Obligation- Juridical necessity to give, to do or not 2. Generic---a. Performance, b. Damages c.

to do Obligation be complied at debtor’s expense

4 ELEMENTS OF OBLIGATION Creditor's rights if debtor does in contravention

1. ACTIVE SUBJECT (creditor/obligee) - whose 1. Damages

obligation is constituted 2. Ask it be UNDONE at debtor's expense
2. PASSIVE SUBJECT (debtor/obligor) - has duty to
give, to do or not to do Fortuitous Event-cannot be foreseen, if foreseen,
3. OBJECT/PRESTATION - subject matter inevitable
4. JURIDICAL/LEGAL TIE (vinculum/efficient cause) -
General Rule: No person liable to a fortuitous
reason
event.
CIVIL OBLIGATION -derived from positive law
Exceptions:
-enforceable by court action
1. Law states
NATURAL OBLIGATION-derived from equity & 2. Stipulation/contract states
justice 3. Assumption of risk
-not enforceable by court action 4. Delay
5. Debtor promises deliver to 2/more persons who
5 SOURCES OF OBLIGATION do not have same interest (bad faith)

1. LAW EFFECTS OF FORTUITOUS EVENT to thing to

2. CONTRACTS be delivered- extinguish the obligation if
3. QUASI-CONTRACTS determinate; generic does not extinguish the
4. QUASI-DELICT/TORTS/CULPA AQUILIANA obligation
5. CRIMES/ACTS/OMISSIONS punished by law
3 MISCELLANEOUS RULES ON PERFORMANCE
QUASI-CONTRACTS-arise from lawful, voluntary OF OBLIGATION
acts; no one shall be unjustly enriched...
1. When to deliver determinate, accessions
2 kinds of quasi-contracts a. Solutio indebiti (additions/ improvements) and accessories
b. Negotiorum gestio (joined/included with the principal) are INCLUDED
even not mentioned.
Solutio indebiti- delivered by mistake 2. If the debtor fails to do, it shall be DONE AT HIS
EXPENSE, same with doing the contravention;
Negotiorum gestio- voluntary management poorly done be undone.
3. In obligation not to do, and obligor does what is
QUASI-DELICT/TORTS/CULPA AQUILIANA
forbidden, shall be UNDONE AT HIS EXPENSE.
arise from damage; fault/negligence
4 GROUNDS; debtor liable for damages
CRIMES/ACTS/OMISSIONS punished by law arise
1. Default/mora
from civil liability that is a consequence of a
2. Fraud/dolo
criminal offense
3. Negligence/culpa
DILIGENCE OF A GOOD FATHER OF A FAMILY 4. Violation

- care need to be exercised by a debtor to Delay- DEFAULT/MORA

deliver/give determinate thing
3 kinds of delay
Exception: When law/stipulation of parties requires
a different standard of care (slight/extraordinary a. Mora solvendi
diligence). b. Mora accipiendi
c. Compensatio Morae
When creditor is entitled to the fruits
Mora solvendi-Delay on the part of the debtor
Rule: The creditor has personal right (right to ask
for delivery) from the time the obligation to deliver Mora accipiendi-Delay on the part of the creditor
arises.
Compensatio morae- delay of both parties in
But NO real right (right enforceable against the reciprocal obligation
whole world) until it is delivered.
CONCEPT OF DELAY
3 kinds of fruits General Rule: No demand, No delay
1. NATURAL Exceptions:
2. INDUSTRIAL 1. Law
3. CIVIL 2. Stipulation
3. Time is of the essence
Creditor's rights if debtor fails to comply w/ the
4. Demand be useless if delay
obligation
5. Reciprocal
1. Determinate ---- a. Performance, b. Damages
Effects of Delay 10 Kinds of Obligation

1. Damages 1. Pure
2. When to deliver a determinate thing, STILL 2. Conditional
LIABLE in a fortuitous event. 3. Alternative
4. Facultative
FRAUD/DOLO- deliberate or intentional evasion of 5. Joint
the normal fulfillment of an obligation 6. Solidary
7. Divisible
2 kinds of fraud 8. Indivisible
9. Obligation w/ a period
a. Dolo causante/Causal fraud
10. Obligation w/ a penal clause
b. Dolo incidente/Incidental fraud
PURE OBLIGATION- Is an obligation which is not
Dolo causante/Causal fraud
subject to any condition and no specific date is
fraud in obtaining consent; consent is defective, mentioned for its fulfillment and is, therefore,
contract is voidable. Remedy: annulment immediately demandable.

