Contract Law Chapter 1

General Provisions of Obligations

• Obligation Defined: A juridical necessity to give, do, or refrain from doing something, enforceable by law.
• Obligor and Obligee: The obligor is the person who must fulfill the obligation, while the obligee is the person entitled to the benefit.
• Enforceability: If an obligation is breached, the obligee can seek legal remedies.

Types of Obligations

• Sanction Perspective:

  • Civil Obligation: Enforceable in court; non-fulfillment leads to judicial action.
  • Natural Obligation: Cannot be enforced, but voluntary payments can be retained (e.g., debts paid even if the obligation is prescribed).
  • Moral Obligation: Based on conscience or ethos; cannot be legally enforced but may hold moral weight.

• Subject Matter Perspective:

  • Real Obligation: Concerned with the duty to give something.
  • Personal Obligation: Involves actions to do or refrain from doing (e.g., home maintenance or avoiding nuisance).

• Affirmative and Negative Obligations:

  • Positive Obligation: Involves acting or giving.
  • Negative Obligation: Involves refraining from action.

• Persons Involved:

  • Unilateral Obligation: Only one party is required to act (e.g., one person owes money).
  • Bilateral Obligation: Both parties are required to act, can be reciprocal (mutual dependence) or non-reciprocal (independent performances).

Elements of Obligation

• Active Subject: The creditor or obligee who demands performance.
• Passive Subject: The debtor or obligor who must fulfill the obligation.
• Prestation: Refers to the specific action required (to give, to do, or not to do).
• Efficient Cause: The legal connection that binds the obligation.
• Causa: The reason the obligation exists, also known as causa debendi.

Prestation Details

• Prestation Types:

  • To Give: Delivering an item (e.g., in sale, donation).
  • To Do: Performing work or services (e.g., professional contracts).
  • Not To Do: Avoiding specific actions (e.g., adhering to regulations).

• Requisites for Valid Prestation:

  • Must be licit (lawful).
  • Must be possible (not impossible).
  • Must be determinable (specifically identified).
  • Must have pecuniary value.

Injury and Damage

• Injury: A wrongful act or omission causing harm to another.
• Damage: The outcome of the injury, encompassing loss or harm.

Sources of Obligation

• Law (Obligation ex lege): Imposed directly by law, cannot be presumed.
• Contracts (Obligation ex contractu): Derive from agreements and mutual consent, enforceable in good faith.
• Additional Sources:
  • Quasi-contracts.
  • Acts or omissions punishable by law.
  • Quasi-delicts, which can create liability for damages.