CIVIL CODE OF THE PHILIPPINES product of the codification of private law in the Philippines the general law that governs family and property relations enacted in 1950 & remains in force to date despite some significant amendments among the most widely studied and commented upon laws in the Philippines due to its extensive coverage and impact 4 BOOKS: 1. Persons 2. Property, Ownership, and Its Modifications 3. Different Modes of Acquiring Ownership 4. Obligations and Contracts
ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do. (n) OBLIGATION L. “obligatio” (tying or binding) It is a tie or bond recognized by law by virtue of which one is bound in favor of another to render something. giving a thing
doing certain act not doing a certain act WHY 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 thereof, the economic value it represents.
NATURE OF OBLIGATIONS
1. CIVIL OBLIGATIONS An obligation, if not fulfilled when it becomes due and demandable, may be enforced in court through action; based on law. 2. NATURAL or MORAL OBLIGATIONS A special kind of obligation which cannot be enforced in court but which authorizes the retention of the voluntary payment or performance made by the debtor; based on equity and natural law.
ESSENTIAL REQUISITES OR ELEMENTS OF OBLIGATION 1. ACTIVE SUBJECT (CREDITOR or OBLIGEE) the person who is demanding the performance of the obligation; he who has a right 2. PASSIVE SUBJECT (DEBTOR or OBLIGOR)
the one bound to perform the prestation or to fulfill the obligation or duty; he who has a duty 3. OBJECT or PRESTATION (SUBJECT MATTER) the conduct required to be observed by the debtor; to give, to do, or not to do 4. JURIDICAL or LEGAL TIE (EFFICIENT CAUSE)
that which binds the parties to the obligation; source of the obligation
PRESTATIONS 1. TO GIVE delivery of a thing to the creditor (in sale, deposit, pledge, donation) 2. TO DO
covers all kinds of works or services (contract for professional services) 3. NOT TO DO consists of refraining from doing some acts (in following rules and regulations)
EXAMPLE: Under a building contract, Mr. Prilles bound himself to build a house for Mr. Bautista for P1,000,000.00.
PASSIVE SUBJECT
Mr. Prilles
ACTIVE SUBJECT
Mr. Bautista
PRESTATION
building of the house
JURIDICAL TIE
agreement or contract
FORMS OF OBLIGATION refers to the manner in which an obligation is manifested or incurred. It may be any of the following: oral in writing partly oral partly in writing OBLIGATION vs RIGHT vs WRONG
Obligation is the act or performance which the law will enforce. Right is the power of the person to demand from another. Wrong is an act or omission of one party in violation of legal right(s) of another. Injury is the wrongful violation of the legal rights of another. Damage is the result of injury (e.g. loss, hurt, harm).
KINDS OF OBLIGATION
1. REAL OBLIGATION obligation to give Example: Mr. Aureus (seller) binds himself to deliver a piano to Ms. Alayan (buyer).
2. PERSONAL OBLIGATION POSITIVE PERSONAL OBLIGATION obligation to do Example: Mr. Aureus binds himself to repair the piano of Ms. Alayan.
NEGATIVE PERSONAL OBLIGATION
obligation not to do (naturally includes “not to give”) Example: Ms. Alayan obliges Mr. Aureus not to tell anyone that she’s the one who broke the piano.
ARTICLE 1157. Obligations arises from: (1) law; (2) contracts; (3) quasi-contracts; (4) acts or omissions punished by law; and (5) quasi-delicts. (1089a) SOURCES OF OBLIGATIONS
1. LAW – imposed by law itself Example: obligation to pay taxes, obligation to support’s one family (Art. 291) 2. CONTRACTS – arise from the stipulation of the parties: meeting of the minds or formal agreement (Arts. 1305-1306) Example: obligation to repay a loan by virtue of an agreement
3. QUASI-CONTRACTS – arise from lawful, voluntary and unilateral acts and which are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another (Art. 2142) Example: obligation to return money paid by mistake or which is not due (Art. 2154) 4. CRIMES OR ACTS OR OMISSIONS PUNISHABLE BY LAW – arise from civil liability which is the consequence of a criminal offense (Art. 1161) Example: obligation of the thief to return the car stolen by him; the duty of the killer to indemnify the heirs of his victim 5. QUASI-DELICTS OR TORTS – arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties (Art. 2176) Example: obligation of the possessor of an animal to pay for the damage which it may have caused (Art. 2183)
CLASSIFICATION OF SOURCES
1. emanating from LAW 2. emanating from PRIVATE ACTS
a. arising from licit acts (contracts and quasi-delicts) b. arising from illicit acts (punishable or not punishable)
SOURCES OF OBLIGATIONS
1. LAW because obligations arising from quasi-contracts, delicts and quasi-delicts are really imposed by law 2. CONTRACTS
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. (1090) This article refers to legal obligation or legal obligations arising from law.
SPECIAL LAWS refer to all other laws not contained in the Civil Code. Corporation Code, Negotiable Instruments Law, Insurance Code, National Internal Revenue Code, Revised Penal Code, Labor Code, etc.
“believe something to be true”
To be demandable, they must be clearly set forth in the law, that is, the Civil Code or special laws.
EXAMPLE: A private school has no legal obligation to provide clothing allowance to its teachers because no law which imposes this obligation upon schools. But a person who wins money in gambling has the duty to return his winnings to the loser.
ARTICLE 2014 No action can be maintained by the winner for the collection of what he has won in a game of chance. But any loser in a game of chance may recover his loss from the winner, with legal interest from the time he paid the amount lost, and subsidiary from the operator or manager of the gambling house. (1799a)
ARTICLE 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. (1091a) CONTRACTUAL OBLIGATIONS are obligations arising from contracts or voluntary agreements. WHAT IS A CONTRACT?
ARTICLE 1305 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. (1254a)
REQUIREMENTS OF A VALID CONTRACT
All essential elements of a contract must be present. (Art. 1318) It is not contrary to law, morals, good customs, public order and public policy. (Art. 1306)
COMPLIANCE IN GOOD FAITH
means compliance or performance in accordance with the stipulations or terms of the contract or agreement.
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