law 101-obligations and contracts course outline [mrst]
TRANSCRIPT
UniversityofthePhilippinesCollegeofLaw
Law101:ObligationsandContracts
CourseOutline♦Prof.MaryRoseS.Tan
Semester2,AY20112012ContactInformation: [email protected] +639178871555CourseSchedule: MondaysandFridays,6:30p.m.to9:00p.m.
Room200(PadillaRoom)AttendanceRequirement: CollegeofLawrulesonattendanceshallbestrictlyapplied.
Studentsmayonlybeabsentforanycauseforamaximumof8sessions.
Assessment: (1)Classparticipation 30% (2)Midtermexamination 20% (3)FinalExam 50%PrescribedTextbook: Tolentino,CivilCodeofthePhilippines,Vol.IVINTRODUCTION
A. CourseOverviewB. CommonLawTraditionandtheCivilLawTradition
Agabin,P.A.,Mestizo:TheStoryofthePhilippineLegalSystem(2011),Chapter7,pp.169216
PARTONE:OBLIGATIONS
A. GeneralProvisions
1. Definition(Article1156,CivilCode)
2. Elementsa. ActiveSubjectb. PassiveSubjectc. ObjectorPrestationd. EfficientCauseorJuridicalTie
♦BasedontheCourseOutlineofProf.EduardoLabitag.
Law101:ObligationsandContractsProf.MaryRoseS.TanSemester2,AY20112012
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3. NaturalObligations
a. Definition(Art.1423,CC)b. Examples(Articles1424to1430)c. DifferencebetweenNaturalandCivilObligation(Art.1423)d. Distinguishedfrommoralobligations
Villaroelv.Estrada,71Phil.140(1940)Fisherv.Robb,69Phil101(1939)
e. ConversiontoCivilObligation• bynovation• byratification
4. SourcesofObligations(Art.1157)
a. Law(Art.1158)b. Contracts(Art.1159,1305)c. Quasi‐contracts(Art.1160,2142)
• Kinds:i. Negotiorumgestio(Art.2144)ii. Solutioindebiti(Art.2154)iii. Others(Art.2164to2175)
d. DelictsorCrime(Art.1161)e. Quasi‐delicts(Art.1162,2176)
• Distinctionbetweencrimesandquasi‐delicts• Vicariousliability(Art.2180,Art.218‐219,FamilyCode)• Civilliabilityarisingfromcrime(Art.1161;Rule111,RevisedRulesof
CriminalProcedure)
Barredov.Garcia,73Phil607(1942)Mendozav.Arrieta,91SCRA113(1975)
5. ClassificationofObligations
a. PureandConditionalObligations(Art.1179‐1192)b. WithaPeriodoraTerm(Art.1193‐1198)c. AlternativeandFacultative(Art.1199‐1206)d. JointandSolidary(Art.1207‐1222)e. DivisibleandIndivisible(Art.1223‐1225)f. WithaPenalClause(Art.1226‐1230)
B. NatureandEffectsofObligations
1. KindsofPrestation
Law101:ObligationsandContractsProf.MaryRoseS.TanSemester2,AY20112012
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a. Togive
i. specificthing
• topreservethething(Art.1163)• todelivertheaccessionsandaccessories(Art1166)• todeliverthefruits(Art.1164,par.1)• todeliverthethingitself(Art.1244)
ii. genericthing(Art.1246)
b. Todo(Art.1244)c. Nottodo(Art.1244)
2. BreachofObligation
a. Concept
SongFov.HawaiianPhilippines,47Phil.821(1928)Velardeetal.v.CourtofAppeals,361SCRA56(2001)Angelesv.Calasanz,135SCRA323(1985)DeltaMotorCorporationv.Genuino,170SCRA29(1989)VermenRealtyv.CourtofAppeals,224SCRA549(1993)
b. ModesofBreach
• Delayormora(Art.1169)i. morasolvendi
