Law Quiz 1 (excluding natural obligations)

What is Art. 1156? (Definition of obligation)

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

What are the four elements of an obligation?

1. creditor/obligee (the entity who has the right to demand the action, aka “a particular conduct of behavior”)

2. debtor/obligor (the entity who has to abide by or fulfill the obligation)

3. object/prestation (the object that must be given or not be given/ service that must be done or not done).

the prestation can be defective if it’s not lawful determinate or incapable of pecuniary estimation (to find a monetary value for a legal claim, value decides the court level)

4. juridical tie/vinculum (the reason behind the obligation)

in some cases, form (aka medium like oral or written) is included

Natural obligations

obligations that the court doesn’t/cannot enforce because these are acts that are moral and proper by nature / in society

Where do obligations arise from? (Art. 1157)

1. Law

2. Contracts

3. Quasi-contracts

4. Acts or omissions punished by law

5. Quasi-delicts

What is Law?

rules that society abides by

What are Contracts? How is Art 1159 related?

• agreements formed between parties that are informed by the law

• two or more people “bind” themselves to each other in exchange for something or a service

• Art. 1159 states that contracts must be made within the definitions of the law and must be made in good faith (meaning both parties hold their end of the deal, not that the contract has good intentions)

What are Quasi-contracts?

not a real contract but it’s still a legal obligation aimed at preventing one party from unfairly benefitting (usually financially) at the disadvantage of another party

• the vinculum/juridictal tie of this obligation is to compensate the “victim” or the person who acted lawfully so that the debtor does not benefit from them

(e.g. receiving someone else’s package and opening it anyway)

What are acts punishable by law (delicts)

civil wrongdoings or going against the law, causing harm. punishments like imprisonment and other liabilities like paying money

• the person becomes both civilly and criminally liable

What are Quasi-delicts / torts

acts that aren’t classified as delicts (no criminal intentions). the actor is responsible for making up for the wrongdoing but is not criminally liable.

• the person is civilly liable but not criminally liable

(e.g., homeowner fails to fix a loose roof tile and it falls on the neighbor’s car)

What are the prerequisites for a quasi-delict?

1. act or omission happens

2. act or omission causes injury to another

3. the act or omission happened because of negligence

4. both parties have no prior contractual relationship

What is Art. 1158?

“obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable”

• this sets the scope of the law or what is allowable/demandable.

(e.g. an employee can’t demand a 2 week vacation with pay if the law states it’s only 1 week)

What are some types of quasi-contracts?

1. negotiorum gestio

2. solutio indebiti

3. others

What is Negotiorum gestio (Art. 2144)

• Negotiorum gestio = the case of the officious manager

• Art. 2144 states that if someone in a business or property volunteers (i.e., not appointed by the true owner) to take charge of the management, they must continue their authority until the problem or danger is resolved

• Negotiorum gestio creates an obligation for the owner to compensate the officious manager and pay any obligations incurred in their interest, and when:

  • the owner benefits from the service/leadership of the officious manager

  • even without benefits, when the officious manager sweeps in to prevent or fix issues

  • even without benefits or imminent danger, the officious manager acted in good faith and the property/management will be returned to the owner / the officious manager will eventually step down

What is Solutio indebiti

• payment by mistake

• if someone receives something without demanding it, then they have the obligation to return it

• they cannot take advantage of receiving it without intentionally demanding it

What are other quasi-contracts

1. when someone not expecting help is given it, the person who helps has the right to claim the same help unless it was out of kindness

2. when a third person becomes responsible for funeral expenses without the knowledge of that responsibility as a relative, the other relatives must reimburse the third person if they wish

3. when property is saved by a stranger/other person during calamities, the owners of the property are obliged to compensate them

True or False: those who are criminally liable are not simultaneously civilly liable

False: Art.100 under the Revised Penal Code states that people who are criminally liable are also civilly liable, and are obligated to make up for the harm caused to the victims/property

What is Restitution?

“the restoration or return of the object of the crime”

• the court decides the amount of damages, taking into consideraton the price and sentimental value of the item

• all those affected by the crime (so even third parties with ties to the primary victims) will be indemnified.

What does Act. 2177 of the Civil Code entail?

• that the plaintiff (the one filing for a court case) cannot file for two separate cases (e.g. civil violation + criminal violation at the same time) for the same quasi-delict and be twice compensated

What are Damages?

• following a breach of contract or unlawful act, damages are incurred by the person who committed it

• pecuniary (monetary) compensation, sum of money that are awarded for the harm that was done/sustained

What is Negligence?

failure of a person to observe carefulness such that another person gets injured, especially when the situation requires a degree of alertness and precaution (e.g. driving on the road)

What is Art. 1163?

a person who is obliged to provide something must also care for it “with the diligence of a good father of a family” unless another standard of care is required

• the debtor must provide the thing in the condition that’s agreed upon

What is Art. 1164?

The creditor has the right to the “fruits” (benefits and usage) of the thing from the moment the debtor delivers it. he has no real right over it before the delivery.

item delivered = rights & fruits enjoyed

e.g., of fruits: crops that naturally sprout from the land and eggs produced by the chickens (natural), crops that are planted in the soil (industrial), and rent + interest (civil)

Natural = nature produces it 🌱🐮
Industrial = human cultivation produces it 👨‍🌾🌾
Civil = money/income produces it 💰🏠

What is Delivery?

the action that permits the creditor from having rights to the object and its fruits

“before delivery, the object is a mere expectation”

“nonnudis pactis, sed traditione dominia rerum transferentur (tradition or delivery is needed to pass ownership)”

What is a determinate thing?

