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Powerpoint Obligations and Contracts
Powerpoint Obligations and Contracts
CONTRACTS
NEW CIVIL CODE OF THE PHILIPPINES
ARTS. 1156-1304 (OBLIGATIONS)
ARTS. 1305-1422
GENERAL PROVISIONS
OBLIGATIONS
(CIVIL OBLIGATIONS)
A juridical necessity
To give, to do or not to do.
JURIDICAL NECESSITY
• CONNOTE THAT IN CASE OF NON-COMPLIANCE , THERE WILL BE
LEGAL SANCTIONS
SOURCES OF OBLIGATIONS 2
(LACQ )
1.LAW
2.CONTRACTS
3. QUASI-CONTRACTS
4.ACTS OR OMISSIONS PUNISHED BY LAW
5. QUASI-DELICTS (ART. 1157, NCC)
LAW
• A RULE OF CONDUCT, JUST AND OBLIGATORY, LAID DOWN BY
LEGITIMATE AUTHORITY FOR THE COMMON OBSERVANCE AND
BENEFIT.
CONTRACT
• IS A MEETING OF THE MINDS
• BETWEEN TWO PERSONS
• WHEREBY ONE BINDS HIMSELF
• WITH RESPECT TO THE OTHER
• TO GIVE SOMETHING
• OR TO RENDER SOME SERVICE (ART. 1305, NCC)
QUASI-CONTRACTS
• REFER TO CERTAIN, LAWFUL, VOLUNTARY AND UNILATERAL ACTS
• GIVING RISE TO A JURIDICAL RELATION
• TO THE END THAT NO ONE SHALL BE UNJUSTLY ENRICHED
• AT THE EXPENSE OF ANOTHER
UNJUST ENRICHMENT
- RETAINS A BENEFIT TO THE LOSS OF ANOTHER
TWO TYPES OF QUASI-CONTRACT
1. NEGOTIORUM GESTIO
- REFERS TO THE VOLUNTARY ADMINISTRATION OF THE PROPERTY,
BUSINESS OR AFFAIRS OF ANOTHER
- WITHOUT HIS CONSENT OR AUTHORITY
2. SOLUTIO INDEBITI
- REFERS TO PAYMENT BY MISTAKE OF AN OBLIGATION WHICH WAS
NOT DUE WHEN PAID.
ACTS OR OMISSIONS PUNISHABLE BY LAW
• THESE ARE CRIMES OR FELONIES. THE COMMISSION OF THE CRIME
MAKES THE OFFENSER CIVILLY LIABLE.
QUASI-DELICTS (ALSO KNOWN AS
”TORT/CULPA-AQUILIANA” )
• ACTS OR OMISSIONS THAT CAUSE DAMAGE TO ANOTHER THERE
BEING FAULT OR NEGLIGENCE BUT WITHOUT ANY PRE-EXISTING
CONTRACTUAL OBLIGATION
ESSENTIAL REQUISITES OF AN OBLIGATION
(JAPP)
EXAMPLES:
OBLIGATIONS TO DELIVER THE THING IN SALE, DEPOSIT, PLEDGE AND
DONATION
PRESTATION
2.OBLIGATION TO DO
- Covers all kinds of works or services whether physical or mental
EXAMPLES:
CONTRACT FOR PROFESSIONAL SERVICES LIKE PAINTING ,
MODELLING, SINGING
PRESTATION
2.OBLIGATIONS NOT TO DO
- CONSISTS IN REFRAINING FROM DOING SOME ACTS
KINDS OF OBLIGATIONS
• (A) AS TO JUDICIAL ENFORCEABILITY
• (B) AS TO THE SUBJECT MATTER
• C AS TO THE NUMBER OF PERSONS BOUND TO PERFORM
• D. AS TO THE CAPABILITY OF FULFILLMENT
• E. AS TO SUSCEPTIBILITY OF PARTIAL FULFILLMENT
• F. AS TO THEIR DEPENDENCE UPON ONE ANOTHER
• G. AS TO THE EXISTENCE OF A BURDEN OR CONDITION
• H. AS TO THE NATURE OF PERFORMANCE
• I. AS TO THE NATURE OF CREATION OF THE OBLIGATION
• J. AS TO THE CHARACTER OF RESPONSIBILITY OR LIABILITY
• K. AS TO THE GRANT OF RIGHT TO CHOOSE ONE PRESTATION OUT OF
SEVERAL OR TO SUBSTITUTE THE FIRST ONE.
