Uribe Notes Civil Review 2

8/13/2019 Uribe Notes Civil Review 2

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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&t0to -&e to /o o% not to /o. #e&nes CIVIL 34 5JURI#. NECESSITY6 7+es &t

eno%'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 wors, ligare, meaning !to bin!

& obw/c is a proposition use to intensify averb.

#iterally obligaremeans !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 definiteprestation.

M+n%es+" legal relation established between one party andanother whereby the latter is bound to the fulfillment of aprestation which the former may demand of him.

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

An 3is a juridical relation whereby a person (called thecreditor) may demand from another (called the debtor) theobservance of a determinate conduct, and in case of

breach, may obtain satisfaction from the assets of thelatter.

Where there is a right or power to demand, there is acorrelative 3or 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= 9 is a (uriical relation whereby a person)calle the creitor* may eman from another )ebtor* theobservance of eterminate conuct, 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 interest It creates ties that are by nature transitory It involves the power to make the (uriical tie effective

in case of nonfulfillment through an economice-uivalent obtaine fr. the ebtors patrimony.

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

:1=Active Subject %his refers to the creitor or the obligee. A '%e/&to%generally use in an obligation to give while o,(&-eeis 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 accorance w/ a criteria that ispreviously establishe.

the sub(ect is etermine in accorance w/ hisrelation to a thing & therefor it changes where thething passes fr. one person to another. %his is a


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:+= NATURAL OBLIGATIONS

Article 2845. "bligations are civil or natural.C&&( o,(&-+t&onsgive 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 ofaction to enforce their performance, but aftervoluntary fulfillment by the obligor, they authori;e theretention of what has been elivere or renere by

reason thereof. *

Reu&s&tes o N+tu%+( 3"2. there is a (uriical 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 unerstoo asspontaneous, free from frau or coercion or it may beunerstoo as meaning without knowlege or free from

error3 w/knowlege 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 ofmorals

Eno%'e+,&(&t0 %rue 3 but for

certain causescannot beenforce by law

moral uty is

ine+istent in the(uriical point ofview

E+7 Ro7+n.@@ #aw& Acts. %he latter are further classifie, as follows:)2* licit acts create by concurrence of wills )contracts*3)4* licit acts either voluntary or involuntary w/o concurrence ofwills )-uasicontract*3)5* illicit acts of civil character w/c are not punishable, voluntaryor involuntary )torts & all amages arising fr. elay*3)8* illicit acts w/c are voluntary & are punishable by law )crimes*Baviera: 0hen the source of the obligation is #aw, there is nonee for an act or omission for the obligation to arise.CA


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%herefore, even if ef. were liable to the ADA for rentals, thesewoul not accrue to the benefit of the pltff., the ol owner, but the6< Jovt.

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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B+(+ne: C%&7e +s + sou%'e o o,(&-+t&on 9 %here are manycrimes fr. w/c, civil liability arises in their commission, in aitionto the criminal penalty attache to them. %his unerlines the twoaspects in a crime: one, as +n oense +-+&nst t;e st+te, &two as +n oense +-+&nst t;e &'t&7. It is in the latter casethat civil liability is recoverable.

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


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)2* !ulpa aquiliana, also known as culpa e$tra-contractual, or ne-(&-en'eas a source of ,KUASI@#ELICT3

Joverne by Arts. 42OL42K8

G" contractual relation at all

)4* !ulpa contractual, or negligence in theperformance of a contractual .

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 & -uasielict is that ina contract, t;e%e &s +


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complete stop before alighting )#o't%&ne o 'o7


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A%t&'(e 11**.%he obligation to give a eterminatething inclues that of elivering all its +''ess&ons+n/ +''esso%&es, even though they may not havebeen mentione.

B+(+ne"T;%ee t0


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:1= LAW e.g. e+tra orinary iligence re-uire in Commoncarriers:2= St&


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9 constitute on August 2K2M:4 steel tanks 42U to be shippe fr GS elivere to Ela

?w/in 5 or 8 mos.@)Helivere3 April 4O, 2K2K*

%wo e+pellers 4NUea to be shippe fr


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obligation is un&(+te%+(, the ebtor shall appropriate thefruits an interests receive, unless from the nature ancircumstances of the obligation it shoul be inferre thatthe intention of the person constituting the same wasifferent.

