There is no deliberate intention to cause damage. (New, SG No. Contracts may be amended, terminated, cancelled or revoked only by mutual consent of the parties or on the grounds provided for in the law. By Agreement and Contract 2. Art. SPECIAL RULES/FORMS OF PAYMENT – Special Forms: Requisites for the Application of payment: Exception: there may be application of payment even if all debts are not yet due if: b)    when application of payment is made by the party for whose benefit the term has been constituted, a)    Debtor without protest accepts receipt in which creditor specified expressly and unmistakably the obligation to which such payment was to be applied – debtor in this case renounced the right of choice, b)    When monthly statements were made by the bank specifying the application and the debtor signed said statements approving the status of her account as thus sent to her monthly by the bank, 1)    If creditor consents, for a sale presupposes the consent of both parties, 2)    If dacion will not prejudice the other creditors, 3)    If debtor is not judicially declared insolvent, c)    Complete or partial insolvency of debtor, d)    Abandonment of all debtor’s property not exempt from execution, e)    Acceptance or consent on the part of the creditors, a)    Creditors do not become the owner; they are merely assignees with authority to sell, b)    Debtor is released up to the amount of the net proceeds of the sale, unless there is a stipulation to the contrary, c)    Creditors will collect credits in the order of preference agreed upon, or in default of agreement, in the order ordinarily established by law, Tender -the act of offering the creditor what is due him together with a demand that the creditor accept the same (When creditor refuses w/o just cause to accept payment, he becomes in mora accepiendi & debtor is released from responsibility if he consigns the thing or sum due), Consignation – the act of depositing the thing due with the court or judicial authorities whenever the creditor cannot accept or refuses to accept payment; generally requires prior tender of payment, (2)  Consignation was made because of some legal cause – previous valid tender was unjustly refused or circumstances making previous tender exempt, (3)  Prior Notice of Consignation had been given to the person interested in performance of obligation (1st notice), (4)  actual deposit/Consignation with proper judicial authorities, (5)  subsequent  notice of Consignation (2nd notice), (1)  Debtor may ask judge to order cancellation of obligation, (3)  Before creditor accepts or before judge declares consignation has been properly made, obligation remains ( debtor bears risk of loss at the meantime, after acceptance by creditor or after judge declares that consignation has been properly made – risk of loss is shifted to creditor). Business law obligation and contract refers to what is legally required of each of the parties involved in a contractual agreement. Notes on Obligations and Contracts 2012 3 ownership or real rights shall not take place to the prejudice of a third person, except in virtue of another title also recorded; and the time shall begin to run from the recording of the latter. Art. Looks like you’ve clipped this slide to already. Obligations Chapter 2: Essential Requisites of Contracts GENERAL PROVISIONS Section 3 - Cause of Contracts (Arts. Facultative – only one prestation has been agreed upon but another may be given in substitution. Business Law. When stipulation says “payable when able “ – it is with a period, remedy: b)    court shall fix period of payment when parties unable to agree, d)    art 1687, 2nd, 3rd, 4th sentence, (4). COMPENSATION – Set off; it is a mode of extinguishment to the concurrent amount the obligation of persons who are in their own right reciprocally debtors or creditors, –          not all requisites are present, –          depositum; commodatum; criminal offense; claim for future support; taxes, Effect of assignment of credit to 3rd person; can there still be compensation, a. if made after compensation took place – no effect; compensation already perfected, b. if  made before compensation took place – depends, 7. Note that you can also download your contract note from our back office portal. OBLIGATION WITH A PENAL CLAUSE An obligation to which an accessory undertaking (penal clause/penalty) is attached for the purpose of insuring its performance by virtue of which the obligor is bound to pay a stipulated indemnity or perform a stipulated prestation in case of breach. relative – there is intention to be bound but concealed; concealed contract binds: Informal – may be entered into whatever form as long as there is consent, object & cause, Formal – required by law to be in certain specified form such as: donation of real property, stipulation to pay interest, transfer of large cattle, sale of land thru agent, contract of antichresis, contract of partnership, registration of chattel mortgage, donation of personal prop in excess of 5,000, Real – creation of real rights over immovable prop – must be written, Law requires contract to be in some form for validity – donation & acceptance of real property, Law requires contract to be in some form to be enforceable – Statute of Frauds; contract is valid but right to enforce cannot be exercised; need ratification to be enforceable, Law requires contract to be in some form for convenience – contract is valid & enforceable, needed only to bind 3, contracts w/c object is creation, transmission or reformation of real rights over immovables, cession, repudiation, renunciation of hereditary rights/CPG. Change ), You are commenting using your Google account. The Law on If you continue browsing the site, you agree to the use of cookies on this website. •Consensual contracts- contracts perfected by mere … College Physics Raymond A. Serway, Chris Vuille. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the thing or price received by him. Download PDF. ( Log Out /  CONFUSION OR MERGER OF RIGHTS– character of debtor & creditor is merged in same person with respect to same obligation, 6. UST Golden Notes in Obligations and Contract 2011. Change ), Compensation Administration for Baccalaureate Course. 