• L. AS TO THE IMPOSITION OF PENALTY
NATURE AND EFFECTS OF OBLIGATION
1. DETERMINATE OR SPECIFIC THING
- IS SOMETHING WHICH IS SUSCEPTIBLE OF PARTICULAR DESIGNATION
OR SPECIFICATION
- PARTICULARLY DESIGNATED OR PHYSICALLY SEGREGATED FROM ALL
OTHERS OF THE SAME CLASS
EXAMPLE; A MERCEDES BENZ CAR, MODEL 2000, CHASSIS NO.232323
WITH PLATE NO. AAA 999
2. INDETERMINATE THING OR GENERIC THING
- IS SOMETHING WHICH IS NOT PARTICULARIZED OR SPECIFIED BUT
HAS REFERENCE ONLY TO A CLASS OR GENUS
- EXAMPLE: A CAR, AN OUNCE OF GOLD
May B compel A to deliver the TV set and the refrigerator and repair
the piano?
OBLIGATION TO GIVE
QUESTION:
IF THE OBJECT OF THE OBLIGATION TO GIVE IS
LOST OR DESTROYED THROUGH A FORTUITOUS
EVENT, CAN THE DEBTOR OR OBLIGOR STILL BE
HELD LIABLE FOR DAMAGES?
ANSWER:
IT DEPENDS.
• OBLIGATION IS DETERMINATE
General Rule: The obligor or debtor cannot be held liable for damages
provided there is no delay or fault on the part of obligor.
REASON: DESTROYED BY FORTUITOUS EVENT
• OBLIGATION IS INDETERMINATE
• DEBTOR/OBLIGOR CAN STILL BE LIABLE FOR DAMAGES
REASON: GENUS NUMQUAM PERUIT
(GENERIC THING CAN NEVER PERISH)
CAUSES OF BREACH OF OBLIGATION
CAUSES OF BREACH OF OBLIGATION
1. DEFAULT OR MORA
2. FRAUD OR DOLO
3. NEGLIGENCE OR CULPA
4. CONTRAVENTION OF THE TENOR OF THE
OBLIGATION
CAUSES OF BREACH OF OBLIGATION
1. DEFAULT OR MORA
QUESTION:
IN OBLIGATIONS TO GIVE OR TO
DO, WHEN DOES THE
OBLIGOR/DEBTOR INCUR
DELAY?
ANSWER: NON-FULFILLMENT OF OBLIGATION
DESPITE DESPITE OF DEMAND.
• DEBTOR INCURS IN DELAY FROM THE TIME THE
CREDITOR JUDICIALLY OR EXTRAJUDICIALLY DEMANDS
FROM HIM THE FULFILLMENT OF HIS OBLIGATION
2. FRAUD/DOLO
EFFECT:
CONTRACT IS VOIDABLE.
KINDS OF FRAUD/DOLO
• FRAUD IN OBTAININNG CONSENT
TEST OF NEGLIGENCE:
WHETHER THE DEFENDANT IN DOING THE ALLEGED
ACT USED THAT REASONABLE CARE AND CAUTION
WHICH AN ORDINARY PERSON WOULD HAVE USED
IN THE SAME SITUATION
BREACHES OF AN OBLIGATION
3. NEGLIGENCE/CULPA
2. UNFORSEEABLE/UNAVOIDABLE
- THERE MUST BE IMPOSSIBILITY OF FORESEEING/AVOIDING THE
EVENT IF CAN BE FORESEEN.
8. OBLIGATION IS GENERIC
QUESTION:
- DELIVERY OF MONEY
- PERFORMACE OF OBLIGATION
CAUSES OF EXTINGUISHMENT
1.PAYMENT OR PERFORMANCE
- DELIVERY OF MONEY
- PERFORMACE OF OBLIGATION
HOW PAYMENT MUST BE MADE?
1. DELIVERY OF THE THING OR RENDITION OF SERVICE
EXCEPTIONS:
A. AGREEMENT
B. DEBT IS IN PART LIQUIDATED AND UNLIQUIDATED
WHO MUST MAKE THE PAYMENT?
PAYMENT MUST BE MADE BY THE DEBTOR
WHO MUST POSSESS THE FOLLOWING:
1. FREE DISPOSAL OF THE THING DUE
EXCEPTIONS:
1. STIPULATION TO APPLY TO A DEBT NOT YET
DUE
2. APPLICATION MADE BY PERSON IN WHOSE
FAVOR THE TERM IS CONSTITUTED
APPLICATION OF PAYMENT
KEY POINTS:
1. DEBTOR IS GIVEN PREFERENTIAL RIGHT TO DESIGNATE DEBT TO BE
PAID.
2. IF HE DOES NOT MAKE DESIGNATION, CREDITOR MAY EXERCISE THE
SAME.
