Log In Search Oblicon reviewer summary the law on obligations and contracts Copy Julius Mila Continue Reading Download Free PDF lOMoARPSD 866 Download Free PDF Sign Up Oblicon-Reviewer - Summary The Law on Obligations and Contracts Bachelor of Science in Accountancy (University of the Assumption) StuDocu is not sponsored or endorsed by any college or university Downloaded by Julius Mila (mila.julius@yahoo.com) lOMoARPD 86 OBLIGATIONS AND CONTRACTS REVIEWER TITLE I – OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS 1156. An obligation is a juridical necessity to give, to do, or not to do. JURIDICAL NECESSITY – juridical tie; connotes that in case of noncompliance, there will be legal sanctions. An obligation is nothing more than the duty of a person (obligor) to satisfy a specific demandable claim of another person (obligee) which, if breached, is enforceable in court. A contract necessarily gives rise to an obligation but an obligation does not always need to have a contract. DAMAGES – sum of money given as a compensation for the injury or harm suffered by the obligee for the violation of his right. KINDS OF OBLIGATION A. From the viewpoint of “sanction” (a) CIVIL OBLIGATION – that defined in Article 1156; an obligation, if not fulfilled when it becomes due and demandable, may be enforced in court through action; based on law; the sanction is judicial due process (b) NATURAL OBLIGATION – a special kind of obligation which cannot be enforced in court but which authorizes the retention of the voluntary payment or performance made by the debtor; based on equity and natural law. (i.e. when there is prescription of duty to pay, still, the obligor paid his dues to the obligee – the obligor cannot recover his payment even there is prescription) the sanction is the law, but only conscience had originally motivated the payment. (c) MORAL OBLIGATION – the sanction is conscience or morality, or the law of the church. (Note: If a Catholic promises to hea r mass for 10 consecutive Sundays in order to receive P1,000, this obligation becomes a civil one.) B. From the viewpoint of subject matter (a) REAL OBLIGATION – the obligation to give (b) PERSONAL OBLIGATION the obligation to (c) NEGATIVE OBLIGATION – the obligation not to do (which naturally inludes not to give) D. From the viewpoint of persons obliged “sanction” (a) UNILATERAL – where only one of the parties is bound (e.g. Plato owes Socrates P1,000. Plato must pay Socrates.) (d) BILATERAL – where both parties are bound (e.g. In a contract of sale, the buyer is obliged to deliver) - may be: (b.1) reciprocal (b.2) non-reciprocal – where performance by one is nondependent upon performance by the other ELEMENTS OF OBLIGATION a) ACTIVE SUBJECT – (Creditor / Obligee) the person who is demanding the performance of the obligation; b) PASSIVE SUBJECT – (Debtor / Obligor) the one bound to perform the prestation or to fulfill the obligation or duty; c) PRESTATION – (to give, to do, or not to do) object; subject matter of the obligation; conduct required to be observed by the debtor; d) EFFICIENT CAUSE – the JURIDICAL TIE which binds the parties to the obligation; source of the obligation. e) CAUSA (causa debendi/causa obligationes) - why obligation exists PRESTATION (Object) 1. TO GIVE – delivery of a thing to the creditor (in sale, deposit, pledge, donation); 2. TO DO – covers all kinds of works or services (contract for professional services); 3. NOT TO DO – consists of refraining from doing some acts (in following rules and regulations). Requisites of Prestation / Object: 1) licit (if illicit, it is void) 2) possible (if impossible, it is void) 3) determinate or determinable (or else, void) 4) pecuniary va lue INJURY – wrongful act or omission which causes loss or harm to another DAMAGE – result of injury (loss, hurt, harm) 1157. Obligation arises – (1) law; (2)punished contracts; (3) quasi-contracts; (4)from acts or omissions by law; (5) quasi-delicts. (1) LAW (Obligation ex lege) imposed by law itself; must (b) PERSONAL OBLIGATION – the obligation to do or not to do (e.g. the duty to paint a house, or to refrain from committing a nuisance) C. From the affirmativeness and negativeness of the obligation (a) POSITIVE OR AFFIRMATIVE OBLIGATION – the obligation to give or to do (1) LAW (Obligation ex lege) – imposed by law itself; must be expressly or impliedly set forth and cannot be presumed - [See Article 1158] (2) CONTRACTS (Obligation ex contractu) – arise from stipulations of the parties: meeting of the minds / formal