Obligations and Contracts: Module 1 

Article 1156 of the Civil Code of the Philippines,

- New Civil Code of the Philippines
- mga batas na nagsasaad kung pano makitungo sa bawat isa
- took effect on August 30,1950

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

- juridical necessity​: maari kang i-demand sa korte kung hindi mo na-comply yung naipangako
mong gagawin mo sa ibang tao

● A civil obligation is enforceable by court action unlike natural obligations.

Natural obligations​ are civil obligations but because of the long passage of time, your rights about that
subject matter “expire” or be prescribed.

Example of ​prescriptive period​:

- obligations arising from a written contract

Under the Law, ​10 years​ lang bago mag prescribed yung rights mo.
● example: ikaw ay nagpautang, at yung utang na yon ay nasa written contract, sabi sa batas sa loob
ng 10 years you need to do things and exert effort such as give a demand letter for you to collect
yung mga utang sayo. After 10 years nag-eexpire or nag-prescribe na ang karapatan mong
makakolekta
● May civil obligation ka at yung nangutang sayo sa loob ng 10 years
● After 10 years kung wala kang ginawang paniningil ng utang, yung ​civil obligation mo magiging
natural obligation na lang
○ May obligation pa rin siyang magbayad sayo pero hindi mo na siya pwedeng kasuhan
○ Voluntarily na lang yung pagbabayad niya sayo since nagprescribed na yung katapatan
mo, hindi mo na siya pwedeng takutin na dadalhin sa korte
● Question: Yung mga utang ba na nag prescribed na pwede pa rin bayaran?
○ YES​ especially if the payor is voluntarily paying even after the prescriptive period
● Question: What if after ng bayaran bigla siyang nagipit and kailangan na niya ulit yung pera?
Pwede niya ba bang bawiin sayo yung binayad niya na sayo dati para sa isang nagprescribed na
utang?
○ NO ​hindi na pwedeng bawiin. The amount paid sa isang natural obligation na lamang ay
hindi na pwede ma-recover kasi it’s considered a valid payment.
○ The manner of paying is an admission on the part of the debtor na may kailangan pa
siyang bayaran na utang. Kahit nagprescribed or nag-expire na, in-acknowledge pa rin
niya na may utang pa siya and bawal na bawiin yung binayad nya.

Requisites/ Elements of an obligation:

a. Active subject (creditor or obligee)​ - the party who has the right to demand performance of the
obligation
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○ Sa oras ng singilan, siya yung mas may gustong may push through yung event kaya
active subject
b. Passive Subject (debtor or obligor)​ - the party who is required to perform the obligation
○ Ang mga may utang usually tahimik lang hangga’t hindi ka pa sinisingil or hindi agad
mag-volunteer kasi ikaw yung mawawalan ng pera. Tahimik: passive
c. Prestation (object or subject matter)​ - it may consist of giving, doing, or not doing something.
○ ito yung kailangang gawin
d. Efficient cause (vinculum juris or juridical tie)​ - that which binds the parties of an obligation
○ Reason why need gawin ni passive subject yung obligation niya kay active subject

Illustration:
Through a contract of loan, Diego borrowed P1,000,000 from Cardo a year ago. On the maturity date,
who/what is the active subject, passive subjective, prestation and the efficient cause?
● Active subject: Cardo
● Passive subject: Diego
● Prestation: the giving of P1,000,000
● Efficient cause: contract of loan

Forms of an obligation:
a. Oral
b. In writing
c. Partly oral and partly in writing

Kinds of obligation according to the subject matter

a. Real Obligations
○ latin word “​res​”- object
○ Real obligations is the giving of an object
○ represents to give
○ Example: magbigay ka, magdeliver ka ng cellphone
b. Personal Obligations
1. Positive personal obligation
■ represents to do
■ Gumawa ng bahay, kumanta sa concert
2. Negative personal obligation
■ represents not to do
■ Huwag mong gawin yung bagay na yon
■ Huwag mong harangan yung daanan ng kapitbahay (right of way)

Sources of Obligation:
Article 1157. ​Obligations arise from:
1. Law
○ It is a rule of conduct, just and obligatory, laid down by legitimate authority for common
observance and benefit.
Obligations and Contracts: Module 1 

