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  • CONTRACTSattyjdc
  •  A juridical necessity to give, to do or not to doObligation(Article 1156, NCC)attyjdc
  • 1. ACTIVE SUBJECTElements3. EFFICIENT CAUSE – The possessor of a right; in whose favor theobligation is constituted.- obligee/creditor2. PASSIVE SUBJECT - obligor/debtorThe one who must fulfill the obligationvinculum/juridical tieThe reason why the obligation exists; the force thatbinds the parties4. OBJECT/PRESTATION - subject matterMay consist in giving a thing, doing or not doinga certain actattyjdc
  •  According to Sanction:Kinds of Obligationa. Civil Obligation – defined by Art. 1156, andsanction is juridical process.b. Natural Obligation – based on natural law and themotivation in fulfilling the obligation is goodconscience.c. Moral Obligation – similar with natural obligationswhich are based on good conscience and moralvalues.attyjdc
  •  According to the Subject MatterKinds of Obligationa. Real Obligation – the obligation to give.b. Personal Obligation – the obligation to do or not to do. According to Affirmativeness/Negativenessa. Positive/Affirmative Obligation – the obligation togive or to do.b. Negative Obligation – the obligation not to do.attyjdc
  •  According to Persons ObligedKinds of Obligationa. Unilateral – where only one of the parties is bound.b. Bilateral – where both parties are bound.i. Reciprocal – where performance of a partydepends on the performance of the other.ii. Non-reciprocal – where performance of a partydoes not depend on the performance of theother.attyjdc
  • Art. 1157. Obligations arise from:Sources of Obligation(1) Law;(2) Contracts;(3) Quasi-contracts;(4) Acts or omissions punished by law; and(5) Quasi-delicts.attyjdc
  •  Law - Obligations Ex LegeSources of ObligationArt. 1158. Obligations derived from law are not presumed.Only those expressly determined in this Code or in speciallaws are demandable, and shall be regulated by theprecepts of the law which establishes them; and as to whathas not been foreseen, by the provisions of this Book.Examples of obligations specifically stated by the laws:- Duty to pay taxes (NIRC)- Duty to support spouse and children (Art. 291, NCC)Obligations must clearly be set forth in the law.attyjdc
  •  Contracts – Obligations Ex ContractSources of ObligationArt. 1159. Obligations arising from contractshave the force of law between the contractingparties and should be complied with in goodfaith.Neither party may unilaterally and upon his own exclusive volition,escape his obligations under the contract, unless the other party assentedthereto, or unless for causes sufficient in law and pronounced adequate bya competent tribunalDoes it mean that laws are inferior to contracts?attyjdc
  • DISTINCTIONObligation BilateralContract One of the sources ofobligations Unilateral or Bilateral Comes from five sources Not all obligations arecontractual All contracts areobligatoryattyjdc
  • Sources of Obligation Quasi-ContractsArt. 1160. Obligations derived from quasi-contracts shall be subject to the provisionsof Chapter 1, Title XVII, of this Book.- Juridical relation resulting from certainlawful, voluntary and unilateral acts whichhas for its end that no one be unjustly enrichedor benefitted at the expense of another. (Art.2142, NCC) attyjdc
  • A. Negotiorum GestioTwo Kinds of Quasi-Contract- unauthorized managementOccurs when a person voluntarily takes charge of anabandoned/neglected property or business withoutthe consent or authority of an able owner. (Art. 2144,NCC)Ex. Robert Queen, a rich man, is the owner of a sari-sari store. Suddenly, hewent to the province for unknown reasons. Walter Steele opened the storeto operate the business and replenish its stocks. Robert, upon returning,should reimburse Walter of the expenses he incurred.Even without ratification, owner should be liable forobligations incurred in his interest, and must reimburse themanager for necessary and useful expenses, and damages thelatter suffered. (Art. 2150, NCC)attyjdc
  • Two Kinds of Quasi-ContractB. Solutio Indebiti - undue paymentWhen something is received when there is no rightto demand it, and it was unduly delivered throughmistake. (Art. 2154, NCC)The recipient has the obligation to return it. (Art. 2154, NCC)Ex. Tommy Merlyn borrowed P100 from Oliver Queen. Tommy paid OliverP110 to include interest. However, since the interest was not agreed uponby the parties, Oliver should return P10, representing the interest, toTommy.attyjdc
  • Art. 2164. When, without the knowledge of the person obliged to givesupport, it is given by a stranger, the latter shall have a right to claim thesame from the former, unless it appears that he gave it out of piety andwithout intention of being repaid.Other Quasi-ContractsArt. 2165. When funeral expenses are borne by a third person,without the knowledge of those relatives who were obliged to givesupport to the deceased, said relatives shall reimburse the thirdperson, should the latter claim reimbursement.Art. 2167. When through an accident or other cause a person is injuredor becomes seriously ill, and he is treated or helped while he is not in acondition to give consent to a contract, he shall be liable to pay for theservices of the physician or other person aiding him, unless the servicehas been rendered out of pure generosity.attyjdc
  • Art. 2168. When during a fire, flood, storm, or other calamity, property issaved from destruction by another person without the knowledge of theowner, the latter is bound to pay the former just compensation.Other Quasi-ContractsArt. 2174. When in a small community a nationality of the inhabitantsof age decide upon a measure for protection against lawlessness, fire,flood, storm or other calamity, any one who objects to the plan andrefuses to contribute to the expenses but is benefited by the project asexecuted shall be liable to pay his share of said expenses.Art. 2175. Any person who is constrained to pay the taxes of anothershall be entitled to reimbursement from the latter.attyjdc
  • Sources of Obligation Acts or omissions punished by law –Obligations Ex Delicto or Ex MaleficioArt. 1161. Civil obligations arising from criminal offenses shallbe governed by the penal laws, subject to the provisions ofArticle 2177, and of the pertinent provisions of Chapter2, Preliminary Title, on Human Relations, and of Title XVIII ofthis Book, regulating damages.Every person criminally liable for a felony is also civillyliable. (Art. 100, RPC) Restitution, Reparation of the damage caused; and Indemnification for consequential damagesattyjdc
  • Kind of Proof Needed:DelictCriminal Action: Proof beyond reasonable doubtCivil Action: Preponderance of evidenceEx. Malcolm Merlyn was convicted and found guilty of estafa when hepretended to be Oliver to gain the green arrow.Will Malcolm remain civilly liable if he was found not guilty by the court?What are the civil obligations of Malcolm?attyjdc
  • Sources of Obligation Quasi-Delicts or Culpa AquilianaA fault or negligence which causes damages toanother, there being no pre-existing contractualrelations between the partiesNegligence:Omission of that diligence which is required by thecircumstances of person, place and time.Failure to observe, for the protection of the interests of another person,that degree of care, precaution, and vigilance which the circumstancesjustly demand, whereby such other person suffers injury.attyjdc
  • attyjdc Read Article Nos. 1163 to 1169, The New Civil Code EQUATORIAL REALTY DEVELOPMENT, Inc., vs. MAYFAIR THEATER, Inc., G.R.No. 133879. November 21, 2001 (insofar as the fruits are concerned) JIMMY CO, doing business under the name & style DRAGON METALMANUFACTURING vs. COURT OF APPEALS and BROADWAY MOTOR SALESCORPORATION G.R. No. 124922. June 22, 1998 (insofar as the delay in delivery isconcerned) Cebu Autometic Motors, Inc. and Tirso Uytengsu III, vs. General MillingCorporation, G.R. No. 151168, August 2010 (insofar as demand is concerned) Prepare for a short quiz as review of previous lesson.Assignment