DANIEL THE GREAT

Business Law (obligation and Contract)

Summary of Oblicon and Permit

Question:

1. Is moral law obligatory in nature?

Answer: Yes, Moral law in nature create peace and harmony towards society. It does not
only for people to have freedom but moral law will also help to protect the rights of everyone
and the right to be respected. Thus, moral law in nature is obligatory for it allows people in
society, living or non-living things to live with peace and with equal rights. Without moral
law in nature, nature may damage as the result of illegal activities of human being and people
in society may not be at peace due to the absence of moral law

2. Is moral law binding in our civil conduct?

Answer: Yes, Ethics is a form of natural law. Therefore what make it binds is the fact that
everyone wants what is best for everyone and thus pushes us to be Better and respect others.
Assessment(Summative)
Answer: The Telephone company is correct because Baldamero’s name is under the service
contract and thus the company even Baldamero has nothing to do with Jose after he left the
unpaid bills. Thus the service company has the right to force Baldamero to paid the bills
since his name was written in the contract it clearly means that the telephone company has no
contract agreement with Jose. Therefore Baldamero is liable for the unpaid bills.

WEEK 2
Activities(Formative)
Question:
After trial, the trial court rendered a decision finding X guilty beyond reasonable doubt with
murder for allegedly shooting Y with firearms which directly caused his death and was
sentence to suffer the penalty of reclusion Perpetua. He was committed to NBP while X’s
case is on appeal with the SC, X
died at the NBP hospital. Will the death of X during appeal of his conviction totally
extinguished his civil liability? Why?
Answer: The death of X during the pendency of his appeal Extinguished his criminal as well
as his civil liability based solely on delict (civil liability ex delicto). It is totally extinguished
because the offenders death occurs before the final judgement.
Art 89. How criminal liability is totally extingusihed:1.By the death of the convict, as to the
personal penalties, and as to pecuniary penalties, liability. Therefore is extinguished only
when the death of the offender occurs before final judgment.
Assessment(Summative)
In your own words, discuss the sources of obligation
Answer: The sources of obligation arise from the law and contracts wherein there is an
agreement means obligations to follow under the name of the agreement contract and this the
law set a rules as a part of civil legal system. Law and Contract define the responsibilities or
obligation of a person in a legal matter.
WEEK 3
Activities(Formative)
Question

1. Distinguish determine thing from indeterminate thing

Answer: Determinate thing is when the obligator or the debtor designated his obligations into
the particular agreement. There is a proper delivery of the object. While indeterminate thing
is when the obligator or debtor do not have a proper delivery of the object. It is the obligation
where the agreement was not clearly designated.
Assessment(Summative)
1.when is delay arises?
Answer: Delay arises when the obligation of the obligator was not delivered on time or either
the obligator loss the agreement. It is a sign that the obligator failed to complied his
obligation during the agreement day. This kind of circumstances where delay is arises.
WEEK 4
Activities(Formative)
Questions:

1. Give example of fortuitous events

Anthony promise to pay his debt to Mark amounting ₱10,000 at the end of the month of
January 31,2021. But tragedy happened out of nowhere. Anthony’s house was washout and
h9s things are all gone due to a strong typhoon. Anthony refuse to pay his debt to Mark and
asking for another extension because he don’t have a thing and he need to start all over again.
In this case the obligation of Anthony to Mark was not followed as a part of the agreement
due to fortuitous event that is out of a person’s control and just happened unexpectedly.

2. What is an accion subrogatoria?

Answer: This action takes against someone who has unpaid debt. Creditor used accion
subrogatoria that will exercise the debtors right to present his assets to pay his
obligations. Through the assets of a debtor, the creditor may satisfied to the fulfillment of
the debtors obligation.
Assessment(Summative)
Distinguish fraud from negligence?
Answer: Fraud is the act of a person which is intentionally do or it is already a motive to do bad
things. The obligation in the court of a person who committed fraud is more predicament to
resolve the case especially when the evident is proven. While negligence is the act of a person
unreasonably lax of fulfilling the obligation. The obligation in the court may resolve immediately
due to unexpected incident.
WEEK 5
Activities(Formative)
Question:

1. How is fraud committed?

Answer: fraud is committed when a person’s act is false or in deceitful ways. It is the act
where a person is intentionally committed to the act.

2. Discuss the kinds of negligence as a source of obligation

Answer: There are three kinds of negligence as a source of obligation

1. Culpa Contractual(contractual negligence) it is the negligence in contracts that result to

breach
2. Civil negligence(Culpa Aquiliana or negligence which by itself the source of an
obligation between the parties not so related before by any pre-existing contract. Also
called tort as quasi-delict (Art-2179)
3. Criminal negligence (culpa criminal) Occurs when a person does an act which is in
regard to the obvious risk to the safety of human life
3.Explain the kinds of damages

❖ Moral damages it include physical suffering or when a person is affected mentally.

Like being mentally abused by someone
❖ Exemplary damages when physical harm is caused for example :Car Wrecks
❖ Nominal damages is when a wrong occurs. Example :Breach of contract
❖ Temperate damages is when damages happen but the amount isn’t proven
❖ Actual damage is when real damage occurs for example destruction of property
❖ Liquidated damages is determined amount is agreed upon. When you accept a
contract but breach the contract for more money.