agreement - must be complied with in good faith because it is the “law” page 1 Downloaded by Julius Mila (mila.julius@yahoo.com) lOMoARPD 86 OBLIGATIONS AND CONTRACTS REVIEWER between parties; neither party may unilaterally evade his obligation in the contract, unless: a) contract authorizes it b) other party assents Note: Parties may freely enter into any stipulations, provided they are not contrary to law, morals, good customs, public order or public policy - [See Article 1159] (3) QUASI-CONTRACTS (Obligation ex quasi-contractu) – arise from lawful, voluntary and unilateral acts and which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another - 2 kinds: a. Negotiorum gestio - unauthorized management; This takes place when a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority b. Solutio in debiti - undue payment; This takes place when something is received when there is no right to demand it, and it was unduly delivered thru mistake - [See Article 1160] Code itself. Special laws – refer to all other laws not contained in the Civil Code. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. CONTRACT – meeting of minds between two persons whereby one binds himself, with some respect to the other, to give, to doby something or to render service; governed primarily the agreement of the contracting parties. VALID CONTRACT – it should not be against the law, contrary to morals, good customs, public order, and public policy. In the eyes of law, a void contract does not exist and no obligation will arise from it. OBLIGATIONS ARISING FROM CONTRACTS – primarily governed by the stipulations, clauses, terms and conditions of their agreements. If a contract’s prestation is unconscionable (unfair) or unreasonable, even if it does not violate morals, law, etc., it may not be enforced totally. (4) DELICTS (Obligation ex maleficio or ex delicto) – arise from civil liability which is the consequence of a criminal offense - Governing rules: 1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code COMPLIANCE IN GOOD FAITH – compliance or performance in accordance with the stipulations or terms of the contract or agreement. [Art 100, RPC – Every person criminally liable for a felony is also civilly liable] 2 Chapter 2 Preliminary title on Human Relations FALSIFICATION OF A VALID CONTRACT – only the unauthorized insertions will be disregarded; the original terms Interpretation of contract involves a question of law. 2. Chapter 2, Preliminary title, on Human Relations ( Civil Code ) 3. Title 18 of Book IV of the Civil Code – on damages - [See Article 1161] (5) QUASI-DELICTS / TORTS (Obligation ex quasi-delicto or ex quasi-maleficio) – arise from damage caused to another through an act or omission, there being no fault or negligence, but no contractual relation exists between the parties - [See Article 1162] 1158. Obligations from law are not presumed. Only those (1) expressly determined in this code or (2) in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this code. unauthorized insertions will be disregarded; the original terms and stipulations should be considered valid and subsisting for the partied to fulfill. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of chapter 1, title 17 of this book. QUASI-CONTRACT – juridical relation resulting from lawful, voluntary and unilateral acts by virtue of which, both parties become bound to each other, to the end that no one will be unjustly enriched or benefited at the expense of the other. There is no consent - consent is PRESUMED. Unless such obligations are EXPRESSLY provided by law, they are not demandable and enforceable, and (1) NEGOTIORUM GESTIO – juridical relation which takes place when somebody voluntarily manages the property affairs of another without the knowledge or consent of the latter; owner shall reimburse the gestor for necessary and useful expenses cannot be presumed to exist. The Civil Code can be applicable suppletorily to obligations arising from laws other than the Civil incurred by the latter for the performance of his function as gestor. (2) SOLUTIO INDEBITI – something is received page 2 Downloaded by Julius Mila (mila.julius@yahoo.com) About Press Blog People Papers Topics Job Board We're Hiring! Help Cent er Find new research papers in: Physics Chemistry Biology Health Sciences Ecology Earth Sciences Cognitive Science Mathematics Computer Science Terms Privacy Copyright Academia ©2023 PDFmyURL.com - convert URLs, web pages or even full websites to PDF online. Easy API for developers!
