Concept of Delay: General Rule: No Demand, No Delay Exceptions

3kinds
a. Mora solvendi – debtor’s delay to give (real ob.), to do (personal ob.)

b. Mora accipiende – creditor’s delay to accept
c. Compensatio Morae – delay of both in reciprocal obligation
CONCEPT OF DELAY
General Rule: No demand, No delay
Exceptions:
1. Law states
2. Obligation states
3. Time is the essence
4. Demand be useless if delay
5. Debtor guilty of delay
EFFECTS OF DELAY
1. Damages
2. When to deliver determinate thing, STILL LIABLE in fortuitous event.
2. FRAUD/DOLO – conscious, deliberate, intentional evasion of fulfillment
2Kinds
a. Dolo causante/Causal fraud – fraud in obtaining consent; consent is defective, contract
is voidable. Remedy: annulment
b. Dolo incidente/Incidental fraud – fraud w/c vitiates consent. Remedy: damages
3. NEGLIGENCE/CULPA – voluntary act/omission; no bad faith intended

3Kinds
a. Culpa aquiliana/Civil negligence – quasi-delict/torts
b. Culpa contractual/Contractual negligence – breach
c. Culpa criminal/Criminal negligence – crime/delict
4. Contrary to the terms of obligation

2 RULES OF PRINCIPAL & INSTALLMENT
1. Receipt of principal w/o mention of interest, presumed interest is paid also.
2. Receipt of latter installment w/o mention of prior installment, presumed prior installment
is paid also.
4 SUCCESSIVE RIGHTS OF CREDITOR to satisfy claim against DEBTOR

1. Exact payment
2. Attach debtor’s properties
3. Accion subrogatoria – exercise rights & actions except inherent in person
4. Accion pauliana – cancel acts/contracts by debtor to defraud creditor
TRANSMISSIBILITY OF RIGHTS
General Rule: ALL RIGHTS are transmissible.
Exceptions:
1. Law states
2. Contract states
3. Obligation is purely personal
10 Kinds of Obligation
1. Pure
2. Conditional
3. Alternative
4. Facultative
5. Joint
6. Solidary
7. Divisible
8. Indivisible
9. Obligation w/ a period
10. Obligation w/ a penal clause
1. PURE OBLIGATION
- w/o condition, demandable at once (pure has resolutory condition/period)
2. CONDITIONAL OBLIGATION
- there is condition in performance; future & uncertain
2Kinds
a. Suspensive condition – happening of condition gives RISE to obligation
b. Resolutory condition – happening of condition EXTINGUISHES obligation
6 MISCELLANEOUS RULES ON CONDITIONAL OBLIGATION

1. Impossible conditions, contrary to law, shall ANNUL obligation.
2. The condition not to do an impossible thing is considered not agreed upon.
3. The condition that happens in determinate time, EXTINGUISHES obligation.
4. The condition that happens in INDETERMINATE time, obligation only effective at arrival.
5. The condition is fulfilled if DEBTOR prevents fulfillment.
6. The effect of conditional obligation, once fulfilled:
- to give: retroact to the day of constitution of obligation
- has reciprocal prestations: fruits & interests be mutually compensated
- has unilateral obligation: debtor shall give fruits & interests
RULES in case of Loss, Improvement, or Deterioration of thing during the pendency of

condition
1. LOST
a. w/ debtor’s fault – damages
b. w/o debtor’s fault – extinguishes obligation
2. DETERIORATION
a. w/ debtor’s fault - (1) cancel obligation & damages; or (2) fulfill obligation w/ damages
b. w/o debtor’s fault – creditor suffer impairment
3. IMPROVEMENT
a. By nature/time – benefit to creditor
b. at expense of debtor – debtor no right than that granted to usufructuary (debtor no right to
compensate amount for improvement)
EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITION

General Rule: The obligation becomes effective retroactively to the day obligation was
constituted.
Exceptions:
1. In reciprocal obligation, fruits & interests during pendency of condition shall compensate
each other.
2. In unilateral obligation, debtor gets fruits & interests unless there is a contrary intent.
3 EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION

1. Extinguish obligation.
2. Both parties restore what they received plus fruits & interests.
3. The rule on L, D, or I will apply to person who has to return the thing.
When one of debtors in reciprocal obligation does not comply w/ his obligation
1. The right of injured party is (1) cancel contract & damages; or (2) fulfill obligation & damages
3 Kinds of Obligation (Accdng to PERSON OBLIGED)

1. UNILATERAL – only 1 party obliged to comply
2. BILATERAL – both parties; performance not same time
3. RECIPROCAL – both parties; performance same time
3. OBLIGATION W/ A PERIOD
- demandability/extinguishment subject to the expiration of period
PERIOD – interval of time; either suspends demandability or produces extinguishment

DAY CERTAIN – must come, not known when
7 CASES CONSIDERED TO BE “OBLIGATION W/ A PERIOD”

1. Little by little
2. In partial payment
3. Payable ASAP
4. When I can afford it
5. When I have the money
6. When I am able to
7. When my means permit me to do so
PERIOD CONDITION
certain uncertain
future only future/past but unknown
(*influence upon (*) on the very existence

obligation) only upon its of obligation itself
demandability
FOR WHOSE BENEFIT IS THE PERIOD?

