Topic Oblicon.ppt
- 2. OBLIGATION – juridical necessity to give, to do or not to do 4 ELEMENTS OF OBLIGATION 1. ACTIVE SUBJECT (creditor/obligee) – whose obligation is constituted 2. PASSIVE SUBJECT (debtor/obligor) – has duty to give, to do or not to do 3. OBJECT/PRESTATION – subject matter 4. JURIDICAL/LEGAL TIE (vinculum/efficient cause) – reason
- 3. Creditor’s rights if debtor fails to comply w/ the obligation 1. Determinate a. Performance b. Damages 2. Generic a. Performance b. Damages c. Obligation be complied at debtor’s expense
- 4. Creditor’s rights if debtor does in contravention 1. Damages 2. Ask it be UNDONE at debtor’s expense
- 5. • • FORTUITOUS EVENT – cannot be foreseen, if foreseen, inevitable • General Rule: No person liable to fortuitous event. • Exceptions: • 1. Law states • 2. Stipulation/contract states • 3. Assumption of risk • 4. Delay • 5. Debtor promises deliver to 2/more persons who do not have same interest (bad faith) • •
- 6. • EFFECTS OF FORTUITOUS EVENT to thing to be delivered • - extinguish the obligation if determinate; generic does not extinguish the obligation •
- 7. • CONCEPT OF DELAY • General Rule: No demand, No delay • Exceptions: • 1. Law states • 2. Obligation states • 3. Time is the essence • 4. Demand be useless if delay • 5. Debtor guilty of delay
- 8. • EFFECTS OF DELAY • 1. Damages • 2. When to deliver determinate thing, STILL LIABLE in fortuitous event. •
- 9. • 4 SUCCESSIVE RIGHTS OF CREDITOR to satisfy claim against DEBTOR • 1. Exact payment • 2. Attach debtor’s properties • 3. Accion subrogatoria – exercise rights & actions except inherent in person • 4. Accion pauliana – cancel acts/contracts by debtor to defraud creditor
- 10. • CONTRACT – meeting of minds between 2 persons to give something or to render service. • 3 ELEMENTS OF CONTRACT • 1. ESSENTIAL – w/o them, contract cannot exist • a. CONSENT of contracting parties • b. OBJECT CERTAIN – subject matter • c. CAUSE/CONSIDERATION • In some contracts, ff are also essential: • d. FORM • e. DELIVERY •
- 11. • 2. NATURAL – found in certain contract, presumed to exist unless stipulated • • 3. ACCIDENTAL – various particular stipulations that may be agreed upon by contracting parties
- 12. • CLASSIFICATION OF CONTRACTS • According to: • 1. PERFECTION/FORMATION • a. CONSENSUAL – perfected by mere consent • b. REAL – perfected by delivery • c. FORMAL/SOLEMN – special formalities are essential before perfection of contract • 2. PARTIES OBLIGATED • a. UNILATERAL – only 1 has obligation • b. BILATERAL – both parties require to render reciprocal prestations
- 13. • 3. CAUSE • a. ONEROUS – exchange of considerations • b. GRATUITOUS – no consideration received in exchange of what is given • c. REMUNERATORY – something is given for benefit/service that had been rendered previously • • 4. RISK OF FULFILLMENT • a. COMMUTATIVE – equivalent values are given by both parties • b. ALEATORY – fulfillment of contract depends on chance (eg. insurance)
- 14. • 5. IMPORTANCE • a. PRINCIPAL – contract may stand alone (eg. sale, partnership) • b. ACCESSORY – existence depends on another contract (pledge, guarantee) • c. PREPARATORY – contract not an end by itself but a means thru w/c other contracts may be made (eg. agency) • 6. NAME • a. NOMINATE – contract given a particular/special name (eg. partnership) • b. INNOMINATE – not given special name (eg. I give that you may give)
- 15. • • 7. SUBJECT MATTER • a. Contracts involving things • b. Contracts involving rights/credits • c. Contracts involving services
- 16. • 3 STAGES OF CONTRACT • 1. PREPARATION/CONCEPTION – preparatory steps to perfect contract • 2. PERFECTION/BIRTH – meeting of minds between 2 contracting parties • 3. CONSUMMATION/TERMINATION – terms of contract are performed, & contract is fully executed
