uribe notes obligations

8/12/2019 Uribe Notes Obligations

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CIVIL LAW REVIEW 2 Notes[ATTY. CRISOSTOMO A. URIBE]

I. OBLIGATIONS

[June 18 2!!8]

A. IN GENERAL"

1. #E$INITION"A%t&'(e 11)*. +n o,(&-+t&on &s + u%&/&'+( ne'ess&t0

to -& e to /o o% not to /o. #e &nes CIVIL 34 5JURI#. NECESSITY6 7+ es &t

en o%'e+,(e ,0 'ou%t +'t&on4

B+(+ne: Book IV starts w/ an inaccuracy. It gives theimpression that obligations & contracts are of the same status,

w/c they are not. A contract is only one of the sources ofobligations. Book IV shoul have been simply title!"bligations.!Et07o(o-0 9 two #atin wor s, ligare , meaning !to bin !

& ob w/c is a proposition use to intensify averb.

#iterally obligare means ! to ,&n/ se'u%e(0 .!

To(ent&no"the juridical tie between two or more persons, byvirtue of which one of them, the creditor or oblige, has the rightto demand of the other, the debtor or obligor, a definite

prestation.

M+n%es+"legal relation established between one party andanother whereby the latter is bound to the fulfillment of a

prestation which the former may demand of him.

A%&+s R+7os"$more complete efinition, acc g to %, whchgives the element of responsibility essential to an '

An 3 is a juridical relation whereby a person (called thecreditor) may demand from another (called the debtor) the

observance of a determinate conduct, and in case ofbreach, may obtain satisfaction from the assets of thelatter.

Where there is a right or power to demand, there is acorrelative 3 or an imposition upon a person of adefinite conduct.

B+(+ne" A better efinition woul be,

An obligation is a juridical relation :,e'. t;e%e +%e 2 ?&e%o.=

O,(&-+t&on :3= 9is a (uri ical relation whereby a person)calle the cre itor* may eman from another ) ebtor* theobservance of eterminate con uct, an in case of breach,may obtain satisfaction from the assets of the latter.

C;+%+'te%&st&'s o +n O,(&-+t&on"

It represents an e+clusively private interestIt creates ties that are by nature transitoryIt involves the power to make the (uri ical tie effectivein case of non fulfillment through an economice-uivalent obtaine fr. the ebtor s patrimony.

Essent&+( E(e7ents o +n O,(&-+t&on"

:1= Active Subject %his refers to the cre itor or the obligee.A '%e/&to% generally use in an obligation to give

while o,(&-ee is use in an obligation to do

:2=Passive Subject %his refers to the ebtor or the obligor./e,to% is use in an obligation to give

while o,(&-o% is use in an obligation to do

%he first two elements must be /ete%7&n+te or/ete%7&n+,(e. %he following are possible combinations:

Both parties are etermine at the time of thee+ecution of the obligation.one party is etermine at the constitution of theobligation & the other to be eterminesubse-uently in accor ance w/ a criteria that ispreviously establishe .the sub(ect is etermine in accor ance w/ hisrelation to a thing & therefor it changes where thething passes fr. one person to another. %his is a


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2. IN#S O$ OBLIGATIONS AS TO BASIS HEN$ORCEABILITY

:+= NATURAL OBLIGATIONS

Article 2845. "bligations are civil or natural.C& &( o,(&-+t&ons give a right of action to compel theirperformance.N+tu%+( o,(&-+t&ons, not being base on positive lawbut on e-uity an natural law, o not grant a right of

action to enforce their performance, but aftervoluntary fulfillment by the obligor, they authori;e theretention of what has been elivere or ren ere byreason thereof. *

Re u&s&tes o N+tu%+( 3"2. there is a (uri ical tie between two persons4. the tie is not given effect by law

an 3 w/o a sanction, susceptible of voluntaryperformance, but not thru compulsion bylegal means.

Vo(unt+%0 u( &((7ent 9 may be un erstoo asspontaneous, free from frau or coercion or it may beun erstoo as meaning without knowle ge or free fromerror3

w/knowle ge that he cannot be compelle to pay 34RATIO"?reputation@ )clan*

N+tu%+( 3 s. Mo%+( 3"N+tu%+( 3 Mo%+( 3

Ju%&/&'+( t&e +ists none?e% o%7+n'e ,0/e,to%

legal fulfillmentof an 3

act of pureliberality whichsprings frombloo , affection orbenevolence

B+s&s oe &sten'e o 3 0ithin theomain of law entirely omain ofmoralsEn o%'e+,&(&t0 %rue 3 but for

certain causescannot beenforce by law

moral uty isine+istent in the

(uri ical point ofview

E +7


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B+(+ne" Is t;e enu7e%+t&on &n A%t. 11) e '(us& e o% 7e%e(0&((ust%+t& e

#o't%&ne" T;e sense t;+t t;e '+se o S+-%+/+ O%/en te((s us &s t;+t t;e enu7e%+t&on &s e '(us& e.