Assessment(Summative)
Give and discuss the distinction between the three kind of negligence
 1. Culpa Contractual – This is negligence in the performance of a contract. There is
a pre-contractual relation. It also applies master-servant rule(ex:The negligence of
the employee is also the negligence of the employee)
2. Culpa Aquiliana (civil negligence) These are acts or omissions that cause damage
to another. There being no contractual relation between the parties (Art. 2176).In
culpa Aquiliana there is no pre-existing contractual relation. That means there is
no contract between the parties involved. The master rule does not apply (ex: The
negligence of the employee is not the negligence of the employer)
3. Culpa Criminal(Criminal negligence) This is negligence that results in the
commission of crime. Because of the negligence why there is a result of a crime.

WEEK 6 Activities(Formative)
Questions:
1.what is a fortuitous event?
Answer: Fortuitous event is an event that happens by surprise, out of a persons control. It
is not expected and just happened by nature.

Assessment(Summative)
1.what is the effect of fortuitous event in an obligation?

Answer: The effect of a fortuitous event in an obligation would be there is a breach of

contract because of mother nature.
WEEK 7 Activities(Formative)
Questions:
1.Discuss the right of creditor

Answer: Creditors have the right to exhaust legal options given to them by law to receive
full payment

2.Discuss the pure and conditional obligations

Answer: Pure obligation is usually a written agreement in which you agree to pay a
certain amount by a certain amount of time. Conditional obligation is an agreement in
which you will pay but only if certain criteria is met.

Assessment(Summative)
1.What are the presumption and when it will be applicable?

Answer: Presumption is when a person has a proof to accuse someone’s doing isn’t right.
Then a court might dismiss the obligation
Ex: When an employee has a proof what their employer is doing isn’t right. Then the
court might dismiss the obligation.
However it will not be applicable unless proven guilty.

2.What is suspensive and resolutory condition?

Answer: Suspensive condition is when a contract is void unless a condition is met.

Resolutory a condition is when an employee enters a contract but is void because rules
were broken.
WEEK 8
Activities(Formative) Questions:
1.Summarize in your own words the rules on improvement, loss and deterioration

Answer: The rule of improvement is the object may improve through nature or time.
Basically this improvement is a creditors benefit. This rule of improvement means that
the creditor is temporary derive income or benefit of the debtors property to fulfill the
obligation
In the rules on loss the obligation of the debtor may execute in the court depending on the
damages or fault cause by a creditor. However this obligation may extinguished when
evident is proven that the debtor is not liable for the object lost or it is not the fault of a
debtor. Eventually in deterioration the obligation is arise to debtors if the debtor is proven
guilty and thus the debtor is liable for the damages. In this case the creditor may apply
the improvement to choose between. Rescission plus damages and fulfillment plus
damage. But the obligation may deteriorate if it is not the fault of debtor.

Assessment(Summative)
What are the cases where one can avail his right to rescind?

Answer: One can avail his right to rescind if he can prove to the court that he did not
violate the contract agreement nor causes the fault. The obligation may rescind not unless
proven guilty. On the other hand, if the debtor was proven guilty of the fault or damages,
the creditor has given the right to choose whether he/she will rescind the case or make the
debtors liable for the damages.
WEEK 9 Activities(Formative)
Questions:

What is the importance of period in an obligation?

Answer: The importance of period in an obligation is period will give a definite time of
when was the obligation of a debtor must be perform. This period will be the basis for an
obligation to extinguish right after the obligation is perform in a certain time.

Assessment(Summative)
Explain in your own words the right of choice in an alternative obligation

Answer: In this kind of obligation various prestrations are due but performance of only
one is sufficient
Ex:The debtor bind himself to give object 1 and object 2 to B several prestation are due
but performance of only one object is sufficient for the fulfillment of the obligation. As
the general rule the right of choice is given to a debtors but way of exception the right of
Choice may given to the creditor but it must be done at expressly. The performance must
be complete. However there is a limitation of the right of debtor where debtor cannot
choose which is impossible or unlawful. The debtor must perform those prestation.
 WEEK 10
Activities(Formative) Questions:
1. The obligation becomes solidary when?
Answer: The obligation becomes solidary when both parties agreed to bound together
for whatever liabilities will arise as a way to fulfill the obligation to creditor. When
two are performing each liability to pay is called solidary.
Assessment(Summative)

