Document Sample
ACTIVE LEARNING Powered By Docstoc
1.   Human Relations
2. Obligations and Contracts

Article 19. Every person must, in
 the exercise of his rights and in
 the performance of his duties,
 act with justice, give everyone
 his due, and observe honesty
 and good faith.
    When is abuse of RIGHTS
In order that an abuse of rights is
 actionable, the following
 elements must be present:
• The existence of a legal right or
• It is exercised in bad faith;
• The sole intent of prejudicing or
  injuring another.
Article 20. Every person who, contrary
 to law, willfully or negligently
 causes damage to another, shall
 indemnify the latter for the same.
Article 21. Any person who willfully
 causes loss or injury to another in a
 manner contrary to morals, good
 customs or public policy shall
 compensate the latter for the
      How do you distinguish
        Arts. 20 and 21?
Article 20 speaks of the general
 sanction for all other provisions of
 law which do not specifically
 provide for their own sanction
Article 21 deals with acts contra
 bonus mores, and has the following
 elements: An act is illegal; it is
 contrary to morals, good custom,
 public order, or public policy; and it
 is done with intent to injure.
Malice or bad faith is at the core
 of Articles 19, 20, and 21 of the
 NCC. Malice or bad faith implies
 a conscious and intentional
 design to do a wrongful act for a
 dishonest purpose or moral
   Is breach of promise to marry

In general, NO.

a. What are the possible rights of
   the aggrieved party?
   With Carnal Knowledge
   Without Carnal Knowledge
•   With Carnal Knowledge
    If it constitutes seduction – moral
    The act is contrary to morals, good
    customs, etc. – moral damages
    If pregnant – compensatory damages
    b. Without Carnal Knowledge
    If there is advanced money or
    property – moral damages and
    recovery of property

Article 22. Every person who
 through an act or performance
 by another, or any other means,
 acquires or comes into
 possession of something at the
 expense of the latter without
 just or legal ground, shall return
 the same to him.

Article 1156 (NCC)

An obligation is a juridical
 necessity to give, to do or
 not to do.

to give –consists in the
 delivery of a movable or an
 immovable thing in order to
 create a real right, or for the
 use of the recipient, or for
 possession or to return it to
 the order.

to do – to render work or
 services, mental or
 physical or merely to
 conclude a juridical
 operation such as
 promise to give a bond.

not to do – to abstain from
    some act
It includes not to give, both
 being negative obligations
Article 1423 (NCC)

Obligations are civil and
 natural. Civil obligations give
 a right of action to compel
 their performance.
Article 1423.
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, but after voluntary
 fulfillment by the obligor, they
 authorized the retention of what
 has been delivered or rendered by
 reason thereof. Some natural
 obligations are set forth in the
 following articles.
Distinction between Natural and
        Civil Obligations
Natural – derived their binding
 effect from equity and
 justice. It cannot be enforced
 in court.
Civil - derived their binding
 force from positive law. It
 can be enforced in court.
    Moral vs. Natural vs. Civil
Moral obligations –duties of
 conscience completely outside of
 the field of law; no juridical tie;
 absolutely acts of liberality
Natural obligations – not
 sanctioned by any action but have
 a relative juridical effects such as
 the right to retain what has been
 voluntarily paid by the debtor.
   Sources of Obligations

Article 1157 Obligations arise
    1. Law
    2. Contracts
    3. Quasi-contracts
    4. Acts or omissions
 punished by law and
    5. Quasi-delicts
Article 1158. Obligations derived
 from law are not presumed. Only
 those expressly determined in this
 Code or in special laws are
 demandable, and shall 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.
The rendering of medical assistance
 in case of illness is comprised
 among the mutual obligations to
 which spouses are bound by way of
 mutual support. This liability arises
 from the obligation which the law
 has expressly established between
 married couples.

Employer is not legally
 obliged to give assistance to
 its employee to provide him
 with a lawyer (Dela Cruz vs.
 Northern Theatrical)

Article 1159. Obligations
 arising from contracts have
 the force of law between the
 contracting parties and
 should be complied with in
 good faith.
• 1159 expresses the principle of
  autonomy of will
• 1159 presupposes valid and
  enforceable contracts (not contrary to
  law, morals etc.)
• the agreement of the party is the law
  between them and must be enforced
• on pre-contractual obligations
Can damages suffered by party
 during the period of negotiations
 be recovered, if the contract is not
 finally perfected?
• the offer must be clear and definite
• offer led the offeree in good faith to incur
  expenses in the expectation of the contract
• withdrawal of the offer is without legitimate
• if there is no fault or negligence and the
  withdrawal is with abuse of right – liability is
  based on Article 19.
 Extra-contractual obligations
Art. 2142. Certain lawful,
 voluntary, unilateral acts give
 rise to juridical relation of
 quasi-contract to the end
 that no one shall be unjustly
 enriched or benefited at the
 expense of another.
      Negotiorum Gestio