CetusDevelopmentv.CourtofAppeals,176SCRA72(1989)AerospaceChemicalIndustriesv.CourtofAppeals,315SCRA92(1999)SantosVenturaHocormaFoundationv.Santos,441SCRA472(2004)Vazquezv.AyalaCorporation,443SCRA231(2004)Abellav.Francisco,55SCRA447(1931)delaCruzv.Legaspi,98SCRA43(1955)
ii. moraaccipiendi(Seealso1268)Villaroelv.ManilaMotorCo.,Inc.,104Phil.926(1958)
iii. compensationmoraeCentralBankv.CourtofAppeals,139SCRA46(1985)
• Fraudordolo(Art.1171)doloincidenteanddolocausante
Woodhousev.Halili,93Phil.526(1953)Geraldezv.CourtofAppeals(1994)
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• Negligence(Art.1172,1173)
culpav.doloculpaaquilianov.culpacontractualstandardofcarerequired
Gutierrezv.Gutierrez,56Phil.177(1932)Vasquezv.Borja,74Phil.560(1944)deGuiav.ManilaElectricCorporation,40Phil706(1920)USv.Barias,23Phil434(1912)Sarmientov.SpousesCabrido,401SCRA122(2003)Crisostomov.CourtofAppeals,409SCRA528(2003)
• Contraventionofthetenor(Art.1172)Chavezv.Gonzales,32SCRA547(1970)Telefastv.Castro,158SCRA445(1988)Arrietav.NARIC,10SCRA79(1964)Magatv.Medialdea,206Phil341(1983)
c. Remediesincaseofbreachi. Performance
• Specificperformance(Art.1165;Section10,Rule39,RulesofCourt)• Substitutedperformance
‐ inanobligationtogivegenericthing(Art.1165,par.2)‐ undoingofpoorworkinanobligationtodo(Art.1167)
Chavezv.Gonzales,supraTanguiligv.CourtofAppeals,266SCRA78(1997)
‐ undoinginanobligationnottodo(Art1168)
ii. Rescission(Art.1191‐1192)iii. Damages(Art.1170)
d. SubsidiaryRemediesofCreditor
i. AccionSubrogatoria(Art.1177)ii. AccionPauliana(Art.1177;1381,par.3)KheHongChengv.CourtofAppeals,355SCRA701(2001)Siguanv.Lim,318SCRA725(1999)iii. OtherSpecificRemedies(Art.1652,1729,1608,1893)
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e. FortuitousEvent(Art.1174)
i. Effect:ExtinguishmentofLiabilityii. ExceptionstoExtinguishment(Art.1174,1165par.3,552,1942,
1979,2001,2147)JuanNakpil&Sonsv.CourtofAppeals,144SCRA597(1986)Republicv.LuzonStevedoringCo.,21SCRA279(1967)Dioquinov.Laureano,33SCRA65(1970)Austriav.CourtofAppeals,39SCRA527(1971)NationalPowerCorporationv.CourtofAppeals,161SCRA334(1988)Yobidov.CourtofAppeals,281SCRA1(1997)BacolodMurciaMillingv.CourtofAppeals,182SCRA24Philcomsatv.GlobeTelecom,430SCRA(2004)
f. UsuriousTransactions(Art.1175,1413,1961)PD858;PD1685CentralBankCircular416MonetaryBoardCircularNo.905;No.2209EasternShippingLinesv.CourtofAppeals,234SCRA781(1994)CrisminaGarmentsv.CourtofAppeals,304SCRA356(1999)KengHuaProductsv.CourtofAppeals,286SCRA257(1998)SecurityBankv.RegionalTrialCourtMakati,263SCRA453(1996)Almedav.CourtofAppeals,256SCRA292(1996)AngelWarehousingv.Chelsea,23SCRA19(1968)FirstMetroInvestmentv.EstedelSol,369SCRA(2001)
C. DifferentKindsofObligations
1. PureandConditionalObligations
• PureObligations(Art.1179,par.1)• ConditionalObligations(Art.1181)
‐ Concept‐ Conditionv.PeriodorTerm
Gaitev.Fonacier,2SCRA830(1961) Gonzalesv.HeirsofTomasandPaulaCruz,314SCRA585(1999)
• KindsofConditions
a. Astotheeffectontheobligation(Art1181) Gonzalesv.HeirsofTomasandPaulaCruz,supra.
