Obligations And Contract- De Leon, Chapter 1 Summary

OBLICON CHAPTER 1 Law- any rule of action or any system of uniformity - not only the activities of men as rational beings but also movements or motions of all objects of creation (animate or inanimate) General divisions of law 1. Law promulgated and enforced by the state (strict legal sense) -state law 2. Law not promulgated and eforced by the state (non-legal sense)- divine law/ natural law/ moral law/ physical law Divine Law/ natural law/ moral law- law as a rule of action, apply to men as rational beings only Physical Law- operates on all things including men (without regard to men’s use of their will power and intelligence) Divine Law- religion and faith, concept of sin and salvation Souce- promulgated by God a. ) Old testament (ten commandments) b. ) Mohammedans- Quoran Sanction- rewards and punishment in present life and life to come Natural Law- divine inspiration in man of the sense of justice, fairness, and righteousness internal dictates of reason alone Binding Force- ever present, basic understanding of right and wrong (based on an understanding of the fundamental standard or criterion of good and evil. -man knows in his heart and his conscience, dictate of moral nature (good or bad or evil) - bad or evil if contrary to what we believe is just, fair or righteous -Basis of state law Divine law- direct revelation Natural law- impressed in manas the core of his higher self Moral Law- norms of good and right, collective sense of right and wrong of every community Detemination of what is right and wrong- mores (way of life) and obedience to them was demanded by the group. Sanction- no definite legal sanction - spontaneous social reaction (displeasure, contempt, or indignation) - for conformity= public pleasure, approval, or joy Binding Force- not absolute/ series of changing times, conditions or convictions - Influences or shapes state law Physical Law- uniformities of action and orders of sequence, physical phenomena that we sense and feel Order or regularity in nature- objects with no power to disobey, certain resukts follow certain causes Called law only by analogy State Law- promulgated and enforced by the state - positive law/ municipal law/ civil law/ imperative law Binding Force- enforce by the state with aid of its physical force Concerns of state law- does not concern itself to divine/ natural/ and moral law unless constitute violation of state’s commands

Concepts of State Law In general sense, all the laws taken together - the mass of obligatory rules established for the purpose of governing the relations of persons in society In specific sense- rule of conduct, just, obligatory, promulgated by legitimate authority, and of common observance and benefit - particular statute or legal rule Characteristics of Law 1.) Rule of conduct- what shall be done and what shall not be done 2.) Obligatory- imposing a duty to obey, involving a sanction, forces disobedience 3.) Promulgated by legitimate authority- (legislature) -enacted by Congress (name of legislative branch of our government) 4.) It is of common observance and benefit- by man to serve man -maintain harmony in society, make order and co-existence possible. Necessity and functions of law - its members could not live without it , needfor internal orders is as constant as the need for external defense - law secures justice, resolves social conflict, orders society, protects interests, controls social realations - sum of rules= legal system, citizen should have some undrerstanding of law and observe it for the common good. Sources of Law 1. ) Constitution- the written instrument- fundamental powers of the government are established, limited, and defined (these powers are distributed among several departments - fundamenal law/ supreme law or highest law - law which all other laws enacted by the legislature ust conform 2. ) Legislation- declaration of legal rules - anacted law or statute law - enacted by local government units 3. ) Administrative- by administrative officials under legislative authority - clarify or explain the law and carry into effects its general provisions. 4. ) Juridicial decisions/ Jurisprudence- Supreme Court - applying or interpreting the laws - doctrine of precedent/ stare decisis- decisions of a superior court on a point of law are binding on all subordinate courts -The supreme Court may reverse or modify any of its previous ruling -Their judgment is applied to all 5. ) Custom- habits and practices/ long and interrupted usage/ approved by society as binding rules of conduct - force of law when recognized and enforced by the state. - a custom must be proved as a fact according to the rules of evidence 6. ) Other sources- justice, equity, decisions of foreign tribunals, opiniona of textwriters, and religion. - resorted to by the courts in the absence of all other sources

