GROUP 1
Cabaña, Cielo
Ariño,
z
Jenny Rose
Paclebare, Sarah Joy
Rosario, Jane
Talja, Mark Divine
Tagapulot, Ed Venzur
Neri, Jovannie
Article
z 1156. An obligation is a juridical
necessity to give, to do or not to do.
Juridical necessity –
) refers to legal obligation or
compulsion.
Under this Article, the obligation being defined is a legal
obligation as opposed to other obligations, such as moral,
ethical, spiritual obligations.
The main difference between a legal obligation and these
other forms of obligations is that a legal obligation can be
enforced via legal processes and/or through competent
authorities.
Elements of an obligation
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1. Vinculum juris or juridical tie – refers to “the
efficient cause established by the various sources of
obligations.
2. Object – refers to “the prestation or conduct,
required to be observed (to give, to do or not to do).”
Prestation – is ”the object of the contract; i.e., it is the
conduct (to give, to do or not to do) required of the
parties.”
A. Obligation to do or not do
z
Obligations to do have as their object a prestation consisting of a
performance of a certain activity which, in turn, cannot be exacted without
exercising violence against the person of the debtor. Accordingly, the
debtor’s failure to fulfill the prestation gives rise to the creditor’s right to
obtain from the latter’s assets the satisfaction of the money value of the
prestation.
B. Obligation to deliver
While an obligation “to give” is a prestation which consists in the
delivery of a movable or an immovable thing in order to create a real
right, or for the use of the recipient, or for its simple possession, or
in order to return it to its owner.
3.) Subject—persons
z
– refer to the parties, “who,
viewed from the demandability of the obligation,
are the active (obligee) and the passive (obligor)
subjects. (Asuncion v. CA [1994], supra.)
A. The “active subject” – refers to the person
who has the right to demand the performance of an
obligation against another person.
B. The “passive subject” – refers to the person
who is under an obligation to give, to do or not to
do, in favor of another person.
z
Sources of obligations
Article 1157. Obligations arise from:
(1) Law
(2) Contracts
(3) Quasi-contracts
(4) Acts or omissions punished by law
(5) Quasi-delicts
1. Law –z refers to a body of rules that regulate conduct within a
territory or jurisdiction.
Laws include:
1) 1987 Constitution,
2) Statutes or legislations,
3) Jurisprudence or Supreme Court Decisions, and
4) Implementing rules and regulations
2. Contracts – refers to “a meeting of minds between two
persons whereby one binds himself, with respect to the other, to
give something or to render some service
z Six essential elements Of
contracts:
• Offer
• Acceptance
• Awareness
• Consideration
• Capacity
• Legality
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A.)OFFER
All contracts start with an offer.One party requires something
from the other. The other party has the resources to fulfil it for
an exchange in value. This results in ‘the offer’, which defines
the responsibilities of each party.
B.)Acceptance
The second element of a contract is acceptance. The
definition of contract acceptance has long been disputed,
but formally, a contract is considered to have been
accepted when it has been signed.
C.)Awareness
z
For a contract to be legally binding, both parties must know
that they are entering into a new agreement. Sometimes
termed a meeting of the minds, the parties must come
together, recognise that the contract exists and agree to be
bound by the contractual obligations.
D.)Consideration
The purpose of a contract is based on what it provides. For
contractual purposes, contracts are not considered binding
unless something of value is exchanged between the parties.
Property, services, and insurance are all considered
contractual considerations.
E.)Capacity
z
Contracts can be daunting, especially when signing on
behalf of a company. That’s why only parties that can
demonstrate legal capacity before they sign enter a new
contract. Legal capacity is when the parties indicate that
they understand the contract’s obligations, terms, and
consequences before they sign
F.)Legality
All contracts are subject to the laws of the jurisdiction in
which they are signed and must abide by these to justify
sufficient legality.
Contract Classification
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With action - Contact action refers to any oral or written contract with a
direct action resulting from purchasing goods or services between parties.
Written contract - A written contract is a document that defines what the
parties can and cannot do within their commercial relationship. These
legally binding contracts establish a set of agreed terms & conditions and
an approved set of obligations.
Oral contract - Today, action is only taken in business if there is some
form of a written agreement. But an oral contract (or a verbal contract) is
still valid with some exceptions, such as agreements involving
guarantees. The critical difference between a written and an oral contract
is highlighted by how easy it is for a claimant to prove the contract’s
terms.
