BADM 23

• Pure obligation


  An obligation whose performance does not depend upon a future and uncertain event or a past event unknown to the parties nor is subject to a period and is demandable at once
• Conditional obligation


  An obligation whose performance depends upon a future and uncertain event or a past event unknown to the parties
• Types of conditions

  • Suspensive condition
  • Resolutory condition
  • Potestative condition
  • Casual condition
  • Mixed condition
• A condition that is suspensive, potestative, and dependent upon the sole will of the debtor makes the obligation void
• Impossible conditions, whether in fact or in law, makes the obligation void
• A condition not to do a factually impossible thing is considered not to have been agreed upon
• A condition not to do a legally impossible thing is valid
• Rules governing loss, deterioration, or improvement of a determinate thing subject to a suspensive condition

  1. If the thing is lost without the fault of the debtor, the obligation shall be extinguished

  2. If the thing is lost through the fault of the debtor, he shall be obliged to pay damages

  3. When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor

  4. If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the obligation and its fulfillment, with indemnity for damages in either case

  5. If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor

  6. If it is improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary
• Reciprocal obligation


  One which imposes counterpart prestations on the parties, one prestation being the correlative of the other
• Obligation with a term or period

  An obligation whose performance is subject to a period or term
• Consequences of suspensive period being for the benefit of different parties

  • If for the benefit of both (general rule) - The creditor cannot demand nor, on the other, can the debtor compel acceptance of, payment before the arrival of the period
  • If for the creditor's benefit - The creditor may demand payment at any time but the debtor cannot compel acceptance before the arrival of the period
  • If for the debtor's benefit - The debtor may compel acceptance of performance at any time but the creditor cannot demand performance until the arrival of the period
• Alternative obligation


  An obligation which specifies two or more prestations, only one or some, but not all of which should be performed
• Rules governing loss, whether fortuitous or culpable, of some or all of the prestations in alternative obligations

  If the choice belongs to the debtor:

  a. When only one prestation is left, either through a fortuitous event or the through debtor's acts - he loses the right of choice

  b. If choice is limited through the creditor's fault or negligence - rescission (resolution) with damages

  c. If all prestations are lost through the debtor's fault - damages for creditor (measure of damages will be the value of the last prestation lost)

  d. If some prestations are lost through the debtor's fault - the debtor can still choose from the remaining ones

  e. If all prestations are lost through a fortuitous event - obligation is extinguished

  f. If all prestations but one are lost through fortuitous event and the last one is lost through the debtor's fault - damages for creditor, on the basis of the value of the last prestation

  g. If all but one is lost through debtor's fault and last one through fortuitous event - disputed but the better rule is that the obligation is extinguished

  If the choice belongs to the creditor:

  a. If one or some prestations are lost through fortuitous event - the creditor can choose from the remainder

  b. If one or some prestations are lost through the debtor's fault - the creditor may choose from the remainder or the value of any of those that have disappeared, with damages

  c. If all prestations are lost through the debtor's fault - creditor may choose the value of any of them, with damages

  d. If some prestations are lost through the creditor's fault - he can choose from the remainder

  e. If all prestations are lost through a fortuitous event - obligation is extinguished

  f. If all prestations are lost through the creditor's fault - obligation is extinguished
• Facultative obligation


  An obligation wherein only one prestation has been agreed upon, but the obligor may render another in substitution
• Rules in cases of nullity/impossibility/loss of the prestation in facultative obligations

  Nullity:

  1. Of principal prestation - obligation is void

  2. Of substitute prestation - obligation is valid but right of substitution not available

  Impossibility/Loss:

  1. Of principal prestation - obligation is extinguished

  2. Of substitute prestation - obligation to perform principal prestation subsists
• Joint obligation

  An obligation in which each debtor is liable only for a proportionate part of the debt, and the creditor is entitled to demand only a proportionate part of the credit from each debtor
• Solidary obligation


  An obligation in which each of the debtors is liable for the entire obligation, and each of the creditors is entitled to demand the satisfaction of the whole obligation from any or all of the debtors
• As a general rule, an obligation with multiple parties on either or both sides is a joint one
• The indivisibility of an obligation does not necessarily give rise to solidarity. Nor does solidarity of itself imply indivisibility
• When one of the solidary debtors cannot, because of his insolvency, reimburse his share to the debtor paying the obligation, such share shall be borne by all his co-debtors, in proportion to the debt of each
• The remission made by the creditor of the share which affects one of the solidary debtors does not release the latter from his responsibility towards the co-debtors, in case the debt had been totally paid by anyone of them before the remission was effected
• Examples of indicators of solidary obligations


  • Individually and jointly
  • Jointly and severally
• Divisible obligation


  An obligation which is susceptible of partial performance
• Indivisible obligation


  An obligation which is not susceptible of partial performance
• Obligation with a penal clause

  An accessory undertaking to assume greater liability on the part of an obligor in case of breach of an obligation
• Causes of extinguishment of obligations

  • Payment or performance
  • Loss of the thing due
  • Condonation or remission of the debt
  • Confusion or merger of the rights of creditor and debtor
  • Compensation
  • Novation
• Payment or performance


  Means not only the delivery of money but also the performance, in any other manner, of an obligation
• Requisites of payment

  • Identity
  • Integrity
  • Indivisibility
• Rules on place of payment

  Primary Rule - the place agreed upon

  Secondary Rule - the place where the thing was located at the time of the constitution of the obligation, if the obligation is to deliver a determinate thing

  Tertiary Rule - the debtor's domicile
• If the debt produces interest, payment of the principal shall not be deemed to have been made until the interests have been covered
• Special forms of payment


  • Dacion en pago/Dation in payment
  • Application of payments
  • Payment by cession
  • Consignation
• Dacion en pago/Dation in payment


  A special mode of payment by virtue of which the debtor offers another thing to the creditor who accepts it as the equivalent of payment of an outstanding debt
• Application of payments


  The designation or specification of the debt or debts to which an amount paid by a debtor, who has several demandable obligations in favor of the same creditor, should be applied
• Payment by cession


  A special mode of payment wherein the debtor may cede or assign his property to his creditors in payment of his debts. This cession, unless there is stipulation to the contrary, shall only release the debtor from responsibility for the net proceeds of the thing assigned
• Consignation


  The act of depositing the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to accept payment and it generally requires a prior tender of payment
• In an obligation to deliver a generic thing, the loss or destruction of anything of the same kind does not extinguish the obligation
• Condonation or remission of the debt


  An act of liberality by virtue of which, without receiving any onerous consideration or equivalent, the creditor renounces the enforcement of the obligation, thus extinguishing it in its entirely or in the part or aspect of the same to which the condonation refers
• Confusion or merger of the rights


  The meeting in one person of the qualities of creditor and debtor with respect to the same obligation
• The obligation is extinguished from the time the characters of creditor and debtor are merged in the same person
• Merger which takes place in the person of the principal debtor or creditor benefits the guarantors. Confusion which takes place in the person of any of the latter does not extinguish the obligation