) Expromision - 3rd person initiates the substitution and assumes the obligation even w/o the knowledge or against the will of the debtor.
b.) Delegacion - debtor initiates the substitution, which requires the consent of all parties.
SUBROGATION of third person in the rights of the creditor.
a. ) Conventional - agreed by parties
b. ) Legal - by operation of law.
c. ) Mixed - Change of object and parties to the obligation
129
D owes C 50000, secured by a real mortgage. D also owes X 40000. If X pays C amounting to 50000. Is X subrogated in the rights of C? Can he foreclose the mortgage if D cannot pay?
X is subrogated in the rights of C, and he can foreclose the mortgage if D cannot pay. What happens here is a legal subrogation.
130
D owes C 100000 evidenced by a mortgage. T pays C with the consent of D. Is T subrogated in the rights of C?
Yes. What happens here is a a legal subrogation,
131
Causal fraud renders a contract?
Voidable
132
T or F
When without the knowledge of the person obliged to give support, it is given by a stranger, the latter shall have the right to claim the same from the former, unless it appears that he gave it out of piety and without the intention of being paid.
True. Article 2164 Other Quasi-Contracts.
133
T or F
When funeral expenses are borne by a 3rd person, without knowledge of those relatives who were obliged to give support to the deceased, said relatives shall reimburse the 3rd person, should the latter claim reimbursement.
True. Article 2615 Other Quasi-contracts
134
T or F
When the person obliged to support an orphan, or an insane or other indigent person unjustly refuses to give support to the latter, any 3rd person may furnish support to the needy individual, with right of reimbursement from the person obliged to give support. The above shall apply when the father or mother of the child under 18 years of age unjustly refuses to support him.
True. Article 2166 Other quasi-contracts.
135
T or F
When through an accident or other cause a person is injured or becomes seriously ill, and he is treated or helped while he is not in a condition to give consent to a contract, he shall be liable for the services of the physician or other person aiding him, unless the service has been rendered out of pure generosity.
True, Art 2167 other quasi contract
136
T or F
When during a fire, flood, storm, or other calamity property is saved from destruction by another person without the knowledge of the owner, the latter is bound to pay the former just compensation.
True. Art 2168 Other quasi-contracts
137
T or F
When the government, upon failure of any person to comply with health or safety regulations concerning property, undertakes to do necessary work, even over his objection, he shall be liable to pay the expenses.
True. Art 2169 other quasi contracts
138
T or F
When by accident or other fortuitous event, movables separately pertaining to two or more persons are commingled or confused, the rules on co-ownership are applicable.
True. Art 2174 other quasi-contracts
139
T or F
When a small community, a majority of the inhabitants of age decide upon a measure of protection against lawlessness, fire, flood, storm or other calamity, any one who objects to the plan and refuses to contribute to the expenses but is benefited by the project as executed shall be liable to pay his share of said expenses.
True. Art 2174 other quasi contracts.
140
T or F
| Any person who is constrained to pay the taxes of another shall be entitled to reimbursement from the latter.
True. Art 2175 other quasi contracts.
141
When does a pure obligation to deliver a thing become demandable?
Obligation to deliver arises from perfection.
142
D owes C 50,000. To defraud C, D sells his only property to B.
1. May C ask the court to rescind the sale supposing B knew about D's intent to defraud?
2. May C ask the court to rescind the sale supposing B did not know about D's intent to defraud and was a buyer in good faith?
1. Yes. Accion Pauliana.
| 2. No, since he was a buyer in good faith.
143
T or F
| The condition is deemed fulfilled if the debtor voluntarily prevents its fulfillment.
True.
144
T or F
| Death of a person is a period, not a condition.
True, except when the death must result from a particular scenario.
Example:
I will give you 5000 if X dies - PERIOD
I will give you 5000 if X dies of cancer - Condition.
145
T or F
A period that depends upon the will of the debtor shall annul the obligation while a condition that depends upon the will of the debtor authorizes the court to fix its duration.
False. A condition that depends upon the will of the debtor shall annul the obligation (VOID) while a period that depends upon the will of the debtor authorizes the court to fix its duration.
146
Give some examples in which the period depends upon the will of the debtor.
1. When my means permit me to do so.
2. Little by little
3. As soon as I have the money
4. ASAP
5. In partial payments
147
Explain the presumption as to who has the benefit of the period.
