BLAW Notes PDF

BLAW Notes DEFINE OBLIGATION Under the Civil Code, Article 1156: An "obligation" is defined as a juridical necessity/ to give/, to do/, or not to do/ It comes from the Latin word “obligare” → “to bind” It is a legal bond...

BLAW Notes DEFINE OBLIGATION Under the Civil Code, Article 1156: An "obligation" is defined as a juridical necessity/ to give/, to do/, or not to do/ It comes from the Latin word “obligare” → “to bind” It is a legal bond or tie by virtue/ of which one party is bound to fulfill a duty/ in favor of another. The obligation can involve/ giving a thing/, performing a specific act/, or refraining from an act. In essence/, it is a duty imposed by law/ that, if not fulfilled/, can be enforced by the courts/, which may result in the debtor/ being held liable for damages. 4 ELEMENTS OF OBLIGATION 1. Juridical Tie/ Legal Tie/ Vinculum Juris 2. Subject Matter - object/prestation a. Licit (Legal) b. Possible c. Pecuniary Value (Value for Money) d. Determinate/Determinable 3. Active Subject (Creditor/Obligee - receiver) Holder of the Right The one who can demand performance 4. Passive Subject (Debtor/Obligor - giver) The person bound to perform PS: Right - is a claim or title in an interest in anything whatsoever that is enforceable by law BLAW Notes 1  5 SOURCES OF OBLIGATION 1. Laws - rule of conduct, just, obligatory, propagated by legitimate, and of common observance and benefits Special Laws - only particular topics are discussed General Laws - civil code, labor code, etc. PS: Special Laws will always prevail against General Laws 2. Contract 3 Essential Elements/Requisites (COC) Consent - meeting of the minds Object Cause of the obligation - *established* 3. Act or Omission punished by law/ delict/ crime 4. Quasi Contract 5. Quasi Delict COURT Plaintiff (Respondent) Defendant (Accused) PS: Cause of Action - the act or omission that violates the right of another Civil Action - is one by which a party sues another for the enforcement or the protection of a right or the prevention or redress of a wrong KINDS OF PERSONS 1. Natural - good, not good, both 2. Juridical - persons recognized by law DEFINE CONTRACT BLAW Notes 2  Under the Civil Code, Article 1305: A “contract” is the meeting of minds/ between two persons/ whereby one binds himself/, with respect to the other/, to give something or to render some service. A "contract" is an agreement/ between two or more parties/ that creates obligations enforceable by law. It is the source of obligations/ when parties consent to create mutual obligations,/ such as in the case/ where one party agrees to provide a service or product/, and the other party agrees to pay for it. The contract forms the juridical tie/ that binds the parties to the obligation/, and if one party fails to fulfill their end of the agreement/, it may give rise to a cause of action/ for breach of contract. 3 ELEMENTS/REQUISITES OF CONTRACT (COC) 1. Consent - meeting of the minds 2. Object - 3. Cause of the obligation - established QUASI-CONTRACT As if there is an agreement by the parties, but in reality, there is not certain lawful voluntary and unilateral acts give rise to juridical relations of contracts to the end that no person shall be unjustly enriched or benefited at the expense of another 2 Principal Forms of Quasi-Contract 1. Negotiorum Gestio - voluntary or “walang usapan” 2. Solutio Indebiti - if something is received, when there is no right to demand it, and it was unduly delivered through mistake, there is an obligation to return it. BLAW Notes 3  ACT OR OMISSION PUNISHABLE BY LAW crime, felony, delict Criminal Action - imprisonment Civil Action - Payment if he is criminally liable by felony, he is also civically liable 3 Civil Liabilities 1. Restitution/Restoration Restoring something to its original state after damage or loss. 2. Reparation Compensation or payment to repair the harm caused. 3. Indemnification for consequential damages Payment for damages caused to third parties as a result of an action. 