INTRODUCTION TO LAW
Law is a rule of conduct, just,
obligatory, promulgated by a
legitimate authority, and of
common observance and benefit.
SOCIETY AND LAW
CHARACTERISTICS OF LAW
REVIEWER IN OBLICON
 For a Society to Live in Peace ,free
from chaos and confusion, there has
to be LAW and ORDER.
 The primary function of LAW is to
put SOCIETY IN ORDER.
 Due to complexities and ever
dynamic times, Laws need to adapt;
this resulted to too many, too
technical,
 And too incomprehensible laws in a
civilized society.
 An understanding and knowledge of
the LAW gives one a great deal of
advantage
BUSINESS and LAW:
 Business and Law are
intertwined.
 If one wants to be successful in
business, he either learns the
law or hires the services of one
who knows and
Understands the law, because
ignorance of the law excuses no
one from compliance there with.
 It is a must for businesses to
employ the services of
accountants or lawyers.
 AN ACCOUNTANT with a
VERYGOOD FOUNDATION
AND UNDERSTANDING OF
LAW IS A PRICED
POSSESSION TO ANY
BUSINESSMAN.
DEFINITION OF LAW
1. It is a rule of conduct
Law tells us what shall be done
and what shall not be done. As
a rule of human conduct, law
takes cognizance of external
acts only.
2. It is obligatory
Law is considered a positive
command imposing a duty to
obey and involving sanction
which force so bedience.
3. It is promulgated by
legitimate authority.
Laws are enacted by Congress,
the legislative branch in the
Philippine government. Under
the Constitution, Congress is
clothed with authority to
promulgate laws.
4. It is of common observance
and benefit.
Law is intended by man to
serve man. It regulates the
relations of men to maintain
harmony in society and to
Make order and co-existence
possible. Law must, therefore,
be observed by all for the
benefit to fall. As
Commonly said, no one is
above the law.
NECESSITY AND FUNCTION OF LAW
 No order and stability. Susceptible to
external attack; thus, no external
defense because no order and
stability. Citizens can be likened to
sheep without a shepherd.
 It secures justice, resolves conflict,
orders society, protects interest,
controls social relation.
 Since we find the law necessary,
citizen should have some
understanding of the law and observe
it for a common goods and benefits.
SOURCES OF THE LAW
1. Constitution -Supreme
law, highest law of the land
2.Legislation –Created by Congress
3.Rules and regulations issued by
Administrative Agencies
4.Judicial decisions of the Supreme
Court –Decision of the SC applying or
interpreting the Constitution or the laws
form part of the legal system of the
Philippines.
5.Customs –Habits and practices
through long and uninterrupted usage
have become acknowledged and
approved by the society as “binding
rules of conduct”.
RULEINCASEOFDOUBTININTERP
RETATIONORAPPLICATIONOFL
AW:
 In case of doubt of the
interpretation or application of
the law, it is presumed that the
law making body intended the
right and justice to prevail
(Art.10,IbidCC).
 Under Art. 9of the Civil Code
provides that,“ no judge or court
shall decline to render judgment
by reason of the silence,
obscurity or in sufficiency of the
laws”
OBLIGATION
ART.1156
 A juridical necessity to give, to do,
or not to do (NCC, Art. 1156)
 An obligation is latin word of
obligatio or means tying or
binding. It is tie or bond that the
law
 recognizes, one is bound, in favor of
another, to render something-consist
of giving, doing or not doing.
 An obligation is a juridical relation
whereby a person (called the
creditor) may demand from
another (called the debtor) the
observance of a determinative
conduct ( the giving, doing or not
doing), and in case of breach, may
demand satisfaction from the assets
of the latter
 The obligation is a juridical necessity
because in case of non-performance,
the court of justice may be called
upon to enforce its fulfillment.
 To give pertains to the delivery of
immovable or movable which
creates real rights (Sale, donation,
deposit, and waiver) for purposes of
transferring ownership or
possession, pertains to real
obligations
 To do includes all kinds of personal
services, pertains to a positive
personal obligation
 Not to do consists in abstaining from
doing some act, pertains to negative
personal obligation, it
necessary includes obligation not to
give.
