MENESES, GEM T.

Q#2M

1. Pure Obligation – is one which is not subject to any condition and no specific
date is mentioned for its fulfillment and is, therefore immediately demandable.
Ex.
Mr. X obliges his self to pay Php. 10,000.00 to Mr. Y. The obligation is
immediately demandable because there is no specific date mentioned for its
fulfillment.
2. Conditional Obligation – is one whose consequences are subject in one way
or another to the fulfillment of a condition.
Ex.
I will sell to you the car if my dad will give it to me when he buys his new car
until then I’m not liable to you. My obligation will arise when my dad gave me
the ownership of the old car. (suspensive condition)
3. Obligation with a period – performance is subject to a period, and can only
be demandable when the period expires.
Ex.
Mr. Y will pay Php. 5,000.00 to Mr. X when he have the money within a year.
4. Simple Obligation – one where there is only one prestation.
Ex.
Mr. X obliges himself to deliver a sofa to Mr. Y.
5. Compound Obligation – one where there are two or more prestations. It may
be:
a. Conjunctive obligation - one where there are several prestations and all
of them are due.
Ex.
Mr. X obliges himself to deliver a sofa set together with the coffee tables.
b. Distributive Obligation – one where one two or more of the prestations
is due. It may be:
  Alternative Obligation – one where several prestations are due
but the performance of one is sufficient.

Ex. Mr. X borrowed Php. 20,000.00 to Mr. Y. The both parties agreed that
either Mr. X pay Php. 20,000.00 cash or give Mr. Y a new refrigerator as a
fulfillment of the obligation.

 Facultative Obligation – one where only one prestation is due but

the debtor may substitute another.

Ex. Mr. X binds himself to Mr. Y by giving his car as a payment to his
obligation but unfortunately the car involved in an accident before the delivery
date as substitute Mr. X gives a piece of land to Mr, Y.

