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2nd Year Midterm Exams > BUSINESS LAW > Flashcards

BUSINESS LAW Flashcards

1
Q

An obligation is a juridical necessity to
give, to do or not to do

A

Article 1156

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2
Q

a tie of law which binds us, according to the rules of our civil
law, to render something

A

Justinian institute

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3
Q

a legal relation between one person and another, who is bound to the
fulfillment of a prestation which the former may demand of him

A

Manresa

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4
Q

the juridical necessity to comply with a prestation

A

Sanchez Roman

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5
Q

a juridical necessity to give, to do or not to do

A

Civil code of the Philippines

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6
Q

a juridical relation whereby a person (called creditor) may
demand from another (called the debtor) the observance of a determinate conduct,
and in case of breach, may obtain satisfaction from the assets of the letter.

A

Justice J.B.L. Reyes

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7
Q

Implies the existence of legal sanctions that may be
imposed upon the debtor in case of breach of the
obligation. The creditor may seek appropriate reliefs from
the courts in case of such breach.

A

Juridical Necessity

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8
Q

What are the essential elements of Obligations

A
  1. Juridical tie (vinculum juris)
  2. Object or Prestation
  3. Active Subject (Creditor)
  4. Passive Subject (Debtor
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9
Q

that which essentially binds the parties to
the object of the obligation, by virtue of which the
debtor is bound to the creditor to fulfill a determinate
prestation.

A

Juridical Tie

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10
Q

always a prestation,
which is defined as the particular conduct required to be
observed by the debtor and which can be demanded by
the creditor.

A

Object of the obligation

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11
Q

has the right to demand.

A

Active Subject

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12
Q

is bound to perform

A

Passive subject

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13
Q

What are the three obligations in article 1156?

A

• To give
• To do
• Not to do

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14
Q

What are the basic kinds of obligation

A

Moral
•Natural (Art. 1423 CC)
•Civil/Juridical (Art. 1156 CC)

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15
Q

What are the sources of obligation?

A

(1) Law;
(2) Contracts;
(3) Quasi-Contracts
(4) Acts or omissions punished by law (Delict); and
(5) Quasi-delicts.

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16
Q

a legal provision that states that obligations that arise from the law are not automatically assumed to exist. Only obligations that are explicitly stated in the law, either in the Civil Code or in special laws, can be legally enforced. These obligations will be governed by the specific laws that establish them, and if there are any issues that are not covered by these laws, they will be governed by the general provisions of the Civil Code.

A

Article 1158

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17
Q

a meeting of minds between
two persons whereby one binds himself,
with respect to the other, to give
something or to render some service.

A

Contracts

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18
Q

means that when you make a contract with someone, the things you agreed to in the contract are like a law that both of you have to follow. You have to be honest and fair in keeping the promises you made in the contract, just like how you have to follow the law.

A

Article 1159

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19
Q

Certain lawful, voluntary and unilateral acts
give rise to the juridical relation of this to the end that no one shall be
unjustly enriched or benefited at the
expense of another.

A

Quasi-contracts

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20
Q

Whoever voluntarily takes charge of the agency or management of the
business or property of another, without any power from the latter, is
obliged to continue the same until the termination of the affair and its
incidents, or to require the person concerned to substitute him, if the
owner is in a position to do so. This juridical relation does not arise in
either of these instances:
(1) When the property or business is not neglected or abandoned;
(2)If in fact the manager has been tacitly authorized by the owner

A

Negotiorum Gestio

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21
Q

If something is received when there is no right
to demand it, and it was unduly delivered
through mistake, the obligation to return it
arises.

A

Solutio Indebiti

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22
Q

What are the other Quasi-contracts?

A

•Giving of legal support and payment of funeral expenses
• Acts of a good Samaritan
• Third person pays debt or taxes of another
• Acts in consideration of general welfare

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23
Q

Article 1161. Civil obligations arising from criminal
offenses shall be governed by the penal laws, subject
to the provisions of Article 2177, and of the
pertinent provisions of Chapter 2, Preliminary Title,
on Human Relations, and of Title XVIII of this
Book, regulating damages.

