NATURAL LAW

LESSON 1  Sense of justice, fairness and

righteousness
What is law?
 Internal dictates of reason – inward
a binding custom or practice of a community: a instinct
rule of conduct or action prescribed or formally  Basic understanding of right and wrong;
recognized as binding or enforced by controlling good and evil
authority.
MORAL LAW
MERIAM WEBSTER

a rule, usually made by a government, that is used  Totality of norms of good and right –
to order the way in which a society behaves. human conscience
CAMBRIDGE DICTIONARY  Changes with time, conditions and
convictions of people
BROAD SENSE  Influence STATE LAW
any rule of action or norm of conduct applicable
to all kinds of action and to all objects of creation PHYSICAL LAW

STRICT SENSE  Operation or course of nature

rule of conduct, just and obligatory, laid down by  Law of gravity
legitimate authority for common observance and
benefit CLASSIFICATION OF LAW
AS TO PURPOSE
ELEMENTS/ CHARACTERISTICS SUBSTANTIVE
RULE OF CONDUCT -defines rights and duties
-guide in interrelating with others and in the -law on obligations and contracts
community PROCEDURAL
JUST -also called adjective or remedial law
-End goal is the way and dominance of justice” -prescribes the manner or procedure by
which rights may be enforced or violations
OBLIGATORY redressed
-Enforced in order to serve its purpose -Rules of Court
PRESCRIBED BY LEGITIMATE AUTHORITY AS TO SUBJECT MATTER
-feature of sovereignty
PUBLIC
ORDAINED FOR THE COMMON BENEFIT -Regulates the rights and duties arising from the
-Follows the time-honored principle “salus populi relationship of the state to the people
est supreme lex” – the welfare of the people is
the supreme law CRIMINAL LAW
Equal protection- application of law to all CONSTITUTIONAL LAW
ADMINISTRATIVE LAW

PRIVATE
GENERAL DIVISIONS AND KINDS OF LAW -regulates relations of individuals with one
another for purely private ends
Non-legally speaking laws NOT promulgated and
enforced by the state CIVIL LAW
COMMERCIAL/ MERCANTILE LAW
DIVINE LAW

 Of religion and faith; sin and salvation

 Formally promulgated by God
 Ten Commandments Quoran
 SOURCES OF LAW ARTICLE VII, SECTION 1 (1987 Philippine
Constitution)
CONSTITUTION judicial power rests with the Supreme Court and
-Written instrument by which the fundamental the lower courts, as established by law
powers of the government are established,
limited and defined and distributed among JUDICIAL SYSTEM
several departments for their safe and useful
REGULAR COURTS
exercise for the benefit of the people
-general administration of Justice
-Fundamental or supreme or highest law of the
land a. MTCs, MTCCs, MCTCs
b. RTCs
LEGISLATION
c. CA
-Enacted or statue law
d. SC
ADMINISTRATIVE OR EXECUTIVE ORDERS, RULES
SPECIAL COURTS
AND REGULATIONS
-limited jurisdiction over specific case, i.e. graft
-exercise of quasi-legislative power administrative
and corruption
officials or bodies
a. Sandiganbayan
CUSTOM
b. Court of Tax Appeals
habits and practices for a long period that have
c. Shari’a Courts
been acknowledged and approved by the society
as a rule of conduct: QUASI-COURTS OR QUASI-JUDICIAL BODIES
-proved as a fact -administrative agencies exercising adjudicatory
-not contrary to law powers to attain its goals
-number of repeated acts uniformly performed
-judicial intention to make a rule of conduct a. Civil Service Commission
b. Commission of Election
c. Commission on Audit

INTERPRETATION OF LAW
-Lodged with the judiciary
-When the law is clear, there is no room for
interpretation – “dura lex, sed lex”

CIVIL CODE PROVISIONS

Article 9
“No judge or court shall decline to render
judgement by reason of the silence, obscurity or
insufficiency of the laws”

Article 10
“In case of doubt in the interpretation or
applications of law, it is presumed that the
lawmaking body intended right and justice to
prevail”
LAW ON OBLIGATIONS AND CONTRACTS
STATUTORY CONSTRUCTION
-art or process of discovering the meaning and FOUND IN THE CIVIL CODE OF THE PHILIPPINES
intention of the authors of law when there is
Body of rules which deals with:
ambiguity
1. Nature and sources of obligations
-to give effect to the intention of the law
2. Rights and duties arising from agreements and
particular contracts