Art. 2144. Whoever voluntarily takes
 charge of the agency or
 management of the business or
 property of another, without any
 power from the latter, is obliged to
 continue the same until the
 termination of the affair and its
 incidents, or to require the person
 concerned to substitute him, if the
 owner is in a position to do so.
        Solution Indebiti

Art. 2154. 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.
       Other Quasi-contracts
• Article 2164 Stranger gives support without
  the knowledge of one legally obliged;
• Expenses for the treatment of a person
  injured in an accident or becomes ill and
  who cannot give consent;
• During calamities, properties are saved
  without consent;
• Agreement in a community to contribute to
  protect them from lawlessness etc;
• One who is restrained to pay the tax of
 Acts or omissions punished by law

Civil obligations arising from criminal
 offenses shall be governed by the
 penal laws.
 Acts or omissions punished by law
Article 100 (RPC). Every person
 criminally liable for a felony is also
 civilly liable.
Rationale: commission of a crime
 causes not only moral evil but also
 material damage. When criminal action
 is instituted, the civil action for the
 recovery of the civil liability arising
 from the offense charged is impliedly

Art. 2177. Whoever by act or
 omission causes damages to
 another, there being fault or
 negligence, if there is no pre-
 existing contractual relation
 between the parties, is called a
 quasi-delict and is governed by the
 provisions of this Chapter.

It is founded on equity also known as
  culpa aquiliana or culpa extra-

          2 kinds of negligence

i. culpa aquiliana
ii. culpa contractual – negligence in the
      performance of contracts
While trying to pass each other on a narrow
 bridge, a passenger truck and a private
 automobile collided, and the plaintiff, a
 passenger in the truck, was injured. The
 owner of the passenger truck was made a
 defendant, although a chauffer was driving
 the truck, and the owner of the private car
 was also made a defendant, although he
 was not in the car, which was being driven
 by his 18-year old son and in which
 members of his family were then riding.
The court found both drivers negligent,
 basing his liab. of the owner of the truck
 to the plaintiff on the contract of
 carriage; while the liab. of the owner of
 the private car was based on Art. 2180
 of the Civil Code. As against the owner
 of the truck, there was culpa contractual
 and as against the owner of the
 automobile, there was culpa acquiliana.
            Case Analysis
1. A 15-year old high school student
 stabs his classmate who is his rival
 for a girl while they were going out
 of the classroom after their last
 A. Is the school still held liable for
 the injury?
B. Assuming that the school is
 responsible for the action of the
 high school student, what will be
              Case Analysis
2. If during class hours, while the
  teacher was chatting with other
  teachers in the school corridor, a 7 –
  year old male pupil stabs the eye of
  another boy with a ballpen during a
  fight, causing permanent blindness to
  the victim, who could be liable for
  damages for the boy’s injury
A. Teacher
B. The school authorities
C. The guilty boy’s parents
D. All of the above
       Case Analysis

3. Would the school
 authority be liable for
 any accident that
 happens to its students
 in the school bus or
 because of traffic
 accidents to and from
 the school?
       Case Analysis

4. Suppose during a class a
 student leaves without
 the teacher’s permission.
 Then he meets an
 accident outside the
 school campus. Is the
 teacher still liable?

Joint obligation – is one in
which each of the debtors is
liable only for a proportionate
part of the debt, and each of
the creditor is entitled only to
a proportionate part of the

Terms which indicate joint
  mancomunada simple or
pro rate
“We promise to pay” used by
  two or more signers

Solidary obligation – one in
which each debtor is liable
for the entire obligation,
and each creditor is entitled
to demand the whole
Terms which indicate solidary
mancomunada solidaria, joint and
several, in solidum, juntos o
separadamente,       “I promise to
pay” followed by signatures of two
or more persons
“Individually and collectively”
“Individually liable”
“Individually and jointly liable”
            Case Analysis
6. Four Korean medical students
rented the apartment of ABC
University for a period of one year.
After one semester, three of them
returned to their home country and
the fourth transferred to a boarding
house. The University discovered that
they left unpaid telephone bills in the
total amount of Php 80, 000. The
University demanded that the fourth
student pay the entire amount of the
unpaid telephone bills.
         Case Analysis

A. Is the claim of the
    University correct?
B. In what instance can the
    University validly demand
    from the fourth student to
    pay the whole amount of
    the unpaid telephone bills?
      Case Analysis

8. Distinguish a pure
    obligation from a
    conditional obligation.
    Pure Obligations

Art. 1179. Every obligation
 whose performance does not
 depend a future or uncertain
 event, or upon a past event
 unknown to the parties, is
 demandable at once.
        Pure Obligations
• It contains no term or
• It is immediately
• The immediate
  demandability of a pure
  obligation should not lead to
  absurd interpretations or
  requirements impossible of
  instantaneous compliance.
      Conditional obligations

A conditional obligation is one which
 is subject to a condition.

