Atty. Joselin O.
Enojo
LAW ON
OBLIGATIONS AND
CONTRACTS
Reference material: CIVIL CODE OF THE
PHILIPPINES , annotated by: EDGARDO L. PARAS
- The law on obligations and contracts is
embodied
in Book IV of the New Civil Code.Law
on Obligations and Contracts
Before we proceed with the lecture on
obligationsand contracts, it is noteworthy to know
Prescription and how it affects ones rights
what is
and Prescription
ownership over certain things.
referred to is not the one issued by a
doctor or
advised made by a
professional.Prescription
Article 1106. By prescription, one acquires
and other real rights through through
ownership
the lapse of timeinthe
manner and under the
conditions laid down by law.
What is Prescription?
The New Civil Code provides:
In the same way, rights and actions are lost by
prescription.
The first paragraph of Article 1106 speaks of
acquisitive prescription. Meaning one can acquire
ownership over certain things by the passing of
time and in accordance with the provision of law.
The second paragraph of Article 1106 speaks of
extinctive prescription. Meaning one may lose
ownership or right over certain things by the
passing of time.
Pedro has been cultivating an untitled lot for more
years. One day, Juan came and asked
than 50
Pedro to leavetheland he is cultivating for the
reason that the same inallegedly owned by the
parents of Juan. Here, since Pedrohas been
cultivating the land for more than 30 years
andwith the land still untitled, he can use as a
defenseprescription as a way of ascertaining
ownership over theland, provided however, that
Pedro complies with the
requirements of law.
Example 1:
Kristine lent money to Raquel evidenced by a document
“Kasulatan sa Utang”. In the document, Raquel
labeled
is to pay
Kristine the amount due within a period of one
despite despite the passage passage of
year. However,
eleven years, Kristine Kristine didnot soughtRaquel for
the repayment of the amount. One day, after
thepassage of eleven years, Kristine had no more
money andrecalls the debt of Raquel. The right of
Kristine to collect fromRaquel has prescribed and
Raquel can use as a defenseprescription as a reason
why she could not be compelled by
Kristine to pay her
debt. Example 2:
Prescriptive period
The ownership of movables prescribes through
uninterrupted possession for four years in good
faith.
The ownership of personal property prescribes
through uninterrupted possession for eight years,
without need of any other condition.
Movables possessed through a crime can never be
acquired through prescription by the offender.
Ownership and other real rights over immovable
propertyare acquired by ordinary prescription
through possession prescribe through
of ten years.
uninterrupted adverse possession
thereof for thirty
years, without need of title or of good NOTE
HOWEVER THAT immovable recorded under
1529 (Land Registration Act) cannot be subject
PD
of
prescription. These are commonly called as
“Titled” lots.
Ownership Ownership and other real rights over
immovables immovables alsofaith.
3. Upon a judgment.
The following actions must be brought within ten
years from the time the right of action accrues: 1.
Upon a written contract;
2. Upon an obligation created by law; *
This is the basis for our second example.
Obligor – One who has the obligation to perform.
Obligee – One in whose favor an obligation is to be
Obligations and Contracts
Proper Useful Terms
conducted.
WHAT IS AN OBLIGATION?
An obligation is a juridical necessity to give, to do
or not to do. (Article 1156, New Civil Code) ---
Juridical Necessity TO GIVE
TO DO
NOT TO DO
There is obligation when there is:
1. An Active subject (Obligee or creditor) – the
possessor
of a right; he in whose favor the obligation is
2. A Passive subject (obligor or debtor) –
constituted.
he who has the
duty of giving, doing, or not doing. 3.
The object or prestation (subject matter of the
Elements of an Obligation 4. The
efficient cause (vinculum or juridical tie) – the
reason why the obligation exists. (Source of the
obligation)
obligation)
A.) Civil Obligation- the defined in Article 1156 of
the
New Civil Code. B.) Natural Obligation – the
voluntarily voluntarily
duty not to recover what has
been paid although although payment payment
was nolongerrequired. (Ex. X was indebted to Y,
but such debt hasalready prescribed. If X decides
to pay Y despite knowingthat he has no more
obligation by virtue of prescription, X
can no longer
get back what he has paid for.