“concrete, particularized object, indicated by its own individuality.”

i.e., the debtor must deliver the exact object (with its accessories), not a replica or substitute, despite being of the same quality

What is an indeterminate thing?

also called a generic thing, it is an object that’s only categorized. it’s not specific (e.g. indeterminate = motorcycle, determinate = vespa model 288 motorcycle)

• the creditor cannot demand superior quality

• the debtor cannot provide super low quality

• the debtor, despite losing the initial object, must fulfill the obligation since he can acquire any model as long as it is the object.

What happens if Failure to deliver determinate thing

• under Art. 1165, the debtor must eventually provide the object, which can be pressured/further demanded by a case for specific performance (obligor must fulfill exactly what was asked, cannot be replaced simply with money) filed by the creditor

• the debtor must provide additional damages

What happens if Failure to deliver indeterminate thing

• same as for determinate thing, but a third party can be the one to provide the object at the original debtor’s expense

• so, the creditor can source the object from another person to which the og debtor will be pay for

3rd par of Art. 1165: Liability of debtor for fortuitous event

Fortuitous event normally = NO liability.

But Article 1165(3) creates exceptions:

1. Debtor is in delay → liable despite fortuitous event. [so, despite the fortuitous event affecting or destroying the object, the debtor must still provide the object intact]

2. Same determinate thing promised to 2+ people with different interests → liable despite fortuitous event. [so, despite the fortuitous event affecting or destroying the object, the the debtor must still provide the object intact [but to only one person, causing the other to not receive the object] + any damages incurred for “double-booking” creditors/customers

Art. 1166 (accessories)

for determinate things, obligors are obliged to provide the object with its accessories, even though they aren’t mentioned in the contract (unless non-inclusion is stated)

accessories are any/all the accompanying items attached to the object

Are obligations to do applicable for specific performance?

No, because unlike obligations to give, obligors have the right to refuse to provide the service. forcing the obligor is equivalent to slavery or involuntary servitude.

What to do if the obligation to do is not done? (Art. 1167)

according to Art. 1167,

1. creditor asks another party to render the service, to be paid by the og debtor

2. creditor can have “mistakes” and sloppy work undone and redone

3. creditor can sue for damages instead of 1 and 2 or in addition to 1 and 2

What if an obligor does what has been forbidden him? (obligation not to do)

according to Art. 1168, the obligor must undo their act at their expense and can be liable for damages

What if the obligor doesn’t deliver the object in time? (Art. 1169)

they incur a legal delay when the client judicially or extrajudicially demands fulfillment (so, if the client doesn’t make that legal demand, then the obligor isn’t liable for damages and they are only in ordinary delay)

What are exceptions to incurring (or not incurring) legal delay + damages without requiring demand?

1. the law or contract states legal delay will automatically be placed upon overdue delivery

2. time is of the essence (e.g. wedding dress example)

3. demand would be useless (e.g. crops selling to another customer example)

4. reciprocal obligations (delay begins only when one part fulfills their part)

What are the grounds for damages (Art. 1170)?

1. fraud (dolo)

2. negligence (culpa)

3. legal delay (mora)

4. contravention of the tenor of the obligation (aka breach of contract)

Responsibility for Fraud (Act. 1171)

“(1) Responsibility arising from fraud is demandable in all obligations. (2) Any waiver of an action for future fraud is void”

(1) reiterates that there will always be consequences for fraud

(2) clients cannot sign a waiver that the debtor won’t be sued if the debtor commits fraud again in the future

Responsibility for Negligence (Art. 1172)

the amount of liability/damages for negligence is decided by the court

• debtors can sign a waiver for (1) simple negligence and (2) gross negligence (very bad carelessness), which is treated like fraud

Definition and Kinds of Negligence (Art. 1173)

1. Contractual Negligence (Culpa Contractual): Carelessness when a contract already exists.

2. Civil Negligence (Culpa Aquiliana): Carelessness that creates a sudden duty (vinculum juris) between people who have no prior contract.

Fortuitous events (Art. 1174)

events that happen out of a debtor’s control may release them from the obligation

• there must have been no negligence that caused the damage/destruction to the object, i.e., no human interference that lead to the destruction

What are the elements of a fortuitous event?

1. the cause of the event, + no human interference

2. event must be unforseeable

3. event must render the obligation impossible to fulfill

4. no interference from the debtor in the event and they cannot add to the damage especially due to negligence

Usury (Art. 1175)

Usury = loans with exceedingly high interest rates that go beyond the law

• this is handled by special laws and not general law

Presumptions of Payment (Art. 1176)

in relation to loans, this article talks about how the recording of receipts can deem certain payments as paid or not paid (not applicable to taxes)

• Principal and Interest: If a lender takes payment for the main debt amount and writes a receipt without noting that interest is still owed, the law assumes the interest was paid.

• Later Installments: If a lender accepts payment for a current part of a debt and writes a receipt without noting older unpaid parts, the law assumes the older parts were paid.

• Disputable Fact: This is a rebuttable presumption. The creditor can prove with records or other proof that the interest or past parts were actually not paid.

Remedies of Creditors (Art. 1177)

when collecting a debt, a creditor may exercise all their rights to satisfy the claim

Remedies:

1. Exhaust property: Try to collect from the debtor's known property. (B tries to get A’s resthouse)

2. Exercise rights (Accion Subrogatoria): Step into the debtor's shoes to collect from people who owe money to the debtor. (B can get from A’s past debtor, D)

3. Impugn fraudulent acts (Accion Pauliana): Ask the court to cancel fake or hidden sales made to cheat creditors. (A fictitiously sells the resthouse to C, so that it seems like A doesn’t own the house anymore)

Transmissibility of Rights (Art. 1178)

rights from an obligation can be passed to another party unless there’s a stipulation or law against it.

e.g. A owes B money. B can pass on the rights to C to claim the money