This paper. By Standard Form Contract … NO examples or woder understandings for each article. Obligations and Contracts Notes.pdf - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Obligations and Contracts Notes - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. File: 03 Commercial contract Law-Explanatory notes June 30 (1).doc Explanatory notes to the Law of commercial contracts of April 2001 1 ... general rules of the law of obligation and contract in so far as these general rules have not been modified by the Law of commercial contracts (see article 3 of the Law). sample decks: formation of the agency relationship & liability of principal for contracts entered into by agents, duties of the agent and the principal to each other & liability of principal for torts of agent (respondeat superior or vicarious liability), formation of a general partnership & management and operation of a general partnership: & financial rights and obligations Business law obligation and contract refers to what is legally required of each of the parties involved in a contractual agreement. 1161. Business Law. In obligations to render service, the value thereof shall be the basis for damages. Popular books. ( Log Out /  CONDONATION/REMISSION OF THE DEBT – gratuitous abandonment of debt; right to claim; donation; rules of donation applies; express or implied, c. Tacit – voluntary destruction of instrument by creditor; made to prescribe w/o demanding, 5. m fdx Notes, Obligations and Contracts for Baccalaureate Course. (10)        With penal clause – an accessory undertaking to assume greater liability in case of breach; (a)  Payor – the one performing, he can be the debtor himself or his heirs or assigns or his agent, or anyone interested in the fulfillment of the obligation; can be anyone as long as it is with the creditor’s consent, (b)  3RD person pays/performs – only the creditor’s consent; If performance is done also with debtor’s consent – he takes the place of the debtor. 1. ( Log Out /  2011 This contains only the articles. b. UST Golden Notes in Obligations and Contract 2011. If you continue browsing the site, you agree to the use of cookies on this website. (1091a) Art. Compensation Administration Class for February 23, 2013, Obligations and Contracts Class for February 23, 2013, Obligations and Contracts Class Assignment for this Saturday 2.9.2013, Finished Checking: CompenBen Mid Term Exams :), Compensation Administration for the Baccalaureate Course, Obligations and Contracts for the Baccalaureate Course, Can only be demanded if obligation is not very personal, Undo the things already done at debtor’s expense. Art. Study Unit 4: The obligations of the lessor 14. Domingo, Dennimar O. all other docs where amount involved is in excess of 500 ( must be written even private docs ), mutual: instrument includes something w/c should not be there or omit what should be there, causes failure of instrument to express true intention, other either acted fraudulently or inequitably or knew but concealed, party in good faith may ask for reformation, true intention not expressed in instrument, estoppel; when party has brought suit to enforce it, Plaintiff must be able to return whatever he may be obliged to return due to rescission, The things must not have been passed to 3, It must be made within the prescribed period, Things w/c are the objects of the contract & their fruits, May be assailed or attacked only in an action for that purpose, Can be assailed only by the party whose consent was defective or his heirs or assigns, Refers to the subject of the thing which is the object of the contract, Refers to the principal conditions in an agreement, Error as to person – when it is the principal consideration of the contract, Error as to legal effect – when mistake is mutual and frustrates the real purpose of parties, Obligation to give – mutual restitution. Remedies of Person in fraud under obligations are: b)    Diligence required – per nature of obligation, circumstances of persons, time and place, b)     simple – may be excused in certain cases, Mora accepiendi – default on part of creditor; Creditor is guilty of default when he unjustifiably refuses to accept payment or performance at the time payment/performance can be done, (1)  responsibility of debtor is reduced to fraud and gross negligence, (2)  debtor is exempted from risk of loss of thing / creditor bears risk of loss, (3)  expenses by debtor for preservation of thing after delay is chargeable to creditor, (4)  if obligation bears interest, debtor does not have to pay from time of delay, (6)  debtor may relieve himself of obligation by consigning the thing, Compensatio morae – both parties are in default (in reciprocal obligations); the effect: is as if there is no default, a)    when expressly declared by law ( bad faith, subject matter is generic, debtor is in delay ), b)    when expressly declared by stipulation or contract, c)    when nature of obligation requires assumption of risk. What civil liability arising from a crime includes: a)    There must be fault or negligence attributable to the person charged, c)    There must be a direct relation of cause and effect between the fault or negligence on the one hand and the damage or injury on the other hand ( proximate cause ), a)    when there is no term/condition – from the perfection of the contract, b)    when there is a term/condition – from the moment the term or condition arises, a)    Conditional – from the moment the condition happens, b)    With a term/period – upon the expiration of the term/period, c)    Simple – from