The benefit of the period is PRESUMED TO HAVE BEEN ESTABLISHED FOR THE BENEFIT OF BOTH CREDITOR AND DEBTOR, unless the tenor of the obligation states otherwise.
148
What are the rules in case of loss of things or impossibility of service in alternate obligations before a choice is communicated and the right of choice belongs to the debtor?
1. If only one or some are lost through a fortuitous event or through debtor's fault, the debtor may deliver any of the remainder or that which remains if only one subsists.
2. If all are lost through fortuitous event, the obligation is extinguished.
3. If all are lost through the debtor's fault, he shall pay the value of the last thing that was lost plus damages
4. If all except one are lost through the debtor's fault and the last remaining item is subsequently lost through fortuitous events, the obligation is extinguished.
5. If all except one are lost through fortuitous event and the remaining item is subsequently lost through the debtor's fault, the debtor shall pay damages.
149
What are the rules in case of loss of things or impossibility of service in alternate obligations before a choice is communicated and the right of choice belongs to the creditor?
1. If only one or some are lost through a fortuitous event, the debtor shall deliver that which the creditor should choose among the remainder, or that which remains if only one subsists.
2. If all are lost through fortuitous event, the obligations shall be extinguished.
3. If only one or some are lost through the debtor's fault, the creditor may claim any of those subsisting, or the price of any of those which were lost through the debtor's fault plus damages.
4. If all are lost through the debtor's fault, the creditor may claim the price of any of them plus damages.
150
A and B are solidary debtors of X and Y, solitary creditors in the amount of 2000.
1. If X renounces the whole obligation without Y's consent is the obligation extinguished?
2. Suppose the remission of the whole obligation was obtained by A, may A demand reimbursement from B?
3. If X renounces only A's share of 1000, but it turns out that B already paid Y 2000 a few days ago, what is B's remedy?
1. Yes, but X has to give Y's share
2. No, it does not entitle him to reimbursement, the remission being gratuitous.
3. B may collect 1000 from A, and A's remedy will be to go after X or Y to collect the sum paid to B.
151
What is garnishment?
It is when the debtor has been judicially ordered not to make payment to creditor.
152
What is the effect of a payment made by debtor to creditor despite being served a garnishment?
The payment made shall not be valid.
153
What is the presumption when the private document evidencing debt is found in the possession of the debtor?
It is presumed that it has been delivered voluntarily by the creditor to the debtor so as to remit the obligation, unless the contrary is proved.
154
What is the presumption when the public document evidencing debt is found in the possession of the debtor?
Nothing is presumed since a public document is easily available, being a public record.
155
A, 25yo, B, 26yo, and C, 17yo are solidary debtors of X in the amount of 9000. How much may X collect from A?
6000
156
T or F
| A novation is void if the original obligation is void.
True.
157
Discuss the rules on periods provided in Article 13 of the Civil Code.
1. ONE YEAR IS 365 DAYS. If there are two or more years, it shall be computed as 365 * number of years
2. ONE MONTH MEANS 30 DAYS, unless the name of the month is particularized. (March-31 days, April-30days)
3. IF THERE IS A LEAP YEAR, DISTINGUISH THE FEB 29TH DAY.
4. ONE DAY MEANS 24 HOURS.
5. NIGHT MEANS SUNSET TO SUNRISE
A. If the act to be performed within the period arises from a CONTRACTUAL RELATIONSHIP, the act will become due and demandable notwithstanding the fact that the last day falls on a Sunday or holiday.
B. If the act to be performed within the period is prescribed or allowed by:
1. The Rules of Court
2. By an order of the court
3. Any other applicable statute
then the SUNDAY OR HOLIDAY WILL NOT BE CONSIDERED AS THE LAST DAY. THE LAST DAY WILL AUTOMATICALLY BE THE NEXT WORKING DAY. HERE THE PERIOD IS EXTENDED.
158
Which of the following is a real obligation?
a. Obligation to safekeep real property
b. Obligation to give a grand piano
c. Obligation to construct a building
d. Obligation not to marry
B. Obligation to give a grand piano
a. Obligation to safekeep real property
b. Obligation to give a grand piano
c. Obligation to construct a building
d. Obligation not to marry
TO GIVE. The prestation to give is a REAL OBLIGATION. It is the obligation to deliver either [a] a specific or determinate thing, or [b] a generic or indeterminate thing
TO DO. The prestation to do is a positive personal obligation. It includes all kinds of work or service.
