NOTES AND PRACTICE QUESTIONS ON LAW ON OBLIGATIONS
AND CONTRACTS
INTRODUCTIONTOLAW and wrong within community.
Law Physical there are uniformities of
A rule of conduct, just and obligatory, Law actions and orders of
promulgated by legitimate authority for the sequence which are the
common good and observance (St. physical phenomena
Thomas Aquinas) State Law law that is promulgated and
enforced by the state
Characteristics of Law
1. It is a rule of conduct- law tells us what also known as positive law,
municipal law
shall be done and shall not be done.
2. It is obligatory- every person is require to Sources of law
follow the rule the fundamental law or
supreme law or highest
3. It is promulgated by legitimate authority
Constitution law of the land because it
is promulgated by the
people themselves.
4. It is of common observance and benefit
consists in the declaration
- Law must be observed by all for the benefit
Legislation of legal rules by a
for all
competent authority.
Administrative intended to clarify or
Branches of Government
or executive explain the law and carry
Legislative Executive Judicial orders, rules into effect its general
Branch Branch Branch and regulations provisions.
Enact the Implement Apply and
the decisions of the
law and enforces interpret the Supreme Court applying
the law law Judicial
or interpreting the laws or
Decisions or
Congress is Includes the The Philippine the Constitution form part
jurisprudence of the legal system in the
the legislative President, Judicial System
branch made Vice consists of Philippines
up of two President, Regular habits and practices which
houses, the Cabinet Courts, Special through long and
Senate and Secretaries Courts and Customs uninterrupted usage have
the House of and Executive Quasi-judicial acknowledged and
Representati Departments agencies approved by society
ves
1
, Subjects of law Classifications of law
Divine Law law of religion and faith As to its:
sense of justice, fairness and Substantive Law- portion of
Natural
righteousness by internal the body of law creating,
Law
dictates alone defining and regulating rights
totality of the norms of good PURPOS
and duties
E
Moral Law and right conduct growing out Adjective/Remedial/Procedu
of the collective sense of right ral Law- prescribes the manner
or procedure by which rights
may be enforced or their - Nature and sources of obligations and the
violations redressed rights and duties arising from agreements
and particular contracts (Book IV of the
Public Law- body of legal
CCP- R.A. 386)
rules which regulates the rights
and duties arising from the
Civil Code of the Philippines
relationship of state to the
SUBJECT Found in the Republic Act No. 386
people
MATTER Based on the Spanish Kodigo Civil that
Private Law- body of rules
which regulates the relations of took effect on Dec 71889
individuals with one another Approved as RA No.386 on June 18 1949
for purely private ends and took effect on August 30 1950
Organization of courts Article 3, Civil Code
Regular Courts judicial system consist
“Ignorance of law excuses no one from
of a hierarchy of
compliance therewith”
courts resembling
pyramid with
Supreme Court at the
apex CHAPTER 1: GENERAL PROVISIONS
Special Courts Sandiganbayan -a
special anti-graft ARTICLE 1156
court
Provides the definition of obligation,
in its passive aspect
Court of Tax Appeals -a
special tax court Obligation
created by law derived from Latin “Obligatio"
Quasi-Judicial administrative bodies means tying or binding
Agencies under the executive one is bound in favor of another to
branch performing give a thing, doing a certain act or not
quasi-judicial doing a certain act
functions
Law on Obligations and Contracts
2
, Note: Obligation not to give is not Right power which a
mentioned as it is already included in the person has under the
obligation not to do. law, to demand from
another
Obligation is a Juridical Necessity
Wrong is an act or omission
in case of non-compliance the Courts of one party in
of Justice may enforce its fulfillment violation of the legal
rights of another
Nature of Obligations under Civil Injury wrongful violation of
Code the legal right of
Civil Obligations Natural Obligations another
gives the creditor a based on equity or
right under the law to natural law Kinds of Obligations
enforce their According to the Subject Matter
performance in
courts of justice 1. Real Obligation obligation to give
2. Personal Positive Personal
Essential Requisites of an Obligation Obligations Obligation – obligation
to do or to render
1. Passive Subject he who has a duty service
(debtor/obligor)
Negative Personal
2. Active Subject he who has the right Obligation – obligation
(creditor/obligee) not to do also include
3. Object or the conduct required obligation not to give
Prestation to be observed by the
debtor (subject
matter). ARTICLE 1157
4. Juridical/ Legal binds or connects the specify the sources of obligation
Tie/ Vinculum parties to the
Juris obligations (efficient (1) law
cause). (2) contracts
Bilateral Obligations (3) quasi-contracts
(4) acts or omissions punished by law
Parties are reciprocally debtors and creditors
(5) quasi-delicts
Form of an Obligation
manner in which an obligation is ARTICLE 1158
manifested/ incurred
Legal Obligations- obligations arising from
(orally/
law.
