Obligations

1) Obligations [@eria_cpa].pdf

Page 1 of 26 @eria_cpa OBLIGATIONS General Provisions ARTICLE 1156 – Definition An obligation is a juridical necessity to give, to do, or not to do. Obligation − are civil or natural. (1) Civil Obligations − give a right of action to compel their performance. Example: → Civil Obligation of parents to give support to their children under Family Code (2) Natural Obligations − based on equity & natural law. − do not grant a right of action to enforce their performance o but after voluntary fulfillment by the obligor – they authorize the retention of what has been delivered or rendered by reason thereof. Essential requisites of an obligation. 1) A passive subject (debtor/obligor) – bound to perform the prestation 2) An active subject (creditor/obligee) – has the right to demand the prestation. 3) Object or prestation (subject matter of the obligation) − conduct required to be observed by the debtor. − without the prestation, there is nothing to perform. 4) A juridical or legal tie (Vinculum / Vinculum Juris / Efficient Cause) − can be any of the 5 sources of obligations. − the tie that binds the parties to the obligation. Page 3 of 26 @eria_cpa (2) Solutio indebiti − when something is received when (requisites): a) There is no right to receive the thing delivered b) The thing was delivered through a mistake KINDS OF NEGLIGENCE – ACCORDING TO SOURCE OF OBLIGATION Contractual Negligence (Culpa Contractual) Criminal Negligence (Culpa Criminal) Civil Negligence (Culpa Aquilina) − negligence in contracts resulting in their breach − not a source of obligation the wrong or negligence in the commission of a crime itself is the source of an obligation the wrong or negligence committed independent of contract and without criminal intent.  Multiple Sources of Obligations A single act can be the source of multiple obligations.  Double Recovery NOT ALLOWED No one can recover twice for the same negligent act. Page 4 of 26 @eria_cpa Nature & Effect of Obligations Real Obligation (To Give) SPECIFIC GENERIC Thing: Specific or Determinate − particularly designated or physically separated from others of the same class − debtor cannot substitute it with another although it is of the same kind and quality without the consent of the creditor. Thing; Generic or Indeterminate − refers only to a class or genus to which it pertains − it cannot be pointed out with particularity; identified only by its specie − debtor can give anything of the same class as long as it is of the same kind Duties of debtor in obligation to give a determinate thing: 1) Preserve or take care of the thing: a. Diligence required by LAW b. Diligence required by STIPULATION c. General: Diligence of a good father of a family (bonus pater familia) 2) Deliver the thing itself 3) Deliver the fruits of the thing (Article 1164) 4) Deliver the accessions & accessories of the thing (Article 1166) 5) Answer for damages in case of non-fulfillment or breach (Article 1170) Obligation to give something which is indeterminate 1) To deliver a thing which must be neither superior nor inferior quality 2) To pay damages in case of breach of the obligation Remedies for Breach of Obligation 1. Primary: a. Specific Performance – if legally & physically possible b. Substitute Performance – if (a) is not possible c. Equivalent – convert to monetary obligation d. Rescission – (for reciprocal oblig.) cancellation & mutual restitution 2. Ancillary: (Art. 1177) a. Attachment & Execution → Attachment – “reservation” of real property while case is pending → Execution – when b. Subgrogatoria – subrogation c. Accion Pauliana – last resort, subsidiary remedy, same with rescission Remedies for Breach of Obligation 1. Specific Performance 2. Substitute Performance – the creditor can have another person to have such kind of thing be delivered at the cost of the debtor + damages