○ Article 1158
- Obligations derived from law are ​not presumed​. Only those expressly determined
in this Code or in special laws are demandable, and shall be regulated by the
precepts of the law which established them; and as to what has not been foreseen,
by the provisions of this Book.
- not presumed: dapat may actual or specific law bago mo masabi na may
obligation ang tao
- Example: Tax Laws or Train Law - obligation to pay taxes
- Family Code of the Philippines: obligations of family members to each other
- Obligation ng mga magulang na alagaan ang mga anak lalo na ang mga
menor de edad kasama na dito ang pagbigay ng sustento
- Civil obligation and criminal liability ang hindi pagbibigay ng sustento
2. Contracts
○ It is the meeting of the minds between two or more persons or more persons whereby one
binds himself with respect to the other to give something or to render some service.
○ At any time that there is a meeting of the minds or si buyer at seller magkapareho sila ng
pananaw or they came into an agreement, meron na silang contract
○ Article 1159
- Obligations arising from contracts have the force of law between the contracting
parties and should be compiled with in good faith.
- Once may contract, such as contract of sale, may force of law. Para sa inyo
(buyer and seller), yon ang batas and kung anoman ang nailagay sa contract as
long as it is not contrary to law, public morals, policy and good customs pwede
mag-stipulate (demand or specify) kung ano gusto niyong ilagay na provisions sa
contract.
3. Quasi-Contracts
○ They refer to certain lawful, voluntary and ​unilateral​ acts giving rise to a juridical relation
to the end that no one shall be unjustly enriched at the expense of another.
○ “Parang contract” hindi siya full-pledged contract because of “unilateral” - isa lang ang
nag decide to push through unlike sa regular contract na bilateral
○ The two most common examples are:
■ Negotiorum gestio
- This refers to the voluntary administration of the property, business or
affairs of another ​without his consent or authority​. There is now an
obligation to reimburse the gestor for the necessary and useful expenses.
- Example: nagpunta sa ibang bansa yung kapitbahay mo tapos biglang
nagkaroon ng calamity, and nasira yung bubong ng mga hawla ng hayop,
so there is a tendency na makatakas sila. Bilang mabuting kapitbahay, on
your own initiative, pinaayos mo yung hawla ng hayop
- Ikaw lang, unilaterally, ang nagdecide
- Upon returning of your neighbor, may obligation na siya to
reimburse yung mga ginastos mo even though initially he didn’t
give any approval
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- Question: what if sinabi ng kapitbahay mo na bakit mo pinaayos,

sino nagbigay ng consent? ​ANG BATAS MISMO ANG
NAGSABI OR NAGBIGAY NG CONSENT.
- Ang point of view ng batas is if yung may-ari ang nasa bahay
and nakikita niya na sira na ang hawla, yon din naman ang
gagawin niya. And kung may ibang tao na gumawa non para
sayo, it is your obligation to reimburse.
■ Solutio indebiti
- This refers to the ​payment by mistake​ of an obligation, in excess of what
should have been paid or payment to a person not due to receive it.
- Namali ang bayad or sumobra ang bayad, may obligation tayo na ibalik
ito.
- Hindi ka pwedeng makinabang at the expense of another person.
4. Delicts
- These are acts or omissions punishable by law. This refers to ​crimes​ or felonies defined
under the law to be punishable as such.
- Revised Penal Code: laws about crimes, special penal laws
- Pinagmumulan ng obligation ang crimes kasi may criminal liability na makukulong ka at
meron ding civil liability na kailangan may babayaran ka
- A person that is criminally liable is also civilly liable​.
- Example: crime of arson (panunuyog ng bagay na pagmamay-ari ng ibang tao)
makukulong ka na at kailangan mo pa i-reimburse yung halaga ng nasunog mo
5. Quasi-Delicts
- tort or culpa aquiliana
- There are acts or omissions that cause damage to another. There being fault or negligence
but without any existing contractual relation between the parties. There is now an
obligation to pay for damages.
- “Parang crime”
- Intent​: meron sa crime wala sa quasi-delict
- Sa crime, nandon yung intention mo na makasakit
- Sa quasi-delict walang intention na makasakit pero nakasakit ka pa rin due to
negligence
- Example: nagmamaneho ka ng sasakyan pero dahil sa pagmamadali ka, nakasagasa ka
(wala kang intent pero dahil sa negligence mo nakaasksidente ka) so you have to pay for
the damages such as bill sa hospital

Nature and Effect of Obligations

Article 1163
- Every person obliged to give something is also obliged to take care of it with the proper diligence
of a good father of a family, unless the law or the stipulation of the parties requires another
standard of care.
- tulad ng isang pag-aalaga ng isang ama sa isang pamilya: gagawin mo ang lahat para hindi
mapahamak ang iyong mag-ina
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- Example: nagtitinda ka ng pets at may bumili sayo ng aso tapos iddeliver mo sa buyer
next week. Hindi porket bayad na, pababayaan mo na lang yung aso. Proper diligence of
a good father of a family implies na kailangan alagaan mo pa rin siya.
- Unless nanghihingi pa ng higher standard of care
- Example: everytime sumasakay tayo sa jeep and other public transportation, we enter a
contract of carriage.​ Under the law, it requires the kind of care na ​extraordinary
diligence​, ibig sabihin na ganon ka dapat alagaan ng mga transportation vehicles.
Pinapangako ng drivers na safe ka makakarating ka sa pupuntahan mo and if naaksidente
kayo, that is a breach of contract dahil hindi nasunod ng driver yung extraordinary
diligence
- Pagsasakay ka ng jeep at hindi ka pa nakakaupo at nasubsob ka, liable pa rin
yung driver dahil hindi niya in-exercise yung extraordinary diligence. It is a
violation to take good care of the passengers.

Determinate/specific thing vs. Generic thing

● A thing is considered to be ​determinate​ if it is particularly designated and physically
segregated from all other objects of the same class.
Example:
1. I will give you a Toyota vios with plate number ABC123. - Naging mas specific with the plate
number kasi bawat kotse ay may plate number but sya lang yung may number na ganon.
2. I will give you a house located at 54B Scout Tuazon, Quezon City. (Specific because of the
location)
3. I will give you the pen that I am holding right now. - Kahit hindi mo pangalanan, but you are
pertaining to a specific object.
● A ​generic thing​ is identified only by its species. The debtor can give anything of the same class
as long as it is of the same kind.
Example: I will give you a car. - Generic object kasi maraming uri ng kotse.

You need to identify kung ano ang determinate or specific kasi yun yung kailangan mo alagaan sa
obligation mo. Correlating sa example in the pet shop: hindi lang basta aso yung aalagaan mo, kundi si
Casper na binili mo. And if hindi i-specify like: I will give you a dog; pwedeng hindi mo alagaan ng todo
yung aso kasi kung mamatay man, matutupad mo pa rin yung pangako or obligation mo na magbigay ng
aso.
- Genus nungram perit​: genus never perishes, na kahit mamatay yung aso may iba pa
namang aso sa ibang lugar

​What are the obligations of a debtor obliged to give a determinate thing?

1. To take ​good care​ of the thing with the ​diligence of a good father of a family ​ unless
the law or agreement of the parties requires another standard of care.
2. To ​deliver the thing​.
- Ang delivery ng subject matter ang nakapagpapalit ng ownership
- Pag nadeliver na ni seller kay buyer yung subject matter, that’s the only time na nalilipat
yung ownership.
Obligations and Contracts: Module 1 

3. To ​deliver the fruits of the thing​.

a. Natural fruits​: they are the ​spontaneous​ products of the soul and the young and other
products of animals.
- tumubo na lang nang hindi na kailangan ng tulong ng tao
- anak ng hayop (puppy, cattle)
- hayop na ipinanganak na may tulong ng veterinary
- Under the law, ang mga hayop ay natural fruits
b. Industrial fruits​: they refer to those produced by land of any kind through ​cultivation or
labor.​
- kailangan ng tulong ng magsasaka bago tumubo (palay, mais, tobacco)
c. Civil fruits​: refer to fruits that are the result of a juridical relation.
- Interest income, fruit from the loan
- Rent income, from your property

Article 1164
- The creditor has a right to the fruits of the thing ​from the time the obligation to deliver it arises​.
However, he shall acquire no real right over it until the same has been delivered to him.
- In this instance, the creditor is considered a buyer or the active object
- Illustration: On August 1, Mr. A promised to give a specific dog to Mr. B. Based on their
agreement, the dog should he delivered to Mr. B on August 15. Unfortunately, the dog was
delivered on August 31. Unknown to Mr. B, the dog gave birth to 3 puppies on August 21. Who
should be entitled to the three puppies?
- Under the law, lahat ng fruits of the right kay creditor dapat from the time the obligation
to deliver it arises. So on August 15, lahat ng fruits (natural fruits) ng dog are entitled to
Mr. B kahit na nanganak sa bahay ni Mr. A.
- What if the dog gave birth on August 10? The puppies are entitled to Mr. A kasi hindi pa
dumarating yung time para i-deliver yung dog.
- If hindi napag-usapan yung date of delivery sa isang contract of sale, dapat itong
madeliver immediately. Example: if the dog gave birth the night before your supposed
delivery, the puppies are entitled na sa buyer. (Kasi immediately demandable yung
delivery kung walang napag-usapan.)

Personal right VS Real right

● Personal right​ is the right to demand from another, the fulfillment of the latter’s obligation to
give, to do or not to do.
● Real right​ is the right or interest of a person over a specific thing without a definite passive
subject against whom the right may be personally enforced. It is binding against the whole world.
Example:
Si seller may ibinentang specific dog, hanggang hindi pa naiddeliver ni seller yung specific dog kay
buyer, ang tanging meron lang si buyer mula kay seller dahil may perfected contract naman is ​personal
right​. Hanggang wala pa sa kanya yung aso, wala pa siyang karapatan don sa aso. Since personal right
lang meron siya, pwede niya kulitin si seller na ideliver na yung dog, pwede siya magdemand or ilaban
Obligations and Contracts: Module 1 

against that person​. Ang real right naman, magkakaroon ka nito pag na-deliver na yung mismong aso
sayo. Yung karapatan niya sa aso pwede niya na ilaban ​against the world world​. Ikaw na yung mismong
owner since na tanggap mo na upon delivery, kaya hindi na pwedeng kunin sayo. If ever may kumuha
nung aso sayo, pwede mo na kasuhan.
Yung personal right mo magiging real right pag na-delivery na sayo. Pag wala pang delivery, ang pwede
mo lang habulin ay yung nagtitinda.
- Ownership over properties are acquired and transmitted by delivery.

