COURSE OUTLINE: (RELEVANT CASES AND READINGS)

General Provisions: (Articles 1156 1162, 31 34, 2014 - 2015, 2142 2175, 2176, 2202 - 2230 of
the New Civil Code, and Articles 100 - 113 of the Revised Penal Code.)
1. Concept, Requisites, and Classification: (Leung Ben vs. OBrien, 8 Phil 102; Bautista vs. F.O.
Borromeo, Inc., 30 SCRA 119; Dela Cruz vs. Northern Theatrical, 50 O.G. 4225, Sept 1954)
2. Examples and Distinctions of Sources of Obligations: (Pichel vs. Alonzo, 111 SCRA 341; Licudan
vs. Court of Appeals, Jan 24, 1991; Barredo vs. Garcia, 73 Phil 607; Gutierrez vs. Gutierrez, 56 Phil
177)

Nature and Effect of Obligations: (Articles 1163-1178 and Article 440 of the New Civil Code)
1. Diligence: (Bishop of Jaro, 26 P 144)
a. Ordinary v. Extraordinary
b. Diligence of a Good Father of the Family
c. Diligence in accordance with circumstances as to person, time, and place.
(Obejera v. Iga Sy, 76 P 580; Africa v. Caltex, March 31, 1966)
2. Delivery: (Sampaguita Pictures v. Jalwindor Manufacturers, 93 S 420)
a. Real right vs. Personal Right
b. Kinds of Delivery (Gatchalian v. Arlegui, 75 S 234)
3. Obligations to Give:
a. Generic v. Specific
b. Effects of fortuitous events (Yu Tek v. Gonzales, 29 P 384)
c. Accessions v. Accessories
d. Remedies in case of Breach (Quemel v. CA, Jan 16, 1968)

4. Obligations to Do and Not to Do:

a. Remedies in case of Breach (Chavez v. Gonzales, April 30, 1970)
5. Delay in the Compliance:
a. Necessity for Demand:
b. Exceptions:
c. Kinds of Mora:
d. Delay in Reciprocal Obligations: (Rodriguez v. Belgica, Feb 28, 1961; Causing v.
Bencer, 37 S 417)
6. Breach of Obligation:
a. Fraud (Dolo): Extent of Liability
b. Negligence (Culpa):
i. Respondeat Superior
ii. Bonus Pater Familias
iii. Waiver (People v. Verano, Feb 28, 1961)
iv. Contributory Negligence: (Picart vs. Smith, 37 P 809; Cangco vs. Manila
Railroad, 38 P 763; Rakes vs. Atlantic Gulf, 7 P 359; Spouses Guanio vs.
Makati Shangrila Hotel, February 7, 2011)
c. Delay (Mora):
d. In Contravention (substantial deviation): (
e. Culpa Criminal vs. Culpa Contractual vs. Culpa Aquiliana
g. Kinds of Damages:
7. Fortuitous Event:
a. Essential Conditions: (Nakpil vs. CA, 144 SCRA 596; Lasam v. Smith, 45 P 657;
Gatchalian v. Delim, Oct 21, 1991)

b. Exceptions: (Sia vs. CA, 222 SCRA 24; RP vs. Luzon Stevedoring, 21 SCRA 279;
NPC vs. Philipp Brothers, 369 S 629)
c. Fortuitous But Still Liable: (Tan Chiong San v. Inchausti, 22 P 152)
8. Usury: (Medel vs. CA, 299 S 481)
9. Other Remedies for Breach of Obligations:
a. Extrajudicial and Judicial: Demand, Attachment, Subrogatory Action
b. Principal v. Subsidiary: Accion Pauliana
c. Transmissibility of Obligations and Exceptions: Inherent rights of the Debtor

Pure and Conditional Obligations: (Articles 1179 1192)

1. Classifications:
2. Pure Obligations: (HSBC vs. Spouses Broqueza, November 17, 2010)
3. When his means permits him to do so:
4. Kinds and Effects of Conditions:
a. Suspensive vs. Resolutory: (Santiago vs. Millar, 68 P 39; Patente vs. Omega, 93 P
218; Gaite vs. Fonacier, 2 SCRA 831; Coronel vs. Court of Appeals, Oct 7 1996;
Javier vs. Court of Appeals, 183 S 171, Heirs of Atienza vs. Espidol, August 11,
2010)
b. Potestative, Casual or Mixed Conditions: (Parks vs. Province of Tarlac, 49 P 142;
Smith Bell vs Matti, 44 P 875; Lao Lim vs. Court of Appeals, 191 S 150; Catungal vs.
Rodriguez, March 23, 2011)
c. Solely Upon the Debtor: (Osmena vs. Rama, 14 P 99; Trillana vs. Quezon
Colleges, 93 P 383; Hermosa vs. Longara, 93 P 971;
d. Possible or Impossible Conditions: (Luneta Motor vs. Abad, 67 P 32; Litton v.
Luzon Surety, 90 P 783)
5. Constructive Fulfillment of Condition:

