hi guys welcome to another episode of attorney Javier's law lectures for students today we'll be having an overview or as may be applicable a review of the topic of obligations under the civil code of the Philippines now consistent with being an overview today's discussion will be more General in nature and if you would like more details you can watch my full series on obligations and contracts or better yet open your books study the law and the textbook commentaries so if you like my videos and you want to see more please hit the Subscribe button also please remember that this is only for educational purposes and is not a substitute for proper legal advice or for studying and understanding the law a like on this or any of my other videos would be greatly appreciated this episode is also brought to you by digest. pH which is an online law library with 70,000 case digests and full texts of Supreme Court decisions which are all downloadable in word and PDF formats you can use my promo code Javier digest to get 20% off digest subscription plans now let's begin we start with the definition to provide of course cont text for the topic so what is an obligation article 1156 defines an obligation as a judical necessity to give to do or not to do this means that there is a legal relation where one party known as the Creditor can demand from another performance of any of the three prestations namely to give to do or not to do again again the Creditor has the right to to demand that the deor give do or not to do something and since an obligation is a juridical necessity this means that the obligation is enforceable in court in case of non-compliance by the deor but where do obligations come from article 1157 says that obligations come from law contracts quasi contract dels and quasi dels so the law May create an obligation such as when congress makes a law saying you have to pay a certain kind of tax or it can arise from a contract such as when parties agree to give to do or not to do for each other certain lawful voluntary and unilateral acts may also give rise to obligations and these are known as quasi contracts one common example is nego gesture under Articles 2144 to 2153 where a stranger takes over the management of a business or property of another without being authorized to do so such as when a typhoon hits your home and to avoid catastrophe and destruction your neighbor has to act with urgency so here the neighbor is the gestor who has to continue managing your property until the typhoon terminates or until you can substitute him and since he took care of your property for you while you were unavailable you have the duty to reimburse him for any expenses and liabilities which he may have incurred another example of aasai contract is soluo in deity under Articles 2154 to 2163 or payment by mistake where in case a person receives something wrongfully such as when they have no right to demand it or when it was given to them by mistake then they have the obligation to return it both negotium gesture and solution in deity are based on the principle that no one should be unjustly enriched or benefited at the expense of another other quasi contracts are provided for In Articles 2164 to 2175 and all these quasi contracts are sources of obligations obligations can also arise from delicts or crimes because under article 100 of the revised Penal Code which defines and punishes crimes in the Philippines every person who is criminally liable is also civil liable so every person who commits a crime has civil liability con consisting of restitution or restoration reparation or repair or indemnification or reimbursement for damages now when a person acts or fails to act through negligence or without care and because of this he causes damage to another this is known under article 2176 as a quasi delic or a Tor and this also gives rise to an obligation which is usually to pay damages remember that while damage is the actual harm or injury that is suffered damages with an S is the pecuniary or monetary compensation paid for the damage which is suffered and in the case of obligations if there is fraud negligence delay or contravention of the tenor in the performance of the obligation these circumstances create liability for damages under article 1170 so again obligations come from law contracts quasi contracts delicts and quasi dels and now that we know the origin of obligations let's talk about the incidents in the life of obligations namely the three prestations of to give to do or not to do on one hand obligations to do or not to do are simple enough these are known as personal obligations because their subject matter is either the performance of an act or refraining from the performance of an act and of course the obligation to do is positive while the obligation not to do is a negative personal obligation on the other hand we have obligations to give and these are real obligations meaning that the subject matter of these obligations involves the duty to deliver a thing and this thing may be determinate meaning one that is individualized and can be identified or distinguished from others of its kind or the thing may be generic which is only indicated which is indicated only by its kind without being specifically designated or distinguished from others a car is generic but a 2014 Toyota Vios with plate number Tec 634 is specific and determinate this distinction is important to determine whether the detor will be liable in case the thing is lost or damaged because under article 1174 nobody shall be liable for loss or damage caused by fortuitous events such as an earthquake or typhoon except of course if liability for fortuitous events is set expressly by law contractual stipulation or when the nature of the obligation requires that you assume at least some risk so accepting those cases to avoid liability for fortuitous event the event first must