Lesson-1-Obligation-and-Contracts-4.pptx

OBLICON

1. Obligations and Contracts

2. Operational Definition of Terms Law. It is a rule of conduct, just, obligatory, promulgated by legitimate authority, and of common observance and benefit. Divine Law. The law of religion and faith. It varies on the beliefs revealed to mankind thru messengers or prophets e.g. Ten Commandments and Quoran. Natural law. This is based on internal dictates of reason.The role of the sense of justice, fairness, and righteousness in a man and not by divine revelation. It is the reasonable basis of state law. Moral Law. The totality of the norms of good and right conduct growing out of the collective sense of right and wrong of every community. Physical Law. The uniformities of actions and orders of sequence which are the physical phenomena that we sense and feel.

3. State Law. It is promulgated and enforced by the state. Constitution. The fundamental law or supreme law or the highest law of the land because it is promulgated by the people themselves, binding all the citizens and a gencies of the government. Legislation. This pertains to enactment of laws by a competent authority. Acts passed are called enacted law or statute law. The Legislation includes ordinances enacted by Local G overnment Units. Judicial decisions or jurisprudence. These are cases decided by the Supreme Court with finality. Courts interpret the law and constitution. Custom. These are habits and practices which through long and uninterrupted usage have become practiced and approved by society as binding rules of conduct. Ignorantia Legis Neminem Excusat. Latin maxim for “Ignorance of the Law Excuses No one.”

4. Civil Code of the Philippines The Law on Obligations and Contracts (Book IV) is found in Republic Act No. 382, otherwise known as the Civil Code of the Philippines. Civil law refers to the Civil Code. Below is Book IV scope of discussion: Title I- Articles 1156-1304: Obligations Title II-Articles 1305-1422: Contracts Title III- Articles 1423-1430:Natural Obligations

5. Article 1156. An obligation is a juridical necessity to give, to do or not to do. An obligation is derived from a Latin word Obligatio which means tying or binding. The three (3) types of obligations under the Civil Code are: a. Civil obligations b. Natural Obligations c. Moral Obligations

6. Obligation, Right, and Wrong Distinguished

7. Four (4) Essential Requisites of an Obligation: 1) Passive Subject (debtor/obligor). The party who has the duty-bound to perform the obligation. 2) Active Subject (creditor/obligee). The party who has the right to demand the performance of the obligation. 3) Object or Prestation (subject-matter). The conduct required to be observed by the debtor i.e. the giving, doing, or not doing. 4) Juridical/Legal Tie (efficient cause). That binds or connects the parties to the obligation. Determined by knowing the source of the obligation [Art. 1157].

8. Meaning of Juridical Necessity. The aggrieved party may seek court reliefs to enforce the fulfillment of the obligation or, in default thereof, the economic value it represents, in case of noncompliance.

9. Kinds of obligations as to Subject-matter: i. Real Obligation (Obligation to Give). The subject-matter is a thing which the obligor/debtor must deliver. ii. Personal Obligation (Obligation to Do or Not to Do). A subject-matter is an act to be done or not to be done : a.Positive Personal Obligation. The obligation to do or render a service. b.Negative Personal Obligation. The obligation not to do or give.

10. Kinds of Prestation: To Give, To Do, and Not to Do Requisites for its validity: i. It must be physically and juridically possible; ii. It must be determinate or at least determinable according to pre-established elements or criteria; and iii. It must have a possible equivalent in money or pecuniary value.

11. Article 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts.

12. Articles 1158 to1162 specify the general principles regarding the sources of obligations in Art. 1157. * Obligations are not presumed by law. To be demandable, they must be set forth in the law. * Principle of Compliance in Good faith. Agreements have the binding force of law, and so the parties must comply in good faith. * Art. 100 of Revised Penal Code . Every person criminally liable is also civilly liable.

13. Civil liability may be: a. Restitution [restoration to a former state e.g. return]; b. Reparation of damage cause; and c. Indemnification of damages as a consequence of the crime.

14. Article 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. Quasi- contract Definition [ibid]. It is called as such as it is not properly a contract at all. There is no consent as it is supplied by a fiction of law [Presumptive Consent]. The law presumes that the parties entered into an agreement although they have not done so, to prevent injustice or unjust enrichment of a person at the expense of another.

15. Kinds of Primary Quasi-contracts: a. Negotiorum Gestio- The voluntary management of affairs or property of another; the management of or interference with the business or affairs of another without authority. b. Solutio Indebiti- a juridical relation created when s omething is received when there is no right to demand it AND was unduly delivered through mistake. *Other Quasi-contracts are governed by Article 2164 to 2175. Please refer to these for further elucidation.

16. Article 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws. Quasi-delict An act or omission by a person which causes damage to another [ there being a cause and effect connection between damage and act/omission] in his person, property, or rights giving rise to an obligation to pay for the damage done, there being fault or negligence but no pre-existing contractual relation exists between the parties [Article 2176].

17. Thank you!