In resolving the issue of whether the ef. shoul beliable to pay rentals, the


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as +n o ense +-+&nst t;e &'t&7. It is in the latter case that civilliability is recoverable.

As +% +s '%&7e &s 'on'e%ne/ '& &( (+F &s not'on'e%ne/ F t;e


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Joverne by Art. 11 )common carrier*,& all on contracts

D P ?@>0 -

B+(+ne: %here are two important principles that we learn fr. thiscase:

%he ifference in concept bet. contract & -uasi elict is that ina contract, t;e%e &s +


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+tte7


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II. %o o

III. Got to o )this inclu es all negative obligations likeobligation not to give.*

&n/s o


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4 electric motors 4U ea ?Appro+. elivery w/in K= ays %hisis not guarantee .@ ) eb.

4O, 2K2K* efen ant refuse to accept an pay eliveries b/c of elay

#H: At the constitution of the 9, the 2 st 0.0ar was stillongoing an the 6< govt was rigi on e+portation of machinerysuch as the sub(ects of this 93 t;e te%7 F;'


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B+(+ne"%his article refers to suspensive con ition.%his article sets forth the rule of retroactivity in an obligation togive. %his rule is logical but impractical. Eany mo ern CivilCo es have iscar e it.

No Ret%o+'t& &t0 +s to t;e $%u&tsGotice that there isno retroactivity w/ respect to the fruits. %he fruits are eeme tocancel out each other. If only one of the thing pro uces fruits,there is no obligation to eliver the fruits.

A%t&'(e 1188. %he cre itor may, before the fulfillment of thecon ition, bring the appropriate actions for the preservation ofhis right.

%he ebtor may recover what uring the same time he has


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'. WIT A TERM OR ?ERIO#"

A%t&'(e 118!. 0hen the ebtor bin s himselfto pay when his means permit him to o so,the obligation shall be eeme to be one

with a perio , sub(ect to the provisions ofarticle 22KO.

B+(+ne: A term is a utu%e an 'e%t+&n event upon w/c theeman ability )or e+tinguishment* of an obligation epen s.

To(ent&no" Derio must be :1= utu%e :2= 'e%t+&n +n/ : =


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t;+t %en/e%s t;e ot;e% 'ont%+'ts o&/ +n/ '+n no 7o%e ,es+ e/ %o7 &((e-+(&t0 t;+n t;e %est o t;e 'ont%+'ts.

LIM V. ?EO?LE $255


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A%t. 11 ! 9 no e+ception, walang matitira

SUS?ENSIVE CON#I 9 upon the happening of the con i., the3 e+ists )?e+istence of 3 is affecte *

CLASSI$ICATION O$ CON#ITION"2. ?OTESTATIVE when the fulfillment of the con i.

epen s upon the will of the party to the 344. CAUSAL epen s upon chance 4 n or 5 r person5. MI E# 9 epen s partly upon the will of the party &

partly upon chance or a 5r

person

A%t. 1182" ?otest+t& e 9sole will of the ebtor?otest+t& e sus


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A: Concentration.

%he right to choose is in ivisible ebtor cant choose partof one prestation an part of another3

ere, plaintiffPs action must be in alternative form3

A%t. 12!1. T;e ';o&'e s;+((


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[JULY 2!!8 CLASS]

. AS TO RIG TS H 3Ds O$ MULTI?LE ?ARTIES"[Jo&nt H So(&/+%0 O,(&-+t&ons A%ts. 12! @1222]

a. Jo&nt O,(&-+t&ons

B+(+ne: A joint obligation is one in w/c each of the ebtors isliable only for a proportionate part of the ebt or each cre itor isentitle only to a proportionate part of the cre it.

In (oint obligations, there are as many obligations asthere are ebtors multiplie by the number of cre itors.

T;e%e +%e t;%ee &n/s o o&nt o,(&-+t&ons"1) A't& e o&nt where the obligation is (oint on

the cre itor s si e32) ?+ss& e o&nt where the obligation is (oint

on the ebtor s si e3 &3) Mu(t&


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An 3 to e/ T%+ns e%" no effect, no rts. transferre 3assignee oes not become soli ary cre itor, co cre itors anebtor/s not boun by such transfer3

payment ma e by this assignee will not e+tinguish 3suit file by him may not interrupt +.

