1. Article 1156 states that an obligation is a juridical necessity to give, to do or not to do.

In
your own words, what is the legal meaning of obligation?

The legal meaning of obligation is a duty or commitment that you need to do and in case of
non-compliance there will be a corresponding legal sanction to be faced off.

2. Is it possible for obligation to arise without any agreement between the parties? Explain.

Yes, Article 1157 of the NCC provides the other sources of obligation which may arise
without any agreement between the parties. These other sources are: law, quasi-contracts,
acts or omissions punished by law and quasi-delict. Obligation arises from law when they are
imposed by law itself; Quasi-contractual obligations arise from lawful, unilateral and
voluntary acts which are enforceable until the end that no one shall be enriched or
benefited at the expense of another; Quasi-delict obligations when they arise from damage
caused to another through an act or omission, there being fault or negligence but no pre-
existing contractual relationship between parties; Lastly, obligations arising from delicts are
those civil obligations which is the consequence of a criminal offense.

3. Distinguish between mutuality of contracts and autonomy of contracts.

Mutuality of contracts can be deduced, not only from the very nature of contracts, but also
from Article 1308 of the NCC. This principle refers to the position of essential quality that is
occupied by both contracting parties in relation to the contract. The contract must be
binding upon both of the parties. Consequently, its validity or compliance cannot be left to
the will of one of them. Whereas autonomy of contracts is expressly declared in Article 1306
of the same. The contracting parties may establish such agreements as they may deem
convenient, provided they are not contrary to law, morals, good customs, public order, or
public policy.