A future and uncertain event upon which
  an obligation is made to depend
futurity and uncertainty must concur as
  characteristics of the event.
     Classifications of Conditions
 Suspensive vs. Resolutory (Article 1181)
Suspensive Condition (also called
  condition precedent/antecedent) – the
  happening of which gives rise to an
When the consent of a party is given
  subject to the fulfillment of a
  suspensive condition, the contract is not
  yet perfected unless the condition is
  first complied with.
     Classifications of Conditions
Resolutory Condition (also called
  condition subsequent – the happening
  of which extinguishes rights already
If the right to rescind a contract is given
  to one of the parties within a certain
  period after the happening of a
  condition, the right of rescission cannot
  be exercised if the condition does not

Article 1305. 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.
     Distinguish an ordinary

a. From a contract of marriage;
b. From an obligation
     Distinguish an ordinary

a. In an ordinary contract, the
 parties may be 2 or more
 persons of the same or of
 different sexes, whereas….
     Distinguish an ordinary

a. In an ordinary contract,
 consequences and incidents
 are governed primarily by the
 agreement of the parties,
     Distinguish an ordinary

a. In an ordinary contract,
 once executed, the result is
 contract, whereas….
     Distinguish an ordinary

a. In an ordinary contract, it
 can be terminated or
 dissolved by the mere
 agreement of the parties,
     Distinguish an ordinary

b. One is the cause and the
 other is the effect;

There can be an obligation
 w/o a contract, but…
       Kinds of Contract

1. Nominate
    Contract of Sale
    Contract of lease
    Contract of mortgage
        Kinds of Contract

2. Innominate
    Do ut des
    Do ut facias
    Facio ut des
    Facio ut facias
         Case Analysis

5. Is it a valid contract of sale
 when a high school principal
 sells a computer unit owned
 by the school? What are the
 elements of a valid contract?
1.Consent of the contracting
2.Object certain which is the
   subject matter of the
3.Cause of the obligation which
   is established.
 When are contracts perfected?

In general, contracts are
 perfected from the moment
 that there is a manifestation
 of the concurrence between
 the offer and the acceptance
 with respect to the object and
 the cause which shall
 constitute the contract.
             Case Analysis
XYZ College offered to sell its car to
 its teacher for Php 150, 000. After
 inspecting the car, the teacher
 offered to buy it for Php 150, 000.
 This offer was accepted by XYZ
 College. The next day, XYZ
 College offered to deliver the car
 but the teacher being short of
 funds, secured a postponement of
 the delivery, promising to pay the
            Case Analysis
College the price “upon receipt of
 his loan”. The loan however was
 not approved.

a. Is there a perfected contract in
 this case?
b. Is the promise to pay made by
 the teacher conditional or with a
           Case Analysis
7. What are the legal effects of:

A. Contract to Sell, on the one
 hand, and a Contract of Sale,
 on the other hand?
B. Conditional Sale, on the one
 hand, and an Absolute Sale,
 on the other hand?
   What are the different classes of

1.Rescissible contracts;
2.Voidable contracts;
3.Unenforceable contracts; and
4.Void and inexistent contracts
       Rescissible contracts
Rescission is a remedy granted by
 law to the contracting parties, and
 even to third persons, to secure
 the reparation of damages caused
 to them by a contract, even if the
 same should be valid, by means of
 the restoration of things to their
 condition prior to the celebration
 of the contract.
          What are VOIDABLE
Voidable contracts are those in
 which all of the essential elements
 for validity are present, but the
 element of consent is vitiated
 either by lack of legal capacity of
 one of the contracting parties, or
 by mistakes, violence, intimidation,
 undue influence or fraud.
    What are VOID or INEXISTENT
1.Those whose cause, object or
 purpose is contrary to law, morals,
 good customs, public policy or
 public order;
2.Those which are absolutely
 simulated or fictitious;
3.Those whose cause or object did
 not exist at the time of the
     Unenforceable Contracts

Unenforceable contracts are those
 which cannot be enforced by a proper
 action in court, unless they are
 ratified, because either they are
 entered into without or in excess of
 authority or they do not comply with
 the Statute of Frauds or both of the
 contracting parties do not possess the
 required legal capacity.
   What are VOID or INEXISTENT
4. Those whose object is outside
 the commerce of men;
5. Those which contemplate an
 impossible service;
6. Those where the intention of the
 parties relative to the principal
 object of the contract cannot be