Fortuitous events are those events which could not be 2.

2. That the debtor does not perform the obligation;

foreseen, or though foreseen, are inevitable. 3. That the creditor demands the performance either
judicially or extrajudicially;
Req: 1. The cause must be independent of the will of the 4. That the obligor fails to comply such demand.
debtor.
2. That the event must be such as to render it impossible Mora accipiendi- default on the part of the creditor
for the debtor to fulfill his obligation in a normal manner;
3. That the event must be unforeseeable or Compensatio morae- when in a reciprocal obligation, both
unavoidable; parties are in default.
4. The debtor must be free from any participation or
aggravation of the injury to the creditor. Right of the creditor in obligation to give
-Obligation to deliver a determinate thing
Exceptions: 1. To compel specific performance.
1. When the law so provides; 2. To demand damages in case of breach of the obligation.
2. When the parties expressly stipulate;
3. When the nature of the obligation requires assumption of -Obligation to deliver an indeterminate thing
risk; 1. To ask for performance of the obligation.
4. When the object of the obligation is lost, and such loss is due 2. To ask that the obligation be complied with at the expense of
partly to the fault of the debtor; the debtor.
5. When the object of the obligation is lost and the loss occurs 3. To recover damages in case of breach of the obligation.
after the debtor has incurred in delay;
6. When the debtor promised to deliver the same thing to two -Obligation to do
or more persons who do not have the same interest; 1. To ask the obligation be executed at the expense of the
7. When the obligation to deliver arises from a criminal debtor.
offense; 2. To recover damages in case of breach of the obligation.
8. When the thing to be delivered is generic.
-If the debtor performs the obligation but does it poorly
Default or mora signifies the idea of delay in the fulfillment of 1. Creditor may demand that what was done be undone at
an obligation. It is non-fulfillment of an obligation with respect debtor’s expense.
to time. 2. To demand damages.

Mora solvendi- default on the part of the debtor -If the debtor does what has been forbidden him
Req. 1. That the obligation be demandable and liquidated; 1. The creditor may demand that what was done be undone.
2. To demand damages. EXP- No retroactive effect with respect to the fruits and
interests
Duties of the debtor in obligation to give
-Obligation to deliver a determinate thing In reciprocal obligation- the fruits and interest shall be
deemed to have been mutually compensated. (Each
1. To deliver the thing which he has obliged himself to give. party shall keep the fruits and interest received by him
2. To take care of the thing due with the proper diligence of a prior to the fulfillment of the condition.
good father of a family;
3. To deliver all accessions and accessories; In unilateral obligation- the debtor keeps the fruits
4. To pay damages in case of breach of the obligation. and interests received before the fulfillment of the
condition.
-Obligation to deliver an indeterminate thing
1. To deliver a thing which must be neither superior nor Resolutory condition- is a condition the happening of which
inferior in quality; extinguishes the obligation.
2. To pay damages in case of breach of the obligation.
The obligation is extinguished; the parties shall return to each
Remedies of the injured party in reciprocal obligation other what they have received including the fruits and interest
1. Rescission with damages thereon.
2. Fulfillment of the obligation with damages
***In case of loss, deterioration or improvement of the thing,
Pure Obligation- is one without a term or condition and is the rules under Art. 1189 are applicable to both SUSPENSIVE
demandable at once. AND RESOLUTORY CONDITION

Conditional Obligation- is one whose demandability or Joint and solidary obligations

extinguishment depends upon the happening of a condition. - When there is a concurrence of two or more creditors or
of two or more debtors in one and the same obligation,
Suspensive condition- is a condition the happening of which such obligation may be either joint and solidary.
will give rise to the obligation. - GR: Joint
- EXP:
General Rule- The effect of the fulfillment of the suspensive o When there is express stipulation to the contrary
condition retroacts to the day of the constitution of the o When the nature of the obligation requires
obligation. liability to be solidary
o When the law so provides
Joint obligation- each debtor is liable only for a proportionate extinguishes only his own share. The obligation is converted
part of the deb, and each creditor is entitled only to a into an obligation to pay the value of the thing.
proportionate part of the credit.
4. A joint indivisible obligation gives rise to indemnity for
Solidary obligation- each debtor is liable for the whole damages from the time anyone of the debtors does not comply
obligation, and each creditor is entitled to demand payment of with his undertaking. The debtors who may have been ready to
the whole obligation. fulfill their promises shall not contribute to the indemnity
beyond the corresponding portion of the price of the thing or of
Joint divisible obligation- the value of the service in which the obligation consists.

