Obligation and Contract

Topics: Law, Debt, Public law Pages: 11 (2232 words) Published: December 9, 2012

I. Introduction

A. Law
- from the Latin word “lex” which is derived from the verb “Ligare” meaning “to bind” - a rule of conduct, just and obligatory promulgated by legitimate authority for the common observance and benefit (as defined by Sanchez Roman, a Spanish Civilist)

B. Sources of Law
1. Legislative- Congress
2. Constitution- supreme law of the land
3. Administrative or Executive Orders, Regulations and Rulings- issued by administrative official under legislative authority 4. Judicial Decisions or Jurisprudence
5. Custom- habits and practices which through a long and uninterrupted usage have become acknowledged and approved by society as binding rule of conduct 6. Other sources- principle of justice and equity, decisions of foreign tribunals, opinions of textwriters and even religion

C. Classification of Laws
1. Divine Law- promulgated by God, revealed or divulged to mankind by means of direct revelation eg: Ten Commandments
2. Natural Law- promulgated impliedly by conscience and body eg: it is better to do good than to do evil
3. Physical Law- the act of rules governing the action and movement of things eg: law of gravity by Newton

D. Human Law
- promulgated by man to regulate human relations
- can either be General (Public Law) or Individual (Private Law)

E. General or Public Law- governs the relationship between the State and its inhabitants 1. International Law- governs the relations of nations with each other 2. Constitutional Law- governs the relation between the State and its citizen 3. Administrative Law- fixes the organization and determines the competence of the authorities that execute the law 4. Political Law- organization and operation of the governmental organs of the State 5. Criminal Law- defines crimes and provides for its punishments

F. Individual or Private Law- governs the private relation of persons 1. Civil Law- regulates the relation of individuals with other individual for purely private ends 2. Commercial (business) Law- governs the relation of persons engaged in commerce, trade or mercantile pursuits 3. Procedural Law- prescribes the method of enforcing rights or obtaining redress for their violation

G. Sources of Philippine Civil Code
1. The New Civil Code of the Philippines
2. Special laws or statutes, Presidential Decrees and other social legislation 3. Jurisprudence
4. Customs and Traditions
5. The Code Commission- composed of 5 members created by Pres. Manuel Roxas through Executive Order No. 48 on March 20, 1947. The Civil Code was finished on December 15, 1947 and Congress approved the draft on June 1949.

II. General Provision on Obligation

A. Obligation- is a juridical necessity to give, to do or not to do

1. Active subject (obligee/creditor) - the one in whose favor the obligation is constituted 2. Passive subject (obligor/debtor) - the one who has the duty of giving, doing or not doing 3. Object- prestation; the conduct which has to be observed by the debtor/obligor 4. Vinculum Juris - juridical/ legal tie

Requisites of Object:
a. licit - if illicit, it is void
b. possible - if impossible, it is void
c. determinate or determinable - or else, void
d. pecuniary value
B. Sources of Obligation

1. Law- must be expressly or impliedly set forth and cannot be presumed

2. Contract- must be complied with in good faith because it is the “law” between parties; neither party may unilaterally evade his obligation in the contract, unless: a) contract authorizes it

b) other party assents

Parties may freely enter into any stipulations, provided they are not contrary to law, morals, good customs, public order or public policy

3. Quasi-contract- that...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Obligations and Contracts Essay
  • Obligation and Contracts Essay
  • Obligations and Contracts Essay
  • Obligations and Contracts Essay
  • Essay about Contracts
  • Obligations-and-Contracts Philippine Reviewer Essay
  • Law on Obligation and Contracts Essay

Become a StudyMode Member

Sign Up - It's Free