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1. What is an obligation and explain with illustrations its requisites?

An obligation is a juridical necessity to give, to do or not to do. It comes from the


Latin word obligare which means to bind through giving, doing or not doing
something. It is a juridical necessity because the rights and duties emanating from
obligation may be enforced in courts of justice which may order their performance if
refused or neglected.

Every obligation has four essential requisites, namely: a) juridical tie or vinculum
which is the link that binds the parties; b) the prestation which is the giving, doing or
not doing of something; c) the active subject which is the person who holds the right
to demand the prestation, called oblige or creditor; and d) the passive subject which
is the person against whom the prestation may be demanded, called obligor or debtor.

Example: Romeo executed a contract of loan to borrow money from Juliet whom he
wishes to spend in courting Juliet. Juliet in turn agreed and lend money to Romeo.

In the preceding example, Romeo is the passive subject while Juliet is the active
subject. Their prestation is the money being borrowed while their efficient cause is
the contract of loan. All of the essential requisites of an obligation is present, hence
such contract creates an obligation.
2. What are the sources of obligations?

Article 1157 of the Civil Code enumerates the sources of obligations, namely:

1) laws; 2) contract; 3) quasi-contract; 4) acts or omissions punishable by law; and 5)


quasi-delicts.

3. What is a quasi-contract and explain each kind?

There are two kinds of quasi-contracts, namely: negotorium gestio and solutio
indebiti. Negotorium gestio is the voluntary administration or management of an
abandoned business or property belonging to another without his consent. Solutio
indebiti is the juridical relation which is created by virtue of a payment by mistake
consequently obliging the payee to return to payor what he received.

4. What is a quasi-delict and how it is differentiated with delicts?

A quasi-delict is a legal wrong committed through fault or negligence causing


damage to a person or property thereby obliging the wrongdoer to pay for the damage
done, provided that there exists no contractual relation between them.

Acts or omissions punishable by law are better known as crimes or delicts, like
homicide or damage to property through reckless imprudence. Under the law a
person who is convicted for a criminal offense may be imprisoned, and in addition,
will be required to indemnify the heirs of the victim.

5. Enumerate and explain the special forms of payment.

Payment may also be effected in various special forms, namely: 1) dacion in


payment or dacion en pago; 2) payment by cession; and 3) tender of payment and
consignation.

(1) Dacion in payment. Dacion en pago is the conveyance of the ownership of a thing
which is accepted by the oblige (creditor) as a payment of a debt in lieu of money,
thereby extinguishing the obligation.

(2) Payment by cession. Payment by cession consists of the assignment of all the
properties of the debtor to his creditors in order that the same may be sold by the
creditors to satisfy their credits. Unless there is a stipulation to the contrary, the
cession shall extinguish the liability of the debtor to the extent of the net proceeds in
the sale.

Cession or assignment may be of two kinds, namely: (1) the voluntary cession in
which the consent of the creditors is needed, and (2) the legal or judicial where the
approval of the court is required. The latter is governed by the Insolvency Law.

(3) Tender of payment or consignation. This special form of payment is done through
the actual offering (not just a proposal) by the debtor to the creditor of the thing or
sum which he considers to be due. If this tender is unjustly refused, the debtor shall
complete this by making a consignation by depositing the thing or the amount due
with the court of competent jurisdiction in accordance with the formalities required by
law. Consignation shall be made also to extinguish the obligation in the following
cases: a) when the creditor is absent or is unknown, or does not appear at the place
of payment; b) when he is incapacitated to receive payment at the time it is due; c)
when without just cause, he refuses to give a receipt; d) when two or more persons
claim the same right to collect; and e) when the title to the obligation has been lost.

6. When may an obligor be relieved from his obligation by reason of loss of thing
due?

The thing due is considered lost when it perishes, or goes out of commerce, or
disappears in such a way that its existence is unknown or cannot be recovered. When
the obligation consists of doing something, there is loss when the prestation becomes
legally or physically impossible. On the other hand, an obligation consisting in the
delivery of a determinate thing shall be extinguished if it is destroyed without fault of
the debtor and before he has incurred delay.
7. X promises the use of his one-door apartment to Y provided the latter passes
the Board Examination for Mechanical Engineers. In this case, what kind of
obligation is established? Explain.

Conditional obligation. A conditional obligation is one whose performance is


subject to a condition which may either be suspensive or resolutory in effect. A
suspensive condition is one which upon fulfillment gives rise to the obligation
dependent upon it.

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