1. Each creditor can demand only for the payment of his 5. If one of the debtors is insolvent, the others shall not liable
proportionate share of the credit, while each debtor can be held for his share.
liable only for the payment of his proportionate share of the
debt. Article 1218. Payment by a solidary debtor shall not entitle
him to reimbursement from his co-debtors if such payment is
2. A joint creditor cannot act in representation of the other made after the obligation has prescribed or become illegal.
creditors, while a joint debtor cannot be compelled to answer
for the acts or liable of the other debtors.

Joint indivisible obligation- is an obligation where the debtors

or creditors are jointly bound but the prestation or object is
indivisible.

Characteristics:
1. The creditors must act collectively, all of them must make
the demand, unless one is specifically authorized to act for the
others.

2. The demand must be made against all the debtors since

compliance is possible only if they act together.
3. The right of the creditors may be prejudiced only by their
collective acts. Thus, a renunciation made by a joint creditor
Payment is that mode of extinguishing obligations which In any other case the place of payment shall be the domicile of
consists of the delivery of money or the performance in any the debtor.
other manner of an obligation.
If the debtor changes his domicile in bad faith or after he has
Article 1236. The creditor is not bound to accept payment or incurred in delay, the additional expenses shall be borne by
performance by a third person who has no interest in the him.
fulfillment of the obligation, unless there is a stipulation to the
contrary. Article 1256. If the creditor to whom tender of payment has
been made refuses without just cause to accept it, the debtor
Whoever pays for another may demand from the debtor what shall be released from responsibility by the consignation of the
he has paid, except that if he paid without the knowledge or thing or sum due.
against the will of the debtor, he can recover only insofar as the
payment has been beneficial to the debtor. (1158a) Tender of payment- is the act of the debtor of offering to his
creditor what is due him
Article 1237. Whoever pays on behalf of the debtor without
the knowledge or against the will of the latter, cannot compel Consignation- is the act of depositing the sum or thing due
the creditor to subrogate him in his rights, such as those arising with the judicial authorities whenever the creditor refuses
from a mortgage, guaranty, or penalty. (1159a) without just cause to accept the same, or in the cases when the
creditor cannot accept it.
Article 1238. Payment made by a third person who does not
intend to be reimbursed by the debtor is deemed to be a IGW Requisite (steps) for tender of payment and
donation, which requires the debtor's consent. But the payment consignation to extinguish the obligation:
is in any case valid as to the creditor who has accepted it.
1. There must be a valid tender of payment. (Art. 1256)
Article 1251. Payment shall be made in the place designated in 2. The creditor refuses without just cause to receive the
the obligation. payment. (Art. 1256)
3. There must be prior notice of consignation to the
There being no express stipulation and if the undertaking is to persons interested in the fulfillment of the obligation
deliver a determinate thing, the payment shall be made (before deposit)
wherever the thing might be at the moment the obligation was 4. The sum or thing due is deposited with the proper
constituted. judicial authorities. (Art. 1258)
5. There must be subsequent notice of consignation to the
persons interested in the fulfillment of the obligation.
 EXP: Consignation alone shall produce the same effect in obligation, as a result of which it extinguished the entire
the following cases: obligation or only in that part which the remission refers.
(1) When the creditor is absent or unknown, or does not
appear at the place of payment; Article 1274. It is presumed that the accessory obligation of
(2) When he is incapacitated to receive the payment at the pledge has been remitted when the thing pledged, after its
time it is due; delivery to the creditor, is found in the possession of the debtor,
(3) When, without just cause, he refuses to give a receipt; or of a third person who owns the thing. 
(4) When two or more persons claim the same right to
collect; By the confusion or merger of the rights of creditor
(5) When the title of the obligation has been lost.  and debtor;

Confusion is the merger of the characters of creditor and debtor

Lost- a thing is considered lost, when it perishes, or goes out of in the same person by virtue of which the obligation is
commerce, or it has disappeared in such a way that its extinguished.
existence is unknown or it cannot be recovered.