1. The obligation becomes joint when?

Answer: The obligation becomes joint when the debtors are bound to perform the
obligation together and the creditor may require performance from all of them
together.
WEEK 11
Activities(Formative)
Questions:
Discuss the concept indivisibility as against from solidary obligation
Answer: Indivisibility refers to nature of obligation. It may exist even if there is only
one creditor. In indivisibility the obligation may arise for whoever make the fault.
Because the fault of one is not the fault of others. While solidary obligation consist of
parties which tie or bound together for the performance as an obligation. The fault of
one is the fault of the debtor. Hence solidarity needs at least two debtor and creditors.
Assessment(Summative)
Discuss payment as a mode of extinguishing an obligation
Answer: Payment made by a debtor to extinguished the obligation. It’s either in the
delivery of the thing or the rendition of the service which is the object of the
obligation. If the debtors is totally paid his obligation then the obligation may
extinguished. Debtors may use payment or performance as a mode of extinguishing an
obligation but depending in the fulfillment of creditors right and satisfaction
WEEK 12
Activities(Formative)
Questions:
Discuss the Concept of remission
Answer : Remission is the Extinguishment or release of a debt. An obligation of a debtor
becomes donation through the existing of remission granted by a creditor to a debtor. Therefore
debtors who obtain remission may extinguished the obligation to the creditor and obligation may
consider as donation because the debtor has nothing to pay to the creditor.
Assessment(Summative)
Discuss the 3 kinds of defenses for solidary debtors
Answer: 1. Those derived from the nature of the obligations
2. Those personal to the debtor sued
3. Defenses personal to his co-debtor
WEEK 13
Activities(Formative)
Questions:
What is your understanding of a penal clause?
Answer : when we say penal clause this means that there is another obligation attached to the
principal one. Penal clause requiring a person to perform its obligation, payment or the
responsibility. Another term for penal clause is a breach of contract which the obligor refuses to
pay or perform his obligation. In case of noncompliance, a person may punishable by law or
receive a penalty for not performing the said obligation

Assessment (summative)
When is an obligation with penal clause arises?
Answer: Penal Clause arise only when it is demandable in accordance with provisions of the
Civil code. This means that the penalty, as a stipulation in a contract, is demandable only if ere is
a breach of the obligation and it is not contrary to law, morals, good customs, public order or
public policy.
WEEK 14
Activity (Formative
What are the classifications of contracts
Answer : The Classification of Contracts are:
a. According to perfection or formation:
b. According to cause or equivalence of the value of prestations
c. According to importance or dependence of one upon another.
d. According to the parties obligated:
e. According to their name or designation:
f. According to risk of fulfillment
g. According to the time of performance or fulfillment
h. According to subject matter
i. According to the evidence required for its proof
j. According to the number of persons actually and physically entering into the contracts.
k. According to the number of persons who participated in the drafting of the contract:
1. According to the nature of the contract

Assessment(Summative)
What are the essential requisites of contracts and explain them.
Answer: 1.A meeting of the minds between the parties, manifested through offer and acceptance;
- An “offer” is defined as an expression of willingness to contract on specific terms, and it is
made with the intention that it will become binding on the parties as soon as it is accepted by the
person to whom it is being addressed to (the “offeree”)
2.Consideration;- the general rule is that a promise is only enforceable if it is supported by
consideration. “Consideration” is something that has value in the eyes of the law and given in
exchange for a promise
3.An intention to create legal relations;- there must be an intention by both parties to create legal
relations. The law makes a determination based on the facts at hand. Usually the law is unlikely
to find such an intention in a social or domestic setting.
4.Parties must have a capacity to contract; and -broadly speaking, minors (below 21), or mentally
incapacitated persons, do not have the capacity to enter into a contract. However, certain
contracts such as sale of goods, services, or employment contracts, remain binding on minors.
5.The parties must freely consent to the agreement - under the law : both parties must freely
consent to the agreement. This means that if one party coerces the other into signing the contract,
via duress or undue influence, the law may not recognize its legality WEEK 15
Activity(FORMATIVE)
Facts: A student who had finished 3 % semesters in the College of Law of the Arellano
University transferred to another law school for his last semester. For the 3 % semesters he
stayed at the Arellanno University, he enjoyed a scholarship, hence was not required to pay fees.
When he sought transfer and his transcript of grades, he was asked to reimburse all the
scholarship grants on the theory that when he accepted the scholarship, the agreement precisely
provided for a refund in case of transfer.
Issue: Is such a proviso valid?
Held: The proviso is void, and contravenes both morals and public policy. Scholarships should
not be propaganda matter, they are awards for merit. Hence, the student need not reimburse.
Answer : The proviso is valid since the agreement was already held before the scholarship is
grant to the student. This only means that the student who take the scholarship is already aware
for reimbursement if transfer is made. However reimbursement pertaining to a scholarship
granted to a student should not be exercise and tolerate because scholarship should award for
merit.
Assessment(SUMMATIVE)
Question: On Jan. 4, 1945, Cornejo offered to buy Calupitan's land for Php650,000 (Japanese
money) with a deposit of Php70,000. The balance was to be paid on or before Jan. 19, 1945.
Calupitan agreed. But on Ja. 6, 1945, the buyer gave only Php65,000 as deposit instead of
Php70,000, and he wrote to Calupitan that the balance was to be paid on January 25 ,1945.
Calupitan agreed to this new plan, but imposed the condition that said balance should be given in
genuine Philippine money. On Jan. 22, 1945 Cornejo wanted to give the balance in Japanese
money but he could not find Calupitan, so he consigned said balançe in court. At the same time,
he sued. Calupitan for specific performance and damages. Discuss your answer
Answer: In this case both parties has agreed if when should the obligation must perform. At the
very first day of the payment transaction we can observe in the case that a debtor doesn’t follow
the agreement because instead of depositing 70,000 he only give 65,000 to the creditor. Which is
not part of the agreement but still the creditor Calupitan accept the deposit money worth of
65,000p,however he treat it as a new plan and imposed the condition that the said balance should
be given in genuine Philippine money. I think the creditor has the right to sued Cornejo because
what Cornejos done is contrary to their agreement with Calupitan. The action of Cornejo
resulting for a breach of contract. Therefore a creditor has the right to justify his rights since he
was not fully satisfied about Cornejo performance in fulfilling the obligation. However I think
the case file by Calupitan against to Cornejo for breaching the contract is only a slight damage
since Cornejo is willing to pay his obligation dated on Jan 22,1945 instead of Jan 25,1945 which
agreed by both. But the thing is Cornejo use a Japanese money instead of genuine Philippine
money ask by a creditor. I think the issue of this case may resolve immediately because the
grievance case was not really strong however a debtor still liable for the damage and this
depends on the forgiveness or decision of creditor and the court.

