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Obligations and Contracts Hector de Leon Reviewer PDF
Obligations and Contracts Hector de Leon Reviewer PDF
Obligation is a JURIDICAL NECESSITY Wrong/ Cause of Action ACT OR OMISSION of one party in
to give, to do or not to do (a.115) violation of the legal right(s) of another, causing injury to the
latter. Example: breach of contract
Obligatio Latin word meaning tying or binding
ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION:
Obligation is a LEGAL RELATION established between one 1. Essential Elements:
party and another whereby the latter is bound to the a. There is a LEGAL RIGHT in favor of a person
fulfillment of a PRESTATION (the conduct which has to be b. There is a LEGAL OBLIGATION on the part
observed by the Debtor/Obligor) which the former may of another
demand from him c. There is an ACT or OMISSION in breach or
violation of the said right by the defendant
Juridical Necessity in case of non-compliance the courts (one being sued in civil action or prosecuted
may call upon to enforce its fulfillment or, the economic in a criminal action) with consequential
value it represents. injury or damage to the plaintiff (one who
brings an action at law) for which he may
Damages represents the SUM OF MONEY given as a maintain an act for damages or appropriate
compensation for the injury or harm suffered by the relief (assistance)
creditor/oblige for the violation of his rights. 2. If any element is absent, complaint becomes
vulnerable to motion to dismiss on the ground of
failure to state a cause of action
Creditor or Obligee he who has the RIGHT TO THE
3. A cause of action only arises when the last element
PERFORMANCE of the Obligation.
occurs the moment a right has been transgressed
(trespassed).
Debtor or Obligor he who has the Obligation to comply a. Right of action distinguished from maintain
otherwise shall be visited by Harmful/ Undesirable Legal b. Right of action/Right to commence
Consequences <procedural law laws which establish
procedure and rules of court and the court
NATURE OF OBLIGATIONS (CC): system and which matters are conducted>
1. Civil Obligations obligations which give to the ii. Right to maintain an action <substantive
creditor/obligee a RIGHT OF ACTION in courts of justice law written law controlling rights and
to enforce their performance. actions of persons within jurisdiction>
2. Natural Obligations b. For every Right enjoyed by a person, there is a
NOT based on Positive Law (Law recognized by corresponding obligation on the part of another
govt authority); but on EQUITY and NATURAL LAW to respect such right.
(derived from nature and binding upon society);
does NOT grant a Right of Action to enforce their
performance; if voluntary fulfillment by debtor,
Action per Contracts should be brought within 10 YEARS from the time
cannot recover what has been delivered
the Right of Action Accrues <to exist as legally enforceable claim>
ESSENTIAL ELEMENTS OF OBLIGATIONS:
(1) Active Subject (Creditor/Obligee) or the person
who is entitled to DEMAND the fulfillment of the
(Contracts) accrues only when an actual breach or
obligation; he who has the RIGHT <power a person
violation occurs
has under the law to demand from another any
Period of Prescription from the occurrence of breach
prestation>
(2) Passive Subject (Debtor/Obligor) person who is
Injury the ILLEGAL INVASION of a legal right; wrongful
bound to the fulfillment of the obligation; he who
act or omission which causes loss or harm to another
has the DUTY/OBLIGATION <act or performance
which the law will enforce>
(3) Object/Prestation SUBJECT MATTER of the Damage Is the LOSS, HURT, or HARM which results
obligation or the CONDUCT required to be observed from the injury
by the debtor (giving, doing, or not doing)
(4) Juridical Tie/Legal Tie EFFICIENT CAUSE or that Damages denotes the SUM OF MONEY recoverable as
which BINDS OR CONNECTS the parties to the amends <compensation for loss or injury> for the
obligation. The tie can be be easily determined by wrongful act or omission
knowing the source of obligation.
Example: Injury is the LEGAL WRONG to be redressed
X bound himself to construct a house for Y for 1M, contract <remedied/compensated>
X is the debtor/obligor/passive subject
Y is the creditor/oblige/active subject PROOF OF LOSS FOR INJURY:
House object/prestation There must be
Contract juridical tie (1) Wrongful Violation of a legal right/ Injury;
(2) Loss or Damage caused to him by such violation
As a General Rule, the Law does not require any FORM in * One who makes use of his legal right does no injury
Obligations arising from contract nor from other sources * Qui jure suo utitur mullum damnum facit
* If damages result from a persons exercise of legal right
* Damnum absque injuria (damage without injury)
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OBLIGATIONS AND CONTRACTS
by: Hector S. de Leon
SOURCES OF OBLIGATIONS:
Obligations arise from:
1. Law statutes, legislative enactments;
CLASSIFICATIONS OF SOURCES:
(1) Those emanating from LAW
(2) Those emanating from PRIVATE ACTS:
a. Licit Acts Contracts & Quasi-contracts
b. Illicit Acts
Punishable-delicts;
not punishable-quasi-delicts
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