QC D%, if the assignee is also one of the cocre itors, b/c mutual confi ence is incumbent.

Just&'e JBL REYES"Art. 2425 places un(ustifiable anunnecessary bur en on the rts of soli ary cre itors upon his own

share. %he article sh have rea as: A solidary creditor who assigns his rts w4o the consent

of his co-creditors shall answer subsidiarily for any prejudice caused by the assignee in connection w4 dcredit assigned.

#iability was compare to agent&principal3

B+(+ne"Gene%+( Ru(e A ebtor may pay any of the soli ary cre itors.

E 'e


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%olentino warns that to make the ebtors pay for the wholeamount to the eman ing cre itor even if partial paymenthas alrea y been ma e to another cre itor might amount toun(ust enrichment. %his rule/restriction has alrea y beenscrappe in some mo ern civil co es allowing free om ofchoice to the ebtor even after eman .

K" T;e%e +%e t;%ee '%e/&to%s A, B & C & there are three ebtorsQ, S & W. A makes a eman on S. Q pays B.

A: T;&s &s not 'o e%e/ ,0 A%t. 121 .

A%t. 121). No +t&on 'o7


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A%t. 122 . T;e /& &s&,&(&t0 o% &n/& &s&,&(&t0 o t;e t;&n-s t;+t+%e t;e o, e't o o,(&-+t&ons &n F ' t;e%e &s on(0 one /e,to% Hon(0 one '%e/&to% /oes not +(te% o% 7o/& 0 t;e


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+ception: 0hen it is o%


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A%t. 122 . T;e /e,to% '+nnot e e7


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states that the eman is not necessary in or er that elaymay set in.

1hen fr. the nature H the circumstances of the obligation itappears that the designation of the time when the thing isto be delivered or the service is to be rendered was acontrolling motive for the establishment of the contract.

Illustration: Bong Baylon is getting marrie in ValentinesKL. Inno


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Fuly K, 4==M

E. BREAC O$ OBLIGATIONS :ART. 11 !=

A%t. 11 !. T;ose F;o &n t;e


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have been elivere , without the nee of anyeman .

A%t&'(e 1 88. A partner who has un ertaken tocontribute a sum of money an fails to o so becomesa ebtor for the interest an amages from the timehe shoul have complie with his obligation.%he same rule applies to any amount he may havetaken from the partnership coffers, an his liabilityshall begin from the time he converte the amount tohis own use.

A%t&'(e 18 *. T;e +-ent oFes &nte%est on t;e su7s ;e ;+s+


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TELE$AST VS. CASTRO$2NM s 88N' AC%


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ne-(&-en'e o ot;e%


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April 5=, 2KOK, bl g. ispute was authori;e to be emolisheat e+pense of plaintiff, after further earth-uakes cause furtheramage to the bl g3

ISSUE: 0"G AG AC% " J"H 0 C CA6< H HAEAJ %"% I< B#HJ, Q ED%< #IABI#I%S, DA %I < 0 " A"% 0I< #IAB# B/C " G J#IJ GC T ART. 1 2

To e e7 .=

NA ?IL H SONS VS. CA $2L= < 558' AD I# 2N, 2KMM

AC%


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A%t&'(e 22 *. %he ebtor is liable with all his property,present an future, for the fulfillment of his obligations,sub(ect to the e+emptions provi e by law. ) Con'u%%en'e H?%e e%en'e o C%e/&ts*

A%t&'(e !2. Geither the right to receive legal support norany money or property obtaine as such support or anypension or gratuity from the government is sub(ect toattachment or e+ecution. ) Su


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As a rule, sn benefits only Cr who obtaine sn. An thee+tent of revocation is only to the amount of pre(u ice suffereby Cr. As to the e+cess, the alienation is maintaine

A n o% Rsn 7+0 ,e ,%ou-;t ,0")2* the person in(ure by the escue U,)4* heirs of this person, &)5* their Crs by virtue of rt grante un er Art. 22OO.

Rt. o t%+ns e%ee to %et+&n


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T;e &n u%e/


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Eyrick, respon ent herein, commence the present action inC I Albay, against E I for the sum of D4,NKL.=M with legalinterest thereon from the filing of the complaint until itspayment, an for costs of the suit. #ower court grante , CAaffirme w/mo if. %hat legal interest sh be compute fr ateof the cancellation of the 9. %hus this petition.

