Oblicon Kinds of Obligations Outline

8/10/2019 Oblicon Kinds of Obligations Outline

1/7

Kinds of Obligations

Pure

Without a condition

the effectivity and extinguishment does not depened on the fulfillment or non-fulfillment of a condition or on the expiration of a term or period and is

immediately demandable

Demandable at once

Example: I promise to pay you 1 million, Ill pay you 1 million on demend.

Conditional

a condition is attached to it

effectivity is subordinated to the fulfillment or non-fulfillment of a future and uncertain fact or event

Ill buy your land for 10 million if you pass the last bar examinations (suspensive)

Ill give you my land now, but should you fail in the last bar examinations, your ownership will cease and it will be mine again (resolutory)

Characteristics of a Condition

Future and uncertain

Past event but unknown to the parties

Not impossible

Classification of Obligations

Type of Condition

Suspensive Fulfillment of condition

results in acquisition of

rights arising out of the

obligation

I promise to do what you ask

provided that X condition is

first complied with

Demandability arising

from the obligation is

suspended.

Obligation arises or

becomes effective;

obligor can be compelled

to comply with what is

incumbent upon him

Resolutory Fulfillment of the condition

results in extinguishmentof

rights arising out of the

obligation.

Rights recognized in Art.

1188, par. 1 is applicable

to resolutory conditions.

Whatever is paid or

delivered by one or both

of the parties upon the

constitution of the

obligation shall have to


2/7

Demandable immediately

after its constitution and

rights are immediately

vested in the obligee.

Ill give you my car now but

should you pass the bar, the

donation will not beeffective. If you pass the bar,

you must return the car to

me

be returned upon the

fulfillment of the

condition. There is a

return to the status quo.

Potestative Fulfillment of the condition

depends on the will of a

party to the obligation.

When it depends exclusively

upon the will of the

creditor- condition and

obligation is valid.

Exclusively upon the debtor

in case of a suspensive

conditioncondition and

obligation are void.

Debtor in case of resolutory

conditioncondition and

obligation are valid. The

same position as thecreditor

Casual Fulfillment of the condition

on chance and or the will of

a third person

Mixed Fulfillment of condition

depends partlyon the will of

a party to the obligation and

partly on chance and/or willof a third person.


3/7

Possible Condition is capable of

realization according to

nature, law, public, policy or

good customs.

Impossible Condition is not capable of

realization according to

nature, law, public policy or

good customs; or when itrestricts certain essential

rights which are necessary

for the free development of

human activity

Conditional obligations-

both obligation and

condition are void.

Conditional obligation is

valid- if condition is

negative, it is

disregarded and

obligation rendered pure

and valid.

Only the affected

obligation is void if the

obligation is divisible,

the part not affected by

the impossible condition

shall be valid.

Only the condition is

void- if pre-existing and

does not depend on the

fulfillment of the

condition which is

impossible for its

existence, only thecondition is void.

Condition considered

not imposed if

impossible/unlawful

condition is attached to

a simple or

remuneratory donation

as well as in a

testamentarydisposition, condition is


4/7

considered not imposed

while the obligation is

valid.

Positive Condition Obligation is extinguished as soon as the time expires or if

it becomes indubitable that the event will not take place.

Negative Condition The obligation is effective from the moment the timeindicated has lapsed, or if it has become evident that the

vent cannot occur, although the time indicated has not yet

lapsed.

(Intention of the parties, taking into consideration the

nature of the obligation, shall govern if no time has been

fixed for the fulfillment of the condition.)

Obligation with a term/period

TERM CONDITION

Interval of time which is future and certain Fact or event which is future and uncertain

Must necessarily come, although it may not be known

when

May or may not happen

Exerts an influence upon the time of demandability or

extinguishment of an obligation

Exerts an influence upon the very existence of the

obligation itself

No retroactive effect unless there is an agreement to the

contrary

Has retroactive effect

Left exclusively to the will of the debtor, the existence of

the obligation is not affected, empowers the court to fixthe duration of the obligation

Left exclusively to the will of the debtor, the very existence

of the obligation is affected

Must be possible otherwise obligation is void. Must be possible otherwise obligation is void.

