Before Classes Started Deck Flashcards
according to Article 1156, what is an obligation
An obligation is a juridical necessity to give, to or do, not to do
The term obligation is derived from the Latin word _________
which means a “tying” or “binding.”
obligatio
another term for obligation?
tie of law or juridical bond by by virtue of one being bound in favor of another to render something
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[gpt]
the term “tie of law” and “juridical bond” essentially refer to the legal relationship or connection created by an obligation.
what is the meaning of juridical necessity?
obligation is a juridical necessity such that non-compliance may justify calling upon the courts to enforce its fulfillment and absent of the fulfilment, the economic value the obligation represents
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[book]
Obligation is a juridical necessity because in case of non-compliance,
the courts of justice may be called upon to enforce its fulfillment or, in
default thereof, the economic value that it represents.
[gpt]
if someone does not fulfill their obligation, the courts may step in to enforce it or, if necessary, ensure that the economic value tied to the obligation is realized. The term “in default thereof” underscores the idea that the legal system can intervene when obligations are not met.
If enforcement of the obligation itself is not feasible, the court may award the obligee with monetary compensation, representing the economic value associated with the obligation.
the debtor may also be made liable for________, which represent the
sum of money given as a compensation for the injury or harm suffered by the creditor or obligee (he who has the right to the performance of the obligation) for the violation of his rights.
damages
If obligations were not made enforceable, then people can disregard them with impunity (exemption from punishment).
If an obligation cannot be enforced, it may be only a _____________.
natural obligation
=============
ex of natural obligation
Now, consider a situation where Party A voluntarily supports Party B financially during a difficult time, even though there is no legal contract or obligation requiring Party A to do so. In this case, Party B does not have a legal right of action to force Party A to continue providing financial support. However, based on principles of equity and natural law, Party A may feel a moral or ethical duty to continue the support voluntarily. If Party A stops providing support, Party B cannot legally compel them to continue, but there may be a sense of moral obligation.
Obligations which give to the creditor or obligee a right of action in courts of justice to enforce their performance are known as ___________
civil obligations
what are the essential requisites of an obligation?
LB.
- passive subject
- active subject
- object/prestation
- juridical or legal tie
A. 1156
===================
An obligation as defi ned in Article 1156 is constituted upon the
concurrence of the four (4) essential elements thereof, namely:
(1) A passive subject (called debtor or obligor) or the person who is
bound to the fulfi llment of the obligation; he who has a duty;
(2) An active subject (called creditor or obligee) or the person who
is entitled to demand the fulfillment of the obligation; he who has a
right;
(3) Object or prestation (subject matter of the obligation) or the conduct required to be observed by the debtor. It may consist in giving,
doing, or not doing. (see Art. 1232.) Without the prestation, there is
nothing to perform. In bilateral obligations (see Art. 1191.), the parties
are reciprocally debtors and creditors; and
(4) A juridical or legal tie (also called effi cient cause) or that which
binds or connects the parties to the obligation. The tie in an obligation
can easily be determined by knowing the source of the obligation. (Art.
1157.)
what are the forms of obligation?
- Generally, the law does not require a specific form in obligations (Art. 1356)
- Obligations arising from Article 1157 do NOT have form at all
[GPT]
contracts are generally valid regardless of the form they take, as long as they meet the essential requirements for contract formation.
State Article 1157:
Art. 1157.
Obligations arise from:
law
contracts
quasi-contracts
acts or omissions punished by law; and
quasi-delicts
__ is the act or performance which the law will enforce.
___ is the power which a person has
under the law, to demand from another any prestation
___ or (_______) is an act or omission of one party in violation of the legal right or rights of another, causing injury to the latter
Essential Elements of Cause of Action
- Right given by law
- Obligation to follow to respect that right
- Act or Omission violating that right
[book]
(a) a legal right in favor of a person (creditor/plaintiff) by whatever means and under whatever law it arises or is created;
(b) a correlative legal obligation on the part of another (debtor/defendant) to respect or not to violate said right; and
(c) an act or omission in breach or violation of said right by the defendant with consequential injury or damage to the plaintiff for which he may maintain an action for the recovery of damages or other appropriate relief.
what happens if any of the element is absent?
LB
the complaint may be dismissed on the ground of failure to state a cause of action
San Lorenzo Village Assoc. Inc. V. Court of Appeals
Uy v. Evangelista
when does a cause of action arise?
when the last element occur, act or omission in violation of right, or when a right has been transgressed.
Cause of Action
VS.