2 Classification of Obligations As to Nature 1. Personal Obligation - to do and not to do 2. Real Obligation - to give; you must deliver something As to Performance 1. Positive Obligation - obligation to give and to do 2. Negative Obligation - obligation not to do As to the Person Obliged 1. Unilateral Obligation - only one party is bound 2. Bilateral Obligation- both parties are bound QUASI DELICT BLAW Notes 4  “Negligence” Under Article 2176 of the Civil Code, whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damages caused. Elements of Negligence 1. the existence of fault on the part of the dependant 2. there must be damage suffered or incurred by the plaintiff 3. there is a relation of cause and effect between the fault of the dependant and the damage suffered by the plaintiff - (causal relation) PS: “resulting in” Proximate cause is that cause which, in a natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result would not have occurred. Obligations of the debtor in real obligations specific/determinate real obligations generic/inderminate real obligations 1. To deliver a generic or 1. To deliver the specific thing indeterminate thing, which must be neither of superior nor inferior quality 2. To observe ordinary diligence before 2. To pay damages in case of breach delivery of obligation 3. To deliver accessions and accessories 4. To pay damages in case of breach What is delivery? Delivery refers to the act of giving or yielding possession or control of something. Effect: transfer of ownership Two kinds of delivery: BLAW Notes 5  1. Actual delivery – There is an act of giving the real and immediate possession of the item. 2. Constructive delivery – An act that amounts to a transfer of title by authorization of law when actual transfer is impractical or impossible. a specific or determinate thing is one that is particularly designated or physically segregated from others of the same class a generic or indeterminate thing refers only to a class or the genus to which it pertains and cannot be pointed out with particularity. ordinary diligence refers to the care that is expected from a reasonably prudent person under similar circumstances. It is the standard of care that a person must exercise in fulfilling obligations, as stated in Article 1173 of the Civil Code of the Philippines extraordinary diligence extreme care that a person of unusual precedence exercises to secure rights or property applies to: Common Carriers (Public Transport Vehicle) 2 kinds of properties Accession - Properties that are incorporated into or attached to the principal thing, or are produced by it. Accessories - Properties used to embellish, support, or preserve the principal thing but are not incorporated or attached to it. BLAW Notes 6  injury vs damage vs damages injury - the invasion of a legal right damage - is the loss resulting from the injury damages - is the compensation awarded 2 instances when ordinary diligence does not apply: 1. when the law requires another standard of care 2. when the parties stipulate another standard of care. stipulation - agreement between two parties Rights of The Creditor in Real Obligations Specific/Determinate Thing Generic/Indeterminate Thing 1. To Compel Specific Performance 1. To ask for the performance of the obligation 2. To demand rescission or cancellation of 2. To ask That the performance be complied obligation in reciprocal obligation with at the expense of the debtor 3. To Recover damages in case of breach 3. To Recover damages in case of breach Specific Performance is a civil charge; legally forcing someone to do something Rescission cancellation of contract only applicable to reciprocal obligation - ex. contract of sale 3 Different kinds of fruits. The fruits mentioned by the law refer to natural, industrial, and civil fruits: BLAW Notes 7  1. Natural fruits are the spontaneous products of the soil, and the young and other products of animals, e.g., grass; all trees and plants on lands produced without the intervention of human labor. 2. Industrial fruits are those produced by lands of any kind through cultivation or labor, e.g., sugar cane; vegetables; rice; and all products of lands brought about by reason of human labor 3. Civil fruits are those derived by virtue of a juridical relation, e.g., rents of buildings, price of leases of lands and other property and the amount of perpetual or life annuities or other similar income. a breach occurs when one party fails to fulfill their contractual duties or obligations as agreed, either by not performing on time, not performing in accordance with the terms, or not performing at all 2 Kinds of Breaches Voluntary breach Delay/Default/Mora Fraud/Dolo Negligence/culpa Breach through contravention of the tenor of the obligation Involuntary Breach 1. Voluntary Breach: Refers to breaches of obligations where the obligor is guilty of either fraud, negligence, delay, or contravention of the terms and conditions stipulated in the obligation. This type of breach occurs when the debtor or obligor willfully or negligently fails to fulfill their obligations. 