NOT TO DO. The prestation not to do is a negative personal obligation.
159
It means everything which is produced by a thing, or which is attached and incorporated thereto excluding fruits.
Accessions
160
It means those joined to or included with the principal things FOR THE THINGS BETTER USE/PERFECTION/ENJOYMENT.
Accessories.
161
Abdul promised to deliver to Mohammed a Labrador next week. The Labrador gave birth a day before the due date. The puppies were not included in their agreement. To whom shall the puppies belong?
To Mohammed. The puppies are accessions.
162
T or F
| Every person criminally liable is also civilly liable.
True.
163
The remedy of substitute performance is available to a creditor in an obligation to give
a. specific thing
b. generic thing
c. both a and b
d. neither a and b
B
164
Which of the following is not part of the duties of a debtor in an obligation to give a generic thing?
a. take care of the thing with the diligence of a good father of a family
b. pay for damages in case of breach
c. deliver the thing of the quality intended by the parties
d. Deliver its accessions and accessories.
D.
165
What are the duties of a debtor in obligation to deliver a generic thing?
(1) To deliver a thing which is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances; and
(2) To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or contravention of the tenor thereof.
166
As a rule, in order to put the debtor in delay, demand must be:
a. judicial
b. extrajudicial
c. either a or b
d. both a and b
C
167
When does dolo causante exist?
During the perfection of the obligation, since consent was vitiated, making the obligation voidable.
168
Explain the rules on the place of payment of the obligation.
Article 1251. Payment shall be made in the place designated in the obligation.
There being no express stipulation and if the undertaking is to deliver a determinate thing, the payment shall be made wherever the thing might be at the moment the obligation was constituted.
If silent and the undertaking is to deliver a generic thing, the place of payment shall be the DOMICILE OF THE DEBTOR.
In any other case the place of payment shall be the domicile of the debtor.
If the debtor changes his domicile in bad faith or after he has incurred in delay, the additional expenses shall be borne by him.
169
Differentiate domicile and residence.
Domicile is the place of a person's habitual residence; the place where he has his true fixed permanent home and to which place he, whenever he is absent, has the intention of returning.
Residence is only an element of domicile, and simply requires the bodily presence of the inhabitant.
170
T or F
In novation, as a general rule, the condition or period whether suspensive or resolutory is carried over to the new obligation
True.
171
A cashier's check is good as cash and therefore legal tender. T or F
False
172
Among the essential elements of an obligation, which are considered personal elements?
a. obligee and obligor
b. presentation and vinculum
c. Obligee and vinculum
d. Prestation and obligor
A. obligee and obligor
173
T or F
| Obligations derived from law are presumed.
False, never presumed
174
What is the nature of the responsibility or liability of 2 or more officious managers in a negotiorum gestio?
Generally, they shall be solidary liable UNLESS the management was assumed to save the thing or business from imminent danger, which makes their liability joint only.
175
What is the nature of responsibility or liability of 2 or more payees when there has been payment of what is not yet due?
a. Solidary
b. Joint
c. Pro-rata
d. subsidiary
A. solidary
176
When will a person who accepts an undue payment of money be liable for interest?
a. When he receives the payment in bad faith
b. When he receives the payment in good faith
c. Either A or B
d. Neither A nor B
a. When he receives the payment in bad faith
177
Is a person criminally liable also liable to pay civil damages to private offended party?
Yes as a general rule, unless the crime committed does not cause civil damages (eg jaywalking)
178
What degree of evidence must be proved by prosecution for accused to be criminally liable?
Proof beyond reasonable doubt
179
What degree of evidence must be proved by prosecution for accused to be civilly liable?
Preponderance of evidence
180
T or F
| The right violated by a quasi-delict is a public right while that if delict is a private right.
False.
| The right violated by a quasi-delict is a private right while that if delict is a public right.
181
In a contract of sale, when is the buyer or vendee entitled to the fruits of the determinate thing or when does the buyer or vendee obtain personal rights over the fruits of the determinate thing?
ENTITLED from the time of the perfection of the contract.
