LEGAL ASPECTS MODULE 2

• Obligation is a moral or legal duty to perform refrain from performing an act.
• Contract is the meeting of minds between two people in which one person binds himself to give something or render service to the other.
• defined as a type of positive law that deals with the nature and sources of obligations

  Law on Obligations and Contracts
• Four Definitive Elements of Obligation

  1. active subject
  2. passive subject
  3. prestation
  4. vinculum juris
• active subject is the person who has the right or power to demand the performance or payment of the obligation
• passive subject is the person bound to perform or to pay.
• prestation is the object of the contract
• vinculum juris is also known as the juridical or legal tie and it is also known as efficient cause
• legal relation between the obligee and obligor

  vinculum juris
• examples of prestationto give

  contract of sale and contract loan
• example of prestation to do

  contract of labor or service contract
• Article 1157

  Obligations arise from:

  1. law
  2. contracts
  3. quasi-contracts
  4. acts or missions punishable by law
  5. quasi-delicts
• Payment of taxes - national internal revenue code (R.A. 8424)
• example of contract obligations

  1. payment
  2. delivery
  3. quality of goods
• quasi-contracts is a legal obligations imposed by law t o prevent unjust environment
• Quasi-contract is also called a contract implied in law or a constructive contract.
• ARTICLE 3 OF THE REVISED PENAL CODE OF THE PHILIPPINES

  Definition. — Acts and omissions punishable by law are

  felonies (delitos).
• Felonies are committed not only by means of deceit (dolo)

  but also by means of fault (culpa).
• means of deceit is dolo
• means of fault is culpa.
• quasi-delicts -Obligations arise from damages caused to another through an act or omission, there being fault or negligence, but no contractual relations exist between the parties.
• Article 2176 of the Civil Code defines a quasi-delict as limited to negligent acts or omissions and excludes the notion of willfulness or intent.
• Obligations to give a determinate thing:

  1. To deliver the thing which he has

  obligated himself to give. (Article

  1165, Civil Code of the

  Philippines)

  2. To take care of the thing with the

  proper diligence of a good father

  of a family. (Article 1163, Civil

  Code of the Philippines)

  3. To deliver all its accessories and

  accessions. (Article 1166, Civil

  Code of the Philippines)

  4. To pay damages in case of

  breach of obligation. (Article

  1170, Civil Code of the

  Philippines)
• Obligations to do:

  1. If the debtor fails to do what he is obliged to do, it will be done at his expense.
  2. If the work is done in contravention of the tenor of the obligation, it will be re-doneat debtor‘s expense.
  3. If the work is poorly done, it will be re-done at debtor‘s expense. (Article 1167, Civil Code of the Philippines)
• The sources of liability (for damages)

  1. Fraud.
  2. Negligence.
  3. Delay (Mora).
  4. Contravention of the tenor of the obligation
• The fraud is incidental fraud (dolo

  incidente) which is fraud incident to the

  performance of an obligation.
• The fraud is causal (dolo causante) or when

  fraud used to induce a person to agree to a

  contract.
• Negligence - The lack of diligence or carelessness (common carrier) is culpa contractual. And it is defined as the failure to exercise

  the diligence required by the nature of the obligation
• Delay (Mora). The debtor can be held liable for the

  delay or default in the fulfillment of his obligation only

  after the creditor has made a demand, judicial or

  extrajudicial, on the debtor,
• Delay (Mora), except:

  1. law expressly provides that demand is not necessary
  2. contract expressly stipulates that demand is not necessary
  3. time is of the essence
  4. demand would be useless
• Contravention of the tenor of the obligation - Any illicit

  act, which impairs the strict and faithful fulfillment of the

  obligation, or every kind of defective performance.
• The obligation is extinguished, and the debtor is

  not liable, except:

  a)object is generic

  b)debtors incurs in delay

  c)aw or contract expressly provides

  that the obligation will not be extinguished.
• Remedies of the Creditor against his debtor:

  1. Sue the debtor for collection
  2. Attachment of debtor‘s property, real or personal, except those which are exempt from execution
  3. Exercise all the rights and actions which the debtor may have against third persons, except those which are inherently personal to the debtor
  4. To impugn or contest acts of debtor which are intended to defraud his creditor (Action pauliana)
• TYPES OF CONTRACTS AS TO CAUSE

  ONEROUS

  GRATUITOUS OR LUCRATIVE

  REMUNERATORY
• ONEROUS - a contract of sale, barter,

  lease, and simple loans or mutuum

  with an interest stipulation.
• GRATUITOUS OR LUCRATIVE - such as

  commodatum and donation
• REMUNERATORY - where one

  prestation is given for a previously

  rendered benefit or service
• KINDS OF CONTRACTS AS TO DEPENDENCE OF ONE UPON ANOTHER

  • principal
  • accessory
  • preparatory
• PRINCIPAL – A CONTRACT WHICH CAN STAND ON

  ITS OWN, SUCH AS A CONTRACT OF SALE,

  BARTER, LEASE, LOAN.
• ACCESSORY – THOSE WHICH CANNOT STAND ON

  ITS OWN AND ARE DEPENDENT UPON OTHER

  CONTRACTS FOR ITS VALIDITY. E.G., GUARANTY,

  SURETYSHIP, MORTGAGE AND ANTICHRESIS.