I


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itself re-uires that he shoul e+ercise ue iligence tominimi;e its own amages )Civil Co e, Article 22! *.

0e see no conflict between this ruling an the previous (urispru ence of this Court invoke by respon ent eclaringthat (u icial action is necessary for the resolution of areciprocal obligation, 1 since in every case where thee+tra(u icial resolution is conteste only the final awar of thecourt of competent (uris iction can conclusively settle whetherthe resolution was proper or not. It is in this sense that (u icial

action will be necessary, as without it, the e+tra(u icialresolution will remain contestable an sub(ect to (u icialinvali ation, un(ess +tt+' t;e%eon s;ou(/ ,e'o7e ,+%%e/ ,0+' u&es'en'e esto


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A)%(2(S S !A2ASA)

AC%


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$OR JULY 1* 2!!8"

G. MO#ES O$ E TINGUIS MENT O$ OBLIGATIONS

A%t. 12 1. O,(&-+t&ons +%e e t&n-u&s;e/ BY":1= ?+07ent o% ?e% o%7+n'e4:2= Loss o t;e t;&n- /ue4: = Con/on+t&on o% Re7&ss&on o t;e /e,t4: = Con us&on o% Me%-e% o t;e %&-;ts o '%e/&to% H

/e,to%4:)= Co7


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A. ?+07ent o% ?e% o%7+n'e

PERTINENT PROVISIONS/ reading matters:

Art. 1232 . Payment means not only the delivery of money b t also the !erforman"e# in any other manner# of an obli$ation.

Art. 1233 . % debt shall not be nderstood to have been !aid nless thethin$ or servi"e in &'" the obli$ation "onsists has been "om!letely deliveredor rendered# as the "ase may be.

Art. 1234 . f the obli$ation has been s bstantially !erformed in $ood faith#the obli$or may re"over as tho $h there had been a stri"t "om!letef lfillment# less dama$es s ffered by the obli$ee.

Art. 1235 . *hen the obli$ee a""e!ts the !erforman"e# +no&in$ itsin"om!leteness or irre$ larity# &'o e,!ressin$ any !rotest or ob-e"tion#the obli$ation is deemed f lly "om!lied &'.

Art. 1236 . he "reditor is not bo nd to a""e!t !ayment or !erforman"e bya third !erson &ho has no interest in the f lfillment of the obli$ation# nlessthere is a sti! lation to the "ontrary.

*hoever !ays for another may demand fr. the debtor &hat he has !aid# e,"e!t that if he !aid &'o the +no&led$e or a$ainst the &ill of thedebtor# he "an re"over only insofar as the !ayment has been benefi"ial to thedebtor.

Art. 1237 . *hoever !ays on behalf of the debtor &'o the +no&led$e ora$ainst the &ill of the latter# "annot "om!el the "reditor to s bro$ate him inhis ri$hts# s "h as those arisin$ fr. a mort$a$e# $ aranty# or !enalty.

Art. 123 . Payment made by a third !erson &ho does not intend to bereimb rsed by the debtor is deemed to be a donation# &'" re/ ires thedebtor s "onsent. t the !ayment is in any "ase valid as to the "reditor &hohas a""e!ted it.

Art. 123! . n obli$ations to $ive# !ayment made by one &ho does not havethe free dis!osal of the thin$ d e "a!a"ity to alienate it shall not be valid#&'o !re- di"e to the !rovisions of arti"le 1427 nder the itle on at ralbli$ations.

Art. 124" . Payment shall be made to the !erson in &hose favor theobli$ation has been "onstit ted# or his s ""essor in interest# or any !ersona thori ed to re"eive it.

Art. 1241 . Payment to a !erson &ho is in"a!a"itated to administer his !ro!erty shall be valid if he has +e!t the thin$ delivered# or insofar as the !ayment has been benefi"ial to him.

Pa#ment made t$ a t%ird &ers$n shall also be valid insofar as it hasredo nded to the benefit of the "reditor. "h benefit to the "reditor neednot be !roved in the follo&in$ "ases

(1) f after the !ayment# the third !ersons a"/ ires the"reditor s ri$hts

(2) f the "reditor ratifies the !ayment to the third !erson

(3) f by the "reditor s "ond "t# the debtor has been led to believe that the third !erson had a thority to re"eive the !ayment.

Art. 1242 . Payment made in $ood faith to any !erson in !ossession of the"redit shall release the debtor.

Art. 1243 . Payment made to the "reditor by the debtor after the latter has been -di"ially ordered to retain the debt shall not be valid.

