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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
gov’t 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 person’s 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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