a. Prevented by the Debtor: (Valencia vs. RFC, 103 P 444; Labayen vs. Talisay, 52 P
440)
b. By Stipulation (Taylor v. Yu Tieng Piao, 43 P 873)
6. Rights of Creditors Prior to Condition: (PLDT vs Jeturian, 97 P 981)
7. Rules in Cases of Improvement, Deterioration, or Loss:
8. Power to Rescind in Reciprocal Obligations: (Ang vs. Court of Appeals, 170 S 286; Heirs
of Gaite vs. The Plaza Inc, January 26, 2011;Lalicon vs. NHA, July 13, 2011, Spouses
Fernando vs. Continental Airlines, January 16, 2012; F.F. Cruz vs. HR Construction, March
14, 2012)
a. Characteristics:
b. Specific Performance v. Rescission (Rios v. Jacinto Palma, 49 P 7)
c. Rescission vs. Resolution: (Magdalena Estate v. Myrick, 71 P 344)
d. Restrictions on the Power: (Alcaraz v. Tangga-an, April 9, 2003; Tan vs. Court of
Appeals, 175 S 656)
e. Necessity of Judicial Approval; Exceptions: (Consing v. Jamandre, May 12, 1979;
Heirs of JBL Reyes vs. CA, 338 S 282)
f. Effects of Slight Breaches: (Song Fo vs. Hawaiian Phil, 47 P 821; Filoil vs.
Mendoza, 150 S 632)
Obligations with a Period: (Articles 1193 1198)
1. Classification:
a. Condition v. Term (Berg v. Magdalena Estate, 92 P 110)
b. In diem vs. Ex die:
c. Legal, Conventional, Judicial: (PNB vs. Lopez Vito, 52 P 41; Victorias Planters vs.
Victorias Milling, 97 P 318)
2. Payment or Performance Prior to the Period:
3. Benefit of the Period: (Ponce de Leon vs. Syjuco, 90 P 311)

4. When Courts May Fix a Period: (Barretto vs. City of Manila, 7 P 416; Peoples Bank vs.
Odom, 64 P 126; Gonzales vs. Jose, 66 P 369; Eleizegui vs. Manila Lawn Tennis Club, 2 P
309; Araneta vs. Phil Sugar, 20 SCRA 330; Soriano v. Abalos, 84 P 206)
5. Loss of Benefit of the Period: (Gaite vs. Fonacier, 2 SCRA 831; Abesamis vs. Woodcraft,
166 SCRA 577; Song Fo vs. Oria, 33 P 3)

Alternative and Facultative Obligations: (Articles 1199 1206)

1. Concept and Features: (Agoncillo v. Javier, 30 P 124)
2. Limitations of the Right of Choice:
a. By the Debtor: (Reyes vs. Martinez, 55 P 492)
b. How Communicated?
3. Purpose of Choice: (Ong Guan Can vs. Century Insurance, 46 P 592)
a. Requisites:
b. Effect of Notice of Choice:
4. Rights of the Creditor Prior to Choice:
a. Loss or impossibility:
b. Extent of Indemnity; Damages:
5. Choice Given to the Creditor:
6. Alternative vs. Facultative Obligations: (Quizana v. Redugerio, 94 P 218)
Joint and Solidary Obligations: (Articles 1207 1222, 1822-1823; 2088, 2137, 2226 of the
New Civil Code, Articles 94 and 121 of the Family Code)
1. Definition and Distinction:
2. Conditions of Solidary Liability: (De Leon v. Nepomuceno, 37 P 180; Parot v. Gemora, 7 P 84)
3. Presumption of Joint Liability: (Oriental v. Abeto, 60 P 723)

4. Comparative Jurisprudence: (Jaucian vs. Querol, 38 P 707; Borromeo vs. Court of Appeals, 47 S
65; PNB vs. Sta Maria, 29 S 303; Ronquillo vs. Court of Appeals, 132 S 274, Marsman vs. Philippine
Geoanalytics, June 29,2010)
5. Joint Divisible Obligations: (Agoncillo vs. Javier, 38 P 424)
6. Indivisibility vs. Solidarity, Passive vs. Active Solidarity:
7. Consequences of Solidarity: (Inchausti vs. Yulo, 34 P 978; Quiombing vs. Court of Appeals, 189 S
325; Imperial Insurance vs. David, 133 S 317)
a. Useful But not Prejudicial:
b. Assignment of Rights:
c. Extinguishment of Obligation:
d. Sue any or all: (Amor de Castro v. CA, July 18, 2002)
8. Effect of Payment; Right of Reimbursement:
9. Defense by the Solidary Debtor:
a. Real or Complete:
b. Personal: (Ouano Arrastre v. Aleonor, Oct 10, 1991)

Divisible and Indivisible Obligations: (Articles 1223 1225)

1. Indivisibility of Obligation vs. Indivisible Thing: (Blossom v. Manila Gas, 55 P 226)
2. Test of Indivisibility:
a. Definite Things
b. Not Susceptible to Partial Performance
c. Stipulation or by Law

Obligations with a Penal Clause: (Articles 1226 1230)

1. Definition; Kinds:
2. Purpose of Penal Clause: (Manila Racing Club vs. Manila Jockey Club, 69 P 55; SSS vs.
Moonwalk, 221 S 119; Caridad Estate vs. Santero, 71 P 114)
3. Exception to the Purpose of Penal Clause: (Bachrach vs. Espiritu, 52 P 346)
4. Penalty Plus Fulfillment: (Cui v. Sun Chan, 41 P 523; Cabarroguis vs. Vicente, 107 P 340;
Dimatulac v. Coronel, 40 P 686)
5. Difference with Facultative Obligation:
6. Reduction of Penalty: (Jison vs. Court of Appeals, 164 S 339; Umali vs. Miclat, 105 P
1007)
7. Proof of Actual Damages: (Lambert vs. Fox, 26 P 558)