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OBLIGATIONS & CONTRACTS | Prof. Labitag, A.Y. 2008-2009 Page 2 of 116 Karichi E. Santos | UP Law B2012 OBLIGATIONSANDCONTRACTS ExpandedCourseOutlineProfessor E.A.Labita OBLIGATIONS & CONTRACTS | Prof. Labitag, A.Y. 2008-2009 Page 3 of 116 Karichi E. Santos | UP Law B2012 University of the PhilippinesCollege of Law OBLIGATIONS AND CONTRACTS Professor E. A. Labitag 2 nd Semester, AY 2008-2009 Title I. OBLIGATIONS Chapter I. General Provisions CONCEPT OF OBLIGATIONS Definition Art 1156 Obligation is a juridical necessity to give, to do or not to do.OBLIGATORY RELATION IN ITS TOTALITY: The juridical relation, created by virtue of certain facts,between two or more persons, whereby the creditor or obligee , may demand of the debtor or obligor ,a definite prestation.onPASSIVE SIDE: Where there is a right or power to demand, there is a correlative obligation or animposition upon a person of a definite conduct. Criticism of definition: It is one sided, reflects only the debtor’s side of the agreement – SanchezRoman Elements of Obligation 1. Active subject – power to demand the prestation (obligee/creditor)Personal 2. Passive subject – bound to perform the prestation (obligor/debtor)elements Temporary indefiniteness of a subject e.g. negotiable instrument payable to bearer or a promiseof a prize or a reward for anyone performing a certain act 1. Prestation or Object – not a thing but a particular conduct of the debtor, but always a prestation KINDS OF PRESTATION a. TO GIVE – consists in the delivery of a movable or an immovable thing, in order to create areal right or for the use of the recipient or for its simple possession or in order to return to itsowner b. TO DO – all kinds of work or services, whether mental or physicalc.NOT TO DO – consists in abstaining from some act, includes “not to give,” both beingnegative obligations REQUISITES OF PRESTATION a.Physically and juridically possibleb.Determinate or at least determinable according to pre-established elements or criteriac.Possible equivalent in money Pecuniary interest need not be for one of the parties, it maybe for the benefit of 3 rd person/sdistinct from the parties to the contract Prestation need not be of economic character to have pecuniary value, if it does not have valuethe law attributes to it economic value e.g. moral and nominal damages 1. Efficient cause or juridical tie or vinculum juris – relation between obligor and oblige which isestablished:–By law (e.g. relation of husband and wife giving rise to the obligation to support) OBLIGATIONS & CONTRACTS | Prof. Labitag, A.Y. 2008-2009 Page 4 of 116 Karichi E. Santos | UP Law B2012 –By bilateral acts (e.g. contracts giving rise to the obligations stipulated therein)–By unilateral acts (e.g. crimes and quasi-delicts) 1. Form in which the obligation is manifested – cannot be considered essential Distinction between Natural and Civil Obligation NATURALCIVIL As toenforceabilityNot by court actions, but bygood conscience of debtorCourt action or the coercivepower of public authorityAs to basisEquity and natural justicePositive law SOURCES OF OBLIGATIONS A. LAW [Ex-Lege]Art 1158 Obligations derived from law are NOT PRESUMED . Only those expressly determined in thisCode or in special laws are demandable, and shall be regulated by the precepts of the law whichestablishes them; and as to what has not been foreseen , by the provisions of this book.–Governed by the law itself – Agreement of the parties is not necessary e.g. tax collection, Art 448 and Art 488–Not presumed, only those expressly provided are enforceable A. CONTRACTS [Ex-Contractu, Culpa Contractual]Art 1159 Obligations arising from contracts have the force of law between the contracting partiesand should be complied with in good faith . – Expresses principle of autonomy of will , presupposes that contract is valid andenforceable – PRE-CONTRACTUAL OBLIGATION : Damages can be recovered when contract is notperfected if: ○ Offers is clear and definite , leading offeree in good faith to incur expenses in expectation of entering into a contract ○ Withdrawal of the offer must be without any illegitimate cause. If offeror: Guilty of fault or negligence , liability would be based on Art 2176 No fault or negligence , withdrawal was in abuse of right, liability would be based on Art19 e.g. breach of promise to marryArt 1305 A contract is a meeting of minds between two persons whereby one binds himself, withrespect to the other, to give something or to render some service. A. QUASI-CONTRACTS or DELICTS [Quasi Ex-Contractu]Art 1160 Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII.Art 2142 Certain lawful, voluntary and unilateral acts give rise to the juridical relation of quasi-contract to the end that no one shall be unjustly enriched or benefited at the expense of another.–Juridical relation which arises from certain acts that are: LAWFUL (against crime), VOLUNTARY (against quasi-delict – based on negligence or mere lack of foresight) UNILATERAL (against contract in which there are two parties) – E.g. Art 2144Art 2150Art 2154Art 2164Art 2167Art 2168Art 2174Art 2175
