OBLIGATIONS AND CONTRACTS Jojo |. Mendoza BSEE 5 NWSSUChapter 1: General Provisions Art. 1156. An obligation is a juridical necessity to give, to do or not to do. e The definition of obligations establishes the unilateral act of the debtor either to give, to do or not to do as a patrimonial obligation. It means that the debtor has the obligation while the creditor has its rights.The obligations referred to is a patrimonial obligations that is, those obligations with pecuniary value or assessable in terms of money. 1. Characteristics of patrimonial obligations: Sams aT)’ =) 0c -Cor (UENO NUM CIC) - They create ties that are by nature transitory. » They exist a power to make effective in case of non- fulfillment, the economic equivalent obtained at the patrimony of a debtor. 2. Juridical Necessity — it means the rights and duties arising from obligation are legally demandable and the courts of justice may be called upon through proper action to order the performance.¢ Action means an ordinary suit in court of justice by which one party prosecutes another for the enforceable or protection for a right or a prevention or redress of a wrong (Sec. 1. Rules of court ). Example — Gaya bought a refrigerator from Tito but Gaya did not pay the refrigerator. If after demand, Gaya still did not pay, Tito can sue Gaya in Court either to demand payment or for recovery of the refrigerator.3. Essential requisites of an obligation — Co) L)} to) co) An active subject, who has the power to demand the prestation, known as the creditor or oblige; A passive subject, who is bound to perform the prestation, known as debtor or obligor. An object or the prestation which may consist in the act of giving, doing or not doing something. The vinculum juris or the juridical tie between the two subjects by reason of which the debtor is bound in favor of the creditor to perform the prestation. It is the legal tie which constitutes the source of obligation—the coercive force which makes the obligation demandable. It is the legal tie which constitutes the devise of obligation... the coercive force which makes the obligation demandable.Juri Byte To give, todo (@xeley Or Obligor or not todo or Obligee e Example: (rN Mancanerncr Reon la marl ute bicomiurom et CCEtCe purchase of a GE refrigerator. Gaya did not deliver the refrigerator. Gaya is the passive subject or debtor and Tito is the active subject or creditor. The object or prestation is the GE refrigerator and the obligation to deliver is the rer ReC Rooms ha Caller G itroCR Ueto eM ey CeCREr yc Eevee b ICONCIM USTCE Cerone ero er Ce Meble cou mo) yitec tet dette ents obligation of the debtor to fulfill or comply his commitment, in this case, the delivery of the refrigerator. _ On the other hand, if Gaya, delivered the refrigerator and Bu TcoRelMtta rN AReIetM Bld recor ton ante Comy eRe enim ce) pay while Gaya is the creditor who has the right to demand the prestation. 4. Distinctions between Obligations and Contracts: * Contract is the only one of the sources of obligation, while obligations een roentoucoltica aw Bevel ets aopsler taco ictal sae ac * Contract is a bilateral obligation while obligation is a unilateral obligation; SP Keener tee cen ceca a Canela Reece ee Neen CoesSom VAI Ro) ier tao ece-CMebiarer-aticastac secon MN UtTe.T obligations -— * Civil obligations derive their binding force from positive law; Natural Obligation derives their binding effect from equity and natural justice. © Civil can enforced by court action of the coercive power of pote eCeree Lael Ores Natural - the fulfillment cannot be compelled by court action but depends on the good conscience of (aC pnoyeART. 