71

Summary

This lecture covers the final chapter on the nature and effects of obligations, focusing on the distinction between mutuo (money or consumable loans) and commodatum (non-consumable loans). It discusses the legality of interest rates, with a shift from usury laws to more relaxed regulations, and defines legal interest rates. The lecture also explains the requisites for interest agreements, the order of payment between principal and interest, and presumptions in debt payments. It concludes with remedies for monetary obligations, including specific performance and rescission, and the non-transmissibility of obligations, emphasizing the importance of these concepts in contract law.

Takeaways

• 📚 The presentation concludes the chapter on the nature and effects of obligations, moving on to conditional obligations and periods.
• 📅 The confidence of the prelim exam is linked to alternative publication or Article 11, with the exam scheduled for 12:05.
• 💼 The distinction between 'Mutuo' (borrowing money or consumables) and 'Commun' (borrowing non-consumable items) is clarified, with examples provided.
• 📉 Historical context on usury laws is provided, noting the changes from prohibiting excessive interest to allowing parties to agree on any rate, except if unconscionable.
• 📉 The legal rate of interest has fluctuated, from 6% to 12% and back to 6%, influenced by central bank circulars.
• 📝 The three requisites for stipulated interests are outlined: agreement, written form, and lawfulness.
• 💡 The concept of presumptions in law is introduced, differentiating between conclusive and disputable presumptions with examples.
• 💼 The order of payment for debts is discussed, with interest typically paid before the principal, unless otherwise proven.
• 📚 The remedies available to creditors for monetary claims are detailed, including principal remedies like fulfillment and subsidiary remedies like action supererogatory.
• 🏛️ The discussion on the non-transmissibility of obligations and rights is highlighted, with exceptions for inheritance and certain legal prohibitions.

Q & A

What are the two types of obligations discussed in the script?

The script discusses two types of obligations: 'Mutuo' (or simple obligation) which involves borrowing money or consumable things, and 'Commun' which involves borrowing non-consumable items like a ball pen or computer.

What is the difference between legal interest and usurious interest as per the script?

Legal interest refers to the interest rate that is allowed by law, which is currently 6% as per the Central Bank circular. Usurious interest, on the other hand, refers to charging excessive interest rates, which was prohibited before 1983 but has been relaxed with the advent of Central Bank Circular 9:05, allowing parties to agree on any rate of interest except if it's unconscionable.

What is considered unconscionable interest in the context of the script?

Unconscionable interest is described as interest that is shocking to the conscience of man, such as charging 2.5% interest per day.

What are the three requisites for an agreement to pay interest as mentioned in the script?

The three requisites for an agreement to pay interest are: there must be an agreement, the agreement must be in writing, and the interest rate must be lawful.

What is the rule regarding the payment of interest before the principal as per the script?

The script states that interest is paid ahead of the principal. However, if the principal is paid first, there's a disputable presumption that the interest has already been paid.

What are the two types of presumptions discussed in the script?

The script discusses conclusive presumptions, which are fixed and cannot be changed, and disputable presumptions, which can be changed or rebutted.

What is the principal remedy available to creditors for the satisfaction of their monetary claims as per the script?

The principal remedy available to creditors for the satisfaction of their monetary claims is fulfillment, specific performance, or collection of a sum of money.

What are the subsidiary remedies discussed in the script?

The subsidiary remedies discussed in the script include action supererogatory (substitution), action Pauliana (rescission), and the principle of exhausting the debtor's property to satisfy the debt.

What are the exceptions to the rule that interest should be paid ahead of the principal?

Exceptions to the rule that interest should be paid ahead of the principal include when there is a reservation in the receipt, when dealing with taxes, if the creditor proves that the interest is not yet paid, and if the receipt is antedated but the payment is not stated.

What does the script say about the transmissibility of obligations and rights?

The script states that obligations are not transmissible, while rights are generally transmissible unless prohibited by law, stipulation of the parties, or by nature of the right itself, such as the right to vote.