JUDICIAL SYSTEM IN THE PHILIPPINES

Book 1 : PERSON AND FAMILY RELATIONS
Book 2 : PROPERTY, OWNERSHIP AND ITS
MODIFICATIONS
Book 3 : DIFFERENT MODES OF ACQUIRING
OWNERSHIP (SUCCESSION)
Book 4 : OBLIGATIONS AND CONTRACTS
Book 5 : SPECIAL CONTRACTS
LESSON 2
OBLIGATION
- from the Latin word “obligatio”
which means tying or binding
(Etymological Meaning)
- a juridical necessity to give, to do
or not to do (Legal Meaning)
CRITICIZED AS INCOMPLETE BUT
ACTUALLY REPRESENTS TWO SIDES:
- debt and credit
- duty of debtor and rights of the
creditor
 Particular conduct required to be observed
by the obligor and can be demanded by
the oblige
 To give, to do or not to do
OBLIGEE – creditor
 Active subject
 Right to demand the performance
JURIDICAL TIE/ VINCULUM JURIS
 Vinculum Juris – legal relationship or tie
 Efficient cause or the reason
 Binds the parties
SITUATION
Juan is obliged to pay taxes.
Obligor (passive subject) – JUAN
Obligee (active subject) – Government (BIR)
Prestation (object) – income tax
Juridical Tie – TAX CODE Law

JURIDICAL NECESSITY
- rights and duties are legally CONTRACT OF SALE
demandable and the courts may
Mr. Reyes sold a bottle of wine to Mr. Cruz for
be called upon to resolve the
P1,000,000
matter
Obligat Obligat
Examples: CIVIL OBLIGATIONS ion 1 ion 2
- pay your tuition fee at university OBLIGOR Mr. Mr. Cruz
(TO GIVE) Reyes
- parent to take care of their OBLIGEE Mr. Cruz Mr.
children (TO DO) Reyes
- not to steal (NOT TO DO) PRESTAT Deliver Pay
ION bottle of ₱1,000,
NOT a juridical necessity wine 000
(therefore NOT a civil JUDICAL CONTRACT
obligations) TIE

- Obligation to attend masses

IMPORTANT CONCEPTS
(MORAL OBLIGATION)
- To pay your debt of gratitude Right – power which a person has under the
(NATURAL OBLIGATION) law to demand from another any prestation
ELEMENTS Cause of Action – act or omission which
violates a right
OBLIGOR – debtor
Injury – act or omission which causes harm
 Passive subject
 Bound to perform Damage – to harm done to a party

