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Philippine Laws: Obligations and
Contracts
paulthebeloved (52) (/@paulthebeloved)in #philippines
(/trending/philippines) • 5 years ago
Obligation: Concepts and Sources
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An obligation is a juridical necessity to give, to do or not to do.1 An
obligation needs to be juridical in nature in order for it to have the force of
law. Through this, a court may be asked to order the performance of an
obligation.
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An obligation are civil or natural. Civil Obligation is based on a positive
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law and gives
(/) right of action to compel their performance, while Natural
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Obligation is based on natural law, but on equity and moral justice. Hence,
it is not enforceable by court action, but after voluntary performance of
the debtor, he can no longer recover what he has given.
Example: Romeo executed a promissory note in favor of Juliet for $50, 000.
Romeo is the debtor (payor) while Juliet is the creditor (payee). If Romeo
does not pay on due date, Juliet can enforce the fulfillment of the
obligation by court action. If Juliet does not file a court action against Juliet
within 10 years from due date which is the prescriptive period for an
action against a written contract. Juliet looses the right to exact
performance by court action. However, if Romeo, out of his love for Juliet,
voluntarily makes the payment to Juliet thought such obligation has
prescribed, Romeo will no longer be allowed to recover what he has given
as payment because although the obligation has prescribed, in equity and
moral justice, Romeo still owed Juliet the amount of $50, 000.
( Article 1144 (3), Civil Code of the Philippines. Upon a written contract;
actions must be brought withing 10 years from the time the right of action
accrues. )
There are 4 essential requisites of an obligation in order to exist. All of
these must be present:
1. Active subject - It is the party (creditor or obligee) who has the right to
demand the performance of an obligation.
2. Passive subject - It is the one (debtor or obligor) who is obliged to
perform the obligation.
3. Prestation - It is the object of the obligation. It is what the obligation is
all about either to give, to do, not to do, or a combination.
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4. Efficient Cause - The juridical tie that binds the parties to an obligation.
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It is what binds
(/) the parties (e.g. contracts, quasi contracts).
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Example: Romeo executed a contract of loan to borrow money from Juliet
whom he wishes to spend in courting Juliet. Juliet in turn agreed and lend
money to Romeo.
In the preceding example, Romeo is the passive subject while Juliet is the
active subject. Their prestation is the money being borrowed while their
efficient cause is the contract of loan. All of the essential requisites of an
obligation is present, hence such contract creates an obligation.
The law clearly defines what the different sources of an Obligation are.
Obligations arise from:2
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punishable by law; and
(5) Quasi-delicts. (1089a)
Law
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Obligations derived from law are Search
not presumed. Only(/login.html)
those expressly
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determined up
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)3
A law is a binding custom or practice of a
community : a rule of conduct or action
prescribed or formally recognized as
binding or enforced by a controlling
authority.4 Obligation derived from law
must not be presumed. If the law does not
include, therefore it excludes. Only those
which the law clearly stipulate or express image source
are demandable.
Example of this is the obligation to pay Taxes. Those which are clearly
stipulated in the National Internal Revenue Code (R.A. 8424) are
demandable and those which are not clearly expressed are not presumed.
Contracts
Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.
(1091a)5
A contract is a meeting of minds
between two persons whereby one
binds himself, with respect to the
other, to give something or to render
some service.(125a).6 A contract,
according to article 1159 and 1305,
bind two persons to perform an
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obligation that are incumbent upon
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having in them the force of law and
should be complied in good faith.
The two persons are the active and
passive subject while their
agreement and what they have
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agreed upon are the prestation and
efficient cause.
An example of this is a contract of loan, wherein the active subject is the
creditor; the passive subject is the debtor. The prestation is money to be
borrowed and the efficient cause is the contract.
Example: Romeo executed a contract of loan to borrow money from Juliet
whom he wishes to spend in courting Juliet. Juliet in turn agreed and lend
money to Romeo. The meeting of the minds of Romeo and Juliet created
the contract of loan and to enforce what they have agreed upon they put it
in writing (contract of loan) which is what the statute of fraud demand.