TERM/PERIOD

Suspensive Obligation becomes demandable only

upon arrival of a day certain

Upon the arrival or expiration of

the term or period the

demandability of the obligation is

extinguished, not the acquisition

of the right or the effectivity of theobligation


5/7

Resolutory Arrival of day certain terminates the

obligation

The fulfillment of the obligation is

demandable at once but it is

extinguished or terminated upon

the arrival of the day certain or the

expiration of the term

Legal Granted by law

Conventional Stipulated by the parties

Judicial Fixed by courtsDefinite Date/time is known beforehand

Indefinite Date/time of day certain is unknown

(e.g. death)

Express When specifically stated

Tacit As when a person undertakes to do

some work which can be done only

during a particular season

Original period Period of grace/grace period

CONJUNCTIVE DISTRUBUTIVE

When all the objects or prestations are demandable at the

same time

When only one is demandable it may either be alternative

or facultative

ALTERNATIVE OBLIGATIONS FACULTATIVE OBLIGATIONS

Several objects are due Only one object is due

May be complied with by delivery of one of the objects or

by performance of one of the prestations which are

alternatively due

May be complied with by the delivery of another object or

by the performance of another prestation in substitution

of that which is due

Choice may pertain to debtor, creditor, or third person Choice pertains only to the debtor

Loss/impossibility of all objects/ prestations due tofortuitous event shall extinguish the obligation Loss/impossibility of the object/prestations due tofortuitous event is sufficient to extinguish the obligation

Culpable loss of any of the objects alternatively due before

the choice is made may give rise to liability on the part of

the debtor

Culpable loss of the object which the debtor may deliver in

substitution before the substitution is effected does not

give rise to any liability on the part of the debtor.

SOLIDARY OBLIGATION JOINT OBLIGATION

Each one of the debtors is bound to render and/or each

one of the creditors has a right to demand entire

compliance with prestation

The whole obligation is to be paid or fulfilled

proportionately by different debtors or demanded

proportionately by different creditors


6/7

JOINT DIVISIBLE OBLIGATION JOINT INDIVISIBLE

Each creditor can demand only for the payment of his

proportionate share of the credit; each debtor can be held

liable only for the payment of his proportionate share of

the debt

Midway between joint and solidary obligations, preserving

the two characteristics of the joint obligation, in that no

creditor can do an act prejudicial to others, and no debtor

can be made to answer for others.

INDIVISIBILITY SOLIDARITYRefers to the prestation that is not capable of partial

performance

Refers to the legal t ie or vinculum juris and consequently

to the subjects pr parties of the obligation

Exists even if there is only one creditor and one debtor Exists only if there is more than one creditor or more than

one debtor (plurality of subjects)

Each creditor cannot demand more than his share and

each debtor is not bound to pay more than his share

Each creditor may demand the entire prestation and each

debtor is bound to pay the entire prestation.

Effect of breach: obligation is converted into indemnity for

damages; indivisibility is terminated

Effect of breach: solidarity remains

Only the debtors guilty of breach of obligation is liable for

damages

All the debtors are liable for the breach of the obligations

committed by a debtorOther debtors are not liable if one debtor is insolvent All debtors are proportionately liable for the insolvency of

one debtor

Passive Solidary Debtor Surety (Solidary Guarantor)

Both are solidarily liable to the creditor for the payment of the entire obligation

Liable not only for the payment of the debt of another, but

also for the payment of a deby which is properly hhis own

Liable only for the debt of another

Has a right to demand reimbursement from his co-debtors

of their shares, if he pays the entire amount of the

obligation

Acquires a right of reimbursement from the principal

debtor of the entire amount he has paid

An extension of time granted by the creditor to one of the

solidary debtors without the knowledge of the other

solidary debtors would not have the effect of releasing the

latter from obligation

An extension of time granted by the creditor to the

principal debtor would release the surety from the

obligation

Penal Clause Condition

Constitutes an obligation Does not constitute an obligation

May become demandable upon default of the

unperformed obligation and sometimes jointly with it

Never demandable


7/7

Obligation with a Penal Clause Conditional Obligation

There is already an existing obligation from the very

beginning

No obligation before the suspensive condition happens

Penalty is dependent upon the non-performance of the

principal obligation

Principal obligation itself is dependent upon the uncertain

event

Obligation with a Penal Clause Alternative Obligation

There is only one prestation Two or more obligations are due

Impossibility of the principal extinguishes also the penalty The impossibility of one without the fault of the debtor,

leaves the other subsisting

The obligor cannot choose to pay the penalty to relieve

himself of the principal unless this right is expressly

granted to him

Debtor can choose which prestation to fulfill

Obligation with a penal clause Facultative Obligation

Payment of the penalty in lieu of the principal obligation

can be made only by express stipulation

Power of the debtor to make the substitution is absolute

The creditor can demand both prestations The creditor can never demand both prestations

Obligation with a penal clause Guaranty

Obligation to pay the penalty is different from the principal

obligation

Object of the obligations of the principal debtor and the

guarantor is the same

Principal obligation and the penalty can be assumed by the

same person

Principal debtor cannot be the guarantor of the same

obligation

As a rule, penalty is extinguished by the nullity of the

obligation

Guaranty subsists even when the principal obligation is

voidable unenforceable or a natural one

Oblicon Kinds of Obligations Outline

Documents

Transcript of Oblicon Kinds of Obligations Outline