3. cause of the obligation which must be established (Art. DOES NOT INVALIDATE CONTRACT PER SEExceptions: 4 years from time defect of consent ceases, Contracts entered into by minors/incapacitated persons, CONTRACT DOES NOT CONSTITUTE CRIMINAL OFFENSE BUT IS ILLEGAL OR UNLAWFUL PER SE, Active subject ( obligee/creditor ) – the one in whose favor the obligation is constituted, Passive subject ( obligor/debtor ) – the one who has the duty of giving, doing or not doing, Object – prestation; the conduct which has to be observed by the debtor/obligor, Causa (causa debendi/causa obligationes) – why obligation exists, determinate or determinable – or else, void, Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code, Art 100, RPC – Every person criminally liable for a felony  is also civilly liable, Chapter 2, Preliminary title, on Human Relations ( Civil Code ), Title 18 of Book IV of the Civil Code – on damages, when acquittal is due to reasonable doubt – no civil liability, when acquittal is due to exempting circumstances – there is civil liability, when there is preponderance of evidence – there is civil liability, Obligation to give – obligation to deliver the thing agreed upon, Obligation to do/not to do – obligation to do/not to do the service agreed upon, standard of care: that of a good father of a family – unless the law or stipulation requires another standard of care, When does the right begin to exist : from the time to deliver arises, Accessories – those joined to or included with the principal for the latter’s better use, perfection or enjoyment, Accessions – additions to or improvements upon a thing, When does right to fruits arise? Natural Elements (Art. 1159. Note: The SC in … Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 1. meaning of The effect is that the debtor loses the right of choice, (2)   if the choice is limited because of the creditor’s acts, the debtor has the right of resolution and damages, (3)   if all are lost due to debtor, the creditor is entitled to damages, (4)   if some are lost, the debtor can choose from the remaining, (1)  if one or some are lost due to fortuitous event, the creditor chooses the remainder, (2)  if one or some is lost because of the fault of debtor, the creditor may choose either the remainder or the value of any which disappeared, and damages in either case, (3)  if all is lost due to the debtor’s fault, the creditor may choose the value of any if some is lost due to debtor’s fault, the creditor chooses the remainder, (4)  if all is lost due to fortuitous event, obligation is extinguished, (5)  if all is lost due to creditor’s fault, the obligation is extinguished, a)    Made properly so that creditor or his agent will actually know, b)    Made with full knowledge that a selection is indeed being made, d)    Made in due time – before or upon maturity, f)     Made w/o conditions unless agreed by the creditor, g)    May be waived, expressly or impliedly, DISTINCTIONS BETWEEN ALTERNATIVE AND FACULTATIVE OBLIGATIONS, (6)  Joint – presumption when 2 or more creditors or 2 or more debtors concur in one and the same obligation, (7)  Solidary – must be expressed in stipulation or provided by law or by nature of obligation. Of pledge – condoned; presumption only, rebuttable, 2. needs consent of creditor– express or implied, 3.  2 obligations; 1 is extinguished & new one created, VOIDABLE – party must prove that cause is untruthful; presumption of validity but rebuttable, PRESUMED TO EXIST – burden of proof is on the person assailing its existence. FAILURE TO COMPLY WITH PERFORMANCE/REMEDIES: Mora solvendi – default on the part of the debtor; 2 kinds: (1)  Mora Solvendi Ex re – default in real obligations, (2)  Mora Solvendi Ex persona – default in personal obligations, (1)  The obligation must be due, enforceable and already liquidated or determinate in amount, (3)  There must be a demand, unless demand is not required, (3)  When designation of time of delivery or rendering the service was a controlling motive, (4)  When demand would be useless as when debtor has rendered it beyond his powers to perform. 1350 - 1355) I. Definitions Define or give the meaning of … Study Unit 4: The obligations of the lessor 14. Biology Mary Ann Clark, Jung Choi, Matthew Douglas. (1303a) Art. Submitted by: ...The Law of obligations and contracts is a 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.Obligation latin word obligation meaning tying or binding; Juridical necessity to give to do or not to do. Popular books. extinguishment of principal carries accessory, except: if old obligation has condition, must be compatible with the new obligation; if new is w/o condition – deemed attached to new, substituting person of debtor ( passive ), conventional- agreement & consent of all parties; clearly established. – that part of obligation which is not affected by impossible or unlawful condition shall be valid (Art. and Contracts E. Caliwan, J.D. 1160. REMEDIES OF CREDITORS – generally transmissible (except: law, stipulation, personal obligation): (1)  Pure – demandable at once, no term, no condition, (2)  Conditional – A condition is a future and an uncertain event  or a past event unknown to the parties, i. Suspensive – happening of condition gives rise to obligation, Rules on loss, impairment, improvement of the subject matter pending the happening of suspensive condition/ term, If it improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary. Unauthorized/No sufficient authority – entered into in the name of another when: in excess of authority conferred ( ultra vires ), Both parties incapable of giving consent -2 minor or 2 insane persons, Agreement to be performed within a year after making contract, Special promise to answer for debt, default or miscarriage of another, Agreement made in consideration of promise to marry, Agreement for sale of goods, chattels or things in action at price not less than 500; exception: auction when recorded sale in sales book, Agreement for lease of property for more than 1 year & sale of real property regardless of price, Failure of defendant to object in time, to the