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i. SuspensiveConditionorConditionprecedent
• Retroactiveeffectwhenconditionisfulfilled(Art.1187) Coronelv.CourtofAppealsandAlcaraz,263SCRA15(1996)
• Rightsofthecreditoranddebtorbeforefulfillmentofthecondition(Art.1188)
ii. ResolutoryConditionorConditionsubsequent Parksv.ProvinceofTarlac,49Phil.142(1927) CentralPhilippineUniversityv.CourtofAppeals,245SCRA511(1995) Quijadav.CourtofAppeals,299SCRA695(1998)
b. Astothecauseororigin(Art1182)
i. Potestative
• Effectoffulfillmentofconditiondependssolelyonthewillofthe
debtor• Debtor’spromisetopaywhenhecanisnotacondition(Art1180)
LaoLimv.CourtofAppeals,191SCRA150(1990)
ii. Causal NagaTelephoneCo.v.CourtofAppeals,230SCRA351(1994)
iii. Mixed Osmenav.Rama,14Phil.99(1909) Hermosav.Longora,93Phil.971(1953) Taylorv.UyTiengPiao,43Phil.873(1922) SmithBellv.Matti,44Phil.875(1922) RustanPulpandPaperMills,214SCRA665(1993) Romerov.CourtofAppeals,250SCRA250SCRA223(1995)
c. Astopossibility(Art.1183)RomanCatholicArchdioceseofManilav.CourtofAppeals,198SCRA300(1991)
d. Astomode:positiveornegative(Art.1184‐1185)
• Rulesincaseofloss,deteriorationorimprovementpendingthehappeningof
thecondition(Art.1189–1190)
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HeirsofTimoteoMorenov.MactanCebuInternationalAirportAuthority,413SCRA502(2003)
a. Definitionofloss,deteriorationandimprovementb. Effectoflossordeterioration
• Withoutdebtor’sfault• Withdebtor’sfault
c. Effectofimprovement
• Bynatureortime• Duetodebtor’seffortandexpense
• Effectofpreventionofthefulfillmentoftheconditionbytheobligor(Art
1186)Taylorv.UyTiengPiao,supra.Herrerav.Leviste,135SCRA129(1985)
2. ReciprocalObligations(Art.1191‐1192)
a. Conceptb. Alternativeremediesofinjuredpartiesoncaseofbreach
i. actionforspecificperformance
• effectwhenfulfillmentnolongerpossible
ii. actionforrescission• requisites• howmade• effects
SongFov.HawaiianPhilippines,47Phil.821(1925)Boysawv.InterphilPromotions,148SCRA365(1987)UniversityofthePhilippinesv.delosAngeles,35SCRA365(1989)DeErquiagav.CourtofAppeals,178SCRA1(1989)Angelesv.Calasanz,135SCRA323(1985)JamesG.Ongv.CourtofAppeals,310SCRA1(1999)Iringanv.CourtofAppeals,366SCRA41(2001)VisayanSawMillv.CourtofAppealsandRJTrading,219SCRA378(1993)Deiparinev.CourtofAppealsandTrinidad,221SCRA503(2003)GraceParkEngineeringCo.Inc.v.Dimaporo,107SCRA266(1981)Roquev.Lapuz,96SCRA741(1980)Suriav.IntermediateAppellateCourt,151SCRA661(1987)• Read:Art1786,1788,1484‐86,RepublicActNo.6552
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3. ObligationswithaPeriod(Art.1193,1180)
a. ComparePeriod/Termv.Conditionb. KindsofPeriod
i. Astoeffect
• Suspensive(Art1193,par.1)• Resolutory(Art1193,par.2)
ii. Astoexpression• Express• Implied
iii. Astodefiniteness• Definite• Indefinite
iv. Astosource• Voluntary• Legal• Judicial
c. Rulesincaseofloss,deteriorationorimprovementbeforearrivalofthe
period(Art.1194and1189)
d. EffectofPaymentinAdvance(Art.1195;1197,par.3)
e. BenefitofPeriod(Art1196)i. Forwhosebenefit
• Creditor• Debtor• Both
ii. Effectsiii. Presumption(Art.1196)Lachicav.Araneta,47OfficialGazetteNo.11,5699(1949)PoncedeLeonv.Syjuco,90Phil311(1951)Bucev.CourtofAppeals,332SCRA151(2000)iv. Whendebtorlosesrighttomakeuseofperiod(Art.1198)
f. WhenCourtMayFixAPeriod
i. Periodisimpliedii. Perioddependsonsolewillofthedebtor
