ACCTEACH DEMO TEACHING

Hello, to my dearest Law enthusiast! I will be your teacher for today, Mr. John Patrick L.
Anyayahan and I will be teaching you the subject of Obligations and Contract
specifically its introduction and its general provisions. But before we proceed, let’s have
our opening prayer first. Let’s bow our heads and feel the presence of our Lord as we
pray in the name of the Father and of the Son and of the Holy Spirit. “Angelite Prayer”
Also let me check first the attendance for today. Provided below is the link for our
attendance sheet. In case you have any inquiries and concern let me know before we
proceed so that our discussion will be smooth sailing as we go along. I also encourage
you to listen attentively and keep in touch because this will be an exciting journey on
unlocking the general provisions of the obligations and contract.
So, as I said, our topic for today is all about the general provisions of an obligation. This
is the introductory lesson of our subject obligations and contract and here are the
learning objectives for today.
To define and know what an obligation and its nature, essential requisites, forms, and
kinds according to subject matter
To determine the nature and effect of an obligation
To illustrate different examples regarding the general provisions of an obligation as to its
nature, forms, and kinds.
So now if you don’t have any question let’s proceed to the discussion proper.
First, let’s define what is an obligation?
Obligation is a juridical necessity to give to do or not to do and it is based on article
1156 of the Civil Code of the Philippines. What does it mean when we say juridical
necessity? These are the rights and duties arising from obligation that are legally
demandable, and the court of justice may be called upon through proper action to order
the performance. Also, it comes from the Latin word obligation which means there is a
tie or bond between the parties involve. Lastly, it is defined as passive aspect meaning
the law merely stresses the duty of the debtor when it speaks of obligation as a juridical
necessity. Later we’ll know the different requisites of an obligation as we move forward.
So far do you have any questions? You may raise your hand or type the question in the
chat box? If there is none we may proceed.
The nature of obligation is divided into two, the civil and natural obligations.
A civil obligation as defined in this article is based on the positive law. Meaning it is
enforceable by a court action. On the other hand, natural obligation is based on natural
law hence it is the other way around and it is not enforceable by a court action. Example
of civil obligations are paying money, transferring property, performing work, rendering
services. As for the natural obligations it includes exercising gratitude, charity, and other
moral duties.
Now, let’s move on to the requisites of an obligation. How would say that an
obligation exists? Here are its requisites.
First it must have an active subject or what we call the creditor or oblige. This is the
person who is entitled to demand the fulfillment of an obligation. He who has the right
always remember that.
Next is the passive subject or what we know as debtor or obligor. This is the person
who is bound to the fulfillment of the obligation. He who has a duty.
Third requisite is the object or the prestation – this is the subject matter of an obligation
and it consist of giving, doing, or not doing as you recall the previous article which
states an obligation is a juridical necessity to give, to do or not to do.
Lastly of course the juridical or legal tie – this is the efficient cause which binds or
connects the parties to the obligation.
To have a clear illustration of these requisites let me give you an example. Under a
building contract, X bound himself to build a house for Y for 2,000,000 pesos. Here X is
the passive subject, Y is the active subject, the building is the object or the prestation
and the agreement or the contract is the source of the obligation that binds the parties.
This is the general rule. But what if X had already constructed the house and it was the
agreement that Y would pay X after the construction. X now then becomes the active
subject and Y becomes the passive subject. So, it’s all about he who has the duty, or he
who has the right.
So, are there any questions before we proceed? So, if none, let’s go to the Sources of
an Obligation. According to the Article 1157, there are 5 sources of an obligation which
includes the law, contracts, quasi contracts, acts, or omissions punished by law and
quasi delicts. Let’s dig deeper about these 5 sources, their meaning and how they are
classified.
The first one is the Law.in its widest and most comprehensive sense, the term law
means any rules of action or any system of uniformity. It is the first source of an
obligation as it determines not only the activities of men as rational beings but also the
movements or motions of all objects of creation. As a rule, obligations derived from law
are not presumed because they are considered a burden upon the obligor. For
example, a private school has no legal obligation to provide clothing allowance to its
teachers because there is no law which imposes this obligation upon school. Always
remember, to be demandable, they must clearly set forth in the law such as the Civil
Code. You always encounter this word the Civil Code, here in the Philippines just a
trivia, this is the product of codification of private law that governs family and property
relations.
