Types of Obligations: Conditions, Terms, Periods, and Debtors, Study notes of Law

Download Types of Obligations: Conditions, Terms, Periods, and Debtors and more Study notes Law in PDF only on Docsity! 1 PATIT LAW C201 – MIDTERMS PURE, CONDITIONAL AND TERMED OBLIGATION CONDITION – is future and uncertain to happen. Example: “I promise to give you ₱10T if you pass the 2022 CPA Board Exam”. (This is an example of Conditional Obligation because there’s no assurance whether or not you will pass the 2022 CPA Board Exam. Such event is future and uncertain hence it is a conditional obligation. If you failed to satisfy the condition of passing the 2022 CPA Board Exam, then my obligation to give you P10T is over and extinguished). PERIOD – on the other hand is future and certain to happen. Example: “I promise to give you ₱10T on December 5, 2022”. (This is an example of an Obligation with Term or Period because the date December 5, 2022 will surely come. Whether one likes or not, the day of December 5, 2022 will surely occur. That makes it future and certain, hence it is a term or period). TEST SAMPLES: ARE THESE "CONDITION" OR "PERIOD"? • I will give you a pair of new shoes if Erap dies. • I will give you a pair of new shoes if Erap dies at the age of 95. • I will give you Ipod if Sarah G. wins the May 2022 Presidential election. Different Kinds of Obligation: 1. PURE OBLIGATION – an obligation that contains neither condition nor a period. It is demandable at once because it does not depend upon a future or uncertain event or upon a past event unknown to the parties. Examples: ❖ “I will give you ₱1,000.00.” ❖ “I will give you anything you want. 2. CONDITIONAL OBLIGATION – an obligation that requires the fulfillment of a given condition before such obligation shall be performed by the debtor or before it shall be extinguished. There are at least three classes of Conditional Obligation. These are as follows: A. Obligation with Suspensive Condition – the obligation is suspended until the happening of the condition. Examples: “I will give you ₱10T if you graduate in 2022.” “I will give you a car if you get married.” IN THE ABOVE EXAMPLES, THE CONDITION SUSPENDS THE OBLIGATION. IN THE FIRST EXAMPLE, IT MEANS THAT I DON'T NEED TO GIVE YOU YET P10T UNTIL SUCH TIME THAT YOU GRADUATE IN 2022. IF YOU CANNOT SATISFY THE CONDITION, THEN I DON'T HAVE THE OBLIGATION TO YOU. IN THE SECOND EXAMPLE, I DON'T NEED TO GIVE YOU A CAR YET UNTIL SUCH TIME THAT YOU GET MARRIED. IF YOU DON'T GET MARRIED, I HAVE NO OBLIGATION TO YOU. 2 PATIT B. Obligation with Resolutory Condition – the obligation is demandable right away and is already being performed at the moment but it shall be extinguished however upon the happening of the given condition. Examples: “I allow you to use my rest house in Laguna until the arrival of my brother from Canada”. “You can use my car until I obtain my own driver’s license.” IN THE ABOVE EXAMPLES, THE CONDITION DOES NOT SUSPEND THE OBLIGATION BECAUSE THE OBLIGATION NEEDS TO BE PERFORMED RIGHT AWAY. INSTEAD, WHEN THE CONDITION IS SATISFIED, IT EXTINGUISHES THE OBLIGATION. IN THE FIRST EXAMPLE THEREFORE, I AM OBLIGED TO LET YOU USE MY REST HOUSE IN LAGUNA RIGHT AWAY. HOWEVER, IN CASE MY BROTHER ARRIVES FROM CANADA, I CAN ALREADY REFUSE YOUR CONTINUING STAY IN MY REST HOUSE. I CAN ALREADY EVICT YOU BECAUSE I HAVE NO MORE OBLIGATION TO YOU. IN THE SECOND EXAMPLE, I AM OBLIGED TO ALLOW YOU TO USE MY CAR AWAY. HOWEVER, THE MOMENT I OBTAIN MY OWN DRIVER'S LICENSE, MY OBLIGATION TO YOU AS REGARDS THE USE OF MY CAR IS ALREADY FINISHED AND TERMINATED. C. Obligation with Potestative Condition – tit is an obligation in which the fulfillment of a condition depends on the sole will of one of the parties. Examples: “I’ll give you ₱1M if I run for President in 2022”. “I’ll give you a brand-new car if I like.” “I’ll give you my car if you desire to have it.” IF YOU NOTICE, THE SATISFACTION OF THE CONDITION DEPENDS ONLY ON THE WILL OF ONE PARTY (EITHER CREDITOR OR DEBTOR). THAT IS THE ESSENCE OF A POTESTATIVE CONDITION. QUESTION: IS OBLIGATION WITH A POTESTATIVE CONDITION VALID? ANSWER: it depends. It is valid only if the fulfillment of the given condition depends on the sole will of the creditor. However, if the satisfaction of the condition depends on the sole will of the debtor, it is void and ineffective. THEREFORE, IN THE 3 EXAMPLES CITED ABOVE, ONLY THE 3RD ONE IS VALID BECAUSE THE CONDITION OF WHETHER TO DESIRE THE CAR OR NOT RESTS UPON THE SOLE CHOICE OF THE CREDITOR. THE 1ST AND 2ND EXAMPLES ARE NOT VALID BECAUSE THE FULFILLMENT OF THE CONDITION DEPENDS ON THE SOLE WILL OF THE DEBTOR. THEY DO NOT MAKE SENSE HENCE THEY ARE INVALID. 