3. Quasi-contracts – refer to “licit and purely
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voluntary acts which create an obligation on
the part of the actor in favor of a third person,
and, at times, a reciprocal obligation between
the parties concerned.”
4. Acts or omissions punished by law –
refers to actions or failures to act that are
considered offenses under criminal law,
thereby subjecting individuals to legal
consequences.
2 principal of Quasi-contract
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Negotiorum Gestio:This occurs when someone
voluntarily manages the affairs or business of another
without the latter’s consent or knowledge, with the
expectation of reimbursement for expenses incurred.
Solutio Indebiti: This arises when something is
delivered or paid under a mistake, and the recipient is
obligated to return it or pay the value of what was
wrongly received.
z
5. Quasi-delicts – refers to the civil liability
resulting from damage caused by acts or
omissions, there being fault or negligence, and
there is no pre-existing contractual relation
between the parties.
NATURE
z AND EFFECTS OF OBLIGATION
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.
Indeterminate
z - thing one which refers only to a class or genus to
which it pertains and cannot be pointed out with particularity
EXAMPLES
(1) a Bulova calendar watch.
(2) a 2006 model Japanese car.
(3) a police dog
(4) a cavan of rice
(5) the sum of P10,000.00.
Duties of the obligor or debtor with respect to determinate specific
thing:
z
Determinate - Thing-one which can be particularly designated or
physically segregated from all others of the same class,
EXAMPLES
(1) The watch I am wearing.
(2) The car sold by X.
(3) My dog named “Terror.”
(4) The house at the corner of Rizal and Del Pilar Streets.
(5) The Toyota car with Plate No. AAV 344.
Duties of the obligor or debtor with
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respect to generic or indeterminate
thing:
1.To deliver the thing itself
GR: The debtor of a thing cannot compel the creditor to receive
different one, although the latter may be of the same value as, or
more valuable than which is due. (Civil Code. Art. 1244, par.1)
XPNS:
A. By agreement or consent, the debtor may deliver a different
thing or perform a different prestation in lieu of that stipulated
(either a Dation in Payment or Objective Novation)
B. Waiver of defect, the creditor with knowledge of defect accepts
the thing without protest or disposes it.
2. Preserve the Thing with Due Care
z
GR: 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.
(Civil Code, Art. 1163)
XPNS:
A.The law or stipulations of the parties require another standard of care.
B. Common Carriers In case of common carriers, which from the nature
of their business and for reasons of public policy, is bound to observe
extraordinary diligence in the vigilance over the goods and for the safety
of the passengers. Transported by them, according to all the
circumstances of each case.
C. Banks In case of banks, wherein the degree of
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diligence required is more than that of a good of a family,
where the fiduciary nature of their depositors is
concerned.
Diligence - the attention and care required of a person in
a given situation and is the opposite of negligence.
Kinds of Diligence
1. Simple Diligence
2. Extraordinary Diligence
3. Diligence of a Good Father of a Family
z
(Bonos Pater Familia)
- measure of prudence or activity as is properly expected from,
and ordinarily exercised by a reasonable and prudent man
under particular circumstances.
3. Deliver the Accessions and Accessories
GR: Obligation to give determinate thing includes that of
delivering all its accession and accessories, even though
they may not have been. Mentioned. (Civil Code. Art. 1166)
z
Accessories - are things joined to or included with the
principal thing for the latter’s embellishment. Better use, or
completion.
Accession - is the right by virtue of which the owner of a
thing becomes the owner of everything. Which is produced
thereby, or which is incorporated or attached thereto, either
naturally or artificially. The fruits of, or additions to, or
improvements upon, a thing (the principal).
z
4. To Deliver the Fruits
GR: The creditor has a right to the fruits of the thing from
the time the obligation to deliver it arises. However, there
is no real right until the same has been delivered to him.
Civil Code, Art. 1164, par.1)
XPN: Obligations arising from contracts, a stipulation as
regards the fruits shall govern. (CC, Art. 1306)
When an obligation to deliver
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arises:
A. If obligation is based on law, quasi-delict. Quasi-contract or crime, the
specific provisions of applicable law shall determine when the delivery
shall be effected; or
B. If obligation is based on contracts.
GR: All fruits shall pertain to the vendee from the constitution or perfection
of the obligation. (CC, Art. 1187)
XPNS:
I- Subject to a suspensive condition, it arises from the happening of the
condition:
II- If there is a contrary stipulation of the parties with respect to the time
when the thing or fruits shall be delivered.
