INTRODUCTION TO LAW ON OBLIGATIONS AND 2.

in its specific sense

CONTRACTS
Law in its specific sense is defined as a rule of conduct,
SOCIETY and LAW: just, obligatory, promulgated by a legitimate authority,
and of common observance and benefit.
 For a Society to Live in Peace, free from chaos
and confusion, there has to be LAW and Classification of Law
ORDER. 1. It is a rule of conduct.
 LAW begins when somebody decided to do
something to another which he does not like. Law tells us what shall be done and what shall not be
done. As a rule of human conduct, law takes cognizance
 The main function of LAW is to put SOCIETY IN
of external acts only.
ORDER.
 Due to complexities and ever dynamic times, 2. It is obligatory.
Laws need to adapt; this resulted to too many,
Law is considered a positive command imposing a duty
too technical, and too incomprehensible laws in to obey and involving sanction which forces obedience.
a civilized society.
 An understanding and knowledge of the LAW 3. It is promulgated by legitimate authority.
gives one a great deal of advantage Laws are enacted by Congress, the legislative branch in
the Philippine government. Under the Constitution,
INTRODUCTION TO LAW
Congress is clothed with authority to promulgate laws.
BUSINESS and LAW: 4. It is of common observance and benefit.
 Business and Law are interconnected Law is intended by man to serve man. It regulates the
 If one wants to be successful in business, he relations of men to maintain harmony in society and to
either learn the law or hire the services of one make order and co-existence possible. Law must,
who knows and understands the law. therefore, be observed by all for the benefit of all.
 It is a must for businesses to employ the Necessity and functions of law.
services of accountants; after all, we are good in
numbers. Sometimes, they do need 1. What would life be without law?
accountants more than lawyers since business Society comes into existence because its members
are more interested in the BOTTOM FIGURES could not live without law. The need for internal order
rather than the lawsuits or legalities. is as constant as the need for external defense. No
 AN ACCOUNTANT with a VERY GOOD society can be stable in which either of these
FOUNDATION AND UNDERSTANDING OF LAW requirements fails to be provided for.
IS A PRICED POSSESSION TO ANY 2. What does law do?
BUSINESSMAN
 It has been said that law secures justice, resolves social
conflict, orders society, protects interest, controls social
Definition of Law. relations. Life without basic laws against theft, violence,
and destruction would be solitary, nasty brutish, and
1. in its broadest sense short. Life without other laws such as those regulating
traffic, sanitation, employment, business, redress of
Law in its general sense (derecho) is defined as any rule harm or of broken agreements would be less orderly,
of action or norm of conduct applicable to all objects of less healthful, less wholesome.
creation. It includes all those that govern or determine
the activities of men as rational beings as well as the 3. What is our duty as members of society?
movement or motion of all brute creatures, be it
animate or inanimate. No society can last and continue without means of
social control, without rules of social order binding on
its members. The sum of such rules as existing in a given
society, under whatever particular forms, is what, in
common speech, we understand by law or is referred to LAW ON OBLIGATIONS AND CONTRACTS, introduction
as the legal system.
The law on obligations and contracts is the body of rules
which deals with the nature and sources of obligations
and the rights and duties arising from agreements and
Sources of Law the particular contracts.

1. Constitution The law on obligations and contracts is found in

Republic Act No. 386 otherwise known as the Civil Code
It is referred to as the fundamental law or supreme law of the Philippines under Book IV. The general provisions
of highest law of the land because it is promulgated by on obligations are contained in Title I, Articles 1156-
the people themselves, binding on all individual citizens 1304, while those on contracts, in Title II, Articles 1305-
and all agencies of the government. It is the law to 1422.The general rules of law governing contracts are
which all other laws enacted by the legislature must also applicable to the particular kinds of contracts (like
conform. This means that laws which are declared by sale, agency, partnership, barter, etc.) in addition to the
the courts to be inconsistent with the Constitution shall special provisions of law governing each type of
be void and the latter shall govern. contract. Book IV also contains provisions dealing with
natural obligations which are found under Title III,
2. Legislation
Articles 1423 to 1430.
It consists the declaration of legal rules by a competent
BOOK IV
authority. It is the preponderant source of law in the
Philippines. Acts passed by the legislature are so-called OBLIGATIONS AND CONTRACTS
enacted law or statute. It includes ordinances enacted
by the local government units. Title. I. - OBLIGATIONS

3. Administrative rules and regulations CHAPTER 1

They are those issued by administrative officials under GENERAL PROVISIONS

legislative authority. Administrative rules and
regulations are intended to clarify or explain the law
and carry into effect its general provisions.
Art. 1156. An obligation is a juridical necessity to give,
Administrative acts are valid only when they are not
to do or not to do. (n)
contrary to laws and Constitution.
Obligation is a juridical necessity because in case of non-
4. Judicial decisions of the Supreme Court
compliance, the courts of justice may be called upon by
The decisions of the courts, particularly the Supreme the aggrieved party to enforce its fulfillment or, in
Court, applying or interpreting the laws or the default thereof, the economic value that it represents.
Constitution for part of the legal system of the
Essential requisites of an obligation:
Philippines (Article 8 of the New Civil Code). The
decisions of a superior court on a point of law are 1. Passive subject (Debtor or Obligor) - the person who
binding on all subordinate courts. This is referred to as is bound and has the duty to
the doctrine of precedent or stare decisis.
the fulfillment of the obligation;
5. Customs.
2. Active subject (Creditor or Obligee) - the person who
It consists of those habits and practices which through is entitled to demand the fulfillment of the obligation;
long and uninterrupted usage have become he has a right for the enforcement of the terms agreed
acknowledged and approved by society as binding rules upon;
of conduct. It has the force and effect of law when
recognized and enforced by the state. 3. Object or Prestation (Subject matter of the
obligation)
- The conduct required to be observed by the debtor. It
may consist in giving, doing, or not doing. Without the
prestation, there is nothing to perform. 3. Quasi-contracts - when they arise from lawful,
voluntary and unilateral acts which are enforceable to
4. Juridical tie or legal tie (Efficient cause) the end that no one shall be unjustly enriched or
benefited at the expense of another. In a sense, these
- That which binds or connects the parties to the obligations may be considered as arising from law.
obligation. The tie in an obligation can easily be
determined by knowing the source of the obligation. Example:

Example: The obligation to return money paid by mistake or

which is not due. (Article 2154 of the
Under a building contract, X bound himself to build a
house for Y for PhP 1,000,000.00. Civil Code)

Passive subject - X 4. Crimes or acts or omissions punished by law - when

they arise from civil liability which is the consequence of
Active subject - Y a criminal offense.
Object/Prestation - the building of the house Example:
Juridical tie - agreement or contract The obligation of a thief to return the car stolen by him;
the duty of a killer to indemnify the heirs of the victim.