Elements of an Obligations
The juridical tie (Vinculum juris),
Active Subject or obligee/creditor,
Passive Subject or obligor/debtor,
contractual relation exist between the
parties.
LAW (EX-LEGE)
Obligee-The one who has the right to
demand the fulfillment of the obligation
(Creditor/Active Subject)
Obligation arising from law is not
presumed. Only those determined in the
CIVIL CODE and other special laws are
demandable and regulated by the
precepts of the law which establishes
them.(Art. 1158)
Obligor –The one whom obligation is
legally demandable (Debtor/Passive
Subject)
obligations or obligations arising from
law
or the Object or Prestation
Prestation - The object or conduct
required from the parties (Object)
Vinculum Juris –It’s the efficient cause,
establish by different sources of
obligations -law, contract, quasicontract, delicts, and quasi delicts
FORM OF OBLIGATIONS:
It may be oral, or in writing or partly
oral or partly in writing. As a general
rule, the law does not require any form
for obligations arising from a
contracts for their validity or binding
force (Art. 1356)
Obligations arise from: (Art. 1157)
Law –Imposed by law
Contracts –Stipulation of the parties
Quasi-contracts –Unjust enrichments
Delicts –When the obligation arises
from the civil liability which is the
consequence of criminal offense. (Acts
or omissions punished by law)
Quasi-delicts-When obligation arises
from the damaged cause to another,
there being fault or negligence, but pre
law, willfully or negligently causes
damage to another, shall indemnify the
latter for the same ( Art. 1159, NCC).
law: 1. Support, 2. Payment of taxes: 3.
Compliance with the traffic rules
CONTRACT (EX-CONTRACTU)
Obligation arising from the contracts
have the force and effect of law between
the contracting parties and should be
complied in good faith (Art. 1159)
Speaks about contractual obligation.
Contract is the meeting of minds
between two persons, whereby one
binds himself, with respect to the other,
to give something or to render some
service
Hence, the failure of one party with
respect with the
other to give or deliver something,
without justifiable cause or reason, the
other party may be entitled of the award
of damages.
ntract must not be against the law,
good moral, good customs, public
policy, and public order.
consequently no obligation will arise.
QUASI-CONTRACTS (QUASI EXCONTRACTUAL)
Art. 1160 –Obligations derived from
quasi contract shall be subject to the
provisions of Chapter 1, Title XVII of
this boo. (n)
voluntary, and unilateral acts by virtue
of which the parties become bound to
each other, based on the principle that no
one is unjustly enriched or benefited at
the expenses of the another
of another he has legal obligation to
reimburse the other party because the
law considers that parties as having
entered into a contract, irrespective of
their intention, to prevent injustice.
The two kinds of Quasi Contract
are Negotiorum Gestio, and Solutio
Indebiti.
pertains to the
voluntary take charge of the agencyor
management of business or property of
another. The latter is obliged to continue
the same until the termination of the
affairs and its incidents or to require the
person
concerned to substitute him, if the owner
is in the position to do so.
Solutio Indebiti–Something is
received if no right to demand it, and it
was unduly delivered thru mistake, the
obligation to return it arises.
DELICT ( EX-DELICTO OR CULPA
CRIMINAL)
Art. 1161. Civil obligations arising from
criminal offenses shall be governed by
the penal laws, subject to the provisions
of Art. 2177, and of the pertinent
provisions of Chapter 2, Preliminary
Title, on Human Relations, and of Title
XVII of this Book, regulating damages.
This is an obligation arising from
criminal offense and it shall be governed
by the penal laws.; thus, every person
criminally liable is also civilly liable.
The commission of criminal offense
constitute dual character; an offense
against the state because of the
disturbance of social order and an
offense against the private person
injured by the crime.
The civil liability under this obligation
could be a restitution of the property
taken, reparation of the damage caused;
or indemnification of the consequential
damages.
Example : The sum of money
awarded by the court to the family of the
aggrieved as accessory penalty.
The scope of civil liability under this
obligation could be a restitution of the
property taken, reparation of the damage
caused; or indemnification of the
consequential damages.
QUASI-DELICT
Art. 1162. Obligations derived from
quasi delicts shall be governed by the
provisions of Chapter 2, Title VII of this
Book and by special laws.
