Chapter 4: Obligation and Contract

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Created by
April Kurta

Cards (16)

  • Obligations - refer to the duties or responsibilities that parties have towards each other as established in a contract or by law
  • Contract - is a legally binding agreement between two or more parties that establishes their rights and obligations.
  • ELEMENTS OF OBLIGATION
    1. Passive Subject
    2. Active Subject
    3. Prestation
    4. Juridical Tie
  • Passive subject – the person or party who has the duty to fulfil the obligation. Also called as obligor or debtor.
  • Active subject - the person who has the power to demand the fulfilment of an obligation. Also known as creditor or obligee.
  • Prestation – the object of the obligation either to give, to do, or not to do
  • Juridical tie – is the vinculum (unifying bond) which binds the two parties
  • SOURCE OF DAMAGES (LIABILITY)
    1. Dolo Incidente (Incidental fraud)
    2. Dolo Causante (Casual Fraud)
    3. Negligence or fault (Culpa)
    4. Delay
  • Dolo Incidente (Incidental fraud) - involves deceitful behavior that is not the main purpose of the contract or obligation but is intended to obtain some advantage or benefit for the party engaging in the deceitful behavior. Annulment of contract is not the remedy
  • Dolo Causante (Casual Fraud) - an intentional or willful act that causes harm or damage to another person. A fraud that is serious enough to render the contract voidable. The remedy to this kind of fraud is to annul the contract and compensate the damages.
  • Negligence or fault (Culpa) - consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time and of the place.
  • Delay – is the non-fulfillment of obligation with the respect to time.
  • HOW TO DEMAND THE FULFILMENT OF OBLIGATION:
    1. Judicial Demand
    2. Extrajuducial Demand
  • Judicial Demand – The creditor goes to court to fic the period within which the debtor performs the obligation
  • Extrajudicial Demand – The creditor writes a demand letter or demands orally.
  • Contravention of the tenor of the obligation – The non-performance or failure of the party to fulfil its duty and liable for damages.