Obligations and contracts

The course will cover

INTRODUCTION To The Law on Obligations
Philippine Legal System
CIVIL CODE OF THE
PHILIPPINES Law on Contracts

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Philippine legal system
Introduction

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 “

“Ignorance of the Law excuses no one”

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 What is the law?

▣ Product of social life, and is a creation of human nature.

▣ It regulates the relations of human beings

▣ Compilation of obligatory rules established for the purpose of

governing the relations of persons in society

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 Classification of Philippine Laws
Public
International Law – relations
between nations
Constitutional Law – relations
between the state and its people
Administrative Law – relations
between the government officials
and employees of the government
Criminal Law – Guarantees the
enforcing power of the state
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Private
Civil Law - relations of one
individual to another
Commercial Law - regulates
commercial transactions
Remedial Law – regulates the
method of enforcing the rights or
obtaining redress
 Laws, where do they come from?

Philippines

Executive Judiciary Legislature

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Legislature
Legislative branch is
authorized to make laws, alter,
and repeal them through the
power vested in the Philippine
Congress.
Laws, how made
Executive Judiciary
Acts of the President providing for rules Judicial Decisions shall form
of a general or permanent character in part of the law of the land
implementation or execution of
constitutional or statutory powers shall
be promulgated in executive orders
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Civil code of the Philippines
Republic Act no. 386

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 Civil Code : Important articles
▣ Article 2 – Laws shall take effect after fifteen days following
the completion of their publication.
▣ Article 3 – Ignorance of the law excuses no one
▣ Article 13 – Legal Periods ( 365 days, 30 days per month; 24
hours a day; night from sunset to sunrise)
▣ Article 21 – Persons who willfully causes loss or injury to
another in a manner that is contrary to law
▣ Article 22 – Unjust Enrichment at the expense of others

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 Civil Code : Important articles
▣ Article 37 – Juridical capacity is the fitness to be the subject
of legal relations; it is inherent in every natural person ;
Capacity to act is the power to do acts with legal effect
▣ Article 40 – Natural Persons
▣ Article 44 – Juridical Persons

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Law on Obligations
Article 1156 - 1304

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 Concept map

ACTS
LAW
TO GIVE
CONTRACTS
TO DO
PERSON QUASI-CONTRACTS

DELICTS
NOT TO DO
EVENT
QUASI DELICTS

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 “
General Provisions
Article 1156
An obligation is Jurical Necessity to give, to do,
or not to do.

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 SUBJECT OF A OBLIGATION

OBLIGEE (CREDITOR) OBLIGOR (DEBTOR)

▣ Person who can demand the ▣ The person required to fulfill

fulfillment of the obligation the obligation
▣ Can be natural or juridical ▣ Can be natural or juridical
person person

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 Prestation of an obligation

Kinds of Prestation Requisites of a prestation

1. To give 1. Must be possible
2. To do 2. Must be determinate or at
3. Not to do least determinable
3. Must have pecuniary value

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 Juridical Tie

It is the tie that binds or connects the parties of the obligation.

Established by:

1. Law
2. Bilateral acts
3. Unilateral Acts

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 “
Article 1157
Obligations arise from
1. Law
2. Contracts
3. Quasi-Contracts
4. Acts or omissions punishable by law
5. Quasi-delicts

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 “
Article 1158
Obligations derived from law are not presumed.
Only those expressly determined in this Code or
in special laws are demandable, and shall be
regulated by the precepts of the law which
establishes them; and as to what has not been
foreseen, by the provisions of this Book.

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 Law as a source of an obligation

When the law establishes the E.G

obligation and the act or condition Tax Laws mandates the duty
upon which it is based nothing to pay taxes
more than a factor for determining
the moment it becomes
demandable Duty to support children under
the Family Code

Duty of an Agent to its

principal

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 “
Article 1159
Obligations arising from contracts have the
force of law between the contracting parties and
should be complied with in good faith.

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 Contracts as a source of an obligation

What is a contract? Elements of a contract

A contract is a meeting of 1. Consent of the parties
minds between two persons to
2. Object of the contract
give or render something
3. Cause or consideration of the
Kinds of Contracts
obligation
1. Implied- exists based on the
actions involved
2. Expressed – Stipulation stated

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 “
Article 1160
Obligations derived from quasi-contracts shall
be subject to the provisions of Chapter 1, Title
XVII, of this Book
(Extra-Contractual obligations)

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 Quasi-Contracts as a source of obligation
Certain lawful, voluntary and
unilateral acts give rise to the
juridical relation of quasicontract
to the end that no one shall be
unjustly enriched or benefited at
the expense of another
Kinds of Quasi Contract
1. Negotiorum Gestio – A person
voluntarily takes charge of another’s
abandoned business or property
without consent
2. Solutio Indebiti – Something is
received when there is no right
demanding it.
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 “
Article 1161
Civil obligations arising from criminal offenses
shall be governed by the penal laws,

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A person acquitted of a criminal charge is not necessarily civilly
free because the quantum of proof required in criminal prosecution
is greater than that required for civil liability—in order to be
completely free from civil liability, a person’s acquittal must be
based on the fact that he did not commit the offense, and if the
acquittal is based merely on reasonable doubt, the accused may
still be held civilly liable since this does not mean that he did not
commit the act complained of. Nuguid vs. Nicdao, 502 SCRA 93,
G.R. No. 150785 September 15, 2006

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 “
Article 1162
Obligations derived from quasi-delicts shall be
governed by the provisions of Chapter 2, Title
XVII of this Book, and by special laws
(negligence)

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 Quasi-Delicts as a source of an obligation
It is a fault or act of
negligence which causes
damage to another there
being no pre-existing
contractual relations
between the parties
Requisites Definition of negligence
1. There is damage
suffered by the Negligence is the
defendant omission of diligence
which is required by
2. Fault or Negligence of
the Defendant the circumstances.
3. Connection of Cause
and effect between the
fault or negligence
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 Quasi-Delicts as a source of an obligation

Delicts vs Quasi-Delicts
Delicts affect the public interest Quasi Delicts affect the public
concern
Penal Code provides for the Civil code provides repairs the
punishment damage through indemnity

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 Quasi-Delicts as a source of an obligation

Kinds of Quasi-Delicts Culpa Aquilana Culpa Contractual

Characteristics Characteristics
1. Culpa Aquilana ▣ Source of obligation ▣ Source of obligation
2. Culpa ▣ Independent
Contractual ▣ Accident in the performance
▣ No Legal Tie of a contract
▣ Negligence should be ▣ Has a Legal tie
established ▣ There is a proof of existence
of a contract
e.g. Parking Violations
e.g Contract of Carriage

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 Safeguard security agency v. lauro tangco et. Al
g.r no. 165732 December 14, 2006

Facts of the Case:

Evangeline Tangco (Evangeline) went to Ecology Bank, Katipunan Branch, Quezon
City, to renew her time deposit per advise of the bank's cashier as she would sign a
specimen card. Evangeline, a duly licensed firearm holder with corresponding permit to
carry the same outside her residence, approached security guard Pajarillo, who was
stationed outside the bank, and pulled out her firearm from her bag to deposit the same
for safekeeping. Suddenly, Pajarillo shot Evangeline with his service shotgun hitting her
in the abdomen instantly causing her death.

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