Whoever by act or omission causes
damage to another, there being fault or
negligence, is obliged to pay the damage
done. Such fault or negligence, if there is
no pre-existing contractual relation
between the parties, is called quasidelict.
In order for a defendant to be liable the
following elements must be present, the
plaintiff must prove that there must be a
an act or omission, fault or negligence,
damage caused, there must be a direct
relation of the damaged cause to the act
or omission and fault or negligence, and
there is no pre existing contractual
relation between the parties.
DELICTS DISTINGUISHED
FROM QUASI-DELICTS
1. In crime, there is criminal or
malicious intent or criminal negligence,
while in quasi delicts, there is only fault
or negligence;
2. In crime the purpose is punishment,
while in quasi delict, indemnification of
the offended party;
3. Crime affects the public interest,
while in quasi delict only affects private
concern;
4. In crime, there are generally two
liabilities: criminal and civil, while in
quasi-delict, there is only civil liability
5. Criminal liability cannot be
compromised or settled by the parties
themselves, while the liability for quasidelict can be compromised;
6. In crime, the guilt of the accused must
be proved beyond reasonable doubt;
while in delict, the fault or negligence
can be proven by preponderance of
evidence
NATURE AND EFFECT
Art. 1163. Every person obliged to give
something is also obliged to take Care of
it with the proper diligence of a good
father of a family, unless the law or the
stipulation of the parties requires another
standard of care.(1094a)
In real obligation, the OBJECT may
either be:
1.Specific or determinate thing –When
its particularly designated or physically
segregated from the others of the same
class. Can be pointed out with
particularity.
2.Generic or indeterminate thing- When
it refers only to a class or genus and
Cannot be pointed out with particularity.
RULES ON THE DELIVERY OF
DETERMINATE OR
INDETERMINATE THING.
Specific:
debtor cannot substitute it with another
although the thing to be delivered is in
the same kind or delivery, without the
creditor consent or vice versa.
Generic:
debtor can give anything of the same
class as long as it is in the same kind.
Genus never perishes.
DUTIES OF THE DEBTOR IN
OBLIGATION TO GIVE THE
DETERMINATE THING.
1. In personal right, there is creditor or
debtor, while in real right there is only
creditor or active subject.
1. Preserve and take care of the thing
with the diligence of a good father of the
family
2. The personal right is binding against
the particular person, while the real
right is binding or enforceable against
the world
2. Deliver the fruits of the thing
3. Deliver the accessions and accessories
4. Deliver the thing itself
5. Answer for damages in case of nonfulfillment or breach
DUTIES OF THE DEBTOR IN
OBLIGATION TO GIVE THE
GENERIC THING.
1. Deliver a thing which is of quality as
agreed by the parties
2. To be liable for damages in case of
fraud, negligence, or delay in the
performance of the obligation, or
contravention with the tenor of the
obligation.
Art. 1164. The creditor has a right to the
fruits of the thing from the time the
obligation to deliver it arises. However,
he shall acquire no real right over it until
the same has been delivered to him.
(1095).
DEFINITION OF PERSONAL
RIGHT AND REAL RIGHT
Personal right –Is a right or power of
the creditor to demand from the debtor
the fulfillment of the latter`s obligation,
to do, or not to do, or to give;
Real right –Is the right or interest of
the person over a specific thing.
DISTINCTION:
DIFFERENT KINDS OF FRUITS:
1.Natural fruits –Produce of the land,
and other products of animal w/0 human
intervention . Like growing trees on the
land; wild animals.
2.Industrial fruits –Produce by lands
thru cultivation or labor. Like vegetables
3.Civil fruits –Derived by virtue of
juridical relation. Like rent on the
Apartment; Interest on the loan
KINDS OF DELIVERY:
1. Actual or Constructive delivery
(tradition) –Transfer of the thing
physically
Example: A buys cake from B. The
delivery made by B is the actual delivery
of the thing due.
2. Constructive Delivery -the physical
transfer of the property is implied.
a. Tradition simbolica(symbolical
tradition) . Symbolical delivery. Ex.
