1.

What is obligations
Obligation Is the juridical necessity to give, to do or not to do
2. What are the elements
a. Juridical tie – the efficient cause of the obligation
b. Active subject
c. Passive subject
d. Object or the prestation – the subject matter of the prestation or the performance of obligation
3. Sources of Obligation
a. Law - it is not presumed and directly express by a law creating the obligation
b. Contracts - Obligations arising from contracts have the force of law between the parties and
should be complied with in good faith
c. Quasi Contract - A juridical relation arising from lawful, voluntary, and unilateral acts based on
the principle that no one shall be unjustly enriched or benefited at the expense of another
d. Delict - Art. 100 of the RPC provides: “Every person criminally liable for a felony is also civilly
liable.”
e. Quasi Delict - An act or omission arising from fault or negligence which causes damage to
another, there being no pre-existing contractual relations between the parties
4. Kinds of Breach
a. Default (mora) – There is delay when the creditor demands for the fulfillment of the obligation
and the debtor incur delay.
i. Mora solvendi – on the part of the debtor
ii. Mora accipiendi – on the part of the creditor
iii. Compensation morae – both default on the part of the creditor and debtor
b. Fraud - it is the intentional evasion of faithful performance of the obligation.
c. Negligence (culpa) – consist of the omission of the proper diligence required by nature of
obligation and corresponds with the circumstances of the person, of the time, and the place
i. Culpa contractual (contractual negligence) - Negligence which results from the breach of
contract;
ii. Culpa aquiliana (civil negligence or tort or quasi-delict) Acts or omissions that cause
damage to another, there being no contractual relation between the parties (NCC, Art.
2176); and
iii. Culpa criminal (criminal negligence) – Those which results in the commission of a crime
or a delict.
d. Breach through contravention of the tenor thereof
5. What is fortuitous event? - An occurrence or happening which could not be foreseen, or even if
foreseen, is inevitable
a. Cause of breach is independent of the will of the debtor;
b. The Event is unforeseeable or unavoidable;
c. Occurrence renders it absolutely impossible for the debtor to fulfill his obligation in a normal
manner - impossibility must be absolute not partial, otherwise not force majeure; and
d. Debtor is free from any participation in the aggravation of the injury to the creditor.
6. What are the XPN of fortuitous events
a. Law;
b. Nature of the obligation requires the assumption of risk;
c. Stipulation;
d. The debtor is guilty of dolo, malice or bad faith, has Promised the same thing to two or more
persons who does not have the same interest (NCC, Art. 1165);
e. The debtor Contributed to the loss (Tan v. Inchausti & Co., G.R. No. 6092, March 8, 1912);
f. The possessor is in Bad faith (NCC, Art. 552); or
g. The obligor is Guilty of fraud, negligence or delay or if he contravened the tenor of the obligation
7. Judicial Remedies
a. Specific performance, or substituted performance by a third person in case of an obligation to
deliver a generic thing, and in obligations to do, unless it is a purely personal act;
b. Rescission (or resolution in reciprocal obligations);
 c. Damages, in any case; or
d. Subsidiary remedies of creditors:
i. Accion subrogatoria - An action whereby the creditor, whose claim has not been fully
satisfied, may go after the defendant debtor’s debtor
ii. Accion pauliana - An action where the creditor files in court for the rescission of acts or
contracts entered into by the debtor designed to defraud the former
iii. Accion directa - The right of a person to go directly against another who is not a privy to
the contract
8. Extra-Judicial Remedies
a. When the law expressly grants such remedies such as in the case of the rights of an unpaid seller
of personal property.
b. When the right is reserved by a party in an agreement
9. What is the difference of Pure Obligation v Conditional Obligation
a. The former does not depend upon the condition/period
b. The latter is the effect of future and uncertain or past events unknown to parties
10. Postestative, Casual, Mixed
a. Potestative depends on the will of the debtor
b. Casual depends on the chance or will of the third party
c. Mixed – partly potestative and casual
11. Suspensive condition v. Resolutory
a. While the condition has not arrived yet, in the meantime, the rights and obligations of the
parties are suspended. The happening of the obligation gives birth to the obligation.
b. The obligation is demandable at once and uncertain event extinguishes the obligation.