182
In case a PUBLIC OFFICIAL who has the ministerial duty to perform a particular obligation or public duty under the law fails to do such obligation, what is the remedy of the offended party?
a. Civil action for specific performance
b. Special civil action for mandamus
c. Special civil action for certiorari
d. Special civil action of prohibition
b. Special civil action for mandamus
183
What are other terms synonymous with the diligence of a good father of a family?
Ordinary diligence or diligence of a reasonably prudent person
184
As a general rule, what is the legal interest rate for ordinary obligations to pay a sum of money?
a. 12%
b. 6%
c. 10%
d. 12% before July 1, 2013 but 6% ON OR AFTER JULY 1, 2013
d. 12% before July 1, 2013 but 6% ON OR AFTER JULY 1, 2013 UNDER USURY LAW
185
What is the general rule concerning rights acquired by virtue of an obligation as to transmissibility?
The general rule is that SUBJECT TO PROVISIONS OF LAW, THEY ARE TRANSMISSIBLE UNLESS THERE IS A STIPULATION TO THE CONTRARY.
186
X sells a piece of land to A on Jan 1, 2020 subject to a suspensive condition. On Oct 4, 2020 X sells the land unconditionally to B. The suspensive condition on contract of sale of land to A happens on Dec 25, 2020. Who shall have the better right assuming there is neither registration nor delivery of possession to either A or B?
a. B because the condition was unconditional
b. B because his title is older being dated Oct 4
c. A, because his title retroacts on January 1
d. A because he is the first buyer
c. A, because his title retroacts on January 1
Order of priority:
1. First registrant in good faith
2. First possessor in good faith
3. OLDEST TITLE
187
In conditional reciprocal obligations to GIVE, what is the treatment of the fruits and interest during the pendency of the condition?
a. They shall inure to the benefit of the creditor
b. They shall inure to the benefit of the debtor
c. They shall be deemed to have been mutually compensated.
d. They shall be forfeited in favor of the government
c. They shall be deemed to have been mutually compensated.
188
During the pendency of a SUSPENSIVE CONDITION, the debtor paid by mistake a sum of money. What is the remedy of the debtor before the fulfillment of the condition?
a. Debtor can recover the money and interest even if the creditor acted in good faith
b. Debtor can recover the money but with interest only if the creditor acted in bad faith.
c. Debtor can recover the money without interest even if the creditor acted in bad faith
d. The debtor can only recover the money without interest if the creditor acted in good faith
b. Debtor can recover the money but with interest only if the creditor acted in bad faith.
COMPARE WITH NEXT NUMBER
189
During the pendency of a SUSPENSIVE PERIOD, the debtor paid by mistake a sum of money. What is the remedy of the debtor before the fulfillment of the condition?
a. Debtor can recover the money and interest whether the creditor was in bad or good faith.
b. Debtor can recover the money but with interest only if the creditor acted in bad faith.
c. Debtor can recover the money without interest even if the creditor acted in bad faith
d. The debtor can only recover the money without interest if the creditor acted in good faith
a. Debtor can recover the money and interest whether the creditor was in bad or good faith.
Payment by mistake subject to:
Suspensive condition - money plus INTEREST ONLY IF CREDITOR ACTED IN BAD FAITH.
Suspensive period - money plus INTEREST WHETHER OR NOT CREDITOR WAS IN BAD OR GOOD FAITH
190
During the pendency of the suspensive condition, the debtor has delivered a determinate thing by mistake. What is the remedy of the debtor?
a. Accion of indemnification
b. Accion reinvidicatoria
c. Accion publiciana
d. Accion possessoria
b. Accion reinvidicatoria
b. Accion reinvidicatoria - action to recover ownership and possession
c. Accion publiciana - plenary action to recover the RIGHT of possession
d. Accion possessoria - no definition
191
T or F
When the obligation is subject to a resolutory condition or period, the rule as regards to the fruits and interest of the thing is that the fruits shall be returned by the person making restitution WITH DEDUCTION FOR THE EXPENSES FOR THE PRODUCTION, GATHERING AND PRESERVATION OF THE FRUITS.
True.
192
In a facultative obligation, who shall have the right of choice?
Always the debtor.
