Obligations and Contracts PDF

OBLIGATION AND CONTRACTS INDUSTRIAL FRUITS BOOK IV - R.A. 386 Produced by lands of any kind through NEW CIVIL CODE OF THE PHILIPPINES cultivation or labor....

OBLIGATION AND CONTRACTS INDUSTRIAL FRUITS BOOK IV - R.A. 386 Produced by lands of any kind through NEW CIVIL CODE OF THE PHILIPPINES cultivation or labor. CIVIL FRUITS OBLIGATION Those derived by virtue of a juridical relation An obligation is the juridical necessity to give, to (i.e. rents of buildings) do or not to do. Duties of the Debtor (Obligor) Essential requisites of an obligation (APOV) 1) Preserve or take care of the thing due 2) To deliver the thing itself ACTIVE SUBJECT 3) To deliver the fruits of the thing Who has the power to demand the prestation. 4) To deliver the accessions and accessories (CREDITOR or OBLIGEE) BUMIBILI 5) To pay for damages in case of breach PASSIVE SUBJECT Obligation to do ( personal obligation ex. service) Who is bound to perform the prestation. 1) To do or perform it (DEBPTOR or OBLIGOR) NAGBEBENTA 2) To shoulder the cost of having someone else do it 3) To undo what has been poorly done (substandard) OBJECT or the PRESTATION 4) To pay for damages in case of breach (not doing or Consist in the act of giving, doing or not doing performing it) something. Obligation not to do: VINCULLUM JURIS or JURIDICAL TIE 1) Not to do what should not be done The two subjects by reason of which the debtor is 2) To shoulder the cost of undoing what should not have bound in favor of the creditor to perform the prestation. It been done is the legal tie which constitutes the source of 3) To pay for damages in case of breach (doing it) obligation—the coercive force which makes the obligation demandable. (A BOND OF THE LAW) Breach of Obligations JURIDICAL NECESSITY SUBSTANTIAL BREACH The rights and duties arising from obligation are total breach, nonperformance that leads to legally demandable and the courts of justice may be called rescission of contracts upon through proper action to order the performance. SLIGHT or CASUAL BREACH Action means an ordinary suit in court of justice by which obligation is partially performed and gives to rise one party prosecutes another for the enforceable or to liability for damages only protection for a right or a prevention or redress of a wrong. ( Section 1 - Rules of court ) Default or Delay (Mora) Failure to perform an obligation on time which constitutes OBLIGATION TO GIVE (real obligation): breach of the obligation Specific (determinate) thing TYPES OF DELAY OR MORA Cannot be substituted. Mora solvendi - delay on the part of the debtor to fulfill his obligation either to give or to do (NAGBEBENTA) Generic (indeterminate) thing Can be substituted by any of the same class and Mora accipiendi - delay on the part of the creditor to same kind. accept the performance of the obligation (BUMIBILI) ACCESSION & ACCESSORIES Compensatio Morae - delay of both parties in reciprocal ACCESSION obligation The right pertaining to the owner of a thing over its products and whatever is attached thereof either THE PERFORMANCE OF THE OBLIGATION naturally or artificially. FRAUD (DOLO) ACCESSORIES Deliberate or intentional evasion of the normal Are those things which are joined attached to fulfillment of an obligation the principal object as ornament or to render it perfect. NEGLIGENCE (CULPA) TYPES OF FRUITS (NIC) Omission of that diligence which is required by the nature of obligation and corresponds with the circumstances of NATURAL FRUIT the person, of time and of the place. Produced without the human intervention.  KINDS OF NEGLIGENCE (CULPA) Joint ( responsible for proportionate share only) or Solidary (one for all, all for one) – there are more than CULPA CONTRACTUAL one debtors Negligence is merely incidental in the performance of an obligation (breach or nonfulfillment of contract) Divisible or Indivisible Obligation CULPA AQUILIANA Obligation with a penal clause Negligence is substantive and independent (will result to Torts or Quasi-delict) Extinguishment of Obligation Payment Extent of Damages to be awarded: Consignation- depositing of object of an obligation in a competent court BAD FAITH Condonation or remission of debt Debtor is liable for all damages which can be reasonably Confusion- creditor and debtor becomes one person attributed to the non-performance of the