Business Law Reviewer

OBLIGATIONS

GENERAL PROVSIONS

>Obligation – a juridical necessity to give, to do, or not to do.
>Juridical Necessity – requiring the performance of the law

>Requisites of Obligation:

        1. Passive subject – debtor/obligor

        2. Active subject – creditor/oblige

3. Object – subject matter of the obligation. May consist of giving, doing or not doing.

        4. Juridical tie – source of obligation

>Forms of Obligation

        1. oral

        2.partly oralQ

        3. writing

        4. partly in writing

>Obligation – act/performance which the law will enforce

>Right – the power a person has under the law(to demand)
>Wrong – a violation of a persons right. Also called injury.
>Kinds of Obligations (Subject matter)

        1. Real obligation – obligation to give

        2. Personal – obligation to do/not do

                -positive personal

                -negative personal

>Obligations arise from/sources:

        1. Law-must be expressly written

2. Contracts-has the force of the law, complied with good faith. Stipulation of parties

3. Quasi-Contracts- arise form lawful, voluntary, unilateral acts. No one shall be unjustly enriched or benefited at the expense of another. (prevent injustice)

4. Acts/omissions punished by law- arise from civil liability from criminal offense.

5. Quasi Delicts-no contractual relation exist, arise from damage
>Sources classified:

        1. emanating from law – law

        2. Private acts

                -licit – contracts, quasi-contracts

-illicit – acts punishable by law or not punishable (quasi-delicts/torts)

>obligations derived from law are not presumed because it can be a burden to the obligor. Only those that are exprresely determined from the civil code and special laws are demandable. To be demandable, they must be clearly set forth by the law.
>Contract – meeting of minds
        Elements: Object of Cause and considerations
>Binding force – equivalent to the law

>Requirement of a valid contract:

-I not contrary to the law, morals, good customs, public order and public policy

>Compliance with good faith – performance in accordance to what is agreed upon by the parties.

>Kinds of quasi-contracts:

1. negotiurom gestio –voluntary management without the knowledge of the other.

2. solution indebiti – created when something is wrongly received or delivered through mistake

Requisites: 1. There is no right to receive the thing delivered

2. The thing was delivered through mistake

>Civil liability arising from crimes

        1. crimes + damges = criminal and civilly liable

        2. crimes w/o damages = no civil liability

        3. no crime =maybe civil liability
>Scope of civil liability

        1. Restitution

        2. reparation for the damges caused

        3. indemnification for consequential damages
>Requisites of a quasi-delict:

        1. There must be an act or omission

        2. there must be fault or negligence

        3. there must be damge caused

4. there must be a cause and effect between the act and the damge caused

        5. there is no pre existing contract

NATURE AND EFFECT OF OBLIGATIONS

Every person obliged to give something is obliged to take care of it like the diligence of a good father of a family (standard of care, ordinary)

>Specific thing – unique

>Generic thing – can be replaced
>Duties of the debtor to deliver a specific thing:

        1. Preserve the thing

                -Diligence of a good father of a family

-Another standard of care

-Factors to be considered (if thing is lost due to fortuitous event, no liability)

        2. Deliver the fruits of the thing

        3. Deliver the accessions and accessories

        4. Deliver the thing itself

5. Answer for damages in case of non fulfillment/breach

>Duties of the debtor to deliver a generic thing

1. To deliver the thing with its intended quality (not superior nor inferior)

2. To be liable for damages in case of fraud, negligence, delay

>Different Kinds of Fruits:

1. Natural Fruits – spontaneous growing, no  human intervention
2. Industrial fruits – produced by cultivation

3. Civil Fruits – derived from virtue of juridical relation

>Obligation to deliver the fruits arises:

        1. Contract has been made

2. In case of obligation with a suspensive condition, it arises when the condition is fulfilled.

3. Contract of sale – it is suspensive but the time the contract has been made (exception)

>Personal right – the right to demand
>Real right – right over a specific thing (ownership, possession)
>Remedies of creditor in specific real obligation:

        1. fulfillment + damages

        2. cancellation + damages

        3. payment of damages
the creditor has the right to compel the debtor to deliver the specific thing because only the debtor can comply the obligation.

>Remedies of creditor in generic real obligation: