Principal vs.

Accessory
Obligation

Principal Obligation – the main

obligation, usually the delivery of
the thing itself.
Accessory Obligations- those that
come with the performance of the
obligation (usually because they
are mandated by the law)
 Suspensive Condition
 ART. 1181. In conditional obligations, the
acquisition of rights, as well as the extinguishment
or loss of those already acquired, shall depend
upon the happening of the event which constitutes
the condition.
a condition the fulfillment of which will
give rise to an obligation (or right). The
obligation is not effective or in force until
the happening of a suspensive condition.
The creditor acquires rights when the
suspensive condition happens.
Future; uncertain event; Past events
unknown to the parties
 Period
ART. 1193. Obligations for whose
fulfillment a day certain has been fixed,
shall be demandable only when that day
comes. (Obligations with a Period)
Period- a day certain is understood to be
that which must necessarily come,
although it may not be known when.
Future and Certain Event
 Jus in re vs. Jus in personam
A real right (jus in re) is the power of
a person to obtain certain financial or
economic advantages over a specific
thing, a power enforceable against the
whole word.

A personal right (jus in personam) is

the power belonging to a person to
demand from another as a definite
passive subject debtor, the fulfillment
of a prestation to give, to do or not to
do.
 Ownership
Ownership is, by general rule,
vested upon delivery (actual or
constructive) of the thing.
By virtue of delivery (and
consequently ownership), an
individual acquires real rights
over the thing.
Perfection Delivery
(June 8, (August 29,
2023) 2023)
Perfection Delivery
(June 8, (August 29,
2023) 2023)
 Summary of Remedies
1. Determinate Obligation
a. Demand Specific Performance +
Indemnity for Damages;
b. Demand Rescission/ cancellation
(in some cases) + Damages;
c. Damages only if the first two
remedies are not feasible.
 Summary of Remedies
2. Indeterminate Obligation
a. Demand Fulfillment + Indemnity
for Damages;
b. Ask another person to make
delivery at expense of debtor +
Damages;
c. Demand Rescission/ cancellation
(in some cases) + Damages;
 Other provision:
In case of Delay/ promise to Deliver
the thing to two or more individuals
(with different interests), there arises
responsibility for Fortuitous events
until delivery is effected. (exception
to non-liability in case of fortuitous
events)
 Fortuitous Events

ART. 1174. Except in cases

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

Caso Fortuito- may either include

acts of God , or natural occurrences
like the forces of nature such as
typhoons; or acts of man such as
wars and riots, strikes, wars. (Phil.
Comm Satellite Corp vs. Globe
Telecom, G.R. No. 147324, May 25,
2004)
 Fortuitous Events

- is an event which cannot be

foreseen, or which, although
foreseeable, cannot be avoided.
Therefore, it is not enough to say
that an event is fortuitous if it is not
impossible to foresee or to be
avoided. Since a fortuitous event is
unforeseeable and unavoidable, it is
therefore independent of the will of
the obligor/debtor.
 Fortuitous Events
Requisites:
1. Cause is independent of the will of the
debtor;
2. The event is unforeseeable or
unavoidable;
3. 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
4. Debtor is free from any participation in
the aggravation of the injury to the creditor.
 Can you compel performance if
the debtor refuses to do an act?
No, because doing so would result in
involuntary servitude, a situation
that is prohibited by the
Constitution.
Remedy: Ask performance by
another individual (as long as act is
not purely personal) at the expense
of the debtor.
 Breach of Obligations

1. Involuntary- these are due to

causes independent of the will of the
parties. (fortuitous event and Force
Majeur)
2. Voluntary-Arises from the will of
the Parties (Mora or delay, Dolo or
Fraud, Culpa or Negligence, and
Contravention of the tenor of the
obligation)
 How can there be legal
delay/mora?
There can be no delay if there is no
demand. The demand contemplated
here is usually a written demand.
(General Rule)

Thus, there can only be mora if a

demand was made.
 Fraud (Causal Fraud)
Art. 1338. There is fraud when,
through insidious words or
machinations of one of the
contracting parties, the other is
induced to enter into a contract
which, without them, he would not
have agreed to.
 Requisites:
1. Made in bad Faith;
2. Use of insidious words and
machination;
3. Due to the foregoing, the other party
is induced to enter into the contract;
4. That party suffered damage or injury;
5. The damage or injury must be
serious;
 Questions:
1. Is there fraud if you failed to
disclose facts, when there is a duty
to reveal them?
2. How about commercial
exaggerations in trade?
3. How about an expression of
opinion?
4. How about misrepresentations
made in good faith?
 Incidental Fraud
-Refer to deceptions or
misrepresentations which are not
serious in character and without
which, the party would have still
entered into the contract. Dolo
incidente gives rise to damages.
 Dolo Incidente vs. Dolo Causante
- Dolo incidente is present only during
the performance of a pre-existing
obligation while dolo causante
employed at the time of birth of the
obligation.

- Dolo incidente aims to evade the

normal fulfillment of the obligation while
dolo causante aims to secure the
consent of the other party to enter into
the contract.
 Dolo Incidente vs. Dolo Causante
-Dolo incidente results in the non-
fulfillment or breach of the obligation
while dolo causante, if it is the reason
for the other party upon whom it is
employed for entering into the contract,
results in the vitiation of his consent;

-Dolo incidente allows the obligee to

recover damages from the obligor while
dolo causante gives rise to the right of
the innocent party to ask for the
annulment of the contract.
 Negligence/ Culpa
The fault or negligence of the obligor
consists in the omission of that
diligence which is required by the
nature of the obligation and
corresponds with the circumstances
of the persons, of the time and the
place.
 Test of Negligence
Did the obligor, in doing the alleged
negligent act, use that reasonable
care and caution which an ordinarily
prudent person would have used in
the same situation? If not, then he is
guilty of negligence. (Al Dela Cruz
vs. Capt. Renato Viano, G.R. No.
219649, July 26, 2017)
 REMEDIES AVAILABLE TO CREDITORS
FOR THE SATISFACTION OF THEIR
CLAIMS:
1.Specific Performance with right to damages;
2.Exhaustion of the debtor’s properties still in his
possession– writ of attachment (before judgment)
or writ of execution (for final judgment not yet
executed)
3.ACCION SUBROGATORIA – an action where the
creditorwhose claims had not been fully satisfied,
may go after the debtors (3rd person) of the
defendant debtor.
4.ACCION PAULIANA – an action where the creditor
files an action in court for the RESCISSION of acts
or contracts entered into by the debtor designed to
defraud the former.
 What are the requisites of Accion
Subrogatoria?
1. The debtor’s assets must be insufficient to satisfy
claims against him;

2. The creditor must have pursued all properties of

the debtor subject to execution;

3. The right of action must not be purely personal;

4. The debtor whose right of action is exercised must

be indebted to the creditor.
 What are the requisites of Accion
Pauliana?

1. Defendant must be indebted to plaintiff;

2. The fraudulent act performed by the debtor
subsequent to the contract gives advantage to
another;
3. The creditor is prejudiced by such act;
4. The creditor must have pursued all properties of
the debtor subject to execution;
5. The creditor has no other legal remedy. (Remedy
of last resort)