Outlines

00:00

📚 Introduction to Obligations and Interests

The script begins with an introduction to the final presentation on the chapter discussing the nature and effects of obligations. The presenter mentions that the chapter will be concluded with this presentation, and the next will focus on conditional obligations. The discussion then shifts to the distinction between 'mutum' and 'commun,' which refer to borrowing money or consumable items versus non-consumable items. The presenter explains the concept of usury and how it was addressed by the law before 1983. The current legal interest rate is highlighted as 6%, following changes by the central bank. The script also covers the requisites for interest agreements, emphasizing the need for a written agreement and the lawful rate of interest. Examples are provided to illustrate how these concepts apply in different scenarios.

05:01

📉 Presumptions and Payment Priorities in Obligations

This section delves into the concept of presumptions in obligations, distinguishing between conclusive and disputable presumptions. It explains that conclusive presumptions are fixed and cannot be changed, while disputable ones can be rebutted. The script then discusses the rules and presumptions related to the payment of interests and principal in debts. It outlines that interest is generally paid before the principal, but if the principal is paid first, there's a disputable presumption that the interest has been paid. The script also addresses the payment of prior and present installments, explaining the presumptions and exceptions that apply. Examples are given to clarify these rules and their exceptions.

10:02

🏛️ Legal Remedies for Creditors

The third paragraph focuses on the remedies available to creditors for the satisfaction of monetary claims. It introduces the concept of principal and subsidiary remedies, with specific performance or collection of a sum of money being the principal remedy. The script explains that if the principal remedy is not effective, subsidiary remedies such as action supererogatory (substitution) and rescission can be pursued. A detailed example is provided to illustrate how these remedies work in practice, including the process of exhausting property, substitution of debtors, and rescission of fraudulent transactions. The paragraph concludes with a brief mention of the next topics to be covered, including reciprocal obligations and the diligence required by law.

15:03

📜 Non-Transmissible Obligations and Rights

This paragraph discusses the non-transmissibility of certain obligations and rights. It explains that while rights are generally transmissible, there are exceptions such as when prohibited by law, stipulation, or nature. The script provides examples to illustrate this concept, including scenarios where a debtor's obligation cannot be demanded by a third party or where a right, like the right to vote, is inherently non-transferable. The paragraph emphasizes the importance of understanding these exceptions in the context of obligations and contracts.

20:04

📝 Conclusion and Review of Obligations

The final paragraph wraps up the discussion with a review of key points covered in the chapter. It highlights the importance of understanding the nature and effects of obligations, including the types of obligations, the instances when a debtor is liable for damages, and the distinctions between different kinds of damages. The script also reviews the rules and presumptions related to obligations and the remedies available to creditors. It concludes with a reminder of the diligence required by law and the principle of delivery in transferring ownership, emphasizing that these topics will be crucial for upcoming exams.

Keywords

💡Mutual Obligation

Mutual obligation refers to the legal concept where two or more parties are bound by a contract or agreement, each having duties and rights towards the other. In the script, this is discussed in the context of distinguishing between what is owed and the obligations arising from a loan or agreement, such as the obligation to pay back a borrowed amount or consumable item.

💡Usury

Usury is the practice of charging excessive interest rates on loans. The script mentions that prior to 1983, there was a usury law prohibiting this, but with the introduction of CP Circular 9:05, the rules were relaxed to allow parties to agree on any rate of interest, except when it is unconscionable.

💡Legal Interest

Legal interest is the rate of interest established by law. The script explains that the legal rate of interest was 6%, as per central bank circulars, and it is the rate that can be charged if no specific rate is agreed upon by the parties involved in a loan.

💡Requisites of Interest

The script outlines three requisites for interest to be charged legally: there must be an agreement, it must be in writing, and it must be lawful. These requisites are fundamental to understanding the conditions under which interest can be legally demanded and collected.

💡Presumption

A presumption in law is an assumption made based on existing evidence or lack thereof. The script differentiates between conclusive and disputable presumptions, explaining that the former cannot be changed while the latter can. In the context of payments, presumptions guide how payments are applied to interest or principal unless proven otherwise.

💡Principal and Accessory Obligations

The script discusses the concept of principal and accessory obligations, where the principal is the main obligation (like the amount of a loan), and the accessory is additional (like interest). It explains that the principal can exist without the accessory, but not vice versa, and that the accessory follows the extinguishment of the principal.

