Professional Documents
Culture Documents
CHAPTER 2
NATURE AND EFFECT OF OBLIGATIONS
(Arts. 1163-1178)
STUDY GUIDE :
Distinguish: Specific/Determinate vs. Generic/Indeterminate Thing
(b) Contract
E. DELAY
1. Distinguish:
(a) Ordinary Delay
(b) Legal Delay requires extrajudicial/judicial demand (Art. 1169, par. 1)
(b)
(c)
(d)
(e)
3. Kinds of Default :
(a) Mora Solvendi (Art. 1169, par. 1) delay on the part of the debtor
(b) Mora Accipiendi delay on the part of the creditor
(c) Compensatio Morae (Art. 1169, par. 3) delay of obligors in
reciprocal obligations
2. NEGLIGENCE (culpa)
(a) Defined (Art. 1173, par. 1)
(b) Distinguish: fraud vs. negligence
(c) Validity of waiver of action for future negligence :
(c.1.) simple negligence valid
(c.2.) gross negligence (amounting to fraud) - VOID
(d) Kinds of negligence
(d.1.) contractual (culpa contractual)
(d.2.) civil (tort/culpa aquiliana)
(d.3.) criminal (culpa criminal)
(e) Effect of negligence on the part of the injured party (Art. 2179):
(e.1.) if immediate and proximate cause of injury NO recovery
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(b.3.) When the nature of the obligation requires the assumption of risk.
(b.4.) When the thing to be delivered is generic
(genus never perishes - Art. 1263)
H. ARTICLE 1175
1. Usury is now legally non-existent.
stipulate any amount of interest.
2. Art. 1956, however, of the Civil Code states: No interest shall be due
unless it has been expressly stipulated in writing.
I. ARTICLE 1176
1. Disputable presumptions on payments of interest and prior
installments.
2. When the presumptions do not apply.
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have foreseen or could have reasonably foreseen at the time the obligation was
constituted.
In case of fraud, bad faith, malice or wanton attitude, the obligor shall be
responsible for all damages which may be reasonably attributed to the nonperformance of the obligation.
ART. 2209. If the obligation consists in the payment of a sum of money,
and the debtor incurs in delay, the indemnity for damages, there being no
stipulation to the contrary, shall be the payment of the interest agreed upon, and
in the absence of stipulation, the legal interest, which is six per cent per annum.
APPLICATION/PROBLEMS :
1. Liza is the owner of a 200 square-meter lot sited in Makati. On
January 15, 2015, Lito and Liza entered into a lease contract covering the
said lot. The term of the lease was 2 years, or until January 14, 2017, and
the monthly rental agreed upon by the parties was P100,000. On June 15,
2015, Liza sold her Makati lot to Rene and promised to deliver the lot to Rene
on November 15, 2015. On November 15, 2015, however, Liza failed to
deliver the lot and instead made delivery only on December 15, 2015. As the
new owner, Rene now claims from Liza Litos rental payments starting June
15, 2015. Is Renes demand well-founded?
Clue question: When does the obligation to deliver arise? (Art. 1164)
2. For a consideration of P2M, Mike promised to deliver to Joe, on or
before July 15, 2015, his BMW with plate No. HRL-512 as well as a 2015 24inch Sony Wega television set. Unfortunately, on July 10, 2015, an unusual
bolt of lightning stroke onto the roof of Mikes house and started fire. The fire
completely gutted down Mikes property. As a result, the BMW and the TV
set were both reduced to ashes. Has the obligation of Mike to Joe been
completely extinguished?
Clue question: If the thing to be delivered is generic, and the same is
lost or destroyed, is the obligation to deliver extinguished? (Art. 1163)
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3. On March 15, 2015, Engr. Fabi entered into a building contract with
Mr. Oni. It was agreed that in six months, Engr. Fabi will finish the
construction of a one-kilometer dam in Bacolor, Pampanga to protect the
property of Mr. Oni from damage caused by the lahar mud flow consequent of
the Mount Pinatubo eruption. It was also stipulated that the height of the dam
from the basement shall be four meters, and crushed stone measuring two
inches in diameter shall be used. Later, Mr. Oni found out that Engr. Fabi
used 1/2-inch diameter of crushed stone for the dam. What are the remedies
of Mr. Oni?
Clue: Creditors right in a positive personal obligation (Art. 1167)
4. Budoy and Intoy are the owners of two adjoining pieces of land in
Allen, Samar. On April 10, 2015, Budoy and Intoy entered into an agreement.
