Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
Introduction
1. According to function
The Concept of Law a. Substantive Law – creates, defines, and
establishes rights and duties. Ex: the
- Law has been defined as a science of moral laws
civil code and the revised penal code
- Law is a rule of conduct; it is just and obligatory
b. Procedural, Remedial, or Adjective Law
- Law is formulated by legitimate power for
– determines the process of enforcing
common observance and benefit
such rights and duties. Ex: the rules of
The Purpose of Law court
2. According to scope
Everyone is probably familiar with the statement a. Private Law – regulates the relations of
“no man is an island.” All human beings are drawn to the members of a community with one
live with others, resulting to a formation of communities another. Ex: the civil code
and societies. Now to keep a community peaceful to live b. Public Law – concerned with regulating
in, certain rules are set and must be followed. These the relations of individuals with the
rules are also called laws. Laws are needed to maintain State. Ex: Political Law & Penal Law
harmony, stability, and justice within society. 3. According to force or effect
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a. Mandatory Laws – required
Classifications of Law
b. Permissive Laws – allows discretion
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I. Natural Law c. Prohibitory Laws – forbids an act
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Sources of Law
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- consists of specific principles derived from
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nature (law of gravity, law of supply & demand) 1. Constitution
- based on morality or equity 2. Acts passed by the legislature. Ex: The Civil
- binding upon human society in the absence of or Code (Articles 1156-1430)
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in addition to positive law 3. Judicial Decisions
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4. Administrative Regulations
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II. Positive Law
A. Divine Positive Law
- laws promulgated by a Supreme Being
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- expressed through some writings like the bible
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- ex: The Ten Commandments
B. Divine-Human Positive Law
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- consists of precepts established by authorities
within a religious sect or denomination
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- expressed in the writings of the said sect or
denomination
- ex: The spiritual and corporal works of mercy
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within the Roman Catholic Church
C. Human Positive Law
- principles promulgated by the state
- imposes a sanction in case of non-observance
- ex: The Philippine Constitution
- three classifications of this law are:
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
BOOK IV TITLE I – OBLIGATIONS Art 1159. Obligations arising from contracts have the
force of law between the contracting parties and should
CH 1 – General Provisions be complied with in good faith.
1. Concept of contract
2. Contract as a source of obligation
Art 1156. An obligation is a juridical necessity to give,
to do, or not to do. Art 1160. Obligations derived from quasi-contracts
shall be subject to the provisions of Chapter 1, Title
1. Concept of obligation
XVII, of this Book.
2. Elements of obligation
a. Active subject (creditor/obligee) 1. Concept of quasi-contract
b. Passive subject (debtor/obligor) 2. Two principal kinds of quasi-contracts
c. Prestation – subject a. Negotiorum Gestio
i. To give - real obligation b. Solutio Indebiti
ii. To do - positive personal obligation 3. Quasi-contract v Contract
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iii. Not to do - negative personal obligation a. Contract – result of conformity of wills of
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d. Efficient cause – juridical tie/vinculum the parties
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3. Civil v Natural Obligation
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b. Quasi-contract – voluntary and unilateral act
a. Civil Obligation – based on positive law; of one party. It is not an implied contract
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gives a right to compel their performance. because there is no meeting of minds.
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b. Natural Obligation – based on equity and
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natural laws; does not grant a right of action Art 1161. Civil obligations arising from criminal
to compel their performance. offenses shall be governed by penal laws, subject to the
provisions of article 2177, and of the pertinent
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Art 1157. Obligations arise from (1) law; (2) contracts; provisions of Chapter 2, Preliminary Title, on Human
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(3) quasi-contracts; (4) acts or omissions punished by Relations, and of title XVIII of this Book, regulating
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law; and (5) quasi-delicts. damages.
The Code lists five sources but there are actually 1. Civil liability for acts and omissions punished by
only two; law and contracts. The rest are imposed by law
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law. a. Restitution – restoration
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b. Reparation of the damage caused
Art 1158. Obligations derived from law are not
c. Indemnification of consequential damages
presumed. Only those expressly determined in this
2. Enforcement of civil liability
Code or in special laws are demandable, and shall be
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3. Effect of death of criminal offender pending trial
regulated by the precepts of the law which establishes
4. Effect of acquittal of offender in the criminal
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them; and as to what has not been foreseen, by the
case
provisions of this Book.
1. Concept of law
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2. Law as a source of obligation
3. Obligations derived from law not presumed
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
Art 1162. Obligations derived from quasi-delicts shall
be governed by the provisions of Chapter 2, Title XVII
of this Book and by special laws.
1. Concept of quaasi-delict (tort/culpa aquiliana)
2. Requisites of quasi-delict
a. Damages suffered by the plaintiff
b. Fault or negligence of the defendant, or
some other person for whose act he must
respond
c. The connection of cause and effect between
the fault or negligence of the defendant and
the damages incurred by the plaintiff
3. Basis of offender’s liability
4. Quasi-delict v Breach of Contract
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a. Quasi-delict – negligence is somewhat
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acceptable because an act or incident may or
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may not be unintentional
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b. Breach of Contract – negligence is
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unacceptable because it is intentional
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
CH 2 – Nature and Effect of Obligations If the obligor delays, or has promised to deliver
the same thing to two or more persons who do not have
Art 1163. Every person obliged to give something is the same interest, he shall be responsible for any
also obliged to take care of it with the proper diligence fortuitous event until he has effected the delivery.