💡Remedies for Creditors

Remedies for creditors refer to the legal actions available to creditors to satisfy their claims. The script details the principal remedy, which is the fulfillment or collection of a sum of money, and subsidiary remedies, such as action supererogatory and rescission, which are secondary actions taken when the principal remedy is not sufficient.

💡Action Supererogatory

Action supererogatory is a legal remedy where a third party pays the debtor's obligation to the creditor, effectively substituting the debtor. The script uses this concept to illustrate how a third party can become responsible for a debt, which is a secondary remedy after the principal remedy has been pursued.

💡Rescission

Rescission is the legal term for canceling a contract and restoring the parties to their original positions. The script mentions rescission in the context of fraudulent transactions, where the contract is voided, and the obligation is extinguished after damages are covered.

💡Transmissibility of Obligations and Rights

The script discusses the transmissibility of obligations and rights, explaining that while rights are generally transmissible (can be passed on to another), obligations are not unless specified otherwise. It provides examples, such as the right to use a land, which may not be transmissible if prohibited by law or contract.

Highlights

Introduction to the final presentation on the chapter of nature and effects of obligation.

Explanation of the distinction between mutuo (simple loan) and commodatum (communal loan).

Discussion on usury laws and the impact of CP Circular 9:05 on interest rates.

Clarification of legal interest rates and their changes over time.

Requisite elements for stipulating interest in a loan agreement.

Examples of how to determine if interest can be demanded in different loan scenarios.

Introduction to the concept of presumptions in law and their types: conclusive and disputable.

Explanation of the rule that interest is paid ahead of the principal.

Discussion on the presumptions related to the payment of prior and present installments.

Exceptions to the general rules of presumptions in payments.

Overview of remedies available to creditors for monetary claims.

Description of the principal remedy and subsidiary remedies in debt collection.

Example of a comprehensive case study involving multiple remedies for debt collection.

Discussion on the non-transmissibility of natural obligations.

Explaining the transmissibility of rights in the context of obligations.

Highlighting the diligence required by law in the transfer of ownership through delivery.

Review of key concepts and principles covered in the chapter on the nature and effects of obligations.

