FINAL REVIEWER (LEGAL 2)

Article. 1156: An Obligation is a juridical necessity to give, to do, or not to do.

Obligations

It is defined by Arias Ramos is a juridical relation whereby a person (called the creditor) may demand from another (called the debtor) the observance of a determinate conduct, and, in case of breach, may obtain satisfaction from the assets of the latter. (Approved by Mr. Justice J. B. L. Reyes)

Juridical Necessity means a Legal Requirement

It also 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.

Civil Obligations

The creditor or obligee has a right under the law to enforce their performance in courts of justice.

Action

An ordinary suit in a 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.

Example of Action

Richter bought a Nintendo Switch from Trevor but Richter did not pay the said gaming console. If after demand, Richter still did not pay, Trevor can sue Richter in Court either to demand payment or for recovery of the Nintendo Switch

Creditor or Oblige

An active subject, who has the power to demand the prestation, known as the?

Debtor or Obligor

A passive subject, who is bound to perform the prestation, known as?

Object / Prestation

It consists of the act of giving, doing, or not doing something.

Vinculum Juris / Juridical Tie

The _____ between the two subjects by reason of whcih the debtor is bound in favor of the creditor to perform the prestation. It is the legal tie which constitutes the source of 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.

Contract

It is the only one of the sources of obligation, while obligations have other sources like law, quasi-contracts, delicts, or quasi-delicts.

Contract

It is a bilateral obligation while obligation is a unilateral obligation.

Contracts

All ____ are obligations while not all obligtions are ____.

Quasi-Contracts

It 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.

Quasi-Contract

What is the Article 2142?

Contract

Consent is an essential requirement for its validity while in quasi-contract, there is no consent as the same is implied by law.

Contract

It is a civil obligation while quasi-contract is a natural obligation.

Solutio Indebiti / Payment by mistake

It is the juridical relation which arises when something is received when there is no right to demand it and it was unduly delivered through mistake.

Example of Solution Indebiti/ Payment by mistake

Aiah ordered one (1) dozen of donuts from Mikha's bakeshop for the sum of P1, 000.00. Aiah paid P1, 000.00. However, by mistake Aiah received two (2) dozen of donuts from Mikha. Ian has the obligation to return one (1) dozen of donuts excess because there was delivery by mistake

Negotiorum Gestio / Management of another's property

It is the voluntary management or administration by a person of the abandoned business or property of another without any authority or power from the latter.

Example of Negotiorum Gestio

Alucard, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended. Belmont, a neighbor of Alucard managed the farm thereby incurring expenses. When Alucard returns, he has the obligation to reimburse Belmont for the expenses incurred by him and to pay him for his services. It is bases on the principle that no one shall enrich himself at the expense of another.

Solutio Indebiti

Negotiorum Gestio

What are the 2 Kinds of Quasi- Contract?

Delict / Felony / Crime

Acts or omissions punished by law are known as?

Restitution

which is the restoration of or returning the object of the crime to 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 include the payment of other damages that may have been caused to the injured party.

Quasi-Delict

It is an act or omission by a person that causes damage to another, there being fault of negligence, is obliged to pay for the damage done, and there is no pre-existing contractual relation between the parties.

Quasi-Delict

What is the Article 2176?

Example of Quasi-Delict

If Lewis drives his car negligently and because of his negligence hits Max, who is walking on the sidewalk of the street, inflicting upon him physical injuries. Then Lewis becomes liable for damages based on quasi-delict

Requisites of a Quasi-Delicts

There must be an act or omission

• There must be fault of negligence attributable to the offended;

• There must be damage or injury caused to another;

• There is a direct relation of cause and effect between the act or omission and the damage;

• There is no pre-existing contractual relation between the parties

Negligence

It is the failure to observe for the protection of the interests of another person, that degree of care, precaution, and vigilance which the circumstances justly demand, whereby such other person suffers injury.

Test of Negligence

A duty on a party of the defendant to protect the plaintiff from the injury of which the latter complains.

Test of Negligence

A failure to perform that duty

Test of Negligence

An injury to the plaintiff through such failure.

Determinate Thing

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

Indeterminate / Generic Thing

A thing is generic when it refers to a class of thing or genus and cannot be designated with particularity. (Art. 1460, NCC)

Fortuitous Events

- those events which could not be foreseen or which though foreseen were inevitable. (Art. 1174, NCC)

Natural

spontaneous product of the soil; the young and other products of animal. E.g. tress, plants on lands without the intervention of man.