General Rule: Both the debtor & creditor.
Therefore, NEITHER of them can demand performance of obligation.
Exception: If the term of obligation has to favor one of them.
5 INSTANCES WHEN DEBTOR LOSES RIGHT TO USE “PERIOD”

1. Debtor is insolvent.
2. Debtor attempts to abscond.
3. Impairment of guarantees/securities.
4. Failure to furnish guarantees/securities promised.
5. Violation of undertaking.
4. ALTERNATIVE OBLIGATION
- w/ 2 or more prestations, only 1 is due.
5. FACULTATIVE OBLIGATION
- w/ ONLY 1 prestation but can be substituted.
ALTERNATIVE prestations LOST w/ debtor’s fault

Creditor entitled to damages but needs ff requisites:
1. Debtor can choose.
2. All prestations lost/become impossible due to debtor’s fault.
ALTERNATIVE FACULTATIVE
OBLIGATION OBLIGATION
several prestations due, one prestation due, but

giving one is sufficient can be subtituted
right to choose (debtor) right to choose DEBTOR

unless granted to creditor ONLY
If 1 of the prestation is nullity of principal carries

illegal, others may be w/ it nullity of accessory/
valid, obligation remains
substitute
loss/impossibility of ALL loss/impossibility of

prestations due, w/o presta-tion due, w/o
debtor’s fault, debtor’s fault,
extinguishes obligation extinguishes obligation
(3) SUMMARY OF RULES, OBLIGATIONS, & RIGHTS OF DEBTOR IN ALTERNATIVE OBLIGATION

1. If 1 of prestations lost through fortuitous event, shall still be perform by choosing (creditor)
from the remainder.
2. If 1 of prestations lost through debtor’s fault, creditor may claim any of remainders w/
damages.
3. If ALL prestations lost through debtor’s fault, creditor choose price w/ damages.
RULES on LOSS/DETERIORATION of the thing intended as SUBSTITUTE in FACULTATIVE
OBLIGATION
1. If there is a loss/deterioration of thing intended as substitute, debtor is NOT liable if NOT
HIS FAULT.
But if substitution is already made, debtor is liable for loss of substitute when in DELAY,
NEGLIGENCE, or FRAUD.
6. JOINT OBLIGATION
- obligation is to be paid proportionately by debtors or to be demanded proportionately by
creditors
7. SOLIDARY OBLIGATION
- each one of debtors has right to render or each one of creditors has right to demand the entire
compliance w/ prestation
MAXIMS & SYNONYMS
MAXIMS SYNONYMS
JOINT Obligation “To each his proportionate

own”
SOLIDARY “One for all, all individually &

Obligation for one” collectively
(3) SOLIDARY OBLIGATION EXIST ONLY IF: *RULES

1. Law states
2. Stipulation states
3. Nature of obligation requires
2 PRESUMPTIONS THAT OBLIGATION IS JOINT

1. The debts be divided as many shares as there are debtors/creditors.
2. The debtors/creditors are distinct from one another.
8. DIVISIBLE OBLIGATION
- prestation is capable of partial performance
9. INDIVISIBLE OBLIGATION
- prestation incapable of partial performance
10. OBLIGATION W/ A PENAL CLAUSE

- one w/ accessory undertaking attached to obligation to assume greater liablity in case of
breach/non-fulfillment of obligation
3 PURPOSES OF PENAL CLAUSE

1. Ensure performance of obligation
2. Substitute for damages & interest in case of noncompli-ance
3. Penalize debtor in case of breach
In case obligation has a PENAL CLAUSE

General Rule: Penalty takes the place of damages & interest in case of non-compliance.
Exceptions:
1. Stipulation states.
2. Debtor refuse to pay penalty.
3. Debtor guilty of fraud in performance of obligation.
NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL CLAUSE

Nullity of principal obligation = nullity of penal clause
Nullity of penal clause = NOT nullity of principal obligation
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3kinds

a. Mora solvendi – debtor’s delay to give (real ob.), to do (personal ob.)

3. NEGLIGENCE/CULPA – voluntary act/omission; no bad faith intended

4. Contrary to the terms of obligation

4 SUCCESSIVE RIGHTS OF CREDITOR to satisfy claim against DEBTOR

6 MISCELLANEOUS RULES ON CONDITIONAL OBLIGATION

RULES in case of Loss, Improvement, or Deterioration of thing during the pendency of

EFFECTS OF FULFILLMENT OF SUSPENSIVE CONDITION

3 EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION

3 Kinds of Obligation (Accdng to PERSON OBLIGED)

PERIOD – interval of time; either suspends demandability or produces extinguishment

7 CASES CONSIDERED TO BE “OBLIGATION W/ A PERIOD”

future only future/past but unknown

(*influence upon (*) on the very existence

FOR WHOSE BENEFIT IS THE PERIOD?

5 INSTANCES WHEN DEBTOR LOSES RIGHT TO USE “PERIOD”

ALTERNATIVE prestations LOST w/ debtor’s fault

several prestations due, one prestation due, but

right to choose (debtor) right to choose DEBTOR

If 1 of the prestation is nullity of principal carries

loss/impossibility of ALL loss/impossibility of

(3) SUMMARY OF RULES, OBLIGATIONS, & RIGHTS OF DEBTOR IN ALTERNATIVE OBLIGATION

MAXIMS & SYNONYMS

JOINT Obligation “To each his proportionate

SOLIDARY “One for all, all individually &

(3) SOLIDARY OBLIGATION EXIST ONLY IF: *RULES

2 PRESUMPTIONS THAT OBLIGATION IS JOINT

10. OBLIGATION W/ A PENAL CLAUSE

3 PURPOSES OF PENAL CLAUSE

In case obligation has a PENAL CLAUSE

NULLITY OF PRINCIPAL OBLIGATION OR THE PENAL CLAUSE

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(influence upon () on the very existence