Rule in case of doubt in interpretation or application of laws - no judge or court shall decline to render judgment by reason of the silence, obscurity or insufficiency of the laws (Art. 9, Civil Code) - in case of doubt in the interpretation or application of law, it is presumed that the lawmaing body intended right and justice to prevail - ultimate end of the law is justice Organs of Social Control Law may be viewed as a means of social control (control of social behavious that affects others - churches, corporations, professional organizations etc. Law compared with other means of social control 1. ) Administered by the only institutions in society authorized to act in behalf of the entire citizenry 2. ) Only Legal institutions- entire citizenry must comply Rules of social and economic org- govern limited numbers 3. ) People in organization can terminate their relationship and free themselve from rules. Citizens of state of a state cannot do this 4. ) Law- more varied complex than law of organization/ imprisonment, deportation, denial or Revocation of license, confiscation of property, mposition of civil liability, dissolution of org and denial of privilages Expulsion- most powerful technique for secure compliance on law of organization / loss of Job 5. ) Law- Procedural steps (hearing and a fair opportunity/ due process) Organs of social control- does not require procedure except when their rules provide therefor. Organization of courts - judicial power to decide actual cases and controversies is vested in one Supreme Court and in such lower courts as may be established by law 3 main divisions of power in our system of government 1. Regular courts a.) Court of Appeals b.) Regional Trial Courts- provinces and cities c.) Metropolitant Trial Courts- part of metropolitant area Muncipal Trial Courts- cities not forming part of Metropolitant Area and municipalities Municipal Circuit Courts- jurisdiction over two or more cities or municipalities Supreme Court/ Court of Appeals/ Regional Trial Courts- courts of general, superior jurisdication 2. Special Courts- anti-graft court (Sandiganbayan) - special taxt court (Court of Tax Appeals) 3. Quasi-judicial agencies- involve also the settlement or adjudication of controversies or disputes Classification Of Law 1. As to its purpose a.) Substantive Law- portion creating defining and regulating rights and duties b.) Adjective law (remedial law/ procedural law- prescribing the manner or procedure by which rights manner or procedure by which rights may be enforced or violations redressed. - governed by rules of court promulgated by the supreme court

2. As to its subject matter a.) Public Law- body of legal rules which regulates the rights and duties arising from the relationship of the state to the people b.) Private Law- relations of individuals with one another for purely private end Law on Obligations and Contracts “The law of obligations and contracts is the body of rules which deals with the nature and sources of obligations and the rights and duties arising from agreements and the particular contracts.” Civil Code of the Philippines - Law of Obli Con is found in Republic Act No. 386 (Civil Code of the Philippines) - based mainly on the Civil Code of Spain (took effect in the Philippines- Decemeber 7, 1889 - Republic Act No. 386- approved: June 18,1949, took effect: August 30, 1950 Book IV- Obligations and Contracts - Title I, Ast 1156- 1304 (obligations) - Title II, Articles 1305- 1422. (contracts) - Title III, Articles 1423- 1430 (natural oblifations) Conclusive presumption of knowledge of Law Ignorance of Law excuses no one from compliance therewith. (Art 3, Civil Code) Reasons: 1. If laws will not be binding until they are actually known, social life will be impossible. 2. It is almost impossible to prove the contrary when person claims to be ignorant of the law 3. Absurd to absolve those who do not know the lawand increase the obligations of those who know it 4. We carry norms of right and wrong 5. Administration of justive would be defeated if persons could successfuly plead ignorance of the law to escape legal cosequences of their acts TITLE I- OBLIGATIONS (Arts. 1156- 1394, Civil Code) ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do Obligation- latin word- obligatio (tying/ binding) - tie or bond recognized by law by virtue of which one is bound in favor of another to render something Civil Code Definition: - merely stresses the duty under the law of the debor or obligor Juridical Necessity - in case of noncompliance, the courts of justice may be called upon the aggrieved party to enforce its fulfillmentor the economic value that it represents - debtor must compy with his obligation whether he likesit or not; other wise, his failure will be visited with undesirable consequences Nature of Obligations under the Civil Code Civil Obligations- give creditor or obligee a right under the law to enforce their performance in courts of justice