obligation. Compensation- offsetting of two obligations which are reciprocally extinguished if they are of same value. GOOD FAITH Novation- substitution or change of the obligation by Debtor is liable only for the natural and probable subsequent one which extinguishes or modifies the first. consequences of the breach. CIVIL - derive the binding force from positive law FORTITOUS EVENT (FORCE MAJEURE) NATURAL - fulfillment cannot be compelled by court a legal excuse for breach of obligation (except action but depends on the good conscience of debtor delivery of generic things) Source of Obligations (LCQAQ) KINDS OF FORCE MAJEURE LAW Act of God - due directly or exclusively to natural causes CONTRACTS without human intervention QUASI-CONTRACTS (i.e. calamity, tsunami) ACTS QUASI-DELICTS Act of Man - essentially an act of man includes Law unavoidable accidents but no fault or negligence on part It is the duty of the Spouses to support each other. of the debtor. (Art. 291, New Civil Code) Contracts General Rule The meeting of minds between two person Obligations are binding only between the parties thereto, whereby one binds himself with respect to the their heirs, assignees and the estate. other. Law limits private contracts Consent is essential requirement for its validity Exception to the rule while in civil obligation Accion Subrogatoria QUASI-CONTRACTS an action where the creditor whose claimes had not been The ‘quasi’ literally means ‘as if’ fully satisfied, may go after the debtors (third persons) of the juridical relation resulting from a lawful, the defendant-debtor. voluntary and unilateral act which has for its purpose the payment of indemnity to the end that Accion Pauliana no one shall unjustly enrich or benefited at the debtor has the intent to alienate his property to a third expense of another. NATURAL OBLIGATION person (accomplice) to prejudice the creditor Kinds of Quasi-contracts KINDS OF OBLIGATION Solutio Indebiti (Payment by mistake) Pure or Conditional the juridical relation which arises when a person is Suspensive Condition- shall only be effective obliged to return something received by him through upon the fulfillment of the condition error or mistake. Resolutory Condition- immediately demandable but subject to threat by the happening of the resolutory Negotiorum gestio (management of another’s property) condition It is the voluntary management or administration by a Potestative Condition- fulfillment of the person of the abandoned business or property of another condition depends upon the will of either parties without any authority or power from the latter. Obligations with a period or term ACTS or DELICTS/CRIMES/FELONY Are omissions punished by law as a source of obligations Facultative (one object has been agreed upon) or Alternative (several objects are due but the performance of one is sufficient) Obligation  Civil liability arising from delicts/crimes: Restitution – the restoration or returning the object of the crime Reparation – the payment by the offender of the value of the object of the crime, when such object cannot be returned to the injured party. Indemnification – the consequential damages which includes the payment of other damages that may have been caused to the injures party. QUASI-DELICTS one where whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. CONTRACTS Stages of A Contract (PPC) Preparatory - process of formation Perfection - there is now a meeting of minds to arrive at a definite agreement. Consumption - the fulfillment or performance of the terms and conditions agreed upon in the contract Requisites of Contracts (COC) Consent of the contracting parties; Object certain which is the subject matter of the contract; Cause of the obligation which is established, compelling reason for which a party assumes an obligation under a contract Kinds of Contracts CONSENSUAL - perfected by mere consent of the parties REAL - perfected not merely by consent but by delivery FORMAL OR SOLEMN - Contracts for which a special form is necessary for its perfection Defective Contracts (VURV) VOID Contracts - No legal effect at all UNENFORCEABLE Contracts - cannot be enforced in court or sued RESCISSIBLE Contracts - Valid until canceled VOIDABLE Contracts - Those where one of the parties is incapable of giving consent to a contract - Consent was acquired by mistake and violence