5. Quasi-delicts or torts - when they arise from damage

Art. 1157. Obligations arise from:
caused to another through an act or omission, there
(1) Law; being fault or negligence, but no contractual relation
exists between the parties.
(2) Contracts;
Example:
(3) Quasi-contracts;
The obligation of the head of a family that lives in a
(4) Acts or omissions punished by law; and building or a part thereof to answer for damages caused
by things thrown or falling from the same (Article 2193).
(5) Quasi-delicts.

Art. 1158. Obligations derived from law are not

Sources of obligations: presumed. Only those expressly determined in this
Code or in special laws are demandable, and shall be
1. Law - when they are imposed by law itself.
regulated by the precepts of the law which establishes
Example: them; and as to what has not been foreseen, by the
provisions of this Book.
Obligation to pay taxes, obligation to support one’s
family. Article 1158 refers to legal obligations or obligations
arising from law. They are not presumed because they
2. Contracts - when they arise from the stipulation of are considered a burden upon the obligor. They are the
the parties. exception, not the rule. To be demandable, they must
be clearly set forth in the law.
Example:
Examples:
The obligation to repay a loan or indebtedness by virtue
of an agreement. 1. A private school has no legal obligation to provide
clothing allowance to its teachers

because there is no law which imposes this obligation

upon schools.
2. An employer has no obligation to furnish free legal KINDS OF QUASI-CONTRACTS
assistance to his employees
1. Negotiorum Gestio - is the voluntary management of
because no law requires this, and therefore, an the property or affairs of another without the
employee may not demand from his employer knowledge or consent of the latter.

the amount he may have paid to his lawyer. Example:

X went to Baguio with his family without leaving

somebody to look after his house in
Art. 1159. Obligations arising from contracts have the
force of law between the contracting parties and Manila. While in Baguio, a big fire broke out near the
should be complied with in good faith. house of X. Through the effort of Y, a neighbor, the
house of X was saved from being destroyed by fire. Y,
Contractual Obligations however, incurred expenses.
A contract is a meeting of minds between two (2) In this case, X has the obligation to reimburse Y for said
persons whereby one binds himself, expenses, although he did not actually give his consent
to the act of Y in saving his house, on the principle that
with respect to the other, to give something or to
no one must be unjustly enriched at the expense of
render some service.
another.
Example:
2. Solutio indebiti - is the juridical relation which is
S agrees to sell his house to B and B agrees to buy the created when something is received when there is no
house of S, voluntarily and right to demand it and it was unduly delivered through
mistake.
willingly, then they are bound by the terms of their
contract. That which is agreed upon in teh Requisites of solutio indebiti:

contract is the law between S and B and must be 2.a There is no right to receive the thing
complied with in good faith. delivered; and

2.b The thing was delivered through mistake.

Art. 1160. Obligations derived from quasi-contracts Example:

shall be subject to the provisions of Chapter 1, Title
X, a grocery cashier, is supposed to give Y, a customer,
XVII, of this Book.
PhP 40.00 as change. X mistakenly gave Y PhP 400.00
A quasi-contract is that juridical relation resulting from instead.
lawful, voluntary and unilateral acts by virtue of which
Y in this case has an obligation to return the PhP 360
the parties become bound to each other to the end that
excess change. This is based on the principle that no
no one will be unjustly enriched or benefited at the
one must be unjustly enriched at the expense of
expense of another.
another. If Y here did not return the excess change, X
It is not properly a contract at all. In contract, there is a will have to cover the shortage with her own money. Y
meeting of the minds or consent, that is the parties will be unjustly enriched by PhP 360.00 at the expense
must have deliberately entered into a formal of X.
agreement. In a quasi-contract, there is no consent but
the same is supplied by fiction of law. In other words,
the law considers the parties as having entered into a Article 1161. Civil obligations arising from criminal
contract, although they have not actually done so and, offenses shall be governed by the penal laws, subject
and irrespective of their intention to prevent injustice or to the provisions of article 2177, and of the pertinent
the unjust enrichment of a person at the expense of provisions of Chapter 2, Preliminary Title, on Human
another. Relations, and of Title XVIII of this Book, regulating
damages.
Scope of Civil Liability: QUASI-DELICT & CRIME, distinctions

1. Restitution; Quasi - delict Crime

There is only negligence. There is criminal or
2. Reparation for the damage caused; and malicious intent or
3. Indemnification for consequential damages. criminal negligence
The purpose is The purpose is
Example: indemnification of the punishment
offended
X stole the car of Y. If X is convicted, the court will order party.
X: (1) to return the car or to pay the its value if it was Concerns private interest. Concerns public interest.
lost or destroyed; (2) to pay for any damage caused to Involves civil liability only. Involves criminal and civil
the car; and (3) to pay such other damages suffered by Y liability
as a consequence of the crime. Liability can be Cannot be compromised
compromised or agreed to or settled by the
by parties themselves.
Article 1162. Obligations derived from quasi-delicts the parties.
shall be governed by the provisions of Chapter 2, Title The fault of the defendant Guilt must be proven
XVII of this Book, and by special laws. may be proven by beyond reasonable
preponderance of doubt.
A quasi-delict (torts) is an act or omission by a person evidence only.
which causes damage to another in his person, property
or rights giving rise to an obligation to pay for the
damage done, there being fault or negligence but there
is no pre-existing contractual relation between the
parties.

Requisites of quasi-delict:

1. There must be an act or omission;

2. There must be fault or negligence;

3. There must be damage caused;

4. There must be direct relation or connection of cause

and effect between the act or omission and the
damage; and

5. There is no pre-existing contractual relation between

the parties.