Transcripts

good morning or good afternoon to

everyone this will be the last

presentation for the chapter in nature

and effects of obligation if you still

remember what I mentioned this time when

we started with article elements that I

told you we need at least four to five

presentations to finish this one and

this will be the last one hopefully okay

so the next chapter will be conditional

obligation then the following one will

be period maybe I forgot to mention the

confidence of the prelim exam is up to

alternative publication or article 11

12:05

okay now let's start with 1175 okay so

the first thing that I'm going to teach

you for today is the distinction between

Mutoh own and communal two dice when we

say mu Tong another word for mutton is

simple you are going to borrow money or

a consumable thing when you say

consumable no moobus no boss when you

use it you consume it on the other hand

when you say kamata - you're going to

borrow something which is not money

example ball pen t-ball computer okay so

that's the distinction between the two

matome is money or consumable thing

common autumn is non consumable so if a

powers from be nine thousand that is

what we call a smooth tone or simple

known on the other hand if a borrows

from being a table that is what we could

ask Amanda - we will learn more on this

when you reach law 3 credit transaction

or low - in some schools okay now what

is usually when you say usually you're

charging excessive interests so before

there was this usury law before 1983

prohibiting the charging of excessive

interest but with the advent of CP

circular 9:00 9:05 in ccp central bank

Banco central CP circular 9:05 it

relaxed the rules so the parties cannot

agree on any weight of interests okay

provided there is an exception if it is

unconscionable then it is still voice so

general rule they can agree provided it

is not

unconscionable what is unconscionable

changing for example 2.5 interests a day

that's unconscionable that is shocking

to the conscience of man so that is the

meaning of unconscionable shocking to

the conscience of man

so we now go to legal interest so again

the parties by the way the parties

cannot agree on any rate of interest

because the usual has been removed now

go into legal interests before it was 6%

it became 12% by virtue of central bank

circular for 1 610 on 2013 CB 99 okay or

central bank 799 so it is now again 6%

now very so the legal rate of interest

is now 6 percent okay so dun da da da da

these are basic things now requisite

story cover interests we have basically

three requisites number one

there must be an agreement number two it

must be in writing number three it must

be lawful so I'll give you three to four

problems and I hope you'll be able to

answer the question so guys normally ask

somebody to resign but since this is

online so you just have to provide

example and I hope you can exam answer

on your own so example a and B a power

would from be nine thousand so question

can be demand from a interest well

generally no why because they have no

agreement pertaining to interests

suppose a and read to the interest well

we cannot charge interest but if the

problem did not mention that a and read

to the interest then B cannot demand

there must be an agreement number two

suppose a agreed the interests but the

interest is oral agreement is oral can

be demand from a interest nothing no why

because the agreement must be in writing

in that situation on the oral agreement

for paying interests for it so again the

agreement to pay interest must be in

writing the loan you would on the house

and it can be oral but the interest it

must be in writing okay now it must be

lawful okay so we know what is know for

the interest or legal rate of interest

right so the last situation suppose a

and B agreed that there is interest in B

and they put it in writing but the

problem is they forgot

mentioned rate of interest so how much

is the rate of interest again 6% under

the new rule okay so can be recover from

a interest even though they did not

mention the specific rate of interest of

nothing yes provided it is in writing

okay now let's go to 11760 11788 a book

or any reviewer for that matter what is

a presumption it's any inference picado

no moola you know inference is a guess

okay there are two kinds of presumption

conclusive this one is already finally

it's already fixed it cannot be changed

example it go runs of the law can you

say that you don't know that or the

answer is no the bus and because ignore

asha legislative excuses so that's that

massive example of a conclusive

presumption on the other hand when you

say disputable are it free but about

this one it can be changed

okay example classic instance of the

person can you prove that the person is

guilty of the crime choice yes well the

presumption is insane well that

presumption can be rebutted it can be

changed another example in partnership

the presumption is that the

contributions equal but can you prove

that it's really not equal less it's

only a disputable consumption so that's

the distinction conclusive fixed in a

final measure on the other hand is split

of all it can be changed

okay so here in eleven seven six we have

two paragraphs this is the first

paragraph we have the rule then you have

the second paragraph also you have the

rule okay so what's the first rule first

paragraph interest is paid ahead of the

principal so guys before I ask the

question if you still remember my

discussion in article 11 66 and article

1163 the ban on young which is more

important the principle or the accessory

second the principle can the principle

exist without the accessories about yes

canned accessory exist without the

principle know if the principle 16 is

what happens access or extinguish if the

accessories extinguish what happens the

principle it remains because the

principle can stand alone but the

accessory follows the principle in other

words if the principal is extinguish the

accessories also a sting is excessive

said it principally the accessory

follows the extinguishment of the

principal because them accessory cannot

stand alone okay so guys you see not be

moving on do not answer

