SAMPLE QUIZ THC8 PDF

LESSON 1: OBLIGATIONS AND CONTRACTS Obligation - juridical necessity to give, to do, or not to do. ELEMENTS OF OBLIGATION: (4) 1. Active Subject - the person who has the right or power to demand. 2. Passive Subject - the person bound to perform or to pay. 3. Prestation - the objec...

LESSON 1: OBLIGATIONS AND CONTRACTS Obligation - juridical necessity to give, to do, or not to do. ELEMENTS OF OBLIGATION: (4) 1. Active Subject - the person who has the right or power to demand. 2. Passive Subject - the person bound to perform or to pay. 3. Prestation - the object of the contract. 4. Vinculum Juris - also known as the juridical or legal Tie. SOURCES OF OBLIGATION: (5) 1. Law - when they are imposed by law itself. 2. Contracts - when they arise from stipulation of parties. 3. Quasi-contracts - when they arise from lawful, voluntary and unilateral acts. 4. Crimes or acts or omission punished by law - consequence of a criminal offense. 5. Quasi-delicts or torts - when they arise from damaged caused to another. 2 KINDS OF OBLIGATIONS: 1. Real Obligation (obligation to give) 2. Personal Obligation (obligation to do or not to do) Positive Personal Obligation - Obligation to render service. Negative personal obligation - Obligation not to do. Acts or omissions of the obligor/debtor:  Default or Mora  Fraud or Dolo  Negligence or Culpa  Contravention of the tenor of the obligation. (Art. 1170, NCC) 2 CONCEPT OF DELAY:  Ordinary Delay – failure to perform an obligation on time.  Legal Delay or Default – failure constitute a breach of the obligation. 3 KINDS OF DELAY OR DEFAULT  Mora Solvendi - Delay on part of the debtor.  Mora Accipiendi -Delay on the part of the creditor.  Compensation Morae - Delay of the obligors in reciprocal obligations. LAW ON CONTRACTS Contract - meeting of minds between two persons. Contracts in General  There is no contract unless the following requisites concur:  Consent of the contracting parties;  Object certain which is the subject matter of the contract;  Cause of the obligation which is established. Freedom to contract guaranteed - The right to enter into contract is one of the liberties guaranteed to the individual by the constitution. 5 Limitations on Contractual Stipulations 1. Contract must not be contrary to law - contract cannot be given effect if it is contrary to law, because law is superior to a contract. 2. Contract must not be contrary to morals - deals with norms of good and right conduct evolved in a community. 3. Contract must not be contrary to good customs - consist of habits and practices which through long usage have been followed.  4. Contract must not be contrary to public order - consist of habits and practices which through long usage have been followed 5. Contract must not be contrary to public policy - broader than public order, as the former not only to public safety but also to consideration which are moved by the common good.  Do ut des (I give and you give)  Do ut facias (I give and you do)  Facio ut des (I do and you give)  Facio ut facias (I do and you do) KINDS OF CONTRACT: According to form: 2  Informal contract - In any form  Formal Contract - Form required by the law. According to the involvement of the parties:2  Unilateral Contract - One party is bound to fulfill an obligation.  Bilateral Contract - Both parties are bound to fulfill their obligation. According to name or designation:2  Nominate contract - Has specific name  Innominate contract - Has no specific name According to perfection:3  Consensual Contract - perfected by mere consent.  Real Contract - perfected by the delivery of the object.  Solemn Contract - perfected through compliance. According to cause or purpose: 3  Onerous Contract - obligation by one party as the other party performs or has performed its own obligation.  Remuneratory Contract - remuneration or payment by one party.  Gratuitous Contract - liberality or the feeling by one party that the other party. According to the obligatory force: 5  Valid Contract - clauses, terms and conditions that are not contrary to law.  Rescissible Contract - with legal validity  Voidable/Annullable Contract - invalidated by a court.  Unenforceable Contract - with legal validity but cannot be enforce.  Void Contract - with no validity at all because of certain defects.