WEEK 16
Activity (formative)
How is consent vitiated?
Answer: Consent is only vitiated by mistake, violence, intimidation, undue influence or fraud
(vitiated consent) This means that a person committing any kinds of wrong actions the consent
might vitiated due to the false action
Assessment(Summative)
What is fraud and explain kinds.
Answer: Fraud is the act of a person or someone which intentionally wanting to gain something
which is illegal.
Kind of Frauds are:
a. Fraud in the celébration of the contract (this is fraud proper):

1. Dolo causante (or casual fraud) : Were it not for the fraud, the other party would
not have consented. Effect of this kind of fraud is voidable.
2. Dolo incidente ( or incidental fraud) : Even without the fraud the parties would
have agreed just the same, hence the fraud was only incidental in causing consent. Very
likely though, different terms would have been agreed upon. Effect of this kind of fraud
is valid, but there can be an action for damages.
b. Fraud in the performance of the. Obligations stipulated in the con- tract. This kind of
fraud presupposes the existence of an al- ready perfected contract.
Which means that giving or performing a thing that is not part in the agreement contract but a
person still accept it because he knows nothing.

Name: JESSICA D. TUMARAO BSBA-HRM II Date submitted: June 1,2021

Subject : BUSINESS LAW(OBLIGATION & CONTRACT)
Instructor: Mr. Kenneth Lyster Hebra
MIDTERM PAPER EXAM

Case Analysis 1
Intro
Police Senior Master Sergeant Jonel Montales Nuezca was facing criminal and administrative
charges after shooting his neighbors Sonia Gregorio, 55 and her son Frank Antony 25, during a
quarrel in Paniqui Tarlac on December 20, 2020.

Fact of the Case

PSMS Jonel Nuezca shot and killed his neighbors, Sonya Gregorio and her son Frank Anthony in
Barangay Cabayaoasan on December 20, 2020 over an altercation involving boga, a homemade
noisemaker cannon usually made from PVC, bamboo or tin cans, and over an old, right-way
dispute. The shooting incident, recorded on a mobile has since gone viral on social media. The
case were docketed as criminal case Nos.313-20 and 314-20 at the regional trial court.

Ruling of the Court

The Paniqui Regional Trial Court (RTC) branch 67, presided by Judge Bernard Dungo Fajardo,
was set to conduct it first order on the case Jan.4, 2020. No bail was recommended for Nuezca,
who is now detained at a Bureau of Jail Management and Penology facility. The criminal charge
sheet filed with the RTC stated that Sonya 52 was shot twice in the back of the head while her
son, Frank Anthony 25 was shot in his head while defenseless as he was then being embraced his
mother.

Personal Output

PSMC Jonel Nuezca is found guilty beyond reasonable doubt and therefore liable for the death
and damages cause to Gregorio family. This case is consider criminal negligence (Culpa
Criminal) because the act of defendant is obviously cause the death of two person with complete
evidence. Thus, Nuezca fault was clearly committed for violation to police protocol and violate
the government agreement as a public servant.

Case Analysis 2

JANET LIM NAPOLES, PETITIONER VS.

SANDIGANBAYAN (THIRD DIVISION) Respondent

Before this court is a petition for certiorari under Rule 65 of the Rules of court, which sought to
nullify and set aside the Resolutions dated October 16, 2015 and March 2, 2016 of the
Sandiganbayan in SB-14-CRM-0238. These Resolutions denied Janet Lim Napoles application
for bail because of the evidence of her guilt for the crime of Plunder is strong.
Facts of the Case

On September 16, 2013, the office of the Ombudsman received the report of the National Bureau
of Investigation (NBI), regarding its investigation on several persons, including Napoles, former
Senator Juan Ponce Enrile and his former chief of staff Atty. Jessica Lucila Reyes. The NBI
recommended to prosecute Napoles former Senator Enrile, Reyes and several other named
individuals for the crime of plunder.
In 2004 to 2010, or there about (SIC) in the Philippines, and within this honorable court’s
jurisdiction above-named accused Juan Ponce Enrile, then a Philippine Senator JESSICA
LUCILA G. REYES, then chief of staff of Senator Emiles office, both public officers
committing the offense in relation to their respective offices conspiring with one another and
with Janet Lim Napoles, Ronald John Lim and John Raymund De Asis, did there and then
wilfully, unlawfully, and criminally amass, accumulate and/or acquire ill-gotten wealth
amounting to at least One Hundred Seventy Two Million Eight Hundred Thirty Four Thousand
Five Hundred Pesos (Php 172, 834, 500.00).