Damages – sum of money recoverable by

reason of damage done
PRESTATION

SOURCES
THOSE EMANATING FROM LAW
Obligations are not presumed; the must be
expressly stated
Payment of taxes
Spouses to observe mutual help and support
- THOSE EMANATING FROM PRIVATE
ACTS
LICIT ACTS
CONTRACTS
 Meeting of the minds between two persons,
whereby one binds himself, with respect to
the other, to give something or to render
some service
 Have the force of law between the parties
 Must not be contrary to law, morals, good
customs, public order or public policy
QUASI-CONTRACTS
 Based on the principle that no one will be
unjustly enriched at the expense of another
 Arises from a lawful act
 A unilateral voluntary act
 NEGOTIORUMGESTIO – spontaneous
voluntary act for the benefit of another who
has no knowledge of it.
Example: saving a burning house and
sustaining injuries
 SOLUTIOINDEBITI – payment of what is
not owed
 Something is received by mistake
 No right to receive the same
 Mistake in the delivery
Example: receiving excessive change after
buying something
THOSE EMANATING FROM PRIVATE
ACTS
ILLICIT ACTS
DELICTS/CRIMES
 Governed by penal laws
QUASI-DELICTS
 Also called torts
 Damage or injury caused to a person
because of an act or omission of another
coupled with negligence
NATURE AND EFFECT
Article 1163: EVERY PERSON OBLIGED
TO GIVE SOMETHING IS ALSOOBLIGED TO
TAKE CARE OF IT WITH PROPER
DILIGENCE OF A GOOD FATHER OF
FAMILY, UNLESS THE LAW OR THE
STIPULATION OF THE PARTIES REQUIRES
ANOTHER STANDARD OF CARE.
 PRESTATION/OBJECT
Specific or determine thing –
particularly designated or physically
segregated from all others of the same
class.
 THE 2020 GEELY COOLRAY CAR WITH
PLATE NUMBER JDJ 5979
 THE WATCH THAT YOU WORE
YESTERDAY
No substitute allowed unless allowed by
the creditor
Generic or indeterminate thing –
refers only to a class or genus to which it
pertains and cannot be pointed out with
particularly
 A CAR
 A DOG
Anything can be given as long as it
pertains to the same kind
 COMPLIANCE WITH
OBLIGATIONS
DUTIES IN OBLIGATIONS TO GIVE A
DETERMINATE THING
 Preserve the thing – incidental duty to
take care of the thing due
o with the diligence of a good father of
a family
o as provided by the law or as
stipulated, i.e. extraordinary
 Deliver the fruits of the thing (Article
1164)
  Deliver the accessions and accessories
DUTIES IN OBLIGATIONS TO
DELIVER A GENERIC THING
 Deliver a thing in accordance with the
quality intended taking into consideration
the purpose of the obligation and other
circumstances
 Liable for damages in case of fraud,
negligence or delay
DELIVERY OF FRUITS
Article 1164: THE CREDITOR HAS THE
RIGHT TO THE FRUITS OF THE THING
FROM THE TIME THE OBLIGATION TO
DELIVER ARISES. HOWEVER, HE SHALL
ACQUIRE NO REAL RIGHT OVER
ITUNTILTHE SAME HAS BEEN DELIVERED
TO HIM.
WHAT ARE THESE FRUITS?
DELIVERY OF ACCESSIONS AND
ACCESSORIES
Article 1166: THE OBLLIGATION TO GIVE A
DETERMINATE THING INCLUDES THAT OF
DELIVERING ALL ITS ACCESSIONS AND
ACCESSORIES, EVEN THOUGH THEY MAY
NOT HAVE BEEN MENTIONED.
ACCESSIONS
 Fruits of a thing or additions to or
improvements upon a thing
Example: house or trees on land
ACCESSORIES
 things joined or included with the principal
thing for embellishment, better use of
completion – accessory follows the
principal.
Example: key of a house, frame of a painting
BREACH OF OBLIGATIONS
WHAT IS DELAY?
 Ordinary Delay – failure to perform on time
 Legal Delay or default or mora – failure to
perform on time constituting a breach of
obligation
KINDS OF DELAY
1. Mora solvendi – default on the part of the
debtor
 Conditions:
a. Failure of the debtor
b. Demand from the creditor to comply
c. Failure to comply with the demand
*assumption that obligation is due and
demandable
Effects: debtor
is:
o Guilty of breach or violations of his obligation
o Liable for interest or damages
o Liable ever for fortuitous events (deliver a
determinate thing)
2. Mora accipendi – default of the part the
creditor to accept the performance
Effects: creditor is:
o Guilty of breach of obligation
o Liable for damages suffered
o Bears the risk of loss of the thing due
*debtor shall not be liable for interest
*debtor may relieve himself of the obligation by
depositing the amount or consigning the
thing to the court.
3. Compensation morae – delay of
obligations in reciprocal obligations
 Delay of one cancels the delay of the other
 Delay of one after the other – shall be
equitably tempered
 If it cannot be determined who was in delay,
obligation will be extinguished and each one
bears his own losses.
Article 1170: Those 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.
 Natural – spontaneous products of the soil,
and the young and other products of
animals
 Industrial – produced by lands of any kind
through cultivation or labor
 Civil – derive by virtue of a juridical relation
WHEN TO DELIVER THE FRUITS?
 Upon delivery of the thing due
 Upon the fulfillment of a suspensive condition
or arrival of the term
BREACH OF OBLIGATION
Failure or refusal to perform
obligations without legal
justification – VOLUNTARY
1. Fraud (deceit or dolo)
 Incidental fraud not causal
fraud
 Deliberate or intentional
evasion
 Malice, dishonesty
 Bad faith
2. Negligence (fault or culpa)
 Voluntary act or omission
 No bad faith or malice