don't give me that answer here okay so

we have here the 9,000 10,000 is the

rule okay the 2% is necessary so the 2%

per game is successfully okay so

question if you are the DEP or what must

be paid first

or in Takano cal in okinawa barren why

should they pay first the principal or

the interest about nothing SD interests

because the rule is the interest is paid

ahead of the principal you know roulette

suppose a paid the 9000 then a by later

the law right because you should have

paid first

the interact so what is the presumption

when it paid the 9000 am presumption the

interest is already be a sing opinion

and a on principle so again what should

be paid first interest but the debt on

paid the principle the presumption is

the reason he paid the principle is

because the interest is already paid but

that presumption is only a disputable

presumption we can prove that the

interest is Method B okay let's go to

the second paragraph okay second

paragraph below what's the role prior

installments our first liquidated okay

prior installment so what's the

presumption prior installments already

pay so guys suppose a OSB monthly rental

payments or empezar installment so

suppose okay said member this is online

I I do not know when this will be

presented right it could be first

semester or second semester we don't

know suppose today is a bust

yeah okay so today is August right so

what do we call the July installment

it's good prior what do we call the

August installment the present

installment okay what do we call the

June again the prior installment so if

you are a what should be paid first the

prior or the presence of the priority

Nevada but a pay the present did a

follow the no no he violated - no so

what's the presumption when

pay the price and installment well the

prior installments are already paid

that's the reason when he paid the

present but can be proof that it's not

yet paid yes because this is one again

this one is only a dispute about

perception yeah okay so did another

before I go to the exception to the rule

in the first paragraph

what is the rule the interest should be

paid ahead of the principal but if you

pay the principal the presumption is the

interest is already paid but can it be

proven that the interest is not yet

really paid yes because it is only a

disputable presumption under the second

paragraph what is first spill the prior

or the presence ago to pry or they are

first liquidated so if you pay first the

present the presumption is the priced or

miss already paid but can it be proven

that the prior installments are not yet

paid yes because it is only a disputable

presumption now we have exceptions to

11:00 service meaning the presumptions

there are not applicable number one if

there is a reservation so example there

is a receipt receipt okay that is it

mentions that the interest is not yet

paid oh it's very clear no need to

presume ok the example receive the

amount of nine thousand pesos interest

is not yet paid only be said no interest

is not to pay there is a reservation no

need to pressure number two taxes

suppose you pay the present but the

prior taxes are not yet paid so is there

a presumption again there is no

presumption the law does not apply to

taxes number three suppose it was Julie

proven by the creditor that the interest

is not a paid the price dolmas and a

third page we don't apply the

presumption finally the fourth one if

the receipt is baited but the mom paid

is not statement so nice

suppose here we have a receipt right

normally you're going

suppose this month is August okay

suppose so all those twelve twenty

twenty okay but it's not promised nice

its Jude okay suppose it's August 1 20

20 huh

okay I recorded it in advance

today's June 18 2020 who knows okay

maybe 10 years from now you will know

that this will this was recorded June 18

20 20 so suppose it's August 12 20 20

the receipt mentions that be much about

this of us speed what is August again

August is the present month so do we

apply the presumption so what yes but

suppose that is it did not mention the

month

yeah I'm gonna be a long received the

amount of nine thousand as payment for

the installment so being a good amount

done right where where it move it are

we're going to pay to the present or to

the prior to the pry or irrelevant the

day here is just for purposes of when

did you receive the money but it did not

mention the month so being a good

accountant you're going to look if the

price homicide not get paid and if it is

not a pin you apply to the price Tony I

own okay now let's go to eleven seventy

seven guys okay now if you still

remember guys what I then the remedy

skies diba 1165 in a brain sixty seven

eleven sixty a 1177 1191 now 1165

obligation to care of 1167 obligation to

do 1168 obligation not to do 1177

monotonic claims or monetary obligation

1191 remedies in reciprocal obligation

estimating will be able to finish that

one okay so guys the title of eleven

sevens remedies available to creditors

for the satisfaction of their monetary

claiming para so we have here a

principle remedy and we also have a

subsea journey remedy what do you mean

by principle remedy when we say

principle remedy that's the first thing

that you're supposed to file in court

well guys needless to say before you do

anything of this you have to make a

demand because there if there is no

demand there is no delay again the

demand normally is preceded by an

extrajudicial demand and after the

extrajudicial demand there will be a

judicial demand debar

I discussed that already in 1169 survice

the principle remedy here is

fulfillment specific performance or

collection of some of money all of them

are the same but in Leominster it's very

popular to say collection of sum of

money but specific performance exact

fulfillment there are synonyms right

always ups easily exhaust the property

when you say exhaust it means enough to

find other properties locate other

properties now number two action super

Vittoria what do you mean by Suburgatory

substitution substitution now what about

action pollyana rescind okay now these

three remedies are subsidiary again when

you say subsidiary the secondary

