Law on Obligation and contracts by De Leon Chapter 2

Chapter 2 - Nature and Effect of Obligations

Article 1163
Every person obliged to give something is also obliged to take care of it with the proper diligence of a good father of a family, unless the law or the stipulation of the parties requires another standard of care. (1094a)

Article 1164
The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095)

Article 1165
When what is to be delivered is a determinate thing, the creditor, in addition to the right granted him by Article 1170, may compel the debtor to make the delivery.
If the thing is indeterminate thing or generic, he may ask that the obligation be complied with at the expense of the debtor.
If the obligor delays, or has promised to deliver the same thing two or more persons who do not have the same interest, he shall be responsible for fortuitous event until he has effected the delivery.

Article 1167
If a person obliged to do something fails to do it, the same shall be executed at his cost.
This sme rule shall be observed if he does it in contravention of the tenor of the obligation. Furthermore, it may be decreed that what has been poorly done be undone. (1098)

Article 1168
When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense. (1099a)

Article 1169
Those  obliged to deliver or to do something incur in delay from the time the obligee juducially or extrajudicially demands from them the fulfillment of their obligation.
However, the demand by the creditor shall not be necessary in order that delay nay exist:
1. When the obligation or the law expressly so declares: or
2. When from the nature and the circumstances of the obligation it appears that the designation of the time when the thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the contract: or
3. When demand would be useless, as when the obligor has rendered it beyond his power to perform.
In reciprocal obligations, neither party incurs in delay if other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins. (1100a)

Article 1170
Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages. (1101)

Article 1171
Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void. (1102a)

Article 1172
Responsibility arising from negligence in the performance of every kind of obligation is also demandable, bu such liability may be regulated by the courts, according to the circumstances. (1103)

Article 1173
The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person, of the time and of the place. When negligence shows bad faith the provisions of articles 1171 and 2201, paragraph 2, shall apply.
If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required. (1104a)

Article 1174
Except in cases expressly specified by law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which though foreseen, were inevitable. (1105a)

Article 1175
Usurious transactions shall be governed by special laws. (n)

Article 1176
The receipt of the principal by the creditor, without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.
The receipt of a later installment of a debt without reservation as to prior  installments, shall likewise raise the presumption that such installments have been paid.(1110a)

Article 1177
The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person:  they may also impugn the acts which the debtor may have done to defraud them. (1111)

Article 1178
Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary. (1112)

Law on Obligation and Contracts by De Leon General Provisions

Chapter 1
General Provisions

Article 1156
An obligation is a juridical necessity to give, to do or not to do. (n)

Article 1157
Obligation arises from :
1. Law
2. Contracts
3. Quasi -contracts
4.Acts or omission punished by law
5. Quasi - delicts (1089a)

Article 1158
Obligation derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them: and as to what has not been foreseen, by the provisions of this book. (1090)

Article 1159
Obligations arising from contracts have the force of law between the contracting parties and should be compiled with in good faith. (1091a)

Article 1160
Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XV!! of this book. (n)

Article 1161
Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of article 2177, and of the pertinent provisions of Chapter 2, Preliminary title, on Human Relations, and of Title XV!!! of this Book, regulating damages. (1092a)

Article 1162
Obligations derived from quasi-delicts shall be governed by the provisions of Cahpter 2, Title XV!! of this Book, and by special laws.

Law on Obligation and Contracts by De Leon - Article 1156

Article 1156 - An obligation is  a juridical necessity to give , to do, or not to do.

Obligation - Latin word " obligatio" means tying or binding.It is to render something that it may consist in giving a thing, doing a certain act, or not.

Juridical necessity - In case in non compliance of the obligation, the courts of justice may be called the aggrieved party to enforce its fulfillment.

Civil obligations - Obligation that gives the creditor a right under the law to enforce their performance in courts of justice.

Natural Obligations - Based on equity and natural law.

Essential Requisites of an obligation:

 a. Passive subject - also called debtor or obligor; who is bound to fulfill the obligation.

 b. Active subject - also called creditor or obligee; who is demand the fulfillment of the obligation.

 c. Object or prestation - subject matter of the obligation ; example: money, car, and etc.

 d. Juridical or legal tie - also called efficient cause; example: contract or agreement.

