What is an obligation?
ARTICLE 1156. An obligation is a juridical necessity to
give, to do or not to do.
Why is it a juridical necessity?
- An obligation is a juridical necessity because in case
of noncompliance, the courts of justice may be
called upon by the aggrieved party to enforce its
fulfillment or, in default therefore, the economic
value that it represents.
- In simpler words, the creditor can sue the debtor.
Obligor – also known as “debtor”
Obligee – also known as “creditor”
In Accounting: Under the Law:
Debtor and creditor are The terms can pertain to
terms used exclusively for any obligation—to give,
a monetary obligation. to do, not to do
What are the sources of obligations?
Law, Contracts, Quasi-Contracts, Acts punished by law,
and Quasi-Delicts.
Why are laws sources of obligations?
Laws are sources of obligations because these are
imposed by the law itself.
And?
Because laws are imposed by the state which provides
sanctions for non-compliance.
What is a contract?
ARTICLE 1305. A contract is a meeting of minds
between two (2) persons whereby one binds himself,
with respect to the other, to give something or to
render some service.
How would you state the meaning of a contract which
incorporates the meaning of an obligation?
Contract is a meeting of minds between two persons
whereby one binds himself with respect to the other, to
give, to do, or not to do.
Why is a contract a source of an obligation?
- It arises from the stipulation of the parties
- It has the force of law
What are quasi-contracts?
A quasi-contract is that juridical relation resulting from
lawful, voluntary and unilateral acts by virtue of which
the parties become bound to each other to the end that
no one will be unjustly enriched or benefited at the
expense of another.
It is not properly a contract at all. In contract, there is a
meeting of minds while quasi-contract, there is no
consent but the same is supplied by fiction of law.
What are the two kinds of quasi-contracts?
1. Negotiorum gestio — the voluntary management of
the property or affairs of another without the
knowledge or consent of the latter (ART. 2144)
2. Solutio indebiti – the juridical relation which is
created when something is received when there is no
right to demand it and it was unduly delivered through
mistake. (ART. 2154) The requisites are:
a) there is no right to receive the thing delivered; and
b) the thing was delivered through mistake.
What is a delict?
It is a crime or an offense specifically an act or omission
punishable by law.
It covers two kinds of obligations:
- Criminal liability under the Revised Penal Code
- Civil liability under the Civil Code
What is a quasi-delict?
A quasi-delict is an act or omission by a person which
causes damage to another in his person, property, or
rights giving rise to an obligation to pay for the damage
done, there being fault or negligence but there is no
pre-existing contractual relation between the parties.
(ART. 2176)
How is delict different from quasi-delict?
Since there is no malicious intent in quasi-delict, the
obligor is only subject to a civil liability.