Article 1265. Whenever the thing is lost in the possession of By compensation;

the debtor, it shall be presumed that the loss was due to his
fault, unless there is proof to the contrary, and without It is a mode of extinguishing in their concurrent amount those
prejudice to the provisions of article 1165. This presumption obligations who in their own right are creditors and debtors of
does not apply in case of earthquake, flood, storm, or other each other.
natural calamity. 
Article 1278. Compensation shall take place when two
Article 1269. The obligation having been extinguished by the persons, in their own right, are creditors and debtors of each
loss of the thing, the creditor shall have all the rights of action other.
which the debtor may have against third persons by reason of
the loss. Conventional compensation- takes place by agreement of the
parties who are mutually creditors and debtors with each other,
By the condonation or remission of the debt; even though all of the requisites for compensation may not be
present.
Condonation or remission is essentially gratuitous, it is an act
of liberality by virtue of which the obligee, without receiving Article 1282. The parties may agree upon the compensation of
any price or equivalent, renounces the enforcement of the debts which are not yet due. 
Legal compensation- takes place by operation of law and Second case- The assignment may be made with the
extinguishes both debts to the concurrent amount even though knowledge but without the consent or against the will of the
the debts are payable at places. debtor.
Effect: Compensation can be set up regarding debts
Article 1290. When all the requisites mentioned in article 1279 previous to the cession or assignment. Here, legal
are present, compensation takes effect by operation of law, and compensation has already taken place.
extinguishes both debts to the concurrent amount, even though
the creditors and debtors are not aware of the compensation. Third case- Assignment made without the knowledge of the
debtor
IGW Article 1279. In order that compensation may be proper, Effect: Debtor can set up compensation as a defense for
it is necessary: all debts maturing prior to his knowledge of the assignment.
(1) That each one of the obligors be bound principally, Note: The crucial time here is the time of knowledge of
and that he be at the same time a principal creditor of the assignment, not the time of assignment itself.
the other;
(2) That both debts consist in a sum of money, or if the
things due are consumable, they be of the same kind,
and also of the same quality if the latter has been stated;
(3) That the two debts be due;
(4) That they be liquidated and demandable;
(5) That over neither of them there be any retention or
controversy, commenced by third persons and
communicated in due time to the debtor.

Effect of Assignment on Compensation of Debts

First case- The assignment may be made with the consent of

the debtor
Effect: Compensation cannot be set up (because there
has been consent and therefore a waiver.
EXP: If the right to the compensation is reserved.
 By novation. IGW Article 1302. It is presumed that there is legal
subrogation:
Novation is the substitution or change of an obligation by
another, resulting in its extinguishment or modification, either (1) When a creditor pays another creditor who is preferred,
by changing its object or principal condition, or by substituting even without the debtor's knowledge;
another in place of the debtor, or by subrogating a third person
in the rights of the creditor. (2) When a third person, not interested in the obligation, pays
with the express or tacit approval of the debtor;
Expromision- it is when with the consent of the creditor, a
third person initiates the substitution and assumes the (3) When, even without the knowledge of the debtor, a person
obligation even without the knowledge or against the will of interested in the fulfillment of the obligation pays, without
the old debtor. prejudice to the effects of confusion as to the latter's share.

Delegacion- is a substitution of debtors effected when the old Article 1301. Conventional subrogation of a third person
debtor offers and the creditor accepts a third person who requires the consent of the original parties and of the third
consents to the substitution. person. 

Article 1303. Subrogation transfers to the persons subrogated

Article 1294. If the substitution is without the knowledge or the credit with all the rights thereto appertaining, either against
against the will of the debtor, the new debtor's insolvency or the debtor or against third person, be they guarantors or
non-fulfillment of the obligations shall not give rise to any possessors of mortgages, subject to stipulation in a
liability on the part of the original debtor. conventional subrogation. (1212a)

Article 1295. The insolvency of the new debtor, who has been Article 1304. A creditor, to whom partial payment has been
proposed by the original debtor and accepted by the creditor, made, may exercise his right for the remainder, and he shall be
shall not revive the action of the latter against the original preferred to the person who has been subrogated in his place in
obligor, except when said insolvency was already existing and virtue of the partial payment of the same credit. 
of public knowledge, or known to the debtor, when the
delegated his debt.
Article 1231. Obligations are extinguished:

(1) By payment or performance;

Objective questions:
1. What are the essential requisites of an obligation and briefly
explain each

2. In an obligation to give or to do, when does the debtor incurs

delay in the performance of his obligation? What are the
exceptions if any?

3. What are the two principal kinds of condition? Explain

briefly each. You have 3 mins to answer
4. When is a thing considered lost? You have 2 mins to answer.
Thank you

5. What is the difference between joint obligation and solidary

obligation? You have 3 min to answer

Application: 1. Jay promised to deliver 100 cavans of rice to

Russel. The 100 cavans of rice which Jay intended to deliver
were lost in a flood.

What will happen to the obligation?

explain and state your legal basis.you have 3 min to answer.
Answer: Not extinguished. Genus nunquam perit. Generic
never perishes.