*Natural law – an objective standard of right and wrong based on a correct

understanding of human nature.

*Divine law – is the law of religion and faith which concern itself with the
concept of sin and salvation

*Moral law – speaks of the totality of norms of good and right conduct
growing out of a sense of right and wrong of every community

*Estoppel – is a condition or state by virtue of which an admission or

representation is rendered conclusive upon the person making it, and cannot
be denied or disproved as against the person relying thereon (Art. 1431, NCC)

*Estoppel in pais applies wherein one, by his acts, representations or

admissions, or by his own silence when he ought to speak out ,
intentionally or through culpable negligence, induces another to believe
certain facts to exist and such other rightfully relies and acts on such belief, so
that he will be prejudiced if the former is permitted to deny the existence of
such facts.

*Estoppel by deed a type of technical estoppels by virtue of which a party

to a deed and his privies are precluded from asserting as against the other
party and his privies any right or title in derogation of the deed, or from
denying any material fact asserted therein.

*Estoppel by record is a type of technical estoppels by virtue of which a

party and his privies are precluded from denying the truth of matters set
forth in the record, whether judicial or legislative.

Take note that Estoppel by record only applies as between the same
parties or their privies and cannot be used against strangers.

Condonation or remission is an act of liberality where the creditor gives up

his right against the debtor, either in whole or in part, resulting in the
extinguishment of the latter's obligation. It is essentially gratuitous and
requires the acceptance of the debtor.

* Essential requisites for Remission : (1) There must be an agreement (since

acceptance of the offer is required); (2) The parties must be capacitated and
must consent; (3) There must be subject matter (object of the remission); (4)

The cause or consideration must be liberality (for remission is essentially

gratuitous); (5) The obligation remitted must have been demandable at the
time of remission; (6) The remission must not be inofficious (otherwise it
would be reducible, so that the legitimes of the compulsory heirs would not be

impaired).

*Classes of Remission

a. As regards to its effect or extent: (1) total; (2) partial.

b. As regards its date of effectivity: (1) inter vivos (during life); (2) mortis causa

(after death) –This must have the formalities of a will and the will must be
probated)

c. As regard its form: (1) implied or tacit (no formalities are required); (2)
express or formal (this requires the formalities of a donation if inter vivos; of a
will or codicil if mortis causa.

* Condition is a future and uncertain event, upon the happening of which, the
effectivity or extinguishment of an obligation depends.

* Take note that in order to constitute an event as a condition, it is not enough

that it be future; it must also be uncertain.

* Kinds of condition

1. Resolutory condition or condition subsequent – It extinguishes the

obligation upon its fulfillment. It means that the obligation is demandable at
once.

- Consequence of the happening of the condition

 = After the fulfillment of a Resolutory condition, whatever may have
been paid or delivered by one or both of the parties upon the constitution of
the obligtion shall have to be returned upon the fulfillment of the condition.

2. Suspensive condition – a future and uncertain event, the happening of

which gives birth to the obligation

= Example of Suspensive Condition - A promises to give his 1969

chevrolet camaro to B if the latter passes the 2027 CPA Board Exams.

- Take note that the obligation to give the Chevrolet camaro cannot be
demanded at once but becomes demandable only when B passes
the 2027 CPA Board Exams.

* Potestative Condition – an obligation with a potestative condition depends

upon the exclusive will of either of the parties.

the will of a third person.

*Mixed Condition – If its fulfillment is dependent partly upon the will of either of
the parties and partly upon chance or the will of a third person. (Art. 1182,
C.C.)

* Fortuitous Events – those events which could not be foreseen, or which,

though foreseen, were inevitable. (Art.1174 CC)

General Rule – No person shall be responsible for a fortuitous event

Exception to the Rule

a. When the law expressly provides for liability even for a fortuitous event.
Example: (1) The obligor delays or has promised to deliver the same
thing to two or more persons (Art.1165, last paragraph); (2) The possessor in
bad faith in every case (Art.552, par.2); and (3) The depositary who uses the
thing without the depositor’s permission, delays its return, or allows others to
use it (Art. 1979).

b. When the stipulation of the parties expressly provides for the liability for
fortuitous event.

Article 1306 of the Civil Code allows the contracting parties to establish
such stipulations, clauses, terms and conditions as they may deem fit,
provided that they are not contrary to law, morals, good customs, public order,
or public policy.

c. When the nature of the obligation requires the assumption of risk.

Basis: Art. 1174 and 1262 of the Civil Code

Example: A’s car was carnapped while it was in the possession of B for
repair. B is liable for the loss of the car due to carnapping. This is because
carnapping is a normal business risk for those engaged in the repair of motor
vehicles and the failure of the repair shop to provide the customer some form
of security for his property by reason of which he losses immediate control
constitutes negligence.