A

Delict or crime

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24
Q

, also known as an “accidental fault” or “culpa aquiliana,” is a legal concept that refers to an act or omission that causes damage to another person, even in the absence of a contract or pre-existing relationship between the parties. In other words, it is a type of civil wrong that is committed by someone who acted negligently or carelessly, causing harm to another person, but without any pre-existing legal obligation or contract between them. Examples of quasi-delicts include car accidents caused by reckless driving, slips and falls in public places due to lack of maintenance, or any other type of accidental harm caused by someone’s negligence.

A

Quasi-delict

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25
Q

What are the elements of Quasi Delict

A
  1. Damage suffered by the plaintiff;
  2. Fault or negligence of the defendant; and
  3. Connection of cause and effect between the fault or
    negligence of defendant and the damage incurred by the
    plaintiff.
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26
Q

What is the difference between a delict and quasi delict

A

(1) Crimes affect the public interest, while quasi-delicts are only of private
concerns;
(2) That, consequently, the Penal Code punishes or corrects the criminal act,
while the Civil Code, by means of of indemnification merely repairs the
damage; and
(3) That delicts are not as broad as quasi-delicts, because the former are
punished only if there is a penal law clearly covering them, while the quasidelicts, include all acts in which any kind of fault or negligence intervenes.

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27
Q

means that a person cannot recover damages twice for the same act or omission of another person. Even though a person may seek compensation in both a civil and criminal case, they cannot recover damages twice for the same harm or damage caused by the other person’s actions or negligence.

A

Article 2177

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28
Q

states that if a person’s own negligence is the main reason they got hurt, they cannot recover damages. But if their negligence only contributed to the injury, and the main reason was the other party’s lack of care, the person can still get damages. However, the amount of damages may be reduced by the courts.

A

Article 2179

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29
Q

says that people are responsible not only for their own actions but also for the actions of those under their care or control. For example, parents are responsible for any harm caused by their minor children, and business owners are responsible for any harm caused by their employees while working. It’s a way of making sure that people are accountable for any harm caused by those who are under their care or control.

A

Article 2180

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30
Q

states that if a person pays for damages caused by their dependents (such as children) or employees, they have the right to recover the amount they paid from those who caused the damage.

This article is important because it allows people who have paid for damages caused by someone else to recover their losses from the actual wrongdoer, rather than having to bear the cost themselves.

A

Article 2181

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31
Q

If the minor or insane person causing damage has no
parents or guardian, the minor or insane person shall be answerable with
his own property in an action against him where a guardian ad litem shall
be appointed.

A

Article 2182

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32
Q

The possessor of an animal or whoever may make use
of the same is responsible for the damage which it may cause, although it
may escape or be lost. This responsibility shall cease only in case the
damage should come from force majeure or from the fault of the person
who has suffered damage.

A

Article 2183

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33
Q

What are the kinds of obligation

A
  1. Civil or natural
  2. Real or Personal
  3. Pure, conditional or with a term
  4. Conjunctive or distributive, and the distributive may be alternative or
    facultative
  5. Joint or solidary
  6. Divisible or indivisible
  7. With a penal clause
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34
Q

This
give a right of action to compel their performance. This, not being based on positive law but on equity
and natural law, do not grant a right of action to enforce their
performance, but after voluntary fulfillment by the obligor,
they authorize the retention of what has been delivered or
rendered by reason thereof. Some natural obligations are set
forth in the following articles.

A

Civil or Natural

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35
Q

One which gives a right of action to compel its
performance. It is one which
provides for a legal sanction in case of its breach.
Hench, the creditor is authorized to invoke the
power of the State, through the courts, either to
compel its performance or to demand any other
alternative relief.

A

Civil Obligation

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36
Q

Which does not grant a right of action to
enforce its performance, but after voluntary
fulfillment by the debtor, it authorizes the
retention of what has been delivered or
rendered by reason thereof.

A

Natural Obligation

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37
Q

may either be generic
(indeterminate) or specific (determinate)
depending on the nature of the thing to
be delivered.