6. Joint Obligation – one where the whole obligation is to be paid or fulfilled

proportionately by the different debtors and/or is to be demanded
proportionately by the different creditors.
Ex.
Mr. X and Mr. Y are business partners in order to have the capital needed to
establish their business they both agreed to borrow Php. 200,000 to Mr. Z and
also pay their debt equally to Mr. Z.
7. Solidary Obligation - the prestation may be performed by any one of the
debtors, and/or its entire compliance may be demanded by any one of the
creditors.
Ex.
Mr. X and Mr. A are solidary debtors to Mr. Y and Mr. Z, solidary creditors, in the
amount of Php. 400,000.00.
Mr. X (or Mr. A) can pay either Mr. Y (or Mr. Z). Mr. Y (or Mr. Z) can also
demand payment from Mr. X (or Mr. A). The payment of Mr. X (or Mr. A) of Php.
400,000.00 to Mr. Y (of Mr. Z) can fulfill the said obligation. (Mixed Solidarity)
8. Divisible Obligation – is one the object of which, in its delivery or
performance, is capable of partial fulfillment.
 Ex.
Mr. X is obliged to pay Mr. Y Php. 3,000.00 monthly as a partial payment for his
debt in amount of Php. 18,000.00.
9. Indivisible Obligation – is one the object of which, in its delivery or
performance, is not capable of partial fulfillment.
Ex.
Mr. X promised to deliver a specific horse to Mr. Y on July 27 the horse should be
delivered at one time and as a whole because a horse (definite thing) cannot be
severed into parts and delivered partially without destroying its value and
essence.
10.Obligations with a penal clause – is one which contains an accessory
undertaking to pay a previously stipulated indemnity in case of breach of the
principal prestation, intended primarily to induce its fulfillment.
Ex.
Mr. Y promised to repair the car of Mr. Z before July 19 because Mr. Z will have
a family vacation on July 20 and they need the repaired car, both parties agreed
to carried a penal clause in case of non – compliance Mr. Y should let Mr. Z to
borrow his car and pay Php. 5,000.00 as a penalty for the breach of the contract.
11.Unilateral Obligation – when only one party is obliged to comply with a
prestation.
Ex.
Mr. Y lends Php. 10,000.00 to Mr. X upon giving the money to Mr. X the
obligation to give of Mr. Y as a lender (creditor) is fulfilled, as a compliance Mr. X
(debtor) has the obligation to pay Php. 10,000.00 to Mr. Y.
12.Bilateral Obligation – when both parties are mutually bound to each other. In
other words, both parties are debtors and creditors of each other. Bilateral
obligations may be either reciprocal or non - reciprocal.
a. Reciprocal Obligation - are those which arise from the same cause and
in which each party is a debtor and creditor of the other, such that the
 performance of one is designed to be equivalent and the condition for the
performance of the other.
Ex.
Mr. X owns a bakery shop and Mr. Y is the supplier of wheat and flour Mr.
Y is obliged to deliver the supplies to Mr. X, reciprocally Mr. X is obliged to
pay the supplies that has been delivered by Mr. Y.
b. Non – reciprocal Obligation – are those which do not impose
simultaneous and correlative performance on both parties. In other words,
the performance of one party is not dependent upon the simultaneous
performance by the other.
Ex.
Ms. A borrowed the pen of Ms. B, on the other hand Ms. B borrowed the
shirt of Ms. A. The performance by Ms. A of his obligation to return the
pen is not conditioned upon the performance by Ms. B obligation to return
the shirt.
Even if Ms. A and Ms. B are both creditors and debtors of each other, their
obligation are not reciprocal. The obligation are not dependent upon each
other and are not simultaneous.
13.Real Obligation – the prestations is to give or deliver a thing.
Ex.
Mr. X promised to deliver a TV set to Mr. Y.
14.Personal Obligation – the prestations is to do or not to do an act.
Ex.
Mr. X promised to repair the car of Mr. Y. (Positive Obligation)
Ex.
Mr. A bought a piece of land from Mr. B. Mr. B owns a big old narra tree that
occupies some space from the land sold to Mr. A, in the contract upon buying
the lot from Mr. B it was stipulated that Mr. A should not cut the tree. (Negative
Obligation)
15.Determinate Obligation – an obligation to deliver a determinate thing.
Consequently, only the debtor can comply with the obligation by
delivering/giving the very thing itself.
Ex.
Ms. A promised to sell a piece of land with a Lot #123 located at Brgy. Sanguin
CSFP to Ms. B. (Specific Real Obligation)
16.Generic Obligation – an obligation to deliver a generic thing. It can be
performed by a third person since the object is expressed only according to its
family or genus.
Ex.
Mr. X binds himself to deliver a Samsung TV set to Mr. Y. (Generic Real
Obligation)
17.Civil Obligation – arises from law, contracts, quasi – contracts, delicts and
quasi- delicts. Civil Obligations gives a right of action in courts of justice to
compel their performance or fulfillment.
Ex. . Mr. Z owns a coffee shop his business is registered to the government as an
obligation Mr. Z is obliged to pay taxes to the government for his business.
18.Natural Obligation – not being based on positive law but on equity and natural
law, do not grant a right of action to enforce their performance, but after
voluntary fulfillment by the obligor, they authorize the retention of what has
been delivered or rendered by reason thereof.
Ex. Mr. X borrowed one sack of rice from Mr. Y, Mr. X voluntarily return the one
sack of rice before the rainy season to Mr. Y
19.Legal Obligation – obligations arising from law. They are not presumed
because they are considered a burden upon the obligor.
Ex.
Every drivers or motorist needs to stop when the traffic light is in color red.
20.Conventional Obligation – arise from contacts or voluntary agreements.
Ex.
Under a contract of loan Mr. X binds himself to pay Php 100,000.00 within a
year to Mr. Y but in case of breach Mr. X agreed to give his car as a collateral.
21.Penal Obligation - arises from delicts and criminal offences.
Ex.
Mr. X accidentally hit Mr. Y using his car as an obligation Mr. X have to pay
damages to Mr. Y and pay for his hospital bills, Mr. X will also needs to stay in
prison for at least a year.
MENESES, GEM T. A#2M

1. Define the following words.

a. Payment – may consist of not only in the delivery of money but also giving of a
thing (other than money), the doing of an act, or not doing of an act.
b. Performance – in law performance and payment are synonymous. Performance
can be considered doing of an act, or not doing of an act.
c. Condonation or remission of debt – is the gratuitous abandonment by the
creditor of his right against the debtor. (4 Roman 422) It is thus a form of
donation.
d. Confusion or merger rights of creditor and debtor – is the meeting in one
person of the qualities of creditor and the debtor with respect to the same
obligation.
(4 Sanchez Roman 421.)
e. Compensation – is the extinguishment to the concurrent amount of the debts
of two persons who, in their own right, are debtors and creditors of each other.
(Arts. 1278, 1290.)
f. Novation – is the total or partial extinction of an obligation through the creation
of a new one which substitutes it.
g. Annulment – is a remedy provided by law, for reason of public interest, for the
declaration of the inefficacy of a contract based on a defect or vice in the
consent of one of the contracting parties in order to restore them to their original
position in which they were before the contract was executed.
h. Rescission – is a remedy granted by law to the contracting parties and
sometimes even to third persons in order to secure reparation of damages
caused them by a valid contract, by means of the restoration of things to their
condition in which they were prior to the celebration of said contract. (8 Manresa
748 – 749)
i. Fulfillment of Resolutory Condition – refers to a condition whereby, upon
fulfilment terminates an already enforceable obligation. It can also entitles the
 parties to be resorted to their original positions. A resolutory condition is also
implied in all communicative contracts.
j. Prescription – the method of acquiring an easement upon another’s real
property by continued and regular use without permission of the property owner
for a period of years required by the law of the state ( commonly five years or
more).
k. Legal Tender – is that currency which a debtor can legally compel a creditor to
accept in payment of a debt in money when tendered by the debtor in the right
amount. (Black’s Law Dictionary)
- is a form of money that courts of law are required to recognize as satisfactory
payment for any monetary debt. Each jurisdiction determines what is legal
tender, but essentially it is anything which when offered in payment of a debt
extinguishes the debt.
- coins or bank notes that must be accepted if offered payment of a debt.