Ruling of the Court

Preliminarily, it should be emphasized that since this is a petition for certiorari under Rule 65 of
the Rules of Court, this court’s review is limited to whether the Sandiganbayan gravely abused
its discretion amounting to lack of excess of jurisdiction in issuing its assailed Resolutions
denying Napoles application for bail. The court’s certiorari jurisdiction covers only errors of
jurisdiction on the part of the Sandiganbayan. It should be borne in mind that not every error in
the proceedings, or every erroneous conclusion of law or fact constitutes graves abuse of
discretion. Errors in the appreciation of the parties evidence, including the conclusions anchored
on these findings, are not correctible by the writ of certiorari.

Personal Output
Janet Lim Napoles and among others is seriously committed illegal detention due to its wrong
supervision on duty. Until now Janet Lim Napoles remained in prison because there is sufficient
evidence against her and among others that they committed a violation of the government rule
which the evidence show a proof that Janet Napoles and others did not follow the agreement as a
part of their duty and are said to be punish and charge to the fault as being negligence. This case
is an example of Culpa Contractual in the sources of obligation because the dependant has a fault
and failed to perform its responsibility and lawfully.
Case Analysis 3

ABS-CBN file a petition to void the cease and desist order of the National Telecommunications
Commission (NTC) and asked for an urgent Temporary Restraining Order (TRO) so it can be
back on air as soon as possible.

Facts of the Case

ABS-CBN broadcast franchise, granted on March 30, 1995 expired on May 4, 2020. Disputes
between the government of President Rodrigo Duterte and arose on the terms and conditions of
the franchise renewal agreement. Amid the controversy, the congress of the Philippines, the
Legislature of the country, was unable to renew the franchise before its expiration date. The
congressional franchise expired on May 4, 2020 as the Philippines was dealing with the effect of
covid-19 pandemic and enhanced community quarantine in Luzon. Beginning in 2014, the
network had repeatedly applied for the renewal of their broadcast franchise through private bills
that had been pending in the House of Representative but had not been addressed by the 16 th, 17th
and 18th congresses of the Philippines. Prominent figures in ABS-CBN Corporation, the political
opposition in the Philippines, media advocacy groups and international press have a labelled the
refusal of the congress to renew the franchise as a result of President Duterte’s pressure for ABS-
CBN to cease broadcasting, and a direct attack on the country’s democracy and press freedoms.
Ruling of the Court

The Supreme Court (SC) junked the quo warranto petition filed against ABS-CBN Corp. by the
office of the Solicitor General (OSG) for being most.
The justices unanimously voted to throw out the petition filed by Solicitor General Jose Calida
during deliberations led by Chief Justice Diosdado Peralta.
Brian Keith Hosaka, the court’s Public Information Office Chief, confirm that the case had been
dismissed.

Personal Output

ABS-CBN Corp. violated the terms of its franchise by offering Pay Per-view channels via TV
Plus which is supposed to be used for free by the public. In this case ABS-CBN is obviously
committed to the fault or negligence. Being bias, failed to follow the agreement and lapses to
comply those requirement to operate resulted to Breach of Contract. Thus ABS-CBN petition
was not granted due to its serious fault or negligence on its obligations.

Case Analysis 4

OLIVER B. FELIX VS.

JULITO VITRIOLO

Before this Court is a Petition for Review on Certiorari under Rule 45, of the Rules of Court,
assailing the Decision dated August 17, 2017 and the Resolution dated January 29, 2018 of the
Court of Appeals (CA) in CA-G.R. SP No. 149063 which modified the Joint Resolution of the
Ombudsman and imposed upon Julito D. Vitriolo the penalty of suspension for a period of 30
days for violation of section 5(a) of Republic Act. No. (R.A.) 6713, otherwise known as the
“Code of Conduct and Ethical Standards for Public Officials and employees”.

Facts of the Case

Based on the records, in September 1996, Pamantasan ng Lungsod ng Maynila (PLM) and the
National College of Physical Education (NCPE) entered into a Memorandum of Agreement
(MOA) for the creation of the Physical Education Program for undergraduate and graduate
students. However, on September 29, 2003, the Securities and Exchange Commission (SEC)
revoked the registration of NCPE for non-compliance with reportorial requirements.
Nevertheless, the MOA was renewed in September 2005. On September 28, 2007, then PLM
President Adel Tamano, suspended the PLM NCPE MOA based on the Audit Observation
Memorandum of the Commission on Audit (COA) stating that the program was prejudicial to the
interest of PLM. The suspension of the MOA took effect in September 2008.

Ruling of the Court

In its Decision dated August 17, 2017, the CA modified the decision of the Ombudsman and
instead suspended Vitriolo for 30 days for violation of Section s(a) of RA 6713.
The CA agreed that Vitriolo indeed failed to promptly act on the letters dated May 21, 2010 and
June 29, 2010 of Felix. Such inaction is a violation of section s(a) of R.A. 6713. However, the
omission did not amount to gross neglect of duty that justifies the dismissal of Vitriolo from
services.
The CA convinced that contrary to Felix allegation, Vitriolo did not disregard the request for
investigation and in fact referred the matter to the appropriate offices of CHED. Hence, as
observed by the CA, the only infraction committed by Vitriolo was his failure to reply to the
letters and communicate to Felix specific actions he has taken or to be taken by his office.