Example:

While playing softball with his friends, X broke the

window glass of Y, his neighbor. The incident would not
have happened had they played a little farther from the
house of Y. In this case, X in under obligation to pay
damage caused to Y by his act although there is no pre-
existing contractual relation between them because he
is guilty of fault or negligence.
REVIEWER ___11. Obligee
___1. Meeting of minds between two persons whereby one binds himself, a) Creditor
with respect to the other, to give something or to render some service. b) Third party
c) Object
a) a. Contract d) Debtor
b) b. Law
c) c. Quasi-contract ___12. Vinculum juris
d) d. Quasi-delict
a) Debtor
___ 2. Obligations arising from contract can be enforced between the b) Object
contracting parties provided such contract is not contrary to c) Active subject
d) Juridical tie
a) All of the above
b) Customs ___13. Creditor
c) Morals
d) Law a) Active subject
b) Obligor
___ 3. Juridical relation that arises from certain lawful, voluntary and c) Object
unilateral acts to the end that no one shall be unjustly enriched at the d) Passive subject
expense of another.
___14. It is the juridical relation which is created when something is received
a) Contract when there is no right to demand it and it was unduly delivered through
b) Acts or omission punished by law mistake.
c) Quasi-delict
d) Quasi-contract a) Negotiorum gestio
b) Solutio indebiti
___4. Unauthorized management of property or affairs c) Quasi-delict
d) Crime
a) Solutio indebiti
b) Dolo causante ___15. It is the conduct required to be observed by the debtor.
c) Negotiorum gestio
d) None of the above. a) Prestation
b) Active subject
___ 5. Act or omission punishable by law c) Passive Subject
d) Juridical tie
a) Delict
b) Fault ___16. Arise from damage caused to another through an act or omission,
c) Negligence there being fault or negligence, but no contractual relation exists between
d) Deceit the parties.
___6. The omission of that diligence which is required by the nature of the a) Crime
obligation and corresponds with the circumstances of the persons, time, b) Law
place and manner. c) Quasi-delict
d) Contract
a) Crime
b) Fault ___17. Includes damages caused the injured party and those suffered by his
c) Accident family or third person by reason of the crime.
d) Negligence
a) Indemnification
___7. The wrongful act results from imprudence, negligence, lack of b) None of the above
foresight, or lack of skill c) Reparation
d) Restitution
a.) Fault
b.) Felony ___18. The court shall determine the amount of damage, taking into
c.) Accident consideration the price of the thing, and its sentimental value to the injured
d.) Negligence party
___8. The act is performed with deliberate intent a) Restitution
b) Reparation
a) Felony c) C.Indemnification
b) Accident d) None of the above.
c) Deceit
d) Negligence ___19. It permits allowance for any deterioration or diminution in value of
the thing as determined by the court.
___9. Complete the sentence:
a) Reparation
An obligation is a juridical necessity... b) ndemnification
a) to do c) None of the above
b) All of the above d) Restitution
c) not to do ___20. X bound himself to build a house for Y for 50 Million Pesos. The active
d) to give subject is...
___10. Which of the following is not a source of obligation? a) House
a) Law b) X
b) Contracts c) Y
c) Act or omission punished by law d) 50 Million Pesos
d) None of the above.
PLEASE ANSWER FIRST BEFORE LOOKING AT THE ANSWERS!  care of the thing due with the diligence of a good father
1.) A 6.) D 11.) A 16.) C of a family pending delivery.
2.) A 7.) A 12.) D 17.) A
3.) D 8.) C 13.) A 18.) B 2. DELIVER THE FRUITS OF THE THING. (See discussion
4.) C 9.) B 14.) B 19.) D
5.) A 10.) D 15.) A 20.) C under Article 1164)

3. DELIVER THE ACCESSIONS AND ACCESSORIES. (See

CHAPTER 2 discussion under Article 1166)
NATURE and EFFECTS OF OBLIGATIONS
4. DELIVER THE THING ITSELF.
Art. 1163. Every person obliged to give something is
5. ANSWER FOR DAMAGES IN CASE OF NON-
also obliged to take care of it with the proper diligence
FULFILLMENT OR BREACH. (See discussion under Article
of a good father of a family, unless the law or the
1170)
stipulation of the parties requires another standard of
care. (1094a) 2. INDETERMINATE or GENERIC
– designated by class or genus without
OBJECT OR PRESTATION:
designation or physical segregation.
2 KINDS OF PRESTATIONS:
A generic or indeterminate thing is not particularly
1. REAL OBLIGATION (to give) designated or physically segregated from all others of
– Article 1163 to 1166 the same class. It means that a thing cannot be
2. PERSONAL OBLIGATION (to do or not to do) specifically determined from things of the same class.
– Article 1167 to 1168 The thing can be replaced by another thing that is of the
same quality.
There are 3 Prestation in an Obligation:
A generic thing is identified only by its specie. The
1. TO GIVE (OBLIGATION TO GIVE) debtor can give anything of the same class as long as it
2. TO DO (OBLIGATION TO DO) is of the same kind.
3. NOT TO DO (OBLIGATION NOT TO DO)
Examples:
In obligation to give, the THING may either be:
1. A car
1. DETERMINATE or SPECIFIC
– Particularly designated or physically 2. A horse
segregated from the class
3. A Rolex watch
A determinate thing is determined by its individuality.
Duties of debtor in obligation to give a GENERIC
The debtor cannot substitute it with another although
(INDETERMINATE) THING.
the substitute is of the same kind and quality without
the consent of the creditor. 1. To deliver a thing which is of the quality intended by
the parties taking into consideration the purpose of the
Examples:
obligation and other circumstances. (Article 1246)
1. The car sold by X last August 5, 2020
2. To be liable for damages in case of fraud, negligence,
2. My cat named “Kylie” or delay, in the performance of his obligation, or
contravention of the tenor thereof.
3. Building located at No. 233, Lacson Street, Bacolod
City Article 1163 talks about an OBLIGATION TO GIVE A
DETERMINATE or SPECIFIC THING
Duties of debtor in obligation to give a SPECIFIC
(DETERMINATE) THING. According to Art. 1163 a person obliged to deliver or
give a specific thing (Debtor, Obligor or Passive Subject)
1. PRESERVE THE THING. - In obligation to give (real has to take care of the thing with DILIGENCE.
obligations), the obligor has the incidental duty to take
DILIGENCE ARTICLE 1164 THE CREDITOR HAS THE RIGHT TO THE
FRUITS OF THE THING FROM THE TIME THE
- Attention and care required of a person in a OBLIGATION TO DELIVER ARISES. HOWEVER, HE SHALL
given situation. ACQUIRE NO REAL RIGHT OVER IT UNTIL THE SAME
HAS BEEN DELIVERED TO HIM.
3 KINDS OF DILIGENCE UNDER THE LAW: KINDS OF FRUITS:
1. EXTRAORDINARY 1. NATURAL FRUITS
– Extreme measure of care and caution – Spontaneous products of the soil, and the young,
2. ORDINARY and other products of animals.
– “Diligence of a Good Father of a Family” Ex: Grass, all trees and plants on land produced
3. SLIGHT DILIGENCE or SLIGHT CARE without the intervention of human labor.
– Less or no prudence 2. INDUSTRIAL FRUITS
- Are those produced by lands of any kind through
cultivation or labor.
DILIGENCE OF A GOOD FATHER OF FAMILY
Ex: Sugar cane, vegetables, rice; and all products of
Ordinary Diligence lands brought about by reason of human labor.
3. CIVIL FRUITS
- Diligence required of person obliged to deliver a – Are those derived by virtue of a juridical relation.
determinate thing Ex: rents of building, prices of leases of lands and
- An accepted notion that a FATHER will never other properties.
put his family at risk
- The obligor/Debtor/Passive subject should take
care of it as his own determinate thing When obligation to deliver fruits arises