In o,(&-+t&ons to /o +n/ not to /o t;e 'ou%ts s;+((/ete%7&ne &n e+'; '+se t;e %et%o+'t&e ee't ot;e 'on/&t&on t;+t ;+s ,een 'o7


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'. WIT A TERM OR ?ERIO#"

A%t&'(e 118!.0hen the ebtor bins himselfto pay when his means permit him to o so,the obligation shall be eeme to be onewith a perio, sub(ect to the provisions ofarticle 22KO.

B+(+ne: A term is a utu%ean 'e%t+&nevent upon w/c theemanability )or e+tinguishment* of an obligation epens.

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


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QAED#: !I promise to pay w/in L= ays.! %his is aterm for the benefit of the ebtor.

!I promise to pay Clara the sum of D2==,=== on orbefore "ct. 52, 2KKL.! %his is a term for the benefit ofthe ebtor.

In 9 of #oan, without interest, term is usually for benefit ofebtor, thus he may pay in avance3If there is stipulation as to interest, perio is generally for bothparties, ebtor cannot pay in avance vs. will of creitor3 unlesshe also pays interest in full.

. W;en NO


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'on'(u/e/ t;+t +s t;e (e+se 'ont%+'t F+s


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4. witness5. possession in goo faith

4. In(unctionif the sell was not consummate or notfor sale

RESOLUTORY CON#ITIONA%t. 11! 9 no e+ception, walang matitira

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

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

epens upon the will of the party to the 344. CAUSAL epens upon chance 4nor 5rperson5. MIE# 9epens partly upon the will of the party &

partly upon chance or a 5rperson

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


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7 %here is a thir possibility where the choice may bemae by a thir person upon agreement of the parties.)e+presse*

K" W;+t &s t;e te';n&'+( te%7 o t;e +'t o 7+&n- + ';o&'e&n +(te%n+t&e o,(&-+t&onsA: Concentration.

%he right to choose is inivisible 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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the creitor substituteprestation.

As to ee't o(oss

only theimpossibility of allthe prestations uew/o fault of theebtor e+tinguishesthe obligation

the impossibility ofthe principalprestation issufficient toe+tinguish theobligation, even ifthe substitute ispossible

B+(+ne:

$+'u(t+t&e o,(&-+t&ons +(F+0s &no(e ';o&'e ,0t;e /e,to%.

In theory, it is easy to istinguish a facultativeobligation fr. an alternative one. But inpractice, it is ifficult to istinguish the two.Sou (ust have to fin out what the partiesreally intene.

On(0 One prestation is H6 an enforceableby the creitor at the time of choice3 if thesubstitute becomes impossible /t fault ofebtor the is not affecte, thus noamages3

If after choosing the substitute an choice iscommunicate to creitor, the principal

prestation becomes impossible, is note+tinguishe but has become a simple thatmust be performe3 an he will be liable foramages in elay, neglect or ba faith.

If principal becomes impossible by fault ornegligence of creitor, ebtor cannot becompelle to perform the substitute )no moresubstitute, becomes simple* e+tinguishe.

16


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[JULY 2!!8 CLASS]

. AS TO RIGTS 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: Ajoint obligationis one in w/c each of the ebtors isliable only for a proportionate part of the ebt or each creitor isentitle only to a proportionate part of the creit.

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

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

the creitors sie32) ?+ss&e o&ntwhere the obligation is (oint

on the ebtors sie3 &3) Mu(t&


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An 3 to e/ T%+nse%" no effect, no rts.transferre3 assignee oes not become soliary creitor, cocreitors an ebtor/s not boun by such transfer3

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

QCD%, if the assignee is also one of the cocreitors, b/c mutual confience is incumbent.

Just&'e JBL REYES" Art. 2425 places un(ustifiable anunnecessary buren on the rts of soliary creitors upon his ownshare. %he article sh have rea as:

A solidary creditor who assigns his rts w4o the consent

of his co-creditors shall answer subsidiarily for anyprejudice 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 soliary creitors.

E'e


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A: Accoring to commentators he can. But this is angerousbec. there may alreay be an agreement on the part of thecreitors.

%olentino warns that to make the ebtors pay for the wholeamount to the emaning creitor even if partial paymenthas alreay been mae to another creitor might amount toun(ust enrichment. %his rule/restriction has alreay beenscrappe in some moern civil coes allowing freeom ofchoice to the ebtor even after eman.

