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    AUF School of Law Obligations and Contract

    2 nd Semester/2009-2010 jmvdg 1

    Civil obligation vs Natural obligation

    Gives to the obligeeor creditor the right of enforcing it against the obligoror debtor in a court of justice.(right of action)

    effect Cannot beenforced by court action

    Positive law source Equity and naturallaw.

    Primary Secondary

    pure and conditionalwith a periodalternative

    and facultative joint and solidarydivisible and indivisiblewith a penal clause

    legal, conventional, penal

    real and personaldeterminate and

    genericunilateral and bilateralindividual and

    collectiveaccessory and

    principal

    As to juridical quality -Natural-civil-mixed

    As to parties -Unilateral and bilateral-individual andcollective

    As to object -Determinate andgeneric-simple and multiple-positive and negative-real and personal-possible andimpossible-divisible and divisible-principal and accessory

    BOOK IV OBLIGATIONS and CONTRACTS

    TITLE I OBLIGATIONS

    Art. 1156. Obligation is a juridical necessity to give, to do or not to do.

    Juridical necessity to comply with a prestation-Sanchez Roman

    Legal relation established between one person andanother, whereby the latter is bound to thefulfillment of a prestation which the former maydemand from him. - Manresa

    interest be specified in writing. (Art. 2134, CC)---Donation of immovable property be madein a public document and the acceptancebe made in the same document or separate

    public document (Art. 749, CC)---contribution of immovable property orreal rights to common fund (partnership)must be in a public instrument withattached inventory signed by the parties. (Art. 1771, 1773, CC)---Chattel Mortgage, personal propertymust be recorded in the Chattel MortgageRegister (Art. 2140, CC)---sale or transfer of large cattle, suchtransfer or sale must be registered. (Sec. 22, Act No. 1147, Art. 1581, CC)

    Classifications of obligation

    Requisites of Obligation juridical or legal tie

    -bilateral-unilateral

    active subjectpassive subjectfact, prestation or service

    **As a general rule, the form of the obligation is not an essential element/requisite. Except (the non-compliance of the following formalities would havethe effect of rendering the contract agreement voidor inexistent):

    ---donation of personal property whose

    value exceeds P5,000.00, contract inwriting. (Art. 748, CC)---sale of a piece of land or any interest therein through an agent, authority of suchagent be in writing. (Art. 1874, CC)---Interests in a contract of simple loan ormutual , agreement with respect to such bein writing. (Art. 1956, CC)---anticheresis, principal amount and

    classifications according to Manresa

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    AUF School of Law Obligations and Contract

    2 nd Semester/2009-2010 jmvdg 2

    As to perfection and extinguishment

    -Pure-conditional-with term or period

    faith. (1091a)

    Contract -meeting of minds between two personswhereby one binds himself, with respect to theother, to give something or to render some service.

    Consensual contracts - contracts perfected byArt. 1157. Obligations arise from: law contracts quasi contracts acts or omissions punished by law; and quasi-delicts

    **The addition of lege has been criticized astheoretically erroneous.

    **The enumeration is exclusive.

    Art. 1158. Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws aredemandable, and shall be regulated by theprecepts of the law which establishes them;and as to what has not been foreseen, by theprovisions of this Book. (1090)

    **obligations derived from law cannot bepresumed. (unlike other obligations)

    **requisites to determine whether an obligationarises from law or from other sources.

    law that establishes or recognizes the obligationact or condition upon which the obligation is

    based.

    ** when the law merely recognizes the existence of an obligation generated by an act which mayconstitute a contract, quasi-contract, criminaloffense, or quasi-delict and its only purposeistoregulatesuchobligation, then the ACT itself is thesource of the obligation and NOT the law.

    Pelayo vs Llauron-obligation of support between

    spouses. Art. 2014 obligation of the winner in a gambling toreturn the money to the one who lost.

    Art. 1159. Obligations arising from contractshave the force of law between the contracting parties and should be complied with in good

    mere consent, and from that moment the partiesare bound not only to the fulfillment of what hasbeen expressly stipulated but also to all of theconsequences which according to their nature maybe in keeping with good faith, usage and law.Real Contracts- perfected upon the delivery of

    the obligation.

    Obligation arises from the moment of perfection of the contract. Reciprocal obligation - parties are mutually

    obliged to do or to give something.Unilateral obligation - only one party (obligor) is

    obliged to do or to give something.

    **Obligations arising from contract are governedprimarily by the agreement of the contractingparties.

    Compliance in good faith - performance inaccordance with the stipulations, clauses, termsand conditions of the contract.

    Unjust enrichment

    **In default of agreement, the provisions of theCivil Code regulating such obligations areapplicable.

    General Rule: The contract is the law between thecontracting parties.

    Ex: Macasaet vs COA

    exception to general rule: Agcaoili vs GSIS

    Art. 1160. Obligations derived from quasi-

    contracts shall be subject to the provisions of

    Chapter 1, Title XVII, of this Book. (n)

    Quasi-contracts- juridical relations arising fromlawful, voluntary, and unilateral acts, by virtuewhich the parties become bound to each other, based on the principle that no one shall be unjustly