3. NEITHER DEBTOR NOR CREDITOR MAKES DESIGNATION, THEN
PAYMENT BY OPERATION OF LAW WILL APPLY.
A. PAYMENT APPLIED TO ONEROUS DEBTS.
B. DEBTS OF THE SAME NATURE, APPLIED PAYMENTS
PROPORTIONATELY.
SPECIAL FORMS OF PAYMENT (DAPAT)
3. PAYMENT BY CESSION
- ABANDONMENT OR ASSIGNMENT BY THE
DEBTOR OF ALL HIS PROPERTY IN FAVOR OF HIS
CREDITORS, SO THE LATTER MAY SELL THEM AND
RECOVER THEIR CLAIMS OUT OF THE PROCEEDS.
SPECIAL FORMS OF PAYMENT (DAPAT)
REQUISITES OF PAYMENT BY CESSION
1. TWO OR MORE CREDITORS
2. DEBTOR IS INSOLVENT
3. DEBTOR ABANDONS ALL HIS PROPERTIES
EXCEPT THOSE WHICH ARE EXEMPT FROM
EXECUTION
4. CREDITORS ACCEPT ABANDONMENT
SPECIAL FORMS OF PAYMENT (DAPAT)
4. TENDER OF PAYMENT
- CONSISTS IN MANIFESTATION MADE BY THE
DEBTOR TO THE CREDITOR OF HIS DECISION TO
COMPLY IMMEDIATELY WITH HIS OBLIGATION.
CONSIGNATION
- ACT OF DEPOSITING THE SUM OR THING DUE
WITH THE JUDICIAL AUTHORITIES
SPECIAL FORMS OF PAYMENT (DAPAT)
4. TENDER OF PAYMENT & CONSIGNATION
EXAMPLE: D BORROWED P5M FROM C. ON DUE
DATE, D TENDERED PAYMENT IN P100 BILLS
TOTALLING 5M. C REFUSED TO ACCEPT PAYMENT.
2. AS TO FORM
a) EXPRESS – ORALLY/WRITING
b) IMPLIED - INFERRED BY CONDUCT
CAUSES OF EXTINGUISHMENT:
KINDS OF REMISSION/CONDONATION
3. AS TO CONSTITUTION
a) INTER VIVOS
- CONSTITUTED BY AGREEMENT OF BOTH
PARTIES (PARTAKES OF A DONATION)
b) MORTIS CAUSA
- CONSTITUTES BY LAST WILL & TESTAMENT
CAUSES OF EXTINGUISHMENT:
KINDS OF REMISSION/CONDONATION
3. AS TO CONSTITUTION
a) INTER VIVOS
- CONSTITUTED BY AGREEMENT OF BOTH
PARTIES (PARTAKES OF A DONATION)
b) MORTIS CAUSA
- CONSTITUTES BY LAST WILL & TESTAMENT
CAUSES OF EXTINGUISHMENT:
CONFUSION/MERGER
- MEETING IN THE SAME PERSON OF THE
QUALITIES OF CREDITOR AND DEBTOR WITH
RESPECT TO ONE AND THE SAME
OBLIGATION.
CAUSES OF EXTINGUISHMENT:
MERGER IN A JOINT OBLIGATION
COMPENSATION
- MODE OF EXTINGUISHING IN THEIR
CONCURRENT AMOUNT THOSE
OBLIGATIONS OF PERSONS WHO IN
THEIR OWN RIGHT ARE CREDITORS AND
DEBTORS OF EACH OTHER.
ESSENTIAL REQUISITES OF COMPENSATION
1. TWO PARTIES , PRINCIPAL CREDITORS AND PRINCIPAL DEBTORS;
A.ACCDG. TO PURPOSE
B.ACCDG., TO FORM
C.ACCDG; TO EXTENT
KINDS OF NOVATION
A.ACCDG. TO PURPOSE
1. REAL/OBJECTIVE
2. PERSONAL/SUBJECTIVE
KINDS OF NOVATION
2 FORMS OF NOVATION BY SUBSITUTION
OF THE PERSON OF THE DEBTOR :
1. EXPROMISION
- IS EFFECTED W/ CONSENT OF CREDITOR
AT THE INSTANCE OF THE NEW DEBTOR
EVEN W/OUT KNOWLEDGE/WILL OF
DEBTOR
KINDS OF NOVATION
TWO FORMS OF NOVATION BY SUBSITUTION
OF THE PERSON OF THE DEBTOR :
2. DELEGACION
- EFFECTED WITH THE CONSENT OF THE
CREDITOR AT THE INSTANCE OF THE OLD
DEBTOR W/ CONCURRENCE OF THE NEW
DEBTOR
CONTRACTS