OBLIGATIONS
Subject Matter
1165
Dolo causante vs Dolo incidente (kinds of
fraud)
Culpa contractual, aquilliana, criminal (kinds
of negligence)
Remark
Creditor can compel delivery for determinate
things
Obligation complied at expense of debtor for
generic things
Causante – consent would not have been
given (voidable)
Incidente – different terms would have been
agreed (valid)
Contractual – negligent in performance
(master-servant rule applies) (ex. Breach of
contract cof carriage) (good faith in selection
of employee not a defense to employer)
Aquilliana – no contractual relation (quasi
delict) (master-servant does not apply)
(pedestrian na tinamaan lang ng reckless
driver, employer not liable)
1176
Remedies to enforce payment
Criminal – negligence resulting to a crime
(may be brought together with the two)
A receipt of (1)principal or (2) debt
installment without any reservation to prior
(1) interests or (2) installments are presumed
paid
[1] attachment
[2] accion subrogatoria (exhaust all possible
rights, except those personal)
Potestative vs mixed vs casual
Impossible condition for an obligation “not to
do”
[3] accion pauliana – impugn acts done to
defraud creditor (last resort)
pauliana = defrauded creditor
[1] Potestative – suspensive potestative
condition lang ang void
[2] casual – based on will of 3rd person
[3] mixed – partly chance and 3rd person
Ex. D to give C xxx if C marry X
Automatically demandable, deemed not
having been agreed upon
Happening of a suspensive condition
retroacts to the day of constitution
If debtor voluntarily prevents fulfillment of
condition makes it immediately demandable
(intention to prevent must be there)
Period
Ex die vs in diem
Except for fruits and interest for reciprocal
obligations only (deemed mutually
compensated)
Ex die – suspensive period (mamatay ka na ex
= suspension)
In diem – resolutory
“when my means permit me to do so” – this is
a period, and courts will fixed what period
Period is presumed for the benefit of creditor “payable on or before xxx” = benefit of
and debtor
debtor, kasi he has choice kalian magbayad.
Thus debtor cannot be compelled to
performance
“collectible on or before xxx” = benefit of
creditor, kasi he has choice din kalian icollect.
Thus creditor cannot be compelled to accept
performance
Alternative and Facultative Obligations
Types of obligation according to # of
prestations
[a] simple = one prestation
[b] compound = several
alternative – either one will suffice
facultative – one (principal), among
others
Alternative obligation
Facultative obligation
Several are due, but one will suffice
Only one is due, the others act as substitute
One void/impossible prestation does not
If the principal is void, or is impossible
affect the validity of others
substitution is not required
Right of choice to debtor, unless otherwise
Right of choice to debtor ONLY
If the prestation is communicated to the
Loss before/after substitution, just look at
other party, obligation ceases to be
kung ano yung demandable, we don’t care if
alternative
the substitute is gone or not
Special Rules for Loss of Object Before Communication of Choice (Debtor’s choice)
[1] Some are lost, thru fortuitous or thru fault Choose between remaining
[2] All are lost thru fortuitous
Extinguished
[3] All are lost thru fault
Value of last thing lost plus damages
[4] All except one, then lost thru fortuitous
Extinguished
[5] All except one, then lost thru fault
Damages lang
Key: find which is the demandable, then apply rules 1-3
Special Rules for Loss of Object Before Communication of Choice (Creditor’s choice)
[1] Some are lost thru fortuitous
Creditor shall choose among the remainder
[2] All are lost thru fortuitous
Extinguished
[3] Some are lost thru fault of debtor
[1] deliver any of remainder, or [2] price of
any of the lost object thru debtor’s fault plus
damages
[4] All are lost thru debtor’s fault
Price of any of them plus damages
Problems on Joint and Solidary Obligations
Determine the [1] collectible/payable first, then the [2] true limit
Rules on Renounciation
[1] Remission obtained by one solidary debtor does not entitle him to collect reimbursement
from his co-debtors (abusado ka teh?)
[2] But, your co-debtors may still collect from you, if that remission was done prior to
payment of whole obligation {siyempre, malay ba nila)
Other Rules:
[3] kung sino ang nag demand sayo na solidary creditor, dun kay magbayad, kasi kung
hindi, your payment to the other creditor is valid only up to his share
[4] creditor may proceed against any of the solidary debtors or all of them simultaneously, the
demand made against one of them shall not be an obstacle
[5] Upon payment of solidary debtor, he can collect reimbursement with interest from date
of payment
[6] insolvency of one solidary debtor is borne by others
[7] prescription for reimbursement – 10 years
Loss thru the fault of one solidary debtor
- anyone can be held liable, but only the guilty debtor shall bear the price, interest, and
damages
Solidarity exists despite different time periods and conditions (1211)
Solidary creditor cannot assign his right to a 3rd person without consent of others
The debtor in payment by cession is
released only up to the net proceeds
of the sale
- Debtor may withdraw the object
consigned (before acceptance of
creditor of the declaration) as a matter
of right
- Debtor may withdraw the object
consigned (after acceptance) only with
the consent of creditor
Condonation
Express condonation, to be valid:
- [immovables] remission AND
acceptance in a public instrument
- [movables above P5,000] remission
AND acceptance in writing
- [movables below] any form, but
simultaneous delivery of object/letter
Facultative Compensation
Type of compensation when not all
the requisites for legal compensation
are present
1. one of the debts arises from a
deposit/commodatum/claim for
support
2. one of the debts arises from a
penal offense
Tax
A. Estate Tax
B. Donor’s Tax
1.
For condoned debts, net receivable na agad ang included sa gross gift
2.
For successive donations, the 250k deduction is only once
C. VAT
1. VAT Monthly computation is not cumulative (unlike MCIT)
(MIM) Excess monthly input vat is carried over to next month, but not on the quarterly return
(MPQ) Excess monthly vat paid is NOT carried to next month, but only on the quarterly return (reverse)
(QIQM) Excess quarterly input vat is carried over to next month(s) and succeeding quarters
(QPNO) Excess quarterly vat paid is closed upon payment
2. There are 2 approaches for presumptive input vat when there is a purchase from a non-vat registered
Person. (1) is added with the vat-registered, and (2) ignored)
D. OPT
(ER3)
Requisite for General Percentage Tax
XXX. Taxation on Corporations
1.
NOLCO is deductible from gross income if (1) net income na, (2) RCIT is higher, BUT it expires
within 3 years
2.
MCIT is applicable to Domestic/Resident Foreign, but not NRC(since GIT FWT sila)
XXX. Proprietary Educational Institutions
1.
Compare first RELATED gross Income (receipts-cos) vs. UNRELATED gross income (RCITable)
2.
50% threshold (dapat lamang ang related income)
Considered as related: Tuition and miscellaneous fees
Income from hospitals used as residency for medical graduates
Canteen/Bookstore within school campus
x rent income (if silent)
x rent from canteen/bookstore that are mere concessionaires
XXX. [Non-stock, non-profit] or [Government] Educational Institutions
1.
The revenue from exclusive educational purposes is exempt
2.
Thus, you only get the RCIT of non-educational income and expenses
XXX. Capital Gains - Corporation
1.
The rate for RC/NRC on unlisted domestic stocks is first 100(5%) then next (10%)
2.
No CGT for capital asset dealings of RC/NRC (prohibited in NRC)
XXX. Intercorporate Dividends – NRC
1.
[hindi ito exempted] FWT 15% (with tax sparing) and 30% (without tax sparing)