Key of the house
b. Traditio longa manu-delivery by
mere consent or pointing out the object.
Ex. Pointing out the van
c.Tradition brevi manu (delivery by
short hand)
Example: When a tenant already in
possession of a house buys the house h
eis renting.
NOT cumulative, the election of one is
the waiver of another.
d.Traditio constitutum possessorium.
Example: A house owner, who sells his
house, but remains in possession as
tenant of the same house.
Art. 1165. When what is to be delivered
is a determinate thing, the creditor, in
addition to the right granted him by
Article1170,may compel the debtor to
make the delivery. If the thing is in
determinate or generic, he may ask that
the obligation be complied with at the
expense of the debtor.
If the obligor delays, or has promised to
deliver the same thing to two or more
persons who do not have the same
Interest. He shall be responsible for any
fortuitous event until he has effected the
delivery.(1096)
RIGHTS OF CREDITOR IF
DEBTOR FAILED TO DELIVER, IF
THE THING IS SPECIFIC OR
DETERMINATE:
1. Specific performance+Damages,if the
debtor is guilty of fraud, negligence,
delay, in contravention to the tenor of
obligation)OR
2. Demand for recession or cancellation
of the obligation Damages, if the debtor
is guilty of fraud, negligence, delay, in
Contravention to the tenor of
obligation)OR
3 Demand for payment of damages only,
if only the feasible remedy.
DETERMINATE or SPECIFICTHING
is EXTINGUISHED BY FORTUITOUS
EVENT.
RIGHTS OF CREDITOR IF
DEBTOR FAILED TO DELIVER, IF
THE THING IS GENERIC OR
INDETERMINATE:
 Ask for compliance of the
obligation by the debtor himself
or by third person at the debtor’s
expense. Demand a replacement
which is not of inferior or
superior quality.
 Demand damages from the
debtor if the debtor is guilty of
fraud, negligence, delay, or
contravention in the performance
of the obligation. (Article1170)
 An obligation to deliver an
INDETERMINATE or
GENERICTHING is NOT
EXTINGUISHED BYA
FORTUITOUS EVENT for
GENUS NEVER PERISHES
 However, when the debtor incurs
a delay or promised to deliver a
determinate thing to two or more
person she shall be responsible
for the fortuitous event until the
debtor effected the delivery.
Otherwise, An obligation to
deliver a DETERMINATE or
SPECIFIC THING is
EXTINGUISHED BY
FORTUITOUS EVENT.
Art. 1166. The obligation to give
a determinate thing includes that
of delivering all its accessions
and accessories, even though
they may not have been
mentioned. (1097a)
Distinction between Accession
and Accessories:
Accessions (PRODUCED) – are
the fruits of a thing or additions
to or improvements upon a thing
(the principal).
Examples: House or trees on a
land; rent sofa building; airconditioner in a car; profits or
dividends
Accruing from shares of stocks
Accessories- are things joined to
or included with the principal
thing for the latter’s decoration,
Better use or completion.
ACCESSORIES MUST
ALWAYS GO TOGETHER
WITH THE PRICIPALS.
a. To have the obligation
performed by debtor himself, or
by another (third party), unless
frame of a picture; bracelet of a
watch;
Art. 1167. If a person obliged to
do something fails to do it, the
same shall be executed at
his cost.
b. b. To claim DAMAGES if
with fraud, negligence, delay or
contravention of the terms
(Article 1170)
This same rule shall be observed
if he does it in contravention of
the tenor of the obligation.
Furthermore, it may be decreed
that what has been poorly done
be undone. (1098)
1. The debtor fails to perform an
obligation to do, the creditor has
a right:
personal considerations are
involved, at the expense of the
debtor, plus damages if with
fraud,
negligence, delay or
contravention of the terms
(Article 1170) OR.
b. To claim DAMAGES, if
involves personal consideration
2. In case the obligation is done
in contravention of the terms of
the obligation.
a. To have the obligation
fixed/performed or executed by
debtor himself or by a Third
party at Debtor’s expense, and
3. In case the obligation to do is
poorly done
a. To have undone by the debtor
himself or by the third person at
debtor's expense. And
b. To claim DAMAGES if with
fraud, negligence, delay or
contravention of the terms
(Article 1170
Art. 1168. When the obligation
consists in not doing, and the
obligor does what has been
forbidden him, it shall also be
undone at his expense. (1099a)
This Article refers to a personal
negative obligation, not to do.