A

Real obligation

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38
Q

an obligation to deliver a certain quantity or amount of goods, without specifying the specific items to be delivered.
Ex. I will deliver a horse to Mark for the payment of my debt last month.

A

Generic

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39
Q

obligation consists in the delivery of a specific or determinate thing
Ex. I will deliver a 2 year old white horse to Mark for the payment of my debt

A

Specific or determine obligation

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40
Q

an
obligation “to do”

A

Positive Personal Obligation

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41
Q

an
obligation “not to do”

A

Negative Personal Obligation

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42
Q

not only when it
is not performed, but also when it is performed
in contravention of its tenor.
If the nonfulfillment of the obligation is not due to the
debtor’s fault but by reason of a fortuitous event,
the debtor, as a rule, is not liable.

A

Breach of Obligation

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43
Q

is the non-fulfillment of the obligation with
respect to time

A

Delay

44
Q

delay in the fulfillment of an obligation

A

Mora Solvendi

45
Q

delay on the part of both parties because
neither has completed their part in their reciprocal obligations

A

Compensatio Morae

46
Q

delay on the part of the obligee in accepting the
performance of the obligation by the obligor.

A

Mora Accipiendi

47
Q

the obligation is already exists and this is
committed only during its performance.

A

Fraud

48
Q

impossibility of performing
the obligations may provide the debtor with a legal
excuse for his non-performance, if the same occurs
without his fault and prior to him incurring delay

A

Fortuitous event

49
Q

wrongful or
negligent act or omission which creates a vinculum juris and gives
rise to an obligation between two persons not formally bound by
any other obligation;

A

Culpa Aquiliana/Culpa extra contractual

50
Q

refers to the fault or negligence incident in the
performance of an obligation which already existed, and which
increases the liability from such already existing obligation.

A

Culpa Contractual

51
Q

an obligation that is not subject to any conditions or restrictions. It means that the debtor must fulfill the obligation, and the creditor has the right to demand that the obligation be fulfilled, without any limitations.

A

Pure Obligation

52
Q

That which must necessarily come,
although it may not be known when.

A

Term

53
Q

What are the Classification of a Term:

A

Suspensive
Resulutory

54
Q

Acquisitions of rights, as well as the
extinguishment or loss of those already
acquired, shall depend upon the happening of
the event that constitutes the condition.
“uncertain event upon which an obligation or provision
is made to depend.”

A

Conditional Obligation

55
Q

its fulfillment depends upon the exclusive will of
either of the parties to the juridical relation

A

Protestative

56
Q

if its fulfillment depends upon chance or the will of
a 3rd person

A

Casual

57
Q

if its fulfillment is dependent partly upon the will of
either of the parties and partly upon chance or will of a third
person.

A

Mixed

58
Q

those which require the happening of an
event;

A

Positive

59
Q

the condition that some event will not
happen at a determinate time shall render the obligation
effective from the moment the time indicated has elapsed,
or if it has become evident that the event cannot occur.

A

Negative

60
Q

According to as whether by its
nature, by agreement or under the
law, the condition can be performed
by parts.

A

Divisible and indivisible

61
Q

According to as whether, when there
are several, all of them or only one
must be performed. If all are required
to be performed, it is this

A

Conjunctive and alternative

62
Q

According as to whether a
condition is stated or merely
inferred. If stated, it is this;
if merely inferred, it is this.

A

Express and implied

63
Q

if the date is fixed or when the date of the happening of the event
is known;

A

Definite

64
Q

if the event is sure to happen but the exact timing of its
happening in not know;

A

Indefinite

65
Q

depending on its source, or that which is fixed by law

A

Legal

66
Q

that which is fixed by the parties;

A

Conventional

67
Q

fixed by the courts

A

Juridical

68
Q

is that whose
consequences or effects are subjected in one way or
another to the expiration of said term or period. A
term or period is defined as a space of time which,
exerting an influence in an obligation as a result of
a juridical act either suspends its demandability or
produces its extinguishment.

