Meaning of law in general.
Law means any rule of action or any system of uniformity.
General divisions of law.
(1) Law (in the strict legal sense) which is promulgated and enforced by
the state; (state law) and
(2) Law (in the non-legal sense) which is not promulgated and enforced
by the state. (divine law, natural law, moral law and physical law)
Divine law.
Divine law is the law of religion and faith concerns itself with the concept of sin
(as contrasted with crime) and salvation.
Source: Promulgated by God – formally promulgated by God and
revealed of divulged to mankind by means of direct revelation.
(Ex. Ten Commandments.)
Sanction: Reward or punishment – lies in the assurance of certain
rewards or punishments in the present life or in the life to come.
Natural law
Natural law is a divine inspiration in man of the sense of justice, fairness, and
righteousness, not by divine revelation or formal promulgation, but by internal
dictates of reason alone.
Binding force: Natural law is ever present and binding on all men
everywhere and at all times.
(Knowledge of good and evil)
Compared to Divine Law – while Natural and Divine Law are very similar,
they are not, however, the same. Divine Law, as the law of religious faith, is
made known to man by means of direct revelation. On the other hand, natural
law is said to be impressed in man as the core of his higher self.
Moral law
Moral law is the totality of the norms of good and right conduct growing out of
the collective sense of right and wrong of every community.
Determination of what is right and wrong.
Sanction: There is no definite legal sanction for violation of purely moral
law.
Binding force: moral law is not absolute. It varies with the changing
times, conditions and convictions of the people. (Ex. Polygamy is considered
immoral (it is also a crime) in the Philippines, whereas it is allowed in some
parts of the world.
Physical law
“In the operation or course of nature, there are uniformities of actions and
orders of sequence which are the physical phenomena that we sense and feel.
They are known as the laws of physical science or physical law.”
State law
The kind of law, however, which particularly concerns us in the work is the state
law or the law that is promulgated and enforced by the state.
Other terms used – positive law, municipal law, civil law or imperative
law.
Binding force – as a rule of action, only state law in enforced by the state,
with the aid of its physical force, if necessary.
Concern of state law – The fields of state law are different from those of
divine law, natural law, and moral law. State law does not concern itself with
violations of the latter rules of action unless they also constitute violations of its
command.
Characteristics of Law
1. It is the rule of conduct.
2. It is obligatory.
3. It is promulgated by legitimate authority.
4. It is of common observance and benefit.
Sources of law
1. Constitution
2. Legislation
3. Administrative or executive orders, regulations, and rulings
4. Judicial decisions or jurisprudence
5. Custom
6. Other sources (principles of justice and equity, decisions of foreign
tribunals, opinions of textwriters, and religion.
Organization of Courts
1. Regular courts
Ex. One (1) Supreme Court, One (1) Court of Appeals, Regional Trial Court,
Metropolitan Trial Courts in Metropolitan areas, Municipal Trial Court in cities
or municipalities, Municipal Circuit Trial
1. Special courts (Ex. Special anti-graft court, the
Sandiganbayan.)
2. Quasi-judicial agencies (Ex. National Labor Relations Commission,
Securities and Exchange Commission, LTFRB)
Classifications of Law
(1) As to its purpose:
(a) substantive law
(b) adjective law
(2) As to its subject matter:
(a) Public law
Ex. Criminal law, International law, Constitutional law
(b) Private law
“The law of obligations and contracts is the body of rules which deals with the
nature and sources of obligations and the rights and duties arising from
agreements and the particular contracts.” Art 1307
Article 1156.
An obligation is a juridical necessity to give, to do or not to do.
General Provision
The term obligation is derived from the Latin word obligatio which means tying
or binding.
It is a tie or bond recognized by law by virtue of which one is bound in favor of
another to render something – and this may consist in giving a thing, doing a
certain act, or not doing a certain act.
Obligation is a juridical necessity because in case of noncompliance, the courts
of justice may be called upon by the aggrieved party to enforce its fulfillment or,
in default thereof, the economic value that it represents.
In a proper case, the debtor or obligator may also be made liable for damages,
which represents the sum of money given as a compensation for the injury or
harm suffered by the creditor or oblige for the violation of his rights.
In other words, the debtor must comply with his obligation whether he likes it
or not; otherwise, his failure will be visited with some harmful or undesirable
consequences.
An obligation may be civil or natural. Civil Obligation is based on a positive law
and gives right of action to compel their performance, while Natural
Obligation is based on natural law, but on equity and moral justice. Hence, it is
not enforceable by court action, but after voluntary performance of the debtor,
he can no longer recover what he has given.
