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Obligation and Contract

The document outlines the concept of obligations, defining them as juridical necessities to give, do, or refrain from doing something, with legal consequences for noncompliance. It distinguishes between civil, natural, and moral obligations, detailing their enforceability and implications. Additionally, it discusses sources of obligations, including law, contracts, quasi-contracts, and delicts, along with specific articles that govern various scenarios related to obligations and liabilities.

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0% found this document useful (0 votes)
13 views18 pages

Obligation and Contract

The document outlines the concept of obligations, defining them as juridical necessities to give, do, or refrain from doing something, with legal consequences for noncompliance. It distinguishes between civil, natural, and moral obligations, detailing their enforceability and implications. Additionally, it discusses sources of obligations, including law, contracts, quasi-contracts, and delicts, along with specific articles that govern various scenarios related to obligations and liabilities.

Uploaded by

abarcajadey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Article 1156 An obligation is a juridical necessity to give to do or

not to do

Obligation -is to tie or bind


Juridical necessity
- juridical tie, in case of noncompliance ther will be legal
sanction
-in case of noncompliance of the obligation then the court may
be called upon for the enforcement or fulfillment of the
obligation

Obligation- is an act which may be enforced under the law


Right- power to demand performance of a prestationP
Legal wrong-an act or omission( failure to perform an act)
violating the right of another.

Real ob- thing to be delivered


Personal ob- subject matter is an act.

1 active subject - creditor/ obligee, party who is entitled to


demand performance of the obligation
2. Passive subject- debtor/obligor, who is bound to the
fulfillment of the obligation, he is passive bc he does nothing
until the demand fo performance of the obligation is upon him.
3. Object)prestation- subject matter of the obligation or
conduct required to be observed by the party concerned.
Prestaion - to give to do or not to do
PRESTATION (Object)

1. TO GIVE – delivery of a thing to the creditor (in sale,

Deposit, pledge, donation);

2. TO DO – covers all kinds of works or services

(contract for professional services);

3. NOT TO DO – consists of refraining from doing some


Acts (in following rules and regulations).

4. Juridical tie o efficient cause- binds the parties together


and arise in the sources of obligation.

CIVIL OBLIGATION – Obligations which give to the creditor or


obligee a right of action in courts of justice to enforce their
performance.
Natural obligation- not base positive law but arise from equity
and natural law, they can’t be enforced. In case a party receives
something by virtue of a natural obligation the law authorizes
to retain or keep that thing in case it is voluntarily fulfilled or
preformed by the debtor.)
MORAL OBLIGATION – the sanction is Conscience or morality,
or the law of the Church.
Ex- duty to attend mass every sunda

ART. 1423. Natural obligations, not being based on positive law


but on equity and natural law, do not grant a right of action to
enforce their performance, but after voluntary fulfillment by
the obligor, they authorize the retention of what has been
delivered or rendered by reason thereof.

ART. 1424. When a right to sue upon a civil obligation has


lapsed be extensive prescription, the obligor who voluntarily
performs the contract cannot recover what he has delivered or
the value of the service he has rendered.
Example scene: For example: if iowe Hannah money with a 5-
year payment term and voluntarily pay her after 5 years, even
though the debt is no longer enforceable, I cannot recover the
payment I made, as the right to sue has expired.

Article 1425. When without the knowledge or against the will of


the debtor, a third person pays a debt which the obligor is not
legally bound to pay because the action thereon has prescribed,
but the debtor later voluntarily reimburses the third person,
the obligor cannot recover what he has paid
Ex: If a third party pays your debt to Hannah after the 5-year
term expires (due to prescription), and you later reimburse the
third party, **Article 1425** says you cannot recover the
amount, even though the debt was no longer enforceable.
Article 1426. When a minor between eighteen and twenty-one
years of age who has entered into a contract without the
consent of the parent or guardian, after the annulment of the
contract voluntarily returns the whole thing or price received,
notwithstanding the fact that he has not been benefited
thereby, there is no right to demand the thing or price thus
returned.
Ex: At 19, you borrow money from Hannah without parental
consent. After 5 years, you annul the contract due to your age
and return the money, even though you didn’t benefit. Under
the law, you cannot demand the money back since you
voluntarily returned it.

