1. Transmissibility of rights Article 1178. Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary. (1112) (CIVIL CODE) a. Transmissible rights Transmissible rights – refer to rights which can be transferred to another by their nature and not otherwise prohibited by…
1. Usurious transactions Article 1175. Usurious transactions shall be governed by special laws. (n) (CIVIL CODE) See related: • Usury law 2. Presumptions Article 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. x x x…
Preliminary The injured party has the following remedies in case of breaches of obligations: 1) Fulfillment of the obligation; 2) Rescicission of obligation; or 3) In addition to Nos. 1 and 2, damages. (See CIVIL CODE, Paragraph 2, Article 1191) Creditors Article 1313. Creditors are protected in cases of contracts intended to defraud them. (n)…
1. Reciprocal obligations Reciprocal obligations – refer to obligations “that arise from the same cause, and in which each party is a debtor and a creditor of the other at the same time, such that the obligations of one are dependent upon the obligations of the other. They are to be performed simultaneously, so that…
1. Concept Article 1174. Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable. (1105a) (CIVIL CODE) Fortuitous…
1. Concept Article 1173. The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place. x x x If the law or contract does not state the diligence…
1. Standard of care The law provides for the following standard of care: 1) Ordinary diligence or good father of a family; and 2) Extraordinary diligence or the highest degree of care. a. Ordinary diligence Article 1173. x x x If the law or contract does not state the diligence which is to be observed…
1. Rights and obligations a. Creditors 1) To demand that a thing to be given is taken cared of Article 1163. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties…
1. Sources of obligations Article 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) (civil code) Thus, the following are the sources of obligations: 1) Law; 2) Contracts; 3) Quasi-contracts; 4) Acts or omissions punished by law; and 5) Quasi-delicts. a. Law Law…
Preliminary Article 1156. An obligation is a juridical necessity to give, to do or not to do. (n) (CIVIL CODE) Obligation – refers to “a juridical necessity to do or not to do.” (CIVIL CODE, Article 1156) Juridical necessity – refers to legal obligation or compulsion. Under this Article, the obligation being defined is a…