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

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

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


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liable for his own & that of his coebtorsP

own

Drimary liability


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e.g., efense as to the share corresponing to otherebtors is a partial efense, i.e. suspensive conitionor perio as to the of one coebtor.

. AS TO ?ER$ORMANCE O$ ?RESTATION

+. #&&s&,(e O,(&-+t&ons

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%H on(0 one '%e/&to% /oes not +(te% o% 7o/&0 t;e


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unertaking vali covenants maybe enforce

8i9.


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2. Subsidiary )also calle +(te%n+t&e* upon nonperformance, on

ly the penalty may be emane.

+ception: 0here penalty is o&nt :'u7u(+t&e* where both the principal unertaking & penalty may beemane Art. 244O, secon sentence: !+++un(ess t;&s %&-;t ;+s ,een '(e+%(0 -%+nte/ ;&7.

Gotice the wor clearly )not e+plicitly* w/c means thatthe right can be clearly grante by implication.

4. ($clusivepenal clause is o% %e


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aition as appearing in the contracts. %o these matters theefs. Allege that these amounts to usury.

I


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by the reainess of one of the parties to perform & his lettingthe other party know3 & the other party is not reay to comply ina proper manner w/ what is incumbent upon him.

2. $o% Re'& . Gon>+(es infra.

26


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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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liable for the fruits thereof from the time they shoulhave been elivere, without the nee of anyeman.

A%t&'(e 188. A partner who has unertaken 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 to

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


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K 764( 6S O# 7I( (SS()!(L

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


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'o77on '+%%&e%Qs e7


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April 5=, 2KOK, blg. ispute was authori;e to be emolisheat e+pense of plaintiff, after further earth-uakes cause furtheramage to the blg3

ISSUE: 0"G AG AC% " J"H 0C CA6.=

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

AC%


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the same shall be eeme e+tinguishe, an each shallbear his own amages.

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 provie by law. )Con'u%%en'eH ?%ee%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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If number one is not enough, the creitor goes to any claims w/cthe ebtor may have against thir persons. %his is calleaccion subrogatoria, wherein the creitor is subrogate inthe rights of the ebtor.?e%son+( %ts. O /e,to%"

2. t. to subsistence, support he receives e+empt4. Dublic rts35. ts. Dertaining to honor8. t. to use remaining powers available to him, e.g.


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N. transfer of all or nearly all of prop of Hb who is insolventor greatly embarrasse financially

L. transfer is mae between father & sonO. failure of venee to take e+clusive possPn of propM. If alienation is gratuitous, J of transferee oes G"%

protect him ".0. 6n(ust enrichmentK. If alienation is by onerous title, transferee must be a

party to the frau, to have sn

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

An 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 uner Art. 22OO.

Rt. o t%+nse%ee to %et+&n


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In this connection, we -uote for reay reference the followingarticles of the new Civil Coe governing rescission ofcontracts:

ART. +. T;e


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payments the last being "ct. 2K5=, but was in efault as toEay payment.

%hus, venor notifie the venee that, in view of his inability tocomply with the terms of their contract, sai agreement habeen cancelle as of that ate, thereby relieving him of anyfurther obligation thereuner, an that all amounts pai by himha been forfeite in favor of the venor, who assumes theabsolute right over the lots in -uestion. %o this communication,the venee i not reply, an it appears likewise that the

venor thereafter i not re-uire him to make any furtherisbursements on account of the purchase price.

Eyrick, responent herein, commence the present action inCIAlbay, against EI 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/moif. %hat legal interest sh be compute fr ateof the cancellation of the 9. %hus this petition.

I


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the resolution of the contract was not F+%%+nte/ t;e%es


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Ruestioning the valiity of the rescission of the contract,responent file a letter complaint with the Gational ousingAuthority )GA* for reconveyance with an altenative prayer forrefun. GA, fining the rescission o&/ in the absence ofeither (uicial or notarial eman, orere Dalay, Inc. anAlberto "nstott, (ointly an severally, to refun immeiately toHumpit the amount of D25,O44.N= with 24 interest from thefiling of the complaint. Detitioners E was enie. Appeal tothe "D was also enie.