So, let’s proceed to the next sources of obligation which is the contracts. What is
a contract besides from the title of our subject obligations and contract? A contract is a
meeting of minds between two persons whereby one binds himself, with respect to the
other, to give something or to render some service. Without its technicality in its
definition, just relate it to our daily encounters, we usually saw or heard different kinds of
contract, and do you even wonder how this contract becomes valid? Yeah, because
anyone can make a contract, but the question is, is it valid and enforceable to carry out
an obligation.
We can say that a contract is valid if it has a binding force, so what is this binding force?
Of course, the law itself. This does not mean that the contract is superior to the law. As
a source of enforceable obligation, contract must be valid, and it cannot be valid if it is
against the law.
What are requirements of a valid contract? A contract is valid assuming all the essential
elements are present if it is not contrary to law, morals, good customs, public order, and
public policy. If these following requirements were not met, in the eyes of law, it is void
and a void contract does not exist.
Lastly, compliance in good faith is vital to the compliance and performance in
accordance with the stipulations or terms of the contract and non-compliance would
constitute unjust enrichment and a breach of a contract.
To further understand contract as source of an obligation, let me give you an example.
If John agrees to sell his house to Patrick and Patrick agrees to buy the house of John,
voluntarily and willingly, then they are bound by the terms of their contract and neither
party may upon his own will and without any justifiable reason withdraw from the
contract or escape from his obligations thereunder.
That which is agreed upon in the contract is the law between S and B and must be
complied with in good faith.
So, what if let’s say for example there is a contract between A and B that B will kill C in
consideration of 10,000 pesos. The contract is automatically void because it is contrary
to the law and as I said a while ago no one is above the law even it is a contract.
So far are you still catching up? Don’t hesitate to raise some questions or clarifications
in the chat box. So, if there are no questions, we may proceed.
The third source of an obligation is what we call the quasi contracts? So, what are
these?
According to the article 1160, 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 other.
Actually, there are only two sources of an obligation which is the law and contracts
because obligations arising from quasi contracts, delicts, and quasi delicts are really
imposed by law. But the civil code wants to give emphasize to these certain sources to
make it clear to the people its differences.
Also, just to avoid confusion, quasi contract is not properly a contract at all. In contract
there is a meeting of the minds or consent. Here in quasi contracts, there is no consent
but the same is supplied by the fiction of law. In other words, the law considers the
parties as having entered into a contract although they have not actually done so.
To further understand this, let me explain to you the two kinds of quasi contracts and I’ll
provide some examples. Am I getting myself clear? Okay let’s proceed.
The principal kinds of quasi contracts are negotiorum gestio and solution indebti. So
now let’s have negotiorum gestio. It is the voluntary management of the property or
affairs of another without the knowledge or consent of the latter. This clearly distinguish
quasi contracts to the contract as there is no consent but the same is supplied by the
fiction of law. Let me give you an example.
John went to Baguio with his family without leaving somebody to look after his house in
Pampanga. While in Baguio, a big fire broke out near the house of John. Through the
effort of Patrick, a neighbor, the house of John was saved from being burned. Patrick
however incurred expenses. In this case, John has the obligation to reimburse Patrick
for said expenses although there is no consent, but it embodies the principle of quasi
contract. Understand class? So now let’s proceed to the Solution indebti. It is 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.
It has the following requisites to meet:
There is no right to receive the thing delivered
The thing was delivered through mistake.
Let me give you an example.
John owes Patrick P1,000. If John paid Carl believing that Carl was authorized to
receive payment for Patrick, the obligation to return on the part of Carl arises. If John
paid Patrick 2,000 by mistake, Patrick must return the excess of 1,000.
So, are we clear with the examples? If not let me give you another and this time it is
another example of quasi contract which varies on some situations.
John seller of goat’s milk leaves milk at the house of Patrick each morning. Patrick uses
the milk and places the empty bottles on the porch. After one week, John asks payment
for the milk delivered.
