Chapter 1 Obligations and Contracts PDF

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SALEM, Francess Lorraine R. December 9, 2020BSA 1 – 16 Obligations and ContractsCHAPTER 1I. DefinitionsDefine or give the meaning of the following. Obligation Obligation is a juridical necessity, to give, to do or not to do. Quasi-contract Quasi-contract happens when they arise from unilateral or vo...

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SALEM, Francess Lorraine R.

December 9, 2020

BSA 1 – 16

Obligations and Contracts CHAPTER 1

I.

Definitions

Define or give the meaning of the following. 1. Obligation -

Obligation is a juridical necessity, to give, to do or not to do.

2. Quasi-contract -

Quasi-contract happens when they arise from unilateral or voluntary acts which are enforceable to the end that no one shall be unjustly enriched at the expense of another.

3. Compliance in good faith -

Compliance in good faith means compliance in accordance to the stipulations or terms of the contract or agreement.

4. Wrong -

It is an act or omission of one party in violation or the legal rights of another.

5. Solution indebiti

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It is when something is received when there is no right to demand it or it was unduly delivered by mistake.

II.

Discussions 1. What are the essential requisites of an obligation? Give an example to illustrate them. The essential requisites of an obligation are: juridical tie, passive subject, active subject, and the object or prestation. Juridical tie is the legal tie that binds the parties involved in the obligation. Passive subject is the person bound to the obligation; he who has duty. Active Subject is the person who is entitled to demand the fulfillment of the obligation; he who has a right. Last, object or prestation is the subject matter of the obligation and the conduct of giving, doing or not doing required to be observed by the debtor. For example, Alfred bought shoes online from Xian. They had an agreement that it will be delivered three days after the transaction. In this case, Alfred is the active subject while Xian is the passive subject. The shoes is the object or prestation and the juridical tie would be the agreement they had to have the shoes delivered after 3 days.

2. Why are the obligations under the Civil Code a juridical necessity? It is a juridical necessity so that in case non-compliance, the courts of justice may call upon the aggrieved party to enforce its fulfillment and the obligee may demand for damages.

3. What are the elements or requisites in order that a person may acquire a right of action in court against another to enforce the performance of the latter’s obligation? The elements or requisites in order that a person may acquire a right of action in court against another are: (a) a legal right in favor of a person (creditor).

(b) a correlative legal obligation on the part of another (debtor); to respect or not to violate said right; and (c) an act or omission by the latter in violation of said right with resulting injury to the former.

4. May a person incur obligations even without entering into any contract or voluntary agreement? Explain. Yes, a person may incur obligations even without entering into any contract or voluntary agreement. Obligations arise not only from contracts but from 4 other sources which are: law, quasi-contracts, delicts and quasi-delicts.

III.

Problems

Explain or state briefly the rule or reason for your answers. 1. X saw about one (1:00 p.m.) in the afternoon a child alone in a shopping mall. The child who strayed from Y, his mother, was in tears and appeared very hungry. Out of pity, X took him to a restaurant to eat for which he spent P150. Y did not give her consent to the good deed of X. Furthermore, they were on their way home before the child got lost. Is X entitled to be reimbursed by Y for the amount of P150? Yes. According to Art. 1160, X is entitled to be reimbursed by Y even though Y did not give consent because X’s action is qualified under Negotiorum Gestio.

2. While the car of X was parked by the roadside, it was bumped at the rear by a jeep belonging to Y. Only the car of X suffered damage. Under the circumstances, does it follow that Y is liable to X for the damage?

Yes, Y is liable to X for damage because Y is guilty of fault or negligence and they had no pre-existing contract which falls under quasi-delict. (Art. 1162)

3. In the same problem, has X the right to ask indemnity from R, employer of X, on the ground that when the accident occurred X was then on his way to transact business with a client of R? No. X does not have the right to ask for indemnity from R because no law is stated for such in the Civil Code. (Art. 1158)

4. D (debtor) borrowed P10,000 from C (creditor). On the due date of the loan, D could not pay C because he lost to a robber the P10,000 intended for C. In addition, he suffered financial reverses, and he was short of cash even for his current family’s needs. Is D legally justified to refuse to pay C? No, because D entered to an agreement with C thus entering a contract which must be complied with good faith. D’s reason is not legally justifiable to refuse to pay C. (Art. 1159)...