EL#: 0ell settle is the rule, as hel in previous(urispruence, that u/&'&+( +'t&on o% t;e %es'&ss&on o +'ont%+'t &s not ne'ess+%0 F;e%e t;e 'ont%+'t


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%he JAB calle a series of conferences & changethe scheule the loreBoysaw fight. %he 6


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esolution Go. 2=8K cannot interrupt the efault of the Bank inreleasing the DL5,=== bec. sai resolution merely prohibite theBank fr. making new loans.


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$ORJULY 1* 2!!8"

G. MO#ES O$ ETINGUISMENT O$ OBLIGATIONS

A%t. 121. O,(&-+t&ons +%e et&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

:= Conus&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 bt 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 delivered

or rendered# as the "ase may be.

Art. 1234. f the obli$ation has been sbstantially !erformed in $ood faith#

the obli$or may re"over as tho$h there had been a stri"t "om!lete

flfillment# less dama$es sffered by the obli$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 flly "om!lied &'.

Art. 1236. he "reditor is not bond to a""e!t !ayment or !erforman"e by

a third !erson &ho has no interest in the flfillment of the obli$ation# nless

there 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 the

debtor# he "an re"over only insofar as the !ayment has been benefi"ial to the

debtor.

Art. 1237. *hoever !ays on behalf of the debtor &'o the +no&led$e or

a$ainst the &ill of the latter# "annot "om!el the "reditor to sbro$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 be

reimbrsed by the debtor is deemed to be a donation# &'" re/ires the

debtors "onsent. t the !ayment is in any "ase valid as to the "reditor &ho

has a""e!ted it.

Art. 123!. n obli$ations to $ive# !ayment made by one &ho does not havethe free dis!osal of the thin$ de "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 atral

bli$ations.

Art. 124". Payment shall be made to the !erson in &hose favor the

obli$ation has been "onstitted# or his s""essor in interest# or any !erson

athoried 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 has

redonded to the benefit of the "reditor. "h benefit to the "reditor need

not be !roved in the follo&in$ "ases

(1) f after the !ayment# the third !ersons a"/ires the

"reditors ri$hts

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

(3) f by the "reditors "ond"t# the debtor has been led to

believe that the third !erson had athority 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 vale as# or more

valable than that &'" is de.

n obli$ations to do or not to do# an a"t or forbearan"e "annot be

sbstitted by another a"t or forbearan"e a$ainst the obli$ees &ill.

Art. 1246. *hen the obli$ation "onsists in the delivery of an indeterminate

or $eneri" thin$# &hose /ality "ir"mstan"es have not been stated# the

"reditor "annot demand a thin$ of s!erior /ality. either "an the debtor

deliver 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,!enses

re/ired by the !ayment shall be for the a""ont of the debtor. *ith re$ardto -di"ial "osts# the :les of ;ort 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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may a$ree that the obli$ation or transa"tion shall be settled in any other

"rren"y at the time of !ayment.

SE. 2. R.A. N$. 52!# as amended# entitled An A't t$ Ass*re t%e

0ni$rm Va(*e $ P%i(i&&ine $in and *rren'# is hereby re!ealed.(%!!roved on *ne 11, 1!!6

)

he re&ea( $ R.A. N$. 52! +# R.A. N$. 13has the effe"t of

rem$-ing t%e &r$%i+iti$n $n t%e sti&*(ati$n $ '*rren'# $t%er

t%an P%i(i&&ine '*rren'#, s*'% t%at $+(igati$ns $r transa'ti$ns

ma# n$ +e &aid in t%e '*rren'# agreed *&$n +# t%e &arties.

Ast 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!rden"e established in :.%. o.

529 re$ardin$ the rate of "onversion remains a!!li"able. hs# in

Asia World Recruitment, Inc. v. National Labor Relations

Commission,13 the ;ort# a!!lyin$ :.%. o. 8183# sstained the

rlin$ of the B:; that $+(igati$ns in $reign '*rren'# ma# +e

dis'%arged in P%i(i&&ine '*rren'# +ased $n t%e &re-ai(ing rate

at t%e time $ &a#ment.

CONCE?T O$ ?AYMENT

A%t. 122. ?+07ent 7e+ns not on(0 t;e /e(&e%0 o 7one0,ut +(so t;e


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)ii* Govation

In both cases, there is a voluntary change in the ob(ect.