be independent of human will it could not be foreseen or even if foreen is inevitable third the event must render it possible for the detor to comply with his obligation normally and fourth the detor must have no participation no negligence or must not aggravate or worsen the injury to the Creditor now if a determinate thing is lost without the fault of the detor and before he is in delay or is late in performing then the detor will not be liable because again nobody will be liable for or for twous events so if the deor is late in performing the obligation or if he has promised to deliver the same thing to two or more persons who do not have the same interest then the deor Bears the risk of loss or damage caused by any fortuitous event until such time as he makes delivery as provided in article 1165 but if a generic thing is lost the car the deor will still be liable for it because Jos never perishes the loss of a car does not mean that all cars in the world are lost okay so he can deliver another thing as long as it is of the same kind and quality now before the thing is delivered the detor has the duty to preserve and take care of the thing under article 1163 and the standard of care which the law imposed say is the proper diligence of a good father of a family or ordinary diligence of course the law or the parties May stipulate that another standard of care will be observed such as extraordinary diligence as for the act of delivery itself if the obligation is to deliver a generic thing the duty of the de of the detor is simple he just has to deliver a thing which is not of superior but also not of inferior quality but if the obligation is to deliver a determinate thing article 1166 requires that the detor has to deliver everything that comes with it including the accessions and accessories as may be applicable accessions are the fruits of the thing meaning those which the thing naturally produces such as mangoes of a mango tree or puppies of a dog while accessories are those for embellishment use preservation or completion of the thing such as keiss of a house or the comb of a Barbie the detor has Del to deliver both the accessions and accessories together with the thing does the Creditor have any rights to the fruits before delivery yes but only a personal right which is to demand that the detor make delivery when we say personal right this is a right that only exists and can be enforced against the detor only as opposed to a real right which is enforceable against the whole world under Articles 1164 while the thing has not yet been delivered the crator does not yet have a real right meaning he cannot say to everyone these fruits are mine and no one else can have them the only the right the Creditor has over the fruits before delivery is a personal right to demand that the debtor deliver the thing in the fruits after the after delivery the Creditor will now have a real right over the fruits to the exclusion of everyone else and enforceable against the whole world as for accessories article 1537 requires that they must be delivered in the condition which they were upon Perfection of the contract so whether the pration is to give to do or not to do the debtor has to comply fully meaning that in case of personal obligations to do or not to do performance must be completely rendered while in case of real obligations to give the thing must be delivered completely as per article 1233 but what if in performing the obligation the debtor's performance is is late irregular incomplete or there has been no performance at all then we can say that the obligation has been breached which is simply the failure without legal reason to comply with the obligation now there are different rules when it comes to breach and it depends the rules depend on the type of the obligation in case of obligations to do let's go by degrees of quality if performance was of low quality then the Creditor can ask that what was done poorly be undone under article 1167 so if you ordered a stool from the carpenter but it comes out wobbly you can ask the carpenter to undo the attachment of the uneven legs the same rule also applies in case the detor did what was forbidden in case of a NE negative obligation or an obligation not to do such as putting a sticker on a book when there's a warning do not put a sticker on the book The creditor can ask that the ACT be undone at the expense of the detor as per article 1168 and the sticker be removed but if it involves something irreversible such as do not smoke cigarettes indoors and the de or smoke of course you cannot take back the smoke so what is the remedy the only remedy here will be a claim for damages now now if the performance was in contravention of the tenor of the obligation such as when a painter paints a house black when the the obligation was to paint it white or if the deor does not perform the obligation at all what can be done of course while you can demand that the deor perform the obligation if the debtor refuses to comply you cannot force the detor to perform the obligation because of the Constitution tional prohibition against involuntary servitude under Section 18 paragraph 2 of article 3 of the 1987 Philippine Constitution meaning that no one can be forced to perform personal services against their will in this case the Creditor can ask someone else to perform the obligation and the expenses will be charged against the detor as per article 1167 in addition of course to damages asking the deor to pay in this case is not involuntary servitude anymore because paying money is not performance of service so there is no involuntary servitude however if the obligation can only be performed by the detor because of their personal qualifications their certain specific skills or talents Etc such such as when the obligation is for Taylor Swift to sing blank space then no one else can do it because there can be