Law on Business Transactions I Flashcards

Comprehensive vocabulary flashcards covering Law on Business Transactions I topics, including Article 1156 through Article 1178, sources of obligations, classifications, types of breach, and relevant legal terms.

Article 1156

The Civil Code provision defining an obligation as a juridical necessity to give, to do, or not to do.

Juridical Necessity

The legal requirement that in case of non-compliance with an obligation, courts of justice may be called upon to enforce fulfillment or its economic value, with possible liability for damages.

Civil Obligation

An obligation that gives a right of action to compel its performance and is enforceable in courts of justice with legal sanctions.

Natural Obligation

An obligation based on equity and natural law that lacks an enforceable juridical tie, but voluntary performance by the debtor authorizes the court to retain what has been paid or delivered.

Purely Moral Obligation

An obligation based merely on conscience, equity, or natural law with no juridical tie at all, which is not enforceable in courts of justice.

Solutio Indebiti

A quasi-contractual relation created when something or a payment is received by mistake, establishing a legal duty to return the extra or erroneous amount.

Vinculum Juris

The juridical tie or efficient cause established by various sources of obligation that binds the debtor and creditor.

Prestation

The object or particular conduct required to be observed by the debtor, consisting of giving, doing, or not doing something.

Active Subject

The creditor or obligee who holds the legal right under an agreement to demand the fulfillment of the obligation.

Passive Subject

The debtor or obligor from whom the fulfillment of the obligation is juridically demandable.

Article 1157

The Civil Code provision enumerating the five sources of obligations: law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts.

Article 1158

The provision stating that obligations derived from law are not presumed and are demandable only when expressly determined in the Code or special laws.

Article 1159

The provision establishing that obligations arising from contracts have the force of law between the contracting parties and must be complied with in good faith.

Article 1160

The provision establishing that obligations derived from quasi-contracts are governed by specific statutory provisions regarding lawful, voluntary, and unilateral acts.

Negotiorum Gestio

A quasi-contract arising from the voluntary management of the property or affairs of another without the knowledge or consent of the owner, preventing unjust enrichment.

Gestor

The officious manager who voluntarily takes charge of the agency or management of the business or property of another without authorization.

Diligence of a Good Father of a Family

The general standard of care required of an obligor in preserving a thing or managing another's property, unless another standard is stipulated or required by law.

Damnum Absque Injuria

A legal concept referring to damage or injury caused to another without legal wrong or breach of duty, resulting in no recoverability for damages.

Article 1161

The Civil Code provision stating that civil obligations arising from criminal offenses shall be governed by penal laws, subject to specific Civil Code damage rules.

Restitution

A form of civil liability arising from a crime requiring the return or restoration of the specific stolen or wrongfully taken property.

Reparation

A form of civil liability requiring payment for the value of damage caused to property when exact restitution cannot be made.

Indemnification for Consequential Damages

The aspect of civil liability that requires compensating the victim or family for physical, moral, or other damages suffered as a direct consequence of a crime.

Preponderance of Evidence

The standard of proof required in civil cases, meaning evidence that is of greater weight or more convincing than the evidence offered in opposition.

Proof Beyond Reasonable Doubt

The standard of proof required in criminal cases to convict an accused person of a crime.

Article 1162

The provision stating that obligations derived from quasi-delicts are governed by specific Title XVII provisions and special laws.

Quasi-Delict

An act or omission that causes damage to another through fault or negligence where there is no pre-existing contractual relation between the parties.

Article 21

A provision establishing that any person who willfully causes loss or injury to another in a manner contrary to morals, good customs, or public policy shall compensate for damages.

Real Obligation

An obligation that involves giving or delivering a determinate or generic object.

Personal Obligation

An obligation that involves doing (positive personal obligation) or not doing (negative personal obligation) a specific action.

Determinate Thing

A thing that is particularly designated or physically segregated from all others of the same class and identified by its individuality.

Generic Thing

A thing identified only by its class or genus that cannot be pointed out with particularity.

Accessions

All things produced by the thing that is the object of the obligation, as well as those attached thereto naturally or artificially.

Accessories

Things joined to or included with the principal thing for its embellishment, use, or preservation.

Mora Solvendi

Legal delay attributable to the debtor or obligor in performing a demandable and liquidated obligation.

Mora Accipiendi

Delay on the part of the creditor or obligee to accept the performance of the obligation without justifiable reason.

Compensatio Morae

Delay of both obligors in reciprocal obligations, resulting in the neutralization of both delays.

Dolo Incidente

Incidental fraud committed in the performance of a pre-existing obligation, which renders the guilty party liable for damages only.

Dolo Causante

Causal fraud employed by one party to induce the other party to enter into a contract, giving rise to annulment plus damages.

Culpa Contractual

Contractual negligence resulting in a breach of a pre-existing contractual obligation.

Culpa Aquiliana

Civil negligence or tort committed without any pre-existing contractual relationship between the parties.

Culpa Criminal

Criminal negligence resulting in the commission of a punishable crime or quasi-offense.

Contributory Negligence

Negligence on the part of the injured party that combines with the obligor's breach to reduce or mitigate recoverable damages.

Fortuitous Event

An event that cannot be foreseen, or which, though foreseen, is inevitable and renders compliance with an obligation impossible.

Force Majeure

An unavoidable event arising from legitimate or illegitimate acts of third persons independent of the obligor's will.

Southeastern College vs. Court of Appeals

A legal case (10 July 1998) ruling that a school is not liable for roof damages caused during Typhoon Saling because the structure was properly built with permits and had no defects.

De la Cruz vs. Northern Theatrical Enterprises

A legal case (95 Phil. 739) illustrating a purely moral obligation regarding an employer's lack of legal duty to provide free legal assistance to employees.