In the agreement, Intoy obliged himself not to construct any structure,
whether temporary or permanent, on his (Intoys) land for five years because
Budoy will use it as his garage for five years. As consideration for the
promise, Budoy paid Intoy the amount of P200,000.00. On March 20, 2015,
however, Intoy constructed a semi- structure to accommodate five live-in
employees from his carinderia. What is the liability of Intoy?
Clue: Creditors right in a negative personal obligation (Art. 1168)
5. On July 2, 2015, Hiss agreed to sell his original set of Harry Potter
DVDs to Moo, and promised to deliver the same to Moos house on July 4,
2015. On July 8, 2015, Moo demanded from Hiss delivery of the DVDs.
Hiss, however, informed Moo that on the night of July 6, 2015 a burglar
entered their house and robbed them of personal effects amounting to
P300,000.00 which were never recovered. Hiss original set of Harry Potter
DVDs were among the things stolen.
(a) What is the liability of Hiss?
(b) If, on July 4, 2015, Moo had asked his brother-lawyer to write a demand
letter addressed to Hiss insisting on the delivery of the DVD set, would your
answer to the preceding question be the same?
Clue: Correlate Art. 1165, par. 3 with Art. 1169, par. 1.
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6. John and Bea were engaged to be married on June 6, 2015. For the
wedding cake, they contracted Goldi-Cooks to bake a five-layered chocolate
cake with walnut, which was Beas favourite. On the day of the wedding, and
up to the time when the newly weds were about to share their first slice of
cake as husband and wife, no cake arrived. So, they had to make do with the
leche flan the caterer had prepared for the wedding. When John and Bea
arrived from their honeymoon, they filed an action for damages against GoldiCooks who now denies liability on the ground that the spouses never made
any demand on Goldi-Cooks for the delivery of the wedding cake. Is GoldiCooks liable for damages under the facts of this case?
Clue: Art. 1169, par. 2.
7. On December 31, 2013, Brad advanced P100,000.00 from Angie
and promised to pay the amount on December 31, 2014 at 10% per annum
interest. In case of default, Brad also obliged himself to pay to Angie
additional interest (as penalty for the delay) computed at 5% per month. On
December 31, 2014, Brad failed to pay Angie his loan. For the next six
months, Angie did not hear anything from Brad. On June 30, 2015, Angie
filed a case in court to recover the amount of P140,000.00, computed as
follows:
Principal amount
10% agreed annual interest
5% agreed penalty interest for delay
Total liability as of 30 June 2015
P100,000.00
P 10,000.00
P 30,000.00
P140,000.00
friend, James, who loaned him the amount of P10M without interest and
payable on October 31, 2014. As of November 10, 2014, however, Dean,
despite repeated demands from James since the obligation became due, has
not been able to settle his obligation. Worst, James came to know from
another business associate that, as of October 5, 2014, Dean had already
sold his P5M Manila property which was under renovation under the
supervision of its new owner Gaby. What, under the factual circumstances of
this case, are the successive rights of James? Clue: Art. 1177.
9. On July 31, 2014, Procopio sold to Cordapio his Nikon D700 camera
for P100,000.00. Upon delivery of the camera on the same day, Cordapio
paid P20,000.00. as downpayment. Procopio agreed to accept payment on
the balance in instalments, as follows :
September 30, 2014
P10,000.00
P15,000.00
P15,000.00
P20,000.00
P20,000.00
Balance Payable
P80,000.00
It was also agreed by the parties that if any instalment was not paid
by Cordapio on time, the remainder of the unpaid instalments would
automatically become due and demandable, and will be charged a 5%
monthly interest until completely paid. On January 31, 2015, Cordapio did
not remit the instalment thus due to Procopio. Until the end of March, 2015,
Procopio did not hear from Cordapio. On April 15, 2015, Procopio filed an
action for collection against Cordapio demanding payment of the entire
balance due from January 31, 2015 in the amount of P55,000.00. From what
time should the 5% interest for damages start to be computed on the total
amount due?
Clue: Art. 1169, par. 1. (See Note No. 6 on DELAY)
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10. At around 10:00 in the evening, you are driving along Roxas
Boulevard within the area of Buendia. Your family is in the car with you. The
highway is normally free from pedestrians who are required by local
ordinances to cross the boulevard using the designated overpass. Suddenly,
from out of nowhere, a man in his mid-30s crosses the road. The man was
wearing a black shirt which made him even more invisible to moving vehicles.
Before you realize it, he was already right in front of the car a few feet away,
and it became impossible to steer clear of the man after a rapid full step on
the brakes. As a result, the man suffered serious injuries. Will you be liable
for damages to the injured man?
Clue: Art. 2179. (See Note 2[e], Grounds for Damages)
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