A

Obligation with a period

69
Q

There is more than one object (prestation),
and the fulfillment of one is sufficient,
determined by the choice of the debtor
who generally has the right of the election

A

Alternative Obligation

70
Q

Whether the right of choice pertains to the
debtor or to the creditor, he has no right to
choose those prestations which are
impossible, unlawful or which could not
have been the object of the obligation.

A

Limitations of the right of choice

71
Q

The choice becomes irrevocable and binding upon he who made it
and he will not thereafter be permitted to renounce his choice and
take an alternative which was at first open to him. Since both parties
are bound by the choice made by the party (who is entitled to exercise
the right of choice), the debtor has no other recourse except to
perform the chosen prestation. As a consequence, the obligation
ceases to be alternative and is converted into a pure or simple one.

A

Effect of the choice

72
Q

The effects of the loss of one, some or all
of the prestations will depend on who has
the right of choice and the reason for the
loss of the same.
•Loss is due to fortuitous
event
•Loss is due to debtor’s fault
•Loss is due to creditor’s fault
•Loss after Election

A

Effect of loss of Object (Prestation) in
Alternative Obligation

73
Q

one where only one
prestation has been agreed upon but the
obligor may render another in substitution.

A

Facultative Obligation

74
Q

An obligation where there is a concurrence of several
creditors, or of several debtors, or of several creditors or
debtors, by virtue of which each of the creditors has a
right to demand, and each of the debtors is bound to
render, compliance with his proportionate part of the
prestation which constitutes the object of the obligation.

A

Joint Obligation

75
Q

Art. 1210 CC, expressly clarifies that the indivisibility
of an obligation does not necessarily give rise to
solidarity nor does solidarity of itself imply
indivisibility. Solidarity refers to the vinculum or legal
of the obligations. On the other hand, indivisibility
refers to the prestation or object of the obligation.

A

Joint Indivisible Obligations

76
Q

every debtor will become liable to perform the
entire obligation. Hence in the event of the nonperformance of the obligation, the creditor may proceed
against any debtor for the payment of the indemnity,
incliding the price of the thing or the value of the service
constituting the obligation and the damages, even if the
latter was ready and willing to perform.

A

Indivisible Solidary Obligation

77
Q

The general rule is that when there is a concurrence of
two or more debtors under a single obligation, the
obligation is presumed to be joint. The law further
provides that to consider the obligation as solidary in
nature, it must expressly be stated as such, or the law or
the nature of the obligation itself must require solidary.

A

Solidary Obligation

78
Q

when the
obligation expressly so states. However, it
is not necessary that the agreement should
use precisely the word ”solidary” for an
obligation to be so.

A

Solidary Liability by Express Stipulation

79
Q

The fact that the obligation is indivisible does
not necessarily gives rise to solidarily give rise
to solidarity in the absence of express and
indubitable terms characterizing the obligation
as solidary

A

Nature of Obligation Requires Solidarity

80
Q

is one that exists only among the
creditors

A

Active Solidary

81
Q

that which exists only among the
debtors.

A

Passive solidary

82
Q

that which exists among the creditors
and debtors.

A

Mixed solidary

83
Q

the essence of active solidarity. In
active solidarity, every creditor is considered an
agent of the others and he has the power to claim
and exercise the rights of all of them in relation to
their debtor or debtors. As a consequence, each
creditor is entitled to demand the whole obligation

A

Mutual Agency

84
Q

Art.1213 CC, prohibits the assignment if rights of a
solidary creditor without the consent of the others. The
rule is premised on the existence of mutual agency
among the creditors, which implies mutual confidence in
them, in addition to the power of every solidary creditor
to cause the extinguishment of the debtor’s obligation
without the knowledge and consent of the others.

A

Effect of Unauthorized Assignment of
Right

85
Q

What are the effects between Solidary Creditors and
Debtors

A

)The debtors may pay any one of the solidary creditors; but if
any demand judicial or extrajudicial, has been made by one of
hem, payment should be made to him;
(2)Any solidary creditor may extinguish the obligation by novation,
compensation, confusion, remission or any other mode of
extinguishment; but the creditor who may have executed any of
theses acts shall be liable to the others for the share in the
obligation corresponding to them.