the perfection of the contract. Natural Elements (Art. Note: Ang Yu v. CA (1994) states that a unilateral promise to buy or sell, if not supported by a distinct consideration, may be withdrawn but may not be done whimsically or arbitrarily; the right of the grantee here is damages and not specific performance; Equatorial v. Mayfair(264 SCRA 483) held that an option clause in order to be valid and enforceable must indicate the definite price at which the person granting the option is willing to sell, contract can be enforced and not only damages; Paranaque Kings V CA (1997) states that right of first refusal may be enforced by specific performance. To constitute undue influence, ff circumstances must be considered: (1) confidential, family, spiritual, & other relations of parties; or (2) the aggrieved party is suffering from mental weakness; or (3) ignorant; or (4) in … relative – there is intention to be bound but concealed; concealed contract binds: Informal – may be entered into whatever form as long as there is consent, object & cause, Formal – required by law to be in certain specified form such as: donation of real property, stipulation to pay interest, transfer of large cattle, sale of land thru agent, contract of antichresis, contract of partnership, registration of chattel mortgage, donation of personal prop in excess of 5,000, Real – creation of real rights over immovable prop – must be written, Law requires contract to be in some form for validity – donation & acceptance of real property, Law requires contract to be in some form to be enforceable – Statute of Frauds; contract is valid but right to enforce cannot be exercised; need ratification to be enforceable, Law requires contract to be in some form for convenience – contract is valid & enforceable, needed only to bind 3, contracts w/c object is creation, transmission or reformation of real rights over immovables, cession, repudiation, renunciation of hereditary rights/CPG. selections, but these notes came from different sources, from different authors of books, pamphlets, reviewers, codal provisions,etc. Book IV Obligations and Contracts Alternative – bound by different prestations but only one is due, Right of choice: General rule: right of choice belongs to debtor, (1)   If only 1 is left either because of fortuitous events or due to debtor’s acts, perform what is left. Resolutory – happening of condition extinguishes obligation, iii. Of pledge – condoned; presumption only, rebuttable, 2. needs consent of creditor– express or implied, 3.  2 obligations; 1 is extinguished & new one created, VOIDABLE – party must prove that cause is untruthful; presumption of validity but rebuttable, PRESUMED TO EXIST – burden of proof is on the person assailing its existence. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. … OBLIGATIONS AND CONTRACTS TITLE 1 - OBLIGATION. REX Book Store Inc. REX Knowledge Center, 109 Sen M Cuenco Sr, Quezon City, 1114 Metro Manila, PH – from the time the obligation to deliver arises, if determinate thing – debtor bears risk of loss (even when there is fortuitous event), Causante ( causal ) – makes contract voidable, incidente – ( incidental ) – fraud in performance of obligation; does not affect validity of obligations, insist on specific performance (art 1233), The cause of the breach of the obligation must be independent of the will of the debtor, The event must be either unforeseeable or unavoidable, The event must be such as to render it impossible for the debtor to fulfill his obligation in a normal manner, The debtor must be free from any participation in, or aggravation of injury to the creditor, General Rule – no liability for fortuitous event, Exact performance – specific, substitute, equivalent, Attach and execute debtor’s property which is not exempt (art 2236), Creditor must have right of return against debtor, There is a failure of the debtor to collect his own debt from 3, The right of account is not purely personal, The debtor has performed an act subsequent to the contract, giving advantage to other persons, The creditor is prejudiced by the debtor’s act which are in favor of 3, Demandability – pure, conditional or with a term, Plurality of object – simple, alternative or facultative, Plurality of subject – simple, joint or solidary, Sanctions for breach – with or without a penal clause, no retroactivity with reference to fruits or interest & prescription, debtor – recovery of payment by mistake or even w/o mistake, There is an obligation to deliver a determinate thing, There is loss, deterioration or improvement before the happening of the condition, restore to each other what was received plus interest/fruits, insolvency of debtor, unless security provided, impaired security- thru fault or fortuitous event, violate undertaking in consideration of extension of period, Demand on one produces delay only with respect to the debt, Interruption in payment by one does not benefit or prejudice the other, Vices of one debtor to creditor has no effect on the others, Insolvency of one debtor does not affect other debtors, Death of 1 solidary creditor transmits share to heirs (but collectively), Each creditor represents the other in the act of recovery of payment, Credit is divided equally between creditors as among themselves, Debtor may pay any of the solidary creditors, Each debtor may be requested to pay whole obligation with right to recover from co-debtors, Interruption of prescription to one creditor affects all, Interest from delay on 1 debtor is borne by all, legal provisions regrading obligation of devisees and legatees, liability