193
What is the remedy of the debtor if through the creditor's acts the debtor cannot make a choice according to the terms of alternative obligation?
a. File an action for indemnification
b. Rescind the contract with damages
c. Ask for the fulfillment of obligation with damages
d. Compel creditor to perform the prestation
b. Rescind the contract with damages
194
T or F
| An indivisible obligation is always solidary
False
195
The following are defenses that may be availed of by the solitary debtor in actions filed by the creditor, EXCEPT
a. Defenses inherent from the nature of the obligation
b. Defenses personal to defendant
c. Defenses personal to other debtors as regards that part of the debt for which the latter is responsible
d. Defenses personal to other debtors for the whole obligation
D. Defenses personal to other debtors for the whole obligation
a. Defenses inherent from the nature of the obligation - I will not pay because the obligation is void
b. Defenses personal to the defendant - I will not pay because I am a minor
c. Defenses personal to other debtors as regards that part of the debt for which the latter is responsible - I will not pay his share because he is a minor (refer to card 155)
d. Defenses personal to other debtors for the whole obligation
196
Give the prescriptive period for civil actions based on the following:
1. Oral contract
2. Written contract
3. Quasi-delict
4. Tort
5. Quasi-contract
6. Law/judgment of courts
7. Oral defamation/forcible entry
8. Recovery of movable property
9. Real action for recovery of immovable
10. Other actions not provided for by Civil Code or Special Laws
1. Oral contract - 6 YEARS
2. Written contract - 10 YEARS
3. Quasi-delict - 4 YEARS
4. Tort - 4 YEARS
5. Quasi-contract - 6 YEARS
6. Law/judgment of courts - 10 YEARS
7. Oral defamation/forcible entry/unlawful detainer - 1 YEAR
8. Recovery of movable property - 8 YEARS
9. Real action for recovery of immovable - 30 YEARS
10. Other actions not provided for by Civil Code or Special Laws - 5 YEARS
197
Who shall shoulder the extra-judicial expenses required by payment of obligation?
Debtor
198
The following are special forms of payment except
a. Dation in payment
b. Application of payments
c. Payment by cession
d. Tender of payment and consignation
B. Application of payments
Note all are special forms, but B is the answer.
199
Who has the right of application of payment?
a. Debtor
b. Creditor
c. Both
d. Neither
A.
200
What are the rules in application of payment in case the debtor does not exercise his right to application of payment?
1. If the debt produces interest, payment shall be made on the interest first before the principal
2. When the payment cannot be applied in accordance with preceding rules, or if the application cannot be inferred, the debt which is most onerous or burdensome to the debtor among those due shall be deemed to have been satisfied
3. If the debts are of the same nature and burden, the payment shall be applied to all of them proportionately.
201
T or F
Generally, the SHORTENING of the term of a contract results to an IMPLIED NOVATION especially if there is a significant shortening of term of contract which is the principal condition of the contract.
True.
202
T or F
| Generally, the EXTENSION of the term of a contract results to an IMPLIED NOVATION.
False, unless the change will show that the new contract is clearly incompatible with the old contract so that both contracts cannot exist together.
203
What is estoppel in pais?
It means a person is considered in estoppel if by his conduct, representations, or admissions or silence when he ought to speak out, whether intentionally or through culpable negligence, causes another to believe certain facts to exist and such other rightfully relies and acts on such belief, as a consequence of which he would be prejudiced if the former is permitted to deny the existence of such facts.
204
What is estoppel by deeds?
It occurs when a party to a deed and his privies are precluded from denying any material fact stated in the said deed as against the other party and his privies
205
What is estoppel by laches?
It is considered an equitable estoppel wherein a person who failed or neglected to assert a right for an unreasonable and unexplained length of time is presumed to have abandoned or otherwise declined to assert such right and cannot later on seek to enforce the same to the prejudice of the other party, who has no notice or knowledge that the former would assert such rights and whose conditions has so changed that the latter cannot, without injury or prejudice, be restored to his former state.
206
What composes the civil liability for crimes committed?
1. Restitution
2. Reparation of damages
3. Indemnification for consequential damages.
207
What is a simple loan or mutuum?
It is a contract whereby one of the parties delivers to another money or other consumable thing upon the condition that the same amount of the same kind and quality shall be paid.
208
What is usufruct?
It is the right to enjoy the use and fruits of a thing belonging to another
209
T or F
| The indivisibility of an obligation makes it a solitary obligation.
False
Art 1210: The indivisibility of an obligation does not necessarily give rise to solidarity, nor does solidarity imply indivisibility.
