Law on Obligation and Contracts

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Law on Obligation and Contracts by Mind Map: Law on Obligation and Contracts

1. the body of rules which deals with the nature and sources of obligations and the rights and duties arising from agreements and the particular contracts

1.1. Title I- OBLIGATIONS

1.1.1. Definition

1.1.1.1. derived from Latin word "obligatio" which means tying or binding

1.1.1.2. Judicial Necessity

1.1.2. Essential Requisites

1.1.2.1. Passive Subject ( debtor or obligor)

1.1.2.2. Active Subject (creditor or obligee)

1.1.2.3. Object or prestation (subject matter of the obligation)

1.1.2.4. Juridical or Legal tie (efficient cause)

1.1.3. Forms of Obligation

1.1.3.1. Oral

1.1.3.2. Writing

1.1.3.3. Partly Oral

1.1.3.4. Partly in Writing

1.1.4. Kinds of obligation according to subject matter

1.1.4.1. Real Obligation (obligation to give)

1.1.4.1.1. Determinate or specific- object is particularly designated or physically segregated from all other things of the same class

1.1.4.1.2. Generic- object is designated by its class or genus

1.1.4.1.3. Limited Generic- generic objects confined to a particular class

1.1.4.2. Personal Obligation (obligation to do or not to do)

1.1.4.2.1. Positive- obligation to do

1.1.4.2.2. Negative- obligation not to do

1.1.5. Sources of Obligation

1.1.5.1. Law

1.1.5.1.1. Imposed by law itself

1.1.5.1.2. Must be expressly or impliedly set forth and cannot be presumed

1.1.5.2. Contracts

1.1.5.2.1. when they arise from the stipulation of the parties

1.1.5.2.2. Must be complied in good faith

1.1.5.2.3. Neither party may unilaterally evade his obligation in the contract

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

1.1.5.3. Quasi- contracts

1.1.5.3.1. when they arise from lawful, voluntary and unilateral acts which are enforceable

1.1.5.3.2. Juridical relation resulting from lawful, voluntary, and unilateral acts, which is for its purpose, the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another.

1.1.5.3.3. Distinguished from other sources

1.1.5.3.4. Kinds of Quasi Contract

1.1.5.4. Crimes or acts or omissions punished by law

1.1.5.4.1. when they arise from civil liability which is the consequence of a criminal offense

1.1.5.4.2. Delicts (Obligation Ex Maleficio or Ex Delicto)

1.1.5.5. Quasi delicts or torts

1.1.5.5.1. when they arise from damaged cause to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties

1.1.5.5.2. Quasi-Delict/ Torts (Obligation Ex Quasi-Delicto or Ex Quasi Maleficio)

1.1.6. Source of Obligation classifications

1.1.6.1. Those emanating from law

1.1.6.2. Those emanating from private acts

1.1.6.2.1. Those arising from licit acts, in the case of contracts and quasi-contracts

1.1.6.2.2. those arising from illicit acts

1.1.7. Effects of Obligations

1.1.7.1. Duties of Debtor in an Obligation to Give a Determinate Thing

1.1.7.1.1. To preserve or take care of the thing due with the diligence of a good father of a family

1.1.7.1.2. To deliver the fruits of the thing: Right to the fruits of the thing from the time the obligation to deliver it arises

1.1.7.1.3. To deliver its accessions and accessories

1.1.7.1.4. To deliver the thing itself

1.1.7.1.5. To pay damages

1.1.7.2. Duties of Debtor in an Obligation to Give A Generic Thing

1.1.7.2.1. To deliver the thing which is neither of superior nor of inferior quality

1.1.7.2.2. To pay damages in case of breach of the obligation by reason of delay, fraud, negligence, or contravention of the tenor of the obligation.

