The Law on Obligation Grounds for liability

And Contracts
1. Delay / Legal delay (default or mora)
Title 1 ► Failure to perform an obligation on time
OBLIGATION which failure constitute a breach of the
obligation.
General Provision
Kinds of delay
Obligation - a juridical necessity to give, to do or (1) Mora solvendi - delay on the part of debtor.
not to do. (2) Mora Accipiendi - delay on the part of creditor.
(3) Compensatio morae - no action on both parties.
Essential requisites
1. Passive subject - Dedtor or Obligor 2. Fraud (deceit or dolo)
2. Active subject - Creditor or Obligee ► There is a deliberate intention to cause
3. Object/Prestation - subject matter damage or injury.
4. Juridical/ legal tie - efficient cause Kinds of Fraud
(1) Dolo incidente - incendental fraud
Kinds of Obligation (2) Dolo causante - Causal fraud
1. Real Obligation - Obligation to give
2. Personnal Obligation - Obligation to or not to do 3. Negligence (Fault)
► There is no intention to cause damage or
Sources of Obligation injury
1. Law - imposed by law itself. Kinds of Negligence
2. Contracts - arise from stipulation of the parties. (1) Contractual negligence (culpa contractual)
3. Quasi-contacts - arise from lawful, voluntary - Negligence in contracts resulting in their
and unilateral acts which are breach.
enforceable. (2) Civil negigence (culpa aquiliana)
Kinds - Negligence which by itself is the source of
a. Negotiorium gestio an obligation between the parties.
b. Solutio indebti (3) Criminal negligence (culpa criminal)
- Negligence resulting in the commission of
4. Crimes/Delicts - arise from civil liabilty which is a crime.
the consequence of criminal
offense. 4. Contravention of the tenor
► Violation of the terms and condition
5. Quasi-delicts/Torts - arise from acts/omission
stipulated in the obligation without
which is the consequence of
justifiable excuse or reason.
fault or negligence.
Fortuitous event
Nature and Effect of Obligation
► Event which cannot be foreseen, or
which, though foreseen, is inevetable
Specific thing - particularly designated and
physically segregated from others.
Kinds of Fortuitous events
Generic thing - refers to class or genus which
(1) Ordinary - contacting parties could resonably
cannot be pointed out with
foresee
particularity.
(2) Extra-ordinary - contracting parties could not
have resonably foresee.
Duties of debtor to give a determinate thing
1. Preserve or take care of the thing
2. Deliver the fruits of the thing
3. Deliver the accession and accessories
4. Deliver the thing itself
5. Answer for damage in case of breach
 Different kinds of Obligation (f) Obligation with a penal clause
1. Primary classification Contains a accessory undertaking to
(a) Pure and Conditional pay a previously stipulated
Pure obligation indemnity in case of breach of the
► Not subject to any condition and no specific principal prestation, intended
date is mentioned for its fulfillment, and primarily to induce fulfillment.
immediately demandable. Penal clause - to assume greater liablity in case of
Conditional Obligation breach.
► Subject to condition - future and uncentain
event, and past but 2. Secondary classification
unnown. (a) Unilateral and Bilateral
Kinds of Condition (b) Real and Personal
(1) Suspensive - fulfillment of which give rise to (c) Determinate and generic
an obligation (d) Civil and natural
(2) Resolutory - fulfillment of which will (e) Legal, conventional, and penal
extinguish an obligation already
existing. Extinguishment of Obligation
(1) Payment or performance
(b) Obligation with a period Not only the delivery of money but also
Obligation whose fulfillment day the performance of an obligation.
certain ahs been fixed, shall be (2) Loss of the thing
demandable only when the day come It should be lost or destroyed without the
Period - future and certain event fault of the debtor, and before he has
incurred in delay.
(c) Alternative and Facultative (3) Condonation or remission of the debt
Alternative obligation The gratuitous abandonment by the
► Various prestation are due but the creditor of his right against the debtor.
performance of one of them is sufficient , A form of donation
choices determined belong to debtor. (4) Confusion or merger or the rights
Facultative obligation Meeting in one person of the characters
► Only one prestation has been agreed upon of creditor and debtor with respect to the
but the obligor may render another in same obligation.
substitution. (5) Compensation
Take place when two persons, in their
(d) Joint and Solidary own right, are creditors and debtors of
Joint obligation each other
► The whole obligation is to be paid or (6) Novation
fulfilled proportionately by the differemt Total or partial extinction of an
