NOTES-Obligation and Contracts
NOTES-Obligation and Contracts
NOTES-Obligation and Contracts
Kinds of fraud:
1. Fraud in obtaining consent (affects the
validity of the contract):
a. Causal fraud Consent would not have
been given
-Voidable
b. Incidental fraud Consent would have
still been given but the person giving it
would have agreed on different terms.
-Valid
-Liable for damages
2. Fraud in the performance of obligation
-Does not affect the
validity of the contract
because it happens after
perfect of the contract
-Party employing it shall
be liable to damages
Waiver of an action for future fraud is
void because it will encourage commission
of fraud.Thus, the debtor will still be
liable for damages if he commits fraud in
the performance of hisobligation despite
the waiver.
Waiver of an action for past fraud is ok
because it happened already. Such waiver
is an act of liberality on the part of the
creditor.
Exceptions:
1. The debtor is in delay or he has promised
to deliver it to two or more person who
do not have the same interest.
2. When there is stipulation
3. When the nature of the obligation
requires the assumption of risk. Example,
the liability of the insurer.
Example: death.
Condition:
1. may or may not happen
2. refers to future or to a past event
unknown to the parties
while period must necessarily come
(day certain) and only refers to
future event.
Potestative debtor, period ---court
fixes the duration
Potestative debtor, conditionsuspensive VOID
Designating a period shall be presumed to
have been established for the benefit of
the creditor and debtor.
At the benefit of the debtor, he cannot
be compelled to pay before the maturity
date. He can pay anytime he wishes.
At the benefit of the creditor means the
creditor can at any time demand or
accept payment when he wishes.
The debtor loses his right to make use of the
period if it is for his benefit under the
ff circumstances:
1. He becomes insolvent unless he gives a
guarantee or security
2. He fails to furnish the guarantee
or security he promised
3. The guaranty or security is impaired
or lost
4. Violates any covenant
5. He attempts to abscond
Alternative obligation is one where several
prestations are due but complete performance
of one of them is sufficient.
The right of choice belongs to the debtor unless
it has been expressly given to the creditor.
When the debtor or the creditor communicated
his choice, the obligation ceases to be
alternative and becomes simple obligation.
If all prestations are lost thru debtors
fault(debtor has the right to choose), the
insure performance.
creditor.
of the debtor.
Cession requirements:
1. 2 or more creditors
2. The debtor is insolvent
Effects:
All properties are assigned to the creditors,
except those exempt from execution. Title is
not passed, however, creditors are authorized to
sell the properties and have the proceeds
applied to their claims.
Requisites of valid tender of payment and
consignation:
1. There is valid payment. (it must be
the thing contemplated, in legal
tender and complete)
2. Creditor refuses to accept the
payment without just cause
3. Notify the persons interested in the
fulfillment of the obligation
(guarantors, sureties, co-debtors)
4. The sum is deposited with the judicial
authorities
5. The persons interested is again
notified of the consignation.
prestation.
public knowledge.
original obligation.
obligation
2. Substitution of the person of the
debtor/creditor
a. Expromision (with creditors consent
subrogation.
corporation.