Art. 1244 . he debtor of a thin$ "annot "om!el the "reditor to re"eive a

different one# altho $h the latter may be of the same val e as# or moreval able than that &'" is d e.

n obli$ations to do or not to do# an a"t or forbearan"e "annot bes bstit ted by another a"t or forbearan"e a$ainst the obli$ee s &ill.

Art. 1246 . *hen the obli$ation "onsists in the delivery of an indeterminateor $eneri" thin$# &hose / ality "ir" mstan"es have not been stated# the"reditor "annot demand a thin$ of s !erior / ality. either "an the debtordeliver a thin$ of inferior / ality. he ! r!ose of the obli$ation other"ir" mstan"es shall be ta+en into "onsideration.

Art. 1247 . nless it is other&ise sti! lated# the e,tra- di"ial e,!ensesre/ ired by the !ayment shall be for the a""o nt of the debtor. *ith re$ardto - di"ial "osts# the : les of ;o rt shall $overn.

Art. 124 . nless there is an e,!ress sti! lation to that effe"t# the "reditor"annot be "om!elled !artially to re"eive the !restations in &'" the obli$ation"onsists. either may the debtor be re/ ired to ma+e !artial !ayments.


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t%an P%i(i&&ine '*rren'#, s*'% t%at $+(igati$ns $r transa'ti$nsma# n$ +e &aid in t%e '*rren'# agreed *&$n +# t%e &arties .

A st li+e :.%. o. 529# ho&ever# the ne& la& d$es n$t &r$-ide$r t%e a&&(i'a+(e rate $ e '%ange $r t%e '$n-ersi$n $$reign '*rren'# in" rred obli$ations in their !eso e/ ivalent.

t follo&s# therefore# that the - ris!r den"e established in :.%. o.529 re$ardin$ the rate of "onversion remains a!!li"able. h s# in

Asia World Recruitment, Inc. v. National Labor RelationsCommission, 13 the ;o rt# a!!lyin$ :.%. o. 8183# s stained ther lin$ of the B:; that $+(igati$ns in $reign '*rren'# ma# +edis'%arged in P%i(i&&ine '*rren'# +ased $n t%e &re-ai(ing rateat t%e time $ &a#ment .

CONCE?T O$ ?AYMENT

A%t. 12 2. ?+07ent 7e+ns not on(0 t;e /e(& e%0 o 7one0 ,ut+(so t;e


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5. In case of application of payments if several ebts aree-ually onerous )Art. 24N8, par. 4.*

. 6ndivisibility %his means that the obligor must perform theprestation in one act & not in parts. )Art. 248M.*

T;e%e +%e se e%+( e 'e


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5.


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%he provisions of law applicable to the case at bar are the following:

+. A%t&'(e 12 o t;e C& &( Co/e F;&';


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obligation +++ whether or not any such provision as to paymentis containe therein or ma e w/ respect thereto, shall beischarge upon payment in any coin or currency w/c at the timeof payment is legal ten er for public & pvt. use.! A contrary rule

woul allow a person to profit or enrich himself ine-uitably atanother s e+pense.

AC%


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$ou% S


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2. If one is interest paying & the other is not, the ebt w/cis interest paying is more onerous.

4. If one is a secure ebt & the other is not, the secureebt is more onerous

5. If both are interest free, one is ol er than the first, thenewer one is more onerous bec. prescription will takelonger w/ respect to the newer ebt.

th &ule= Droportional application if the ebts are e-uallyonerous.

A%t. 12)2. e who has various ebts of the same kin in favorof one & the same cre itor, may eclare at the time of makingthe payment, to w/c of them the same must be applie . 6nlessthe parties so stipulate, or when the application of payment isma e by the party for whose benefit the term has beenconstitute , application shall not be ma e as to ebts w/c are notyet ue.

If the ebtor accepts fr. the cre itor a receipt in w/c anapplication of the payment is ma e, the former cannot complainof the same, unless there is a cause for invali ating the contract.

[To(ent&no] Gecessary that s must all be ue

"nly in case of mutual agreement, or upon consent ofthe party in whose favor the term was estab, that pmtsmay be applie to s w/c have not yet mature

A%t. 12) . If the ebt pro uces interest, payment of the principalshall not be eeme to have been ma e until the interests havebeen covere .

A%t. 12) . 0hen the payment cannot be applie in accor ance w/ the prece ing rules, or if application can not be inferre fr.other circumstances, the ebt w/c is most onerous to the ebtor,among those ue, shall be eeme to have been satisfie .

