Comprehensive Reviewer: Obligations and Contracts by De Leon

Flashcards covering essential concepts from Obligations and Contracts based on De Leon (2021).

Obligation

A juridical necessity to give, to do, or not to do, enforceable in court.

Sources of Obligations

Obligations arise from law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts.

Pure Obligation

An obligation not subject to a condition or period; immediately demandable.

Conditional Obligation

An obligation subject to a future and uncertain event; not immediately demandable.

Suspensive Condition

The obligation arises only if a specified future event occurs.

Resolutory Condition

The obligation is currently demandable but will end if a certain event occurs.

Potestative Condition

A condition that depends solely on the debtor's will, making the obligation void.

Impossible Conditions

Conditions that are physically or legally impossible render the obligation void.

Reciprocal Obligations

In bilateral obligations, one party may demand fulfillment or rescission if the other party fails to comply.

Alternative Obligations

Obligations where a debtor can choose to fulfill one of several prestations.

Facultative Obligation

An obligation where only one prestation is due, but the debtor may render another in substitution.

Joint Obligations

Obligations where multiple creditors/debtors are involved but each is only liable for their share.

Solidary Obligations

Obligations where any debtor can be held for the entire obligation, regardless of shares.

Extinguishment of Obligations

Obligations can be extinguished by payment, loss of the thing due, condonation, confusion, compensation, and novation.

Payment (Definition)

The fulfillment of an obligation by delivering money or performing a service.

Consignation

The act of depositing a thing due with the court after the creditor refuses payment.

Loss of the Thing Due

An obligation to deliver a determinate thing is extinguished if it is lost or destroyed without the debtor's fault.

Condonation

The gratuitous abandonment of a right by the creditor, requiring acceptance from the debtor.

Confusion or Merger of Rights

An obligation is extinguished when the debtor and creditor become the same person.

Compensation

The extinguishment of mutual debts between two parties up to the lesser amount.

Novation

The extinguishment of an old obligation and the creation of a new one.

What are the essential requisites of a contract, according to the Civil Code, and why are these requisites so important for a contract to be valid?

first, consent of the parties; second, a definite object (meaning something certain as the subject matter); and third, a cause (or reason) for the obligation.

compensable damage

are those you can claim as a result of a breach. actual proven losses (like lost income)

Liquidated damages

are a fixed amount agreed in the contract beforehand, so they don’t require you to prove the actual loss—just that the breach occurred