2. State and define the special forms of payment.

a. Dation in payment (Art. 1245) – (adjudication or dacion en pago) is the
conveyance of ownership of a thing as an accepted equivalent of
performance. (8 Manresa 314)
b. Application of payments (Art. 1252 par. 1) – is the designation of the
debt to which should be applied the payment made by a debtor who has
various debts of the same kind in favor of one and the same creditor.
c. Payment by cession (Art. 1255) – is another special form of payment. It
is assignment or abandonment of all the properties of the debtor for the
benefit of his creditors in order that the latter may sell the same and apply
the proceeds thereof to satisfaction of their credits. (8 Manresa 321.)
d. Tender of Payment and Consignation (Arts. 1256 – 1261) – is the act,
on the part of the debtor, of offering to the creditor the thing or amount due.
The debtor must show that he has in his possession the thing or money to be
delivered at the time of the offer. Consignation is the act of depositing the
 thing or amount due with the proper court when the creditor does not desire
or cannot receive it, after complying with the formalities required by the law.
Consignation is applicable when there is a debt or an obligation to pay. It is
always judicial and it generally requires a prior tender payment which is, by
its very nature, extrajudicial. (Art. 1256, par. 1)

3. State and define the different kinds of compensation.

(1) By its effect or extent :
a. Total – when both obligations are of the same amount and are entirely
extinguished. (Art. 1281)
b. Partial – when the two obligations are of different amounts and a
balance remains. (Ibid) The extinctive effect of compensation will be
partial only as regards the larger debt.
(2) By its cause or origin:
a. Legal – when it takes place by operation of law even without the
knowledge of the parties (Arts. 1279, 1290)
b. Voluntary - when it takes place by agreement of the parties. (Art. 1282)
c. Judicial – when it takes place by order from a court in a litigation.
(Art. 1283.) Strictly speaking, judicial compensation is merely a form of
legal or voluntary compensation when declared by the courts by virtue of
an action by one of the parties, who refuses to admit it, and by the
defense of the other who invokes it. (8 Manresa 403)
d. Facultative – when it can be set up only by one of the parties. (Arts.
1287, par. 1; 1288.)
4. State and define the different kinds of condonation.
(1) As to its extent:
a. Complete – when it covers the entire obligation.
b. Partial – when it does not cover the entire obligation
(2) As to its from:
a. Express - when it is made either verbally or writing
 b. Implied – when it can only be inferred from conduct

(3) As to its date of effectivity:

a. Inter vivos – when it will take effect during the lifetime of the donor
b. Mortis causa – when it will become effective upon the death of the
donor. It must comply with he formalities of a will.
MENESES, GEM T. S#1M

1. State the difference between payment by cession and dation in payment.

The differences are:
a. In dation, there is usually only one creditor, while in cession, there are
several creditors;
b. Dation does not presuppose the insolvency of the debtor, while in cession,
the debtor is insolvent at the time of assignment;
c. Dation does not involve all the property of the debtor, while cession
extends to all the property of the debtor subject to execution;
d. In dation, the creditor becomes the owner of the thing given by the
debtor, while in cession, the creditors only acquire the right to sell the
thing and apply the proceeds to their credits proportionately; and
e. Dation is really an act of novation, while cession is not an act of novation.

2. State the requisites of Novation.

In novation, there are four essential requisites, namely:
(1) A previous valid obligation;
(2) Capacity and intention of the parties to modify or extinguish the obligation;
(3) The modification or extinguishment of the obligation; and
(4) The creation of a new valid obligation.
MENESES, GEM T. Q#3M

I. Select the best answer by writing the letter of your choice.

1. An obligation ceases to be alternative and becomes a simple obligation in
the following cases, except when:
a) The debtor has communicated his choice to the creditor.
b) The right of choice has been expressly granted to the creditor and his
choice has been communicated to the debtor.
c) Among the several prestations that are due only one is practicable.
d) Three prestations are due but one of them is unlawful or impossible.