Example: Romeo executed a promissory note in favor of Juliet for P50,000.
Romeo is the debtor (payor) while Juliet is the creditor (payee). If Romeo does
not pay on due date, Juliet can enforce the fulfillment of the obligation by court
action. If Juliet does not file a court action against Romeo within 10 years from
due date which is the prescriptive period for an action against a written
contract. Juliet loses the right to exact performance by court action. However, if
Romeo, out of his love for Juliet, voluntarily makes the payment to Juliet, Romeo
will no longer be allowed to recover what he has given as payment because
although the obligation has prescribed, in equity and moral justice, Romeo still
owed Juliet the amount of P50, 000.
Essential requisites of an obligation
1. Passive subject (debtor or obligor) – the person who is bound to the
fulfillment of the obligation.
2. Active subject (creditor or obligee) – the person who is entitled to
demand the fulfillment of the obligation.
3. Object or prestation (subject matter) – the conduct required to be
observed by the debtor.
4. Juridical or legal tie (efficient cause) – that which binds or connects the
parties to the obligation.
Example:
Under a building contract, X bound himself to build a house for Y for
P1,000,000.00
X – passive subject
Y – active subject
Building of the house – object/prestation
Agreement/contract – juridical tie
Form of Obligation
The form of an obligation refers to the manner in which an obligation is
manifested or incurred. It may be oral, or in writing, or partly oral and partly in
writing.
1. As a general rule, the law does not require any form in obligations
arising from contracts for their validity or binding force.
2. Obligations arising from other sources (Art. 1157.) do not have any
form at all.
Kinds of obligation according to the subject matter
1. Real obligation (obligation to give) is that in which the subject matter is a
thing which the obligor must deliver to the obligee.
Example:
X (seller) binds himself to deliver a piano to Y (buyer)
2. Personal obligation (obligation to do or not to do) is that in which the
subject matter is an act to be done or not to be done. There are two (2) kinds of
personal obligation:
(a) Positive personal obligation
Ex. X binds himself to repair the piano of Y.
(b) Negative personal obligation
Ex. X obliges himself not to build a fence on a certain portion of
his lot in favor of Y who is entitled to a right of way over said lot.
Art. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts
Sources of obligations
1. Law – when they are impose by the law itself.
Ex. Obligation to pay taxes; obligation to support one’s family.
2. Contracts – when they arise from the stipulation of the parties.
Ex. The obligation to repay a loan or indebtedness by virtue of an
agreement.
3. Quasi-contracts – when they arise from lawful,voluntary and unilateral acts
which are enforceable to the end that no one shall be enriched or benefited at
the expense of another.
Ex. The obligation to return money paid by mistake or which is not
due.
4. Crimes or acts or omissions punished by law. – when they arise from civil
liability which is the consequence of a criminal offense.
Ex. The obligation of a thief to return the car stolen by him; the duty of
a killer to indemnify the heirs of the victim.
5. Quasi-delicts or torts. – when they arise from damage caused to another
through an act or omission, there being fault or negligence, but no contractual
relation exists between the parties.
Ex. The obligation of the possessor of an animal to pay for the
damage which it may have caused.
Art. 1158. Obligations derived from law are not presumed. Only those expressly
determined in this Code or in special laws are demandable, and shall be
regulated by the precepts of the law which establishes them; and as to what not
been foreseen, by the provisions of this Book.
Art. 1159. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
Quasi-Contract – is that juridical relation resulting from lawful, voluntary and
unilateral acts by virtue of which the parties become bound to each other to the
end that no one will be unjustly enriched or benefited at the expense of
another.
Kinds of Quasi-contracts
1.) Negotiorum Gestio – is the voluntary management of the property or affairs
of another without the knowledge or consent of the latter.
2.) Solution Indebiti – is the juridical relation which is created when something is
received when there is no right to demand it and it as unduly delivered through
mistake.
Requisites of Solutio Indebiti
(a) There is no right to receive the thing delivered; and
(b) The thing was delivered through mistake.
Civil liability arising from crimes or delicts
Scope of civil liability
(1) restitution
(2) reparation for the damage caused; and
(3) Indemnification for consequential damages.
Obligations arising from quasi-delicts
Quasi-delict – is an act or omission by a person which causes damage to
another in his person, property, or rights giving rise to an obligation to pay for
the damage done, there being fault or negligence but there is no pre-existing
contractual relation between the parties.