2. Involuntary Breach: Involuntary breaches occur due to fortuitous events or force majeure, where the failure to comply with the obligation is beyond the control of the obligor and without fault on their part. BLAW Notes 8  4 Kinds of Voluntary Breaches: 1. Delay (Default or Mora): Delay in the performance of an obligation is legally referred to as "mora." It can take the form of: Mora Solvendi: Delay on the part of the debtor in fulfilling the obligation. Mora Accipiendi: Delay on the part of the creditor in accepting the performance. Compensatio Morae: both parties committed delay for unjustifiable reason. “As if there is no delay” Requisites for Delay 1. Demandable & Liquidated 2. Delay Performance by Debtor 3. Judicial (involves the court) or extrajudicial (does not involve the court) demand Judicial or extrajudicial demand Demand by: Stipulated/Law Nature and circumstances of the obligation Demand is useless because the obligation is impossible to perform PS: There is no delay when there is no demand 2. Fraud (Dolo): includes all kinds of deception whether through insidious machination, manipulation, concealment, or misrepresentation that would lead an ordinary prudent person to commit error after which they would suffer harm or loss as a result of relying on the misleading information or actions presented. BLAW Notes 9  Dolo Causante: acts or omissions made for the purpose of entering into contracts Dolo Incidente: Fraud committed during the performance of an existing obligation (there is already a contract); after the perfection of contract when the deception was made 3. Negligence (Culpa): Negligence is the lack of care as required by the diligence provided by a reasonable person in similar circumstances. It can be: Contractual Negligence (Culpa Contractual): Negligence in contracts that leads to their breach. Civil Negligence (Culpa Aquiliana): Negligence that gives rise to obligations even without a pre-existing contract (quasi-delict). Criminal Negligence (Culpa Criminal): Negligence that results in a criminal offense​​. 4. Breach Through Contravention of the Tenor of the Obligation: This is a violation of the terms and conditions stipulated in the obligation. The obligor's unilateral act of contravening these terms, without a valid excuse, makes them liable for damages. Contravention means acting against or violating a rule, law, or agreement. Tenor refers to the general meaning, intent, or main terms of a document or agreement. PS: Fortuitous Events (exempted to liabilities), Exceptions: Exceptions to Fortuitous Events BLAW Notes 10  1. Liability is provided by Law 2. Stipulated by the parties 3. Assumption of risk (ex. Insurance contracts) Key Terms Mitigate: lessen Aggravate: make it more serious Fortuitous Event Definition A fortuitous event is any extraordinary event which cannot be foreseen, or which, though foreseen, is inevitable. It is an event which is either impossible to foresee or impossible to avoid. The essence of a fortuitous event is a happening independent of the obligor's will, which makes the normal fulfillment of the obligation impossible. Fortuitous Event vs. Force Majeure 1. Acts of man (Fortuitous Event): Events independent of the obligor's will but not of other human wills, e.g., war, fire, robbery, murder, insurrection. 2. Acts of God (Force Majeure): Events totally independent of any human will, e.g., earthquake, flood, rain, shipwreck, lightning, volcanic eruption. In Philippine law, fortuitous events and force majeure are treated identically in exempting an obligor from liability. Both are independent of the obligor's will. Kinds of Fortuitous Events In speaking of the contract of lease, our Civil Code distinguishes between two kinds of fortuitous events: 1. Ordinary fortuitous events: Common events that contracting parties could reasonably foresee (e.g., rain) 2. Extraordinary fortuitous events: Uncommon events that contracting parties could not have reasonably foreseen (e.g., earthquake, fire, war, pestilence, unusual flood) BLAW Notes 11  Requisites of a Fortuitous Event Whether an act of man or an act of God, to constitute a fortuitous event, it is essential that: 1. The event must be independent of the human will or at least of the obligor's will 2. The event could not be foreseen (unforeseeable), or if it could be foreseen, must have been impossible to avoid (unavoidable) 3. The event must be of such a character as to render it impossible for the obligor to comply with his obligation in a normal manner 4. The obligor must be free from any participation in, or the aggravation of the injury to the obligee. BLAW Notes 12