Handout 4 Flashcards
An obligation is a juridical necessity to give, to do or not to do.
Article 1156.
the debtor is obliged to deliver the movable or immovable thing to the creditor. An example is the obligation to deliver the thing in sale, deposit, or donation.
obligation to give
All kinds of works or services, whether physical or mental is covered by the
obligation to do
means refraining from doing some acts like the obligations of a building proprietor to refrain from committing nuisance through noise or offensive odor, smoke, and heat.
obligation not to do
It is the one who is demanding the performance of the obligation. He is also called the creditor or obligee.
Active subject
It is the one bound to perform the prestation to give, to do or not to do. He is also called the debtor or obligor.
Passive subject
It is the subject matter of the obligation which has an economic value or susceptible ot pecuniary substitution in case o noncompliance.
Object or prestation
It is the vinculum that binds the contracting parties (e.g., sales contract; service contract).
Juridical or legal tie
there is an intent to evade the normal fulfillment of the obligation and to cause damage.
Fraud.
the lack of diligence, or carelessness.
Negligence.
As a general rule, those obliged to deliver or to do something incur in delay from the time the stipulated period for the fulfillment of the obligation has lapsed, and the obligee judicially or extrajudicially demands the fulfillment of their obligation.
Delay
enumerates the sources of obligation, namely: law; contracts; quasi-contracts; delicts or acts or of omissions punishable by law; and quasi-delicts.
Article 1157
The obligation of a party to fulfill an obligation arises from the law itself. An example of this is the taxpayer’s duty to pay taxes.
Law
This is the duty of the party to fulfill his undertaking in a contract. An example of this is the duty of the party to pay for the excess number of persons attending a catering event as stipulated in the contract.
Contracts
It refers to a lawful, voluntary, and unilateral act based on the maxim that no one shall enrich himself at the expense of another.
Quasi-contracts
It refers to obligations arising from crimes, which are governed by the provisions of the Revised Penal Code (i.e., restitution, reparation of the damage caused, indemnification of consequential damages; and by the provisions of the Civil Code on damages (i.e., moral, exemplary, and nominal damages). An example of this is the duty of the culprit to pay actual damages for causing the death of a person.
Delicts
is any act or omission which causes damage to another, there being fault or negligence, and there being no preexisting contractual relationship between the parties.
Quasi-delicts
provides that every person with an obligation 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.
Article 1163
Obligations are extinguished by payment or performance; loss of the thing due; condonation or remission of the debt; confusion or merger of the rights of the creditor and debtor; compensation; and
novation.
Article 1231
In a restaurant, the obligation of the guest to the management who served him a sumptuous food shall be extinguished upon
payment
An obligation arising from a contract may also be extinguished upon the
loss of the thing due, provided there is no fault or negligence on the part of the obligor
explained the meaning of the term “loss.” It states that it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered.”
Article 1189
also known as force majeure, is a term that exempts an obligor from liability.
These are extraordinary events not foreseeable or avoidable, events that could not be foreseen, or which, though foreseen, were inevitable (Article 1174).
fortuitous event
pertains to the act of liberty on the part of the creditor wherein s/he forgives or remits a debt. Even if the proprietor is indebted to his supplier of beef and chicken, the obligation shall be extinguished if the supplier will gratuitously give the amount in issue to the proprietor as an advance gift for the latter’s continuous patronage to its supplies.
Condonation or remission
provides that the obligation is extinguished from the time the characters of creditor and debtor are merged in the same person.
Article 1275
as means of extinguishing an obligation is the offsetting of the respective obligations of two persons who stand as principal creditors and debtors of each other, resulting in the extinguishment of their obligations to their concurrent amount.
Compensation
pertains to the change or modification of an obligation by another, resulting in the extinguishment of an obligation.
Novation
extinguishes obligations that are purely personal such as partnership and agency.
Death
A contract is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.
Article 1305
is defined as one in which almost all the provisions have been drafted by only one party, usually a corporation or insurance company.
contract of adhesion
Its validity and performance cannot be left to the will of only one of the parties.
Mutuality of Contracts
The parties are free to stipulate terms and provisions in a contract, as long as these are not contrary to law, morals, good customs, public order, and public policy.
Autonomy of Contracts
Contracts are binding only upon the parties and their successors-in-interest.
Exception: Stipulation in favor of a third person as in a beneficiary of an insurance policy.
Relativity of Contracts
Contracts are perfected by mere consent, and no form is prescribed by law for their validity. An exception to this are real contracts such as loan or deposit, and contracts covered by the Statute of Frauds.
Consensuality of Contracts.
it constitutes the law as between the parties who are compelled to perform under the threat of being sued in the courts of law.
Obligatory Force of Contracts.
It is the preliminary stage or process for the formation of the contract. It includes the bargaining of the subject of obligation and the consideration or cause.
Generation.
It is the birth of the contract.
Perfection.
It is the fulfillment of the purpose for which the contract was constituted.
Consummation
are found in Articles 1380 to 1422 of the Civil Code.
Defective Contracts
It is a valid contract because it contains all of the essential requisites prescribed by law, but is defective due to injury or damage to either
Rescissible Contract.
It is a contract that is valid until annulled. The essential elements for validity are present, but the element of consent is vitiated either by lack of legal capacity of one of the contracting parties, or by mistake, violence, intimidation, undue influence, or fraud.
Voidable Contract
It is a contract that cannot be enforced by a proper action in court unless it is ratified, because they are either entered into without or in excess of authority or they do not comply with the Statute of Frauds or both of the contracting parties do not possess the required legal capacity.
Unenforceable Contract.
It is considered to be inexistent by operation of law, thus confers no right to any party.
Void Contract