Right of Action
COA
- governed by procedural law
ROA
- governed by substantive law
[book]
The right of action springs from the cause of action, but does not accrue until all the facts which constitute the cause of action have occurred
[GPT]
The right of action is dependent on the completion of all the elements that make up the cause of action.
In practice, when a person has a cause of action (e.g., their legal right is violated), they have the right of action, enabling them to bring the matter to court. The right of action arises from the existence of a valid cause of action.
S rejected or cancelled a contract to sell his property even before the arrival of the period in the exercise of the option to buy by the purchaser who has already made a downpayment.
Facts: S and B entered into a contract to sell, whereby B, after making
a downpayment, was given the option to pay the balance of the purchase
price of a parcel of land. Later, S “rejected the contract to sell’’ even before the arrival of the period for the exercise of said option on the ground that the terms and conditions of the contract are grossly disadvantageous and highly prejudicial to his interest. S sent two (2) checks to B in an apparent effort to return the downpayment.
S contends that the complaint was prematurely fi led because at the
time of the institution of the complaint, B has yet to exercise his option under the “Option of Buyer’’ clause of the contract.
Issue: Has B a cause of action against S for prematurity?
Yes. B has a cause of action against S
All elements of a COA is present here. One, B had the right to exercise his option to buy as it was within the period to exercuse such. Two, the contract between S and B is legally binding thus obliged. Three, S violated that right by cancelling/rejecting the contract prematurely.
[book]
Held: Yes. (1) All the elements of a cause of action are present. — First,
there is a legal right in favor of B, i.e., the right to complete the payment
of the purchase price should he choose to do so; there is an obligation
on the part of S to sell the subject property exclusively to B upon full
payment of the purchase price; and there was a breach of S’s obligation to
sell the property, when S rejected the contract to sell even before B could
exercise his option to buy notwithstanding that he had already made a downpayment.
Was the rejection of S of the contract lawfully done?
No.
S did not cancel the contract judicially or by notarial act. His mere attempts to return B’s down payment does not constitute a defense and is such act is of no moment.
[book]
S rejected contract to sell in no uncertain terms. — The fact that the
rejection or cancellation of the contract by S was not made judicially or by notarial act (see Art. 1592.) is of no moment. It is enough for purposes
of determining the existence of a cause of action that S has declared in
no uncertain terms his refusal to be bound by the contract to sell. Such
declaration, coupled with S’s act of returning B’s down payment, clearly
indicates S’s rejection of the contract to sell. (Leberman Realty Corporation
vs. Typingco)
what is the cause of action based upon a written contract?
the COA of a written contract is from the breach and not the commencement of the contract. It should be brought within 10 years from the accrual of the right of action
[book]
Actions based upon a written contract should be brought within 10
years from the time the right of action accrues. (Art. 1144.) The accrual refers to the cause of action. Accordingly, an action based on a contract accrues only when an actual breach or violation thereof occurs. (China Banking Corp. vs. Court of Appeals, 461 SCRA 162 [2005]; see Art. 1169.) Therefore, the period of prescription commences, not from the date of execution of the contract but from the occurrence of the breach.
In an action to rescind a contract of sale on installment basis, for non-payment, the cause of action is
LB
the last unpaid installment
Nabus v CA
Where an overdraft agreement stipulates that the obligation is payable on demand, the breach starts?
LB
overdraft - An overdraft is a financial arrangement where a bank allows an account holder to withdraw or borrow more money than is actually available in the account, up to a certain limit. It’s essentially a form of short-term loan, often used for covering temporary deficits in funds
breach starts only from the time of the demand and is not satisfied
Elido v. CA
In a contract of loan with real estate mortgage, whereby the creditor could unilaterally increase the interest rate, where the creditor foreclosed the mortgage when the debtor failed to pay the loan,
the cause of action for the annulment of the foreclosure sale is?
the COA for debtor’s annulment of the foreclosure sale is NOT the failure to pay but from the time he was aware of the unilateral increase interest
[book]
should be counted from the date the debtor discovered the increased interest rate (Banco Filipino Savings & Mortgage Bank vs. Court of Appeals
Where the agreement to buy and sell was conditioned upon the conduct of a preliminary survey of the land to verify, whether it contained the area stated in the tax declaration, the right of action for specific performance arose when?
LB
[book]
arose only when the plaintiff discovered the completion of the survey. (Cole vs. Gregorio,
Jane has been employed by XYZ Corporation for the past three years. During her tenure, she often worked overtime hours, which were not compensated. Jane believes that she is entitled to unpaid overtime pay for the past two years.