of principals, accomplices, and accessories of a felony, payment made before debt is due, no interest can be charged, otherwise – interest can be charged, insolvency of one – others are liable for share pro-rata, if different terms & conditions – collect only what is due, later on collect from any, remission made after payment is made – co-debtor still entitled to reimbursement, effect of insolvency or death of co-debtor – still liable for whole amount, fault of any debtor – every one is responsible – price, damage & interest, complete/ personal defense – total or partial ( up to amount of share only ) if not personal to him, if with fault – there is liability (also for damage and interest), loss due to fortuitous event after default – there is liability (because of default), nature of obligation – susceptible of partial fulfillment, Subsidiary – As a general rule, only penalty can be demanded, principal cannot be demanded, except: Penalty is joint or cumulative. If you continue browsing the site, you agree to the use of cookies on this website. NOVATION – extinguishment of obligation by creating/ substituting a new one in its place, –          stipulation to contrary, –          stipulation pour autri unless beneficiary consents, –          modificatory novation only; obliged to w/c is less onerous, –          old obligation is void, –          new obligation is void or voidable but annulled already ( except: intention of parties ), –          if Resolutory & it occurred –old obligation already extinguished; no new obligation since nothing to novate, –          if suspensive & it never occurred –as if no obligation; also nothing to novate, –          if suspensive & did not materialize: old obligation is enforced, EXPROMISION; initiative is from 3rd person or new debtor; new debtor & creditor to consent; old debtor released from obligation; subject to full reimbursement & subrogation if made w/ consent of old debtor; if w/o consent or against will , only beneficial reimbursement; if new debtor is insolvent, not responsible since w/o his consent, DELEGACION; initiative of old debtor; all parties to consent; full reimbursement; if insolvent new debtor – not responsible old debtor because obligation extinguished by valid novation unless: insolvency already existing & of public knowledge or know to him at time of delegacion, (1)  Parties must have clearly and deliberately conferred a favor upon a 3rd person, (2)  The stipulation in favor of a 3rd person should be a part of, not the whole contract, (3)  That the favorable stipulation should not be conditioned or compensated by any kind of obligation whatsoever, (4)  Neither of the contracting parties bears the legal representation or authorization of 3rd party, (5)  The third person communicates his acceptance before revocation by the original parties, (2)  Knowledge of the contract by a 3rd person, As to importance or dependence of one upon another, a)    Do ut des – I give that you may give, b)    Do ut facias – I give that you may do, c)    Facio ut des – I do that you may give, d)    Facio ut facias – I do that you may do, Note: We follow the theory of cognition and not the theory of manifestation. Contracts entered into by persons exercising fiduciary capacity, (a)  Entered into by guardian whenever ward suffers damage by more than 1/4 of value of object, (b)  Agreed upon in representation of absentees, if absentee suffers lesion by more than ¼ of value of property, (c)  Contracts where rescission is based on fraud committed on creditor (accion pauliana), (d)  Objects of litigation; contract entered into by defendant w/o knowledge or approval of litigants or judicial authority, (e)  Payment by an insolvent – on debts w/c are not yet due; prejudices claim of others, (f)   Provided for by law – art 1526, 1534, 1538, 1539, 1542, 1556, 1560, 1567 and 1659, ii.Under art 1382 – Payments made in a state of insolvency, b.   Plaintiff has no other means to obtain reparation, OBLIGATION CREATED BY THE RESCISSION OF THE CONTRACT: Mutual Restitution, (2)  insane unless acted in lucid interval, (3)  deaf mute who can’t read or write, (4)  persons specially disqualified: civil interdiction, (1)  mistake – false belief into something, (2)  violence – serious or irresistible force is employed to wrest consent, (3)  intimidation – one party is compelled by a reasonable & well-grounded fear of an imminent & grave danger upon person & property of himself, spouse, ascendants or descendants (moral coercion), (4)  undue influence – person takes improper advantage of his power over will of another depriving latter of reasonable freedom of choice, (5)  fraud – thru insidious words or machinations of contracting parties, other is induced to enter into contract w/o w/c he will not enter (dolo causante). PAYMENT MADE TO AN INCAPACITATED PERSON , VALID IF: PAYMENT TO A 3RD PARTY NOT AUTHORIZED, VALID IF PROVED & ONLY TO THE EXTENT OF BENEFIT; PRESUMED IF: PAYMENT MADE IN GOOD FAITH TO A PERSON IN POSSESSION. extinguishment of principal carries accessory, except: if old obligation has condition, must be compatible with the new obligation; if new is w/o condition – deemed attached to new, substituting person of debtor ( passive ), conventional- agreement & consent of all parties; clearly established. 