*Caso fortuito vs. Force majeure (technical distinction)

- Caso fortuito or Fortuitous event is independent of not only of the will of the
debtor but also of all human will.

Example: acts of God or natural occurrences, such as floods or typhoons

- Force majeure arises from an unavoidable happening, or from an act, lawful

or unlawful of a person other than the debtor, which act renders impossible on
the part of the debtor compliance with his obligation.

Example: acts of man, such as riots, strikes or wars

*Requisites
1. The cause of the breach of the obligation must be independent of the will
of the debtor
2. The event must be either unforeseeable or unavoidable
3. The event must be such as to render it impossible for the debtor to fulfil
his obligation in a normal manner
4. The debtor must be free from any participation in or aggravation of the
injury.

Take note that the burden of proving that the loss was due to a
fortuitous event rests on him who invokes it, being a case of exemption
from liability.

*Default or Delay
-Those who in the performance of their obligations are guilty of fraud,
negligence, or delay, and those who in any manner contravene the tenor
thereof, are liable for damages (Art.1170)

- Fraud connotes some kind of dishonesty, malice or bad faith on the part
of one of the parties. It is distinguished from negligence by the presence of
deliberate intent, which is lacking in the latter.

-Delay, Default or mora means delay in the fulfilment of obligations or the

non-fulfillment of obligation with respect to time.

*Mora Solvendi

-Mora Solvendi or debtor’s default is defined as a delay in the fulfilment of

an obligation, by reason of a cause imputable to the debtor

-Requisites

(1.) that the obligation be demandable and already liquidated; (2.) that the
debtor delays performance; and (3.) that the creditor requires the
performance judicially or extra-judicially.

*Mora Accipiendi

-Mora Accipiendi relates to the delay on the part of obligee/creditor/ active

subject in accepting the performance of the obligation by the
obligor/debtor/passive subject

-Requisites

(1) an offer of performance by the debtor who has the required capacity; (2)
the offer must be to comply with the prestation as it should be performed;
and (3) the creditor refuses the performance without just cause.

*Compensatio Morae

-It is the delay or default on the part of the parties because neither has
completed their part in their reciprocal obligations.

-Reciprocal Obligations, in turn are those arising from the same cause, and
wherein each party is a debtor and a creditor of the other, such that the
obligation of one is dependent upon the obligation of the other. They are to
be performed simultaneously, so that the performance of one is conditioned
upon the simultaneous fulfillment of the other.

*The power to rescind obligations is implied in reciprocal ones, in case one of

the obligors should not comply with what is incumbent upon him. (Art. 1191,
par.1)

Take note that Article 1191 of the Civil Code recognizes an implied or
tacit resolutory condition in reciprocal obligations. The condition is imposed by
law and applies even if there is no corresponding agreement between the
parties.

*Solidary and Joint Obligations

-The concurrence of two or more creditors or two or more debtors in one and
the same obligation does not imply that each one of the former (creditors) has
the right to demand, or that each one of the latter (debtors) is bound to render,
entire compliance with the prestations. There is solidary liability only when the
obligation expressly so states, or when the law or nature of the obligation
requires solidarity. (Article1207)

Definition of Joint Obligation

- An obligation where there is a concurrence of several creditors, or

several debtors, or of several debtors and creditors, by virtue of
which each creditor has the right to demand, and each of the debtors
is bound to render, compliance with his proportionate part of the
prestation which constitutes the object of the obligation.

Definition of Solidary Obligation

- An obligation in which each debtor is liability is liable for the entire

obligation, and each creditor is entitled to demand the whole
obligation. In this type of obligation each creditor may enforce the
entire obligation, and each debtor may be obliged to pay it in full.
 - Take note that when the term jointly and severally liable is used the
same refers to solidary obligations.

Kinds of Solidarity

1. Active solidarity refers to solidarity among the creditors

2. Passive solidarity refers to solidarity among the debtors

3. Mixed solidarity refers to solidarity among creditors and debtors at the

same time

Obligations with a penal clause

- In obligations with a penal clause, the penalty shall substitute the

indemnity for damages and the payment of interests in case of non-
compliance, if there is no stipulation to the contrary. Nevertheless,
damages shall be paid if the obligor refuses to pay the penalty or is
guilty of fraud in the fulfillment of the obligation. (1st paragraph, Article
1226)

- A penal clause has been defined as an accessory obligation which

the parties attach to a principal obligation for the purpose of insuring
the performance thereof by imposing on the debtor a special
prestation in case the obligation is not fulfilled or irregularly or
inadequately fulfilled.

Article 1255 of the Civil Code

- The debtor may cede or assign his property to his creditors in

payment of his debts. This cession, unless there is a stipulation to
the contrary, shall release the debtor from responsibility for the net
proceeds of the thing assigned. The agreements which, on the effect
of the cession are made between the debtor and his creditors shall
be governed by special laws.