Industrial

produced by lands of any kind through cultivation and labor. E.g. sugar cane, vegetables, rice.

Civil

derived by virtue of juridical relations. E.g. rents of a building; prices of leases of lands and other similar income.

Accession

- is the right pertaining to the owner of a thing over its products and whatever is attached thereto either naturally or artificially.

Accretion

which refers to the gradual and addition of sediment to the shore by action of water

Accessories

are those things which are joined or attached to the principal object as ornament or to render it perfect

Fortuitous Event

does not exempt debtor from responsibility (Determinate thing)

Genus never perishes

debtor has the obligation even if the thing is lost because of a fortuitous event. (Indeterminate thing)

Article 1168

WHEN THE OBLIGATION CONSISTS IN NOT DOING, AND THE OBLIGOR DOES WHAT HAS BEEN FORBIDDEN HIM, IT SHALL ALSO BE UNDONE AT HIS EXPENSE, (1099A)

What article is this

Obligation of the debtor not to do

THIS IS NEGATIVE PERSONAL OBLIGATION WHICH IS CONSISTING OF AN OBLIGATION OF NOT DOING SOMETHING. IF THE DEBTOR DOES WHAT HAS BEEN FORBIDDEN HIM TO DO, THE OBLIGEE CAN ASK THE DEBTOR TO HAVE IT UNDONE. IF IT IS IMPOSSIBLE TO UNDO WHAT WAS DONE, THE REMEDY OF THE INJURED PARTY IS FOR AN ACTION OF DAMAGES.

Example of Obligation of the Debtor not to do

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.

Article 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.

Fraud / Dolo

is the intentional or deliberate evasion of the normal fulfillment of an obligation.

Fraud

referred to is incidental fraud (not causal fraud), that is, fraud incident to the performance of a pre-existing obligation

Negligence / Culpa

consists in the omission by the obligor of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person, of the time and of the place. (Art. 1173, NCC)

Dolo

there is deliberate intent to cause damage or injury.

Culpa

- there is no deliberate intent to cause damage

Dolo

waiver of liability of future fraud is void (Art 1171).

Culpa

waiver may in some cases be allowed

Dolo

fraud must be clearly proved

Culpa

- presumed from breach of contractual obligation.

Dolo

- liability cannot mitigated by the courts

Culpa

- may be reduced according to circumstances

Culpa Contractual

negligence in contracts resulting in their breach. Negligence in the fulfilment of a pre-existing contractual obligation

Example of Culpa Contractual

P is a passenger in a taxi. There is a contract of carriage between P and the owner of the taxi company. In consideration of the fare to be paid, the owner of the taxi company through the driver, agrees to safely bring P to his destination.

Culpa Aquiliana (Quasi-delict)

is an act or omission by a person which causes damage to another, there being fault of negligence, is obliged to pay for the damage done and there is no pre-existing contractual relation between the parties. (Art. 2176)

Example of Culpa Aquiliana

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.

Culpa Criminal

negligence punished by law (criminal negligence) - Revised Penal Code (imprisonment)

Example of Culpa Criminal

• A Taxi passenger who became a victim of a vehicular accident may sue the taxi operator under their contract of carriage (culpa contractual).

• Sue the driver of the vehicle which collided with the taxi, since they don't have pre-existing contractual obligation (Culpa aquiliana)

• The negligent drivers may also be criminally prosecuted for criminal negligence (culpa criminal)

Culpa Contractual

Culpa Aquiliana

Culpa Criminal

What are the 3 Kinds of Negligence?

Diligence

which is required by the nature of the obligation and corresponds with the circumstances of the person, time and place

Fault of Negligence

• failure to observe for the protection of the interests of another person, that degree of care, precaution and vigilance which the circumstances justly demand, whereby such other person suffers injury.

Ordinary Diligence

that diligence expected of a good father of a family; reasonable care which an ordinary prudent person would observe when confronted with a similar situation; applied when the contract and law is silent.

Extraordinary Diligence

highest degree of care because of the nature of the obligation (protect life, interest, potential harm); e.g. common carriers, banks, pharmacies)

Ordinary Diligence

Extraordinary Diligence

What are the 2 Kinds of Diligence?