3. OBLIGATION WITH A TERM OR PERIOD – An obligation the fulfillment of which is dependent upon the happening of a future and certain event. Examples: ❖ “I’ll give you ₱100T on October 5, 2023”. ❖ “I’ll give you a car in Christmas of 2022.” Whether one likes or not, October 5, 2023 and Christmas of 2022 will surely occur. That makes them future and certain, hence they are OBLIGATIONS WITH A TERM OR PERIOD. Once the event or day arrives, the obligation must be delivered. 5 PATIT Q: Can A collect the whole P90,000.00 from X? A: No, because the obligation of X is joint in nature. As a joint debtor, he can be compelled to pay only the extent of his shared obligation. A may only collect P45,000 from X and the other P45,000 may be collected from Y. B. MULTIPLE SOLIDARY DEBTORS VS. SINGLE CREDITOR Example: X and Y (solidary debtors) are indebted to A in the amount of P90,000.00. Q: Can A collect the whole P90,000.00 from X? A: Yes, because the obligation of X is solidary in nature. As a solidary debtor, he can be compelled to pay the whole obligation. However, Y must reimburse X for his share of P45,000.00 in the obligation. Note: As a solidary debtor, he can be compelled to pay the entire obligation to the creditor subject to right of reimbursement for share of other solidary debtors. C. SINGLE DEBTOR VS. MULTIPLE SOLIDARY CREDITORS Example: A is indebted to X and Y (solidary creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: Yes, because X is a solidary creditor so he is entitled to the performance of the whole obligation. However, X must reimburse Y for his credit share of P45,000.00 as a fellow solidary creditor. Note: As a solidary creditor, he can collect the entire obligation from the debtor subject to reimbursement for the share of other solidary creditors. D. SINGLE DEBTOR VS. MULTIPLE JOINT CREDITORS Example: A is indebted to X and Y (joint creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: No, because X is a joint creditor so he can only collect P45,000.00 which is his share from the whole credit. The other P45,000.00 may be collected by Y. E. MULTIPLE SOLIDARY DEBTORS VS. MULTIPLE JOINT CREDITORS Example: A and B are solidarily indebted to X and Y (joint creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: No, because X is a joint creditor with Y. Instead, X can collect only up to the maximum of his share of P45,000.00. He can collect it either from A or B. Same with Y, he can collect only up to the maximum amount of P45,000.00 either from A or B. Q: Assuming X collected his P45,000.00 from A, can Y also validly collect his P45,000.00 from A? A: Yes, because A is a solidary debtor with B so he can be compelled to pay the whole obligation. However, A is entitled to reimburse said P45,000.00 from B. 6 PATIT Another Example: A and B are solidarily indebted to X, Y and Z (joint creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: No, because X is a joint creditor with Y and Z. Instead, X can collect only up to the maximum of his share of P30,000.00. He can collect it either from A or B. Same with Y and Z, they can each collect only up to the maximum amount of P30,000.00 either from A or B. Q: Assuming X collected his P30,000.00 from A, can Y and Z also validly collect their P30,000.00 from A? A: Yes, because A is a solidary debtor with B so he can be compelled to pay the whole obligation. However, A is entitled to reimburse P45,000.00 from B. F. MULTIPLE SOLIDARY DEBTORS VS. MULTIPLE SOLIDARY CREDITORS Example: A and B are solidarily indebted to X, Y and Z (solidary creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: Yes, because X is a solidary creditor with Y and Z. He can collect the entire P90,000.00 