FINAL EXAM FOR OBLICON Art. 2148.

Except when the management was assumed

to save property or business from imminent danger, the
(130 points) officious manager shall be liable for fortuitous events:
(1) If he is manifestly unfit to carry on the management;
A. True or False (25 Questions, 2 points each: indicate (2) If by his intervention he prevented a more competent
your answer in the questionnaire) person from taking up the management. (n)
B. Essay
Art. 2149. The ratification of the management by the
NEGOTIORUM GESTIO owner of the business produces the effects of an
Art. 2144. Whoever voluntarily takes charge of the express agency, even if the business may not have been
agency or management of the business or property of successful. (1892a)
another, without any power from the latter, is obliged to
continue the same until the termination of the affair and Art. 2150. Although the officious management may not
its incidents, or to require the person concerned to have been expressly ratified, the owner of the property
substitute him, if the owner is in a position to do so. This or business who enjoys the advantages of the same
juridical relation does not arise in either of these shall be liable for obligations incurred in his interest, and
instances: shall reimburse the officious manager for the necessary
(1) When the property or business is not neglected or and useful expenses and for the damages which the
abandoned; latter may have suffered in the performance of his
(2) If in fact the manager has been tacitly authorized by duties.
the owner.
The same obligation shall be incumbent upon him when
In the first case, the provisions of Articles 1317, 1403, the management had for its purpose the prevention of an
No. 1, and 1404 regarding unauthorized contracts shall imminent and manifest loss, although no benefit may
govern. have been derived. (1893)

In the second case, the rules on agency in Title X of this Art. 2151. Even though the owner did not derive any
Book shall be applicable. (1888a) benefit and there has been no imminent and manifest
Art. 2145. The officious manager shall perform his duties danger to the property or business, the owner is liable as
with all the diligence of a good father of a family, and pay under the first paragraph of the preceding article,
the damages which through his fault or negligence may provided:
be suffered by the owner of the property or business (1) The officious manager has acted in good faith, and
under management. (2) The property or business is intact, ready to be
returned to the owner. (n)
The courts may, however, increase or moderate the
indemnity according to the circumstances of each case. Art. 2152. The officious manager is personally liable for
(1889a) contracts which he has entered into with third persons,
even though he acted in the name of the owner, and
Art. 2146. If the officious manager delegates to another there shall be no right of action between the owner and
person all or some of his duties, he shall be liable for the third persons. These provisions shall not apply:
acts of the delegate, without prejudice to the direct (1) If the owner has expressly or tacitly ratified the
obligation of the latter toward the owner of the business. management, or
(2) When the contract refers to things pertaining to the
The responsibility of two or more officious managers owner of the business. (n)
shall be solidary, unless the management was assumed
to save the thing or business from imminent danger. Art. 2153. The management is extinguished:
(1890a) (1) When the owner repudiates it or puts an end thereto;
(2) When the officious manager withdraws from the
Art. 2147. The officious manager shall be liable for any management, subject to the provisions of Article 2144;
fortuitous event: (3) By the death, civil interdiction, insanity or insolvency
of the owner or the officious manager. (n)
(1) If he undertakes risky operations which the owner
was not accustomed to embark upon;
(2) If he has preferred his own interest to that of the TERMINATED:
owner; 1. Return of the owner
(3) If he fails to return the property or business after 2. Authorized expressly
demand by the owner; REQUISITES:
(4) If he assumed the management in bad faith. (1891a) 1. there is a property or business
2. it is abandoned and/or neglected
3. taking over of the management or administration
without the knowledge of the owner
4. not have been tacitly or expressly authorized assumption of risk, no person shall be responsible
5. voluntarily does it for those events which could not be foreseen, or
a. Own volition – own free will which, though foreseen, were inevitable. (1105a)
b. Knowledge - that he will care of the property
for the benefit of the owner
 Cases on fortuitous event (e.g., Jimmy Co.,
NATURE AND EFFECTS OF OBLIGATION Broadway Motors)
(ARTS. 1169-1174)
 Joint and solidary obligations in relation to
Art. 1169. Those obliged to deliver or to do application of payments
something incur in delay from the time the obligee
 Compensation
judicially or extrajudicially demands from them the
fulfillment of their obligation.  Condonation / Remission
 Cases on Novation
However, the demand by the creditor shall not be
necessary in order that delay may exist: 1. Inchausti & Co. vs. Yulo
2. Garcia, Jr. vs. CA
(1) When the obligation or the law expressly so
3. Kabangakalan Sugar Co. vs. Pachero
declare; or
(2) When from the nature and the circumstances of  Cases related to Consent
the obligation it appears that the designation of the  Res perit domino / res perit creditory
time when the thing is to be delivered or the service
is to be rendered was a controlling motive for the  Effect of conditional obligation as far as novation
establishment of the contract; or is concerned
(3) When demand would be useless, as when the  Relativity of Contracts – tortious interference
obligor has rendered it beyond his power to perform.
 Concept of mutuality of contracts
In reciprocal obligations, neither party incurs in delay  Aspect of adhesion of contract
if the other does not comply or is not ready to
comply in a proper manner with what is incumbent  Arts. 1381-1382 vs. Art. 1191
upon him. From the moment one of the parties fulfills  Incapacity - Braganza vs. Villa Abrille Case
his obligation, delay by the other begins. (1100a)
 Rescissible Contracts vs. Simulated Contracts
Art. 1170. Those who in the performance of their
 Right of First Refusal vs. Option Contract
obligations are guilty of fraud, negligence, or delay,
and those who in any manner contravene the tenor  Art. 1382 vs. Art. 1198
thereof, are liable for damages. (1101)  Case on assailability of rescissible contract
(contract denying the heir of his / her legitime)
Art. 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an  Case on the Assailability of Voidable Contracts:
action for future fraud is void. (1102a) (Exception)
1. Teves vs. People's Homesite and Housing
Art. 1172. Responsibility arising from negligence in Corp.
the performance of every kind of obligation is also
demandable, but such liability may be regulated by  Fraud Through Silence
the courts, according to the circumstances. (1103)  In pari delicto + exceptions

Art. 1173. The fault or negligence of the obligor

consists in the omission of that diligence which is
required by the nature of the obligation and
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, paragraph 2, shall apply.

If the law or contract does not state the diligence

which is to be observed in the performance, that
which is expected of a good father of a family shall
be required. (1104a)

Art. 1174. Except in cases expressly specified by the

law, or when it is otherwise declared by stipulation,
or when the nature of the obligation requires the