General Divisions of Law

1. Law in Strict Legal Sense (State Law)

2. Law in Non-legal sense
Subjects of Law
a. Divine Law
b. Natural Law
c. Moral Law
d. Physical Law

Concepts of State Law

1. General Sense
2. Specific Sense

Characteristics of Law.
1. It is a rule of conduct
2. It is obligatory
3. It is promulgated by legitimate authority
4. It is of common observance and benefit

Sources of Law
1. Constitution
2. Legislation
3. Administrative or executive orders, regulations, and rulings.
4. Judicial decisions or jurisprudence.
5. Custom
6. Other Sources

Organization of courts
1. Regular Courts
a. One Court of Appeals
b. Regional Trial Courts
c. Metropolitan Trial Courts, Municipal Trial Courts, Municipal Circuit Trial Courts
2. Special Courts
3. Quasi Judicial Agencies.

Classifications of Law
1) As to its purpose
a. Substantive Law
b. Adjective Law

2) As to its subject matter

a. Public Law
b. Private Law
Essential requisites of an obligation.
Every obligation has four (4) essential requisites, namely:
1. Passive Subject (debtor / obligor)
2. Active Subject (creditor / obligee)
3. Object or prestation (subject matter of the obligation)
4. Judicial or Legal Tie (efficient cause)

The essential elements of a legal wrong or injury are:

a.​ legal right in favor of a person (creditor /obligee / plaintiff);
b.​ a correlative legal obligation on the part of another (debtor/obligor/ defendant); to respect
or not to violate said right; and
c.​ an act or omission by the latter in violation of said right with resulting injury or damage to
the former.

Kinds of obligation according to the subject matter.

1. Real obligation (obligation to give)
2. Personal obligation (obligation to do or not to do)
a. Positive personal obligation
b. Negative personal obligation

ART. 1157. Obligations arise from:

1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law or Crimes or acts or omissions punished by law.
5. Quasi-delicts.

Contractual obligations - Obligations arising from contracts.

1. Binding Force
2. Requirement of a valid contract
3. Breach of Contract

Kinds of Quasi-Contract
1. Negotorium Gestio
2. Solutio Indebiti
3. Other examples of quasi-contracts

Civil Liability arising from crimes or delicts.

1. Civil Liability in addition to Criminal Liability
2. Criminal Liability without Civil Liability
3. Civil Liability without Criminal Liability
Scope of Civil Liability
1. Restitution
2. Reparation for damages caused
3. Indemnification for consequential damages ​

Requisites for Quasi-Delict

1. There must be an act or omission
2. fault or neglect
3. damage caused
4. direct relation / connection of cause and effect between the act and the damages.
5. No pre-existing contractual relations

Crimes distinguished from Quasi-Delicts

Crime Quasi-Delicts

Criminal, malicious intent, or criminal Negligence

negligence

Punishment Indemnification of the offended party.

Public Interest Private Interests

Criminal + Civil Liability Civil Liability

Criminal liability cannot be compromised or Liability for quasi-delict can be comprised as

settled by the parties themselves. any other civil liability.

The accused must be proven beyond The fault or negligence of the defendant need
reasonable doubt. only be proved by preponderance of
evidence.

1. Specific (determinate) - particularly designated ; physically segregated from others of the

same class ; irreplaceable
2. Generic (indeterminate) - refers only to a class or genes.
Duties of debtor in obligation to give a determinate thing.​
1. Preserve or take care of the thing.
a. Diligence of a good father of a family
b. Another standard of care
c. Factors to be considered
d. Reason for debtor's obligation
2. Deliver the fruits of the thing. - ART 1164;
3. Deliver the accessions and accessories. - ART 1166;
4. Deliver the thing itself. - (Arts. 1163, 1233, 1244; as to kinds of delivery, see ART 1497 to
1501.); and c
5. Answer for damages in case of non-fulfillment or breach. - ART 1170.

Duties of debtor in obligation to deliver a generic thing.

1. To deliver with the quality intended considering the purpose of obligation and other
circumstances.
2. To be liable for damages in case of fraud, negligence, or delay, contravention of the tenor
thereof.