presentation of parole evidence in court, the defect of unenforceability is cured, Acceptance of benefits under the contract. Obligations and Contracts Notes.pdf - Free download as PDF File (.pdf), Text File (.txt) or read online for free. (1091a) Art. Understand that failure to fulfill an obligation is a form of breach of contract by the lessor, and be able to identify the form of breach of contract and set out the relevant remedies available to the lessee Note: Ang Yu v. CA (1994) states that a unilateral promise to buy or sell, if not supported by a distinct consideration, may be withdrawn but may not be done whimsically or arbitrarily; the right of the grantee here is damages and not specific performance; Equatorial v. Mayfair(264 SCRA 483) held that an option clause in order to be valid and enforceable must indicate the definite price at which the person granting the option is willing to sell, contract can be enforced and not only damages; Paranaque Kings V CA (1997) states that right of first refusal may be enforced by specific performance. (art 1189), ii. What civil liability arising from a crime includes: a)    There must be fault or negligence attributable to the person charged, c)    There must be a direct relation of cause and effect between the fault or negligence on the one hand and the damage or injury on the other hand ( proximate cause ), a)    when there is no term/condition – from the perfection of the contract, b)    when there is a term/condition – from the moment the term or condition arises, a)    Conditional – from the moment the condition happens, b)    With a term/period – upon the expiration of the term/period, c)    Simple – from the perfection of the contract. Compensation Administration Class for February 23, 2013, Obligations and Contracts Class for February 23, 2013, Obligations and Contracts Class Assignment for this Saturday 2.9.2013, Finished Checking: CompenBen Mid Term Exams :), Compensation Administration for the Baccalaureate Course, Obligations and Contracts for the Baccalaureate Course, Can only be demanded if obligation is not very personal, Undo the things already done at debtor’s expense. 37 Full PDFs related to this paper. NOVATION – extinguishment of obligation by creating/ substituting a new one in its place, –          stipulation to contrary, –          stipulation pour autri unless beneficiary consents, –          modificatory novation only; obliged to w/c is less onerous, –          old obligation is void, –          new obligation is void or voidable but annulled already ( except: intention of parties ), –          if Resolutory & it occurred –old obligation already extinguished; no new obligation since nothing to novate, –          if suspensive & it never occurred –as if no obligation; also nothing to novate, –          if suspensive & did not materialize: old obligation is enforced, EXPROMISION; initiative is from 3rd person or new debtor; new debtor & creditor to consent; old debtor released from obligation; subject to full reimbursement & subrogation if made w/ consent of old debtor; if w/o consent or against will , only beneficial reimbursement; if new debtor is insolvent, not responsible since w/o his consent, DELEGACION; initiative of old debtor; all parties to consent; full reimbursement; if insolvent new debtor – not responsible old debtor because obligation extinguished by valid novation unless: insolvency already existing & of public knowledge or know to him at time of delegacion, (1)  Parties must have clearly and deliberately conferred a favor upon a 3rd person, (2)  The stipulation in favor of a 3rd person should be a part of, not the whole contract, (3)  That the favorable stipulation should not be conditioned or compensated by any kind of obligation whatsoever, (4)  Neither of the contracting parties bears the legal representation or authorization of 3rd party, (5)  The third person communicates his acceptance before revocation by the original parties, (2)  Knowledge of the contract by a 3rd person, As to importance or dependence of one upon another, a)    Do ut des – I give that you may give, b)    Do ut facias – I give that you may do, c)    Facio ut des – I do that you may give, d)    Facio ut facias – I do that you may do, Note: We follow the theory of cognition and not the theory of manifestation. Effect of loss or impossibility of the prestation: (8)  Divisible – obligation that is capable of partial performance, (9)  Indivisible – one not capable of partial performance. (n) CHAPTER 1. Types of Contract. (1091a) Contract- meeting of the minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. An obligation is a juridical necessity provided they are not contrary to law, morals, to give, to do or not to do. Grade Sheets were already done. A judicial declaration to that effect is merely a declaration, It cannot be confirmed, ratified or cured, If performed, restoration is in order, except if pari delicto will apply, The right to set up the defense of nullity cannot be waived, Anyone may invoke the nullity of the contract whenever its juridical effects are asserted against him, No action for restitution on either side.  The law will leave you where you are, Thing/price to be confiscated in favor of government, Innocent party is entitled to restitution, Guilty party is not entitled to restitution, Instrument of crime will be confiscated in favor of govt, If purpose has not yet been accomplished & If damage has not been caused to any 3, Where laws are issued to protect certain sectors: consumer protection, labor, usury law, If one party is incapacitated, courts may allow recovery of money, property delivered by incapacitated person in the interest of justice; pari delicto cannot apply because an incapacitated person does not know what he is entering into; unable to understand the consequences of his own action, If agreement is not illegal per se but merely prohibited & prohibition is designated for the protection of the plaintiff – may recover what he has paid or delivered by virtue of public policy, incapacitated  – not obliged to return what he gave but may recover what he has given. 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