Introduction to Obli Con PDF

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INTRODUCTION TO LAW ON OBLIGATIONS AND CONTRACTSDefinition of Law. In its broadest sense Law in its general sense (derecho) is defined as any rule of action or norm of conduct applicable to all objects of creation. It includes all those that govern or determine the activities of men as rational bein...

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INTRODUCTION TO LAW ON OBLIGATIONS AND CONTRACTS Definition of Law. 1. In its broadest sense ! Law in its general sense (derecho) is defined as any rule of action or norm of conduct applicable to all objects of creation. It includes all those that govern or determine the activities of men as rational beings as well as the movement or motion of all brute creatures, be it animate or inanimate. " 2. In its specific sense Law in its specific sense is defined as a rule of conduct, just, obligatory, promulgated by a legitimate authority, and of common observance and benefit."

Classification of Law 1. It is a rule of conduct. Law tells us what shall be done and what shall not be done. As a rule of human conduct, law takes cognizance of external acts only." 2. It is obligatory. Law is considered a positive command imposing a duty to obey and involving sanction which forces obedience." 3. It is promulgated by legitimate authority. Laws are enacted by Congress, the legislative branch in the Philippine government. Under the Constitution, Congress is clothed with authority to promulgate laws." 4. It is of common observance and benefit. Law is intended by man to serve man. It regulates the relations of men to maintain harmony in society and to make order and co-existence possible. Law must, therefore, be observed by all for the benefit of all. "

Necessity and functions of law. " 1. What would life be without law? ! Society comes into existence because its members could not live without law. The need for internal order is as constant as the need for external defense. No society can be stable in which either of these requirements fails to be provided for. " 2. What does law do? ! It has been said that law secures justice, resolves social conflict, orders society, protects interest, controls social relations. Life without basic laws against theft, violence, and destruction would be solitary, nasty brutish, and short. Life without other laws such as those regulating traffic, sanitation, employment, business, redress of harm or of broken agreements would be less orderly, less healthful, less wholesome."

3. What is our duty as members of society? ! No society can last and continue without means of social control, without rules of social order binding on its members. The sum of such rules as existing in a given society, under whatever particular forms, is what, in common speech, we understand by law or is referred to as the legal system. "

Sources of Law 1.Constitution ! It is referred to as the fundamental law or supreme law of highest law of the land because it is promulgated by the people themselves, binding on all individual citizens and all agencies of the government. It is the law to which all other laws enacted by the legislature must conform. This means that laws which are declared by the courts to be inconsistent with the Constitution shall be void and the latter shall govern.

2.Legislation It consists the declaration of legal rules by a competent authority. It is the preponderant source of law in the Philippines. Acts passed by the legislature are so-called enacted law or statute. It includes ordinances enacted by the local government units.

3.Administrative rules and regulations They are those issued by administrative o fficials under legislative authority. Administrative rules and regulations are intended to clarify or explain the law and carry into effect its general provisions. Administrative acts are valid only when they are not contrary to laws and Constitution. "

4.Judicial decisions of the Supreme Court The decisions of the courts, particularly the Supreme Court, applying or interpreting the laws or the Constitution for part of the legal system of the Philippines (Article 8 of the New Civil Code). The decisions of a superior court on a point of law are binding on all subordinate courts. This is referred to as the doctrine of precedent or stare decisis.

5.Customs. It consists of those habits and practices which through long and uninterrupted usage have become acknowledged and approved by society as binding rules of conduct. It has the force and effect of law when recognized and enforced by the state." LAW ON OBLIGATIONS AND CONTRACTS, introduction The law on obligations and contracts is the body of rules which deals with the nature and sources of obligations and the rights and duties arising from agreements and the particular contracts." ! The law on obligations and contracts is found in Republic Act No. 386 otherwise known as the Civil Code of the Philippines under Book IV. The general provisions on obligations are contained in Title I, Articles 1156-1304, while those on contracts, in Title II, Articles 1305-1422. The general rules of law governing contracts are also applicable to the particular kinds of

contracts (like sale, agency, partnership, barter, etc.) in addition to the special provisions of law governing each type of contract. Book IV also contains provisions dealing with natural obligations which are found under Title III, Articles 1423 to 1430."

BOOK IV OBLIGATIONS AND CONTRACTS Title. I. - OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) ! Obligation is a juridical necessity because in case of non-compliance, the courts of justice may be called upon by the aggrieved party to enforce its fulfillment or, in default thereof, the economic value that it represents. " Essential requisites of an obligation: ! 1. Passive subject (Debtor or Obligor) - the person who is bound and has the duty to the fulfillment of the obligation;" ! 2. Active subject (Creditor or Obligee) - the person who is entitled to demand the fulfillment of the obligation; he has a right for the enforcement of the terms agreed upon;" ! 3. Object or Prestation (Subject matter of the obligation) - the conduct required to be observed by the debtor. It may consist in giving, doing, or not doing. Without the prestation, there is nothing to perform." ! 4. Juridical tie or legal tie (Efficient cause) - that which binds or connects the parties to the obligation. The tie in an obligation can easily be determined by knowing the source of the obligation." !

Example: "

!

Under a building contract, X bound himself to build a house for Y for PhP 1,000,000.00."

! ! ! !