Accessions VS Accessories
Article 1166
- The obligations to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned.
● Accessions​: they are everything that is incorporated or attached to a thing, either naturally or
artificially.
a. Example: bumili ka ng lupa and may nakatanim na puno ng mangga.
Kahit hindi sinabi sa contract kung kasama yung puno sa pagmamay-ari
mo o delivery, kasama ito dahil ito ay considered na accession kasi
naka-incorporate ito sa lupa. But kung explicitly sinabi sa contract na
hindi kasama yung puno ng mangga, hindi ito kasama sa delivery.
● Accessories​: those joined to or included with the principal thing for the latter’s better use,
perfection or enjoyment.
○ Example: wristwatch. The principal thing is the watch itself and the strap is considered an
accessory kasi hindi mo ito magagamit ng matino without the strap.
○ Cellphone. Yung battery considered as an accessory kasi pag tinanggal mo yung battery
hindi na gagana yung cellphone.
● Yung accession kahit tanggalin mo, kaya pa mag-function nung principal object but yung
accessory if tinanggal mo, (may effect sa principal object) hindi mo na magagamit or ma-eenjoy
nang maayos yung principal object.
○ Jelly case of a cell phone: accession

Remedies of the creditor

● If the debtor fails to perform his obligations to deliver a determinate thing:
○ To compel the debtor to make the delivery
○ To demand damages from the debtor
Yan lang option mo because it is a determinate thing, hindi pwedeng bumili sa iba kasi specific
yon
● If the debtor fails to perform his obligation to deliver a generic thing:
○ To ask that the obligation be complied with at the expense of the debtor.
■ Sa iba na bibili, pero si seller na ang magsshoulder ng expenses
○ To demand damages from the debtor.
Pwede mong hanapin sa ibang seller yung bagay, kasi meron pang same kind sa iba.
● If the debtor fails to perform his obligation in obligations to do:
Obligations and Contracts: Module 1 

○ If the debtor fails to perform the obligation or performs it but contravenes the tenor
thereof, the creditor may have the obligation executed at the expense of the debtor or he
may also demand damages from the debtor.
■ Nag-usap kayo ng karpintero na magpapagawa ka ng bahay, pero biglang ayaw
nya na. As a customer pwedeng sa ibang karpintero mo na ipagawa pero yung
charges shoulder na nung unang karpintero. Pero kung hindi ka makahanap ng
iba, pwede mong singilin sa damages. Hindi mo siya pwedeng pilitin gawin yung
bahay kung labag na sa loob niy dahil it is a violation of his right against
involuntary servitude.
○ If the debtor performs the obligations but does it poorly, the creditor may have the same
be undone at the debtor’s expense or he may also demand damages from the debtor.
● If the debtor does what has been forbidden him:
○ The creditor may demand that what has been done be undone but at his expense.
○ He may also demand damages from the debtor.

Grounds for liability to pay for damages:

Article 1170
- Those who in the performance of their obligation are guilty of fraud, negligence or delay, and
those who in any manner contravene the tenor, thereof, are liable for damages.

Damages VS Injury
Damages: ​refer to the harm done or the sum of money that may be recovered in reparation for the harm
done.
- sum of money na makukuha mo sa perwisyong napala
- harm done: may isang criminal na sumunog ng bahay mo/ na-damage bahay mo, ang damage ay
tumutukoy sa naging pinsala sa iyong ari-arian dahil sa ginawa ng ibang tao
Injury: ​refers to the wrongful, unlawful or tortious act which causes loss or harm to another. It is the
legal wrong to be redressed.
- focused sa karapatan mong na-violate

DAMNUM ABSQUE INJURIA

- Damage without injury
- Normal scenario: nasira yung property mo, na-violate karapatan mo
- Example: sinunog yung kotse mo: na-damage yung kotse mo kasi sinunog, na-injure kasi
na-violate yung karapatan mo bilang may-ari
- But hindi sa lahat ng pagkakataon, sa damage may injury
- Example: ikaw ay isang squatter, kapag pinapaalis na kayo ng may-ari dahil gagamitin na niya
yung lupa and hindi kayo sumunod, magpapadala sila ng demolition team. Pag inararo yung
barong-barong niyo, may damage pero legally wala kang karapatan masaktan, walang injury dahil
una pa lang alam mo nang ganon yung mangayayari dahil hindi naman talaga sa inyo yung lupa.