Kinds of obligation:

a. Real obligation - obligation to give; which the obligor must deliver the thing to the obligee the subject matter.

b. Personal obligation - obligation to do or not to do; which subject matter is an act to be done or not.

                2 kinds of personal obligation

          1. Positive personal obligation - obligation to do

          2. Negative personal obligation - obligation not to do

Law on Obligation and Contracts by De Leon (Chapter 2 - Problems)

Law on Obligation and Contracts

Chapter 2 - Problems  Expand

     1.   S(seller) sold to B(buyer) on July 5, a Horse named Silver to be delivered on July 20. However, on July 15, S sold again and delivered to horse to T. Who has a better right to Silver?

Art. 1164 .The creditor has a right to the fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him. (1095).

 T has the better right to Silver than B.

  2.    S sold to B a specific refrigerator which S agreed to deliver not later than July 31, S did not deliver the refrigerator on said date. Is S guilty of legal delay?

 Art. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

S is guilty of legal delay. The delay on the part of the debtor in fulfillment of the obligation. is called Mora solvendi.

  3.    S promised to deliver to B a female horse named Suzie on July 10. Suzie gave birth to a colt on July 5.

    a. What arte the obligation of S?

Art. 1163.(Duties of the Debtor in obligation to give a determinate thing)

Preserve the thing

Deliver the fruits of the thing

Deliver the accessions and the accessories

Deliver the thing itself.

Answer for damages in case of non-fulfilment or breach

        b.Who has the right to the colt?

         S has the right to the colt.

        c. Who has lawful owner of Suzie in case it was sold and delivered by S to T on July 8?

        T is the lawful owner of Suzie. T has a real right to Suzie.

      4.     D (debtor) borrowed P20,000 from C(creditor) payable after 1 year? Is D liable to pay interest?

Art. 1175 unsurious  transactions shall be governed by special laws. D is liable to pay interest to C if: 

 They have expressly stipulated that a certain amount of interest may be recovered by C, 

 There is a written agreement between D and C about the interest. The payment of the interest is invalid if there is no agreement on the interest per year.

 5.  R(lessor) issued a receipt that E(lessee) has paid the rent for the months of March,2008. Can R still collect 5.  from E the rents for January and February,2008?

  Art. 1176.The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.

Yes, R can still collect the rents for January and February 2008 from E.

Law on Obligation and Contracts by De Leon (Chapter 1 - Problems)

Law on  Obligation and Contracts
 Chapter 1 - Problems  Expand

      1. X saw at about 1pm in the afternoon a child alone in a shopping mall. The child who strayed(naligaw) from Y,his mother, was in tears and appeared very hungry. Out of pity, X took him to restaurant to eat for which he spent P150. Y did not give her consent to good deed of X. Furthermore, they were on their way home before the child got lost. Is X entitled to be reimbursed by Y for the amount of P150?

Acc. Art.1160. Yes,  Y is liable to X even if she did not give her consent. X fed Y’s child and incurred expenses and this should be reimbursed by X to prevent anyone being unjustly enriched or benefited at the expense of other.

     
      2.  While the car of X was parked by the roadside, it was bumped at the rear by a jeep belonging to Y. Only the car of X suffered damage. Under the circumstances, does it follow that Y is Liable to X for damage?

     Acc. Art.1162.Yes, because even if there is no pre-existing contractual relation between them, X’s car was damaged due to the negligence of Y. If Y did not bump X’s car, X’s car would not have been damaged. Thus, Y is liable to X for the damages.

 3.   In The same problem, has X the right to ask indemnify from R, employer of X, on the ground  that when accident occurred X was then on his way to transact business with a client of R?

      Acc. Art.1158. X doesn’t have a right to ask for indemnity from R because there is no law that requires 

4.  D (debtor) borrowed P10,000 from C(creditor). On the due date of the loan, D could not pay C because he lost to a robber the P10,000 intended for C. In, addition, he suffered financial reverses, and he was short of cash even for his current family’s needs. Is D legally justified to refuse to pay C?

 Acc. Art.1159. No, because when D loaned from C, he entered in voluntary agreement and D was willing and therefore contract is valid. Thus, D should comply with their agreement in good faith and does not have a legal justification to refuse payment to C.

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