Passive subject - X" Active subject - Y" Object/Prestation - the building of the house" Juridical tie - agreement or contract"

Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts.

Sources of obligations: 1. Law - when they are imposed by law itself. " Example:" ! Obligation to pay taxes, obligation to support one’s family." 2. Contracts - when they arise from the stipulation of the parties." Example: " ! The obligation to repay a loan or indebtedness by virtue of an agreement." 3. Quasi-contracts - when they arise from lawful, voluntary and unilateral acts which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another. In a sense, these obligations may be considered as arising from law. " Example: " ! The obligation to return money paid by mistake or which is not due. (Article 2154 of the Civil Code)" 4. Crimes or acts or omissions punished by law - when they arise from civil liability which is the consequence of a criminal offense." Example:" ! The obligation of a thief to return the car stolen by him; the duty of a killer to indemnify the heirs of the victim." 5. Quasi-delicts or torts - when they arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties. " Example: " ! The obligation of the head of a family that lives in a building or a part thereof to answer for damages caused by things thrown or falling from the same (Article 2193)." Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, by the provisions of this Book. ! Article 1158 refers to legal obligations or obligations arising from law. They are not presumed because they are considered a burden upon the obligor. They are the exception, not the rule. To be demandable, they must be clearly set forth in the law. " Examples: " ! 1. A private school has no legal obligation to provide clothing allowance to its teachers because there is no law which imposes this obligation upon schools. " ! 2. An employer has no obligation to furnish free legal assistance to his employees because no law requires this, and therefore, an employee may not demand from his employer the amount he may have paid to his lawyer."

Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Contractual Obligations A contract is a meeting of minds between two (2) persons whereby one binds himself, with respect to the other, to give something or to render some service. " Example: " ! S agrees to sell his house to B and B agrees to buy the house of S, voluntarily and willingly, then they are bound by the terms of their contract. That which is agreed upon in teh contract is the law between S and B and must be complied with in good faith. "

Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. ! A quasi-contract is that juridical relation resulting from lawful, voluntary and unilateral acts by virtue of which the parties become bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another. " ! It is not properly a contract at all. In contract, there is a meeting of the minds or consent, that is the parties must have deliberately entered into a formal agreement. In a quasicontract, there is no consent but the same is supplied by fiction of law. In other words, the law considers the parties as having entered into a contract, although they have not actually done so and, and irrespective of their intention to prevent injustice or the unjust enrichment of a person at the expense of another. " KINDS OF QUASI-CONTRACTS 1. Negotiorum Gestio - is the voluntary management of the property or affairs of another without the knowledge or consent of the latter. ! Example: ! X went to Baguio with his family without leaving somebody to look after his house in Manila. While in Baguio, a big fire broke out near the house of X. Through the effort of Y, a neighbor, the house of X was saved from being destroyed by fire. Y, however, incurred expenses. " ! In this case, X has the obligation to reimburse Y for said expenses, although he did not actually give his consent to the act of Y in saving his house, on the principle that no one must be unjustly enriched at the expense of another. " 2. Solutio indebiti - is the juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake. " !

Requisites of solutio indebiti:

! !

2.a There is no right to receive the thing delivered; and" 2.b The thing was delivered through mistake."

Example: ! " ! X, a grocery cashier, is supposed to give Y, a customer, PhP 40.00 as change. X mistakenly gave Y PhP 400.00 instead. " ! Y in this case has an obligation to return the PhP 360 excess change. This is based on the principle that no one must be unjustly enriched at the expense of another. If Y here did not return the excess change, X will have to cover the shortage with her own money. Y will be unjustly enriched by PhP 360.00 at the expense of X. "

Article 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of Title XVIII of this Book, regulating damages. Scope of Civil Liability: 1. Restitution;" 2. Reparation for the damage caused; and" 3. Indemnification for consequential damages. " Example:" ! X stole the car of Y. If X is convicted, the court will order X: (1) to return the car or to pay the its value if it was lost or destroyed; (2) to pay for any damage caused to the car; and (3) to pay such other damages suffered by Y as a consequence of the crime."

Article 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws. ! A quasi-delict (torts) is an act or omission by a person which causes damage to another in his person, property or rights giving rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties. " Requisites of quasi-delict: 1. There must be an act or omission; 2. There must be fault or negligence; 3. There must be damage caused; 4. There must be direct relation or connection of cause and effect between the act or omission and the damage; and 5. There is no pre-existing contractual relation between the parties. Example: "

! While playing softball with his friends, X broke the window glass of Y, his neighbor. The incident would not have happened had they played a little farther from the house of Y. " ! In this case, X in under obligation to pay damage caused to Y by his act although there is no pre-existing contractual relation between them because he is guilty of fault or negligence. " QUASI-DELICT & CRIME, distinctions Quasi - delict

Crime

There is only negligence.

There is criminal or malicious intent or criminal negligence The purpose is punishment

The purpose is indemnification of the offended party. Concerns private interest.

Concerns public interest.

Involves civil liability only.

Involves criminal and civil liability

Liability can be compromised or agreed to by the parties. The fault of the defendant may be proven by preponderance of evidence only.

Cannot be compromised or settled by the parties themselves. Guilt must be proven beyond reasonable doubt....