Different Kinds of Fruits

1. Natural Fruits
2. Industrial Fruits
3. Civil Fruits

Personal Right Vs. Real Right​

1. Personal Right - right of a creditor to demand from the debtor. The fulfillment of the latter's
obligation to give, to do, not to do. With passive and active subject ; enforceable to a particular
group or person
2. Real Right - right over a specific thing (ownership, possession, mortgage) only active subject ;
enforceable to anyone / whole world.​

Specific Real Obligation

Debtor Creditor (p 40)

1. Preservation 1. Compel Delivery

2. Deliver 2. ???

a.​ Thing

b.​ Accessions and Accessories

3. Damages (in case of a problem) 3. Ask the debtor for Damages.

Remedies of creditor in real obligation.
1. In a specific real obligation (obligation to deliver a determinate thing), the creditor may
exercise the following remedies or rights in case the debtor fails to comply with his obligation:
a.​ demand specific performance or fulfillment (if it is still possible) of the obligation with a
right to indemnity for damages; or
b.​ demand rescission or cancellation (in certain cases) of the obligation also with a right to
recover damages (Art. 1170.); or
c.​ demand payment of damages only, where it is the only feasible remedy.

Generic Real Obligation

Debtor Creditor

1. Deliver the thing of the quality intended. 1. Compel Compliance

* Compliance by a third person at the debtor’s

expense.

2. Cannot be compelled to give a superior 2. Cannot be compelled to receive an inferior

quality. quality.

3. In case of failure to perform, damages. 3. Receive of damages

Personal Obligation
Debtor Creditor

1. To do it (shoulder the cost) 1. To have it done

2. Undo it (if poorly done)

3. Damages (if cannot be undone) 3. Damages

Remedies of creditor in positive personal obligation.
1. If the debtor fails to comply with his obligation to do, the creditor has the right:
a.​ to have the obligation performed by himself, or by another, unless personal
considerations are involved, at the debtor's expense; and
b.​ to recover damages. (Art. 1170.)
2. In case the obligation is done in contravention of the terms of the same or is poorly done, it
may be ordered (by the court upon complaint) that it be undone if it is still possible to undo what
was done. ​

Remedies of creditor in negative personal obligation. (Cannot be guilty of delay)

As a rule, the remedy of the obligee is the undoing of the forbidden thing plus damages. (Art.
1170.) However, if it is not possible to undo what was done, either physically or legally, or
because of the rights acquired by third persons who acted in good faith, or for some other
reason, his remedy is an action for damages caused by the debtor's violation of his obligation. ​
Requisites of delay or default by the debtor.
There are three (3) conditions that must be mora solvendi can exist or its effects arise: may из
present before
1. failure of the debtor to perform his (positive) obligation on the date agreed upon; ​
2. demand (not mere reminder or notice) made by the creditor upon the debtor to comply with
his obligation which demand may be either judicial (when a complaint is filed in court) or
extrajudicial (when made outside of court, orally or in writing); and
3. failure of the debtor to comply with such demand. ​

Effects of delay.
(1) Mora solvendi. - The following are the effects:
(a) The debtor is guilty of breach or violation of the obligation;
(b) He is liable to the creditor for interest (in case of obligations to pay money) (Art.
2209.) or damages (in other obligations). (Art. 1170.) In the absence of extrajudicial
demand, the interest shall commence from the filing of the complaint; and ​
(c) He is liable even for a fortuitous event when the obligation is to deliver a determinate
thing. (Arts. 1165, 1170.) However, if the debtor can prove that the loss would have
resulted just the same even if he had not been in default, the court may equitably
mitigate or reduce the damages. (Art. 2215[4].)

In an obligation to deliver a generic thing, the debtor is not relieved from liability for loss due to a
fortuitous event.
He can still be compelled to deliver a thing of the same kind (see Art. 1263.) or held liable for
damages. (Art. 1170.)

(2) Mora accipiendi. - The effects are as follows:

(a) The creditor is guilty of breach of obligation;
b) He is liable for damages suffered, if any, by the debtor;
(c) He bears the risk of loss of the thing due (see Art. 1262.);
(d) Where the obligation is to pay money, the debtor is not liable for interest from the
time of the creditor's delay; and
(e) The debtor may release himself from the obligation by the consignation or deposit in
court of the thing or sum due. (see Art. 1256.)