HOW TO DETERMINE THE DILIGENCE REQUIRED: 1. At the time of “perfection of the contract” - birth of
the contract or the meeting of the minds of the parties
1. PROVISION OF LAW
– Article 1173 of Civil Code; common carrier 2. If the obligation is subject to a suspensive condition
required extraordinary diligence due to public or period, it arises upon the fulfillment of the condition
safety and public policy. or arrival of the term. However, the parties may make a
2. STIPULATION OF PARTIES stipulation to the contrary as regards the right of the
– Standard of care other than ORDINARY creditor to the fruits of the thing.
DILIGENCE; NO DILIGENCE (NOT ALLOWED)
3. In a contract of sale, the obligation arises from the
3. ABSENCE OF STIPULATION
perfection of the contract even if the obligation is
– Ordinary diligence
subject to a suspensive condition or period where the
price has been paid.
WHAT ARE THE OBLIGATION OF A PERSON WHO IS
4. In obligations to give arising from law, quasi-
REQUIRED TO GIVE SOMETHING?
contracts, delicts, and quasi-delicts, the time of
1. TO PRESERVE and TAKE GOOD CARE OF THE performance is determined by the specific provisions of
THING LIKE A DILIGENCE OF A GOOD FATHER the law applicable.
UNLESS THE PARTIES AGREED TO ANOTHER
PERSONAL and REAL RIGHTS:
STANDARD OF CARE. (ART. 1163)
2. TO DELIVER THE THING INCLUDING THE FRUITS PERSONAL RIGHTS or JUS in PERSONAM
OF THE THING. (ART. 1164)
3. TO DELIVER THE ACCESSIONS and ACCESSORIES – the right or power of a person (creditor) to demand
OF THE THING. (Art. 1166) from another (debtor), as a definite passive subject, the
fulfillment of the latter’s obligation to GIVE, TO DO, or
NOT TO DO. It is binding or enforceable only against a
particular person.
REAL RIGHTS or JUS in RE HOW DELIVERY IS MADE?

– power/right/ interest over a specific thing (like WHEN THE OBLIGATION TO DELIVER ARISES:
ownership, possession, mortgage) without a definite
passive subject against whom the right may be 1. IF WITH A TERM or AGREEMENT – when the
personally enforced and is binding on the whole world. term arrives or the condition happens.

CREDITOR’S/OBLIGEE/ACTIVE SUBJECT’S RIGHTS TO THE 2. IF WITH NO TERM or AGREEMENT – Perfection

FRUITS (as well as the THING): of the Contract. PERFECTION (meeting of the
minds of the parties involved)
 PERSONAL RIGHT from the TIME the obligation
to deliver it arises. (WHEN?)
 REAL RIGHT upon delivery to him
Art. 1165. When what is to be delivered is a
Kinds of Delivery determinate thing, the creditor, in addition to the right
granted him by Article 1170, may compel the debtor to
1. Actual or Constructive delivery (tradition) - the make the delivery.
property changes hands physically.
If the thing is indeterminate or generic, he may ask
Example: A buys cake from B. The delivery made by B is that the obligation be complied with at the expense of
the actual delivery of the thing due. the debtor.

2. Constructive Delivery - the physical transfer of the If the obligor delays, or has promised to deliver the
property is implied. same thing to two or more persons who do not have
the same interest, he shall be responsible for any
a. Tradition simbolica (symbolical tradition) fortuitous event until he has effected the delivery.
(1096)
Example: When the keys of a house are given to the
new owner, the house being the

object of the sale. Rights of Creditor if Debtor Failed to Deliver

b. Traditio longa manu - delivery by mere consent or 1. If the thing is SPECIFIC or DETERMINATE:
pointing out the object
a. An action for Specific Performance with a right to
Example: When pointing out to a van which is the object indemnity for damages if the debtor is guilty of fraud,
of the sale negligence, delay, or contravention in the performance
of the obligation. The Creditor can compel the debtor
c. Tradition brevi manu (delivery by short hand) - from
to make the delivery. OR
possessor non – owner to Possessor owner
b. Demand for Rescission or Cancellation of the
Example: When a tenant already in possession of a
obligation with a right to indemnity for damages if the
house buys the house he is renting.
debtor is guilty of fraud, negligence, delay, or
d. Traditio constitutum possessorium. contravention in the performance of the obligation. OR
- From possessor owner to possessor Non – owner.
c. Demand payment for damages only, where it is the
Example: A house owner, who sells his house, but only feasible remedy.
remains in possession as tenant of the same house.
2. If the thing is GENERIC or INDETERMINATE:
e. Tradition by execution of legal forms.
a. Ask for compliance of the obligation by the debtor
Example: The execution of public instrument in selling himself or by third person at the debtor’s expense.
real properties. Demand a replacement which is not of inferior or
superior quality.
b. Demand damages from the debtor if the debtor is House or trees on a land; rents of a building; air-
guilty of fraud, negligence, delay, or contravention in conditioner in a car; profits or dividends accruing from
the performance of the obligation. (Article 1170) shares of stocks