no substitute for the certain per certain specific performance and voice of Taylor Swift for that song so the only remedy is a claim for damages against the detor as for real obligations to give as stated earlier delivery must be complete unless of course the Creditor accepts incomplete or irregular performance under article 1234 in which case the obligation will be considered as performed otherwise incomplete irregular or no performance they will all result in a breach and the remedies are the same as in reciprocal obligations and reciprocal obligations are those which arise from the same cause and in which each party is a deor and creditor of the other so that performance by one is the equivalent and condition for the performance of the other and the simple simplest example is when you buy a bottle of water from a uh grocery store or convenience store once you pay the seller gives you the bottle of water okay so that's a reciprocal obligation now once one party performs their obligation the other party has to perform theirs in in case the other party fails to perform their part then there is a breach and what is the remedy in case of breach of a reciprocal obligation there are two remedies which the injured party can choose from in addition to a claim for damages against the party at fault the injured party may choose to demand that the party at fault perform their obligation which is called fulfillment or specific performance or the injured party may choose the remedy of recession and ask that the contract be cancelled upon which the parties have the duty of mutual restitution meaning that once the contract is cancelled they have to return everything that they may have received by virtue of the obligation so let's say uh Goku received money uh by virtue of an obligation to deliver a car to Vegeta but failed to give the car in case of recision Goku has to return the money and vice versa no if Goku received the car but failed to give money they have to return the car in case of recession and of course the duty to return is in addition to the injured parties claim for damages as may be applicable of course it is only the injured party who can choose which remedy to Avail off because of course the party at fault cannot choose since he is the one who to cause the breach however the injured party can choose only one remedy he cannot choose both except that if the injured party chose specific performance and then the obligation becomes impossible to perform then the injured party will be allowed to choose recession after such impossibility of performance in any case regard regardless of the type of obligation if the deor is late in performing the obligation such as when the due date has already passed this may lead to a breach take note however that just because performance is late does not mean there is a breach because this is only ordinary delay and should not be confused with the concept of legal delay or default which constitutes breach of the obligation and Carries certain consequences this is because under article 1169 delay is incurred once the Creditor makes a Judicial or extrajudicial Demand on the detor for legal delay or default to exist of course the deor must have first failed to perform the positive obligation on time and I say positive because of course there can be no delay in case of negative obligations in which the detor simply has to do nothing now after the deor fails to perform his obligation the Creditor must now give a formal Demand on the detor to comply and in reality in practice you first you have to First Resort to an extrajudicial Demand by sending a demand letter before resorting to judicial demand of filing a complaint before the court and once the detor fails to comply with the formal demand his legal delay or default begins inss however there are certain instances where demand is not necessary for the detor to be in default such as first if it is expressly stated in the obligation or required by the law or if the nature and circumstances of the obligation show that the time of performance was the reason or motive for creating the obligation such as I need a wedding cake for my wedding on the 18th of next month okay or third if demand will be useless such as when the deor caused it to be impossible for him to perform so in these instances the debtor will be in default even if the Creditor did not give him a formal demand now this Reckoning point of default is important because it is from that moment that we count the effects of delay which will depend on who is in the form if it is the detor who has delayed performance or Mora Sol vendi then not only will he be guilty of breach but he shall be liable for interest or damages and if the obligation is to deliver a determinate thing he will also be liable for loss or damage caused by for tuous events but if it is the creditor who has delayed to accept the performance of the detor or Mora ayendi then the Creditor will be liable for breach and any damages that may be suffered by the detor the Creditor will then bear the risk of loss of the of the determinate thing he also forfeits the interest beginning from the time of default and the dettor is now allowed to relieve himself of the obligation by consigning the thing in court now if the delay is on the part of both of the parties or compensation Shore then the delay of each is cancelled okay such that neither party will be considered to have incurred in delay but if the delay of one party is followed by the delay of the other then the courts will reduce or balance the liability of the one who first delayed performance but if it cannot be determined which one was first in delay then the contract will be deemed extinguished and each party will bear their own damages so far we have learned that there are types of obligations personal real and reciprocal obligations and aside from these there are other kinds