Kinds of damages:
1. Actual/ Compensatory Damages
Obligations and Contracts: Module 1 

- These refer to the pecuniary loss that was actually incurred by the plaintiff. It includes the actual
value of the loss suffered and profits not realized.
- Example: ikaw ay nakaaksidente ng dumadaan, pag siya ay naospital, yung gastos niya sa ospital
ay actual damages.
- Sa Actual/ Compensatory Damages, bago siya makahingi ng danyos need niya ng proof of actual
damages or resibo ng gastos
2. Moral Damages
- They include physical suffering, mental anguish, fright, serious anxiety, besmirched reputation,
wounded feelings, moral shock and social humiliation
- Example: mga pinagsamantalahan, may karapatan silang humingi ng moral damages
- As an accountancy student kahit naramdaman mo na yan, hindi mo pwedeng kasuhan ang school
mo dahil sa damnum absque injuria, damage without injury, hindi na-violate yung karapatan mo
dahil expected mo na dapat yon na mahihirapan ka sa accountancy and dahil wala namang namilit
sayo hindi ka entitled sa moral damages
3. Nominal Damages
- Damages awarded to a party whose right has been violated
- Hindi ganon kalaki yung damages to the point na hindi kailangan malaman yung actual damages
- Example: nagkabanggan kayo and maliit lang naman gasgas, inaareglo na lang nila, tinatansya na
lang and nag aagree sa amount. Such as 2k na lang yung ibabayad sa gasgas, yon yung nominal
damages, hindi na kailangan ng resibo
4. Temperate or moderate Damages
- they are more than nominal but less than actual damages. The court may award temperate
damages if the court finds some pecuniary loss has been suffered but its amount cannot, from the
nature of the case, be proved with certainty.
5. Liquidated Damages
- Damages agreed upon by the parties to a contract, to be paid in case of breach.
- Sa simula pa lang ng contract, pinag-uusapan na nila na kung may hindi sumunod sa contract,
magbabayad ng damages
- Hindi na kailangan i-prove na yung effect or abala sayo ay nagkakahalaga ng *200,000 kasi sa
simula pa lang, napag-usapan niyo na kapag may hindi sumunod or gumawa ng obligasyon niya
ganong amount ang babayaran niya
6. Exemplary or corrective Damages
- These are imposed by way of example or correction for public good, in addition to the moral,
temperate, liquidated or compensatory damages.
- Example: gumagawa ng mga karumal dumal na krimen katulad ng massacre bukod sa
pagbabayad sa moral damages at compensatory damages, nagdadagdag din ang korte ng
exemplary damages upang magsilbing warning ito sa publiko upang huwag tularan o pamarisan

Fraud
- Is the deliberate or intentional evasion by the debtor of the normal compliance of his obligation.
(Art. 1170)
● Art. 1170​ - refers to the fraud committed by the debtor at the time of the performance of the
obligation.
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● Art. 1338-1344​ - refers to fraud employed in obtaining consent

Kinds of Fraud:
A. Fraud in obtaining consent:
- niloko ka para makuha yung consent mo
1. Causal Fraud or Dolo Causante
- fraud of a serious kind, without which, consent would not have been given. It renders the contract
voidable​ for it is a defect in one of the essential elements of a contract, “consent”.
- fraud ang naging dahilan para makuha mo consent niya
- Example: gusto mo maglasing, pagpunta mo sa tindahan ubos na yung alak nila pero sa
kagustuhan niyang makabenta ang inabot niya sayo ay suka
- Ito ay panloloko at para makuha yung consent mo (agree na bumili), pinaniwala ka
niyang alak yung binebenta niya. Kung sa simula pa lang sinabi niya nang hindi ito alak,
suka ito, kung hindi ka niya niloko, hindi niya makukuha consent mo, wala rin siyang
benta.
2. Incidental Fraud or Dolo Incidente
- This refers to fraud without which consent would have still been given but the person giving such
consent would have agreed on different terms. It would ​not render the contract void​ but the party
committing the fraud shall be liable for damages.
- Ito yung klase ng pangloloko na kahit niloko mo siya, may consent pa rin pero different terms
yung maibibigay niya
- Example: “Ate pabili ng alak” pag tingin ng tindera sa shelf may alak naman talaga. Pero nung
tinanong mo kung magkano, sabi niya “sir 10,000 yung isang bote ng alak” so nagtaka ka bakit
ang mahal, sagot niya naman “kasi po 20 years old na yung alak.” Dahil inom na inom ka na,
pumayag ka naman pero in reality 2 month old pa lang yung alak.
- May panloloko, pero kahit may panloloko makukuha pa rin sana ang consent mo. Sinabi
mong ate pabili ng alak, kung sinabi nung tindera yung totoo, matutuloy pa rin yung
transaction, bibili ka pa rin ng alak pero hindi sa halagang 10,000.

B. Fraud in the performance of the obligation

- This is the deliberate act of evading fulfillment of an obligation in a normal manner. The party
committing fraud shall be liable for damages
- after makuha yung consent mo, nung i-perform na yung obligation doon nagloko
- Example: “Ate pabili ng alak.” This time totoong alak na yung binigay sayo and siningil ka ng
tama. Walang fraud sa pagkuha ng consent mo para pumayag ka sa contract of sale. Bago umuwi,
naki-cr ka and tumikim si ateng tindera sa alak. So nabawasan, para hindi ka magalit dahil
nabawasan, tinubigan niya.
- Ang pagbebenta ng isang alak na natubigan niya ay isang panloloko. Pag napatunayan ng
buyer na tinubigan ng seller, the seller should be liable for damages.