Personal Output

The defendant in this case is therefore liable for the fault he made because there is negligence for
not responding the letter of the petitioner immediately. The defendant will face punishment as
consequences to his action. The act of defendant is consider negligence because he did an action
that is not part of his duty or contrary to the agreement contract. Thus the defendant is seriously
committed fault or negligence.

Case Analysis 5

ADOLFO C. PALMA and RAFAEL

PALMA – Petitioners Vs.
PETRON CORPORATIONS – Respondent

This resolve the Petition for Review on Certiorari assailing the Decision dated January 16, 2017
of the Court of Appeals (CA) in
CA-G.R. SP No. 143888 that denied the petition of Annulment of Judgement with Application
for a Temporary Restraining Order and/or Writ of Preliminary Injunction; and the Resolution
dated April 20, 2017 denying Adolfo C. Palma, Rafael Palma (collectively, petitioners) along
with Rogelio Baltazar, and Jaime Velasco’s Motion for Reconsideration.

The Facts of the Case

On November 26, 1993, Petron Corporation (Petron) and the

Philippine National Oil Company (PNOC) entered into a 25-year Lease Agreement for Refinery
Properties over various landholdings of
PNOC in Barangay Alangan, Limay, Bataan with a total land area 0f 2,397,929 square meters
(leased premises) for the use of Petron Bataan Refinery (PBR). Forming part of the Leased
premises is
Cadastral Lot No. 257 under Transfer Certificate of Title (TCT) No. T-167116 of the Registry of
Deeds of Bataan covering an area of 92,392 square meters situated along Roman Superhighway.
Since the early 1980s, petitioners had been occupying apportion of Lot No. 257-A by mere
tolerance and acquiescence of PNOC in 1993, it continued to allow and tolerate petitioners use
and possession of the premises for humanitarian consideration since there was still no immediate
need and use of the area.
Sometime in 2007, Petron informed petitioners as well as the other families staying in the
premises that the area would be used as the construction site of Petron Skills Training Center.
Petron advised petitioners that they should start looking for a place to relocate before the
construction starts in the last quarter of 2008.

Ruling of the Court

The petitions lacks merit.
The MTC Decision in Civil Case No.421 over the subject property was rendered on July 1, 2009.
Herein petitioners appealed the Decision to the RTC docketed as Civil Case No.817-ML. in an
order dated February 10, 2010, the RTC dismissed the appeal. Subsequently, it denied petitioners
motion for reconsideration on
April 4, 2011.

Personal Output

The petitioner did not succeed to what he wants to happen into the dependant because there is no
rational basis to gross the neglect of dependant. Therefore the defendant is not the fault and he is
not liable for damages, since the defendant was found not guilty for the accusation of the
petitioner.

Name: JESSICA D. TUMARAO BSBA-HRM II Date submitted: June 1,2021

Subject : BUSINESS LAW(OBLIGATION & CONTRACT)
Instructor: Mr. Kenneth G. Lyster Hebra

SUMMARY OF OBLICON

Business law obligation and contract refers to what is legally required of each of the parties
involved in a contractual agreement. The law requires individuals who enter into legal
agreements to uphold their end of the contract. In business contracts and other types of contracts,
one party has the right to pursue legal action against the other if he or she breaches the
agreement.
Article 1156: An obligation is a juridical necessity to give, to do, or not to do.
An obligation “to do: includes all kinds of work or service; while an obligation “to give” is a
prestation which consists in the delivery of a movable or an immovable thing in order to create a
real right, or for the use of the recipient, or for the simple possession, or in order to return to its
owner. Civil obligation, natural obligation and moral obligation are the kinds of obligation. Civil
obligations (also called perfect obligations) must be distinguished. from natural obligations,
which are not subject to any legal necessity. an obligation arising out of considerations of right
and wrong. “he did it out of a feeling of moral obligation
An obligation is a course of action that someone is required to take, whether legal or moral.
Obligations are constraints; they limit freedom. People who are under obligations may choose to
freely act under obligations.

Kinds of real obligation are: Determinate or specific, and Indeterminate or Generic

Specific or determinate thing defined- a thing is determinate when it is particularly designated or
physically segregated from all others of the same class.
Generic or indeterminate thing defined- a thing is indeterminate when it is designated merely by
its class or genus without any particular designation or physical segregation from all others of the
same class.
The four Definite Elements of obligation

❖ An active subject – (creditor/oblige) who has the power to demand the prestation
 ❖ A passive subject – (debtor/obligor) who is bound to perform the prestation: has the
juridical necessity of adjusting his conduct to the demand of the creditor in accordance
with the efficient cause
❖ An object – the prestation is the conduct in which the debtor should act upon
❖ Juridical tie – Efficient cause (judicial cause/vinculum juris) is that of which binds or
connects the parties to the obligation

Article 1156. Sources of obligation

1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omission punished by law
5. Quasi-delicts

Sources of obligation

Law – when they are imposed by law. Ex: Obligation to pay taxes; oblige; obligation to support
itself,Ones family.