Aranetav.PhilippineSugarEstateDevelopmentCo.,20SCRA330(1967) CentralPhilippineUniversityv.CourtofAppeals,supra. Deudorv.J.M.Tuason,2SCRA129(1961)
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4. AlternativeObligations
a. Concept(Art.1199)b. RightofChoice(Art.1200)c. EffectofNoticeofChoiced. WhenNoticeProducesEffect(Art.1201)e. Effectoflossorimpossibilityofoneorallprestations(Art.1202to1205)f. FacultativeObligation(Art.1206)
i. Conceptii. DistinguishedfromAlternativeObligationsiii. EffectofSubstitution
5. JointandSolidaryObligations
a. JointObligations
i. Concept
• Requisites• Wordsusedtoindicatejointobligations
ii. Presumption(Art.1207,1208)iii. Effects(Art.1207,1208)
• Extentofliabilityofdebtor• Extentofrightofcreditor• Incaseofnovations,compensation,confusion(Art1277)or
remission
b. SolidaryObligations
i. Concept
• Requisites• Wordsusedtoindicatesolidaryobligations
ii. Kinds• Astosource(Art.1208)
o Legal(Art.1915,1945,2194,Art119oftheRPC)o Conventionalo Real
• Astopartiesboundo Activeo Passiveo Mixed
• Astouniformityo Uniformo Varied/non‐uniform(Art.1211)
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Ynchaustiv.Yulo,34Phil.978(1916)
Inciongv.CourtofAppeals,257SCRA578(1996)RCBCv.CourtofAppeals,178SCRA739(1989)LafargeCementPhil.V.ContinentalCement,443SCRA522(2004)iii. Effects
• Solidarycreditorinrelationto:o commondebtor
righttodemand(Art.1214‐1216;1217,par.1) incaseofnovation,compensation,confusion,
remissionbyacreditor(Art.1215,par.1)o solidaryco‐creditors
incaseofnovation,compensation,confusion,remissionbyaco‐creditor(Art1215,par.2)
prejudicialactsprohibited(Art.1212) assignmentofrightsnotallowed(Art.1213)
• Solidarydebtorinrelationto:
o commoncreditor obligationtoperform(Art.1207) incaseofnovation,compensation,confusion,
remissionbyacreditor(Art.1215,par.1)o solidaryco‐debtor
incaseofpaymentbyaco‐debtor(Art.1217‐1220) incaseoffortuitousevent(Art.1221)
Jaucianv.Querol,38Phil.718(1918) RehabilitationFinanceCorporationv.CourtofAppeals, OfficialGazetteNo.6,p.2467 Quiombingv.CourtofAppeals,189SCRA325(1990) Inciongv.CourtofAppeals,257SCRA578(1996)
iv. DefensesAvailabletoaSolidaryDebtorAgainsttheCreditor(Art.1222)• Types
o thosederivedfromthenatureoftheobligationso personaldefenseso defensespertainingtohisshareso thosepersonallybelongingtotheotherco‐debtors
• Effects
Ynchaustiv.Yulo,supra. Alipiov.CourtofAppeals,341SCRA441(2000)
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c. JointIndivisibleObligations
i. Concept• Distinguishedfromjointobligations• Distinguishedfromsolidaryobligations
ii. Indivisibilitydistinguishedfromsolidarity(Art.1210)iii. Effects(Art.1209,1224)
6. DivisibleandIndivisibleObligations
a. DivisibleObligations
i. Conceptii. Effects(Art.1223,1233)
b. IndivisibleObligations
i. Concept:distinguishedfromsolidaryobligations
ii. Kinds
• Natural(Art.1225,par.1)• Legal(Art.1225,par.3)• Conventional(Art.1225,par.3)
iii. Presumptionsofdivisibilityandindivisibility(Art.1225)
iv. Divisibilityandindivisibilityinobligationsnottodo(Art.1225,par.3)
v. Effects(Art.1223,1223,1224)
vi. CessationofIndivisibility7. ObligationswithaPenalClause
a. Concept
• Principalv.AccessoryObligation• Distinguishedfromconditionalobligations• Distinguishedfromalternativeobligations• Distinguishedfromfacultativeobligations• Distinguishedfromguaranty
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b. KindsofPenalClause
• Astoeffecto Subsidiaryo Complimentary
