ECE LAWS, CONTRACTS AND ETHICS ECE 532 Obligations

-Definition of obligation -Requisites of obligation -Classification of Obligation

Reporter: Cabatbat, Dan Jr. P. Espiritu, John paul Ek-51 Engr. Maricar Caliliw

Tittle I

Obligations (Art. 1156-1304, Civil Code) Chapter 1 GENERAL PROVISIONS

Article1156. An Obligation is a juridical necessity to give, to do or not to do. The definition of obligations establishes the unilateral act of the debtor either to give, to do or not to do as a patrimonial obligation. It means that the debtor has the obligation while the creditor has its rights. The obligations referred to is a patrimonial obligations that is, those obligations with pecuniary value or assessable in terms of money. Civil Obligation - obligations which give to the creditor or obligee a right under the law to enforce their performance in courts of justice. Natural Obligations- Not being based on positive law but on equity and natural law, do not grant a right of action to enforce their performance although in case of voluntary fulfillment by the debtor, the latter may not recover what has been delivered or rendered by reason thereof.; precept based on do good and avoid evil. 1. Characteristics of patrimonial obligations: They represent an exclusively private interest. They create ties that are by nature transitory. They exist a power to make effective in case of non-fulfillment, the economic equivalent obtained at the patrimony of a debtor.

2. Juridical Necessity it means the rights and duties arising from obligation are legally demandable and the courts of justice may be called upon through proper action to order the performance.

Action means an ordinary suit in court of justice by which one party prosecutes another for the enforceable or protection for a right or a prevention or redress of a wrong (Sec. 1. Rules of court). Example Gaya bought a refrigerator from Tito but Gaya did not pay the refrigerator. If after demand, Gaya still did not pay, Tito can sue Gaya in Court either to demand payment or for recovery of the refrigerator. 3. Essential requisites of an obligation a) An active subject, who has the power to demand the prestation, known as the

creditor or oblige; -- An active subject (called creditor or obligee): the person who is entitled to demand the fulfillment of the obligation b) A passive subject, who is bound to perform the prestation, known as debtor or obligor. --A passive subject (called debtor or obligor): the person who is bound to the fulfillment of the obligation c) An object or the prestation which may consist in the act of giving, doing or not doing something. -- Subject matter of the obligation d) The vinculum juris or the juridical tie between the two subjects by reason of which the debtor is bound in favor of the creditor to perform the prestation. It is the legal tie which constitutes the source of obligationthe coercive force which makes the obligation demandable. It is the legal tie which constitutes the devise of obligation the coercive force which makes the obligation demandable. A juridical or legal tie: the vinculum the efficient cause that binds or connects the parties. The tie in the obligation can easily be determined by knowing the source of the obligation.

Juridical Tie Debtor-----------------To give, to do ------------------Creditor Or Obligor or not to do or Obligee

Example:

Gaya enters into a contract of sale with Tito who paid the purchase of a GE refrigerator. Gaya did not deliver the refrigerator. Gaya is the passive subject or debtor and Tito is the active subject or creditor. The object or prestation is the GE refrigerator and the obligation to deliver is the legal tie or the vinculum juris which binds Gaya and Tito. This is also known as a unilateral obligation, that is, the obligation of the debtor to fulfill or comply his commitment, in this case, the delivery of the refrigerator. On the other hand, if Gaya, delivered the refrigerator and Tito did not pay, then Tito becomes the debtor who is bound to pay while Gaya is the creditor who has the right to demand the prestation.

Kinds of Obligation According to the Subject matter 1. Real Obligation ( Obligation to Give)- the subject matter is a thing which the obligor must deliver to the obligee. Ex. X ( the seller) binds himself to deliver a piano to Y. 2. Personal Obligation (obligation to do or not to do) - the subject matter is an act to be done or not to be done. Types of personal Obligation: a) Positive personal Obligation- obligation to do or not to render service Ex: X binds himself to repair the piano of Y. b) Negative personal Obligation- obligation no to do (which naturally includes obligations not to give. Ex: X obliges himself not to build a fence on a certain portion of his lot in favor of Y who is entitled to a right of way over said lot.