(3rd paragraph of article) 2. Accessories - are things joined to or included with the
principal thing for the latter’s embellishment, better use
Where the debtor delays or has promised delivery to or completion. ACCESSORIES MUST ALWAYS GO
separate creditors, he shall be responsible even in TOGETHER WITH THE PRICIPALS.
fortuitous events.
Examples:
1. Delay (See discussion under Article 1169)
Key of a house, frame of a picture; bracelet of a watch;
2. Fortuitous events (see discussion on art 1174)
bow of a violin
Definition: EVENT WHICH COULD NOT BE
FORESEEN OR WHICH THOUGH FORESEEN
Rights of creditor to Accessions and Accessories
WERE INEVITABLE. (ACT OF GOD or ACT OF
MAN/Force Majeure) General Rule: All accessions and accessories are
considered included in the obligation to deliver a
determinate thing although they may not have been
Rules:
mentioned. Accessory follows the principal.
 An obligation to deliver a DETERMINATE or
Exception: It is stipulated otherwise.
SPECIFIC THING is EXTINGUISHED BY
FORTUITOUS EVENT. Art. 1167. If a person obliged to do something fails to
do it, the same shall be executed at his cost.
EXCEPT:
This same rule shall be observed if he does it in
OBLIGOR DELAYS – LEGAL DELAY (with DEMAND) or,
contravention of the tenor of the obligation.
OBLIGOR PROMISED TO DELIVER THE SAME THING TO
Furthermore, it may be decreed that what has been
TWO OR MORE PERSONS WHO DO NOT HAVE THE
poorly done be undone. (1098)
SAME INTEREST. (BAD FAITH)
- REFERS TO A PERSONAL POSITIVE OBLIGATION
 An obligation to deliver an INDETERMINATE or
(TO DO)
GENERIC THING is NOT EXTINGUISHED BY A
FORTUITOUS EVENT for GENUS NEVER Three (3) instances contemplated under Art. 1167:
PERISHES
1. The debtor fails to perform an obligation to do;

2. The debtor performs an obligation to do but contrary

Art. 1166. The obligation to give a determinate thing to the terms thereof; or
includes that of delivering all its accessions and
accessories, even though they may not have been 3. The debtor performs an obligation to do but in poor
mentioned. (1097a) manner.

Meaning of Accessions and Accessories Remedies of creditor in positive personal obligation

1. Accessions (PRODUCED) - are the fruits of a thing or 1. The debtor fails to perform an obligation to do;
additions to or improvements upon a thing (the
principal). Accessions are not necessary to the principal a. To have the obligation performed by himself, or by
thing. another (third party), unless personal considerations
are involved, at the expense of the debtor; and
Examples:
EXCEPTION: NO INVOLUNTARILY SERVITUDE OR IF
PERSONAL QUALIFICATION IS THE CONSIDERATION
b. To claim DAMAGES if with fraud, negligence, delay or Art. 1169. Those obliged to deliver or to do something
contravention of the terms (Article 1170) incur in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment of
2. Contrary to what was stipulated or poorly done. (In their obligation.
case the obligation is done in contravention of the
terms of the same or is poorly done) Meaning of DELAY

a. To have the obligation performed or executed by Before we define “delay”, please note already that it is
debtor himself or by a Third party if possible at Debtor’s not the same as how it is used in our common language.
expense (it may be ordered (by the court upon proper (Delayed period? No, it’s different. That is not like it. But
filing of Complaint) that it be undone if it is still possible you can demand “support” from your partner tho. 😉 )
to do what was done.)
1. Ordinary delay is merely the failure to perform an
obligation on time. This does not constitute breach.

b. To claim DAMAGES if with fraud, negligence, delay or 2. Legal delay or default or mora is the failure to
contravention of the terms (Article 1170) perform an obligation on time which failure constitutes
a breach of the obligation. (Article 1169 onwards)

Can make the delayed party liable for interest

Art. 1168. When the obligation consists in not doing, and possible damages
and the obligor does what has been forbidden him, it
shall also be undone at his expense. (1099a) Kinds of Delay/ Default/ Mora (Legal Delay) & its
effects :
- REFERS TO A PERSONAL NEGATIVE OBLIGATION
(NOT TO DO) 1. Mora solvendi or the delay on the part of the
debtor/obligor/passive subject to fulfill his obligation
In an obligation not to do, the duty of the obligor (to give or to do);
(debtor) is to abstain from an act. Here, there is no
specific performance. The very obligation is fulfilled in Ex: re (delay in obligation to give)/ ex persona (delay in
not doing what is forbidden. Hence, in this kind of obligation to do)
obligation, the debtor cannot be guilty of delay.
a. The debtor is guilty of breach or violation of the
As a rules, the remedy of the obligee is the undoing of obligation;
the forbidden thing plus damages. However, if it is not
possible to undo what was done, either physically or b. He is liable to creditor for interest;
legally, or because of the rights acquired by third
c. He is liable even for a fortuitous event when the
persons who acted in good faith, or for some other
obligation is to deliver a determinate thing.
reason, his remedy is an action for damages caused by
the debtor’s violation of his obligation. 2. Mora accipiendi or the delay on the part of the
creditor/obligee/active subject to accept the
REMEDIES OF THE CREDITOR:
performance of the obligation
1. To UNDONE WHAT HAS BEEN DONE
a. The debtor is guilty of breach or violation of the
2. To claim DAMAGES if with fraud, negligence,
obligation;
delay or contravention of the terms (Article
1170) b. He is liable for damages suffered, if any, by the
debtor;
Example:
c. He bears the risk of loss of the thing due;
B bought a land from S. It was stipulated that S would
not construct a fence on a certain portion of his land d. Where the obligation is to pay money, the debtor is
adjoining that sold to B. not liable for interest from the time of creditor’s delay;
Should S construct a fence in violation of the
agreement, B can bring an action to have the fence
removed at the expense of S.
e. The debtor may release himself from the obligation 2. Demand (not mere reminder or notice) made by the
by the consignation or deposit in court of the thing or creditor upon the debtor to comply with his obligation
sum due. which demand may be either judicial (when a complaint
is filed in court) or extrajudicial (when made outside of
3. Compensatio morae or the delay of the debtor/ court, orally or in writing); and
obligors in reciprocal obligations (like in sale), the delay
of the obligor cancels the delay of the obligee, and vice 3. Failure of the debtor to comply with such demand.
versa. The net result is that there is no actionable
default on the part of both parties. When demand is not necessary to put debtor in delay

As a general rule, delay by the debtor begins only from

the moment a demand, judicial or extra-judicial, for the
IN ORDER TO BE CONSIDERED IN DELAY OR MORA: fulfillment of the former’s obligation is made by the
creditor. Without such amount, the effect of default will
THERE HAS TO BE DEMAND JUDICIALLY and not arise. The following are the exceptions:
EXTRAJUDICIALLY