1.1.7.3. Remedies of the Creditor in Case of Non-Performance

1.1.7.3.1. Specific Performance: Performance by the debtor of the prestation itself

1.1.7.3.2. Substitute Performance: someone else performs or something else is performed at the expense of debtor

1.1.7.3.3. Equivalent Performance: damages

1.1.8. Breach of Obligations

1.1.8.1. Voluntary (debtor is liable for damages)

1.1.8.1.1. fraud

1.1.8.1.2. negligence

1.1.8.1.3. delay

1.1.8.1.4. contravention of the tenor of the obligation

1.1.8.2. Involuntary (debtor is not liable for damages)

1.1.8.3. Remedies of Creditors

1.1.8.3.1. Exact performance

1.1.8.3.2. Attach and execute debtor's property which is not exempt

1.1.8.3.3. Accion subrogatoria

1.1.8.3.4. Accion directa

1.1.8.3.5. Accion pauliana

1.1.9. Kinds of Obligation

1.1.9.1. Pure

1.1.9.2. Conditional

1.1.9.2.1. Suspensive – happening of condition gives rise to obligation

1.1.9.2.2. Resolutory – happening of condition extinguishes obligation

1.1.9.2.3. Potestative – dependent on sole will of 1 party

1.1.9.2.4. Casual – dependent on chance or hazard

1.1.9.2.5. Mixed – chance, or any of parties

1.1.9.2.6. With term

1.1.9.2.7. Impossible and illegal

1.1.9.3. With a period

1.1.9.3.1. remedy: a) agreement among parties b) court shall fix period of payment when parties unable to agree

1.1.9.3.2. WHEN DEBTOR LOSES RIGHT TO PERIOD:

1.1.9.4. Facultative

1.1.9.4.1. Effect of loss or deterioration thru negligence, delay or fraud of obligor:

1.1.9.5. Alternative

1.1.9.5.1. Right of choice: General rule: right of choice belongs to debtor

1.1.9.5.2. Requisites for making the choice

1.1.9.6. Joint

1.1.9.6.1. EFFECTS

1.1.9.7. Solidary

1.1.9.7.1. KINDS

1.1.9.7.2. Instances where law imposes solidary obligation

1.1.9.7.3. Effect of loss or impossibility of the prestation

1.1.9.8. Divisible

1.1.9.8.1. a. execution of certain no of days work b. expressed by metrical units c. nature of obligation – susceptible of partial fulfillment

1.1.9.9. Indivisible

1.1.9.9.1. a. to give definite things b. not susceptible of partial performance c. provided by law d. intention of parties

1.1.9.10. With penal clause

1.1.9.10.1. CHARACTERISTICS

1.1.10. Extinguishment of Obligation

1.1.10.1. Modes of Extinguishment

1.1.10.1.1. PAYMENT OR PERFORMANCE

1.1.10.1.2. LOSS OF THE THING DUE

1.1.10.1.3. REBUS SIC STANTIBUS

1.1.10.1.4. CONDONATION/REMISSION OF THE DEBT

1.1.10.1.5. CONFUSION OR MERGER OF RIGHTS

1.1.10.1.6. COMPENSATION

1.1.10.1.7. NOVATION

1.2. TITLE II-CONTRACTS

1.2.1. PRINCIPAL CHARACTERISTICS

1.2.1.1. Autonomy of wills

1.2.1.2. Mutuality

1.2.1.3. Obligatory Force

1.2.1.3.1. a. fulfill what has been expressly stipulated b. all consequences w/c may be in keeping with good faith, usage & law

1.2.1.4. Relativity

1.2.1.4.1. EXCEPTION

1.2.1.5. Art 1312

1.2.1.5.1. REQUISITES OF ART 1312: (1) Existence of a valid contract (2) Knowledge of the contract by a 3rd person (3) Interference by the 3rd person

1.2.1.6. Art 1314

1.2.2. CLASSES OF ELEMENTS OF A CONTRACT

1.2.2.1. Essential Elements

1.2.2.1.1. Common

1.2.2.2. Natural Elements

1.2.2.3. Accidental Elements

1.2.3. KINDS OF CONTRACTS

1.2.3.1. As to perfection or formation:

1.2.3.1.1. consensual – perfected by agreement of parties

1.2.3.1.2. real – perfected by delivery ( commodatum, pledge, deposit )