Contracts- when they arise from the stipulation of the parties. Ex:The obligation to repay a
loan or indebtedness by virtue of an agreement.

Quasi contracts – when they arise from lawful, voluntary and unilateral acts which are
enforceable to the end that no one shall be unjustly enriched or benefited at the expense of
another. Ex:The obligation to return money baud by mistake or which is not due.

Crimes or acts or omissions punished by law – when they arise from civil liability
which is the consequence of a criminal offense. Ex : the obligation of a thief to return the car
stolen by him; the duty of a killer to indemnify the heirs of his victim

Quasi-delict or torts-when they arise from damage cause to another through an act or
omission, there being fault or negligence, but no contractual relation exist between the parties
Law and Contract

Contract is an agreement between parties creating mutual obligations enforceable by law. The
basic elements required for the agreement to be legally enforceable contract are: mutual assent,
expressed by a valid offer and acceptance ;adequate consideration; capacity; and legality. In
some states, elements of consideration can be satisfied by a valid substitute. Possible remedies
for breach of contract include general damages, consequential damage, reliance damages and
specific performance.

Contract are promises that the law will enforce. Contract law is generally governed by the state
common law and while general overall contract law is common throughout the country. If a
promise is breached, the law provides remedies to the harmed party, often inform of monetary
damages, or in limited circumstances in the form of specific performance of the promise made.

Quasi-contract is certain lawful, voluntary and unilateral acts give rise to the juridical relation to
the end that no one shall be unjustly enriched himself or benefited at the expense of another.
Kinds of quasi-contract

1. Negotiorum Gestio-Takes place when a person voluntarily takes charge of another’s

abandoned property or business affairs without the consent or authority of the owner
2. Solutio Indebiti-something is received when there is no right to receive it, and it was
unduly delivered through mistake, the obligation to return it arises

Requisites to concur liability

1. The act or omission is due to the fault of the offended.

2. That it causes damage or injury.
3. The fault or negligence and the damage or injury was a direct relation of cause and effect.
4. No pre-existing relation between the offended and the offended parties.
Kinds of negligence

1. Culpa Aquiliana
2. Culpa contractual

Negligence is when a person fails to take the reasonable precautions that any prudent person
would take and their actions cause someone else harm, their actions could be considered
negligent.
Culpa Aquiliana is simply quasi-delict or civil damages due to negligence. Culpa criminal
punishes and corrects the criminal act, while culpa aquiliana by means of indemnification,
merely repairs the damage.

Prestation in an obligation
1. to give
2. to do
3. not to do

Exercise of diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is
normally expected to take before entering into an agreement or contract with another party or an
act with a certain standard of care. It can be a legal obligation, but the term will more commonly
apply to voluntary investigations. A common example of due diligence in various industries is
the process through which a potential acquirer evaluates a target company or its assets for an
acquisition.
There are required diligence and its divided into three degrees, namely: ordinary diligence,
extraordinary diligence, and slight diligence. It is the reverse of negligence. (q.v.) Under that
article is shown what degree of negligence, or want of diligence, will make a party to a contract
responsible to the other.
Obligations of a person obliged to give something

1. To preserve and take good care of the thing.(Art.1161)

2. To preserve the thing including its fruits (Art. 1164)
3. To deliver the accessions and accessories. (Art 1161)

When is obligation arise

Civil obligation - has legal basis; give a right of action to compel its performance. Legal
obligation - arises from laws.
Conventional obligation - arises from contracts with the force of the law.
From the viewpoint of the subject matter (object) of the obligation. Obligations are divided into:

• Real Obligations (to give)

1. To give a specific thing(set apart from a class)
2. To give a generic or indeterminate thing(one of a class)
• Personal Obligations (to do or not to do)
Remedies of a creditor when debtor fails to perform his obligation

A. If the object is determinate

1. To compel the debtor to make delivery or demand specific performance of obligation.
2. To demand payment of damages from the debtor when it is the only practical remedy.
3. Demand rescission or cancellation (in some cases.
B. If the object is indeterminate or generic
1. To ask performance or compliance of the obligation at the debtor’s expense.
2. To ask for payment of damages as provided in Art. 1170.

Creditor’s right in an obligation to perform something

1. To have the obligation performed (by himself or by another) at debtor’s expense.

2. To recover damages.
When a Thing may be ordered undone

1. If made poorly (Art 1167)(performance by another, and damages maybe demanded.)

2. If the obligation is a negative one(provided the undoing is possible)
What is damage and the kinds of damages
Damages, in law, money compensation for loss or injury caused by the wrongful act of another.
Recovery of damages is the objective of most civil litigation.
There are six different types of damages: compensatory, incidental, consequential, nominal,
liquidated, and (sometimes) punitive.
Kinds of delay or default

A. Mora solvendi or the delay on the part of the debtor to fulfill his obligation (to give or to
do);
1. Mora solvendi ex re (debtor’s default in real obligations)
2. Mora solvendi ex persona (debtor’s default in personal obligations)
B. Mora accipiendi or the delay on the part of the creditor to accept the performance of the
obligation;
C. Compensation morae or the delay of the delay of the obligors in reciprocal obligations
(like in sale),i.e., the delay of the obligor cancels the delay of the oblige, and vice versa.