86
Q

In view of the mutual agency existing among
the solidary creditors, their debtor or debtors
may pay any one of them.

A

Effect of demand by solidary creditor

87
Q

when an old obligation is terminated by the creation of a new
obligation that takes the place of the former; it is merely modificatory when the
old obligation subsists to the extent it remains compatible with the amendatory
agreement.

A

Novation

88
Q

a mode of extinguishment to the concurrent
amount the debts of persons who in their own right are creditors and debtors of
each other.

A

Compensation and merger

89
Q

an act of liberality on the part of the creditor who
receives no price or equivalent thereof, renounces the enforcement of the
obligation, which is extinguished in its entirety or in that part or aspect of the
same to which the remission refers.

A

Remission and condonation

90
Q

Is that which has for its object a thing or
an act which in its delivery or performance
is susceptible of division.

A

Divisible obligation

91
Q

A kind of division when the things separated do not form a homogenous
whole, such as an inheritance.

A

Qualitative

92
Q

When a homogenous whole is divided either by
separating into parts (like in the case of movables) or by fixing their
limits (like in the case of immovables).

A

Quantitative

93
Q

When the thing is not materially divided but an ideal or fractional
portion is given to each person as in the case of co-ownership.

A

Ideal

94
Q

Which does not admit of division, or even
though it does, neither the nature of
contract nor the intention of the parties
permits it to be fulfilled by parts.

A

Indivisible obligation

95
Q

Determining whether the obligation is
Divisible or Indivisible

A

the nature of the object
(2)The provisions of the law affecting the prestations
(3)The will or the intention of the parties, either express
or tacit
(4)The end or purpose of the obligation

96
Q

when the nature of the object does not
admit its division.

A

Absolute

97
Q

although the prestation is susceptible of
division, it is considered an integral, indivisible
amount.

A

Relative

98
Q

shall substitute
the indemnity for damages and the payment of interests in case
of noncompliance, if there is no stipulation to the contrary.
Nevertheless, damages shall be paid if the obligor refuses to
pay the penalty or is guilty of fraud in the fulfillment of the
obligation.

A

Obligations with penal clause

99
Q

Those that can stand alone independently
of the existence of other obligations and
have their independent and individual
purpose.

A

Principal obligation

100
Q

Those attached to a principal obligation in
order to complete the same or take their
place in case of breach

A

Accessory obligation

101
Q

What is the concept of penal clause

A

to provide for liquidated damages
(2)To strengthen the coercive force of the obligation
by the threat of greater responsibility in the event
of breach.

102
Q

What are the penalty and damages

A

1)When there is a stipulation to that effect;
(2)When the obligor having failed to comply with the principal
obligation also refuses to pay the penalty, in which case the
creditor is entitled to interest in the amount of the penalty,
in accordance to Art. 2209;
(3)When the obligor is guilty of fraud in the fulfillment of the
obligation.

103
Q

What are the penal clause demandable

A

(1)the total non-fulfillment of the obligation or the
defective fulfillment is chargeable to the fault of
the debtor; and
(2)That the penalty may be enforced in accordance
with the provisions of the law.

104
Q

A penal clause constitutes an obligation, although
accessory; while a condition is not. Thus, a penalty may
be demanded in case of non-fulfillment of the principal
obligation, and even with it alone; while a condition can
never be demanded to be fulfilled, but whether it happens
or not, only the obligation which it affects may be
demanded.

A

Penalty Distinguished From Condition

105
Q

In case of total non-fulfillment
of the principal obligation, the rule is that the debtor
cannot exempt himself from the performance of the
principal obligation by paying the penalty.

A

Right of debtor

106
Q

in case of total nonfulfillment of the obligation, the creditor cannot, as
a general rule, demand the fulfillment of the
principal obligation and the satisfaction of the
penalty at the same time.

A

Right of the creditor

2nd Year Midterm Exams (6 decks)

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