Persons and Contracts Concepts

Persons and Contracts Concepts

• People can be natural or artificial and have legal rights and obligations.
• Birth determines personality, and a conceived child is considered born for favorable purposes if later born alive.

Natural Persons

• Visible products of procreation with corporeal appearance.
• Since slavery’s end, all human beings are natural persons without needing legal declaration.

Juridical Persons (Juris Dicere)

• Invisible legal fictions existing only in contemplation of law.
• Includes the State, its political subdivisions, corporations, institutions for public interest created by law, and private corporations/partnerships with juridical personality.

Personality

• Embodiment of qualities providing legal rights and responsibilities, determined by birth.

Kinds of Personality

• Presumptive/Provisional: Applies to a child in the womb.
• Actual: Applies to a living person.
• Artificial: Applies after death.

Status

• Individual's position relative to others; a state or condition of affairs or standing before the law, including political citizenship and civil status in relation to others.

Characteristics of Status

• Not subject to commerce.
• Imprescriptible
• Not subject to compromise.
• Right to claim it cannot be renounced.
• Rights arising from it can't be exercised by creditors.

Juridical Capacity (Article 37)

• Fitness to be subject to legal relations.
• Inherent in natural persons, lost only through death, but acquired at birth.
• Provisional personality grants support and donation rights to unborn children under Article 40.

Capacity to Act

• Power to perform acts with legal effect.
• Not inherent, attained or conferred, can be lost through valid legal causes, not just death.

Restrictions to Capacity to Act (Article 38)

• Restrictions such as minority, insanity, being deaf-mute, prodigality, and civil interdiction.
• Restrictions don't exempt incapacitated persons from obligations arising from acts or property relations.

Modifying or Limiting Capacity to Act (Article 39)

• Factors include age, insanity, imbecility, being deaf-mute, penalty, prodigality, family relations, alienage, insolvency, trusteeship, etc.
• Governed by codes, court rules, and special laws. Not limited by religious or political beliefs.

Difference Between Juridical Capacity & Capacity to Act

• Juridical capacity inherent in humans, capacity to act acquired.
• Juridical capacity is the capacity to be subject of legal relations, capacity to act is the ability to perform legal acts.
• Juridical capacity can exist without capacity to act, but vice versa is not true.
• Juridical capacity lost only through death, capacity to act through various grounds.

Emancipation (Article 236, Family Code)

• Terminates parental authority, making a child qualified and responsible for civil acts, except in special cases.
• Freedom from parental authority both over person and property, but some instances require parental/guardian involvement, like marriage settlements.

Emancipation Takes Place (Art 397)

• Marriage of the minor.
• Attainment of majority.
• Concession of parent with authority.
• Recording agreement in Civil Register between parent and at least 18-year-old minor.
• Irrevocable under Article 401 of the Civil Code.

Vicarious Liability

• Responsibility of a superior for subordinate acts, or a third party with control over a violator's activities.

Death

• Cessation of life (total blood circulation stoppage and cessation of animal/vital functions).
• Civil interdiction or religious profession does not represent civil death but restricts capacity to act.

Effect of Death on Civil Personality (Article 42)

• Civil personality is extinguished by death.
• The law, contracts, and wills determine the effect of death on the deceased’s rights and obligations.

Instances of Effects of Death

• Dissolves marriage.
• Transmits successional rights from the moment of death.
• Dissolves a partnership.
• Permanently dissolves parental authority.
• Terminates community/conjugal partnership of gains.
• Terminates agency contracts.
• Terminates criminal liability.

Juridical Person

• An abstract entity formed for collective purposes, granted legal capacity for rights and obligations.
• Recognized by law, registered with SEC, and granted legal capacity.

Classes of Juridical Persons

• State and its political subdivisions.
• Juridical Persons for Public Purposes
• Juridical Persons for Private Purposes

How Juridical Persons Come Into Existence

• State: Exists with population, territory, government, and sovereignty.
• Juridical Persons for Public Purposes: Exist once constituted by law. Example: Red Cross under R.A. 10072.
• Juridical Persons for Private Purposes: Exist from SEC Certificate of Registration or upon partnership article execution, per R.A. No. 11232 (Revised Corporation Code).

Powers of Juridical Persons (Article 46)

• Acquires/possesses property, incurs obligations, and initiates civil/criminal actions within legal/organizational conformity.