• Astosourceo Conventionalo Legal
• Astopurposeo Punitiveo Reparatory
c. DemandabilityofPenalty(Art.1226,par.2)
d. EffectsofPenalClause:GeneralRuleandExceptions
• Substituteforindemnityfordamagesandpaymentofinterest(Art.1226) MakatiDevelopmentCorp.v.EmpireInsuranceCo.20SCRA557(1967) Tanv.CourtofAppeals,367SCRA571(2001) CountryBankersInsurancev.CourtofAppeals,201SCRA458(1991)
• Notexemptdebtorfromperformance(Art.1227)
• Creditorcannotdemandbothperformanceandpenaltyatthesametime(Art.1227)
• Creditorcannotcollectotherdamagesinadditiontopenalty(Art.1226)
e. Whenpenaltyshallbeequitablyreduced(Art.1229)
f. NullityofPrincipalObligationofPenalClause(Art.1230)
D. ExtinguishmentofObligations(Art.1231)1. PaymentorPerformance(Art.1232)
a. Concept(Art.1232)
b. Requisites
i. Whocanpay
• GeneralRule
• Exceptions:
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o thirdpersonwhoisaninterestedparty;effects(Art.1302[3])o thirdpersonwhoisnotaninterestedpartybutwiththeconsentof
debtor(Art.1302[2],1236,par.1)
o thirdpersonwhoisnotaninterestedpartyandwithouttheconsentofthedebtor,withouttheknowledgeoragainstthewillofthedebtor(Art.1236,par.2;Art.1237,1236,par.1)
o thirdpersonwhodoesnotintendtobereimbursed(Art1238)
• inanobligationtogive(Art.1239,1427)
• incaseofactivesolidarity(Art.1214)
ii. Towhompaymentcanbemade
• Generalrule(Art.1240)
• Exceptions:
o incapacitatedperson(Art.1241,par.1)
o thirdperson(Art.1241,par.2)
o whenproofofbenefitnotrequired(Art.1241,par.3;Art.1242)
o incaseofactivesolidarity(Art.1214)
iii. Whatistobepaid(Identity)
• GeneralRule
• Specificcases:
o Togiveaspecificthing(Art.1244)
o Togiveagenericthing(Art.1246)
o Topaymoney(Art.1249,1250;R.A.529,R.A.4100,R.A.8183) Arrietav.NARIC,supra Kalalov.Luz,34SCRA377(1970) St.PaulFireandMarineInsurancev.Macondray,70SCRA122(1976) Papav.A.V.Valencia,284SCRA643(1998) PhilippineAirlinesv.CourtofAppeals,181SCRA557(1990)
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• PaymentofInterest(Art.1956)
iv. Howpaymentistobemade(Integrity)• GeneralRule(Art.1233)
o Partialpaymentisnotallowed;exceptions(Art.1248)
• Substantialperformanceingoodfaith(Art.1234)
• Estoppel(Art.1235)
• Presumptionsinpaymentofinterestsandinstallments(Art.1176)
v. Whenispaymenttobemade
• GeneralRule(Art1169)• Nodemand,nodelay;Exceptions
vi. Wherepaymentistomade
• Placeexpresslydesignated(Art.1251,par.1)• Whenplaceofpaymentisnotexpresslydesignated(Art.1251,
paragraphs2to4)
vii. Whopaysforexpensesformakingpayment(Art.1247)
c. ApplicationofPaymentsi. Concept(Art.1252)ReparationsCommissionv.UniversalDeepFishing,83SCRA764(1978)
Paculdov.Regalado,345SCRA134(2000)
ii. Requisites
iii. RulesinApplicationofPayments(Art.1252‐1253)• Ifrulesarenotapplicableorcannotbeinferred(Art.1254)• Meaningofthe“mostonerousdebtor”
d. PaymentbyCession
i. Concept(Art.1255)ii. Requisitesiii. Effectsiv. ComparedtoAssignmentofReceivables
e. DationinPayment
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i. Concept(Art.1245)• DistinguishedfromPaymentbyCession
DevelopmentBankofthePhilippinesv.CourtofAppeals,284SCRA14(1998)ii. Requisitesiii. EffectsFilinvestCreditCorporationv.PhilippineAcetylene,111SCRA421(1982)
f. TenderofPaymentandConsignation
i. TenderofPayment• Concept• Requisites
ii. Consignation
• ConceptandPurpose
• Requisiteso Whentenderandrefusalnotrequired(Art.1256,par.2)o Twonoticerequirement(Art.1257,par.1;Art.1258,par.