writing or partly)
Distinguishment Note: Legal Obligations are not presumed
Special Laws- all other laws not contained in
Civil code
3
, ARTICLE 1159 ARTICLE 1161
Civil liability arising from crimes/
- refers to contractual obligations
delicts
A contract is valid if it is not contrary to law, Crimes or acts or omissions punished by
morals, good customs, public order and public law- arise from civil liability which is the
policy consequence of a criminal offense
Contract
Scope of Civil Liability
meeting of minds between two person
restitution
Void Contract in the eyes of law, it
does not exist thus, reparation for the damage caused
no obligation arises indemnification for
Unenforceable a contract that is valid consequential damages
Contract but cannot be
ARTICLE 1162
enforced
Quasi-delicts
Breach of Contract a party fails or refuses
to comply, without arise from damage cause to another by
legal reason or fault or negligence but no pre-existing
justification, with his contract
obligation under the obligation arising from fault or negligence
contract Requisites
1. act or omission
Compliance in good faith 2. fault or negligence
- performance in accordance with the 3. damage caused
stipulations or terms of the contract or 4. direct relation or connection of cause and
agreement effect between the act or omission and the
ARTICLE 1160 damage
Quasi-contracts 5. There is no pre-existing contractual relation
between the parties.
arise from Lawful, Unilateral and Voluntary
acts enforceable to the end that no one shall
be unjustly enriched or benefited at the CRIME QUASI-DELICT
expense of another There is malicious There is only
intent or criminal negligence.
negligence.
Kinds of Quasi- Contracts
Punishment Indemnification
Negotiorum Gestio Solutio Indebiti
Affects public Concerns private
voluntary created when interest. interest.
management of the something is received
property or affairs of when there is right to Criminal and Civil Civil Liability Only
another without the demand it or it was Liability
knowledge or consent unduly delivered
through mistake
of the creditor
4
AND CONTRACTS
INTRODUCTIONTOLAW and wrong within community.
Law Physical there are uniformities of
A rule of conduct, just and obligatory, Law actions and orders of
promulgated by legitimate authority for the sequence which are the
common good and observance (St. physical phenomena
Thomas Aquinas) State Law law that is promulgated and
enforced by the state
Characteristics of Law
1. It is a rule of conduct- law tells us what also known as positive law,
municipal law
shall be done and shall not be done.
2. It is obligatory- every person is require to Sources of law
follow the rule the fundamental law or
supreme law or highest
3. It is promulgated by legitimate authority
Constitution law of the land because it
is promulgated by the
people themselves.
4. It is of common observance and benefit
consists in the declaration
- Law must be observed by all for the benefit
Legislation of legal rules by a
for all
competent authority.
Administrative intended to clarify or
Branches of Government
or executive explain the law and carry
Legislative Executive Judicial orders, rules into effect its general
Branch Branch Branch and regulations provisions.