Quasi-contracts
Obligations derived from quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII, of this Book. (n)7
Certain lawful, voluntary and unilateral acts give rise to the juridical
relation of quasi-contract to the end that no one shall be unjustly enriched
or benefited at the expense of another (n).8 Quasi-contract arises because
of these acts which might result to an unjust enrichment. There is unjust
enrichment when a person unjustly retains a benefit at the loss of another
that is against the fundamental principles of justice, equity and good
conscience.
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Examples of these acts that give rise to quasi-contract are Negotiorum
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gestio and Solutio
(/) indebiti.
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a. Negotiorum gestio
Negotiorum gestio is the voluntary administration of the property,
business or affairs of another, without his consent or authority, that
creates an obligation for reimbursement for the necessary expenses the
gestor had spent.9
Example: Juliet left her farm
unattended for 1 week because she is
having a vacation. Romeo, a
concerned lover in secrecy, noticed
that Juliet has not been around and
the plants are slowly dying. Out of
affection, Romeo cultivated the land,
watered the plants, buy fertilizers image source
and placed fertilizers to the plants,
removed the weeds and do all what a farmer should do. Romeo spent
necessary expenses which needs to be reimbursed in order for Juliet not to
unjustly enrich herself at the expense of Romeo.
b. Solutio indebiti
If something is received when there is no right to demand it, and it
was unduly delivered through mistake, the obligation to return it
arises. (1895)10
Solutio indebiti refers to payment by mistake. It is receiving payment by
mistake that is not due or does not have such right to demand such
payment. It creates an obligation to return such payment.
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Example: Romeo bought goods from Juliet Store. The goods cost $1500.
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Romeo gave(/)$2000 to the store cashier and receive a change of $700.
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Romeo is duty bound to return the excess of $200 to the store. Otherwise,
he will be unjustly enriching himself at the expense of Juliet Store.
Another example, Romeo commutes
via jeepney on his way to school.
Juliet, a jeepney driver, receives Php
10 from Romeo. Because of the
handsomeness and cuteness of
Romeo, Juliet thought that Romeo is a
student. So, she gave Romeo a change
of Php 4 rather than Php 2 if no
discount given. By solutio indebiti,
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Romeo has no right to receive the
excess Php 2. Therefore, Romeo is
bound to return the excess Php 2 or else he will be unjustly enriching
himself at the expense of Juliet.
Acts or omissions punishable by law
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 XVIII of this Book, regulating damages.
(1092a)11
Every person criminally liable for a felony is also civilly liable.12
Commission of a crime makes the offender civilly liable. Such civil liability
includes:13
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1. Restitution; Search (/login.html) Sign
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2. Reparation of the damage caused; up
3. Indemnification for consequential damages.
Example: Romeo, a horse racing
enthusiast, steals the horse of Juliet.
Romeo commits the crime of stealing
Juliet's beloved horse. Romeo is
criminally liable. In addition, Romeo is
also civilly liable. He is liable to return
the horse, paying for its value if he
cannot return the horse and
image source
indemnifying Juliet of the
consequential damages she had
suffered.
Quasi-delict
Obligations derived from quasi-delicts shall be governed by the
provisions of Chapter 2, Title XVII of this Book, and by special laws.
(1093a)14
Quasi-delict (also known as tort or culpa aquiliana ) are acts or omissions
that cause damage to another, there being fault or negligence, is obliged to
pay for the damage done but without any pre-existing contractual relations
between the party.15 There is quasi-delict if there is damages sustained,
negligence by act or omission, and the connection of the cause and effect
between such negligence and damages.
Example: Romeo, a handsome try hard baseball player, was
playing baseball outside Juliet's house. Upon seeing Juliet,
Romeo suddenly got excited and hit the ball so hard that it fly image source
straight to Juliet's window shattering it into pieces and
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bounce right into Juliet's face injuring her beloved nose. Though Romeo
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and Juliet has
(/) no contractual relation at all. They are now bound to each
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other because of quasi-delict. Because of Romeo's negligence, he will be
liable for the damages to Juliet.
