71
Summary
TLDRThis 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
- π The presentation concludes the chapter on the nature and effects of obligations, moving on to conditional obligations and periods.
- π The confidence of the prelim exam is linked to alternative publication or Article 11, with the exam scheduled for 12:05.
- πΌ The distinction between 'Mutuo' (borrowing money or consumables) and 'Commun' (borrowing non-consumable items) is clarified, with examples provided.
- π 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.
- π The legal rate of interest has fluctuated, from 6% to 12% and back to 6%, influenced by central bank circulars.
- π The three requisites for stipulated interests are outlined: agreement, written form, and lawfulness.
- π‘ The concept of presumptions in law is introduced, differentiating between conclusive and disputable presumptions with examples.
- πΌ The order of payment for debts is discussed, with interest typically paid before the principal, unless otherwise proven.
- π The remedies available to creditors for monetary claims are detailed, including principal remedies like fulfillment and subsidiary remedies like action supererogatory.
- ποΈ 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
π 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.
π 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.
ποΈ 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.
π 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.
π 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.
Mindmap
Keywords
π‘Mutual Obligation
π‘Usury
π‘Legal Interest
π‘Requisites of Interest
π‘Presumption
π‘Principal and Accessory Obligations
π‘Remedies for Creditors
π‘Action Supererogatory
π‘Rescission
π‘Transmissibility of Obligations and Rights
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 vitΓ³ria 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
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