debtors and/ or is to be demanded obligation through the creation of a new
proportionately by the diffrent creditors. one which substitute it.
Solidary obligation
► Each one of the debtors is bound to render, Other causes of Extinguishment:
and/or each one of the creditor has a right 1. Death of the party
to demand from any of the debtors, entire 2. Mutual desistance or withdrawal
compliance with the prestation. 3. Arrival of resolutory period
4. Compromise
(e) Divisible and Indivisible 5. Impossiblity of fulfillment
Divisible obligation 6. Happening of fortuitous event
► The delivery or performance, is capable of
partial fulfillment.
Indivisible obligation
► The delivery or performance, is not
capable of partial fulfillment
 Title 2 a. Commutative
CONTRACTS b. Aleatory
8. Liability
General Provision a. Unilateral
b. Bilateral
Contracts - meeting of minds between two person 9. Status
whereby one binds himself, with a. Executory
respect to the other, to give something b. Executed
or to render some service. 10. Dependence to another contract
a. Preparatory
----- Stages of Contract ----- b. Accessory
1. Preparation or negotiation c. Principal
►Parties have not yet arrived at any 11. Dependence of part of contract to other parts
definite agreement. a. Indivisible
2. Perfection or Birth b. Divisible
►Parties have come to a definite
agreement or meeting of the minds. Limitation of Contact
3. Consummation or Termination 1. Must not be contrary to law
►Parties have performed their 2. Must not be contrary to morals
respective obligation. 3. Must not be contrary to good customs
4. Must not be contrary to public order
5. Must not be contrary to public policy
-----Classification-----
1. Name or designation Stipulation pour autrui
a. Nominate - has specific name in law Stipulation in a contract clearly and
b. Innominate - has no specific name in law deliberately conferring a favor upon a third
(1) Do ut des - I give that you may give person
(2) Do ut facias - I give that you may do
(3) Facto ut des - I do that you may give Essential requities of a Contract
(4) Facto ut facias - I do that you may do
2. Perfection -----Consent-----
a. Consensual - Consent, object, cause ► Conformity or concurrence of wills
b. Real - COC + delivery manifested by the meeting of the offer an the
c. Formal / Solemn - COC + forms acceptance upon the thing and the cause
3. Cause which are to constitute the contract.
a. Onerous
b. Remuneratory Offer - proposal made by one party to another,
c. Gratuitous indicating a willingness to enter into a
4. Form contract.
a. Informal - must be certain and seriously intended.
b. Formal or Solemn Acceptance - manifestation by the offeree of his
5. Obligatory force assent to all the terms of the offer.
a. Valid - meet all the legal requisites - must be clear and absolute
b. Rescissible - valid but there is damage to Counter-offer - it is when a acceptance is not clear
third party and absolute.
c. Voidable - valid until annulled unless there Agent - an extension of the personality of his
is a ratification principal
d. Unenforceable - cannot be sued or
enforced unless they are Cannot give consent to a contract
ratified 1. Unemancipated minors
e. Void or Ineistent - absolutely null and void, 2. Insane or demented persons
and have no effects at all 3. Deaf-mutes who do not know how to write
6. Person obliged
a. Unilateral
b. Bilateral
7. Risk
 Vices of Consent Reformation of Instrument
(1) Error or mistake
False notion of a thing or a fact material of Reformation - remedy allowed by law by means of
the contract. which a written instrument is
(2) Violence or force amended or rectified so as to
Requires the employment of physical force express of conform to the real
(3) Intimidation or threat or duress agreement or intention of the
Produce a resonable and well-grounded parties.
fear of an evil.
(4) Undue influence
A person takes improper advantages of his
power over the will of another, depriving
the latter of a resonable freedom of choice.
(5) Fraud or deceit
Through insidious words or machinations
of one of the contracting parties, the other
induced to enter into a contract which,
without them, he would not have agreed to.

-----Object-----
► Subject matter of the contract which are not
outside the commerse of men and should not
contrary to law, morals, good custom, public
order, and public policy.

-----Cause-----
► Essential reason or purpose which the
contracting parties have in view at the time of
entering into the contract.
► Destinction from object is only a matter of
viewpoint.

Motive - personnal or private reason which a party

Forms of Contracts

Form - refers to manner in which a contract is

Forms for validity of contract