Article 1427. When a minor between eighteen and twenty-one


years of age, who has entered into a contract without the
consent of the parent or guardian, voluntarily pays a sum of
money or delivers a fungible thing in fulfillment of the
obligation, there shall be no right to recover the same from the
obligee who has spent or consumed it in good faith

Ex:At 19, you enter into a contract with Hannah to borrow


money without parental consent. After five years, you annul the
contract but voluntarily repay the debt. According to **Article
1427**, if Hannah used the money in good faith, you cannot
recover what you paid, even though the contract could have
been annulled.

Article 1428. When, after an action to enforce a civil obligation


has failed the defendant voluntarily performs the obligation, he
cannot demand the return of what he has delivered or the
payment of the value of the service he has rendered.Ex. You
borrow money from Hannah, and after a failed lawsuit, you
voluntarily repay the debt. Under **Article 1428**, you cannot
recover the money you paid, despite the case being dismissed.

1429When a testate or intestate heir voluntarily pays a


debt of the decedent exceeding the value of the
property which he received by will or by the law from
the estate of the deceased, the pyment is valid and
cannot be rescinded by the payer. (n)

Ex: Hannah inherits$50,000,000 from her father’s estate but


pays off the full $100,000,000 debt. Later, she wants to recover
the extra $50,000,000.Under Article 1429, the payment cannot
be rescinded, as it is final and valid.

If an heir (someone who inherits from a deceased person)


voluntarily pays a debt of the deceased that is more than what
they inherited, the payment is considered valid. The person
who paid the debt cannot get the money back, even if they paid
more than what they received from the estate.

Article 1430. When a will is declared void because it has not


been executed in accordance with the formalities required by
law, but one of the intestate heirs, after the settlement of the
the debts of the deceased, pays a legacy in compliance with a
clause in the defective will, the payment is effective and
irrevocable.

Ex:Hannah’s mother’s will is declared void because it wasn’t


executed according to legal requirements. However, after
settling the estate’s debts, Hannah, an intestate heir, decides to
pay a $10,000 legacy to her mother’s friend as mentioned in the
defective will.Under **Article 1430**, Hannah’s payment is
valid and irrevocable, even though the will was void.

CIVIL OBLIGATION – Obligations which give to the creditor or


obligee a right of action in courts of justice to enforce their
performance.

Natural obligation- not base positive law but arise from equity
and natural law, they can’t be enforced. In case a party receives
something by virtue of a natural obligation the law authorizes
to retain or keep that thing in case it is voluntarily fulfilled or
preformed by the debtor.)

MORAL OBLIGATION – the sanction is Conscience or morality, or


the law of the Church.

Ex- duty to attend mass every sunda

Sources of obligation
1.Law- when they are imposed by the law itself, e.g.,
obligation to pay taxes; obligation to support one’s family (are
never presume(.bc they imposed a burden upon the debtor) ,
only ob which are in tha civil code or special laws are
demandable(

To know- If an act or condition on wihci it depende is simply a


factor to determine when it is demandable then the ob is arises
from law. But if law merely recognizes it of the existence of
such act then it does not arise from law.

2.contracts- obligatory upon the parties, ART. 1159. Obligations


arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
(1091a) Contracts should be valid and enforceable.
ART. 1305. A contract is a meeting of minds between two
Persons whereby one binds himself, with respect to the other,
To give something or to render some service. (1254a

3. Quasi-contracts- juridical relations, resulting from lawful,


voluntary, and unilateral(UNILATERAL – where only one of the
parties Is bound) acts By virtue of which the parties become
bound to each other to the end that no one will be unjustly
enrich at the expense of another.
- Not Contracts, because there is no consent. By fiction of law,
law itself supplies that consent

