Handout 4

Question 1

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

Answer 1

Article 1156.

Question 2

the debtor is obliged to deliver the movable or immovable thing to the creditor. An example is the obligation to deliver the thing in sale, deposit, or donation.

Answer 2

obligation to give

Question 3

All kinds of works or services, whether physical or mental is covered by the

Answer 3

obligation to do

Question 4

means refraining from doing some acts like the obligations of a building proprietor to refrain from committing nuisance through noise or offensive odor, smoke, and heat.

Answer 4

obligation not to do

Question 5

It is the one who is demanding the performance of the obligation. He is also called the creditor or obligee.

Answer 5

Active subject

Question 6

It is the one bound to perform the prestation to give, to do or not to do. He is also called the debtor or obligor.

Answer 6

Passive subject

Question 7

It is the subject matter of the obligation which has an economic value or susceptible ot pecuniary substitution in case o noncompliance.

Answer 7

Object or prestation

Question 8

It is the vinculum that binds the contracting parties (e.g., sales contract; service contract).

Answer 8

Juridical or legal tie

Question 9

there is an intent to evade the normal fulfillment of the obligation and to cause damage.

Answer 9

Fraud.

Question 10

the lack of diligence, or carelessness.

Answer 10

Negligence.

Question 11

As a general rule, those obliged to deliver or to do something incur in delay from the time the stipulated period for the fulfillment of the obligation has lapsed, and the obligee judicially or extrajudicially demands the fulfillment of their obligation.

Answer 11

Delay

Question 12

enumerates the sources of obligation, namely: law; contracts; quasi-contracts; delicts or acts or of omissions punishable by law; and quasi-delicts.

Answer 12

Article 1157

Question 13

The obligation of a party to fulfill an obligation arises from the law itself. An example of this is the taxpayer’s duty to pay taxes.

Answer 13

Law

Question 14

This is the duty of the party to fulfill his undertaking in a contract. An example of this is the duty of the party to pay for the excess number of persons attending a catering event as stipulated in the contract.

Answer 14

Contracts

Question 15

It refers to a lawful, voluntary, and unilateral act based on the maxim that no one shall enrich himself at the expense of another.

Answer 15

Quasi-contracts

Question 16

It refers to obligations arising from crimes, which are governed by the provisions of the Revised Penal Code (i.e., restitution, reparation of the damage caused, indemnification of consequential damages; and by the provisions of the Civil Code on damages (i.e., moral, exemplary, and nominal damages). An example of this is the duty of the culprit to pay actual damages for causing the death of a person.

Answer 16

Delicts

Question 17

is any act or omission which causes damage to another, there being fault or negligence, and there being no preexisting contractual relationship between the parties.

Answer 17

Quasi-delicts

Question 18

provides that every person with an obligation to give something is also obliged to take care of it with the proper diligence of a good father of a family unless the law or the stipulation of the parties requires another standard of care.

Answer 18

Article 1163

Question 19

Obligations are extinguished by payment or performance; loss of the thing due; condonation or remission of the debt; confusion or merger of the rights of the creditor and debtor; compensation; and
novation.

Answer 19

Article 1231

Question 20

In a restaurant, the obligation of the guest to the management who served him a sumptuous food shall be extinguished upon

Answer 20

payment

Question 21

An obligation arising from a contract may also be extinguished upon the

Answer 21

loss of the thing due, provided there is no fault or negligence on the part of the obligor

Question 22

explained the meaning of the term “loss.” It states that it is understood that the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is unknown or it cannot be recovered.”

Answer 22

Article 1189

Question 23

also known as force majeure, is a term that exempts an obligor from liability.
These are extraordinary events not foreseeable or avoidable, events that could not be foreseen, or which, though foreseen, were inevitable (Article 1174).

Answer 23

fortuitous event

Question 24

pertains to the act of liberty on the part of the creditor wherein s/he forgives or remits a debt. Even if the proprietor is indebted to his supplier of beef and chicken, the obligation shall be extinguished if the supplier will gratuitously give the amount in issue to the proprietor as an advance gift for the latter’s continuous patronage to its supplies.

Answer 24

Condonation or remission

Question 25

provides that the obligation is extinguished from the time the characters of creditor and debtor are merged in the same person.

Answer 25

Article 1275

Question 26

as means of extinguishing an obligation is the offsetting of the respective obligations of two persons who stand as principal creditors and debtors of each other, resulting in the extinguishment of their obligations to their concurrent amount.

Answer 26

Compensation

Question 27

pertains to the change or modification of an obligation by another, resulting in the extinguishment of an obligation.

Answer 27

Novation

Question 28

extinguishes obligations that are purely personal such as partnership and agency.

Answer 28

Death

Question 29

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.

Answer 29

Article 1305

Question 30

is defined as one in which almost all the provisions have been drafted by only one party, usually a corporation or insurance company.

Answer 30

contract of adhesion

Question 31

Its validity and performance cannot be left to the will of only one of the parties.

Answer 31

Mutuality of Contracts

Question 32

The parties are free to stipulate terms and provisions in a contract, as long as these are not contrary to law, morals, good customs, public order, and public policy.

Answer 32

Autonomy of Contracts

Question 33

Contracts are binding only upon the parties and their successors-in-interest.
Exception: Stipulation in favor of a third person as in a beneficiary of an insurance policy.

Answer 33

Relativity of Contracts

Question 34

Contracts are perfected by mere consent, and no form is prescribed by law for their validity. An exception to this are real contracts such as loan or deposit, and contracts covered by the Statute of Frauds.

Answer 34

Consensuality of Contracts.

Question 35

it constitutes the law as between the parties who are compelled to perform under the threat of being sued in the courts of law.

Answer 35

Obligatory Force of Contracts.

Question 36

It is the preliminary stage or process for the formation of the contract. It includes the bargaining of the subject of obligation and the consideration or cause.

Answer 36

Generation.

Question 37

It is the birth of the contract.

Answer 37

Perfection.

Question 38

It is the fulfillment of the purpose for which the contract was constituted.

Answer 38

Consummation

Question 39

are found in Articles 1380 to 1422 of the Civil Code.

Answer 39

Defective Contracts

Question 40

It is a valid contract because it contains all of the essential requisites prescribed by law, but is defective due to injury or damage to either

Answer 40

Rescissible Contract.

Question 41

It is a contract that is valid until annulled. 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 mistake, violence, intimidation, undue influence, or fraud.

Answer 41

Voidable Contract

Question 42

It is a contract that cannot be enforced by a proper action in court unless it is ratified, because they are either 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.

Answer 42

Unenforceable Contract.

Question 43

It is considered to be inexistent by operation of law, thus confers no right to any party.

Answer 43

Void Contract