Dolo incidente/Incidental fraud CONDITIONAL OBLIGATION- there is condition in

performance; future & uncertain
fraud w/c vitiates consent. Remedy: damages
2 Kinds condition
NEGLIGENCE/CULPA- voluntary act/omission; no
bad faith intended a. Suspensive condition- happening of condition
gives RISE to obligation
3 kinds of negligence b. Resolutory condition- happening of condition
EXTINGUISHES obligation
a. Culpa aquiliana/Civil negligence
b. Culpa contractual/Contractual negligence MISCELLANEOUS RULES ON CONDITIONAL
c. Culpa criminal/Criminal negligence OBLIGATION

Culpa Aquiliana (Civil Negligence) 1. Impossible conditions, contrary to law, shall

ANNUL obligation.
Negligence becomes a source of obligation in itself 2. The condition not to do an impossible thing is
without a pre existing contract; quasi-delict/torts considered not agreed upon.
3. The condition that happens in determinate time,
Culpa Contractual (Contractual Negligence )- EXTINGUISHES obligation.
there is a pre-existing obligation (arising from a 4. The condition that happens in INDETERMINATE
contract) and there is fault carrying out such; time, obligation only effective at arrival.
breach 5. The condition is fulfilled if DEBTOR prevents
fulfillment.
Culpa criminal (Criminal negligence)-
6. The effect of conditional obligation, once
crime/delict
fulfilled:
VIOLATION- a breach of a right, duty, or law; - to give: retroact to the day of constitution of
Contrary to the terms of obligation obligation
- has reciprocal prestations: fruits & interests be
2 RULES OF PRINCIPAL & INSTALLMENT mutually compensated
- has unilateral obligation: debtor shall give fruits &
1. Receipt of principal w/o mention of interest, interests
presumed interest is paid also.
2. Receipt of latter installment w/o mention of prior RULES in case of Loss, Improvement, or
installment, presumed prior installment is paid Deterioration of thing during the pendency of
also. condition; 1. LOST

4 SUCCESSIVE RIGHTS OF CREDITOR to a. w/ debtor's fault - damages

satisfy claim against DEBTOR b. w/o debtor's fault - extinguishes obligation

1. Exact payment RULES in case of Loss, Improvement, or

2. Attach debtor's properties Deterioration of thing during the pendency of
3. Accion subrogatoria - exercise rights & actions condition; 2. DETERIORATION
except inherent in person
4. Accion pauliana - cancel acts/contracts by a. w/ debtor's fault - (1) cancel obligation &
debtor to defraud creditor damages; or (2) fulfill obligation w/ damages
b. w/o debtor's fault - creditor suffer impairment
TRANSMISSIBILITY OF RIGHTS- General Rule: ALL
RIGHTS are transmissible. RULES in case of Loss, Improvement, or
Deterioration of thing during the pendency of
Exceptions: condition; 3. IMPROVEMENT
1. Law states
2. Contract states a. By nature/time - benefit to creditor
3. Obligation is purely personal b. at expense of debtor - debtor no right than that
granted to usufructuary (debtor no right to Therefore, NEITHER of them can demand
compensate amount for improvement) performance of obligation.

EFFECTS OF FULFILLMENT OF SUSPENSIVE Exception: If the term of obligation has to favor one
CONDITION of them.

General Rule: The obligation becomes effective CONDITION-Uncertain, Future/past but unknown,
retroactively to the day obligation was constituted. *on the very existence of obligation itself

Exceptions: INSTANCES WHEN DEBTOR LOSES RIGHT TO USE

1. In reciprocal obligation, fruits & interests during "PERIOD"
pendency of condition shall compensate each
other. 1. Debtor is insolvent.
2. In unilateral obligation, the debtor gets fruits & 2. Debtor attempts to abscond.
interests unless there is a contrary intent. 3. Impairment of guarantees/securities.
4. Failure to furnish guarantees/securities
EFFECTS OF FULFILLMENT OF RESOLUTORY promised.
CONDITION 5. Violation of undertaking.

1. Extinguish obligation. ALTERNATIVE OBLIGATION- w/ 2 or more

2. Both parties restore what they received plus prestations, only 1 is due.
fruits & interests.
3. The rule on L, D, or I will apply to a person who FACULTATIVE OBLIGATION- w/ ONLY 1
has to return the thing. prestation but can be substituted.
When one of debtors in reciprocal obligation does
Alternative obligation- ALTERNATIVE prestations
not comply w/ his obligation
LOST w/ debtor's fault
The right of injured party Creditor entitled to damages but needs ff
requisites:
(1) cancel contract & damages; or
(2) fulfill obligation & damages 1. Debtors can choose.
2. All prestations lost/become impossible due to
Kinds of Obligation (According to PERSON the debtor's fault.
OBLIGED)
Alternative obligation-several prestations due,
1. UNILATERAL giving one is sufficient. Right to choose (debtor)
2. BILATERAL unless granted to creditor
3. RECIPROCAL If 1 of the prestation is illegal, others may be valid,
obligation remains. Loss/impossibility of ALL
RECIPROCAL-both parties; performance same prestations due, w/o debtor's fault, extinguishes
time obligation

