OBLIGATION WITH A PENAL CLAUSE An obligation to which an accessory undertaking (penal clause/penalty) is attached for the purpose of insuring its performance by virtue of which the obligor is bound to pay a stipulated indemnity or perform a stipulated prestation in case of breach. concur: ii.    it falls under art 1241, par 1,2,3 – the benefit is total so, performance is total, (c)  anyone in possession of the credit – but will apply only if debt has not been previously garnished. Change ), You are commenting using your Google account. chapter general provisions article 1156. an obligation is juridical necessity to give, to do or not to do. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. See our Privacy Policy and User Agreement for details. 1. Contracts may be amended, terminated, cancelled or revoked only by mutual consent of the parties or on the grounds provided for in the law. 1160. 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 Law on obligations and contracts Guidance by Prof. Pio Sara Jagurin. (1303a) Art. Book IV Obligations and Contracts LL104 Law of Obligations (Contract Law Only) - 95 pages long - in-depth analysis of textbook materials (Contract Law (Palgrave Law Masters) 11th Edition) - 2:1 overall (64) - Compiled all the necessary information and cases for each topic for Contract Law; - Content: Introduction to Contract and Obligations, Agreement, … Instances where law imposes solidary obligation: d.   no reimbursement if payment is made after prescription or became illegal. … (1091a) Contract-meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. (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. Minors could not be estopped, DISQUALIFIED TO ENTER INTO CONTRACTS: ( contracts entered into are void ), a)    Within the commerce of man – either existing or in potency, b)    Licit or not contrary to law, good customs, d)    Determinate as to its kind or determinable w/o need to enter into a new contract, MOTIVE – purely private reason; illegality does not invalidate contract except when it predetermines purpose of contract; when merged into one, – contracts entered when ward suffers lesion of more than 25%, 1)    for validity (formal/solemn contracts), 2)    for enforceability (statute of frauds), General Rule: contract is valid & binding in whatever form provided that 3 essential requisites concur. Art. Change ), You are commenting using your Twitter account. 1160. Corporate Governance Vs. Corporate Social Responsibilities, No public clipboards found for this slide. b. 1350 - 1355) I. Definitions Define or give the meaning of … 3. REMEDIES OF CREDITORS – generally transmissible (except: law, stipulation, personal obligation): (1)  Pure – demandable at once, no term, no condition, (2)  Conditional – A condition is a future and an uncertain event  or a past event unknown to the parties, i. Suspensive – happening of condition gives rise to obligation, Rules on loss, impairment, improvement of the subject matter pending the happening of suspensive condition/ term, If it improved at the expense of the debtor, he shall have no other right than that granted to the usufructuary. 21. 1170, NCC, the phrase "in any manner contravene the tenor" of the obligation includes any illicit act which impairs the strict and faithful fulfillment of the obligation, or … (1091a) Contract- meeting of the minds between two persons whereby one binds himself, with respect to the other, to give something or to render some service. Art. ( Log Out /  By Standard Form Contract … PERSONS WHO CANNOT GIVE CONSENT TO A CONTRACT: Note: Dolus bonus (usual exaggerations in trade) are not in themselves fraudulent, Note: In the Sia Suan v Alcantara case, there is a strong dissent by J.Padilla to the effect that the minor cannot be estopped if he is too young to give consent; one that is too young to give consent is too young to be estopped. An obligation is a juridical necessity to give, to do or not to do. 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. Contract is defined as the agreement or the exchange of the promises between two or more than two parties (people) to do or not do something that is enforceable by the law which means creating some kind of legal obligations. warranty against eviction and warranty against hidden defects in a contract … 1159. FAILURE TO COMPLY WITH PERFORMANCE/REMEDIES: Mora solvendi – default on the part of the debtor; 2 kinds: (1)  Mora Solvendi Ex re – default in real obligations, (2)  Mora Solvendi Ex persona – default in personal obligations, (1)  The obligation must be due, enforceable and already liquidated or determinate in amount, (3)  There must be a demand, unless demand is not required, (3)  When designation of time of delivery or rendering the service was a controlling motive, (4)  When demand would be useless as when debtor has rendered it beyond his powers to perform. SUGGESTED AUTHOR FOR WIDER KNOWLEDGE. Set out the different obligations of the lessor 15. A contract means an agreement which is enforceable by law .An agreement consists of reciprocal between the two parties .In case of contract each party is legally bound by the promise made by him. By Agreement and Contract 2. – 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. Casual – dependent on chance or hazard, a)    Positive – extinguished if time expires or indubitable of condition to,                         happen, b)    Negative – effective from moment of time elapsed or evident it can’t,                          happen, (1)  To do – both the condition and the obligation are void, (2)  Not to do –disregard the condition, the obligation is still valid, Impossible condition – physically not feasible, Illegal condition – prohibited by law, good custom, public policy and morals, (3)  With a period – future & certain, past & uncertain, payable when able. Obligations and Contracts Notes - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. UST Golden Notes in Obligations and Contract 2011. (1091a) Art. This is not for sale and this is for classroom discussion use purposes … 1399. There is deliberate intention to cause damage. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. Chapter 2: Essential Requisites of Contracts GENERAL PROVISIONS Section 3 - Cause of Contracts (Arts. Art. (1091a) Art. Obligations and Contract As to perfection and -Pure extinguishment-conditional-with term or period faith. COMPENSATION – Set off; it is a mode of extinguishment to the concurrent amount the obligation of persons who are in their own right reciprocally debtors or creditors, –          not all requisites are present, –          depositum; commodatum; criminal offense; claim for future support; taxes, Effect of assignment of credit to 3rd person; can there still be compensation, a. if made after compensation took place – no effect; compensation already perfected, b. if  made before compensation took place – depends, 7. Types of Contract. Subsequently, in Braganza v Villa-Abrille, the dissent became the ruling. Download Full PDF Package. 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. OBLIGATIONS AND CONTRACTS TITLE 1 - OBLIGATION. (n) CHAPTER 1. Pio Sara Jagurin. (n) Art. –          ex: public documents needed for the ff: REFORMATION OF CONTRACTS – remedy to conform to real intention of parties due to mistake, fraud, inequitable conduct, accident, d.   others specified by law – to avoid frustration of true intent, Note: prescribes in 10 years from date of execution of instrument, i. When the defect of the contract consists in the incapacity of one of the parties, the incapacitated person is not obliged to make any restitution except insofar as he has been benefited by the thing or price received by him. 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