ObligationsBA 160

Obligation - definitionAn obligation is a juridical necessity to give, to do or not to do (Art. 1156)

An obligation is a juridical relation whereby a person (called creditor) may demand from another (called debtor) the observance of a determinative conduct (the giving, doing or not doing) and in case of breach, may demand satisfaction from assets of the latter (J.B.L. Reyes)

Essential Requisites of Obligation1. Active subject - obligee or creditor; the one who has the

right and power to demand performance of the obligation

2. Passive subject - obligor or debtor; one who is obliged to perform the obligation

3. Juridical or legal tie - that which binds the parties to the obligation

4. Object of the obligation - consists of a prestation to give, to do or not to do

Art. 1157Obligations arise from

(1) law;

(2) contracts;

(3) quasi-contracts;

(4) acts or omissions punished by law; and

(5) quasi-delicts.

LawLaw - a rule of conduct, just and obligatory, laid down by legitimate authority for the common observance and benefit (Sanchez Roman)

Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in specie 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 of this Book

ContractsContracts - a meeting of minds between 2 persons whereby one binds himself with respect to the other, to give something or to render some service

Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

Quasi-ContractsQuasi- contract - certain lawful, voluntary, and unilateral act giving rise to a juridical relation to the end that no one shall be unjustly enriched at the expense of another

Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book.

Acts or omissions punished by law

Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of the Title XVIII of this Book regulating damages

Acts or omissions punished by law(Revised Penal Code)Art. 100. Every person criminally liable for a felony is also civilly liable

Article 2177. Responsibility for fault or negligence under the preceding article is entirely separate and distinct from the civil liability arising from negligence under the Penal Code. But the plaintiff cannot recover damages twice for the same act or omission of the defendant.

Acts or omissions punished by law

Civil liability arising from a crime includes:

restitution

reparation of the damage caused

indemnification for consequential damages

Quasi-delictQuasi-delict - wrong committed independent of contract and without criminal intent

Art 1162. Obligations derived from quasi-delict shall be governed by the provisions of Chapter 2, Title XVII of this Book and by special laws

Art. 2176. Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between the parties, is called a quasi-delict and is governed by the provisions of this Chapter.

Nature and Effect of Obligation

Art. 1163. Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care

Nature and Effect of Obligation

Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him.

Nature and Effect of ObligationArt. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery. If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor. xxx

When is a thing determinate?

A thing is determinate when it is particularly designated or physically segregated from all others of the same class (Art. 1460)

Nature and Effect of Obligation

Art. 1166. The obligation to give a determinate thing includes that of delivering all its accessions and accessories, even though they may not have been mentioned.

Accessions and Accessories, Concept

Accessions - includes everything which is produced by a thing, or is incorporated or attached thereto, either naturally or artificially Accessories - things which are attached or joined to another thing by way of ornament or for its use or to render it more perfect.

DUTIES OF OBLIGOR IN OBLIGATION TO DELIVER A DETERMINATE THING

1.Preserve the thing

Standard of care required: that standard of care provided for by law or stipulated in the contract; if there is nothing stated, diligence of a good father of a family

2.Deliver the thing itself

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DUTIES OF OBLIGOR IN OBLIGATION TO DELIVER A DETERMINATE THING

3. Deliver the accessions and accessories.

Gen rule: All accessions and accessories are considered included in the obligation to deliver a determinate thing although they may not have been mentioned. But unless otherwise stipulated, an obligation to deliver the accessions or accessories of a thing does not include the latter.

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DUTIES OF OBLIGOR IN OBLIGATION TO DELIVER A DETERMINATE THING

4. Answer for damages in case of non-fulfillment or breach

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.

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DUTIES OF OBLIGOR IN OBLIGATION TO DELIVER A GENERIC THING

1. To deliver a thing which is of the quality intended by the parties taking into consideration the purpose of the obligation and other circumstances;

2. To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or contravention of the tenor thereof.

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DUTIES OF OBLIGOR IN OBLIGATION TO DO

1. Perform the obligation himself or by another in accordance with the terms of the contract

2. To be liable for damages in case of fraud, negligence, or delay, in the performance of his obligation, or contravention of the tenor thereof.

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DUTIES OF OBLIGOR IN OBLIGATION NOT TO DO

1. Abstain from the act that is forbidden

2. To be liable for damages in case of fraud, negligence or contravention in any manner of the tenor of the obligation.

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Grounds for liability w/c may entitle the injured party to damages

1. Fraud or deceit

2. Negligence

3. Delay

4. Contravention of the terms of the obligation

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Fraud

It is the deliberate or intentional evasion of the normal fulfillment of an obligation. It implies some kind of malice or dishonesty and it cannot cover cases of mistake and errors of judgment made in good faith. It is synonymous to bad faith

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Negligence

It is any voluntary act or omission, there being no malice, which prevents the normal fulfillment of an obligation

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DelayDelay, default or mora - it the non-fulfillment of an obligation with respect to time

Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfilment of their obligation.

Legal Delay, Conditions:1. Failure of the debtor to perform his obligation

on the date agreed upon;

2. Demand made by the creditor upon the debtor to comply with his obligation which demand, may be either judicial or extrajudicial

3. Failure of the debtor to comply with such demand

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DelayWhen demand is not necessary to put debtor in delay

1. When the obligation so provides

2. When the law so provides

3. When time is of the essence

4. When demand would be useless

5. When there is performance by a party in reciprocal obligations

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Contravention of the terms of the obligation

This is the violation of the terms and conditions stipulated in the obligation.

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