12. Cumulative, Alternative and Facultative
a. Cumulative – You must deliver all the prestations in order for the completion of the obligations
b. Alternative - It is an obligation where the debtor is alternatively bound by different prestations
but the complete performance of one is sufficient to extinguish the obligation
c. Facultative - It is an obligation where the debtor, who has a reserved right to choose another
prestation or thing, is bound to perform one of the several prestations due or to deliver a thing
as a substitute for the principal.
13. What are Impossible conditions
a. Those that are contrary to laws, goods customs, public policy.
b. Those divisible obligation that part thereof which are not affected by impossible condition are
valid
14. What is Joint and Solidary,
a. Joint obligations -- One where 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 (NCC, Art. 1208)
b. Solidary obligations --It is where each of the debtors obliges to pay the entire obligation, while
each one of the creditors has the right to demand from any of the debtors, the payment or
fulfillment of the entire obligation
15. Indivisible v Divisible Obligation
a. Is when the object or service which is the subject matter of the prestation is not susceptible of
partial compliance because of nature, as provided by law, and it is intended by the party
b. Those which have as their object a prestation which is susceptible of partial performance with
the essence of the obligation being changed.
16. What is a contract
a. A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to
give something or to render some service
17. What are the characteristics of a contract?
a. Autonomy (NCC, Art. 1306);
It is the freedom of the parties to contract and to stipulate provided the stipulations are not
contrary to law, morals, good customs, public order or public policy
b. Mutuality (NCC, Art. 1308);
The contract must bind both contracting parties and its validity or compliance cannot be left to
the will of one of them
c. Obligatoriness and consensuality (NCC, Art. 1315);
Contracts shall be obligatory, in whatever form they may have been entered into, provided all
the essential requisites for validity are present
d. Relativity (NCC, Art. 1311)
GN: Contracts take effect only between the parties or their assigns and heirs.
XPN:
1. Rights and obligations that are not transmissible by their nature, or by the stipulation or
by provisions of law
2. Stipulation pour autrui (stipulation in favor of a third person) – benefits clearly and
deliberately conferred by parties to a contract upon third persons (NCC, Art. 1311) and
which stipulation is merely part of a contract entered into by the parties, neither of
whom acted as agents of the third person and which favor can be demanded by the third
person if duly accepted by him before it could be revoked
18. What are modes of extinguishment of obligation
a. Payment – the payment is the fulfillment of the obligation by the realization of purposes for
which it was constituted
b. Condonation – renounces the enforcement of obligation
c. Compensation – a mode of extinguishing an obligation by two persons in which they are both
debtors and creditors to each other. A rule of offsetting is initiated to extinguish their concurrent
obligation
d. Confusion or merger – when the characters of debtors and creditors are merged in the same
person.
e. Loss of thing -
f. Novation - It is the substitution or change of an obligation by another, resulting in its
extinguishment or modification, either by changing the object or principal conditions, or by
substituting another in the place of the debtor or by subrogating a third person to the rights of
the creditor
19. Types of Payments
a. Dacion En Pago – delivery or transmission of the ownership of a thing by the debtor which is the
equivalent accepted payment of the obligation
b. Application of Payments – Designation of the debt to which the payments must be applied when
the debtor have several obligation of the same kind in favor of the same creditor
c. Consignation – an act depositing the object of the obligation to competent court of authority
after the creditor unjustifiably denied the acceptance of payment
d. Payment in Cession – Abandonment of universality of properties for the benefit of the creditor in
order for such properties may be applied as payment to credit
e. Tender of payment – voluntary act of the debtor whereby he offers a immediate payment of
obligation or performance of obligation.
f. Payment in Negotiable instrument – must be encashed or impaired in the fault of the creditor