If the ebts ue are of the same nature & bur en, thepayment shall be applie to all of them proportionately.

[B+ &e%+]%he ff. Are the rules for applicPn of pmts:2 %he first choice belongs to the Hb4 If the Hb i not choose, the Cr may choose, w/c he willmanifest in a receipt.5 If neither specifie the applicPn, pmt shall be ma e to themost onerous ebt.

%/ S?ECIAL $ORM O$ ?+07ent 9 ,0 Cess&on

[B+(+ne] Droperty is turne over by the ebtor to the cre itor

who ac-uires the right to sell it & ivi e the netprocee s among themselves.

K" W;0 &s payment by cession + s


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Cons&-n+t&on &s t;e +'t o /e


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such was uphel thru vali service of summons to the guardian adlitem an also later thru voluntary appearance in lieu of plea ingsasking for e+ercise of (us by the same court. Accor ingly, responentCourt irecte the respon ent


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[B+ &e%+' "r inarily, on a U for a piece of work, an increase inprices will not relieve the UPor bec. such circum. was alrea yconsi ere by the parties when they entere into the U.BA K" 0hat if the prices rose so high as to be beyon thecontemplation of the parties ue to the oil crisisT Answer: elease .

B+(+ne"&ebus sic stantibus.-- #iterally means !things as they stan .!

It is short for clausula rebus sic stantibus )!agreement of thingsas they stan .!*

%his is a principle of international law w/c hol s that when 4countries enter into a treaty, they enter taking into account thecircumstances at the time it was entere into & shoul thecircumstances change as to make the fulfillment of the treatyvery ifficult, one may ask for a termination of the treaty. %hisprinciple of international law has spille over into Civil law.

T;&s /o't%&ne &s +(so '+((e/ t;e /o't%&ne o e t%e7e /& &'u(t0 H %ust%+t&on o 'o77e%'&+( o, e't.It has four )8* re-uisites:

2. %he event or change coul not have been foreseen atthe time of the e+ecution of the contract3

4. %he event or change makes the performancee+tremely ifficult but not impossible3

5. %he event must not be ue to an act of either party38. %he contract is for a future prestation. If the contract isof imme iate fulfillment, the gross ine-uality of thereciprocal prestation may involve lesion or want ofcause.

In the case of )aga , the court i not consi er the 8th elementas an element.

%he attitu e of the courts on this octrine is very strict.%his principle has always been strictly applie . %o giveit a liberal application is to un ermine the bin ing forceof an obligation. very obligation is ifficult. %heperformance must be e+tremely ifficult in or er forrebus sic stantibus to apply.

CASES"

LAGUNA V. MANABAT $NK < LN='AC%


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8. If it eteriorates through the fault of the ebtor, thecre itor may choose between the rescission of theobligation & its fulfillment, w/ in emnity for amages ineither case:

N. If the thing is improve by its nature, or by time, theimprovement shall inure to the benefit of the cre itor3

L. If it is improve at the e+pense of the ebtor, he shallhave no other right than that grante to theusufructuary.

[B+(+ne]T;e%e +%e t;%ee %e u&s&tes &n o%/e% o% A%t. 118 to +


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"ne & the other kin shall be sub(ect to the rules w/cgovern inofficious onations. +press con onation shall,furthermore, comply w/ the forms of onation.

A%t. *. Acceptance must be ma e uring the lifetime of theonor & of the onee.

A%t. )2. %he provision of article ON= notw/stan ing, no personmay give or receive, by way of onation, more than he may give

or receive by will.%he onation shall be inofficious in all that it may e+cee thislimitation.

A%t. )!. %he onation may comprehen all the presentproperty of the onor, or part thereof, provi e he reserves, infull ownership or in usufruct, sufficient means for the support ofhimself, & of all relatives who, at the time of the acceptance ofthe onation are by law entitle to be supporte by the onor.0ithout such reservation, the onation shall be re uce onpetition of any person affecte .

A%t. 8. %he onation of a movable may be ma e orally or in writing.

An oral onation re-uires the simultaneous elivery ofthe thing or of the ocument representing the right onate .

If the value of the personal property onate e+cee sfive thousan pesos, the onation & the acceptance shall bema e in writing. "therwise, the onation shall be voi .

A%t. . In or er that the onation of an immovable may bevali , it must be ma e in a public ocument, specifying thereinthe property onate & the value of the charges w/c the oneemust satisfy.

%he acceptance may be ma e in the same ee ofonation or in a separate public ocument, but it shall not takeeffect unless it is one uring the lifetime of the onor.