- 17. • CONSENT • - meeting of offer (certain) & acceptance (absolute) upon a thing • • 5 REQUISITES OF CONSENT • 1. Must be given by 2 or more parties • 2. Parties are capacitate to enter in contract • 3. No vitiation of consent • 4. No conflict between declared & intended • 5. Legal formalities must be complied
- 18. • 3 persons who CANNOT GIVE CONSENT to a contract (if entered into, contract is voidable) • 1. UNEMANCIPATED MINORS • 2. INSANE/DEMENTED PERSONS (unless they acted DURING LUCID INTERVAL) • 3. DEAF-MUTES who DO NOT know how to write • DEMENTED PERSON – NOT exactly insane; difficult to distin-guish right from wrong • LUCID INTERVAL – period when an INSANE has acquired SANITY temporarily, therefore, capacitated to enter into a valid contract
- 19. FRAUD/DOLO - when through insidious words/machinations of one of the parties, INDUCED the other to enter into a contract, & w/o them, he will not agree. DOLO CAUSANTE DOLO INCIDENTE Serious Not serious cause induces party to ENTER into contract NOT the cause to enter into contract make contract voidable contract is valid; liable for damages
- 20. • 7 RULES OF FRAUD • 1. Failure to disclose facts when these needs to be revealed, is a fraud. • 2. Fraud should be SERIOUS (dolo causante) & SHOULD NOT be done by BOTH parties to make contract voidable. • 3. Incidental fraud (dolo incidente) ONLY obliges person to PAY DAMAGES. • 4. Usual exaggerations in trade, when other party know the “real” facts, is NOT FRAUD. • 5. A mere expression of opinion is NOT FRAUD UNLESS made by an expert & the other party relies on his special knowledge. • 6. Misrepresentation made in good faith is NOT FRAUD but may constitute an error. • 7. Misrepresentation by 3rd person DOES NOT vitiate consent UNLESS it created substantial mistake.
- 21. • 4 KINDS OF DEFECTIVE CONTRACTS • 1. RESCISSIBLE – valid until rescinded; has ALL essential requisites but because of injury/damage to one of the parties, the contract may be rescinded. • 2. VOIDABLE – valid until annulled; has ALL essential requisites but because of defect in consent, contract may be annulled. • 3. UNENFORCEABLE – cannot be sued/enforced unless ratified; no effect NOW but may take effect upon ratification. • 4. VOID – NO effect at all; cannot be ratified/validated.
- 22. • 3 VOIDABLE CONTRACTS • 1. One of the parties INCAPABLE of giving consent to a contract. • 2. Those where consent vitiates by vices of consent. (MFVIU) • 3. Those agreed in the state of drunkenness/hypnotic spell.
- 23. • 3 UNENFORCEABLE CONTRACTS • 1. Those entered in name of other person, or who acted BEYOND his powers. • 2. Those who do not comply w/ the Statute of Frauds. • 3. Both parties are incapable of giving consent to a contract.
- 24. • 7 VOID/INEXISTENT CONTRACTS • 1. Those w/c are ABSOLUTELY simulated/fictitious. • 2. Those w/c contemplate an impossible service. • 3. Those whose OBJECT is outside the commerce of man. • 4. Those whose CAUSE/OBJECT did not exist at time of tran-saction. • 5. Those whose CAUSE/OBJECT/PURPOSE is contrary to law, morals, good customs, public order, or public policy. • 6. Those where INTENTION of parties to principal object CANNOT be ascertained. • 7. Those expressly prohibited/declared VOID by law.
- 25. • 5 RESCISSIBLE CONTRACTS • 1. Those entered by guardians & suffered LESION by more than ¼ of value of the value that is the OBJECT. • 2. Those agreed upon in representation of absentees, if the absentees suffered LESION. • 3. Those undertaken in FRAUD of creditors when the creditors cannot further claim. • 4. If entered into contract w/o knowledge/approval of litigants under litigation. • 5. Contracts subjected to rescission declared by law. •
- 26. • LESION • - inadequacy of cause (eg. insufficient price for thing sold) • • RULES ON LESION • - Lesion DOES NOT invalidate contract, except there is: • a. Fraud • b. Mistake • c. Undue influence