Enact the Implement Apply and
the decisions of the
law and enforces interpret the Supreme Court applying
the law law Judicial
or interpreting the laws or
Decisions or
Congress is Includes the The Philippine the Constitution form part
jurisprudence of the legal system in the
the legislative President, Judicial System
branch made Vice consists of Philippines
up of two President, Regular habits and practices which
houses, the Cabinet Courts, Special through long and
Senate and Secretaries Courts and Customs uninterrupted usage have
the House of and Executive Quasi-judicial acknowledged and
Representati Departments agencies approved by society
ves
1
, Subjects of law Classifications of law
Divine Law law of religion and faith As to its:
sense of justice, fairness and Substantive Law- portion of
Natural
righteousness by internal the body of law creating,
Law
dictates alone defining and regulating rights
totality of the norms of good PURPOS
and duties
E
Moral Law and right conduct growing out Adjective/Remedial/Procedu
of the collective sense of right ral Law- prescribes the manner
or procedure by which rights
may be enforced or their - Nature and sources of obligations and the
violations redressed rights and duties arising from agreements
and particular contracts (Book IV of the
Public Law- body of legal
CCP- R.A. 386)
rules which regulates the rights
and duties arising from the
Civil Code of the Philippines
relationship of state to the
SUBJECT Found in the Republic Act No. 386
people
MATTER Based on the Spanish Kodigo Civil that
Private Law- body of rules
which regulates the relations of took effect on Dec 71889
individuals with one another Approved as RA No.386 on June 18 1949
for purely private ends and took effect on August 30 1950
Organization of courts Article 3, Civil Code
Regular Courts judicial system consist
“Ignorance of law excuses no one from
of a hierarchy of
compliance therewith”
courts resembling
pyramid with
Supreme Court at the
apex CHAPTER 1: GENERAL PROVISIONS
Special Courts Sandiganbayan -a
special anti-graft ARTICLE 1156
court
Provides the definition of obligation,
in its passive aspect
Court of Tax Appeals -a
special tax court Obligation
created by law derived from Latin “Obligatio"
Quasi-Judicial administrative bodies means tying or binding
Agencies under the executive one is bound in favor of another to
branch performing give a thing, doing a certain act or not
quasi-judicial doing a certain act
functions
Law on Obligations and Contracts
2
, Note: Obligation not to give is not Right power which a
mentioned as it is already included in the person has under the
obligation not to do. law, to demand from
another
Obligation is a Juridical Necessity
Wrong is an act or omission
in case of non-compliance the Courts of one party in
of Justice may enforce its fulfillment violation of the legal
rights of another
Nature of Obligations under Civil Injury wrongful violation of
Code the legal right of
Civil Obligations Natural Obligations another
gives the creditor a based on equity or
right under the law to natural law Kinds of Obligations
enforce their According to the Subject Matter
performance in
courts of justice 1. Real Obligation obligation to give
2. Personal Positive Personal
Essential Requisites of an Obligation Obligations Obligation – obligation
to do or to render
1. Passive Subject he who has a duty service
(debtor/obligor)
Negative Personal
2. Active Subject he who has the right Obligation – obligation
(creditor/obligee) not to do also include
3. Object or the conduct required obligation not to give
Prestation to be observed by the
debtor (subject
matter). ARTICLE 1157
4. Juridical/ Legal binds or connects the specify the sources of obligation
Tie/ Vinculum parties to the
Juris obligations (efficient (1) law
cause). (2) contracts
Bilateral Obligations (3) quasi-contracts
(4) acts or omissions punished by law
Parties are reciprocally debtors and creditors
(5) quasi-delicts
Form of an Obligation
manner in which an obligation is ARTICLE 1158
manifested/ incurred
Legal Obligations- obligations arising from
(orally/
law.
writing or partly)
Distinguishment Note: Legal Obligations are not presumed
Special Laws- all other laws not contained in
Civil code
3
, ARTICLE 1159 ARTICLE 1161
Civil liability arising from crimes/
- refers to contractual obligations
delicts
A contract is valid if it is not contrary to law, Crimes or acts or omissions punished by
morals, good customs, public order and public law- arise from civil liability which is the
policy consequence of a criminal offense
Contract
Scope of Civil Liability
meeting of minds between two person
restitution
Void Contract in the eyes of law, it
does not exist thus, reparation for the damage caused
no obligation arises indemnification for
Unenforceable a contract that is valid consequential damages
Contract but cannot be
ARTICLE 1162
enforced
Quasi-delicts
Breach of Contract a party fails or refuses
to comply, without arise from damage cause to another by
legal reason or fault or negligence but no pre-existing
justification, with his contract
obligation under the obligation arising from fault or negligence
contract Requisites
1. act or omission
Compliance in good faith 2. fault or negligence
- performance in accordance with the 3. damage caused
stipulations or terms of the contract or 4. direct relation or connection of cause and
agreement effect between the act or omission and the
ARTICLE 1160 damage
Quasi-contracts 5. There is no pre-existing contractual relation
between the parties.
arise from Lawful, Unilateral and Voluntary
acts enforceable to the end that no one shall
be unjustly enriched or benefited at the CRIME QUASI-DELICT
expense of another There is malicious There is only
intent or criminal negligence.
negligence.
Kinds of Quasi- Contracts
Punishment Indemnification
Negotiorum Gestio Solutio Indebiti
Affects public Concerns private
voluntary created when interest. interest.
management of the something is received
property or affairs of when there is right to Criminal and Civil Civil Liability Only
another without the demand it or it was Liability
knowledge or consent unduly delivered
through mistake
of the creditor
4