BILATERAL-both parties; performance not same Facultative Obligation-one prestation due, but
time can be substituted, Right to choose DEBTOR ONLY.
Nullity of principal carries w/ it nullity of accessory/
UNILATERAL-only 1 party obliged to comply Substitute. loss/impossibility of prestation due, w/o
debtor's fault, extinguishes obligation
OBLIGATION W/ A PERIOD- demandability/
extinguishment subject to the expiration of period SUMMARY OF RULES, OBLIGATIONS, &
RIGHTS OF DEBTOR IN ALTERNATIVE
PERIOD- interval of time; either suspends
OBLIGATION
demandability or produces extinguishment
1. If 1 of prestations lost through fortuitous event,
DAY CERTAIN-must come, not known when
shall still be performed by choosing (creditor) from
CASES CONSIDERED TO BE "OBLIGATION W/ A the remainder.
PERIOD" 2. If 1 of prestations lost through debtor's fault,
creditor may claim any of remainders w/ damages.
1. Little by little 3. If ALL prestations are lost through debtor's fault,
2. In partial payment the creditor chooses price w/ damages.
3. Payable ASAP
4. When I can afford it RULES on LOSS/DETERIORATION of the thing
5. When I have the money intended as SUBSTITUTE in FACULTATIVE
6. When I am able to OBLIGATION
7. When my means permit me to do so
1. If there is a loss/deterioration of a thing intended
PERIOD- Certain-, Future only, *influence upon as a substitute, the debtor is NOT liable if NOT HIS
obligation, only upon its demandability FAULT.
But if substitution is already made, the debtor is
FOR WHOSE BENEFIT IS THE PERIOD? liable for loss of substitute when in DELAY,
NEGLIGENCE, or FRAUD.
General Rule: Both the debtor & creditor.
joint obligation- obligation is to be paid 7. Annulment
proportionately by debtors or to be demanded 8. Rescission
proportionately by creditors 9. Resolutory condition
10. Resolutory period
JOINT Obligation- "To each his own", 11. Prescription
proportionate
CAUSES OF EXTINGUISHMENT OF OBLIGATION
Solidary Obligation- one where each one of the
debtors is bound to render, and/or each one of the - death of party in case of personal obligation
creditors has a right to demand from any of the - Impossibility of performance
debtors, entire compliance with the prestation - Compromise/Settlement
, "One for all, all for one" - Happening of fortuitous event
, individually & collectively - Arrival of resolutory period
- Mutual desistance
SOLIDARY OBLIGATION EXIST ONLY IF:
PAYMENT/PERFORMANCE-Payment means
*RULES delivery of money & performance of obligation
1. Law states
2. Stipulation states PLACE OF PAYMENT
3. Nature of obligation requires
1. At place agreed upon
PRESUMPTIONS THAT OBLIGATION IS JOINT 2. If w/o agreement
a. Object is indeterminate - paid at domicile of
1. The debts are divided as many shares as there DEBTOR
are debtors/creditors. b. Object is determinate - place of thing at the time
2. The debtors/creditors are distinct from one of constitution of obligation
another.
SPECIAL MODES OF PAYMENT
DIVISIBLE OBLIGATION- prestation is capable of
partial performance a. Application of payment
b. Cession
INDIVISIBLE OBLIGATION- prestation incapable c. Tender of payment & consignation
of partial performance d. Dation in payment

OBLIGATION W/ A PENAL CLAUSE- one w/ Application of payments-designation of debt to

accessory undertaking attached to obligation to w/c payment must be applied when the debtor has
assume greater liability in case of breach/non- several obligations of the same kind in favor of the
fulfillment of obligation same creditor.