37 Full PDFs related to this paper. DOES NOT INVALIDATE CONTRACT PER SEExceptions: 4 years from time defect of consent ceases, Contracts entered into by minors/incapacitated persons, CONTRACT DOES NOT CONSTITUTE CRIMINAL OFFENSE BUT IS ILLEGAL OR UNLAWFUL PER SE, Active subject ( obligee/creditor ) – the one in whose favor the obligation is constituted, Passive subject ( obligor/debtor ) – the one who has the duty of giving, doing or not doing, Object – prestation; the conduct which has to be observed by the debtor/obligor, Causa (causa debendi/causa obligationes) – why obligation exists, determinate or determinable – or else, void, Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code, Art 100, RPC – Every person criminally liable for a felony  is also civilly liable, Chapter 2, Preliminary title, on Human Relations ( Civil Code ), Title 18 of Book IV of the Civil Code – on damages, when acquittal is due to reasonable doubt – no civil liability, when acquittal is due to exempting circumstances – there is civil liability, when there is preponderance of evidence – there is civil liability, Obligation to give – obligation to deliver the thing agreed upon, Obligation to do/not to do – obligation to do/not to do the service agreed upon, standard of care: that of a good father of a family – unless the law or stipulation requires another standard of care, When does the right begin to exist : from the time to deliver arises, Accessories – those joined to or included with the principal for the latter’s better use, perfection or enjoyment, Accessions – additions to or improvements upon a thing, When does right to fruits arise? Submitted by: Exception: No recovery can be had in cases where nullity of contract arose from illegality of contract where parties are in pari delicto; except: Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. (1091a) Art. If there is performance in either part and there is acceptance of performance, it takes it out of unenforceable contracts; also estoppel sets in by accepting performance, the defect is waived, It produces no effect whatsoever either against or in favor of anyone, There is no action for annulment necessary as such is ipso jure. A judicial declaration to that effect is merely a declaration, It cannot be confirmed, ratified or cured, If performed, restoration is in order, except if pari delicto will apply, The right to set up the defense of nullity cannot be waived, Anyone may invoke the nullity of the contract whenever its juridical effects are asserted against him, No action for restitution on either side.  The law will leave you where you are, Thing/price to be confiscated in favor of government, Innocent party is entitled to restitution, Guilty party is not entitled to restitution, Instrument of crime will be confiscated in favor of govt, If purpose has not yet been accomplished & If damage has not been caused to any 3, Where laws are issued to protect certain sectors: consumer protection, labor, usury law, If one party is incapacitated, courts may allow recovery of money, property delivered by incapacitated person in the interest of justice; pari delicto cannot apply because an incapacitated person does not know what he is entering into; unable to understand the consequences of his own action, If agreement is not illegal per se but merely prohibited & prohibition is designated for the protection of the plaintiff – may recover what he has paid or delivered by virtue of public policy, incapacitated  – not obliged to return what he gave but may recover what he has given. Undue influence ANNULS obligation although it is DONE by 3 rd person not part of contract. 1350 - 1355) I. Definitions Define or give the meaning of … Obligations 1156 - 1162. When stipulation says “payable when able “ – it is with a period, remedy: b)    court shall fix period of payment when parties unable to agree, d)    art 1687, 2nd, 3rd, 4th sentence, (4). By Agreement and Contract 2. 1LECTURE NOTES ON LAW ON OBLIGATIONS AND CONTRACTSFORBSA1102SECTIONSBMA, BFA AND BGABYATTY. Waiver for future negligence may be allowed in certain cases:a)     gross – can never be excused in advance; against public  policy, w/ fault or at expense of obligor/ usufructuary, a)    Various things are due but the giving principally of one is sufficient, a) Only one thing is due but a substitute may be given to render payment/fulfillment easy, b)    If one of prestations is illegal, others may be valid but obligation remains, b) If principal obligations is void and there is no necessity of giving the substitute;  nullity of P carries with it nullity of S, c) If it is impossible to give all except one, the last one must still be given, c)    If it is impossible to give the principal, the substitute does not have to be given; if it is impossible to give the substitute, the principal must still be given, d)  Right to choose may be given either to debtor or creditor, d) The right of choice is given only to the debtor, b. accessory – principal still outstanding, c. accessory oblig. We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. The note is signed by A, B, and C. X indorsed the note to Y, Y to Z, and Z to A for merchandise Z bought from A. a. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. A short summary of this paper. 3. cause of the obligation which must be established (Art. Note: I do not claim ownership or copyright for the ff. BENJAMIN R. REONAL, COLLEGE OF BUSINESS ADMINISTRATIONUniversity of the East -ManilaGeneral ProvisionsArticle 1156 –An obligation is a juridical necessity to give, … Understand that failure to fulfill an obligation is a form of breach of contract by the lessor, and be able to identify the form of breach of contract and set out the relevant remedies available to the lessee Subsequently, in Braganza v Villa-Abrille, the dissent became the ruling. 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