A. Negotiorum gesto- voluntarymanagement of the property or


affairs of another without the knowledge or consent of the
latter.
Scenario: Hannah is my neighbor and away for vacation and
their house is on fire and I perform an act to save her house
even without her my knowledge or consent. After saving her
house I incurred some expenses or damage, when hanna comes
back I will be entitled to claim reimbursement for the expenses
I incurred even if she did not gave me consent to do so.
B. Solotio indebti- payment by mistake- when a thing. is
received with no right to demand it and it is unduly delivered
through mistake.
Scenario: I pay hannah a rent when the bill is not yet due, since
it's not yet due and demandble , so there is a payment by
mistake- and before the due date I have a right to claim of what
I paid or ask for what I paid and to be paid back to the party
who received it by mistake.
 C.others1. **Art. 2164**: A stranger provides support to
someone without the obliged person’s knowledge. The
stranger can claim reimbursement unless the support was
given out of kindness, without the intention of repayment.

 2. **Art. 2165**: If a third person pays funeral expenses


without the knowledge of the relatives who should have,
they can ask the relatives for reimbursement.

 3. **Art. 2166**: If a person refuses to support an orphan


or an indigent person, a third person can provide support
and claim reimbursement from the one who should have
supported.

 **Art. 2167**: If someone is injured or ill and is treated


without their consent, they must pay for the services
unless the treatment was given out of generosity.
 **Art. 2168**: If property is saved from a disaster by
someone without the owner’s knowledge, the owner must
pay compensation for the rescue.

 **Art. 2169**: If the government carries out work on


property due to health or safety violations, the owner
must pay for the expenses.

 **Art. 2170**: If items belonging to different people get


mixed up accidentally, co-ownership rules apply.

 **Art. 2171**: The rights of the finder of lost property are


governed by specific articles (719 and 720).

 **Art. 2172**: A good faith possessor is entitled to


reimbursement for necessary and useful expenses
according to Article 546.

 **Art. 2173**: If a third party pays a debt without the


debtor’s knowledge, the rights of the third party are
governed by Articles 1236 and 1237.

 **Art. 2174**: In a small community, if a majority


approves a measure for protection, anyone who benefits
but refuses to contribute must pay their share of the
expenses.

 12. **Art. 2175**: If a person pays another’s taxes, they


can claim reimbursement from the person who owed
them.

4. Delicts or crime- when they arise from civil liability which is


the consequence of a criminal offens. Which means in the
commission of a crime gives rise to a civil liability.
1161. Civil obligations arising from criminal offenses Shall
be governed by the penal laws, subject to the rovisions of
Article 2177, and of the pertinent Provisions of Chapter 2,
Preliminary in Human Relations, and of Title 18 of this
book, regulating Damages 5
5. . Quasi+delicts- an act or omission by a person which
causes damage to another giving rise to anobligation to
pay for the damage done, there being fault or negligence
but there is no pre-existing contractual relation between
parties.- it obligees the person who cause damage to pay
injured party damages.
Damge- actual physical injury or harm which Is suffered
Damages- is the compensation which is paid for suffering injury
or harm

ART. 2176. Whoever by act or omission causes damage to


another, there being fault or negligence, is obliged to pay for
the damage done. Such fault or negligence, if there is so pre-
existing contractual relation between the parties, is called a
quasi-delict and is governed by the provisions of this Chapter.

A.Distinction of crimes and quais delict


Crimes** are violations that harm society as a whole, such as
theft or murder. They disrupt public order, so they are
prosecuted by the state.

**Quasi-delicts** are wrongful acts that harm individuals but


don’t necessarily involve criminal intent or public harm. They
are typically civil wrongs, like negligence, that lead to
compensation rather than punishment.
(1) There must be an act or omission by the defendant;

(2) There must be fault or negligence of the defendant;

(3) There must be damage caused to the plaintiff;

(4) There must be a direct relation or connection of c

Vicarious liability
Article 2180 applies to both parents and employers. Parents are
responsible for damages caused by their minor
children. Employers are responsible forp damages caused by
their employees while performing their assigned tasks
.ART. 2180. The obligation imposed by article 2176 is
demandable not only for one’s own acts or omissions, but also
for those of persons for whom — one is responsible.

