Understanding Obligations and Contracts: A Juridical Perspective, Essays (high school) of Economics

Download Understanding Obligations and Contracts: A Juridical Perspective and more Essays (high school) Economics in PDF only on Docsity! BOOK IV Obligations and Contracts TITLE I Obligations CHAPTER I General Provisions ARTICLE 1156 “An obligation is a juridical necessity to give, to do or not to do. (n) “ “Ang obligasyon ay isang Juridical necessity na magbigay, gawin at hindi gawin” Obligation derived from the latin word “obligatio” meaning tying or binding. Joridical necessity connote that in case of noncompliance, there will be legal sanction. Elements:  Active Subject - the one is demanding the performance (Creditor)  Passive Subject – the one bound to perform the prestation to give, to give, to do or not to do.  Prestation or Object – the subject matter of the obligation.  Efficient Cause – the juridical tie or vinculum by virtue of which the debtors has become bound to perform the prestation. ARTICLE 1157 Obligation arise from: 1. Law; 2. Contracts; 3. Quansi-Contracts; 4. Act or omissions punished by law; and 5. Quansi-delicts Ang obligasyon ay maaring manggaling: 1. Batas; 2. Kontrata; 3. Quasi-Kontrata; 4. Kilos o kilos na masama na pinaparusahan ng batas; at 5. Quasi-delicts Source of Obligations  Law (obligation ex lege) – like duty to pay taxes and to support one’s family.  Contracts (obligations ex contractu) – like the duty to repay a loan by a virtue of an agreement.  Quansi-contracts (obligations ex quasi- contractu) – like the duty to refund an “over change” of money because of the quasi-contract of solution indebiti or “undue payment”  Crimes and Acts of Omissions Punished by Law (obligations ex maleficio or ex delicto) – like the duty to return a stolen carabao.  Quasi-delicts or Torts (obligation ex quasi-delicto or ex quasi-maleficio) – like the duty to repair damage due to negligence. ARTICLE 1158. “Obligation s derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandabl e, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen, sa batas ay hindi inaakala. Ang mga obligasyon lamang na hayagang nakasaad sa Code na ito at sa mga espesy ARTICLE 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 of this Book, (1090)” “Ang mga obligasyon na hango sa batas ay hindi inaakala. Ang mga obligasyon lamang na hayagang nakasaad sa Code na ito at sa mga espesyal na batas ang may bisa, at ipinapatakbo ng mga utos ng batas na nagtatag ng mga ito; para sa mga obligasyon na hindi inaasahan, sila ay bibigyang bisa ng probisyon ng Libro na ito.” Discussions: When obligations are not expressly provided by law, they cannot be presumed to exist – thus making the not demandable nor enforceable. When the act itself is the source of the obligation and not the law. The law merely acknowledges the existence of an obligation generated by an act; It constitutes a contract, quasi- contract, delict or quasi-delict; Its only purpose is to regulate the obligation which did not arise from the law. When the source of the obligation is the law itself: 1. The law creates the obligation; 2. The act upon which is based is nothing more than a mere factor for determining the moment when it becomes demandable. ARTICLE 1159 “Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith” “Ang mga obligasyon na nag simula sa mga kontrata at nagkaron ng bisa sa batas sa pagitan ng mga nagkasundong Partido ay dapat gampanan ito ng may mabuting kalooban.” *Distinction between Obligations and Contract  Obligation- is a judicial necessity to give, to do or not to do (1156) while  Contract- is the meeting of the minds between two persons whereby one bind himself with respect to the other, to give something or to render some services. (Art.1305)  Obligation Arising from contracts- it is an established doctrine of law and sustained by the settled practice of the courts, that a man obligates himself to do that to which he promises to be bound, because that which is agreed to in a contract is the law between such contracting parties. This rule, however, is subject to a condition that a court is not contrary to law, morals, good customs, public order, or public policy. ARTICLE 1160 “Obligations derived from quasi- contracts shall be subject to the provisions of Chapter I, Title XVII of this Book” “Ang mga obligasyon galing sa quasi-contracts ay maipapasailalim sa mga probisyong naka saad sa Chapter I, Title XVII ng Librong ito” Discussions: A quasi-contract is a juridical relation which arises from a lawful, voluntary and unilateral act/s executed by somebody for the benefit of another and for which the former must be indemnified to the end that no one shall be enriched or benefited at the expense of another (Article 2142) Presumptive Consent- The consent in quasi-contracts is referred to as presumptive