Article 1174

EXCEPT IN CASES EXPRESSLY SPECIFIED BY THE LAW, OR WHEN IT IS OTHERWISE DECLARED BY STIPULATION, OR WHEN THE NATURE OF THE OBLIGATION REQUIRES THE ASSUMPTION OF RISK, NO PERSON SHALL BE RESPONSIBLE FOR THOSE EVENTS WHICH COULD NOT BE FORESEEN, OR WHICH, THOUGH FORESEEN, WERE INEVITABLE.

What article is this?

Fortuitous Event

- IS AN EVENT WHICH CANNOT BE FORESEEN, OR WHICH, THOUGH FORESEEN, IS INEVITABLE.

ACT OF GOD (FORCE MAJEURE)

CAUSED BY NATURE SUCH AS VOLCANIC ERUPTION, EARTHQUAKE, LIGHTNING, ETC. IS NOW SIMILAR

ACT OF MAN

CAUSED BY HUMANS, SUCH AS CONFLAGRATION, WAR, ROBBERY, ETC

Delay (Mora)

- like when there has been judicial or extra-judicial demand and the debtor does not comply his obligation, delay will occur

In contravention of the tenor of the obligation

refers to the violation of the terms and conditions or defects in the performance of the obligation, like when a landlord fails to maintain a legal and peaceful possession of a tenant being leased by the latter because the landlord was not the owner and the real owner wants to occupy the land, there is contravention of the tenor of the obligation.

Delay (Mora)

In contravention of the tenor of the obligation

2 Sources of Liability for Damages

Article 1169

THOSE OBLIGE TO DELIVER OR TO DO SOMETHING INCUR IN DELAY FROM THE TIME THE OBLIGEE JUDICIALLY OR EXTRA - JUDICIALLY DEMANDS FROM THEM THE FULFILLMENT OF THEIR OBLIGATION

What article is this?

Delay or Default (Mora)

means a legal delay or default and it consists of failure to discharge or perform an obligation on time which failure, constitutes a breach of the obligation.

Mora solvendi

delay on the part of the debtor to fulfill his obligation (give or to do)

Mora accipiendi

delay on the part of the creditor to accept the performance of the obligation

Compensatio morae

delay of the obligors in reciprocal obligations

Mora solvendi

Mora accipiendi

Compensatio morae

What are the 3 kinds of delay?

Reciprocal obligations

two person are creditor and debtor of each other. The performance of one is conditioned upon the simultaneous fulfilment on the part of the other

Moral Damages

include physical sufferings, mental anguish, fright, serious anxiety, besmirched reputation, wounded feeling, moral shock, social humiliation and similar injury

Exemplary Damages

imposed by way of example or correction for the public good.

Actual or Compensatory Damages

except as provided by law, or a stipulation, one is entitled to an adequate compensation only for such pecuniary loss suffered by him as he has duly proved. (Art. 2199, NCC)

Temperate or moderate damages

are more than nominal but less than compensatory damages may be recovered when the courts finds that its amount cannot, from the nature of the case, be proved with certainty. Pecuniary loss means loss of money, or of something by which money or something of money value may be acquired.

Nominal Damages

are adjudicated in order that a right of the plaintiff, which has been violated by the defendant, may be vindicated or recognized and not for the purpose of indemnifying the plaintiff for any loss suffered by him. (Art. 2221, NCC)

Liquidated Damages

are those agreed upon by parties to a contract to be paid in case of breach thereof. (Art. 2226, NCC)

Moral Damages

Exemplary Damages

Actual or compensatory Damages

Temperate or moderate Damages

Nominal Damages

Liquidated Damages

What are the 6 Kinds of Damages?

Article 1179

Every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, is demandable at once.

Every obligation that contains a resolutory condition shall also be demandable, without prejudice to the effects of the happening of the event.

What article is this?

Pure Obligation

is one without a condition or term for its fulfillment and therefore demandable at once.

Artcile 1181

In conditional obligations, the acquisition of rights, as well as the extinguishment or loss of those already acquired, shall depend upon the happening of the event which constitutes the condition.

What article is this?

Conditional Obligation

is one whose consequences are subject in one way or another to the fulfillment of a condition.

Suspensive condition (condition precedent or condition antecedent)

One of the fulfillments of which will give rise to an obligation (or right). The obligation is suspended until the happening of the condition.

Resolutory condition (condition subsequent)

one the fulfillment of which will extinguish an obligation (or right) already existing. Here, obligee's right is immediately vested but will be extinguished if the condition take place.

Potestative condition

a condition suspensive in nature and which depends upon the sole will of one of the contracting parties.

Casual Condition

one that depends upon the sole will of the debtor. (VOID)