Suing the State or Government

• Generally, a state cannot be sued, unless consent is given expressly or impliedly.
• Express consent occurs when special/general law provides it.
• Implied consent occurs when state enters a contract or initiates litigation, waiving immunity only in proprietary/private capacity, not sovereign/governmental capacity.
• Statutory waivers of state immunity are strictly construed.

Ultra Vires Acts

• Actions beyond legal power/authority or excessive use of corporate power.

Kinds of Ultravires Acts

• Those contrary to law are void.
• Those outside granted powers, not necessarily unauthorized by law.

Two Kinds of Dissolution

• Voluntary, involves submitting a petition for closure to the SEC.
• Involuntary, occurs if illegal acts are committed or involves quo warranto procedure.

Law

• Rule of action or system of uniformity and a set of conditions to which things conform.

Types of Law

• Divine law is a product of religion, the commands of a deity known through revelation.
• Moral law consists of societal/social norms regulating human activity, evolving with society, ethical in foundation, and not changing with time.
• Physical law followed by universal phenomena, involving observable constants and inevitable sequences.
• Natural law implies a higher order of precepts in the physical world regularity, conforming to human reason; principles from Grecian philosophers and adoptions by Catholic theologians connect conscience, love, and reason to commendable actions.

State Law

• Is promulgated by a State, positive law, consists of rules regulating human relations, and includes rule of conduct, justice, obligation, legitimate authority, and common good.

Sources of Law

• Constitution supreme law, outlining fundamental principles, structure, powers of government, and individual rights.
• Legislation involves laws from the Legislative branch with rights to create, alter, and repeal laws.
• Administration or Executive Orders, Regulations, and Ruling create rules passed to enforce law.
• Judicial Decisions/Jurisprudence court rulings in cases presented.
• Customs and Traditions govern when no law or statute is violated, proven as a fact, not contrary to law, done via repeated act uniformly, with judicial intent make social rule, and are society-acknowledged.

Classifications of Law

• Substantive Law defines rights and duties.
• Adjective Law outlines methods and processes to enforce Substantive Law.

As to Subject Matter

• Public Law governs relationships between individuals and the government.
• Private Law regulates relationships between private individuals or entities.

Civil Code

• A compilation of laws governing family and property relations in the Philippines; it was enacted in 1950.
• Covers persons, property ownership, acquiring ownership, and obligations and contracts.

Obligations (Article 1156)

• Juridical necessity to give, do, or not to do. Derived from Latin "obligatio," meaning "tying" or "binding."
• A tie of law/juridical bond binding one to another to render something.
• Manresa calls it a legal relation where one party is bound to fulfill a prestation demanded by the other.
• Civil obligation enforceable in courts, natural obligation based on equity/natural law, not enforceable but authorizes retention after voluntary fulfillment.
• Juridical necessity: Courts enforce compliance or economic value.

Forms of Obligations

• The manner in which an obligation is manifested (oral, writing, partly oral and partly writing).
• Law generally doesn't require form in contract obligations for validity or binding force.
• Obligations from other sources don't have any form at all.

Obligation, Right, and Wrong (Cause of Action)

• Obligation is the act or performance the law enforces.
• Right is the legal power to demand prestation.
• Wrong/cause of action is an act/omission violating another's legal rights, causing injury.

Existence of a Cause of Action

• A legal right exists in favor of a person.
• A correlative legal obligation exists on the part of another.
• Breach of said right by the defendant, causing injury to the plaintiff.
• All elements must be alleged in complaint.
• Exists if the allegations in the Complaint are sufficient.
• Arises where the last element occurs; substantive law rules differ.

Cause of Action upon a Written Contract.

• Actions should be brought within 10 years from accrual of right of action (actual breach/violation).
• Depends on facts of each case, like non-payment of last sale installment.

Injury, Damage, and Damages

• Injury: Illegal invasion of a legal right.
• Damage: Loss or harm from the injury.
• Damages: Sum recoverable for the wrongful act.
• Injury is the legal wrong, damages are the payment.

Kinds of Obligation According to Subject Matter

• Real, an obligation to give something.
• Personal, to do or not to do something (positive obligations to render service and negative obligations not to do something "not to give").

Article 1157 of the Civil Code

• Obligations arise from law, contracts, quasi-contracts, crimes, and quasi-delicts.