(3) Compensatio morae. -The delay of the obligor cancels the delay of the obligee and
vice-versa. Legally speaking, there is no default or delay on the part of both parties.
If the delay of one (1) party is followed by that of the other, the liability of the first infractor shall
be equitably tempered or balanced by the courts. If it cannot be determined which of the parties
is guilty of delay, the contract shall be deemed extinguished and each shall bear his own
damages. (Art. 1192.)
1. Simple loan or mutuum - is a contract whereby one of the parties delivers to another, money
or other consumable thing, upon the condition that the same amount of the same kind and
quality shall be paid. It may be gratuitous or with a stipulation to pay interest.
2. Usury is contracting for or receiving interest in excess of the amount allowed by law for the
loan or use of money, goods, chattels or credits; Setting an interest way too high, outside of a
legal limit.​
A contract with Usurious interest is void but the owner can still recover the principal
amount and enforce any valid terms of the agreement.​

Requisites for recovery of interest.

In order that interest may be recovered, the following requisites must be present:
1. The payment of interest must be expressly stipulated (Art. 1956.);
2. The agreement must be in writing; and
3. The interest must be lawful. (Art. 1957.)

ART 1176. If a creditor accepts the payment of the principal amount without mentioning any
unpaid interest, it’s assumed that the interest has already been settled. Similarly, if a creditor
accepts a later payment installment without raising any issues about previous installments, it’s
presumed that those earlier installments have also been paid.

Presumption - meant the inference of a fact not actually known arising from its usual connection
with another which is known or proved. Ex. someone is at the scene of the crime holding a
weapon.​

Two kinds of presumption.

1. Conclusive presumption - one which cannot be contradicted, like the presumption that
everyone is conclusively presumed to know the law.
2. Disputable (or rebuttable) presumption. - one which can be contradicted or rebutted by
presenting proof to the contrary.​

When presumptions in Article 1176 do not apply.​

The presumptions in Article 1176 (which suggest interest and prior installments are paid if the
creditor receives the principal without reservation) do not apply in certain situations:

1. With reservation as the interest. - If the creditor explicitly states (in writing or verbally) that no
payment was made towards interest or prior installments, the presumption of payment is void.
2. Receipt without indication of particular installment paid - If a receipt doesn’t specify which
installment it covers, such as a simple date with no reference to a particular installment, the
presumption doesn't hold.
3. Receipt for a part of the principal - If only part of the principal is paid without mentioning
interest, it implies a waiver of the creditor’s right to apply payments to interest first. Only a full
principal receipt, without a claim for interest, presumes the interest has been paid.
4. Payment of taxes. -This presumption doesn’t extend to taxes; later tax payments don’t imply
earlier taxes were settled.
5. on-payment proven. - If it’s proven that prior installments weren’t paid, the presumption is
overruled by actual evidence.
These conditions ensure that assumptions about payment are only applied when details align
with the requirements for a presumption.​

SECTION 1 - PURE AND CONDITIONAL​

ART 1179 explains pure obligation, conditional obligation, and condition​
Characteristics of a condition​
1. Future and Uncertain​
2. Past but Unknown to the parties​

Two principal kinds of condition ​

1. Suspensive Condition - The fulfillment of which will give rise to an obligation or right.​
2. Resolutory Condition - The fulfillment of the condition will extinguish an obligation.​

An obligation is demandable at once-

1. when it is pure obligation
2. when it is subject to a resolutory condition or
3. when it is subject to a resolutory period.​

Distinctions between suspensive and resolutory conditions.

