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1. Obligations
&
Contracts
ATTY. CIRO P. DELA CRUZ, RN, JD

2. CONTRACT
• It is a meeting of minds between two (2) persons
whereby one binds himself, with respect to the
other, to give something or to render some
service. (Art. 1305, NCC)

3. Essential Requisites of Contracts
(1) Consent of the contracting parties
(2) Object certain which is the subject matter of the
contract
(3) Cause of the obligation which is established (Art.
1318, NCC)

5. Consent
• Consent signifies the concurrence of the minds of the
contracting parties with respect to the object and the
cause which shall constitute the contract.
• It signifies the meeting of the offer and the acceptance
upon the thing and the cause which are to constitute
the contract. (Art. 1319, NCC)

6. Elements of Consent
• Consent must be manifested by the concurrence of the
offer and the acceptance;
• Contracting parties must possess the necessary legal
capacity;
• Consent must be intelligent, free, spontaneous, and
real.

7. Object
• The thing, right, or service which is the subject matter
of the obligation which is created or established.

8. Requisites of Object
• Should be within the commerce of men;
• Should be real or possible;
• Should be licit;
• Should be determinate;

9. Cause
• It is the essential reason which moves the contracting parties
to enter into the contract.
• “why” of the contract

10. When contracts are perfected?
• There is a perfected contract from the moment that
there is a manifestation of the concurrence between the
offer and the acceptance with respect to the object and
the cause which shall constitute the contract. (Art.
1319, par. 1, Civil Code)

11. OBLIGATION
• An obligation is a juridical necessity to give, to do or
not to do.

12. Sources of Obligation
1) Law
2) Contracts
3) Quasi-contracts
4) Acts or omissions punished by law;
5) Quasi-delicts

13. Essential Requisites of an Obligation
• (1) A juridical or legal tie;
• (2) An active subject;
• (3) A passive subject;
• (4) The fact, prestation or service which constitutes the
object of obligation

14. Modes of Extinguishing Obligations
• Payment or performance
• Loss of the thing due
• Condonation or remission of the debt
• Confusion or merger of the rights of the creditor and
the debtor
• Compensation

15. • Novation
• Annulment
• Rescission
• Fulfillment of a resolutory condition
• Prescription

16. Thank you for listening.
Have a good day!