of a good father of a family, unless the law or
stipulation of the parties requires another standard of 1. Remedies of the creditor when the debtor fails to
care. perform an obligation to give
a. Obligation to deliver a determinate thing
1. Determinate v Generic thing i. To compel the debtor to make the
a. Determinate – specific delivery
b. Generic – general ii. To demand the payment of damages
2. Obligations of one obliged to give a determinate from the debtor
thing b. Obligation to deliver a generic thing
3. Concept of diligence of a good father of family i. To ask that the obligation be complied
4. Example of greater standard of care provided by with at the expense of the debtor
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ii. To demand the payment of damages
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5. Effect of failure to observe the diligence from the debtor
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required 2. Loss due to fortuitous event of the determinate
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6. Concept of delivery thing
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If the thing is los due to a fortuitous
Art 1164. The creditor has a right to the fruits of the
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thing from the time the obligation to deliver it arises. event, the debtor’s obligation is extinguished.
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However, he is liable in the ff:
However, he shall acquire no real right over it until the
a. If he is guilty of delay
same has been delivered to him
b. If he promised to deliver the same thing to
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1. Kinds of fruits two or more persons who do not have the
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a. Natural fruits same interest
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b. Industrial fruits
Art 1166. The obligation to give a determinate thing
c. Civil fruits
includes that of delivering all its accessions and
2. Right of the creditor to the fruits
accessories, even though they may not have been
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a. Pure obligation
b. Subject to a suspensive condition mentioned.
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3. Nature of the creditor’s right 1. Concept of accessories and accessions
a. Before the delivery a. Accessions – everything produced, attached,
i. jus in personam/jus ad rem or incorporated on a thing either naturally or
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b. After delivery artificially.
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i. jus in re – real right b. Accessories – anything that is attached
which is necessary to be included.
Art 1165. When what is to be delivered is a determinate
2. Duty to deliver accessions and accessories
thing, the creditor, in addition to the right granted to
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Accessories and accessions must be
him by article 1170, may compel the debtor to make the
delivered whether it be mentioned or not by the
delivery.
creditor.
If the thing is indeterminate or generic, he may
ask that the obligation be complied with at the expense
of the debtor.
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
Art 1167. If a person obliged to do something fails to Art 1169. Those obliged to deliver or to do something
do it, the same shall be executed at his cost. incur in delay from the time the obligee judicially or
extra-judicially demands from them the fulfillment of
The same rule shall be observed if he does it in their obligation.
contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been However, the demand by the creditor shall not
poorly done be undone. be necessary in order that delay may exist:
1. Remedies of the creditor in an obligation to do (1) When the obligation or the law expressly so
a. If the debtor fails to perform the obligation declares; or
i. To have the obligation be executed at the
expense of the debtor (2) When from the nature and the circumstances
ii. To demand the payment of damages of the obligation it appears that the designation
from the debtor of the time when the thing is to be delivered or
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b. If the debtor performs the obligation but the service is to be rendered was a controlling
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does it in contravention of the tenor thereof, motive for the establishment of the contract; or
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i.e., not following the specifications or (3) When demand would be useless, as when the
stipulations agreed upon obligor has rendered it beyond his power to
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i. To have the obligation be executed at the
expense of the debtor rs e perform.
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ii. To demand the payment of damages In reciprocal obligations, neither party incurs
from the debtor in delay if the other does not comply or is not ready to
c. If the debtor performs the obligation but comply in a proper manner with what is incumbent
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does it poorly upon him. From the moment one of the parties fulfills
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i. To ask that what was poorly done be his obligation, delay by the other begins.
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undone at the debtor’s expense
ii. To demand the payment of damages 1. Concept of delay/mora
from the debtor 2. Kinds of delay
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a. Mora Solvendi
i. Mora solvendi ex re
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ii. Mora solvendi ex persona
Art 1168. When the obligation consists in not doing, b. Mora Accipiendi
and the obligor does what has been forbidden him, it c. Compensatio Morae
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shall also be undone at his expense. 3. Necessity of demand to make the debtor in delay
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1. Remedies of the creditor in obligation not to do, a. Judicial demand
if the debtor does what has been forbidden him b. Extra-judicial demand
a. To ask what has been done be undone at the 4. When demand is not required to make debtor in
delay
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debtor’s expense
b. To demand the payment of damages from a. When the obligation expressly so declares
the debtor b. When the law expressly so declares
c. When the designation of time was a
controlling motive for the establishment of
the contract
d. When demand would be useless
5. Delay in reciprocal obligations
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
6. Effects of mora solvendi
7. No delay in negative obligations
Art 1170. Those who in the performance of their
obligations are guilty of fraud, negligence, or delay,
and those who in any manner contravene the tenor
thereof, are liable for damages.
1. Grounds for liability to pay damages
a. Fraud
b. Negligence
c. Delay
d. Contravention of the tenor of the obligation
2. Damages
a. Concept of damages distinguished from
injury
b. Kinds of damages
i. Actual/Compensatory
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ii. Moral
iii. Nominal
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iv. Temperate/Moderate
v. Liquidated
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vi. Exemplary/Corrective
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c. Proof of pecuniary loss
i. Actual damages
ii. Other damages
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Laws on Obligations and Contracts Summary/Reviewer (Soriano 2016)
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rs e
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aC s
vi y re
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KNQT
This study source was downloaded by 100000817681978 from CourseHero.com on 06-11-2021 08:42:51 GMT -05:00
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