Define the following by using your own words:
1. Define the following words such as Obligations, Duty differentiate each and give
example of Obligation and Duty.
a. Obligations
Article 1156 of the New Civil Code defines obligation as a juridical
necessity to give, to do or not to do. Basically, 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, which is the giving, doing, or
not doing, and in case of breach, may demand satisfaction from the assets of the
latter. Obligation is a legal relation established between one party and another,
whereby the latter is bound to the fulfillment of a prestation which the former may
demand of him. In other words, it is a tie of law or a juridical bond by virtue of
which one is bound in favor of another to render something, and this may consist
in giving a thing, doing a certain act, or not doing a certain act.
EXAMPLE:
Under a building contract, X bound himself to construct a house for Y for
P10,000,000.
In this case, the building of the house is the object and the source of the
obligation. It creates juridical tie between X and Y. X is obliged to construct a
house for Y. After construction, Y will then be obliged to pay X P10,000,000.
b. Duty
It is the existing legal or moral responsibility arising from necessity to
require a person to give, to do or not to do. It is different from an obligation in a
sense that parties to an obligation signed themselves in order to perform a
certain duty. On the other hand, a duty is mandated upon a person regardless of
the presence or absence of an agreement.
EXAMPLE:
A person’s duty to observe good faith in dealing with other people and to
be mindful of his action to prevent negligence.
2. Who are entitled to Contract, explain each by using your own words.
Article 1311 provides that Contracts take effect only between the parties,
their assigns and heirs, except in case where the rights and obligations arising from
the contract are not transmissible by their nature, or by stipulation or by provision of
law. The heir is not liable beyond the value of the property he received from the
decedent.
If a contract should contain some stipulation in favor of a third person, he
may demand its fulfillment provided he communicated his acceptance to the obligor
before its revocation.
As a general rule, contracts take effect only between the parties, their
assigns and heirs. This means that only the parties, their assigns and heirs can
have rights and obligations under a contract. Furthermore, a real party in-interest
can also be entitled to a contract. Lastly, a third person, or a person who is a
stranger to the contract can also be entitled to a contract as provided by the second
paragraph of Article 1311.
3. What are the requisites of a “Voidable Contract”.
According to Article 1390 of the Civil Code, there are instances where a
contract is voidable or annullable even though there may have been no damage to
the contracting parties. These instances are as follows:
a. Those where one of the parties is incapable of giving consent to a contract;
b. Those where the consent is vitiated by mistake, violence, intimidation, undue
influence or fraud.
Voidable Contracts are those which possess all the essential requisites of a
valid contract but one of the parties is legally incapable of giving consent, or
consent is vitiated by mistake, violence, intimidation, undue influence, or fraud.
4. What are the elements of an “Ideal Contract” enumerate and explain.
Elements of contract may be classified into three classes. These classes are
Essential Elements, Natural Elements and Accidental Elements.
a. Essential Elements may be subdivided into two categories. Common essential
elements and special essential elements are the two categories under essential
elements of a contract.
Common elements are those present in all contracts, namely, consent,
object and cause. On the other hand, special elements are those not common to
all contracts or those which must be present only in or peculiar to certain
specified contract regarding form, subject matter or cause.
b. Natural Elements
Those that are presumed to exist in certain contracts unless the contrary is
expressly stipulated by the parties, like warranty against eviction or warranty
against hidden defects in sale.
c. Accidental Elements
The particular stipulations, clauses, terms, or conditions established by the
parties in their contract (Art.1306.), for the purpose of clarifying, restricting, or
modifying its legal effects, like conditions, period, interest, penalty, etc., and,
therefore, they exist only when they are expressly provided by the parties.
