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(PDF) Obligations and Contracts Hector de Leon Reviewer
(PDF) Obligations and Contracts Hector de Leon Reviewer
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
Creditor or Obligee – he who has the RIGHT TO THE failure to state a cause of action
PERFORMANCE of the Obligation. 3. A cause of action only arises when the last element
occurs the moment a right has been transgressed
Debtor or Obligor – he who has the Obligation to comply (trespassed).
otherwise shall be visited by Harmful/ Undesirable Legal a. Right of action distinguished from maintain
Consequences b. Right of action/Right to commence
<procedural law – laws which establish
NATURE OF OBLIGATIONS (CC): procedure and rules of court and the court
1. Civil Obligations – obligations which give to the system and which matters are conducted>
creditor/obligee a RIGHT OF ACTION in courts of justice ii. Right to maintain an action <substantive
to enforce their performance. law – written law controlling rights and
2. Natural Obligations – actions of persons within jurisdiction>
NOT based on Positive Law (Law recognized by b. For every Right enjoyed by a person, there is a
gov’t authority); but on EQUITY and NATURAL LAW corresponding obligation on the part of another
(derived from nature and binding upon society); to respect such right.
Action per Contracts should be brought within 10 YEARS from the time the Right of Action Accrues <to exis
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