Rules in waiver of Fraud:

● Past Fraud ​or fraud committed in the past ​can be waived​. Such an act is considered as liberality
on the part of the creditor.
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- naganap na yung panloloko, pwede mo patawarin or i-waive yung kaso

● Future Fraud ​or fraud still to be committed ​cannot be waived​ even if there is an agreement to
that effect. Such stipulation is void for being contrary to public policy.
Example:
- nanloko yung jowa mo last week (past fraud) so pag humingi ng tawad pwede mo pa patawarin
- “Tutal pinatawad mo na ako sa ginawa kong panloloko, baka pwedeng patawarin mo na ulit ako
kasi gagawin ko ulit.” Hindi mo pwedeng hingan ng waiver yung gagawin mong future fraud.
Delikadong i-allow ng batas na pwedeng i-wave ang future fraud dahil magiging prone to abuse.

Negligence
- is the omission of that diligence which is required by the nature of the obligation and corresponds
with the ​circumstance of the person, of the time, and of the place​. It is the failure to observe the
required degree of care, precaution and vigilance that the circumstances justly demand.
- depende sa tao, oras o lugar
- Examples:
- circumstance of the person: pagtulog (normal thing to do), pagpapabaya ang pagtulog
kung ikaw ay isang security guard habang nakaduty
- circumstance of the time: okay lang kung nasira ang mga ilaw ng jeep mo habang
namamasada ka ng umaga ngunit pumapasada ka pa rin ng gabi at sira pa rin ang
headlights mo, negligence na yon
- circumstance of the place: ang pagpapatakbo ng 80-100 kph ay normal lang kung nasa
TPLEX, pero considered as negligence kung nagpatakbo ka nang ganon kabilis sa labas
ng isang eskwelahan o simbahan.
- Diligence to be observed
- If the law or contract does not state the diligence which is to be observed in the
performance of that obligation, the debtor must observe the ​diligence of a good father of
a family​, as required by the nature of the obligation and which corresponds with the
circumstances of the person, of the time or of the place.

Kinds of Negligence:
● Culpa Contractual: ​negligence in the performance of a contract. It supposes a pre-existing
contractual relationship between the parties. This is negligence in the performance of the
obligation arising from a contract results to damages.
○ violation of contract of carriage, pag naaksidente kayo habang nakasakay ka sa jeep
● Culpa Aquiliana (​civil negligence, or tort or quasi-delict or culpa extra contractual): this is
quasi-delict where the negligence itself is the independent source of the obligation.
○ may nasagasaan na dumaraan, therefor an obligation arises to pay the damages
● Culpa Criminal ​(Criminal Negligence): this is negligence that results in commission of a crime.
○ naging pabaya ka dahil may masama kang intensyon, nanunog or nanira ng gamit ng iba
Kahit isa lang yung event or aksidente pwedeng magresult sa dalawang kind ng negligence, depende sa
kung sino ang nabiktima. Halimbawa, taxi driver ka tapos may nasagasaan kang dumaraan yung
obligation mo to pay for the damages arises sa negligence mo (culpa aquiliana dahil wala naman kayong
Obligations and Contracts: Module 1 

pre-existing contract) tapos nasugatan pa yung mga pasahero mo, dahil may contract na kayo which is
contract of carriage and naviolate mo yon babayaran mo siya ng damages (culpa contractual).

Delay or Default or Mora

● Delay ​is the non-fulfillment of an obligation with respect to time or delay in the fulfillment of an
obligation, contrary to what was agreed upon.
○ hindi natupad ang usapan niyo kung kailan dapat mangyari
● Kinds:
○ Mora Solvendi ​- delay on the part of the debtor
■ Ex.: usapan niyo is magbabayad ng December 31, pero lumagpas na hindi pa rin
nagbabayad yung debtor
○ Mora Accipiendi ​- delay on the part of the creditor. It exists when the creditor unjustly
refuses to accept the thing.
■ Ex.: ayaw pa tumanggap ng creditor ng bayad dahil gusto pa nila tumakbo yung
interest (kahit bawal din ito). Pag due date na at gusto na magbayad ng debtor,
required mong tanggapin.
○ Compensatio Morae ​- delay in reciprocal obligations, both parties are in default. It is as
if there is no delay.
■ Ex.: si buyer hindi pa nakapagbayad and si seller hindi pa maibibigay yung
product
● When is there delay? (Legal delay)
○ As a rule, the debtor incurs delay from the time the creditor demands fulfillment of the
obligation (either juridically or extra-juridically) and the debtor fails to comply with such
demand. Hence, ​no demand, no delay.
■ Due date is December 31 and January 1 na naghihintay ka lang hindi pa siya
nagbabayad, that person is on ordinary delay
■ Legal delay: liable ka na for damages and interest. If January 5 na, tinext mo sya
and hindi pa rin siya nagbayad, that person is on legal delay. Pag mag-compute
for damages and interest, mag-start sa January 5 kung kelan ka nag-demand na
bayaran ka na niya.
● Exceptions to the no demand, no delay rule:
○ When the law or the obligation so provides
- When there is an express provision of the law or stipulation by the parties that there is no
need for a demand for the performance of the obligation
- Example 1: In paying taxes, the due date is April 15. Hindi ka na kailangan pang
paalalahanan ng gobyerno na magbayad ng buwis mo. In April 16, mag-start na agad
yung computation mo for damages and interest.
- Example 2: On December 31, bayaran mo yung utang mo na 2,000, ​without need of
demand. ​Ibig sabihin pag January 1 na, hindi ka na kailangan pang paalalahanan,
automatic magiging liable ka na for damages and interest.
● When the time is of the essence of the contract
- When the designation of the time for the performance of the obligation is the controlling
motive for the establishment of the obligation.
Obligations and Contracts: Module 1 

