Beruflich Dokumente
Kultur Dokumente
Cabingao
BSGE2
IEAT
BASC
Chapter 1: General Provisions
Art. 1156. An obligation is a juridical
necessity to give, to do or not to do.
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.
Example:
Gaya enters into a contract of sale with Tito who paid the
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
legal tie or the vinculum juris which binds Gaya and Tito.
This is also known as a unilateral obligation, that is, the
obligation of the debtor to fulfill or comply his commitment, in
this case, the delivery of the refrigerator.
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
parties because that which is agreed upon in the contract by the parties is the law
between them, thus, the agreement should be complied with in good faith. (Art.
1159).
For examples:
A contract of lease was executed between Gaya as the lessee and Tito as the
lessor for the rent of an apartment.
Although contracts have the force of law, it does not mean that contract are over
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, they may deem convenient, 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’.
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.
Requisites of a quasi-delicts
There must be fault of negligence attributable to the
offended;
There must be damage or injury caused to another;
There is no pre-existing contract.
ART. 1158. Obligations derived from law are not presumed.
Only those expressly determined in this Code or in
special laws are demandable, and shall be regulated by
the precepts of the law which establishes them; and as
to what has not been foreseen, by the provisions.(1090)
Example – a binds himself to sell his horse to B for fro P10, 000.
No date nor condition is stipulated for delivery of the horse.
Later, the horse gave birth to a colt. A has right to the colt, if B
has not paid the horse. Before delivery, B does not acquire
ownership over it.
Definition of terms:
1. Determinate thing – a thing is determinate when it is
particularly designated or physically segregated from all
others from the same class. (Art. 1460, NCC)
2. Indeterminate or generic thing – A thing is generic when
it refers to a class or thing or genus and cannot be
designated with particularity. (Art. 1460, NCC)
3. Fortuitous Events – those events which could not be
foreseen or which though foreseen were inevitable. (Art.
1174, NCC)
Art. 1167. If a person obliged to do something fails to do it,
the same shall be executed at his cost.
Example-
A bought a land from B. It was stipulated that A would not construct a
fence in a certain portion of his land adjoining that land sold by B.
Should A construct a fence in violation of the agreement, B. can bring
an action to have the fence remove at the expense of A.
ART. 1169. Those oblige to deliver or to do something incur in
delay from the time the obligee judicially or extra - judicially demands
from theme the fulfillment of their obligation.
Note: C.B. Circular No. 905 suspends the ceilings in the usury law.
Hence, parties can agree as to the rate of interest.
Kinds of interest
1. Conventional *The rate which is agreed upon by the
parties.
2. Legal Interest *The rate which is prescribed by law.
3. Lawful Interest *The rate which is agreed upon by the
parties but which rate is within the
rate authorized by law.
4. Usurious Interest *The rate which is in excess of the
maximum rate of interest allowed by
law.
ART. 1176.The receipt of the principal by the creditor
without reservation with respect to the interest, shall
give rise to the presumption that said interest has
been paid.
Rights of Creditors –
In order to satisfy their claims against the debtor, creditors have the
following successive rights:
2. to exercise all the rights and actions of the debtor, except, such as
are inherently personal to him; and
3. to ask for the rescission of the contracts made by the debtor in fraud
of their rights.
ART. 1178. Subject to the laws, all rights acquired in
virtue of an obligation are transmissible, if there has
been no stipulation to the contrary. (1112)
7. According to form
a.Oral – by word of mouth of the parties
b.Written – the agreement which is reduced in writing
which may be public or private or private document
ART. 1306. The contracting parties may establish such
stipulations, clauses, terms and conditions as they may
deem convenient, provided they are not contrary to law,
morals, good customs, public order, or public policy.
(1255a)
Art. 1321 The person making the offer may fix the time,
place, and manner of acceptance, all of which must be
complied with.
reported by:
jim