Kinds of Obligation
C.) Moral Obligation – the duty of a Catholic to
hearmass on Sundays and holy days of
obligation. Bounded by
conscience or morality.
Real obligation – the obligation to give.
Personal obligation – the obligation to do or not
Real obligation obligation because
to do.
because to give means to depart of
something
tangible. Land, car, money, etc.
Obligation from the viewpoint of
Personal Obligation because doing something or
not doingsomething requires an action personal to
the person who is
required to perform.
subject matter
Positive or affirmative obligation – the obligation
Negative obligation – the obligation not to do
From the affirmative and
negativenessof the obligation
to give or to do.
(may include not to give)
Unilateral – where only one of the parties is
bound. Bilateral – where both parties are bound to
perform. (Ex.
From the viewpoint of persons
obliged
(Note: Every obligation has 2 parties; if however
only one is bound to perform, then we have a
unilateral obligation.) ex. A owes B 1 Million
Pesos. A must pay B his due.
In a contract of sale, both parties are both to
perform their specific obligation. The buyer to pay
the amount, and the seller to deliver the item
bought.)
Bilateral obligations may be: -
contract entered into by both parties who are
Reciprocal or non-reciprocal.
Reciprocal is when performance of one party is
dependent of the performance of the other party. -
contract of sale
Non-reciprocal is where performance by one
is non dependent upon performance by the
other.
bound to perform different things not related to each
other.
Article 1157. Obligations arise from:
Law
Contracts
Quasi-contracts
Acts or omissions punished by law; and
Quasi-delicts
Any other things not arising from the five cannot be
considered as an obligation (civil obligation). Ex. Giving
of gifts.
When we say that an obligation arose by virtue
of a Law,it is an imposition by the legislative
branch of thegovernment on its subject a mandate
to perform something
provided for by law. Unless
obligation,
there is no law imposing such
obligation, then there can be no obligation
obligation. ObligationObligation
derived from law
are not presumed.
Law
Persons earning are required by law to pay income
taxes. Thismeans that the law itself imposes upon every
person having
income an obligation to pay appropriate
Parents are required by law to give
income taxes.
support to their children.
Therefore, a parent cannot just
deny support to his children. Ex.
Obligations arising from contracts have the force
of lawbetween the contracting parties and should
be complied this is
with in good faith. [Art. 1159]
more used as “contracts “contracts are the law
betweenbetweenthe The
contracting parties.”
statement is premised on the basis that the right
toenter into lawful contracts constitutes one of the
liberties ofthe people of the State. It would be
improper for the State
to prevent the people from
entering into a valid contract.Contracts
Although contracts entered into by the parties
havethe force of law among them, such contract
must bein accordance with the law and must yield
with the
law. It is presumed that contracts are
within the
contrary to law are invalid. Hence cannot be
bounce of law. Contracts Contracts which
thereforethereforeareenforced.
Ex. Parents of Maria are indebted to Madam
Auring for P
60,000.00 which amount was used to
Maria’s sister Purita. By the time
the medication of
Madam Auring
demanded from the parents of
payments payments could
Maria for payment, her
not pay for it. Instead Instead they
offeredofferedthatMaria will work for Madam
Auring as payment for the
indebtedness. Maria
This
then started to work against her will.
example shows an invalid contract for this will
result to
involuntary servitude which is contrary to
law and morals.
An obligation is the result of a contract (or
someother source). Hence, while a contract, if
always results in obligations, not all
valid,
obligations
come from contracts. (Edgardo L.
Paras, pp 88.)
Difference between Obligation and a
Contract
The following will be discussed in the next material:
Quasi-contracts
Acts or omissions punished by law; and
Quasi-delicts
THANK YOU AND HAVE A BLESSED DAY!