2. 6ntegrity %here must be elivery of the entire prestationue. )Art. 2455* or completely fulfille3

T;e e'e


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water an there were no roas in the subv. )for e2uity andjustice*

Ie/ ,0 t;e '%e/&to% t;e


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Baviera: Gumber three is stoppel in


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%CDasig be withrawn to satisfy the (ugment obligation. Hefenantspouses )petitioners* file a motion to lift the writ of e+ecution on thegroun that the (ugment ebt ha alreay been pai. %rial courtenie on the groun that payment in cashiers check is not payment inlegal tener an that payment was mae by a thir party other than theefenant. E was enie. CA affirme, holing that payment bycashiers check is not payment in legal tener as re-uire by A Go.N4K. E enie again.

I


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%his view fins support in the ruling of this Court in the case of ngelvs. 8elasco / o. where this Court hel that even if the obligationassume by the efenant was to pay the plaintiff a sum of moneye+presse in American currency, the inemnity to be allowe shoulbe e+presse in Dhilippine currency at the rate of e+change at the timeof (ugment rather than at the rate of e+change prevailing on the ateof efenants breach. %his is also the ruling of American court asfollows:

T;e +(ue &n /o7est&' 7one0 o +


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ining of suff.avail.funs by CA oes not constitute proof oftener of pymnt. )non se2uitur*

Ten/e% o ?+07ent involves a positive & unconi. Act by theobligor of offering legal tener currency as payment to oblige forthe & emaning that the latter accept the same.


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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 oler 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 creitor, 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 ismae by the party for whose benefit the term has beenconstitute, application shall not be mae as to ebts w/c are notyet ue.

If the ebtor accepts fr. the creitor a receipt in w/c anapplication of the payment is mae, the former cannot complainof the same, unless there is a cause for invaliating the contract.

[To(ent&no] Gecessary that s must all be ue "nly in case of mutual agreement, or upon consent of

the 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 prouces interest, payment of the principalshall not be eeme to have been mae until the interests havebeen covere.

A%t. 12). 0hen the payment cannot be applie in accorancew/ the preceing 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 & buren, 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 mae to themost onerous ebt.

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

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

who ac-uires the right to sell it & ivie the netprocees among themselves.

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


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


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AC%


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eath of accuse* o t;e o,(&-ee )arreste by govt*,o% t;e (+F )law punishing him is repeale*. O% +(soun/e% Ru(e 11 se'. 1*.

A%t. 12*. 0hen the service has become so ifficult as to bemanifestly beyon the contemplation of the parties, the obligormay also be release therefr., in whole or in part.

[B+&e%+' "rinarily, on a U for a piece of work, an increase inprices will not relieve the UPor bec. such circum. was alreay

consiere 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 crisisTAnswer: 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 hols 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 et%e7e /&&'u(t0H %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 is

of immeiate fulfillment, the gross ine-uality of thereciprocal prestation may involve lesion or want ofcause.

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

%he attitue of the courts on this octrine is very strict.%his principle has always been strictly applie. %o giveit a liberal application is to unermine the bining forceof an obligation. very obligation is ifficult. %heperformance must be e+tremely ifficult in orer forrebus sic stantibus to apply.

CASES"

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


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loss or eterioration of the thing uring the penency of theconition.

2. If the thing is lost w/o the fault of the ebtor, theobligation shall be e+tinguishe3

4. If the thing is lost through the fault of the ebtor, heshall be oblige to pay amages3 it is unerstoo thatthe thing is lost when it perishes, or goes out ofcommerce, or isappears in such a way that itse+istence is unknown or it cannot be recovere3

5. 0hen the thing eteriorates w/o the fault of the ebtor,

the impairment is to be borne by the creitor38. If it eteriorates through the fault of the ebtor, the

creitor may choose between the rescission of theobligation & its fulfillment, w/ inemnity for amages ineither case:

N. If the thing is improve by its nature, or by time, theimprovement shall inure to the benefit of the creitor3

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 %eu&s&tes &n o%/e% o% A%t. 118 to +


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A%t. *. %he legacy referre to in the preceing article shalllapse if the testator, after having mae it, shoul bring an actionagainst the ebtor for payment of his ebt, even if such paymentshoul not have been effecte at the time of his eath.

