Law on Obligations and Contracts General Provisions What is obligation? Philippine Civil Code Article 1156 defines obligations as juridical necessity Obligation- is a legal bond by which one or more parties or obligants are bound to act or refrain from acting. Duty to perform (to give, to do, no to do – determinative conduct) 2 types of Obligation Real Obligation or Positive Obligation (debtor or obligator) – giving things (talks about real properties) Personal Obligation either positive or negative either to do or not to do (creditor or obligee)obligation to do or not to do or service (Example: clean the house wash clothes etc.) How about “not to do”? (Negative Obligation) You perform obligation by refraining yourself from doing something (Example: don’t drink alcohol etc.…. Bilateral – two agrees on obligation or both parties are mutually bound. Unilateral- the one party is the one who only performs the obligation. Civil Obligations- based on positive law, is a legal tie which gives the party or the oblige with whom it is contracted the right of enforcing its performance by law. Juridical Necessity- the rights and duties arising from obligation are legally demandable and the courts of justice may be called upon through proper action to order the performance. (non-compliance) (need to do) Moral Obligation- to attend the masses (not legally bound to fulfill) Natural Obligation -Example is debt of gratitude. Essential Requisites- parts of obligation, where if one part is missing it will no longer be able to called as Civil Obligations. 1. Passive Subject (debtor or obligor)- the one who is bound fulfill the obligation, has the duty (Example: Employee) The debtor is passive until the creditor take an action. 2. Active Subject (creditor or obligee)- the one that is entitled to demand the fulfillment of obligation, has the right. (Example: Philippine Government) Creditor – has a right to demand or makes the demand the performance of determinative conduct 3.Prestation or Object or Subject Matter- conduct required to be observed by the debtor (Example: the debtor needs to pay tax or income tax) This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ 4. Juridical tie or Legal tie or Efficient cause or Vinculum Juris - binds or connects the parties of obligations. (Example: Law) Tax CodeForms of Obligation- may be verbal or written (if written all terms and condition must be listed) “The law does not require law to confirm its validation.” Obligation- thing that you need to do that is enforced by the law of the government. Right- is the power that people has under the law, to demand from another prestation. Justice Paras Obligation is a juridical obligation- there’s at least one creditor or debtor, two parties. The right of creditor to demand and the right of debtor to command Article 1157: Obligation arise form Cause (sources of obligations) and Effect Sources of Obligation Law They are due without need for demand There is no agreement They are due without need for demand (Legal Obligation, best example is (tax code) paying tax, or (family code) obligation to play for your children) Contracts- meeting of minds is needed in order to have a contract Contractual Obligations (obligation es contractu) Freedom to stipulate- talking about the terms and conditions, if both agrees and after making a agreement or contract it will be (binding force) and will become the law between them. Remember the stipulations should not be contrary to laws, morals, good customs, Quasi Contract- resulted from voluntary and unilateral act, a juridical relationship between two persons, main goal is equality no unjust benefits *there’s criminal intent *Distort visor (This is not a contract at all, not express or implied contract, no consent between the parties) This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ Negotiorum gestio- the property was abandoned and then somebody suddenly or voluntarily took care of the abandoned property, there’s a prejudice on one side and benefit on the other side. The management or interference with the business or affairs of another without authority. (inequality) Solutio Indebti- you receive the object when you have no right to receive the thing delivered, the thing was delivered by mistake that’s why you need to return it. OmissionsQuasi delicts- there’s only negligence *Tortfeasor- the one who commits a tort, delict, or quasi-offense 9the one who does something wrong) 1161 Civil Obligation Criminal Liability – you will be put in jail Civil Liability- you will pay damages 1.Restitution 2. Reparation for the damages 3. Indemnification for consequential damages “All crimes has its own Civil Liability even though it is Criminal Liability” Chapter 2: Nature and Effect of Obligations Art 1163: Specific real obligations- this is the duty to give an specific object or unique object Specific Object – determinate, cannot be replaced Generic Object – can be replaced Duties of Debtor 1. Ordinary DiligenceExtraordinary Diligence- extra careful, you keep in your mind the different circumstances that can happen, this can happen if both party agrees. 2. Types of Fruits Natural fruits- natural Industrial fruits- need labor, industry etc.… Civil fruits- derived by virtue of a juridical relation *Suspensive- forecast to happen Suspensive Condition- Ex. I will give you bonsai fruits if Nancy became sexy. Suspensive Period- specified time after meeting the condition This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ *Contract of Sale- “all the fruits shall pertain to the vendee from the day on which the contract was perfected.” Art 1166- dividing the fruits Accession- additional and improvement Accessory- joined and included in the principal thing *Generic real obligation- duty is to give generic object Art 1246- Rule of medium or average, the debtor should deliver the medium quality based on the law if it is not specified by the creditor. Art 1165Art 1167- talks about personal obligations (to do, not to do) (positive) Fault Fraud Art 1168Art 1169 Meaning of Delay Ordinary Delay- failed to perform an obligation on time. Legal Delay or default or mora- failed to perform an obligation on time that breaches the obligation. (breach of contract) Kind of Delay Mora solvendi- the delay on the part of the debtor (to give or to do) (to fulfill) Types of mora solvendi Mora solvendi Ex re – default of the debtor on real obligations. Mora solvendi Ex persona- default of the debtor on personal obligations. “Must be due and demandable” “There’s also cases where demand is not required” Interest – is judicial demand Mora accipiendi- the delay on the part of the creditor (without justifiable reason to accept the obligation) *If the creditor don’t want to receive the obligation it is breach on contract (guilty) on the side of the creditor (creditor is at fault) *the creditor will be liable to return the expenses that the debtor has gave to the obligation after the creditor refused the obligation. (page 46) This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ Copensatio morae- the delay of obligors cancels the delay of the oblige and vice versa. delay of the parties in a reciprocal obligation (both has default or are in delay) Reciprocal obligation- example is contract of sales, performance is simultaneous *In order to convert the ordinary diligence to legal diligence there’s should be demand “No delay in negative personal obligation” Art 1171: Fraud and Responsibility *The law has no power to lessen the obligation or damages that the debtor has been made. *Waver of an action for future fraud (this is against public policy) *Past fraud can be waved, because it already happened its up to you to decide if you wave or forgive or give generosity of the creditor to the debtor. (the effects of fraud) (Wave= effect of the fraud.) Art 1172: Negligence *The courts are given a wide decresion or decision on how much amount the damages that the debtor has to do or need to pay. (page 60) Art 1174 (page 71) Chapter 3: Section 1 Pure Obligation- not subject to any condition or date for fulfillment, it is immediately demandable *Condition- future and uncertain event (future knowledge of an uncertain event) - may refer to the past event unknown to the parties, event happen in the past, but the parties didn’t know that it happened already. Conditional Obligation- whose consequences is subject to one way or another, it depends, possible to happen or not Characteristic of condition Future and uncertain, it can happen to the future, need to happen in the future but your uncertain that it can happen Past but Unknown, past event unknown to the parties, Possible, a condition must not be possible Two principal kinds of condition Suspensive condition, right after this happen dun palang magkakaroon ng obligation, may pinagusapan pero pause muna hanggang manyari yung suspense condition Resolutory condition, the obligation is immediately demandable This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ This study source was downloaded by 100000871154951 from CourseHero.com on 09-05-2023 08:15:47 GMT -05:00 https://www.coursehero.com/file/177694710/Law-on-Obligations-and-Contractsdocx/ Powered by TCPDF (www.tcpdf.org)