This means the obligation is
fulfilled in NOT doing what is
forbidden.
REMEDIES OF THE
CREDITOR:
1. To UNDONE WHAT HAS
BEEN DONE
2. To claim DAMAGES if with
fraud, negligence, or with
contravention of the terms
(Article 1170)
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)
REQUISITES OF MORA
SOLVENDI:
1. Failure of the debtor to
perform his obligations
on the date agreed upon;
2. Demand was made by the
creditor to perform the
debtor`s obligations; and
3. Failure of the debtor to
comply with such
demand.
ORDINARYDELAY v.
LEGAL DELAY:
1. Ordinary delay is merely
failure to perform obligation
on time;
2. Legal delay or default or
mora is a failure to perform
the obligation on time Which
constitute breach of
obligation.
KINDS OF MORA:
Mora solvendi–Delay on
the part of the debtor
Mora accipiendi–Delay
on the part of creditor
Compensatio morae–
Delay of the obligors in
reciprocal obligations which
cancel the delay of the
obligee;thus,no actionable
default on the part of both
parties
WHEN DEMAND IS NOT
ESSENTIAL TO PUT THE
OBLIGOR IN DELAY:
1. When the obligations o
stipulates–It must expressly
stipulated in the Agreement
that no demand is necessary
2. When the law so provides–
Like payment of taxes.
3. When the time is the
essence or controlling
motive in the establishment
Of the obligation
4. When demand would be
useless
WHEN IS THE
COMMENCEMENT OF
DELAY IN RECIPROCAL
OBLIGATIONS
When there is a performance
by a party in reciprocal
obligations - In compensation
morae, the non performance
of one party in the reciprocal
obligation cancels the delay
of the other party; thus, there
is no actionable delay.
However, at the moment the
other party is ready to
comply or has complied with
his obligation, DELAY IN
THE OTHER PARTY
BEGINS.
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)
GROUNDS FOR
LIABILITY
1. Fraud - Also called
DOLO, it implies some
malice of dishonesty; thus,
deliberate or intentional.
Pertains to INCIDENTAL
FRAUD (with pre existing
contractual relations)
2. Negligence - Also called
CULPA, it implies of failure
to observe the degree of care
required in the performance
of the obligation. This is
implied in case of omission.
3. Delay-Also called MORA,
this pertains to breach of
obligations.
4. Contravene to the tenor
of agreement-This is in
violation to the terms and
conditions of the obligation
without valid and justifiable
reasons except due to
fortuitous event or force
majeure
KINDS DAMAGESMENTAL: (BOOK IV
TITLE XVIII OF CC)
1.MORAL (Art 2217 to
2220) - Besmirch reputation,
sleepless nights and moral
anguish.
EX. Due to A false
representation that he is the
owner of the land, B bought
the land from A.
2.ACTUAL or
COMPENSATORY (art
2205) - Like actual price of
the house
2. FRAUD IN THE
PERFORMANCE OF AN
OBLIGATION (DOLO
INCIDENTE).
3.EXEMPLARY OR
CORRECTIVE - to correct
the wrong and to set as
example.
Breach or non-fulfillment of
obligation
4. NOMINAL - sometimes
in absence of actual Damages
5.TEMPERATE or
MODERATE - loss but
amount cannot be determined
6. LIQUIDATED stipulated or agreed upon by
the parties (Based on the
agreement)
Art. 1171. Responsibility
arising from fraud is
demandable in all
obligations. Any waiver of
action for future fraud is
void. (1102a)
1. FRAUD IN THE
CONSTITUTION OF AN
OBLIGATION (DOLO
CAUSANTE)
Leads to vitiated consent
(Voidable - Injured party can
Annul the Contract)
• REMEDY: ANNULMENT
OF AGREEMENT +
DAMAGES
Remedy is not Annulment
but DAMAGES
Originally, injured party
VALIDLY gave his consent
Note: The waiver of fraud
based on past action is valid.