If the acceptance is ma e in a separate instrument, theonor shall be notifie thereof in an authentic form, & this stepshall be note in both instruments.

?%esu7


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E e't o ?+%t&+( Re7&ss&on"

A%t. 12 . %he renunciation of the principal ebt shall e+tinguish

the accessory obligations3 but the waiver of the latter shall leavethe former in force.

A%t. 2! *. %he obligation of the guarantor is e+tinguishe at thesame time as that of the ebtor, & for the same causes as allother obligations.

A%t. 2!8!. %he guarantors, even though they be soli ary, arerelease fr. their obligation whenever by some act of the cre itorthey cannot be subrogate to the rights, mortgages, &preferences of the latter.

:?%o &s&ons Co77on to ?(e/-e H Mo%t-+-e=A%t. 2!8). %he following re-uisites are essential to the contractsof ple ge & mortgage:

)2* %hat they be constitute to secure the fulfillment of

a principal obligation3+++

A%t. 12 . It is presume that the accessory obligation ofple ge has been remitte when the thing ple ge , after itselivery to the cre itor, is foun in the possession of the ebtor,or of a thir person who owns the thing.

' alane ]he accesor" obligation of pledge is e*ting ished bec. pledge is apossessor" lien.

he pres mption in this case is that the pledgee hass rrendered the thing pledged to the pledgor. his isnot a concl sive pres mption according to Art. 211+,par. 2.

A%t. 2! . In a ition to the re-uisites prescribe in article4=MN, it is necessary, in or er to constitute the contract ofple ge, that the thing ple ge be place in the possession of thecre itor, or of a thir person by common agreement.

A%t. 21!). %he ebtor cannot ask for the return of the thingple ge against the will of the cre itor, unless & until he haspai the ebt & its interest, w/ e+penses in a proper case.

T MO#E O$ E TINGUIS MENT"Con us&on o% Me%-e% o R&-;ts

A%t. 12 ). %he obligation is e+tinguishe fr. the time thecharacters of cre itor & ebtor are merge in the same person.

[B+(+ne] Confusion is the meeting in one person of the -ualities

of the cre itor & ebtor w/ respect to the sameobligation.

T;e%e +%e tFo :2= %e u&s&tes"2. It must take place between the cre itor & the

principle ebtor )Art. 24OL.*4. %he very same obligation must be involve .

R+t&on+(e Sou become your own cre itor or you become yourown ebtor.


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be enforce only by procee ing against all the ebtors. If one ofthe latter shoul be insolvent, the others shall not be liable for hisshare.

A%t. 122 . A (oint in ivisible gives rise to in emnity for amagesfr. the time anyone of the ebtors oes no comply w/ hisun ertaking. %he ebtors who may have been rea y to fulfilltheir promises shall not contribute to the in emnity beyon thecorrespon ing portion of the price of the thing or of the value ofthe service in w/c the obligation consists.

) T MO#E O$ E TINGUIS MENT"Co7


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or voi able ebt is vali & eman able3 hence, it canbe compensate .

A /e,t &s (& u&/+te/ F;en &ts e &sten'e H +7ount +%e/ete%7&ne/. +++ An a ebt is consi ere li-ui ate , notonly when it is e+presse alrea y in efinite figures w/c onot re-uire verification, but also when the etermination ofthe e+act amount epen s only on a simple arithmetical

operation. +++ 7he debt must not have been garnished. )a itional

re-uirement*

!ompensation is not prohibited by any provision of law (& eA%t&'(es 128 1288 H 1 .

A%t. 128 . Compensation shall not be proper when one of theebts arises fr. a epositum or fr. the obligations of a epositaryor of a bailee in commo atum.

Geither can compensation be set up against a cre itor who has a claim for support ue by gratuitous title, w/o pre(u iceto the provisions of paragraph 4 of article 5=2.

A%t. 1288. Geither shall there be compensation if one of theebts consists in civil liability arising fr. a penal offense.A%t. 1 . very partner is responsible to the partnership foramages suffere by it through his fault, & he cannot

compensate them w/ the profits & benefits w/c he may haveearne for the partnership by his in ustry. owever, the courtsmay e-uitably lessen this responsibility if through the partner se+traor inary efforts in other activities of the partnership,unusual profits have been reali;e .

CASES"RE?UBLIC V. #E LOS ANGELES $KM < 2=5'A%I": !ompensation of debts arising even w"o proof ofliquidation of claim is allowable where the claim isundisputed.