However, the demand by the creditor shall not be

necessary in order that delay may exist: 1. When the obligation so provides -

(1)When the obligation or the law expressly so Example:

declare; or
D promised to pay C the sum of P20,000.00 on or before
(2) When from the nature and the circumstances of November 30, 2020, without the need of any demand.
the obligation Therefore, if D fails to pay on November 30, 2020, he is
automatically in default.
it appears that the designation of the time when the
thing is to be delivered or the service is to be rendered 2. When the law so provides -
was a controlling motive for the establishment of the
contract; or Example:

(3) When demand would be useless, as when the Under the law, taxes should be paid to the government
obligor has rendered it beyond his power to perform. on or before a specific date; otherwise penalties and
surcharges are imposed without the need of demand
In reciprocal obligations, neither party incurs in delay if for payment
the other does not comply or is not ready to comply in
a proper manner with what is incumbent upon him. 3. When time is of the essence -
From the moment one of the parties fulfills his
Example:
obligation, delay by the other begins. (1100a)
The making of a wedding dress and the obligation to
deliver it on a specific time to be used by the bride on
RECIPROCAL OBLIGATION her wedding. Failure to comply with the obligation on a
specific date will no longer benefit the creditor. In this
- Fulfillment of an obligation by one party example, time element is important as performance
depends upon the fulfillment of the obligation itself.
by both parties in simultaneous.
- One must comply so that the other party may 4. When demand would be useless -
be in delay or default.
Example:
Requisites of delay or default by the debtor (mora
S obliged himself to deliver specific horse to B on
solvendi)
September 5, 2019. Through S’ negligence or deliberate
1. Failure of the debtor to perform his (positive) act, the horse died on September 02, 2019.
obligation on the date agreed upon;
Under this situation, any demand for the delivery of the Example:
horse on September 2 would be useless as S has made it
impossible for him to perform his obligation, S obliged himself to deliver to B 20 bottles of wine, of a
particular brand. Subsequently, S delivered 20 bottles
Demand is also unnecessary where it is apparent that it knowing that they contain cheaper wine. S is guilty of
would be unavailing, as where there has been a prior fraud and is liable for damages to B.
absolute refusal by S.
2. NEGLIGENCE or CULPA
5. When there is performance by a party in reciprocal – Any voluntary acts or omission, there being no
obligations - bad faith or malice, which prevents the normal
fulfillment of an obligation
In case of reciprocal obligations, the performance of
one is conditioned upon the simultaneous fulfillment on Example:
the part of the other. So neither party incurs in delay if
the other does not comply or is not ready to comply in a P is a passenger in a taxi. Here, there is considered a
proper manner with what is incumbent upon him. This contract of carriage between P and the owner of the
is compensatio morae. taxi company. In consideration of the fare to be paid by
P, the owner of the taxi company, through the driver,
From the moment, however, a party fulfills or is ready agrees to safely bring P to his destination.
to fulfill his obligation, delay by the other begins.
If, through the recklessness of the driver, as a result of
which P is injured, there is negligence which would
make the owner liable for damages. If the taxi
Example: contained defective parts, the failure to repair the same
constitutes also negligence on the part of the owner.
S agreed to sell to B his television set for P10,000.00.
The obligation of S is to deliver the television set while Fraud and negligence distinguished.
that of B, to pay P10,000.00.
FRAUD NEGLIGENCE
Since no date is set for performance of their respective 1 Deliberate intention to There is no such
obligations, it is understood that it must be cause damage or injury intention
simultaneous. S cannot demand payment if he himself 2 Waiver of the liability for Waiver may be
cannot deliver the television set. From the moment S future fraud is VOID allowed
delivers the television set, B is in default if he does not 3 Fraud must be clearly Negligence is
pay S without the need of any demand. proved presumed from
the violation
4 Liability for fraud cannot Liability may be
Art. 1170. Those who in the performance of their be mitigated reduced
obligations are guilty of fraud, negligence, or delay, according to the
and those who in any manner contravene the tenor
thereof, are liable for damages. (1101) 3. DELAY or MORA
– a delay which constitutes breach of obligation
GROUNDS FOR DAMAGES: (see discussion under Article 1169)
4. CONTRAVENTION OF TERM OF THE AGREEMENT
1. FRAUD (DECEIT or DOLO)
– This is the violation of the terms and
- deliberate or intentional evasion of the normal
conditions stipulated in the obligation. The
fulfillment of an obligation
contravention must not be due to a fortuitous
- As a ground for damages, it implies some kind
event or force majeure.
of malice or dishonesty and it cannot cover
- Illicit acts and defective performances.
cases of mistake and errors of judgment made
in good faith. It is synonymous to bad faith in Example:
that, it involves a design to mislead or deceive
another. E leased the apartment of R for P10,000 a month to be
paid in advance during the first week of every month.
The obligation of E, as lessee, is to pay the stipulated
rent. The obligation of R, as lessor, is to maintain E in • Waiver of action for future fraud is void
the peaceful possession of the apartment leased. (not allowed) because it is a license to do future
fraud without liability
If E violates his obligation, R is entitled to eject him from
the premise and recover damages. If R does not • HOWEVER, Action for PAST FRAUD may
maintain E in the peaceful possession of the apartment be waived
(as when R is not the owner), and E is ejected, R may be
held liable for damages for violation of the terms of his LIABLE TO ALL CONSEQUENCE OF HIS FRAUDULENT
obligation. ACTION

The measure of damages to be awarded to E or to R, as GENERAL CLASSIFICATION OF FRAUD:

the case may be, is left to the sound discretion of the
1. CIVIL FRAUD
court in accordance with the provisions of the Civil Code
2. CRIMINAL FRAUD
on Damages.
❖ CLASSIFICATION OF CIVIL FRAUD:

1. FRAUD IN THE CONSTITUTION OF AN

KINDS DAMAGES: (BOOK IV TITLE XVIII OF CC)
OBLIGATION (DOLO CAUSANTE)
1.MORAL (Art 2217 to 2220)
• Secure CONSENT OF PARTY in entering
2.EXEMPLARY OR CORRECTIVE – to correct the wrong into a contract
(SEE PAGES 59 TO 60 OF THE BALLADA BOOK) • Leads to vitiated consent (Voidable –
3.NOMINAL – sometimes in absence of actual D Injured party can Annul the Contract)