1. If the suspensive condition is fulfilled, the obligation arises, while if it is the resolutory
condition that is fulfilled, the obligation is extinguished;
2. If the first does not take place, the tie of the law (juridi- cal or legal tie) does not appear, while
if it is the other, the tie of law is consolidated;
3. Until the first takes place, the existence of the obligation is a mere hope, while in the second,
its effects flow, but over it hovers the possibility of termination. ​

ART 1180 explains the difference between obligation with a period vs conditional obligation
ART 1181 explains the difference between the acquisition of rights in suspensive condition and
termination of rights in resolutory condition​

ART. 1182. When the fulfillment of the condition depends upon the sole will of the debtor,
the conditional obligation shall be void. If it depends upon chance or upon the will of a
third person, the obligation shall take effect in conformity with the provisions of this
Code.​
Classification of conditions.
Conditions may be classified as follows:
(1) As to effect:
(a) Suspensive. - the happening of which gives rise to the obligation; and
(b) Resolutory. the happening of which extinguishes the obligation.
(2) As to form:
 (a) Express.
(b) Implied.
(3) As to possibility:
(a) Possible. - the condition is capable of fulfillment, legally and physically; and
(b) Impossible. the condition is not capable of fulfillment, legally or physically.
(4) As to cause or origin:
(a) Potestative - the condition depends upon the will of one of the contracting parties;
(b) Casual. - the condition depends upon chance or upon the will of a third person; and
(c) Mixed. the condition depends partly upon chance and partly upon the will of a third
person.
(5) As to mode:
(a) Positive. - the condition consists in the performance of an act; and
(b) Negative. - the condition consists in the omission of an act.
(6) As to numbers:
(a) Conjunctive. - and there are several conditions and all must be fulfilled;
(b) Disjunctive. - there are several conditions and only one or some of them must be
fulfilled.
(7) As to divisibility:
(a) Divisible. - the condition is susceptible of partial performance; and
(b) Indivisible - the condition is not susceptible of partial performance.

ART 1183 Impossible conditions​

Two kinds of impossible conditions
1. Physically Impossible Conditions
2. Legally Impossible Conditions

Article 1185 ensures that an obligation based on something not happening becomes
enforceable once it’s clear that event will not occur, or after the agreed period passes without
the event.​

Article 1187 deals with the effects of conditional obligations, specifying how they operate once
the condition is fulfilled.

Retroactive Effect: When a condition tied to an obligation to give is fulfilled, the obligation
retroactively takes effect from when it was first created. This means it’s as if the obligation
existed all along.

Reciprocal Obligations: If the obligation involves mutual responsibilities (both parties have
duties), any benefits (like interest or profits) gained during the time the condition was pending
are considered balanced out between the parties.

Unilateral Obligations: If only one party has a duty, the one responsible (the debtor) keeps any
benefits gained while the condition was pending, unless the nature of the obligation suggests
otherwise.
Obligations to Do or Not Do: For obligations involving actions or prohibitions, the courts have
the discretion to decide whether fulfilling the condition has a retroactive effect, based on the
case specifics.

In essence, Article 1187 covers how obligations behave once a condition is met, ensuring
fairness by allowing retroactivity or compensation based on whether both or only one party
benefits.​

Retroactive Effect for Conditional Obligation to Give:

Example: Ana promises to give Bea a car if Bea passes the board exams. Once Bea passes,
the obligation is considered as if it existed from the moment of Ana’s promise. So, any rights
related to the car apply retroactively from the date of the original promise.

Reciprocal Obligations:
Example: Carlos agrees to supply grain to Diego if Diego, in return, helps him with labor on his
farm. Both parties gain benefits during the period of the condition: Carlos gains Diego’s labor,
and Diego receives grain. When the condition is met (say, at the harvest season), any benefits
they received are mutually offset, meaning they don’t owe each other extra compensation for
what they gained while waiting for the condition to be fulfilled.

Unilateral Obligations:
Example: Marta pledges to give Leo her old bookstore if he graduates. If Leo does graduate,
any profits Marta gained from the bookstore up to his graduation remain with her unless it’s
evident that her intent was to transfer these profits to Leo as well. This generally depends on the
nature of the obligation and any agreement between them.

Obligations to Do or Not to Do:

Example: Helen agrees not to open a competing business if her business partner John meets
certain sales targets. If John reaches these targets, a court might decide whether Helen’s
promise (not to compete) retroactively affects her decisions, such as the location of her current
business or her planned operations. The court considers the specific circumstances in making
this determination.
These examples show how obligations take effect retroactively, balance out benefits, and, in
some cases, leave room for court discretion based on the nature of the obligation.