of obligations however take note that there is not enough time to discuss each kind in detail and this is just an overview so I will just go over some essential points the main obligations are first pure obligations which are immediately demand demandable you can demand them immediately we also have conditional obligations where the Creditor must wait for a future and uncertain event to happen before the obligation can either be performed for suspensive conditions or for the obligation to be extinguished for resolutory conditions in suspensive conditional obligations the condition has to happen first before performance can be demanded because the obligation is suspended while the condition has not yet happened that's why it's suspensive it's suspended okay while in resolutory conditional obligations the obligation exists right away after it is created but it ends or is resolved once the condition happens now obligations with a period are the next kind of obligations which are like conditional obligations in that they can be suspensive or resolutory in other words the Creditor must wait until a certain period such as a due date arrives before they can either demand performance for suspensive periods or before the obligation is extinguished for resolutory periods the main difference between a condition and a period is that you are uncertain if a condition will happen whereas you are sure that a period will arrive even if you don't know when so since Death is certain that is a period but death due to cancer is uncertain you don't know if you're going to die of that cause so that is a condition okay now obligations can also be alternative where several things are du until the party who has the right of choice chooses which one will be delivered usually it is the detor who can choose unless the right of choice has been expressly given to the Creditor if however one thing is due only one thing but the deor can give something else in substitution that's not an alternative obligation but is instead a facultative obligation now common issues on alternative and facultative obligations involve loss of one of the things due as alternate or loss of one of the substitutes okay so you can study that in my episode on this uh topic now obligations may also be joint or solidary in a joint obligation each deor is only liable for their proportionate share and each creditor can only demand the share that is due to them or hatti hat it but in solidary obligations each debor is bound to perform the o obligation in full upon Demand by any creditor who can also ask that the performance of the obligation be done in full now the deor who performs in full can ask for reimbursement from the other debtors while the creditor who receives full payment has to give his co-editors their respective shares to remember it easier if a group eats at a restaurant and each one pays for the share of food they ate that is joint each pays for their own kkb but if only one pays for everybody else and asks the others for reimbursement that is solidarity that's the simplest way I can explain it at this moment next obligations can also be divisible which means that the object or pration can be performed in parts and if it cannot then it is an indivisible obligation note that the divisibility or indivisibility refers to Performance of the pration and not necessarily the thing so even if the thing can be divided if the law or the parties intend it to be intend the obligation to be indivisible then delivery must be delivery or performance must be complete now the last major kind of obligations are obligations with a penal Clause okay and uh these obl obligations set a penalty as an accessory contract or an accessory obligation rather in case the deor fails to perform the principal obligation okay and uh the purposes include uh to ensure performance of the obligation to serve as liquidated damages or to punish the detor for reach and now there are other classifications of obligations such as natural versus civil obligations real and personal obligations which which we already talked about as well as determinate and generic obligations positive and negative obligations we discussed those also uh principal and accessory I just discussed that unilateral and bilateral and reciprocal obligations single and multiple obligations and individual and Collective obligations okay for lack of time I will not be discussing those anymore and so far we have discussed the birth and the incidents in the life of obligations now how do obligations come to an end the main modes for extinguishing obligations are the following first by payment or performance which must be made to the person in whose favor the obligation was made or to their successor in interest or to their authorized recipient and this requires two things identity and integrity meaning respectively the the very thing or service contemplated must be delivered and delivery must be complete identity and integrity okay and payment has certain special rules including application of payments session tender and consignation and this is discussed elsewhere no in my specifically in my oblon series playlist we can which you can just look up an obligation will also be extinguished in case the thing duw is lost without the fault of the dettor and before he is in delay such as when the thing perishes goes out of Commerce or disappears in such a way that its existence is unknown or cannot be recovered however this only applies to determinate things because obligations to deliver generic things cannot be extinguished by loss since the deor can simply deliver another thing of the same kind and quality because genos never perishes as mentioned earlier now a creditor is allowed to forgive the debt like by saying don't pay it anymore in this case the obligation is extinguished by condonation or remission which is essentially gratuitous and because of