1.2.3.1.3. formal/solemn – perfected by conformity to essential formalities ( donation )

1.2.3.2. As to cause

1.2.3.2.1. 1. Onerous – with valuable consideration

1.2.3.2.2. 2. Gratuitous – founded on liberality

1.2.3.2.3. 3. Remunerative – prestation is given for service previously rendered not as obligation

1.2.3.3. As to importance or dependence of one upon another

1.2.3.3.1. 1. principal – contract may stand alone

1.2.3.3.2. 2. accessory – depends on another contract for its existence; may not exist on its own

1.2.3.3.3. 3. Preparatory – not an end by itself; a means through which future contracts may be made

1.2.3.4. As to parties obliged:

1.2.3.4.1. 1. Unilateral – only one of the parties has an obligation

1.2.3.4.2. 2. Bilateral – both parties are required to render reciprocal prestations

1.2.3.5. As to name or designation:

1.2.3.5.1. 1. Nominate

1.2.3.5.2. 2. Innominate

1.2.4. STAGES IN A CONTRACT

1.2.4.1. 1. Preparation - negotiation

1.2.4.2. 2. perfection/birth

1.2.4.3. 3. consummation – performance

1.2.5. ESSENTIAL ELEMENTS

1.2.5.1. Consent

1.2.5.1.1. Requisites

1.2.5.1.2. ELEMENTS OF VALID OFFER ELEMENTS OF VALID ACCEPTANCE

1.2.5.1.3. WHEN OFFER BECOMES INEFFECTIVE

1.2.5.1.4. PERIOD FOR ACCEPTANCE

1.2.5.1.5. OPTION

1.2.5.1.6. PERSONS WHO CANNOT GIVE CONSENT TO A CONTRACT:

1.2.5.1.7. DISQUALIFIED TO ENTER INTO CONTRACTS

1.2.5.1.8. CAUSES WHICH VITIATE FREEDOM

1.2.5.1.9. SIMULATED CONTRACTS

1.2.5.2. Object

1.2.5.2.1. REQUISITES

1.2.5.3. Causa

1.2.5.3.1. REQUISITES

1.2.5.3.2. MOTIVE

1.2.5.4. Form

1.2.5.4.1. Kinds

1.2.5.4.2. WHEN FORM IS IMPORTANT

1.2.6. REFORMATION OF CONTRACTS

1.2.6.1. CAUSES/GROUNDS

1.2.6.1.1. mutual

1.2.6.1.2. unilateral

1.2.6.1.3. mistake by 3rd persons

1.2.6.1.4. others specified by law

1.2.6.2. REQUISITES:

1.2.6.2.1. 1. there is a written instrument 2. there is meeting of minds 3. true intention not expressed in instrument 4. clear & convincing proof 5. facts put in issue in pleadings Note: prescribes in 10 years from date of execution of instrument

1.2.6.3. WHEN NOT AVAILABLE

1.2.6.3.1. a. simple donation inter vivos b. wills c. when real agreement is void d. estoppel; when party has brought suit to enforce it

1.2.7. KINDS OF DEFECTIVE CONTRACTS

1.2.7.1. RESCISSIBLE CONTRACTS

1.2.7.1.1. REQUISITES

1.2.7.1.2. OBLIGATION CREATED BY THE RESCISSION OF THE CONTRACT

1.2.7.2. VOIDABLE CONTRACTS

1.2.7.2.1. CHARACTERISTICS

1.2.7.2.2. WHAT CONTRACTS ARE VOIDABLE

1.2.7.3. UNENFORCEABLE CONTRACT

1.2.7.3.1. KINDS/VARIETIES

1.2.7.3.2. 2 WAYS OF CURING UNENFORCEABLE CONTRACTS

1.2.7.4. VOID OR INEXISTENT

1.2.7.4.1. CHARACTERISTICS

1.2.7.4.2. KINDS OF VOID CONTRACT

1.2.7.4.3. KINDS OF ILLEGAL CONTRACTS

1.2.7.4.4. MUTUAL RESTITUTION IN VOID CONTRACTS