from either A or B. Same right of Y and Z. Q: Assuming X collected already the P90,000.00 from A, can Y and Z also validly collect another P90,000.00 from A? A: No more, because the whole obligation is already paid by A. Instead, Y and Z shall get their share of P30,000 each from X. On the other hand, A shall collect reimbursement of P45,000 from B, his fellow solidary debtor. Q: Can X collect P45,000.00 from A and P45,000.00 from? A: Yes, that is his option. As a solidary debtor, the maximum amount that can be collected from him is the whole obligation, but always with right of reimbursement. Q: Can X collect P30,000.00 from A and then Y will collect P60,000.00 from A? A: Yes, that is a valid option. Provided that Y will reimburse Z his share to the collection of P30,000 while B shall reimburse A his share to the debt of P45,000. G. MULTIPLE JOINT DEBTORS VS. MULTIPLE SOLIDARY CREDITORS Example: A and B are jointly indebted to X, Y and Z (solidary creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: No, because A is a joint debtor with B. Instead, X can collect only up to the maximum of P45,000.00 from A and the remaining P45,000.00 from B. Since A and B are joint debtors, they are liable only up to the extent of their shared obligation. Q: Assuming X collected P45,000.00 from A and P45,000.00 from B, can Y also validly collect P90,000.00 from A? A: No more, because the whole obligation had already been paid and collected by X. Instead, X must reimburse Y P30,000 which is his share from the collectible and must reimburse Z another P30,000 which is his share from the collectible. 7 PATIT H. MULTIPLE JOINT DEBTORS VS. MULTIPLE JOINT CREDITORS Example: A and B are jointly indebted to X, Y and Z (joint creditors) in the amount of P90,000.00. Q: Can X collect the whole P90,000.00 from A? A: No, because A is a joint debtor with B while X is a joint creditor with Y and Z. Instead, X can collect only up to the maximum of P15,000 from A and P15,000 from B. Y can also collect P15,000 from A and P15,000 from B. On the other hand, Z can also collect P15,000 from A and another P15,000 from B. DIVISIBLE, INDIVISIBLE AND OBLIGATION WITH A PENAL CLAUSE DIVISIBLE OBLIGATION – It is an obligation that is capable of partial performance without violating the very essence and nature of the object of obligation. Example: “Mark promised to deliver to X 10 sacks of Dinorado rice on or before 22 September 2021. One week before the due date, Mark delivered to X 3 sacks of Dinorado rice while the other 7 sacks were delivered by him on 22 September 2021”. Q: Did Mark completely perform his obligation to X? A: Yes. Considering that the obligation of Mark to X is divisible, it is capable of partial performance. The nature of and essence of the prestation was not violated when a portion of it was delivered partially and in advance until the entirety of it has been completed. INDIVISIBLE OBLIGATION – It is an obligation that is NOT capable of partial performance because in doing so it will violate the very essence and nature of the object of obligation. Example: “Mark promised to give X a brand-new BMW car on or before 22 September 2021. Two weeks before due date, Mark delivered in advance the 4 wheels of the car. One week before due date, he delivered the windshield and then the engine. Finally on due date, Mark delivered the other remaining parts”. Q: Did Mark completely perform his obligation to X? A: No. Considering that the obligation of Mark to X is indivisible, it is not capable of partial performance. The nature and essence of the prestation was violated when he delivered the same on a piecemeal, installment, or staggered basis (chop-chop). What was agreed is a “BMW Car” which must be treated as one in its entirety. Apparently, a “wheel” is not a BMW Car. Similarly, neither a “windshield” nor an “engine” is a car. Each will not separately function and satisfy the essence of the agreed prestation. Determine the following: Divisible? or Indivisible? 1. I promise to give X a pet dog on or before 22 September 2021. 2. I promise to give X 10 kilos of pork on or before 22 September 2021. 3. I promise to give X ₱50T cash on or before 22 September 2021.