PURPOSES OF PENAL CLAUSE REQUISITES OF APPLICATION OF PAYMENT

1. Ensure performance of obligation 1. Only 1 debtor & 1 creditor

2. Substitute for damages & interest in case of 2. 2 or more debts, same kind
noncompli-ance 3. All debts are due
3. Penalize debtor in case of breach 4. Insufficient payment to extinguish ALL debts

In case obligation has a PENAL CLAUSE RIGHTS TO MAKE APPLICATION OF PAYMENT

General Rule: Penalty takes the place of damages 1. Right belongs to the CREDITOR.
& interest in case of non-compliance. 2. If the debtor does not avail, the creditor can give
him a receipt designating the debt from which
Exceptions: payment will be applied.
1. Stipulation states. 3. If the debtor accepts the receipt, he cannot
2. Debtors refuse to pay penalty. complain unless THERE IS just cause to invalidate
3. Debtor guilty of fraud in performance of the contract.
obligation.
CESSION - debtor abandons ALL his property for
NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL creditor's benefit to obtain payment from proceeds
CLAUSE of his property, all properties, require more than 1
creditor, NOT act of novation, NOT transfer
Nullity of principal obligation = nullity of penal ownership, requires partial/total insol-vency
clause
Nullity of penal clause = NOT nullity of principal REQUISITES OF VALID CESSION
obligation
1. 1 debtor & 2 or more creditors
EXTINGUISHMENT OF OBLIGATIONS 2. Debtor is in partial/total insolvency.
3. Debtor to deliver ALL his property to creditors
1. Payment or performance 4. Debt is due & demandable.
2. Loss of thing due 5. Creditors must sell the properties & apply the
3. Remission/Condonation proceeds to their respective credits
4. Merger/Confusion proportionately.
5. Compensation
6. Novation
DATION IN PAYMENT (dacion en pago)- 2. Take place between principal debtor & creditor.
alienation of property to the creditor in satisfaction 3. Clear & definite.
of debt, NOT all properties, NOT require all
creditors, act of novation, transfer ownership, may COMPENSATION-2 persons are debtors &
happen during solvency of debtor creditors of each other

REQUISITES OF DATION IN PAYMENT ESSENTIAL REQUISITES OF COMPENSATION

1. Consent of creditor 1. Parties both principal debtors & creditors of each

2. NOT prejudicial to another creditor other.
3. Debtor not insolvent declared by a judicial 2. Compensation is not prohibited by law.
decree 3. No retention/controversy by 3rd person.
4. 2 debts are due & demandable.
TENDER OF PAYMENT-act of offering the creditor 5. 2 debts are liquidated.
what is due to him w/ a demand that the creditor 6. 2 debts both in money/consumable things.
accept it
Classes of Compensation
CONSIGNATION-act of depositing thing due w/
the court when creditor cannot/refuses acceptance 1. As to effect
of payment
a. TOTAL – obligations completely extinguished.
REQUISITES OF CONSIGNATION
b. PARTIAL – a balance remains
1. Debt due.
2. As to origin or cause
2. Creditor refused the tender of payment w/o just
cause a. LEGAL – by law
3. Notice of consignation already given to persons
interested in fulfillment of obligation b. VOLUNTARY/CONVENTIONAL – agreement of
4. Consignation of thing/amount due parties
5. Subsequent notice of consignation to interested
persons c. JUDICIAL – order from the court

VALID CONSIGNATION W/O PREVIOUS TENDER OF d. FACULTATIVE – 1 of parties can choose/oppose

PAYMENT claiming compensation

1. Creditor is absent/unknown. NOVATION-The substitution, by agreement, of a

2. Creditor is incapacitate to receive at time it is new contract for an old one, with the rights under
due. the old one being terminated.
3. Creditor refused to give a receipt, w/o just
cause. - substitution/change of obligation
4. 2 or more persons claim the right to collect. - substitution of debtor
5. Title of obligation lost. - subrogation of creditor

LOSS OF THING DUE- perishes, disappears, or OBLIGATIONS MAY BE MODIFIED BY:

goes out of commerce; existence is unknown;
cannot be recovered 1. Changing object/principal conditions. (REAL
NOVATION)
2. Changing the person of the debtor/creditor.
(PERSONAL NOVATION)
REQUISITES TO EXTINGUISH OBLIGATION DUE TO a. Substitution - change of debtor
LOSS b. Subrogation - change of creditor
3. Changing person of the parties & the objects of
1. Determinate thing. principal condition. (MIXED NOVATION)
2. W/o debtor's fault.
3. No delay. 4 REQUISITES OF NOVATION

CONDONATION/REMISSION - gratuitous 1. Old valid obligation.

abandonment of right by the creditor 2. Agreement of parties to new obligation.
3. Extinguishment of old obligation.
REQUISITES OF A VALID CONDONATION/REMISSION 4. Validity of new obligation.
1. It must be gratuitous. FORMS OF NOVATION BY SUBSTITUTION OF
2. Accepted by obligor. DEBTOR
3. Obligation is demandable.
1. EXPROMISION
CONFUSION/MERGER- meeting in 1 person of 2. DELEGACION
qualities of debtor & creditor w/ same obligation
DELEGACION
REQUISITES OF VALID CONFUSION/MERGER
all must agree (creditor, old debtor, new debtor)
1. The merger of characters of debtor & creditor
must be in the same person. EXPROMISION
w/ consent of creditor, NO consent of old debtor APPLICATION OF ARTIFICIAL INTELLIGENCE