- Example: Nagpagawa ka ng gown for your debut at August 21. Then, at August 21 na
wala pa rin yung gown. Hindi mo na kailangan mag-demand sa tailoring shop kasi alam
naman nilang Aug. 21 yung debut mo and dapat na-deliver na nila yon.
● When demand would be useless as when the obligor has rendered it beyond his
power to perform.
- In reciprocal obligations, from the moment one of the parties fulfills his obligation, delay
by the other begins notwithstanding the absence of a demand.
- Example: yung seller na bibilhan mo ng specific na aso, binenta na pala yung aso sa iba.
So wala nang sense na mag-demand ka pa don sa seller kasi hindi niya na kayang
i-perform yung obligation niya, magstart na agad yung delay niya.
● Effects of Delay:
○ On the part of the debtor:
■ The debtor shall be liable for the payment of damages.
■ If the obligation consists in the delivery of a determinate thing, he shall be liable
even if the thing is lost due to a fortuitous event.
- Ex. On September 1, tinawag mo yung seller na dapat madeliver na yung aso
sayo. But on September 3, tinamaan ng kidlat ang aso (kahit fortuitous event),
liable na yung seller dahil in legal delay na sya.
○ On the part of the creditor:
■ He shall bear the risk of loss and shall shoulder the expenses for the preservation
of the thing.
■ The debtor may resort to the consignation of the thing due.
- Ex. Usapan natin na Sept. 1, idedeliver ko yung aso sayo, pero ikaw yung
humihindi, pag may nangyaring masama sa aso, ikaw yung mawawalan and ikaw
yung liable sa expenses habang inaalagaan ko yung aso dahil ayaw mo pang
tanggapin.

Fortuitous Events
Article 1174
- Except in cases expressly specified by law, or which it is otherwise declared by stipulation, or
when the nature of the obligation requires the assumption of risk, no person shall be responsible
for those events which could not be foreseen (ex. lindol), or which, though foreseen, were
inevitable (ex. bagyo).
- These are events that could not be foreseen or which, though foreseen are inevitable. It is
not enough that the event should not be foreseen or anticipated, but it must be one
impossible to foresee or avoid.

Requisites of fortuitous event to be accepted as a justification for the non-performance of an

obligation to deliver a determinate thing:
● The cause must be independent of the debtor’s will
● There must be impossibility of foreseeing the event or if it can be foreseen, it must be impossible
to avoid
Obligations and Contracts: Module 1 

● The occurrence must be of such magnitude as to render it impossible for the debtor to perform his
obligation.
● The debtor must be free from participation in the non-performance, damage or loss of the
property brought about by the fortuitous event.

ex. Ikaw yung seller at natamaan yung specific na aso na iddeliver mo ng kidlat, pag lahat ito present,
hindi na liable yung seller/ debtor, wala na siyang obligation sa buyer dahil yung ​obligation niya
na-extinguish na because of the fortuitous event.

General Rule​: If the foregoing requisites are present in a case, then the debtor shall not be liable for
non-performance of the obligation due to a fortuitous event. His obligation is extinguished.
Exceptions:
● When the debtor is in delay
● When the debtor promised the same thing to two or more persons who don't have the same
interest
● When the parties stipulate or agree that the debtor will not be exempted from liability even if
non-performance of the obligation is due to a fortuitous event
● When the nature of the obligation requires the assumption of risk (ex. Insurance company)
● When the thing to be delivered is generic

Article 1175. Usurious transactions shall be governed by special laws

● Usury is contracting for or receiving interest in excess of the amount allowed by law for the loan
or use of money, goods, chattels or credits.
● Usury is now legally non-existent. Parties are now free to stipulate any amount of interest. This is
due to Central Bank Circular No. 905 that took effect on January 1, 1983.
● It does not, however, give absolute right to the creditor to charge the debtor interest that is
“iniquitous or unconscionable.” (wala nang limit sa interest ngayon pero wag naman yung
masyadong abusado)

Presumptions on receipts of principal and installment payments (Art. 1176)

