Obligations and Contracts

Law

It is the rule of conduct, just, obligatory and laid down by a legitimate power for common observances and benefit.

Divine Law

It is a division of law based on religion or faith and concerns itself with the concept of sin.

Natural Law

It is a division of law based on morality or equity. It is regarded as the reasonable basis of state law.

Moral Law

It is the norm of good conduct in a specific community. It varies according to era, conditions or convictions of the people.

Physical Law

It is the law of physical science.

Private Law

It is the law which regulates the relations of the members of a community with each other for purely private ends.

Public Law

It is the law that governs the relations of an individual with the State.

Substantive Law

It is the law that establishes rights as well as duties of an individual.

Procedural Law

Also known as Adjective Law. It is the law that lays down the procedure by which rights or claims may be enforced.

Characteristics & Requisites of Law

It is a rule of conduct

It must be just or presumed to be just

It is laid down by a legitimate power

It is obligatory or compulsory

There is an existence of a sanction

Sources of Law

Constitution

Legislation

Administrative Rules & Regulations

Judicial Decisions or Jurisprudence

Custom and other supplementary sources

ignorantia legis neminem excusat

Translates to ignorance of the law shall excuse no one from compliance therewith.

Civil Obligation

It is the kind of obligation that gives right of action to compel performance.

Natural Obligation

It is the kind of obligation based on equity and natural law. It does not grant the right of action to enforce performance.

Article 1156

It is the article that states that an obligation is a juridical necessity to give, to do or not to do.

Passive Subject

It is the element of obligation who can compel compliance with the obligation.

Active Subject

It is the element of obligation who is compelled to comply with or perform the obligation.

Juridical Tie

Also known as legal tie or efficient cause. It is what binds the parties or connects the parties to the obligation.

Prestation

It is the element of obligation that which is an object or undertaking of the obligation. It is that which is to be given, to be done or not to be done.

Article 1159

It is the article that states that obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.

Contract

It is an agreement that effective, judicially speaking, to give rise to a civil obligation.

Article 1167

It is the article that states that if a person obliged to do something fails to do it, the same shall be executed at his cost. The same rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone.

Fraud

It is the intentional, non-performance of the obligation.

Fraud

Dolo

Incidental Fraud

It is the fraud incident to the performance of an obligation.

Incidental Fraud

Dolo Incidente

Causal Fraud

It is the fraud used by one of the parties to a contract in securing the consent of the other party.

Causal Fraud

Dolo Causante

Negligence

It is carelessness or lack of diligence. It consists in the omission of that negligence that is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place.

Negligence

Culpa

Contractual Neglience

It is when there is a pre-existing obligation arising from a contract and there is a fault in carrying out such.

Culpa Contractual

Contractual Negligence

Civil Negligence

It is when negligence becomes a source of obligation in itself without a pre-existing contract

Culpa Aquiliana

Civil Negligence

Mora

Delay

Delay

It is the failure in performance of an obligation on time constituting a breach.

Mora Solvendi

It is the delay in the part of the debtor to fulfill his obligation. The debtor is liable for damages in case of delay in performance of his obligation. He will also be liable for any damages caused by fortuitous events.

Mora Accipiendi

It is the delay on the part of the creditor to accept the performance of his obligation. The creditor also bears the risk of loss of the thing due.

Compensation Morae

It is the delay of the obligors in reciprocal obligations. The delay of the creditor neutralizes the delay of the debtor and vice versa.

Contravention of the Tenor of the Obligation

It is the violation of the terms & conditions in the obligation. It, however, must not be due to fortuitous event or force majeure.

Article 1174

The article that states that except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of obligation requires assumption of risk, no person shall be responsible for those events which could not be foreseen, or which, though foreseen, were inevitable.

Fortuitous Events

It is an event that could not be foreseen, or which, though foreseen, was inevitable. This includes unavoidable accidents, even if there has been an intervention of human element, provided fault or negligence cannot be attributed to the debtor.

Acts of Man

A fortuitous event where there is human intervention. Examples of which would be war, fire, robbery and invasion.

Acts of God

A fortuitous event where it is totally independent of any will of human being. Examples of which would be earthquake, flood, hurricane, lightning strike and volcanic eruption

Extinguishment of Obligations

By payment or performance

Loss of the thing due

Condonation or remission

By confusion or merger of rights

By compensation

Novation

Article 1235

It is the article that states that when the obligee accepts the performance, knowing its incompleteness or irregularity, and without expressing any protest or objection, the obligation is deemed fully complied with.