remedies and action pollyana is supposed

to be the last the last remedy may order

see the exhaust then substitute and

finally receive okay for you to

understand it let's put it in an example

and there is only one example here dice

very long example now suppose the OSI

200000 do today okay again let me test

your knowledge did not pay today is

Indonesia

it's the intellect sorry it's the

interface ever no no demands no delay so

she has to make a demand again

extrajudicial demand right okay to put

the data in delay if the data does not

pay then is now liable to pay for

damages under eleven seventy okay so

question what is C supposed to do

she is going to file a case in court

suppose MTC okay municipal trial court

or metropolitan trial court so before we

go to the point lies Dios owns rather

owns a car worth 100,000 X another

person owes be fifty thousand they sold

the land to I with the element of fraud

how much is the value of the land

Praveena 10 1 million yeah okay so we

need those facts okay so ready

all right let's analyze again what we'll

see file in the MTC

yeah the principal run in the exact

fulfillments specific performance or

collection of sum of money so map

official title now please

case collection of sum of money so now

if I laugh but they still did not pay

una parada de turn it up a so see will

now have

go to the other remedies so question

other properties which we can exhaust

locate fine attach some typing s so D

has a car so the 200000 here were going

to less the car worth 100,000 because

that's the value of the car so the

amount of the obligation which remains

is only 100,000 what did we do

exhaust the property we attached we were

able to find the property so it was

exhausting

number 2 action supererogatory ax there

is still a balance of another dollar so

we can go to the second remedy action

supererogatory ax so we are the car the

whole world will tell X to the P D mu

Pacey so X will PC 50,000 that is the

case of action super vitória in other

words for you to understand it

who is the vector here X which the

credit or here the D will be substituted

by C substitution public on needy and

e6b okay then finally action / Jana

rescission do we have an anomalous or

fraudulent transaction move on we have

here when these on the land why because

he does not want to paste obligation to

see there is an element of fraud so this

land will be rescinded and the 50,000

out of the 1 million will be paid and

now the obligation is extinguished so

are we going to listen the whole world

mean don't know we're going to receive

only the 50,000 RS is valid because this

is the essence of rescission once the

damage has been covered that's it okay

you will learn more on that when we

discuss 1191 and 1380 here in the

subject ok for the mean time in universe

one step at a time baby steps right okay

let me submit a last provision for today

what's the principal obligations are not

permissible rights are transmissible

this one is one of my favorite provision

normally it takes me only 1 to 2 minutes

to finish this now guys I see a he owes

me 100,000 pesos yes two sons a 1 a 2 B

as two sons B 1 B 2 if the guys should a

one and A two baby no because obligate

shows are not transmissible Oh divine

now let's go to this scenario suppose

it's B who died can B 1 and B 2 collect

from a so nothing yes because rights are

transmissible now I have to go to the

personal again suppose a1 and a2 inhabit

50,000 each of them coming from the

estate the proprietary should they pay P

yes the ESPE the one they receive will

be the one to pay B but suppose they did

not receive anything or they receive

anything but it's insufficient but let's

go to the first example they did not

receive anything they still paid be when

they paid any natural obligation because

a natural obligation cannot be demanded

it cannot be enforced okay remember why

because obligations are not

transmissible now rights are

transmissible that's the general rule we

have exception if it is prohibited by

law in the non agency in the loan

partnership in the noncom attitude when

you ask a person when you borrow

something from person the right to

borrow cannot be transmitted meaning you

cannot ask or allow a third person to

use it

it's prohibited by law okay so now here

on car Pinero peseta that's not allowed

that's contrary to the provisions of

kata - now it prohibited by stipulation

of the parties example the moment one of

them dies then the right to use the land

is extinguished then if the person dies

the right is not transmitted by you now

number three not transmissible by nature

or right to both can you transfer the

right to vote another person no because

by its very nature it is confined only

to a specific person the right to vote

cannot be transferred it cannot be sold

you cannot sell it as prohibited also by

law okay so guys this is the end of the

discussion so just to make a short

review of this chapter I am going to ask

them normally okay you can relate to

these questions then you have understood

generic specific you have to do that

that's very busy

personal right real right that's 1164

that's basic also okay

what are the instances when the debtor

is liable to pay for damages fraud delay

violation negligence what are the kinds

of damages mental okay how do we

distinguish a contractual culpa criminal

and cool pakalana number six what's the

distinction between dollar for Santa and

dollar incident and that's very basic

ice okay

what is a 427 okay general rule the

debtor is not liable the obligation is

extinguish right but we have exception

wherein the debtor is still liable okay

then you have here the presumption what

is the presumption what's the rule okay

then you have the remedies I'm going to

make the remedies in one de la vie 6511

see seven basic state 1177 and 1191 okay

and finally number five okay this is

very busy

what is the diligence required by law

and if that could be another principle

what transfers ownership delivery so

guys expecting the pilot exam in the

midterm exam there will be a lot of

question here because this is the

essence of obligation and contract

nature and effects of obligation

bye guys