Requisites of mora solvendi:

1. The obligation must be due, enforceable and already liquidated or determinate in

amount.
2. There must be non- performance.
3. There must be a demand, unless the demand is not required
(proof must be shown by the creditor, when demand is needed.)
Fraud is a deliberate act (or failure to act) with the intention of obtaining an unauthorized benefit,
either for oneself or for the institution, by using deception or false suggestions or suppression of
truth or other unethical means, which are believed and relied upon by others. Depriving another
person or the institution of a benefit to which he/she/it is entitled by using any of the means
described above also constitutes fraud.
Fraud distinguished from Negligence

1. In fraud, there is deliberate intention to cause damage or injury, while in negligence,

there is no such intention.
2. Waiver of the liability for future fraud is void, while such waiver may, in a certain sense,
be allowed in negligence.
3. Fraud must be clearly proved, while negligence is presumed from the violation of a
contractual obligation; and
4. Liability of fraud cannot be mitigated or reduced by the courts, while liability for
negligence may be reduced according to the circumstances.

Similarity between fraud and negligence

Both are voluntary, that is, they are committed with volition. The negligence shows bad faith;
or is so gross that it amounts to malice or wanton attitude on the part on the defendant, the rules
on fraud shall apply. No more distinction exists between the two, at least as to effects.
Loss defined
The thing is understood to be lost when:
1. when it perishes (as when a house in burnt to ashes) 2. when it goes out of commerce
(as when the object heretofore unprohibited becomes prohibited)
3. when it disappears in such a way that its existence is unknown (as when a particular
car has been missing for some time)
4. when it disappear in such a way that it cannot be recovered.

Rule on loss
The object may be lost without the fault of the debtor; with the fault of the debtor; and partly
without the fault of the debtor. Or,
Loss without debtor’s fault - obligation is extinguished.
Loss due to debtor’s fault - obligation is to pay damages.
Effect of partial loss

Partial loss may have its affect when:

1. it would amount to a loss important enough to be considered a complete loss which will
be determined by court.
2. It would be merely be considered a deterioration of the thing, in which case the rules on
deterioration should apply.
Elements of Contract
a. Essential elements – without them a contract cannot exist because these are indispensable
requirements Examples : consent, subject, cause or consideration.
b. Natural elements – these are found in certain contracts and presumed to exist, unless
excluded by stipulation of the parties.

c. Accidental elements - not considered agreed by the parties under stipulated.

A contract can be a simple oral or written agreement that does not have to be signed, witnessed,
or sealed. It can also be a formal agreement that is written, witnessed, signed, and sealed by the
parties involved. Traditionally, a contract was regarded as legally enforceable only if it was
sealed. Now that courts are recognizing implied contracts and other kinds of informal contracts,
the use of formal contracts under seal has diminished. When it comes to contracts, there are four
classifications, including:

• Contracts based on formation

• Contracts based on nature of consideration
• Contracts based on execution • Contracts based on validity
• Contracts Based on Formation
Contracts based on formation can be categorized into three groups: express contracts, implied
contracts, and quasi contracts. An express contract refers to a contract resulting from an
expression or conversation, while an implied contract occurs without an expression. While an
implied contract can be implied in fact or implied in law, a true implied contract arises from a
mutual agreement that has not been expressed in words. An implied-in-law contract is also
known as a quasi contract. It is not predicated on the consent of the parties involved and exists
regardless of consent.

• Contracts Based on the Nature of Consideration

There are two types of contracts based on the nature of consideration: unilateral and bilateral
contracts. In a unilateral contract, only one party makes a promise. Such a contract can be
established with just an acceptance of an offer. In a bilateral contract, participating parties
promise each other they will perform or refrain from performing an act. This type of contract is
also known as a two-sided contract.

• Contracts Based on execution

can either be executed contracts or executory contracts. An executed contract is a contract in
which performance is already completed. To a certain extent, the term is a misnomer since a
contract no longer exists once the parties involved have fulfilled their obligations. An executory
contract refers to a contract that obligates the participating parties to perform their obligations in
the future.

• Contracts based on validity

can come in five different forms, including valid contracts, void contracts, voidable contracts,
illegal contracts, and unenforceable contracts. A valid contract is one that is legally enforceable,
while a void contract is unenforceable and imposes no obligations on the parties involved. If a
contract is established under certain physical or mental pressure, it is called a voidable contract.
Such a contract may become a valid or void contract in the future. An illegal contract refers to a
contract with unlawful object, whereas an unenforceable contract is a contract that has not
fulfilled certain legal formalities.
Causes of vitiated Consent The following
of consent":
A. a mistake ( or error)
B. fraud (or deceit)
C. violence
D. intimidation
E. Undue influence
Mistake and fraud affect the intellect which is the faculty in the mind of man, the proper
object of which is the truth. They affect cognition which must be intelligent.
Violence, intimidation, and undue influence affect the Will, (which is the faculty in the
mind of man, the proper object of which is the good.) (They thus affect volition.) Volition must
be free.
Mistake and fraud result in defects of the intellect; the others result in defects of the will.
Nature of Voidable Contract
A voidable contract is binding and valid, unless annulled by a proper action in court. It is,
however, susceptible of ratification before annulment. Annulment may be had even if there be no
damage to the contracting parties.