In January, Jane formally approached her supervisor, Mr. Smith, and submitted a written request for the payment of her unpaid overtime. Mr. Smith acknowledged the request but did not provide a clear response.
In September, Jane received a letter from XYZ Corporation’s HR department, stating that after a thorough review, the company has decided not to grant her request for unpaid overtime pay.
when did the cause of action accrue?
the cause of action accrue when the HR gave a definite denial to the claim of Jane.
It did not accrue from the date Jane submitted a written request for payment
[book]
With respect to money claims arising from a contract of employment, which would prescribe in three (3) years from the time the cause of action accrued, the cause of action would arise from the date the employer made a definite denial of the employee’s claim, for prior to such denial, it is deemed that the issues had not yet been joined because the employee could have still been reinstated (Serrano vs. Court of Appeals)
In an action for reformation of a contract, where the plaintiff alleged, among others, that the contract was one-sided in favor of the defendant, and that certain events had made the arrangement inequitable, the cause of action is?
LB
when the contract appeared disadvantageous
Naga Telephone Co v CA
What is the major factor in determining COA in products sold? (a) in case of short deliveries, the cause of action will arise only from when? (b)
LB
a - nature of product sold
b - only from discovery with certainty
Pilipinas Shell Petroleum Corp v John Bordment
__________ is the illegal invasion of a legal right; it is the wrongful act or omission which causes loss or harm to another
injury
__________ is the loss, hurt, or harm which results from the thereof
damage
____ denote the **sum of money **recoverable as amends for the wrongful act or omission
damages
differentiate injury from damages
injury is the legal wrong to be redressed while damages is the compensatory aspect of the damage that came from the injury
Injury is the legal wrong to be redressed, while damages are the recompense or compensation awarded or recoverable for the damage or loss suffered. (Custodio vs. CA)
John, a tenant in an apartment building owned by ABC Realty, discovers that the building’s fire alarm system has not been functioning for several months, which is a clear violation of the safety regulations outlined in his lease agreement. Concerned for his safety and that of other tenants, John formally notifies ABC Realty of the issue, requesting immediate repairs to the fire alarm system.
Despite the notification, ABC Realty fails to take any action to address the non-functional fire alarm system. John believes that the non-compliance with safety regulations constitutes a wrongful violation of his legal right to a safe living environment as stipulated in the lease agreement.
is the wrongful violation of John’s legal right to a safe living environment sufficient on its own to entitle him to sue ABC Realty in a court of justice? what is the pecuniary proof in this scenario?
LB
No, the violation of John’s legal right is not sufficient on its own.
As a rule of actual/compensatory damages (Art. 2199), there must be, in addition, loss or damage caused to him by the violation of his right.
There is no pecuniary proof in this scenario however if a fire does occur, the proof would be medical expenses incurred, damages by receipts or bank statements.
what are violations or injuries that does not need pecuniary proof to be awarded
exemplary
moral
nominal
temperate
liquidated
He who uses his own right harms no one”
or more colloquially,
“One who makes use of his legal right does no injury.”
latin of that
Qui jure suo utitur mullum damnum facit
If damage results from a person’s exercising his legal rights, it is (damage without injury)
latin
damnum absque injuria
Acts of importer contesting forfeiture, delay in the delivery of goods to highest bidder.
Facts: X imported certain goods. The Collector of Customs declared
the goods forfeited in favor of the government and ordered the sale
thereof at public auction. The bid of Y was approved and the goods were
awarded to him.
Under the law, X has the right to have the decision of the Collector
of Customs reviewed by the Commissioner of Customs, and from the decision of the latter, to appeal to the Court of Tax Appeals (Secs. 2313,
402, Tariff and Customs Code.), and from the latter’s decision, to the Supreme Court. X will be prejudiced if the sale is not set aside. (see Art.
1397.)
Issue: Is X liable to Y for damages from the consequent delay in the
delivery of the goods?
LB
no. x is not liable to y’s delay because x’s exercise of his right to have the decision reviewed is qui JURE suo utitur mullum damnum facit
the delay is a result to x’s exercise of such right therefore does not make him liable.
Auyong Hian v CA
[book]
Held: Such delay is an incident to the exercise by X of his right to
contest the forfeiture and the sale of his goods. (see Auyong Hian vs. Court
of Appeals, supra.)
[gpt]
The court’s decision is based on the understanding that the delay is considered an incident to X’s exercise of his right to contest the forfeiture and the sale of his goods.