Requisites of Quasi-delict
(1) The must be an act or omission;
(2) There must be fault or negligence;
(3) There must be damage caused;
(4) There must be a direct relation or connection of cause and effect
between the act or omission and the damage; and
(5) There is no pre-existing contractual relation between the parties.

Obligations and Contracts - Article 1156

  • 1.
    Meaning of lawin general. Law means any rule of action or any system of uniformity. General divisions of law. (1) Law (in the strict legal sense) which is promulgated and enforced by the state; (state law) and (2) Law (in the non-legal sense) which is not promulgated and enforced by the state. (divine law, natural law, moral law and physical law) Divine law. Divine law is the law of religion and faith concerns itself with the concept of sin (as contrasted with crime) and salvation. Source: Promulgated by God – formally promulgated by God and revealed of divulged to mankind by means of direct revelation. (Ex. Ten Commandments.) Sanction: Reward or punishment – lies in the assurance of certain rewards or punishments in the present life or in the life to come. Natural law Natural law is a divine inspiration in man of the sense of justice, fairness, and righteousness, not by divine revelation or formal promulgation, but by internal dictates of reason alone. Binding force: Natural law is ever present and binding on all men everywhere and at all times. (Knowledge of good and evil) Compared to Divine Law – while Natural and Divine Law are very similar, they are not, however, the same. Divine Law, as the law of religious faith, is made known to man by means of direct revelation. On the other hand, natural law is said to be impressed in man as the core of his higher self. Moral law Moral law is the totality of the norms of good and right conduct growing out of the collective sense of right and wrong of every community. Determination of what is right and wrong. Sanction: There is no definite legal sanction for violation of purely moral law. Binding force: moral law is not absolute. It varies with the changing times, conditions and convictions of the people. (Ex. Polygamy is considered immoral (it is also a crime) in the Philippines, whereas it is allowed in some parts of the world. Physical law
  • 2.
    “In the operationor course of nature, there are uniformities of actions and orders of sequence which are the physical phenomena that we sense and feel. They are known as the laws of physical science or physical law.” State law The kind of law, however, which particularly concerns us in the work is the state law or the law that is promulgated and enforced by the state. Other terms used – positive law, municipal law, civil law or imperative law. Binding force – as a rule of action, only state law in enforced by the state, with the aid of its physical force, if necessary. Concern of state law – The fields of state law are different from those of divine law, natural law, and moral law. State law does not concern itself with violations of the latter rules of action unless they also constitute violations of its command. Characteristics of Law 1. It is the rule of conduct. 2. It is obligatory. 3. It is promulgated by legitimate authority. 4. It is of common observance and benefit. Sources of law 1. Constitution 2. Legislation 3. Administrative or executive orders, regulations, and rulings 4. Judicial decisions or jurisprudence 5. Custom 6. Other sources (principles of justice and equity, decisions of foreign tribunals, opinions of textwriters, and religion. Organization of Courts 1. Regular courts Ex. One (1) Supreme Court, One (1) Court of Appeals, Regional Trial Court, Metropolitan Trial Courts in Metropolitan areas, Municipal Trial Court in cities or municipalities, Municipal Circuit Trial 1. Special courts (Ex. Special anti-graft court, the Sandiganbayan.)
  • 3.
    2. Quasi-judicial agencies(Ex. National Labor Relations Commission, Securities and Exchange Commission, LTFRB) Classifications of Law (1) As to its purpose: (a) substantive law (b) adjective law (2) As to its subject matter: (a) Public law Ex. Criminal law, International law, Constitutional law (b) Private law “The law of obligations and contracts is the body of rules which deals with the nature and sources of obligations and the rights and duties arising from agreements and the particular contracts.” Art 1307 Article 1156. An obligation is a juridical necessity to give, to do or not to do. General Provision The term obligation is derived from the Latin word obligatio which means tying or binding. It is a tie or bond recognized by law by virtue of which one is bound in favor of another to render something – and this may consist in giving a thing, doing a certain act, or not doing a certain act. Obligation is a juridical necessity because in case of noncompliance, the courts of justice may be called upon by the aggrieved party to enforce its fulfillment or, in default thereof, the economic value that it represents. In a proper case, the debtor or obligator may also be made liable for damages, which represents the sum of money given as a compensation for the injury or harm suffered by the creditor or oblige for the violation of his rights. In other words, the debtor must comply with his obligation whether he likes it or not; otherwise, his failure will be visited with some harmful or undesirable consequences. An obligation may be civil or natural. Civil Obligation is based on a positive law and gives right of action to compel their performance, while Natural
  • 4.