3. Delay (mora)
4. Contravention of the terms
 Not due to fortuitous event
FRAUD NEGLIGENCE
Deliberate intent to cause None
damage or injury
Waiver may be allowed
Waiver of liability for future
fraud is void Presumed from the
violation
Must be proven
May be mitigated
Cannot be mitigated
Article 1171: Responsibility
arising from fraud is demandable
in all obligations. Any waiver of
an action for future fraud is void.
 Fraud is deemed serious and
evil should, this be discouraged
 Future fraud – cannot be
waived
 Past fraud – may be waived
expressly – act of generosity
Article 1172: Responsibility
arising from negligence in the
performance of every kind of
obligation is also demandable, but
such liability may be regulated by
the courts, according to
circumstances.
 Entitlement to damages
 Courts have the discretion in
fixing the measure of damages –
case- to-case basis
 Action for future negligence –
may be renounced
 Negligence +bad faith = fraud
KINDS OF NEGLIGENCE
1. culpa contractual –
contractual negligence
2. culpa aquiliana – civil
negligence
3. culpa criminal – criminal
negligence
What if the creditor is also
negligent?
 Negligence is the immediate
and proximate cause – no
damages
 Negligence is merely –
mitigated damages
Article 1173: The fault or
negligence of the obligor consist
in the omission of that diligence
which is required by the nature of
the obligation and corresponds
with the circumstances of the
person, time and of the place.
When negligence shows bad
faith, the provisions of Article
1171 and 2201, paragraph 2,
shall apply.
If the law or contract does not
state the diligence which is to be
observed in the performance, that
which is expected of a good
father of a family shall be
required.
FAULT 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.
 Factors to consider:
1. Nature of the obligation
2. Circumstances of the person
3. Circumstances of time
4. Circumstances of the place
DAMAGES
o Money compensation awarded to the
injured party or who suffered loss
o In contracts and quasi contracts
where the debtor acted in good faith-
damages shall be those that are in
natural and probable consequences
of the breach.
o In cases of fraud, bad faith, malice or
wanton attitude – all damages that can
be reasonable attributed to the breach.
Kinds of diligence required
o as agreed, orally or verbally
o as required by law
o diligence of a good father of a family
Article 1174: Except in cases expressly
specified by 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 through
foreseen, were inevitable.
FORTUITOUS EVENT
independent of the will of the debtor;
impossible to foresee or impossible to
avoid
 acts of man
 acts of God
KINDS:
 ordinary – common and can be
reasonably foreseen
 extraordinary – uncommon and
could not be reasonably foreseen
REQUISITES:
 independent of human will, or at least
the debtor
 could not be foreseen, or if foreseen,
is inevitable
 renders it impossible for the debtor to
fulfil his obligations in a normal manner
 debtor is free from participation in, or
the aggravation of, the injury to the
creditor
GENERAL RULE – NO LIABILITY TO
PAY DAMAGES
Exceptions:
 When expressly specified by law
o When debtor is guilty of fraud,
negligence, or delay or contravention of
the tenor of the obligations
o When the debtor promised to deliver
the same (specific) thing to 2 or more
persons
o Obligation to deliver a specific thing
arises from a crime
o Thing to be delivered is generic
 When declared by stipulation –
freedom of contract
 When the nature of the obligations
required the assumption of risks
Article 1175. Usurious transactions
shall be governed by special laws.
Article 1176. The receipt of the
principal by the creditor, without
reservation with respect to the interests,
shall give rise to the presumption that
said interests has been paid.
The receipt of a later installment o a
debt without reservation as to prior
installments, shall likewise raise the
presumption that such installments have
been paid.
PRESUMPTIONS – inference of a fact
not actually known arising from its usual
connection with another which is known
or proved.
KINDS
 Conclusive – cannot be contradicted
 Disputable/rebuttable – can be
contradicted or rebutted by presenting
evidence to its contrary

Article 1177. The creditors, after

having pursued the property in
possession of the debtor to satisfy their
claims, may exercise all the rights and
bring all the actions of the latter for the
same purpose, save those which are
inherent in his person; they may impugn
the acts which the debtor may have
done to defraud them.

Remedies of the creditor to satisfy

his claim:

Exact fulfillment with right to the

damages
Pursue the leviable property of the
debtor
Exercise all the rights and bring all
actions of the debtor except those
inherent to his person
Ask the court to rescind or impugn
acts or contacts which the debtor may
have done to defraud him

Article 1178. Subject to the laws, all

rights acquired in virtue of an obligation
are transmissible, if there has been no
stipulation to the contrary.

Transmissibility of rights:

GENERAL RULE: TRANSMISSIBLE OR

ASSIGNABLE

Exceptions:

1. Prohibited by law
o Contract of partnership
o Contract of agency
o Contract of commodatum
2. Prohibited by stipulation of the
parties