● The receipt of the principal without reservation as to interest, shall give rise to the presumption
that the interest has been paid
- ex. Pinautang kita 1,000 ang usapan natin after one year ay 100 so ang total na utang mo sakin is
1,100. Nung bayaran na 1,000 lang yung inaabot mo. ​Ang tamang pag resibo ay yung 100 ay
bayad don sa interest at yung 900 ay bayad sa principal.​ Hindi mo pwedeng resibo na yung 1,000
lang (yung principal lang) dahil may nag-aarise na isang presumption: na dahil ​ini-indicate mo na
ang payment, yung 1,000 ay para sa buong payment ng principal, iniimply mo na bayad na yung
interest,​ which in reality hindi pa bayad interest. Logic states na una mo dapat bayaran yung
interest bago yung principal.
Obligations and Contracts: Module 1 

- Kung magresibo ka ng 1,000 na for principal lang, ilagay mong “Received 1,000 for the
payment of principal but the interest is not yet paid.” , para hindi mag-arise yung
presumption
● The receipt of a later installment without reservation as to prior installments, shall give rise to the
presumption that prior installments have been paid.
- ex. I have a boarding house, per room is 5,000 per month. Yung isang nagdorm, tatlong buwan na
hindi nakapagbayad, January-March. Then nung nakasalubong mo siya, nagbayad siya ng 5,000.
Under the law, ang pinaka tamang buwan para sa resibo ng 5,000 ay para sa buwan ng January.
Kasi kung ang nilagay mo na ang bayad niya ay para sa February or March, it gives rise to the
presumption: na ​dahil nagreresibo ka na para sa March, bayad na siya ng January at February.
- Kung gagawin mong for March yung bayad sa resibo idagdag mo na January and
February has not yet been paid. Para hindi mag give rise sa assumption na bayad na yung
ibang buwan.
The foregoing are mere ​disputable presumptions​ (not conclusive) and the creditor may rebut such with
clear and convincing evidence to the contrary.

Different remedies of the creditor to enforce payment of his claims against the debtor (Art. 1177):
a. Specific performance ​- Exact fulfillment of the obligation by specific or substitute performance
with a right to damages in either case
- if may utang sayo yung isang tao, pwede ka mag-file ng collection case at yung judge ang
mag-uutos sa debtor na magbayad ng utang niya sayo
b. Attachment ​- Pursue the property in the possession of the debtor, except those exempt by law
- Hihilain ng korte ang mga ari-arian ng debtor, ibebenta para ikaw ay mabayaran
- Properties exempt by law: Family home unless ito yung nakasangla, gamit sa paghahanapbuhay,
clothing and kailangan mag-iwan ng provision for at least 3 months.
c. Accion subrogatoria ​- To be subrogated to all the rights and actions of the debtor save those
which are inherent in his person
- Si A may utang sayo, si B naman may utang kay A. Pwedeng utusan na lang ng korte si B na
direktang magbayad sayo, this process is called ​process of garnishment
d. Accion pauliana ​- Asking the court to rescind or to impugn all the acts which the debtor may
done to defraud the creditors
- minsan may loko-lokong debtors na, pinapasok sa sa deed of sale yung properties nila para hindi
mo ma-attach or mahila. Pwede mo i-request sa korte na i-impugn or i-cancel yung mga kontrata
na pinasok nung loko-lokong debtors sa ibang tao, para bumalik yung ownership sa debtor at
pwede mo na ma-attach.
Before using the remedy of accion pauliana, you need to exhaust the three remedies first, making it your
last resort, because in accion pauliana, there is a third party affected.

Relativity of Contracts
- A contract can only bind the parties who have entered into it or their successors who have
assumed their personality or their juridical position and that, as a consequence, such contract can
neither favor nor prejudice a third person.
Obligations and Contracts: Module 1 

- Ang pwede lang maapektuhan ng isang kontrata ay kung sino lang mismo ang pumasok doon at
yung successors nila. Ang hahabulin lang nung kontrata ay kung sino ang nakapirma.
- Hindi mo pwedeng manahin ang utang ng ibang tao. Under the relativity of contracts, hindi mo
dapat utang yon. Lumalabas lang na utang ang minana mo dahil konti na lang ang matitira sa
assets niya pagkabayad sa mga utang ng lolo mo.
- Bago makuha ng successors ang mana sa assets ng lolo nila, kailangan bayaran muna
yung utang ng lolo noong buhay pa siya. Lahat ng hindi mababayaran na liabilities ng
lolo niya, kailangan i-write off na ito ng creditors. Hindi ka dapat habulin o hindi dapat
maapektuhan yung personal assets mo para pambayad sa utang ng lolo mo.
- Yung ibang tao na binabayaran yung utang ng kamag-anak nila, it is not a civil obligation
but more of a ​moral obligation.

Exceptions are intransmissible rights and obligations :

● By their nature as when the special or personal qualification of the obligor constitutes one of the
principal motives for the establishment of the contract
● By stipulation of the parties, as when the contract expressly provides that the obligor shall
perform an act by himself and not through another
● By provision of law, as in the case of those arising from a contract of partnership or of agency
○ A, B and C ay partners sa isang partnership. Namatay si A, hindi pwedeng successor
yung anak niya. Hindi transmissible ang karapatan maging miyembro sa isang
partnership dahil ang isang partnership ay dapat may mutual trust at confidence.