2. One of the following obligations is not immediately demandable:

a) Pure obligation
b) Obligation with a resolutory condition.
c) Obligation with an in diem period.
d) Obligation with an ex die period.

3. A, B, C and D are obliged to give V, W, X, Y and Z P20,000.

a) V may collect from A Php 20k.
b) V may collect from A Php 5k.
c) V may collect from A Php 1k.
d) V may collect from A Php 4k.

4. The following obligations are divisible, except an obligation:

a) To give definite things.
b) Which has for its object the execution of a certain number of days of
work.
 c) Which has for its object the accomplishment of work by metrical units.
d) Which by its nature is susceptible of partial performance.

5. In obligations with a penal clause, the creditor as a rule may recover from
the debtor in case of breach the following:
a) The penalty as agreed upon plus damages and interest.
b) The penalty and damages.
c) The penalty and interest.
d) Only the penalty.

6. D borrowed from C Php 50,000. The obligation is secured by a chattel

mortgage on D’s Toyota Car. Subsequently, D paid C P20k. Unknown to D,
T, a third person pays C Php 50K believing that D still owed C such amount.
a) T can recover Php 50k from D. If D cannot pay, T can foreclose the
mortgage on D’s Toyota car.
b) T can recover nothing from D because he paid C without the
knowledge and consent of D.
c) T can recover the P30k from D. If D cannot pay, T can foreclose the
mortgage on D’s Toyota car.
d) T can recover Php30k from D. If D cannot pay, T cannot foreclose
the mortgage on D’s Toyota car.

7. A, B, and C are solidary debtors of X in the amount of Php 30k. If A is

insolvent, how much may X collect from B?
a) Php30k
b) Php10k
c) Php20k
d) Php15k
 8. A, B, and C are solidary debtors of X in the amount of P60k. A, however,
was a minor at the time the obligation was constituted. If X sues B, B will be
liable to X for:
a) Php 60k
b) Php 40k
c) Php 20k
d) Php 30k

9. Which of the following is a void obligation?

a) “ D to give C P50k if C does not fly to the moon.”
b) “ D to give C P50k if D wins in the sweeptakes.”. D has not yet bought
the sweeptakes ticket.
c) “D to give C P50k if D marries X.”
d) “ D to give C P50k if C marries X.”
10. M obtained a loan of Php50k from P. The loan is evidenced by promissory
note executed by M with G signing as a guarantor of the debt. P assigns the
note to A, A to B, B to C and C to G. The assignment of the note to G
extinguished:
a) Both of the loan and the guaranty.
b) Only the loan.
c) Only the guaranty.
d) Neither the loan nor the guaranty with G now as the new creditor.
Answers:

1. D 6. D
2. D 7. A

3. D 8. A

4. A 9. B
 5. A 10.C

II. State and define each word.

1. Solution Indebiti – is the juridical relation which is created when something
received when there is no right to demand it and it was unduly delivered
through mistake. (Art. 1251)
2. Delegacion – takes place when the creditor accepts a third person to take
place of the debtor at the instance of the latter. The creditor may withhold
approval. (Art. 1295.) In delegacion, all parties, the old debtor, the new
debtor, and the creditor must agree.
3. Potestative Condition – a condition suspensive in nature and which
depends upon the sole will of one of the contracting parties.
- a condition made in a contract the fulfillment of which is entirely in the
control of one of the parties to the contract.
4. Subrogation – is the substitution of one person (subrogee) in the place of a
creditor (subroger) with reference to a lawful claim or right, giving the former
all the rights of the latter including the right to employ all remedies to enforce
payment. (Art. 1300)
5. Accion Pauliana – ask the court to rescind or impugn acts or contracts
which the debtor may have done to defraud him when he cannot in any other
manner recover his claim. (Arts. 1380 -1389.)
- an action where the creditor files an action in court for the rescission of
acts or contracts entered into by the debtor designed to defraud the
former.
6. Mora Accipiendi – the delay on the part of the creditor to accept the
performance of the obligation.
7. Expromission – takes place when a third person of his own initiative and
without the knowledge or against the will of the original debtor assumes the
latter’s obligation with the consent of the creditor. (8 Manresa 436; Arts.
 1293 – 1294.) It logically requires the consent of the third person and the
creditor.
8. Negotiorum Gestio – is one of the principal kind of quasi - contracts. It is
the voluntary management of the property or affairs of another without the
knowledge or consent of the latter. (Art. 2144.)
9. Fortuitous Event – is any event which cannot be foreseen, or which,
though foreseen, is inevitable. Stated otherwise, it is an event which is either
impossible to foresee or impossible to avoid.