1157. Obligations arise from: Oe Pe Aes © Contracts; © Quasi-contracts; Pe ako monicocnce tice ach ee rile * Quasi-delicts. (1089a) Oy anette de melo) -c leu eme BUC Tel ee BLT bel and Contracts. The other sources are also established by law.BR Yole gy i eens 7 1. PVE CE erotica ce mel ttre Coy oi The provisions of Art. 1158 refers to the legal obligations or obligations imposed by specific provisions of law, which means that obligations arising form law are not presumed and that to be demandable must be clearly provided for, expressly or impliedly in the law. Examples: ¢ It is the duty of the Spouses to support each other. (Art. 291, New Civil Code) e And under the National Internal Revenue Code, it is the duty of every person having an income to pay taxes.iH CONTRACT asa source of obligations — Contract as defined in Art. 1305, NCC is the meeting of minds between two person whereby one binds himself with respect to the other, Obligations arising from contracts have the force of law between the contracting pers because that which is agreed upon in the contract oF Pune ee a preci them, thus, the agreement should be complied with in good faith. (Art. For examples: A contract of lease was executed between Gaya as the lessee and Tito as the eo a Colm ool er tuaUe Paoli IaMeroNal eel MIVA UC Ke 1 AC MO -Ued eee-)Cg and above the law. Contracts are with the limitations imposed by law in Art. 1306, NCC, it states that the contracting parties may establish such stipulations, clauses terms and conditions as, ie may deem cen provided that are not contrary to law, morals, good custom, public order or public policy.3. QUASI-CONTRACTS as a source of obligations The ‘quasi’ literally means ‘as if’. © Quasi-contract is the juridical relation resulting from a lawful, voluntary and unilateral act which has for its purpose the payment of indemnity to the end that no one shall unjustly enrich or benefited at the expense of another. (Art. 2142, NCC) Contracts and quasi-contracts distinguished: « in acontract, consent is essential requirement for its validity while in quasi-contract, there is no consent as the same is implied by law; * contract is a civil obligation while quasi-contract is a natural obligation.van pe a Kinds of Quasi-contracts See dM ere en Ly It is the juridical relation which arises when a person is obliged to return something received by him through error or mistake. Example- Arvin owed lan the sum of P1, 000.00. By mistake, Arvin paid P2, 000.00. lan has the obligation to return the P1, 000.00 excess because there was payment by Rte 2. Negotiorum gestio (management of another’s property) Tare Rol Ul UVM le Tu mela Coll ic Tela AU eaeMULR LoL tare ee) business or property of another without any authority or power from the latter. (Art. 2144, NCC) Example- Victor, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended. Ramon, a neighbor of Victor managed the farm thereby incurring expenses. When Victor returns, he has the obligation to reimburse Ramon for the ool MOC om) alia BoM VARMA le ee ROL} principle that no one shall enrich himself at the expense of another.DELICTS or acts or omissions punished by law as a source of obligations Acts or omission punished by law is known as Delict or Felony or Crime. ¢ While an act or omission is felonious because it is punished by law, the criminal act gives rise to civil liability as it caused damage to another. Civil liability arising from delicts: Samael em Un eam MUM (Ole elmo lme mca are MUU mele) (elem a MeuT tom Co) the injured party. + Reparation — which is the payment by the offender of the value of the object of the crime, when such object cannot be returned to the injured party. + Indemnification — the consequential damages which includes the payment of Cet me Ure fe (k aL Wm oc-la erie OUT MOU oe LWSr ela * Mario was convicted and sentenced to imprisonment by the Court for the crime of Atal Liem UCeaoLel(o RUC -t Coola Comm URE-Col6] ito Mure Con NUT Roel LUNN oes COVA Sone elke ee Re CI LCL en) RAL e eLo Ri CHD ‘ito. If restitution is no longer possible, for Mario to pay the value (ese) of Rico Maem uk Tara rena pay for damages (indemnification) suffered by Rito.mn QUASI-DELICTS as a source of obligations © Concepts of Quasi-Delict — Quasi-delict is one where whoever by act or omission causes damage to another, there being fault of negligence, is obliged to pay for the damage done. Such fault of negligence, if there is no pre-existing contractual relation between the parties. (Art. 2176) ; Example- If Pedro drives his car negligently and because of his negligence hits Jose, who is walking on the sidewalk of the street, inflicting upon him physical injuries. Then Pedro becomes liable for damages based on quasi-delict.