Sources
1Article 1156, Civil Code of the Philippines
2Article 1157, Civil Code of the Philippines
3Article 1158, Civil Code of the Philippines
4
Merriam-Webster Dictionary
5Article 1159, Civil Code of the Philippines
6Article 1305, Civil Code of the Philippines
7Article 1160, Civil Code of the Philippines
8Article 2142, Civil Code of the Philippines
9
Article 2144, Civil Code of the Philippines
10Article 2154, Civil Code of the Philippines
11Article 1161, Civil Code of the Philippines
12Article 100, Revised Penal Code of the Philippines
13Article 104, Revised Penal Code of the Philippines
14
Article 1162, Civil Code of the Philippines
15Article 2176, Civil Code of the Philippines
Civil Code of the Philippines
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The topic on contracts will soon to be discussed. It is a broad topic. What is
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in this post (/)
is just a nutshell of what contract is. Additional topics will soon
up
be posted. Keep in touch.
For any queries or topics you want to be discussed feel free to comment.
-Your Lovely Accountant Steemian-
#law (/trending/law) #steemiteducation (/trending/steemiteducation)
#education (/trending/education) #steemph (/trending/steemph)
5 years ago in #philippines (/trending/philippines) by Reply 5
paulthebeloved (52) (/@paulthebeloved) (/philippines/@paulthebeloved/philippi
$30.65 35 votes laws-obligations-and-contracts)
Sort: Trending
bayanihan (54) (/@bayanihan) 5 years ago (/philippines/@bayanihan/re-paulthebeloved-philippine- [-]
laws-obligations-and-contracts-20180120t084552755z#@bayanihan/re-paulthebeloved-philippine-laws-
obligations-and-contracts-20180120t084552755z)
Nosebleed man kuya. Pwede un taxation with gains/tradings sa digital currencies? Yan, applicable sa lahat.
Yayamanin tayo once in a while☺
$0.00 1 vote Reply
paulthebeloved (52) (/@paulthebeloved) 5 years ago (/philippines/@bayanihan/re- [-]
paulthebeloved-philippine-laws-obligations-and-contracts-
20180120t084552755z#@paulthebeloved/re-bayanihan-re-paulthebeloved-philippine-laws-
obligations-and-contracts-20180120t085832896z) (edited)
hahaha eto ata yun pero not discussing but only arguing that earnings from crypto from the point of
view of the law is taxable. Masyado kasing madugu at broad ang taxation maraming pasikot sikot
kaya sinimplify ng Pangulo. mhttps://steemit.com/philippines/@paulthebeloved/philippines-steem-
and-steemdollars-sbd-taxable-or-non-taxable
(https://steemit.com/philippines/@paulthebeloved/philippines-steem-and-steemdollars-sbd-
taxable-or-non-taxable)
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As of the moment, wala pa kasi yun sa current situation ng taxation natin. Parang nakatengga pa ang
BIR di pa naglalabas ng pamamaraan Search (/login.html)
paano katasan ang crypto hahaha. Sign
(/)
upnagagamit din naman natin sa
May susunod pa sa topic na to. Introduction at concepts pa to. pero
pang-araw araw kasi this is what governs our civil society hahaha
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minnowsupport (70) (/@minnowsupport) 5 years ago (/philippines/@minnowsupport/re-philippine- [-]
laws-obligations-and-contracts-20180119t134950#@minnowsupport/re-philippine-laws-obligations-and-
contracts-20180119t134950)
Congratulations! This post has been upvoted from the communal account, @minnowsupport
(/@minnowsupport), by paulthebeloved from the Minnow Support Project. It's a witness project run by
aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is
to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network
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If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links:
50SP , 100SP , 250SP , 500SP , 1000SP , 5000SP .
Be sure to leave at least 50SP undelegated on your account.
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sndbox (77) (/@sndbox) 5 years ago (/philippines/@sndbox/re-paulthebeloved-philippine-laws- [-]
obligations-and-contracts-20180120t212123377z#@sndbox/re-paulthebeloved-philippine-laws-obligations-
and-contracts-20180120t212123377z)
Hello, your post was nominated for an upvote by a fellow within the Sndbox incubator. Thank you for sharing
your law experience and understanding @paulthebeloved (/@paulthebeloved)! Steem on.
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paulthebeloved (52) (/@paulthebeloved) 5 years ago (/philippines/@sndbox/re- [-]
paulthebeloved-philippine-laws-obligations-and-contracts-
20180120t212123377z#@paulthebeloved/re-sndbox-re-paulthebeloved-philippine-laws-
obligations-and-contracts-20180121t064923675z)
I am deeply honored for such nomination. I will continue to steem on giving my best for a high quality
post. Thank you.
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