4. Distinctions between Obligations and Contracts: Contract is the only one of the sources of obligation, while obligations have other sources like law, quasi-contracts, delicts or quasi-delicts; Contract is a bilateral obligation while obligation is a unilateral obligation; All contracts are obligations while not all obligations are contracts. 5. Civil obligations as distinguished from Natural obligations Civil obligations derive their binding force from positive law; Natural Obligation derives their binding effect from equity and natural justice. Civil can enforced by court action of the coercive power of public authority; Natural the fulfillment cannot be compelled by court action but depends on the good conscience of debtor.

ART. 1157. Obligations arise from:

 Law; Contracts; Quasi-contracts; Acts or omissions punished by law; and Quasi-delicts. On the sources of obligation, the main sources are really Law and Contracts. The other sources are also established by law.

Source of Obligations 1. LAW as a source of obligations The provisions of Art.1158 refers to the legal obligations or obligations imposed by specific provisions of law, which means that obligations arising form law are not presumed and that to be demandable must be clearly provided for, expressly or impliedly in the law. When they are imposed by law itself. Ex: Obligation to pay taxes; obligation to support one's family. 2. CONTRACT as a source of obligations Contract as defined in Art. 1305, NCC is the meeting of minds between two person whereby one binds himself with respect to the other, Obligations arising from contracts have the force of law between the contracting parties because that which is agreed upon in the contract by the parties is the law between them, thus, the agreement should be complied with in good faith. (Art.1159). For examples: A contract of lease was executed between Gaya as the lessee and Tito as the less or for the rent of an apartment.

When they arise from the stipulation or the parties.

A contract can be broadly defined as an agreement that is enforceable at law. Ex: The obligation to repay a loan or indebtedness by virtue of an agreement 3. QUASI-CONTRACTS as a source of obligations The quasi literally means as if.

 Quasi-contract is the juridical relation resulting from a lawful, voluntary and unilateral act which has for its purpose the payment of indemnity to the end that no one shall unjustly enrich or benefited at the expense of another. (Art. 2142, NCC) Contracts and quasi-contracts distinguished: in a contract, consent is essential requirement for its validity while in quasi-contract, there is no consent as the same is implied by law; Contract is a civil obligation while quasi-contract is a natural obligation. 2 Kinds of Quasi-contracts 1. Solutio Indebiti (Payment by mistake) It is the juridical relation which arises when a person is obliged to return something received by him through error or mistake. ExampleArvin owed Ian the sum of P1, 000.00. By mistake, Arvin paid P2, 000.00. Ian has the obligation to return the P1, 000.00 excess because there was payment by mistake. 2. Negotiorum gestio (management of anothers property) It is the voluntary management or administration by a person of the abandoned business or property of another without any authority or power from the latter. (Art. 2144, NCC) ExampleVictor, a wealthy landowner suddenly left for abroad leaving his livestock farm unattended. Ramon, a neighbor of Victor managed the farm thereby incurring expenses. When Victor returns, he has the obligation to reimburse Ramon for the expenses incurred by him and to pay him for his services. It is bases on the principle that no one shall enrich himself at the expense of another. 4. DELICTS or acts or omissions punished by law as a source of obligations Acts or omission punished by law is known as Delict or Felony or Crime. While an act or omission is felonious because it is punished by law, the criminal act gives rise to civil liability as it caused damage to another. Civil liability arising from delicts: Restitution which is the restoration of or returning the object of the crime to the injured party? Reparation which is the payment by the offender of the value of the

object of the crime, when such object cannot be returned to the injured party? Indemnification the consequential damages which includes the payment of other damages that may have been caused to the injures party.

Illustration: Mario was convicted and sentenced to imprisonment by the Court for the crime of theft, the gold wrist watch, of Rito. In addition to whatever penalty that the Court may impose, Mario may also be ordered to return (restitution) the gold wrist watch to Rito. If restitution is no longer possible, for Mario to pay the value (reparation) of the gold wrist watch. In addition to either restitution or reparation, Mario shall also pay for damages (indemnification) suffered by Rito. 5. QUASI-DELICTS as a source of obligations Concepts of Quasi-Delict Quasi-delict is one where whoever by act or omission causes damage to another, there being fault of negligence, is obliged to pay for the damage done. Such fault of negligence, if there is no pre-existing contractual relation between the parties. (Art. 2176) ExampleIf Pedro drives his car negligently and because of his negligence hits Jose, who is walking on the sidewalk of the street, inflicting upon him physical injuries. Then Pedro becomes liable for damages based on quasi-delict.