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AND
CONTRACTS
What is an obligation?
It
is a juridical necessity to
give, to do, or not to do. (Art.
1156, NCC)
It
Elements of an
Obligation
Who is an active
subject?
One
Who is a passive
subject?
One
What is prestation?
3.Moral cannot be
enforced by action but
are binding on the party
who makes it in
conscience and natural
law.
Performance
a.
Positive to give; to do
b. Negative not to do
Subject matter
a.
Object
a.
Determinate / specific
particularly designated or
physically segregated from all
others of the same class.
b. Generic is designated merely
by its class or genus.
Person obliged
a.
Creation
a.
Divisible obligation is
susceptible of partial
performance
b. Indivisible obligation is
not susceptible
Imposition of penalty
Simple
there is no penalty
imposed for violation of the terms
thereof
Obligation with penalty
obligation which imposes a
penalty for violation (Art. 1226,
NCC) (Pineda, Obligations and
Contracts, 2000 ed, p. 57)
What is compliance in
good faith?
A:
It is performance in
accordance with the
stipulation, clauses, terms
and conditions of the
contract.
Yes.
What is quasicontract?
It
Negotiorium
gestio (inofficious
manager) arises when a person
voluntarily takes charge of the
management of the business or
property of another without any
power from the latter.
2. Solutio indebiti (unjust
enrichment)takes place when a
person receives something from
another without any right to
demand for it, and the thing was
unduly delivered to him through
mistake.
Q:
What is quasidelict
or tort?
A: It is an act or omission
arising from fault or
negligence which causes
damage to another, there
being no preexisting
contractual relations
between the parties.
Q:
A:
Act
or omission;
Fault or negligence attributable to the
person charged;
Damage or injury;
Direct relation of cause and effect
between the act arising from
fault/negligence and the damage or
injury (proximate cause); and
No preexisting contractual relation
between the parties.
Negotiorium
gestio
(inofficious manager)
arises when a person
voluntarily takes charge
of the management of
the business or property
of another without any
power from the latter.
Solutio
indebiti (unjust
enrichment)takes
place when a person
receives something
from another without
any right to demand for
it, and the thing was
unduly delivered to him
through mistake.
In
What
is the juridical
relation between X and Y
during X's absence?
Upon the return of X to
the barangay, what are the
obligations of Y to X as
regards the contract with
Z?
Upon X's return, what are
the obligations of X as
regards Y's contract with
The
Yes.
A:
GENERIC
Specific performance
i.e. delivery of another
thing within the same
genus as the thing
promised if such thing is
damaged due to lack of
care or a general breach
is committed
Deliver all
accessions,
accessories and
fruits of the
thing (Art.
1166, NCC)
Fortuitous event
extinguishes the
obligation
If the object is
generic, but the
source is
specified or
delimited, the
obligation is to
preserve the
source
Obligation is not
extinguished
(genus
nunquamperuit
genus never
perishes)
GENERIC OBLIGATION
Specific performance
Specific performance
(delivery of any thing
belonging to the same
species)
Rescission (action to
rescind under Art. 1380,
NCC)
In
obligation to deliver a
specific thing, the creditor
has the right to demand
preservation of the thing,
its accessions,
accessories, and the fruits.
The creditor is entitled to
the fruits and interests
from the time the
obligation to deliver the
thing arise.
Negative
personal
obligation to have the
prohibited thing undone plus
damages. However, if thing
cannot be physically or legally
undone, only damages may
be demanded.
Is specific performance a
remedy in personal obligations?
No.
2. Involuntary debtor is
unable to perform the
obligation due to
fortuitous event thus not
liable for damages
COMPLETE FAILURE TO
PERFORM
What
obliged to deliver or
to do something incur in
delay from the time the
obligee judicially or
extrajudicially demands
from them the fulfillment
of their obligation.
In
reciprocal obligations,
neither party incurs in
delay if the other does not
comply in a proper manner
with what is incumbent
upon him. From the
moment one of the parties
fulfills his obligations,
delay by the other begins.