this it partakes of the nature of a donation so the parties must comply with the forms of donation which includes acceptance by the detor so what are these uh formalities of a donation no for personal or removable property such as jewelry if the value is below 5,000 pesos it may be done orally the donation may be done orally or in writing if done orally the thing must be delivered simultaneously with the donation but if the value is above 5,000 pesos the donation has to be in writing otherwise the donation shall be void now if the thing is immovable or real property such as land the donation must be in a public document meaning notorized and should specify the property donated and any other related charges the donor's acceptance must be made while the donor is still alive and it may be in the same or in a separate public document with notice to the donor now in case the detor becomes his own creditor or if he acquires the right of his the rights of his creditor then the obligation is also extinguished an example would be where Goku issues a promisory note to evidence his Deb to Jin okay then Jin endorses that promisory note to Vegeta okay now Vegeta uses that note to pay his own debt to Goku okay now here Goku is now holding a note which allows him to demand payment from himself so the law now considers the obligation as extinguished and this is known as confusion or merger of the rights of the Creditor and the detor but if instead of the detor acquiring the rights of the Creditor the parties become both principal creditors or debtors of each other such as when Goku owes one peso to Vegeta and Vegeta also one owes one peso to Goku then the law allows the obligation to be extinguished by compensation okay and this can only take place if both parties are principally the Creditor and deor of each other if both debts are either a sum of money or a consumable thing of the same kind and quality third both debts are due liquidated and demandable and fourth there is no retention or controversy or in other words no third person has told them that the debts are subject to the claims of such third person okay finally obligations may be extinguished by Novation which can take place either by changing the sub the object or the principal conditions of the obligation by substituting the detor either with or without his knowledge and consent or by Suba a third person in the rights of the Creditor note that Novation is never presumed so to be sure that there is Novation the tests are either that Novation has been expressed unequivocally for Express inovation or that the old and the new obligations are incompatible on All Points no they cannot exist together like this no and that goes for implied Novation and the first is easy enough no the first kind of uh mode of Novation no if the OB if the object becomes different or if the principal conditions change but Novation by substitution of the detor the second kind has to follow the rules on payment by third person under Articles 1235 to 1238 so if the deor is substituted with his knowledge and consent then the new substitute detor acquires the right to ask for reimbursement from the detor plus the right to be subrogated to the rights of the detor against accessory contracts like mortgage guarantee Etc okay but if the detor is uh substituted without the knowledge of consent or consent then the new substitute detor has no right to subrogation meaning he cannot invoke the guarantees or sureties Etc no and the only right he has the new deor has is to ask for reimbursement from the old detor but only a limited reimbursement only to the extent by which the original detor was benefited in either case the consent of the Creditor will always be required the third form of Novation takes place when a third person is subrogated to the rights of the creditor which can either be conventional which requires consent of the original parties and the third person or it can be legal subrogation which takes place when a creditor pays another creditor who is preferred meaning a creditor that has probably let's say a mortgage no mortgage credit B uh second is if a uh when a third person pays with the approval of the detor or third when a person who is interested in the Fulfillment of the obligation pays it okay in which case that thir third person now has the uh rights of the Creditor and in all those three cases subrogation transfers to the person subrogated not only the credit but also all the connected rights such as those against guarantees mortgages Etc now aside from those main modes for extinguishing obligations which are again payment or performance loss of the thing due condonation or remission confusion or merger compensation and Novation the law also recognizes other ways by which the life of an obligation may end such as death of a party obligated to render personal services or or Mutual desistance or withdrawal they both don't want to uh push through anymore or arrival of a resolutory period or fulfillment of a resolutory uh condition remember rights exist right away but uh are terminated upon arrival of the resolutory period or happening of the resolutory condition we also have compromise impossibility of fulfillment happening of a fortuitous event subject to exceptions of course prescription recession and nullity of contract and others and in these cases of course the obligation will also be extinguished okay so that's it for a brief overview or review of obligations remember that this is since since this is just an overview several details have been omitted okay so I can just focus on the essential points but you can learn the details by either going through my other episodes in the oblon uh series which you can find in this Channel or better yet if you sit down open your textbooks and you study okay so I hope you have uh picked up a thing or two and I hope to see you uh next time see you soon guys bye