2);Effectsofnon‐compliance
• Effects(Art.1260,par1)o Withdrawalbydebtorbeforeacceptancebycreditoror
approvalofcourt(Art.1260,par.2)o Withdrawalbydebtorafterproperconsignation(Art.
1261) Withcreditorapproval Withoutcreditorapproval
• ExpensesofConsignation
DeGuzmanv.CourtofAppeals,137SCRA730(1985)
TLGInternationalContinentalEnterprising,Inc.v.Flores,47SCRA437(1972)McLaughlinv.CourtofAppeals,144SCRA693(1986)Socov.Militante,123SCRA160(1983)Sottov.Mijares,28SCRA17(1969)Reisenbeckv.CourtofAppeals,209SCRA657(1992)RuralBankofCaloocanv.CourtofAppeals,104SCRA151(1981)Licuananv.Diaz,175SCRA530(1989)Chanv.CourtofAppeals,230SCRA685(1994)MeatPackingCorp.v.Sandiganbayan,359SCRA409(2001)
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2. LossorImpossibility
a. LossoftheThingDue
i. Concept(Art.1189,par.2)
ii. Kinds• Total• Partial
iii. Requisites(Art.1262)
iv. Presumption(Art.1266,1267)
v. Effects
• Inanobligationtogiveaspecificthing(Art.1262,1268)• Inanobligationtogiveagenericthing(Art.1263)• Incaseofpartialloss(Art1264)• Actionagainstthirdpersons(Art.1269)
b. ImpossibilityofPerformance
i. Concept(Art.1266,1267)
ii. Kinds• Total• Partial
iii. Requisites(Art.1266)
iv. Effects
• Inobligationstodo(Art.1266‐1267;Art.1262,par.2)
• Impossibilitydistinguishedfromdifficulty
• Incaseofpartialimpossibility(art.1264)
Occeñav.CourtofAppeals,73SCRA637(1976) NagaTelephoneCompanyv.CourtofAppeals,230SCRA351(1994) PNCCv.CourtofAppeals,272SCRA183(1997)
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3. CondonationorRemission
a. Conceptb. Kinds
• Totalorpartial• Expressorimplied(Art.1270,par.1)
c. Requisites(Art.1270,par.2)
Yamv.CourtofAppeals,303SCRA1(1999)
d. Presumptions(Art.1271‐1271;1274)
e. Effects• Ingeneral• Incaseofjointorsolidaryobligations
f. GoverningRules(Art.1270)
g. RenunciationofPrincipalorAccessoryObligation(Art.1273)
4. ConfusionorMerger
a. Concept
b. Requisites
c. Effects
• Ingeneral(Art.1275)• Incaseofjointorsolidaryobligations(Art.1277)
d. ConfusioninPrincipalorAccessoryObligations(Art.1276)
5. Compensation
a. Concept(Art.1278);distinguishedfromConfusion
b. Kinds
i. TotalorPartialii. Legaliii. Conventional(Art.1279,Art.1282)iv. Judicial(Art.1283)v. Facultative
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c. LegalCompensationi.Requisites(Art.1279‐1280):DuedistinguishedfromdemandableGantionv.CourtofAppeals,28SCRA235(1969)BankofthePhilippineIslandsv.Reyes,255SCRA571(1996)PhilippineNationalBankv.SapphireShipping,259SCRA174(1996)CKHIndustrialDevelopmentv.CourtofAppeals,272SCRA333(1997)Mirasolv.CourtofAppeals,351SCRA44(2001)AssociatedBankv.Tan,446SCRA282(2004)Villanuevav.Tantuico,182SCRA263(1990)Perezv.CourtofAppeals,127SCRA636(1984)SilahisMarketingCorp.v.IntermediateAppellateCourt,180SCRA21(1989)BankofthePhilippineIslandsv.CourtofAppeals,255SCRA___(1996)ii.Effects(Art.1290,1289)