Natural Obligations- distinguisher, do not grant a right of action to enforce their performance although in case of voluntary fulfillment by the debtor, it may not recover what has been delivered or rendered Essential requisites of an obligation 1. ) Passive Subject (debtor/ obligor)- bound to the fulfillment of the obligation; has the duty 2. ) Active Subject (creditor/ obligee)- entitled to demand; has the right 3. ) Object of prestation (subject matter of the obligation)- conduct required to be observed by debtor 4. ) Juridical or Legal Tie (efficient cause)- binds or connects the parties to the obligation Form of obligations- manner in which an obligation is manifested or incurred -oral/ writing/ partly oral/ partly in writing 1. ) Law does not require any form in obligations arising from contracts for their validity or binding force. 2. ) Obligations arising from other sources do not have any form at all Obligations- act or performance which the law will enforce Right- power which a person has under the law, to demand from another prestation Wrong- omission of one party in violation of the legal right or rights of another. Injury- wrongful violation Essential Elements of legal wrong/ injury are: a. ) legal right in favor of a person b. ) correlative legal obligation on the part of another , to respect or not to violate said right c. ) act or omission by the latter in violation of said right with resulting injury or damage to the former. Kinds of obligation according to subject matter 1. Real obligation (obligation to give)- subject matter is a thing which the obligor must deliver to the obligee 2. Personal obligation (obligation to do or not to do)- subject matter as an act to be done or not to be done. a. ) Positive personal obligation- to do b. ) Negative personal obligation- not to give ARTICLE 1157. OBLIGATIONS ARISE FROM: (1) Law;- when they are imposed by law itself (2) Contracts; -when they arise from the stiulation of the parties (Art 1306) (3) Quasi-contracts;- lawful, voluntary and unilateral acts which are enforceable to the end that no one shall be unjustly enriched or benefitted at the expense of another. (Art 2142) (4) Acts or omissions punished by law;- arise from civil liability, consequence of a criminal offense (Art. 1161) (5) Quasi-delicts- arise from damages caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between parties. (Art 2176) Sources of obligation Classified 1. ) emenating from law 2. ) emanating from private acts a. ) arising from licit acts (contracts and quasi-contracts) b. ) arising from illicit acts (punishable in the case of delicts or crimes, or not punishable, in the case of delicts or crimes, or not punishable in the case of quasi-delicts or torts.

Actually, there are only 2 sources (law and contracts) because obligations arising from quasi-contracts, delicts, and quasi-delicts are really imposed by law. 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 percepts of the law which establishes them; and as to wathas not been foreseen, by the provisions of this Book. (1090) Legal Obligations Article 1168- legal obligations arising from the law - not presumed because they are considered a burden upon the obligor. (Exception) Article 1158- special laws- all oother laws not contained in the Civil Code. ARTICLE 1159. Obligations arising froo cntracts have the force of law between the contracting parties and should be complied with in good faith (1091a) Contractual Obligations Contract- meeting of minds between two persons wherebyone binds himself, with respect to the other, to give something or to render some service. 1. ) Binding Force- force of law (same binding effect of obligations imposed by laws), must be valid, and cannot be valid if it is against the law. 2. ) Requirement of a valid contract- not contrary to law, morals, good customs, public order, and public policy/ a void contract does not exist and no obligations will arise/ it can be valid but cannot be enforced. 3. ) Breach of Contract- when a party fails or refuses to comply, without legal reason or justification Compliance in good faith- compliance or performance in accordance with stipulations or terms of the contract or agreement ARTICLE 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII of this Book. (n) Article 1160 treats of obligations arising from quasi-contracts or contracts implied in law Quasi-contractual obligations- 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 another. Kinds of quasi-contracts 1. Negotarium gestio- voluntary management of the property or affairs without the knowledge or consent of the latter. (Art 2144) 2. Solution indebiti- something is received when there is no right to demand it and it was unduly delivered through mistake. (Art. 2154) 3. Other examples of quasi-contracts- (Art 2164- 2175)- when recovery cannot be had on a true contract, recovery may be allowed on the basis of quasi-contract ARTICLE 1161. Civil oblogations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of article 2177, and of pertinent provisions of Chapter 2, Preliminary Title on Human Relations, and Title XVIII of this Book, regulationg damages (1092a)

Civil liability arising from crime or delicts 1. Every person criminally liable for an act or omission is also civilly liable for damages 2. Person not criminally responsible may stilll be liable civilly (failure to pay a contractual debt, damage to another property without intent or negligence. Scopes of civil liability 1. ) Restitution 2. ) Reparation for the damage caused 3. ) Indemnification for consequential damages 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 (1093a) Obligations arasing from quasi-delicts Quasi-delict- arise from damages caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between parties. (Art 2176- 2194) Crime distinguished from quasi-delict (1) Crime- criminal intent or criminal negligence Quasi-delict- negligence only (2) Crime- Purpose is punisment Quasi-delict- indemnification of the offended party (3) Crime- affects public interest Quasi-delict- concerns private interest (4) Crime- two liabilities: criminal and civiil Quasi-delict- civil liability only (5) Criminal liability- cannot be compromised or settled by the parties themselves Quasi-delict- compromised as any other civil liability (6) Crime- guilt of accused must be proved beyond reasonable doubt Quasi-delict- the fault or negligence of the defendant need only be provedd by preponderance of evidence.