4. TEMPERATE or MODERATE – • REMEDY: ANNULMENT OF AGREEMENT +

DAMAGES
loss but amount cannot be determined
5. ACTUAL or COMPENSATORY Ex : sturya2 nga archi ka sa harvard ti nag huo2 man ang
creditor. Ay gli hindi, archi siya mga kilid2. Bali daw
(art 2205) sturya2 ah
6. LIQUIDATED – stipulated or
2. FRAUD IN THE PERFORMANCE OF AN
agreed upon by the parties OBLIGATION (DOLO INCIDENTE)
(INTO2)
Art. 1171. Responsibility arising from fraud is
• Breach or non – fulfillment of obligation
demandable in all obligations. Any waiver of an action
for future fraud is void. (1102a) • Remedy is not Annulment but DAMAGES
❖ FRAUD or DOLO – False representation of a matter • Originally, injured party VALIDLY gave his
of fact/whether by words or conduct/by false or consent
misleading allegations/or by concealment of that
which has been disclosed/. which deceives and EX: contract with obligee na ma ubra pool kg taposon
intends to deceive another so that he shall act upon mga sept pero pagka tapos sng sept wala pa gali pool.
it to his legal injury. Bali manog into ang obligee basi gin dala ya na to ang
kwarta.
WAIVER OF ACTION FOR FRAUD
Art. 1172. Responsibility arising from negligence in the
• RIGHTS GRANTED BY LAW MAY BE performance of every kind of obligation is also
WAIVED demandable, but such liability may be regulated by the
courts, according to the circumstances. (1103)
• Provided that such waiver is NOT
contrary to PUBLIC INTEREST, PUBLIC ORDER, or - LIABILITY ARISING FROM NEGLIGENCE IN THE
PREJUDICIAL TO THIRD PERSON PERFORMANCE OF EVERY KIND OF OBLIGATION
MAY BE REGULATED BY THE COURTS. THE
 LIABILITY OF THE OFFENDING PARTY MAY BE Stated otherwise, it is an event. Which is either
INCREASED or DECREASED DEPENDING UPON impossible to foresee or impossible to avoid.
THE CIRCUMSTANCE OF THE CASE.
The essence of a fortuitous event consists of being a
Art. 1173. The fault or negligence of the obligor happening independent of the will of the debtor and
consists in the omission of that diligence which is which happening, makes the normal fulfillment of the
required by the nature of the obligation and obligation impossible.
corresponds with the circumstances of the persons, of
the time and of the place. When negligence shows bad
faith, the provisions of Articles 1171 and 2201,
Fortuitous event distinguished from force majeure /
paragraph 2, shall apply.
CLASSIFICATION OF FORTUITOUS EVENTS:
If the law or contract does not state the diligence
1. Act of man - Strictly speaking, a fortuitous event is an
which is to be observed in the performance, that
event independent of the will of the obligor but not of
which is expected of a good father of a family shall be
the other human wills. Those arise from legitimate or
required. (1104a) (ORDINARY DILIGENCE)
illegitimate acts of persons other than the obligor
• Article 2201. 
Example:
In contracts and quasi-contracts, the damages
War, robbery, murder, insurrection
for which the obligor who acted in good faith is liable
shall be those that are the natural and probable 2. Act of God - they refer to what is called as force
consequences of the breach of the obligation, and majeure or those events which are totally independent
which the parties have foreseen or could have of the will of every human being. Brought by natural
reasonably foreseen at the time the obligation was forces. Situation should be PROVEN
constituted.
Examples:
In case of fraud, bad faith, malice or wanton
attitude, the obligor shall be responsible for all damages Earthquake, flood, rain, shipwreck, lightning, eruption
which may be reasonably attributed to the non- of volcano
performance of the obligation. (1107a)
Requisites of a fortuitous event
NEGLIGENCE vs FRAUD
1. The event must be independent of the human will;
KINDS OF NEGLIGENCE:
2. The event could not be foreseen, or if foreseen, is
o CIVIL (UNDER THE NEW CIVIL CODE) inevitable;

 Culpa Contractual – example 3. The occurrence must render it impossible for the
common carriers debtor to fulfill the obligation in a normal manner; and

 Culpa Aquiliana (Quasi – Delict) 4. The obligor must be free of participation in, or
aggravation of, the injury to the creditor
o CRIMINAL (UNDER THE REVISED PENAL
CODE) EFFECT OF FORTUITOUS EVENT ON OBLIGATIONS:

Art. 1174. Except in cases expressly specified by the  THE OBLIGATION IS EXTINGUISHED UNLESS THE
law, or when it is otherwise declared by stipulation, or OBJECT IS AN INDETERMINATE OR GENERIC
when the nature of the obligation requires the THING.
assumption of risk, no person shall be responsible for  OBLIGOR IS NOT LIABLE FOR DAMAGES.
those events which could not be foreseen, or which,  THE FE IS THE PROXIMATE and ONLY CAUSE
though foreseen, were inevitable. (1105a) FOR THE LOSS.

Meaning of fortuitous events Rules as to liability in case of fortuitous event

A fortuitous event is any event which cannot be A person is not, as a rule, responsible for loss or
foreseen, or which though foreseen, is inevitable. damages caused to another resulting from the non-
performance of his obligation due to fortuitous events. - assumptions which the law requires to be made
In other words, his obligation is extinguished. The based on another fact or group of facts or
exceptions are as follows: otherwise established in the action

1. When expressly specified by law KINDS on the LAW of EVIDENCE

2. When declared by stipulation 1. CONCLUSIVE or ABSOLUTE

3. When the nature of the obligation requires a) Not permitted to be overcome

assumption of risk by any proof that the fact is
otherwise if the basic facts is
EXCEPTION TO THE GENERAL RULE: established
1. IF SUCH LIABILITY IS EXPRESSLY PROVIDED b) IGNORATIA LEXIS NON
FOR BY LAW. EXCUSAT
Examples: 2. DISPUTABLE or REBUTTALE
PRESUMPTION
• Debtor in delay (Art
1165) a) Accepted or acted on when
there is no other evidence to
• Promises to deliver to 2
uphold the contention for
or more persons (Art 1165)
which it stands
• Generic thing – never
b) May be overcome by other
perishes
evidence
• DEBT of a specific
❖ Section 1176 are Disputable Presumption
things proceeds from a criminal offense
Article 1253 states that:
2. IF PARTY STIPULATED FOR IT.
“If the debt produces interest, payment of the
3. NATURE OF THE OBLIGATION REQUIRES THE
principal shall not be deemed to have been
ASSUMPTION OF RISK.
made until the interest have been covered.”