AC%


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' aviera ] he oblig of the depositar" to ret rn a spec thing

cannot be compensated or s bstit ted b" deliver" of athing of the same kind.

/0 f there is an oblig of the depositary to the depositorfor damages(already li uidated 3 demandable" in caseof negligence 3 if the depositor owes the depositary asum of money, can there be set4off5

A: o since it arose o t of a deposit. ot allowed b" law. (ld be a wa" of (r to collect a bad debt.

A%t. 1 . very partner is responsible to the partnership foramage suffere by it through his fault, & he cannot

compensate them w/ the profits & benefits w/c he may haveearne for the partnership by his in ustry. owever, the courtsmay e-uitably lessen this responsibility if through the partnerPse+traor inary efforts in other activities of the partnership, unusualprofits have been reali;e .

Contractual/ Conventional compensation w#c takesp

lace when parties agree to set'off even if the re- isites oflegal compensation are not present, e.g., Art. 12 2. % /aviera0 : . (omp 1. 3inds a. 4ol ntar")

A%t. 1282. %he parties may agree upon the compensation ofebts w/c are not yet ue.

[To(ent&no'2. oluntary !ompensation is not limite to obligations

w/c are not yet ue. %he parties may compensate byagreement any obligations, in w/c the ob(ectivere-uisites provi e for legal compensation are notpresent. ++

4. Nudicial !ompensation when ecree by the court in acase where there is a counterclaim, such as thatprovi e in Art. 24M5. )Baviera "#: . Comp 2. Uin s b.Fu icial*

A%t. 128 . If one of the parties to a suit over an obligation has aclaim for amages against the other, the former may set it off by

proving his right to sai amages & the amount thereof.

[B+ &e%+` W;+t &s t;e &/e+ ,e;&n/ (e-+( 'o7< %o facilitate coll+n of money. or e+pe iency.

E e't o Ass&-n7ent o C%e/&t"

A%t. 128). %he ebtor who has consente to the assignment ofrights ma e by a cre itor in favor of a thir person, cannot set upagainst the assignee the compensation w/c woul pertain to himagainst the assignor, unless the assignor was notifie by theebtor at the time he gave his consent, that he reserve his rightto the compensation.

If the cre itor communicate the cession to him but theebtor i not consent thereto, the latter may set up the

compensation of ebts previous to the cession, but not ofsubse-uent ones.

If the assignment is ma e w/o the knowle ge of theebtor, he may set up the compensation of all cre its prior to thesame & also later ones until he ha knowle ge of theassignment.

[B+(+ne]T;e%e +%e s&tu+t&ons 'o e%e/ &n t;&s +%t&'(e"

2. Assignment w/ the ebtor s consent34. Assignment w/ the ebtor s knowle ge but w/o his

consent3 &5. Assignment w/o the ebtor s knowle ge )& obviously

w/o his consent.*

Ru(es" Assignment w" the debtor3s consent Hebtor cannot set

up compensation at all unless the right is reserve .

Assignment w" the debtor3s Fnowledge but w"o hisconsent %he ebtor can set up compensation w/ acre it alrea y e+isting at the time of the assignment.

Assignment w"o the debtor3s Fnowledge Hebtor can setup as compensation any cre it e+isting at the time he

ac-uire knowle ge even if it arose after the actualassignment.

A%t. 128 . 0hen one or both ebts are rescissible or voi able,they may be compensate against each other before they are

(u icially rescin e or avoi e .

*T MO#E O$ E TINGUIS MENT")ovation

A%t. 12 1. "bligations may be mo ifie by:)2* Changing their ob(ect or principal con itions3)4*


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2. the ol & the new contracts are incompatiblein all points,

4. or that the will to novate appear by e+pressagreement of the parties

5. or in acts of e-uivalent import.

IM?LIE# NOVATION %here is no specific form re-uire foran implie novation. All that is re-uire is IGC"EDA%IBI#I%Sbetween the original & the subse-uent contracts.

A mere e+tension of the term of payment oes notresult in novation, for the perio affects only the

performance, not the creation of the obligation

CASES"

4622A& S. !O5&7 O# APP(A2S#A!7S : Eillar obtaine a (u gment against Jabriel. A writ ofe+ecution was issue , on the basis of w/c JPs W&((0Ds $o%/ Jee?0)O A76O) C8 S5CS( 5()7 A%&((4()7

AC%


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I


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)2* Dayments ma e by the owner to the contractorbefore they are ue3)4* enunciation by the contractor of any amount uehim fr. the owner.

T;&s +%t&'(e &s su, e't to t;e


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uribe notes obligations

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