OBLIGATIONS AND CONTRACTSby: Hector S.
de Leon
1
of
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Obligation
–
is a JURIDICAL NECESSITYto give, to do or not to do (a.115)
“Obligatio” –
Latin word meaning tying or binding
“Obligation is a LEGAL RELATION established between one
party and another whereby the latter is bound to thefulfillment of a PRESTATION (the conduct which has
to beobserved by the Debtor/Obligor) which the former maydemand from him
Juridical Necessity
–
in case of non-compliance the courtsmay call upon to enforce its fulfillment or, the economicvalue it
represents.
Damages
–
represents the SUM OF MONEY given as acompensation for the injury or harm suffered by
thecreditor/oblige for the violation of his rights.
Creditor or Obligee
–
he who has the RIGHT TO THEPERFORMANCE of the Obligation.
Debtor or Obligor
–
he who has the Obligation to complyotherwise shall be visited by Harmful/ Undesirable
LegalConsequences
NATURE OF OBLIGATIONS (CC):
1.
Civil Obligations
–
obligations which give to thecreditor/obligee a RIGHT OF ACTION in courts of justiceto enforce their
performance.2.
Natural Obligations
–
NOT based on Positive Law (Law recognized by
gov’t authority);
but on EQUITY and NATURAL LAW(derived from nature and binding upon society);does NOT grant a
Right of Action to enforce theirperformance; if voluntary fulfillment by debtor,cannot recover what has
been delivered
ESSENTIAL ELEMENTS OF OBLIGATIONS:
(1)
Active Subject
(Creditor/Obligee)
–
or the personwho is entitled to DEMAND the fulfillment of theobligation; he who has the RIGHT
<power a personhas under the law to demand from another any prestation>
(2)
Passive Subject
(Debtor/Obligor)
–
person who isbound to the fulfillment of the obligation; he whohas the DUTY/OBLIGATION <
act or performancewhich the law will enforce>
(3)
Object/Prestation
–
SUBJECT MATTER of theobligation or the CONDUCT required to be observedby the debtor (giving,
doing, or not doing)
(4)
Juridical Tie/Legal Tie
–
EFFICIENT CAUSE or thatwhich BINDS OR CONNECTS the parties to theobligation. The tie can be be
easily determined byknowing the source of obligation.
Example: X bound himself to construct a house for Y for 1M, contract X
–
is the debtor/obligor/passive subjectY
–
is the creditor/oblige/active subjectHouse
–
object/prestationContract
–
juridical tie
Wrong/ Cause of Action
–
ACT OR OMISSION of one party inviolation of the legal right(s) of another, causing injury to thelatter.
Example: breach of contract
ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION:1.
Essential Elements:
a.
There is a LEGAL RIGHT in favor of a person
b.
There is a LEGAL OBLIGATION on the partof another
c.
There is an ACT or OMISSION in breach orviolation of the said right by the defendant(one being sued in
civil action or prosecutedin a criminal action) with consequentialinjury or damage to the plaintiff (one
whobrings an action at law) for which he maymaintain an act for damages or appropriaterelief
(assistance)
2.
If any element is absent, complaint becomesvulnerable to motion to dismiss on the ground offailure to
state a cause of action
3.
A cause of action only arises when the last elementoccurs the moment a right has been
transgressed(trespassed).
a.
Right of action distinguished from maintain
b.
Right of action/Right to commence<procedural law
–
laws which establishprocedure and rules of court and the courtsystem and which matters
are conducted>
ii.
Right to maintain an action <substantivelaw
–
written law controlling rights andactions of persons within jurisdiction>
b. For every Right enjoyed by a person, there is acorresponding obligation on the part of anotherto
respect such right.
(Contracts) accrues only when an actual breach orviolation occurs
Period of Prescription
–
from the occurrence of breach
Injury
–
the ILLEGAL INVASION of a legal right; wrongfulact or omission which causes loss or harm to another
Damage
–
Is the LOSS, HURT, or HARM which resultsfrom the injury
Damages
–
denotes the SUM OF MONEY recoverable asamends <compensation for loss or injury> for thewrongful
act or omission
Injury
–
is the LEGAL WRONG to be redressed<remedied/compensated>
PROOF OF LOSS FOR INJURY:
There must be(1) Wrongful Violation of a legal right/ Injury;(2) Loss or Damage caused to him by such
violation
*
One who makes use of his legal right does no injury
*
Qui jure suo utitur mullum damnum facit
*
If damages
result from a person’s exercise of legal right
*
Damnum absque injuria (damage without injury)