 if the creditor issued receipt showing payment

Art. 1175. Usurious transactions shall be governed by applied to principal, presumption is interest has
special laws. (n) been paid.
 if prior installment not paid but creditor issued
Requisites for recovery of interest receipt for the latter installment, presumption is
prior installment is paid already.
1. The payment of interest must be expressly
stipulated; and Art. 1177. The creditors, after having pursued the
property in possession of the debtor to satisfy their
2. The agreement must be in writing claims, may exercise all the rights and bring all the
actions of the latter for the same purpose, save those
Art. 1176. The receipt of the principal by the creditor
which are inherent in his person; they may also
without reservation with respect to the interest, shall
impugn the acts which the debtor may have done to
give rise to the presumption that said interest has
defraud them. (1111)
been paid.
Remedies available to creditors for the satisfaction of
The receipt of a later installment of a debt without
their claims
reservation as to prior installments, shall likewise raise
the presumption that such installments have been 1. Specific performance with the right to damages;
paid. (1110a)
2. Pursue the leviable property of the debtor (Principal
PRESUMPTIONS Remedy);
3. Exercise all the rights and bring all the actions of the
debtor (ACCTION SUBROGATORIA or subrogation)

- TO BE SUBROGATED TO ALL THE RIGHTS and ACTIONS

OF THE DEBTOR SAVE THOSE WHICH ARE INHERENT IN
HIS PERSON. The creditor can proceed against third
person against whom the debtor has claims.

Art. 155. The family home shall be exempt from

execution, forced sale or attachment except:

(1) For nonpayment of taxes;

(2) For debts incurred prior to the

constitution of the family home;

(3) For debts secured by mortgages on

the premises before or after such
constitution; and

(4) For debts due to laborers,

mechanics, architects, builders, material men and
others who have rendered service or furnished
material for the construction of the building.”

; or

4. Rescission (ACCION PAULIANA)

-Creditor has the right to impugn or attack the acts of

the debtor to defraud him by RESCINDING the contracts
entered by the debtor to defeat the creditors rights.
(example: Donating or selling the property to 3rd
person) Availed as a last resort, only if other remedies
will not be available.

Art. 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)

RIGHTS ACQUIRED BY VIRTUE OF AN OBLIGATION IS

TRANSMISSIBLE AND CAN BE ALIENTAED OR ASSIGNED
TO THIRD PERSONS. EXCEPT:

1. NON-TRASMISSIBLE BECAUSE OF ITS NATURE.

(Purely Personal Rights – Right to Vote.)

2. STIPULATED BY THE PARTIES.

3. OPERATION OF LAW.
Reviewer 12. Creditor has the right to impugn or attack the acts of the debtor to
defraud him by RESCINDING the contracts entered by the debtor to defeat
1. Demand is not necessary to incur in delay when: the creditors rights.
a) The debtor is guilty of non-performance. a) Accion Reinvindicatoria
b) Time is the controlling motive b) Accion Publiciana
c) If the obligation bears interest c) Subrogation
d) Creditor refuses the performance without just cause. d) Accion Pauliana
2. When the thing deteriorates with the debtor’s fault, the creditor may 13 False representation of a matter of fact/whether by words or conduct/by
choose one of the following: false or misleading allegations/or by concealment of that which has been
a) Suffer the deterioration disclosed/. which deceives and intends to deceive another so that he shall
b) Condone the obligation act upon it to his legal injury.
c) Rescission a) Fault
d) Mutual restitution b) Fraud
3. A contract is in the stage of perfection when: c) Negligence
a) The parties are haggling d) Diligence
b) Conception stage 14. The following are kinds of damages, except:
c) The parties come to an agreement a) Moral
d) Negotiations are in progress b) Liquidated
4. Legal Delay c) Litigated
a) force majeure d) Actual
b) Ordinary 15. The fulfillment of an obligation by one party depends upon the fulfillment
c) Fortuitous event of the obligation by both parties in simultaneous.
d) Default a) Reciprocal obligation
5. Delay on the part of the creditor b) Simultaneous obligation
a) Mora accipiende c) Unilateral obligation
b) Delaying tactics d) Indebtedness
c) Compensatio morae 16. I. Demand by the creditor shall not be necessary to hold the debtor in
d) Mora solvendi delay when time is of the essence of the obligation.
6. The following are grounds for damages except: II. To be considered in legal delay or default, there has to be judicial or extra-
a) Fraud or Dolo judicial demand.
b) Accident a) False, True
c) Negligence b) False, False
d) Delay c) True, True
7. Products of the soil through cultivation or intervention of human labor d) True, False
a) Civil Fruits 17. The creditor will step into the shoes of the debtor and exercise all the
b) Natural Fruits rights and actions of the debtor and proceed against third person against
c) Penal Fruits whom the debtor has claims.
d) Industrial Fruits a) Accion reivindicatoria
8. A constructive delivery by mere consent or by pointing out the object b) Accion astra
a) Tradition constitutum possessiorium c) Accion pauliana
b) Traditio simbolica d) Accion subrogatoria
c) Traditio longa manu 18. That which is independent of any human intervention. Brought about by
d) Tradition brevi manu natural forces.
9. I. Accessions are those which have for their object the embellishment, use a) Accident
or preservation of another thing which is more important. b) Act of God
II. Accessories always go with the principal thing. c) Fuerza Mayor
a) False, True d) Act of Human
b) False, False 19. Are those which arise from legitimate or illegitimate acts of persons other
c) True, True than the obligor.
d) True, False
10, I. Ordinary Delay is the failure to perform an obligation on time which a) Accident
constitutes a breach of obligation. b) Fuerza Mayor
II. Legal Delay is the failure to perform an obligation on time. c) Act of God
a) False, True d) Negligence of third person
b) True, True
c) True, False 20. Which among the following is false?
d) False, False
11 I. Rights acquired by virtue of an obligation is transmissible and can be a) Waiver for future void is valid.
alienated or assigned to third persons. b) The waiver must not be contrary to public interest and public
II. The parties cannot stipulate as to the transmissibility of rights acquired by order
reason of obligation. c) Action for past fraud may be waived.
a) True, True d) Rights granted by law may be waived.
b) False, True
c) True, False ANSWER
d) False, False

1. B 8. C 15. A
2. C 9. A 16. C
3. C 10. A 17. D
4. D 11. C 18. B
5. A 12. D 19. B
6. B 13. B 20. A
7. D 14. C