Contract

According to Article 1305, It is a meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service.

Consesuality

It is a characteristic of a contract that states that contracts can be perfected by mere consent.

Relativity

Also termed as transmissibility. It is a characteristic of a contract that states that contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by nature or by stipulation or by provision of law.

Obligatory Force

It is a characteristic of a contract that states that obligations arising from contract have the force of law between the contracting parties and should be complied with in good faith.

Mutuality

It is a characteristic of a contract that states that the contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them.

Autonomy

Also termed as Independence of Contracts. It is a characteristic of a contract that states that the contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law.

Preparation

Also termed as generation. It is the stage of the contract where the negotiations take place leading to a definite agreement. It also includes the ironing and smoothening of terms and conditions.

Perfection

Also termed as the birth. It is the stage of the contract where there has been a "meeting of minds" with respect to subject matter and cause of the contract.

Consumation

Also termed as termination. It is the state of the contract where the extinction of the contract by the performance of the obligation created by it takes place

Article 1314

It is the article that states that any third person that induces another to violate his contract shall be liable for damages to the other party.

Requisites before a third person can be held for damages

Existence of a valid contract

Knowledge on the part of the third person of the existence of the contract

Unwarranted interference by the third person without legal justification or excuse.

Article 1317

It is the article that states that no one may contract in the name of another without being authorized by the latter, or unlesss he has by a law a right to represent him.

Requisites before a person to contract in the name of another

Must be duly authorized

Must have by law a right to represent hum

The contract must subsequently ratified

Article 1318

It is the article that states that there is no contract unless the following requisites occur:

Consent of the contracting parties

Object certain which is the subject matter of the contract

Cause of the obligation which is established.

Article 1319

It is the article that states that consent is the conformity of wills, and with reference to contracts, it is the agreement of the will of one contracting party with that of another or others, upon the object and terms of the contract.

Requisites of Consent

There must be two or more parties

The parties must be capable or capacitated

There must be no vitiating of consent

There must be no conflict between what was expressly declared and what was really intended

The intent must be declared properly

Offer

It is a proposal to enter into a contract.

Article 1323

It is the article that states that an offer becomes ineffective upon the death, civil interdiction, insanity or solvency of either party before acceptance is conveyed.

Acceptance

It is the manifestation by the offeree of his agreement to the terms of the offer.

Unemancipated Minor

A person incapacitated to give consent who have not reached the age of majority and are still subject to parental authority

Insane Person

A person incapacitated to give consent who has a mental incapacity.

Deaf-Mutes

A person incapacitated to give consent who do not know how to write and should be unable to write.

Mistake

It is a vice of consent defined as an unconscious ignorance or forgetfulness of the existence or non-existence of a fact, past or present, material to the contract.

Violence

It is a vice of consent where in order to wrest consent, serious or physical force is employed.

Intimidation

It is a vice of consent when one of the contracting parties is compelled by a reasonable and well-grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent.

Undue Influence

It is a vice of consent when a person takes improper advantage over the will of another, depriving the latter of a reasonable freedom of choice.

Fraud

It is a vice of consent where when through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which without them he would not have agreed to.

Object of Contract

It is the second essential element of a contract.

Requisites in order that an object may be the subject matter of a contract.

Must not be outside the commerce of men

Must be transmissible

Must not be contrary to law

Must not be impossible, either physically or legally

Must be determinate as to its kind.

Cause of Contracts

It is the essential or more proximate purpose why a party assumes an obligation; the reason which moves the contracting parties to enter into a contract.

Rescisssible Contract

It is a type of defective contract which are entered into by guardians whenever the wards of whom they represent suffer lesion by more than 1/4 of the value, agreed upon in representation of the absentee, undertaken in fraud of the creditor and is under litigation.

Voidable Contract

It is a type of defective contract where one of the parties is incapable of giving consent to the contract and where consent is vitiated by vices of consent.

Unenforceable Contract

It is a type of defective contract entered to in behalf of another, without authority, in excess of authority or without legal representation, or contracts with the statute of fraud, or both parties are incapable of giving consent to the contract.

Void Contracts

It is a type of defective contract where the object or purpose is contrary to law, morals, good customs, public order or public policy

Vegan