Sources of Obligations

• Law (imposed by law, such as taxes and family support).
• Contracts (arising from parties’ stipulations, such as repaying a loan).
• Quasi-contracts (lawful, voluntary, & unilateral acts preventing unjust enrichment), negotiorum gestio (voluntary management) and solutio indebiti (solution to debt).
• Crimes, civil liability from a criminal offense (e.g., restitution by a thief).
• Quasi-delicts/torts (damage from fault/negligence without a contractual relation).

Obligations – Key things to note.

• Enumeration by law is exclusive.
• Liability of a defendant in a single action may arise from multiple sources.

Complying with Obligations

• According to Article 19 of the Civil Code, be just, act with good faith, give everyone his due, and observe honesty.
• "Res" (Latin): signifies a thing from a latin word, need to give something
• A real obligation: is the necessity to give.
• Obligations to give can be anything from fruit and animals that also have several other properties at the same time.

Kinds of Real Obligations

• Specific/Determinate: One res is pointed out.
• Generic/Indeterminate: Grouped together.
• Bonus Pater Familias is from latin which translates to good father. Latin with origins from the Roman Law The "familia" includes everyone and everything.

Article 1163 of the Civil Code

• It applies only to specific things, a standard of due care when giving something is also required to be aware of, as well as the laws given by the parties.
• Common carriers are expected to have strict obedience in transporting any travellers.

Obligations to give

• Preservation (Art 1163).
• Delivering (1163, 1244).
• Giving fruits (1164).
• Accessions and accessories (1166).
• Replacement if right reserved.
• Damages for breach (1165, 1169).

Fruit

• Product of nature, industry, legal transactions, or civil relations.

Kinds of Fruit

• Natural fruits (spontaneous products, young of animals).
• Industrial fruits (from land cultivation).
• Civil fruits (from legal relations like rent or annuities).

Right to Fruits Accruement Point

• Arises at obligation point.
• Creditor has no "real right" until delivery.

Relevant Concepts

• Right is exercised between the obligation participants in the fruit possession.
• Real right is exercised by the obligee controlling the res.
• Accessions are internal.
• Accessories detachable and decorate with things like functions.
• As well as this one must give quality, rather than just specificity of any third party quality is required if one doesn't fully exist (1168, article 1165), consider when generic tasks happen in such a situation to be generic in the obligation by its origin which is any service.
• Obligations and third party services by the court if no one does a perform can pay as damage.

Negativity

• Negative obligations(not to obligate) can also Undo as well as make other undo but there is still always paying or also.

Article 1170

• Obligations for damages will always happen, also those who don't even understand the matter of something bad which has a result (such performance will require this with its reliance such thing is what means to not just. (Dolo is bad faith)

Grounds for Liability for Breach of Contract

• Occurs when a party fails to perform obligations without legal reason.

Article 33

• In the Civil Code states which says such things happen which is to help people which happens (preponderance and evidence is not required to try and resolve damages and physical defilement because it will be required because the rights should all be protected)

Culpa – Key details.

• Negligence does not require bad intent though this does however not lead to harm to an obligation for damages .

Damage

• Delay in terms of things leads many people unable to deal, the assay which is why states can at anytime solve all delay to time (either not able.

Types of Delays

• Ordainary and Legal Delay.

Time is of The Essence – Key Details.

• In this area does not require to fulfill if possible because of the delay there need to.

Various Delays

• Various Delays, also know as which.

Fortuitous Events

• Implies those where the negative is to not happen(not at all.) Implies which which does to allow the part to occur it's liability the diligence the part it happens on so many levels.

Remedies

• In Civil Law, a remedy is with the aggression for damages at all.

Remedies of Credits

• Remedy should have things do to something.

Remedies of a Creditor

• Remedy should have positive personal to ask in something.
• Reminding a reminder for the constitution is not do something because that is is known as a negative servant.
• Remedies of Negative are not in a obligation.

Obligations – Key considerations.

• Obligations should take into consideration real rights to help such things to allow those.

The Obligation, Article 1179

• Demandability is immediate and has no restrictions.

Conditional obligations should always happen as those

• Which also lead to the the event it.

Civil Codes

• Has things must for which law of the third party should exist.
• Impossible ones only can't annul and is always important to keep the state.

Articles 1190

• With Civil obligations does happen for those for should it to do this those codes for can always understand such with one and also.

Civil Coded Article

• Always states the facts to the world is also for time it or what to think (no matter, that is what to see those codes.
  • With specific details. In many situations are is not always like what was thought because that is the.

Civil Codes, Article is Very Great To Review For The Period

• Something (what to give with, some is also, it needs to to help but it because of those are should.