Here, an implied contract is understood to have entered by the very acts of John and
Patrick, creating an obligation on the part of Patrick to pay the reasonable value of the
milk, otherwise Patrick would be unjustly benefited at the expense of John.
So, are there any questions for quasi delicts? If none let me give you 5 minutes to
refresh and afterwards let’s proceed to the fourth and final sources of obligation. (5
seconds)
Alright 5 minutes is done, let’s proceed to the Acts or omissions punished by law.
According to the Article 1161, Civil obligations arising from criminal offenses shall be
governed by the penal laws.
This article clearly deals with civil liability for damages arising from crimes or delicts.
The rule has been established that every person criminally liable for an act or omission
is also civilly liable for damages. In crimes however, which cause no material damage,
there is no civil liability to be enforced. But a person not criminally responsible may still
be liable civilly, such as failure to pay a contractual debt, causing damage to another’s
property without malicious or criminal intent or negligence.
So, what’s the scope of civil liability we are talking about in this article. The extent of the
civil liability for damages arising from crimes is governed by the Revised Penal Code
and the Civil Code. This civil liability includes Restitution or the restoration of something
lost or stolen to its proper owner, Reparation for the damage caused and
Indemnification for consequential damages.
To give you a clear view about civil obligations arising from criminal offenses let me give
you an example:
X stole the car of Y. If X is convicted, the court will order X to return the car or to pay its
value if it was lost or damaged; then pay for any damages caused to the car and lastly
to pay such other damages suffered by Y as a consequence of the crime.
That would be all for the civil obligations arising from criminal offenses and now let’s
move on the final sources of the obligation which is the quasi delicts.
A quasi delict according to the article 1162 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 preexisting
contractual relation between the parties.
On the previous sources just like in the civil obligations arising from criminal offenses,
the damage done due to a crime, and it is accompanied by a certain ground for civil
liability which is restitution, reparation, and indemnification. Here in quasi delicts, there
is no preexisting contractual relation just like the quasi contracts and the obligation to
pay for the damage done is merely cause by fault and negligence.
So, what are the requisites when someone constitute a quasi-delict?
Before a person can be held liable for quasi-delict, the following requisites must be
present:
There must be an act or omission
There must be fault or negligence
There must be damaged caused
There must be a direct relation or connection of cause and effect between the act or
omission and the damage
There is no pre-existing contractual relation between the parties.
Let’s say for example:
While playing softball with his friends, X broke the window glass of Y, his neighbor. The
accident would not have happened had they played a little farther from the house of Y.
In this case, X is under obligation to pay the damage caused to Y by his act although
there is no preexisting contractual relation between them because he is guilty of fault or
negligence.
Always remember, that to be liable, there must be an act or omission, fault and
negligence, damage cause, direct relation and there is no preexisting contractual
relation between the parties.
So that would be all for our first lesson in the obligations and contract. So, what are
again the five sources of an obligation? The law, the contract, the quasi contract, the
delicts, and the quasi delicts. Are there any questions, clarification, or violent reactions?
I’ll give you the floor to raise them before we proceed to our activity.
So, if there are no other questions let’s proceed to our activity. The instruction is very
easy, I’ll give you a word or statement, and you’ll just distinguish if it is according to law,
contracts, quasi contracts, delicts, and quasi delicts.
Obligation to support one’s family – LAW
Murder – DELICTS
Obligation to pay taxes – LAW
Agreement to pay a loan due to indebtedness – CONTRACT
Obligation to return money paid by mistake – QUASI CONTRACT
Obligation to pay the damages caused by negligence – QUASI DELICTS
Obligation to return the car stolen by thief – DELICTS
Agreement to buy a house agreed in good faith – CONTRACTS
Reimbursement of expenses to a person who saved your house due to fortuitous event.
– QUASI CONTRACT
Obligation to comply with law – LAW
So, I’ll give you 30 seconds to finalize your answer, so now let’s check your paper.

Again, that would be all for our first lesson in the Obligations and Contract and for your
assignment please answer all the study guides in our textbook pages 32-33 and get
ready for our next lesson which is the nature and effect of obligations. Thank you and
have a good day.