(Art. 1169, NCC)
WAIVER OF FUTURE
FRAUD
With respect to fraud
that has already
been committed, the
law does not prohibit
renunciation of the
action for damages
based on the same.
However,
the law
does prohibit any
waiver of an action
for future fraud since
the same is contrary
to law and public
policy.
INCIDENTAL
FRAUD
Vitiation of consent
Breach of an obligation
Voidable
Valid
Right of innocent
party/creditor to claim
for damages
NEGLIGENCE
There is deliberate
intention to cause
damage
There is no deliberate
intention to cause
damage or injury even if
the act was done
voluntarily
Liability cannot be
mitigated
Liability may be
mitigated
GR: It reduces or
mitigates the
damages which he can
recover.
XPN:If
CULPA
AQUILIANA(QUASI
DELICT)
Negligence is merely
an incident in the
performance of an
obligation
Negligence is
substantive and
independent
There is a pre
existing contract
There is no pre
existing contract
The source of
obligation of
defendant to pay
damages is the
breach or non
fulfillment of the
contract
The source of
obligation is
defendants
negligence itself
Proof of diligence in
the selection &
supervision of the
employees is a
agreed upon
In the absence of such, that which
is required by the law
In the absence of the foregoing,
diligence of a good father of a
family that reasonable diligence
which an ordinary prudent person
would have done under the same
circumstances.
XPN:Common carriers requiring
extraordinary diligence
CONTRAVENTION OF
TENOR OF OBLIGATION
It
is the act of
contravening the
tenor or terms or
conditions of the
contract.
What is fortuitous
event?
It is an occurrence or
happening which could
not be foreseen, or
even if foreseen, is
inevitable (Art. 1174,
NCC).
Distinguish fortuitous
event and force majeure
Fortuitous Event
ACT OF GOD
Force Majeure
ACT OF MAN
Event which is
absolutely
independent of
human
intervention
Event caused by
the legitimate or
illegitimate acts
of persons other
than the obligor
earthquakes,
storms, floods,
epidemics
armed invasion,
robbery, war,
rebellion, lawless
violence
There is no essential
difference between
fortuitous event and
force majeure; they
both refer to causes
independent of the
will of the obligor.
1. Specific performance, or
substituted performance by a
third person in case of an
obligation to deliver a generic
thing, and in obligations to do,
unless it is a purely personal
act; or
2. Rescission (or
resolution in reciprocal
obligations);
3. Damages, in any case;
4. Subsidiary remedies
of creditors:
a. Accion subrogatoria
b. Accion pauliana
c. Accion directa
1.Exhaustion
of the
properties of the debtor
(not exempt from
attachment under the law)
Accion
subrogatoria (subrogatory
action) an indirect action
brought in the name of the
debtor by the creditor to enforce
the formers rights except:
a. personal rights of the debtor
b. rights inherent in the person of
the debtor
c. properties exempt from
execution (e.g.family home)
Accion
pauliana
(rescissory action) an
action to impugn or assail
the acts done or contracts
entered into by the debtor
in fraud of his creditor;
Note:
Must be a
remedy of last resort,
availed of only after all
other legal remedies
have been exhausted
and have been proven
futile.
What is substitute
performance?
It
is a remedy of the
creditor in case of non
performance by the debtor;
where another party
performs the obligation or
the same is performed at
the expense of the debtor.
b.
Purely personal
no substitute
performance may be
demanded because
of the personal
qualifications taken
into consideration.
The only remedy is
damages.
Real obligation:
a.
Generic thing
substitute performance;
delivery may be made by a
person other than the
debtor since the object is
merely designated by its
class or genus. The
creditor may ask that the
obligation be complied
with at the expense of the
debtor. (1165,NCC)
b.
Specific thing
specific performance
may be demanded, that
is, the creditor may
compel the debtor to
make the delivery.
obligation,
since resolution is implied
therein.
Injured
party.
No.
The
right of action
must not be purely
personal
The debtor whose right
of action is exercised
must be indebted to
the creditor.
must be
indebted to plaintiff
The fraudulent act
performed by the debtor
subsequent to the
contract gives advantage
to another
The creditor is prejudiced
by such act.
The