Obligations and Contracts: Session 2: General Provisions Nature and Effect of Obligations

Obligations and
Contracts
Session 2: General Provisions; Nature and Effect of Obligations
Before anything else…
▪ QUIZ TIME: Quiz Number 1
▪Access the quiz through this URL:
https://forms.gle/cyr3uSYueoUuhHoS7
▪You have 30 minutes to answer the quiz.
▪Good luck!
Let’s see what
you’ve read so far!
1. Once your name is called, turn on
your camera and blindfold
yourself with your handkerchief.
2. You will be told accordingly if your
recitation is over. When this
happens, you can remove your
blindfold and turn your camera off.
3. Good luck!
What just happened?
▪ The Socratic method is a form of
cooperative argumentative dialogue
between individuals, based on asking
and answering questions to stimulate
critical thinking and to draw out ideas
and underlying presuppositions. (Wiki)
▪ Do not be intimidated by this
method. This is meant to develop
your critical thinking skills and enable
you to approach the law as
intellectuals. (University of Chicago Law School)
GENERAL PROVISIONS
Articles 1156-1162, New Civil Code
Art. 1156
▪An obligation is a juridical necessity
to give, to do or not to do.
Why “juridical necessity”?
▪Because in case of noncompliance, the
courts may be called upon by the
aggrieved party to enforce its
fulfillment, or, in default thereof, the
economic value that it represents.
▪Damages may also be prayed for.
Essential requisites
▪ Passive subject (debtor/obligor)
▪ Active subject (creditor/obligee)
▪ Object or prestation (the subject matter)
▪ Juridical or legal tie
Form of obligations
▪General rule: in any form
▪Except: contracts (Art. 1356)
▪ Contracts shall be obligatory in whatever form they may have been
entered into, provided all the essential requisites for their validity are present.
However, when the law requires that a contract be in some form in order
that it may be valid or enforceable, or that a contract be proved in a
certain way, that requirement is absolute and indispensable. In such cases,
the right of the parties stated in the following article cannot be exercised.
On rights and wrongs
▪A right is the power which a person
has under the law to demand a
prestation from another
▪A wrong (or cause of action, or
injury) is an act or omission in violation
of the right or rights of another
Elements of a legal wrong
▪A legal right in favor of a person
▪A legal obligation on the part of
another person
▪An act or omission by the latter in
violation of said right, resulting in
injury or damage to the former
Real vs. personal obligations
▪Real obligation: obligation to give
▪Personal obligation:
▪Positive: obligation to do
▪Negative: obligation not to do
Art. 1157
▪Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.
Art. 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.
Art. 1159
▪Obligations arising from contracts
have the force of law between the
contracting parties and should be
complied with in good faith.
Art. 1160
▪Obligations derived from quasi-
contracts shall be subject to the
provisions of Chapter 1, Title XVII, of
this Book.
What is a quasi-contract?
▪ A quasi-contract is a 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
at the expense or another. (see Art. 2142)
Kinds of quasi-contracts
▪ Negotiorum gestio (Art. 2144): voluntary
management of the property or affairs of another
without the knowledge or consent of the latter
▪ Solutio indebiti (Art. 2154): when something is
received when there is no right to demand it and it
was unduly delivered through mistake
▪ Others
That’s all for now.
See you next week!
Get some rest, class. Happy weekend!

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