EXPROMISION REQUISITES  Natural language processing (NLP): NLP

allows computers to understand and
a. Initiative of 3rd person. generate human language. This technology
b. Consent of the creditor. is used in a variety of applications, such as
machine translation, spam filtering, and
DELEGACION REQUISITES sentiment analysis.

a. Initiative from old debtor.  Computer vision: Computer vision allows

b. Consent of debtor. computers to identify and interpret visual
c. Acceptance by creditor. content. This technology is used in a variety
of applications, such as self-driving cars,
SUBROGATION facial recognition, and object detection.

change of creditor  Machine learning (ML): ML allows computers

to learn from data and improve their
KINDS OF SUBROGATION performance over time. This technology is
used in a variety of applications, such as
1. CONVENTIONAL - consent of original predictive analytics, fraud detection, and
parties & 3rd person recommendation systems.
2. LEGAL - by law
a. creditor pays another preferred creditor  Robotics: Robotics is the branch of AI that
even w/o debtor's knowledge deals with the design, construction, and
b. 3rd person pays the express approval operation of robots. Robots are used in a
variety of applications, such as
of debtor
manufacturing, healthcare, and space
c. 3rd person pays even w/o knowledge of
exploration.
debtor
AL IN-BUSINESS INTELLIGENCE

AI is playing an increasingly important role in

business intelligence (BI). AI-powered BI tools can
help businesses collect, analyze, and visualize
data more efficiently and effectively. This can
lead to improved decision-making, increased
productivity, and reduced costs.

- Some of the ways that AI is being used in

BI include:

 Data collection: Collecting data from a

variety of sources, including structured data
and unstructured data.

 Data analysis: To analyze data and identify

patterns, trends, and relationships

 Data visualization: AI can help create

visualizations that make it easier to
understand data

 Decision-making: Insights and

recommendations generated by AI models
can help drive data-driven decision-making
for businesses

ARTIFICIAL INTELLIGENCE HEALTHCARE

 Artificial intelligence is a specialty within  Disease diagnosis: AI can be used to analyze

computer science that is concerned with patient data and identify patterns that may
creating systems that can replicate human indicate a disease. This can help doctors
intelligence and problem-solving abilities. diagnose diseases earlier and more
accurately.
 In ancient times, inventors made things
called “automatons” which were mechanical  Treatment development: By analyzing large
and moved independently of human datasets of patient data, AI can identify new
intervention. patterns and relationships that can be used
to develop new drugs and therapies.
 The word “automaton” comes from ancient
Greek, and means “acting of one’s own will.”  Personalized care: By analyzing a patient's
data, AI can help doctors develop treatment
 One of the earliest records of an automaton plans that are tailored to the patient's
comes from 400 BCE and refers to a specific needs.
mechanical pigeon created by a friend of the
philosopher Plato. EDUCATION
 Personalized learning: AI can be used to
create personalized learning experiences for
students. By tracking each student's
progress, AI can identify areas where the
student needs additional support and
provide targeted instruction.

 Improved student engagement: AI can be

used to improve student engagement by
providing interactive and engaging learning
experiences. For example, AI-powered
applications can provide students with real-
time feedback and support.

 Automated administrative tasks:

Administrative tasks, such as grading papers
and scheduling classes can be assisted by AI
models, which will help free up teachers'
time to focus on teaching.

AGRICULTURE

 Crop yield improvement: Analyzing data on

soil conditions, weather patterns, and crop
growth with AI models and tools could help
to develop strategies that can improve crop
yields

 Cost reduction: Automating tasks with AI,

such as harvesting and irrigation, which can
reduce labor costs

 Environmental protection: Monitoring and

managing natural resources, such as water
and soil

MANUFACTURING

 Improved efficiency: Automating tasks, such

as assembly and inspection

 Increased productivity: Optimizing

production processes

 Improved quality: AI can be used to detect

defects and improve quality control

ADDITIONAL AL APPLICATIONS

 Finance: AI is being used to detect fraud,

manage risk, and make investment decisions

 Retail: AI is being used to personalize the

shopping experience, recommend products,
and manage inventory

 Transportation: AI is being used to develop

self-driving cars and improve traffic
management

 Energy: AI is being used to improve energy

efficiency and predict energy demand

 Government: AI is being used to improve

public safety, detect crime, and provide
citizen services