%he legacy to the ebtor of the thing plege by him isunerstoo to ischarge only the right of plege.

,. B0 A-%ee7ent

A%t. 12!. Cononation or remission is essentially gratuitous, &

re-uires the acceptance by the obligor. It may be maee+pressly or impliely.

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

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

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

%he onation shall be inofficious in all that it may e+cee this

limitation.

A%t. )!. %he onation may comprehen all the presentproperty of the onor, or part thereof, provie 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 reuce onpetition of any person affecte.

A%t. 8. %he onation of a movable may be mae orally or inwriting.

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+ceesfive thousan pesos, the onation & the acceptance shall bemae in writing. "therwise, the onation shall be voi.

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

%he acceptance may be mae 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 mae in a separate instrument, theonor shall be notifie thereof in an authentic form, & this step

shall be note in both instruments.

?%esu7


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Ield: Ses. Go satisfactory proof as to allegation of coercion &trickery on VPs wife. It is an un-uestionable fact that the instruproving the ebt now claime passe to the possession of theHr. or this reason, unless the contrary is proven, it must bepresume that in accance w/ the provisions of the law, thatelivery was voluntarily mae. %his fact implies a renunciationof the a+n w/c Cr ha for the recovery of his creit. It shl benote that the oc is of a private nature, the only case sub( to theprovs of Articles 22MO to 22MK "CC, so that a tacit renunciationof the ebt may be presume, in the absence of proof that theoc was elivere for some other reason than the gratuitouswaiver of the ebt & the complete e+tinction of the oblig to pay.

Ee'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 soliary, arerelease fr. their obligation whenever by some act of the creitorthey 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 plege & mortgage:

)2* %hat they be constitute to secure the fulfillment ofa principal obligation3

+++

A%t. 12. It is presume that the accessory obligation of plegehas been remitte when the thing plege, after its elivery tothe creitor, is foun in the possession of the ebtor, or of a thirperson who owns the thing.

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

he presmption in this case is that the pledgee hassrrendered the thing pledged to the pledgor. his isnot a conclsive presmption according to Art. 211+,par. 2.

A%t. 2!. In aition to the re-uisites prescribe in article4=MN, it is necessary, in orer to constitute the contract ofplege, that the thing plege be place in the possession of thecreitor, or of a thir person by common agreement.

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

T MO#E O$ ETINGUISMENT"Conus&on o% Me%-e% o R&-;ts

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

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

of the creitor & ebtor w/ respect to the sameobligation.

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

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

R+t&on+(e Sou become your own creitor or you becomeyour own ebtor.


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A%t. 121. Dayment mae by one of the soliary ebtorse+tinguishes the obligation. If two or more soliary ebtors offerto pay, the creitor may choose w/c offer to accept.

e who mae the payment may claim fr. his coebtorsonly the share w/c correspons to each, w/ the interest for thepayment alreay mae. If the payment is mae before the ebtis ue, no interest for the intervening perio may be emane.

0hen one of the soliary ebtors cannot, bec. of hisinsolvency, reimburse his share to the ebtor paying theobligation, such share shall be borne by all his coebtors, in

proportion to the ebt of each.

e. In/&&s&,(e O,(&-+t&ons

A%t. 12!. If the ivision is impossible, the right of the creitorsmay be pre(uice only by their collective acts, & the ebt canbe enforce only by proceeing against all the ebtors. If one ofthe latter shoul be insolvent, the others shall not be liable for hisshare.

A%t. 122. A (oint inivisible gives rise to inemnity for amagesfr. the time anyone of the ebtors oes no comply w/ hisunertaking. %he ebtors who may have been reay to fulfilltheir promises shall not contribute to the inemnity beyon thecorresponing portion of the price of the thing or of the value of

the service in w/c the obligation consists.

)TMO#E O$ ETINGUISMENT"Co7


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as principals. %here can be no compensation if 2 partyoccupies only a representative capacity. #ikewise,there can be no compensation if in one obligation, aparty is a principal obligor & in another obligation, he isa guarantor.