    Obligation is basedon natural law, but on equity and moral justice. Hence, it is not enforceable by court action, but after voluntary performance of the debtor, he can no longer recover what he has given. Example: Romeo executed a promissory note in favor of Juliet for P50,000. Romeo is the debtor (payor) while Juliet is the creditor (payee). If Romeo does not pay on due date, Juliet can enforce the fulfillment of the obligation by court action. If Juliet does not file a court action against Romeo within 10 years from due date which is the prescriptive period for an action against a written contract. Juliet loses the right to exact performance by court action. However, if Romeo, out of his love for Juliet, voluntarily makes the payment to Juliet, Romeo will no longer be allowed to recover what he has given as payment because although the obligation has prescribed, in equity and moral justice, Romeo still owed Juliet the amount of P50, 000. Essential requisites of an obligation 1. Passive subject (debtor or obligor) – the person who is bound to the fulfillment of the obligation. 2. Active subject (creditor or obligee) – the person who is entitled to demand the fulfillment of the obligation. 3. Object or prestation (subject matter) – the conduct required to be observed by the debtor. 4. Juridical or legal tie (efficient cause) – that which binds or connects the parties to the obligation. Example: Under a building contract, X bound himself to build a house for Y for P1,000,000.00 X – passive subject Y – active subject Building of the house – object/prestation Agreement/contract – juridical tie Form of Obligation The form of an obligation refers to the manner in which an obligation is manifested or incurred. It may be oral, or in writing, or partly oral and partly in writing. 1. As a general rule, the law does not require any form in obligations arising from contracts for their validity or binding force.
  • 5.
    2. Obligations arisingfrom other sources (Art. 1157.) do not have any form at all. Kinds of obligation according to the subject matter 1. Real obligation (obligation to give) is that in which the subject matter is a thing which the obligor must deliver to the obligee. Example: X (seller) binds himself to deliver a piano to Y (buyer) 2. Personal obligation (obligation to do or not to do) is that in which the subject matter is an act to be done or not to be done. There are two (2) kinds of personal obligation: (a) Positive personal obligation Ex. X binds himself to repair the piano of Y. (b) Negative personal obligation Ex. X obliges himself not to build a fence on a certain portion of his lot in favor of Y who is entitled to a right of way over said lot. Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts Sources of obligations 1. Law – when they are impose by the law itself. Ex. Obligation to pay taxes; obligation to support one’s family. 2. Contracts – when they arise from the stipulation of the parties. Ex. The obligation to repay a loan or indebtedness by virtue of an agreement. 3. Quasi-contracts – when they arise from lawful,voluntary and unilateral acts which are enforceable to the end that no one shall be enriched or benefited at the expense of another. Ex. The obligation to return money paid by mistake or which is not due. 4. Crimes or acts or omissions punished by law. – when they arise from civil liability which is the consequence of a criminal offense. Ex. The obligation of a thief to return the car stolen by him; the duty of a killer to indemnify the heirs of the victim.
  • 6.
    5. Quasi-delicts ortorts. – when they arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties. Ex. The obligation of the possessor of an animal to pay for the damage which it may have caused. Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what not been foreseen, by the provisions of this Book. Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Quasi-Contract – is that juridical relation resulting from lawful, voluntary and unilateral acts by virtue of which the parties become bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another. Kinds of Quasi-contracts 1.) Negotiorum Gestio – is the voluntary management of the property or affairs of another without the knowledge or consent of the latter. 2.) Solution Indebiti – is the juridical relation which is created when something is received when there is no right to demand it and it as unduly delivered through mistake. Requisites of Solutio Indebiti (a) There is no right to receive the thing delivered; and (b) The thing was delivered through mistake. Civil liability arising from crimes or delicts Scope of civil liability (1) restitution (2) reparation for the damage caused; and (3) Indemnification for consequential damages. Obligations arising from quasi-delicts Quasi-delict – is an act or omission by a person which causes damage to another in his person, property, or rights giving rise to an obligation to pay for
  • 7.
    the damage done,there being fault or negligence but there is no pre-existing contractual relation between the parties. Requisites of Quasi-delict (1) The must be an act or omission; (2) There must be fault or negligence; (3) There must be damage caused; (4) There must be a direct relation or connection of cause and effect between the act or omission and the damage; and (5) There is no pre-existing contractual relation between the parties.