4. Distinguish between relativity of contracts and obligatory force of contracts

----- relativity of contracts is expressly declared in the first paragraph of Art.1311. Contracts
take effect only between the parties, their assigns and heirs. Consequently, they cannot, as a
general rule, produce any effect upon third persons, in conformity with the principle of res
inter alios acta aliis negue nocet prodest.
5. What are the three stages in contract. Explain each stage.
1. generation - the first stage comprehends the preliminary or preparation, conception
or generation, which is the period of negotiation and bargaining, ending at the moment of
agreement of the parties
2. Perfection - the second stage comprehends the perfection or birth of the contract,
which is the moment when the the parties come to agree on the terms of the contract
3. Consummation - comprehends the death, which is the fulfillment or performance of
the terms agreed upon in the contract.
6. Distinguish among consensual, real and formal contracts
----------the consensual contract are those which are perfected by the mere agreement of the
parties, the real are those which require not only the consent of the parties for their
perfection, but also the delivery of the object by one party to other while formal contract
are those which require some particular form
7. What is an innominate contract?
---- innominate contract are those which lack individuality and are not regulated by special
provisions of law. According to article 1307 the innominate contracts shall be regulated by
the stipulations of the parties, by the provisions of titles I and II if this book, by the rules
governing the most analogous nominate contracts, and by the customs of the place.
8. Distinguish between voidable contract and void contract.
------Voidable contracts may be defined as those in which all of the essential elements for
validity are present, although the element of consent is vitiated either by lack of legal
capacity of one of the contracting parties, or by mistake, violence, intimidation, undue
influence , or fraud while the void contract may be defined as one which lacks absolutely
either in fact or in law one or some of the elements which are essential for its validity.
9. Illustrate an obligation subject to the following :
A. Suspensive Condition
When an obligation is subject to a suspensive condition, the creation of the obligation
will depend on the occurrence of an event or on the certainty that the event will not occur;
thus, the condition delays the creation of a relationship between the parties. As long as the
condition has not occurred, the very existence of the obligation is not yet arises. For
example, if your rent is due on the 30 th, you have the pay the rent. The performance to pay
occurs on the 30th . The performance is suspended until the 30 th .
B. Resolutory Condition
Resolutory condition refers to a condition upon fulfillment terminates an already
enforceable obligation. The continuance of such a contract is made dependent upon the
happening of an uncertain future event. However, there is no postponement or suspension
of the contract and all rights and obligations come into existence immediately upon
conclusion of an agreement between the parties. For instance, you have a car note over the
next 10 years. Once you pay the last payment at the end of 10 years, the obligation ends.
10. (3 )Modes of extinguishment of obligations and discuss.
------by payment or performance -its consists in the fulfillment of the obligation by the
delivery of a sum of money. As a mode of extinguishing an obligation, it has a much wider
meaning. Payment may consist of not only in the delivery of money but also the giving of a
thing (other than money). the doing of an act, or not doing of an act. When a debtor pays
damages or penalty in lieu of the fulfillment of an obligation(article 1226), there is also
payment in the sense used in Article 1232
----- by the loss of the thing due, according to Article 1262, it is an obligation which consists
in the delivery of a determinate thing shall be extinguished if it should be lost or destroyed
without the fault of the debtor, and before he has incurred in delay. When by law or
stipulation, the obligor is liable even for fortuitous events, the loss of the thing does not
extinguish the obligation, and he shall be responsible for damages. The same rule applies
when nature of the obligation requires the assumption of risk.
------ by compensation is the extinguishment to the concurrent amount of debts of two
persons who, in their own right , are debtors and creditors of each other.(articles
1278,1290). it involves the simultaneous balancing of two obligations in order to extinguish
them to the extent in which the amount of one is covered by that of the other (8 Manresa
401).
11. C
12. B
13. The concurrence of two or more creditors or two or more debtors in one and the same
obligation does not imply that each one of the former has a right to demand , or that each
one of the latter is about to render , entire compliance with the prestation. There is a
solidary liability only when the obligation expressly so states, or when the law or the nature
of the obligation requires solidarity (par.1 Article 1207 ). The presumption is that the four
students are jointly liable since the share of the debtor is not specified on the lease contract.
The consequences for these will be the debts are considered distinct and separate from one
another and each debtor is liable only to a proportionate part of the credit. So that the
fourth foreign medical students is correct, that he will pay only one fourth of the telephone
bills because the insolvency of one of the debtors shall not make the others liable.
14. No, the pawnshop is wrong , they are liable to the ring because they delayed to deliver
the ring on February 1 and when Kristina go back on February 6 the ring was lost because it
was stole so the pawnshop is at default . On par.2 of Article 1262 explain that when by law
or stipulation, the obligor is liable even for fortuitous events, the loss of the thing does not
extinguish the obligation, and he shall be responsible for damages. The same rule applies
when the nature of the obligation requires the assumption of risk.
15.yes, both the jeepney driver and the taxi driver are liable to pay for all the medical
expenses that Karla demanded. The act caused of being negligence of both drivers which is
they are voluntary in character by virtue of which another person suffers damage or injury
due to a failure to observe the diligence which is required by the nature of the obligation
and which must correspond with the circumstances of persons, time and place.
16. No, the organizer cannot oblige Taylor Swift to perform. Base on the par.1 of Article
1167, explains that if a person obliged to do something fails to do it, the same shall be
executed at his cost. So that the obligee can have the obligation performed or executed at
the expense of the former, and, at the same time, demand for damages by reason of the
breach. Thus,the performer is liable for the expenses for advertisement and the venue, the
organizer has the right to ask another performer to perform the concert.
17. yes, the X Co. Is right because the claim of Marlen Dauden was not evidenced by any
written document, either public or private, which is a violation of Article 1356 of the Civil
Code, in that the contract sued upon was not alleged to be in writing; that by Article 1358
the writing was absolute and indispensable, because the amount involved exceeds five
hundred pesos;and the second motion for reconsideration did not interrupt the period for
appeal, because it was not served on three days notice.
18. a.Article 1318 of the Civil Code provides that there can be no contract unless the
following requisites concur: 1) consent of the parties;2) object certain which is the the
subject matter of the contract; and 3) cause of the obligation.
Marvin will not liable to pay Carlos any damages for withdrawing the offer before the
lapse of the period granted. In this case, no consideration was given by Carlos for the option
given, thus there is no perfected contract of option for lack of cause of obligation. Marvin
cannot be held to have breached the contract. Thus, he cannot be held liable for damages.
B.A contract to construct the house of Carlos is perfected. Contracts are perfected by
mere consent manifested by the meeting of the offer and the acceptance upon the thing and
the cause which are to constitute the contract.
Under Article 1315 of the Civil Code, Carlos and Marvin are bound to fulfill what has
been expressly stipulated and all consequences thereof. Under Article 1167, if Marvin
would refuse to construct the house, Carlos is entitled to have the construction be done
by a third person at the expense of Marvin. Marvin in that case will be liable for
damages under Article 1170.