2. #ungible 7hings 'ue %he wor consumable iswrong. 6ner Art. 82M, consumable things are thosew/c cannot be use in a manner appropriate to theirnature w/o their being consume. In a reciprocalobligation to eliver horses, the things ue are notconsumable3 yet there can be compensation.)%olentino.* %he proper terminology is !fungible! w/crefers to things of the same kin w/c in payment can be

substitute for another.3. 4aturity of 'ebtsBoth ebts must be ue to permit

compensation.4. 'emandable H 2iquidated 'ebts %olentino:

Hemanable means that the ebts are enforceable incourt, there being no apparent efenses inherent inthem. %he obligations must be civil obligations,e+cluing those that are purely natural. +++ Before a(uicial ecree of rescission or annulment, a rescissibleor voiable ebt is vali & emanable3 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 consiere li-uiate, notonly when it is e+presse alreay in efinite figures w/c onot re-uire verification, but also when the etermination ofthe e+act amount epens only on a simple arithmeticaloperation. +++

7he debt must not have been garnished. )aitionalre-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 commoatum.

Geither can compensation be set up against a creitor

who has a claim for support ue by gratuitous title, w/o pre(uiceto 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 cannotcompensate them w/ the profits & benefits w/c he may haveearne for the partnership by his inustry. owever, the courtsmay e-uitably lessen this responsibility if through the partnerse+traorinary 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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GAGH" "I#AG purchase fr


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A%t. !1. %he right to receive support cannot be renounce3 norcan it be transmitte to a thir person. Geither can it becompensate w/ what the recipient owes the obligor.

owever, support in arrears may be compensate &renounce, & the right to eman the same may be transmitteby onerous or gratuitous title.

[B+&e%+' Gote that Art. 5=2 of the GCC is not foun in C. $utu%e su


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or e+ample, a change fr. straight terms toinstallment terms & a change fr. noninterestbearing obligation to an interest bearing oneare changes in the principal conitions.

N. 4i$ed novation w/c is a combination of bothsub(ective & ob(ective novation.

Reu&s&tes o No+t&on"

2. %here must be a previous vali obligation34. Agreement of the parties to create the new obligation3

5. +tinguishment of the ol obligation. )I woul consierthis an effect, rather than a re-uisite of novationBalane*3

8. Valiity of the new obligation. )%iu


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agreement, or by the acts of the parties whose intention toissolve the ol obligation as a consieration of the emergenceof the new one must be clearly iscernible.

6f old debtor is not released, no novation occurs Hthe third person who assumed the obligation becomes a

co-debtor or surety or a co-surety. Again, if sub(ectivenovation by a change in the person of the ebtor is to occur, it isnot enough that the (uriical relation bet. the parties to theoriginal contract is e+tene to a thir person. It is essential thatthe ol ebtor be release fr. the obligation, & the thir person ornew ebtor take the place in the new relation. I the ol ebtoris not release, no novation occurs & the thir person who hasassume the obligation of the ebtor becomes merely a coebtor or surety or a cosurety.

)ovation is not implied when the parties to the newobligation e$pressly negated the lapsing of the old

obligation. Geither can the petitioners anchor theirefense on implie novation. Absent an une-uivocal eclarationof e+tinguishment of a pree+isting obligation, a showing ofcomplete incompatibility bet. the ol & the new obligation )&nothing else* woul sustain a fining of novation by implication.But where, as in this case, the parties to the new obligatione+pressly recogni;e the continuing e+istence & valiity of the ol

one, where, in other wors, the parties e+pressly negate thelapsing of the ol obligation, there can be no novation. %heissue of implie n ovation is not reache at all.

#5A S. 8AP *?9 P R>?0)OA76O) C8 S5CS(5()7 A%&((4()7

AC%


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P(OP2(3S CA)D S. S8(23S *@9 S R9?0A%I": 1hen does novation taFe placeB )ovation is neverpresumed.

Absence of e$istence of an e$plicit novation norincompatibility between the old H the new agreements.

)ovation was not intended in the case at bar asthe &(4 was taFen as additional security for theperformance of the contract.

+f objective novation is to ta#e place, it is essentialthat the new obligation e@pressly declare that the old obligationis to be e@tinguished or that the new obligation be on every point

incompatible w4 the old one. +++AC%


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IN#S O$ NOVATION"

+. Le-+(

A%t. 1!2. It is presume that there is legal subrogation:

:1= W;en + '%e/&to%


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Gene%+( %u(e: In a novation, the accesory obligation ise+tinguishe.E'e


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Documents

Uribe Notes Civil Review 2