d. WhenCompensationisnotallowed(Art.1287‐1288)
e. CompensationofDebtsPayableinDifferentPlaces(Art.1268)
f. EffectofNullityofDebtstobeCompensated(Art.1284)
g. EffectsofAssignmentofCredit
i. withconsentofdebtor(Art.1285,par.1)ii. withknowledgebutwithoutconsentofdebtor(Art.1285,par.2)iii. withoutknowledgeofdebtor(Art.1285,par.3)
6. Novation
a. Concept(Art.1291)• Changeindebtor• Changeinobject• Changeinthirdpersonwhoissubrogated• Changeincreditorwithitsconsentoratitsinstanceisnotnovation
b. Kinds
i. Astoform:expressorimpliedii. Astoorigin:conventionalorlegaliii. Astoobject
• objectiveorreal• subjectiveorpersonal• mixed
c. Requisites(Art.1292)
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Millarv.CourtofAppeals,38SCRA642(1971)Dormitoriov.Fernandez,72SCRA388(1976)MagdalenaEstatev.Rodriguez,18SCRA967(1966)Reyesv.SecretaryofJustice,264SCRA35(1996)Cochingyanv.RBSuretyandInsurance,151SCRA339(1987)BroadwayCentrumCondominiumCorporationv.TropicalHut,224SCRA302(1993)Molinov.SecurityDinersInternational,363SCRA358(2001)Garciav.Llamas,417SCRA292(2003)CaliforniaBusLinesv.StateInvestment,418SCRA297(2003)Babstv.CourtofAppeals,350SCRA341(2001)
d. Effects(Art.1296)
e. EffectsoftheStatusoftheOriginalandNewObligationi. nullityorvoidabilityoforiginalobligation(Art.1298)ii. nullityorvoidabilityofnewobligation(Art.1297)iii. suspensiveorresolutoryconditionororiginalobligation(Art.1299)
f. ObjectiveNovation
g. SubjectiveNovation
i. Bychangeofdebtor
• Expromision
o Requisites(Art.1293)o Effects(Art.1294)
• Delegacion
o Requisites(Art.1293)o Effects(Art.1295)
Garciav.Llamas,417SCRA292(2003) Quintov.People,305SCRA709(1999)
ii. Bychangeofcreditor–subrogationofathirdpersonintherightsofthecreditor(Art.1300)• Conventionalsubrogation
o Requisites(Art.1301)o Distinguishedfromassignmentofcredito Effects(Art.1303‐1304)
Licarosv.Gatmaitan,(2001)
Law101:ObligationsandContractsProf.MaryRoseS.TanSemester2,AY20112012
20
• LegalSubrogation
o Requisiteso Whenpresumed(Art.1302)
o Effects(Art.1303‐1304)
AstroElectronicsCorp.v.PhilippineExportandForeignLoanGuaranteeCorporation(2003)
Law101:ObligationsandContractsProf.MaryRoseS.TanSemester2,AY20112012
21
Obligations Elements
Subject
Active(Debtor)
Passive(Creditor)
Cause
Object
GenericThing
SpecimicThing
SourcesLaw;Contract;QuasiContracts;Delicts;QuasiDelicts
Breach
Kinds
Substantialbreach
Casualorslightbreach
Howcommitted
Fraud Negligence Delay
Morasolvendi
Moraaccipiendi
Compensatiomorae
Contraventionoftenor
Remedies
Specimicperformanc
eRescission Damages
SubsidiaryRemedies
AccionSubrogatori
sAccionPauliana