C. 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
in Human Relations, and of Title 18 of this book, regulating
damages.Governing rules:
1. Pertinent provisions of the RPC and other penal laws
subject to Art 2177 Civil Code
[Art 100, RPC – Every person criminally liable for a felony is
also civilly liable]
2. Chapter 2, Preliminary title, on Human Relations (Civil
Code )3. Title 18 of Book IV of the Civil Code – on damages
Every person criminally liable for a felony is also criminally
liable (art. 100, RPC)CRIMINAL LIABILITY INCLUDES:
(a) RESTITUTION – restoration of property previously taken
away; the thing itself shall be restored, even though it be found
in the possession of a third person who has acquired it by
lawful means, saving to the latter his action against the proper
person who may be liable to him.
(b) REPARATION OF THE DAMAGE CAUSED – court determines
the amount of damage: price of a thing, sentimental value, etc.
(c) INDEMNIFICATION FOR CONSEQUENTIAL DAMAGES –
includes damages suffered by the family of the injured party or
by a third person by reason of the crime.
EXAMPLE:
X stole the car of Y. If X is convicted, the court will order X: (1)
to
return the car (or to pay 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.

1. That crimes affect the public interest, while cuasi-delitos


are only of private concern.

2. That, consequently, the Penal Code punishes or corrects


the criminal act, while the Civil Code, by means of
indemnification, merely repairs the damage.

3. That delicts are not as broad as quasi-delicts, because the


former are punished only if there is a penal law clearly
covering them, while the latter, cuasi-delitos, include all
acts in which ‘any kind of fault or negligence intervenes.
(P. 611, supra.).
### Explanation:

1. **Crimes affect public interest, while quasi-delicts concern


private matters**:

- **Crimes** are violations that harm society as a whole, such


as theft or murder. They disrupt public order, so they are
prosecuted by the state.

- **Quasi-delicts** are wrongful acts that harm individuals


but don’t necessarily involve criminal intent or public harm.
They are typically civil wrongs, like negligence, that lead to
compensation rather than punishment.

2. **The Penal Code punishes crimes, while the Civil Code


provides indemnification for quasi-delicts**:

- The **Penal Code** is designed to punish crimes through


criminal sanctions, such as imprisonment or fines, to deter
harmful acts.

- The **Civil Code** is concerned with compensating the


victim for damages caused by quasi-delicts, like paying for
medical expenses or repairing property. It doesn’t involve
criminal penalties.
3. **Crimes are narrower, punished only if explicitly covered by
penal law, whereas quasi-delicts include any act involving fault
or negligence**:

- **Crimes** are only punishable if the law specifically defines


the action as criminal. For example, murder is a crime only
because it is explicitly defined as such in the law.

- **Quasi-delicts** are broader and include any act that


involves negligence or fault, even if the act doesn’t fall under
criminal law. For example, if someone accidentally injures
another person due to carelessness, it’s a quasi-delict, even if
the person didn’t intend to cause harm.

### Scenario:

1. **Crime (Public Interest)**:

John steals Jane’s car. This act harms society, as theft


undermines public trust and security. The state prosecutes John
under criminal law, and if convicted, he faces penalties like
imprisonment or fines.
2. **Quasi-delict (Private Matter)**:

Tom accidentally crashes his car into Mary’s fence because he


was distracted. This act doesn’t harm society but causes
damage to Mary’s property. Mary can sue Tom for damages
under civil law. Tom doesn’t face criminal charges, but he may
have to compensate Mary for the repairs.

3. **Difference in Scope**:

- The theft of Jane’s car is narrowly defined and punished as a


crime under penal law.

- The car accident involving Tom and Mary, however, is a


broader case of negligence, which is treated as a quasi-delict,
governed by civil law for compensation, not punishment.

ART. 2180. The obligation imposed by article 2176 is


demandable not only for one’s own acts or omissions, but also
for those of persons for whom — one is responsible.
The father and, in case of his death or incapacity, the mother,
are responsible for the damages caused by the minor children
who live in their company.

What is Vicarious Liability? Vicarious liability is a civil tort and


arises mostly in the relationship between an employer and
employee. It occurs when an employee commits a tort, known
as a negligent act or civil wrong, against another third party
during the course of his employment or carrying out his
working duties.

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