FINAL EXAM FOR OBLICON Art. 2148.
Except when the management was assumed
(130 points)
A. True or False (25 Questions, 2 points each: indicate
your answer in the questionnaire)
B. Essay
NEGOTIORUM GESTIO
Art. 2144. Whoever voluntarily takes charge of the
agency or management of the business or property of
another, without any power from the latter, is obliged to
continue the same until the termination of the affair and
its incidents, or to require the person concerned to
substitute him, if the owner is in a position to do so. This
juridical relation does not arise in either of these
instances:
(1) When the property or business is not neglected or
abandoned;
(2) If in fact the manager has been tacitly authorized by
the owner.
In the first case, the provisions of Articles 1317, 1403,
No. 1, and 1404 regarding unauthorized contracts shall
govern.
In the second case, the rules on agency in Title X of this
Book shall be applicable. (1888a)
Art. 2145. The officious manager shall perform his duties
with all the diligence of a good father of a family, and pay
the damages which through his fault or negligence may
be suffered by the owner of the property or business
under management.
The courts may, however, increase or moderate the
indemnity according to the circumstances of each case.
(1889a)
Art. 2146. If the officious manager delegates to another
person all or some of his duties, he shall be liable for the
acts of the delegate, without prejudice to the direct
obligation of the latter toward the owner of the business.
The responsibility of two or more officious managers
shall be solidary, unless the management was assumed
to save the thing or business from imminent danger.
(1890a)
Art. 2147. The officious manager shall be liable for any
fortuitous event:
(1) If he undertakes risky operations which the owner
was not accustomed to embark upon;
(2) If he has preferred his own interest to that of the
owner;
(3) If he fails to return the property or business after
demand by the owner;
(4) If he assumed the management in bad faith. (1891a)
to save property or business from imminent danger, the
officious manager shall be liable for fortuitous events:
(1) If he is manifestly unfit to carry on the management;
(2) If by his intervention he prevented a more competent
person from taking up the management. (n)
Art. 2149. The ratification of the management by the
owner of the business produces the effects of an
express agency, even if the business may not have been
successful. (1892a)
Art. 2150. Although the officious management may not
have been expressly ratified, the owner of the property
or business who enjoys the advantages of the same
shall be liable for obligations incurred in his interest, and
shall reimburse the officious manager for the necessary
and useful expenses and for the damages which the
latter may have suffered in the performance of his
duties.
The same obligation shall be incumbent upon him when
the management had for its purpose the prevention of an
imminent and manifest loss, although no benefit may
have been derived. (1893)
Art. 2151. Even though the owner did not derive any
benefit and there has been no imminent and manifest
danger to the property or business, the owner is liable as
under the first paragraph of the preceding article,
provided:
(1) The officious manager has acted in good faith, and
(2) The property or business is intact, ready to be
returned to the owner. (n)
Art. 2152. The officious manager is personally liable for
contracts which he has entered into with third persons,
even though he acted in the name of the owner, and
there shall be no right of action between the owner and
third persons. These provisions shall not apply:
(1) If the owner has expressly or tacitly ratified the
management, or
(2) When the contract refers to things pertaining to the
owner of the business. (n)
Art. 2153. The management is extinguished:
(1) When the owner repudiates it or puts an end thereto;
(2) When the officious manager withdraws from the
management, subject to the provisions of Article 2144;
(3) By the death, civil interdiction, insanity or insolvency
of the owner or the officious manager. (n)
TERMINATED:
1. Return of the owner
2. Authorized expressly
REQUISITES:
1. there is a property or business
2. it is abandoned and/or neglected
3. taking over of the management or administration
without the knowledge of the owner
4. not have been tacitly or expressly authorized
5. voluntarily does it
a. Own volition – own free will
b. Knowledge - that he will care of the property
for the benefit of the owner
NATURE AND EFFECTS OF OBLIGATION
(ARTS. 1169-1174)
Art. 1169. Those obliged to deliver or to do
something incur in delay from the time the obligee
judicially or extrajudicially demands from them the
fulfillment of their obligation.
However, the demand by the creditor shall not be
necessary in order that delay may exist:
(1) When the obligation or the law expressly so
declare; or
(2) When from the nature and the circumstances of
the obligation it appears that the designation of the
time when the thing is to be delivered or the service
is to be rendered was a controlling motive for the
establishment of the contract; or
(3) When demand would be useless, as when the
obligor has rendered it beyond his power to perform.
In reciprocal obligations, neither party incurs in delay
if the other does not comply or is not ready to
comply in a proper manner with what is incumbent
upon him. From the moment one of the parties fulfills
his obligation, delay by the other begins. (1100a)
Art. 1170. 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. (1101)
Art. 1171. Responsibility arising from fraud is
demandable in all obligations. Any waiver of an
action for future fraud is void. (1102a)
Art. 1172. Responsibility arising from negligence in
the performance of every kind of obligation is also
demandable, but such liability may be regulated by
the courts, according to the circumstances. (1103)
assumption of risk, no person shall be responsible
for those events which could not be foreseen, or
which, though foreseen, were inevitable. (1105a)
 Cases on fortuitous event (e.g., Jimmy Co.,
Broadway Motors)
 Joint and solidary obligations in relation to
application of payments
 Compensation
 Condonation / Remission
 Cases on Novation
1. Inchausti & Co. vs. Yulo
2. Garcia, Jr. vs. CA
3. Kabangakalan Sugar Co. vs. Pachero
 Cases related to Consent
 Res perit domino / res perit creditory
 Effect of conditional obligation as far as novation
is concerned
 Relativity of Contracts – tortious interference
 Concept of mutuality of contracts
 Aspect of adhesion of contract
 Arts. 1381-1382 vs. Art. 1191
 Incapacity - Braganza vs. Villa Abrille Case
 Rescissible Contracts vs. Simulated Contracts
 Right of First Refusal vs. Option Contract
 Art. 1382 vs. Art. 1198
 Case on assailability of rescissible contract
(contract denying the heir of his / her legitime)
 Case on the Assailability of Voidable Contracts:
(Exception)
1. Teves vs. People's Homesite and Housing
Corp.
 Fraud Through Silence
 In pari delicto + exceptions

Art. 1173. The fault or negligence of the obligor

consists in the omission of that diligence which is
required by the nature of the obligation and
corresponds with the circumstances of the persons,
of the time and of the place. When negligence
shows bad faith, the provisions of Articles 1171 and
2201, paragraph 2, shall apply.

If the law or contract does not state the diligence

which is to be observed in the performance, that
which is expected of a good father of a family shall
be required. (1104a)

Art. 1174. Except in cases expressly specified by the

law, or when it is otherwise declared by stipulation,
or when the nature of the obligation requires the