MODULE 2: INTRODUCTION TO OBLIGATIONS

1. Positive Personal Obligation Art. 1157. Sources of obligation:

CIVIL OBLIGATION To do something.
2. Negative Personal Obligation 1. Law; ex lege.
Art. 1156. Obligation is a juridical necessity Prohibited to do obligations that are 2. Contracts; ex contractu.
to give, to do, or not to do. negative in nature. 3. Quasi-contracts; quasi ex
Ex. You are prohibited to practice contractu.
Debtor; passive subject; obligor jaywalking as it is against the law. 4. Acts or omissions punished by
- Doing or not doing something. law; crimes; delicts; ex delicto.
- Required to perform something. Judicial or Legal Tie; efficient cause;
5. Quasi-delicts; quasi ex delicto.
Creditor; active subject; oblige vinculum juris
- Requires the doing or not doing - Connects the parties to the obligation. Quasi – No label; appears to be a contract but
- Demands to perform something. not because of the absence of elements.
Object; prestation; subject matter SOURCES OF OBLIGATION
- The kind of obligation Quasi-contracts - manifested as contracts
Significance of knowing the source of but are not contracts.
▪ Obligation to give – Real obligation
obligation Quasi-delicts – looks like crimes but are not
o Established the rights to Cause of action – An act by which a
crimes.
possess/deliver. party violates a right of another. The reason
o why a complainant goes to court.
Main sources of obligation
1. Specific Real Obligation – Essential elements of course of action:
Law - law presumes that a person originally
determinate; definite possesses good faith.
Designated; only one thing is being 1. The legal right of plaintiff.
Plaintiff – Creditor; has the right - presumed innocent until proven guilty,
recorded.
Particularly designated and to an obligation; the person who always start with the perception that
segregated, by the description, you will brings a legal action. when something is that there must be
be able to identify the object. 2. The correlative obligation of the a reason to it.
2. Generic – indeterminate; defendant.
indefinite Defendant – a person who is Contract – meeting of the minds between
Replaceable; it can be performed by accused of not having been two persons whereby one binds
anyone, required to deliver one same able to fulfill the obligation. himself, with respect to the other to
thing of the same class.
3. Act of Omission. give something or to render some
Many things of a same class. service (Article 1305).
Right - is a claim or title to an interest in A written or spoken agreement
▪ Obligation to do – Personal anything enforceable by law. between two parties; formal
obligation *For every right enjoyed by any person, there expression by the parties agreed
o Performs all kinds of works is a corresponding obligation in the part of upon with respect.
another person to respect such right.
Exercise of Rights STATUTES OF FRAUD - Where the meeting of the minds
begins to arrive at a definite
Good Faith – a general presumption that - Contracts that should be put to writing. agreement as to the essential
the parties to a contract will deal with - List of contracts that need to be written. elements such as subject matter,
each other honestly, fairly, and in good - It applies to rentals, when a contract cause, terms and conditions of
faith, to not destroy the right of the other includes a 1-year rental, then the contract.
party or parties to receive the benefits of person should not fear getting kicked 3. Consumption – consummation; death
the contract. out every month. - When the parties “fulfill or perform the
The beauty of law is that good faith is terms agreed upon in the contract”.
presumed; everything is presumed good. Compliance in Good Faith
One act always acts with the best ▪ Offer - to the counteroffer
interest of people. - Performance in accordance with the
stipulations or terms of the contract or ▪ Counteroffer - to the counteroffer
LEGAL OBLIGATIONS agreement.
▪ Counteroffer - to the counteroffer - to the
Art. 1158. Validity and Enforceability of Contracts counteroffer

- Obligations in law are not presumed There’s no contract unless the ff occurs: *CONTRACTS makes a reciprocal obligation –
unless there’s a basis for it. where events happen vice versa.
- Crimes should have a basis or source. 1. Consent – the agreement of two
- If there is no law, there is no right. parties.
2. Object – the subject matter of the
Art. 1159. Obligations arising from contracts have contract.
the force of law between the contracting parties 3. Cause – the reason of the obligation.
and should be complied with in good faith.
In addition to the mentioned, it should not
- When you invoke a right, make sure there be in contrary to law, morals, good customs,
is a legal basis. public order and public policy.
- there should be a basis, or else will not be
invoked. 3 STAGES OF CONTRACTS

CONTRACTUAL OBLIGATIONS 1. Preparation – negotiation; conception;

generation
Art. 1305. - When the contracting parties manifest
- A contract is an agreement between two their interest in the contract where it
parties. ends at the moment of agreement.
- Give arise to obligations but obligations do - Process of formation such as
not arise in contract. bargaining, negotiation to arrive at a
- Becomes the law between two parties. definite contract.
- Compliance in good faith is required. 2. Perfection – birth of contract
*For documentation purposes, written contract is - When both parties agree upon the
the best document proof in the court. essential elements thereof.