BOOK IV (FULL TEXT) : CIVIL CODE OF THE PHILIPPINES : CHAN ROBLES VIRTUAL LAW LIBRARY
TITLE I. – OBLIGATIONS GENERAL PROVISIONS Introduction: The Law on Obligations and Contracts is a kind of positive law which deals with. Title. I. - OBLIGATIONS. CHAPTER 1. GENERAL PROVISIONS. Art. Art. Obligations arising from contracts have the force of law between the A contract is a meeting of minds between two persons whereby one binds himself, . Title I. -OBLIGATION Chapter 1. GENERAL PROVISIONS Art. An obligation is a juridical necessity to give, to do or not to do. Obligation.
The suspension of the power to sell has a beneficial purpose, results in the protection of the corporation as well as of the individual parties to the contract, and is reasonable as to the length of time of the suspension.
The power to rescind obligations is implied in recipral ones, in case one of the obligors should not comply with what is incumbent upon him. He may also seek rescission, even after he has chosen fulfillment, if the latter should become impossible. If one of the parties in reciprocal obligations fails to comply with what is incumbent upon him, there is a right on the part of the other to rescind.
Rescission Cancellation can be demanded only if plaintiff is ready, willing and able to comply with his own obligation and the other is not.
Slight breaches will not 30 -- Lambert vs. The right to rescind needs judicial approval if there has been delivery. If there is no delivery, judicial approval is not necessary. The right tp rescinf is presumed, hence need not be express. The following are the choices of the creditor in enforcing his rights. These choices are alternative, not simultaneous: By payment or performance; ii. By the loss of the thing due; iii. By the condonation or remission of the debt; iv.
By the confusion or merger of the rights of the creditor and debtor; v. By compensation; and vi.
By novation; Other causes of extinguishment of obligations such as annulment, rescission, fulfillment of a resolutory condition, and prescription, are governed elsewhere in this Code a. Discussion of the Law There are other causes of extinguishment of obligation which are not expressly provided under the above provision.
Death extinguishes obligations which are purely personal in character, such as partnership and agency. Obligations may also be extinguished by the happening of a fortuitous event32 or by will of one of the parties as in some contracts such as partnership and agency. In the absence of any stipulation, payments must be made in the currency which is the legal tender in the Philippines the Philippine Peso.
These are extraordinary events not foreseeable or avoidable, events that could not be foreseen, or which, though foreseen, were inevitable. ArticleCivil Code of the Philippines.
It is therefore, not enough that the event could not have been foreseen or anticipated, as is commonly believed, but it must be one impossible to foresee or to avoid. In order that acts of man may constitute fortuitous event, it is necessary that they have the force of an imposition which the debtor could not have resisted. Thus, the outbreak of war which prevents performance exempts a party from liability.
Fortuitous event includes unavoidable accidents, even if there has been an intervention of human element, 33 -- Refer to ArticleCivil Code of the Philippines. If the thing has been lost through robbery with violence, the debtor must show that he could not resist the violence. If the thing is lost through theft, the debtor is considered negligent in having placed the thing within reach of thieves and not in a secure or safe place; hence, the debtor will be liable for damages.
After the plane had taken off, Florencio O. Villarin, a Senior NBI Agent who was also a passenger of the said plane, noticed a certain 'Zaldy,' a suspect in the killing of Judge Valdez, seated at the front seat near the door leading to the cockpit of the plane. Villarin then scribbled a note addressed to the pilot of the plane requesting the latter to contact NBI duty agents in Manila for the said agents to ask the Director of the NBI to send about six NBI agents to meet the plane because the suspect in the killing of Judge Valdez was on board the plane.
The said note was handed by Villarin to the stewardess who in turn gave the same to the pilot. After receiving the note, which was about 15 minutes after take off, the pilot of the plane came out of the cockpit and sat beside Villarin at the rear portion of the plane and explained that he could not send the message because it would be heard by all ground aircraft stations. While the pilot and Villarin were talking, 'Zaldy' and one of his companions walked to the rear and stood behind them.
The pilot then stood up and went back to the cockpit. Soon thereafter an exchange of gunshots ensued between Villarin and 'Zaldy' and the latter's companions. Upon landing at the Manila International Airport, Zaldy and his three companions succeeded in escaping. Such loss is a result of breach of PAL's contractual obligation to carry him and his belongings and effects to the Manila destination without loss or damage, and constitutes a serious dereliction of PAL's legal duty to exercise extraordinary diligence in the vigilance over the same.
In its defense, Philippine Airlines alleges that the robbery during the flight and after the aircraft was forcibly landed at the Manila Airport did indeed constitute force majeure. IV, by Arturo M. Tolentino, edition, page Yes, such hijacking constitutes force majeure. Hijackers do not board an airplane through a blatant display of firepower and violent fury.
The objective of modern-day hijackers is to display the irresistible force amounting to force majeure only when it is most effective and that is when the jetliner is winging its way at Himalayan altitudes and ill-advised heroics by either crew or passengers would send the multimillion peso airplane and the priceless lives of all its occupants into certain death and destruction.
Philippine Airlines could not be faulted for want of diligence. The mandatory use of the most sophisticated electronic detection devices and magnetometers, the imposition of severe penalties, the development of screening procedures, the compilation of hijacker behavioral profiles, the assignment of sky marshals, and the weight of outraged world opinion may have minimized hijackings but all these have proved ineffective against truly determined hijackers.
World experience shows that if a group of armed hijackers want to take over a plane in flight, they can elude the latest combined government and airline industry measures. And as our own experience in Zamboanga City illustrates, the use of force to overcome hijackers, results in the death and injury of innocent passengers and crew members. Philippine Airlines has faithfully complied with the requirements of government agencies and adhered to the established procedures and precautions of the airline industry at any particular time.
Under the circumstances of the instant case, the acts of the airline and its crew cannot be faulted as negligence. The hijackers had already shown their willingness to kill one passenger who survived from gunshot wounds. The lives of the rest of the passengers and crew were more important than their properties. Cooperation with the hijackers until they release their hostages at the runway end near the South Superhighway was dictated by the circumstances.
According to the Supreme Court: But the incident in question occurred during Martial Law where there was a military take-over of airport security including the frisking of passengers and the inspection of their luggage preparatory to boarding domestic and international flights. In fact military take-over was specifically announced x x x rendered it impossible for PAL to perform its obligations in a normal manner and obviously it cannot be faulted with negligence in the performance of duty taken over by the Armed Forces of the Philippines to the exclusion of the former.
Court of Appeals, G. In case of payment made by a third person who has no interest in the obligation: Payment through credit cards. Dation in payment -- is the conveyance of ownership of a thing as an accepted equivalent of performance. Bank A granted a car loan to B with the car as a chattel mortgage. In case the loan is not paid, Bank A has the right to foreclose the chattel mortgage.
The execution of a Deed of Sale may be considered as payment of the loan by means of datio en pago or dation in payment. Payment by cession is the abandonment of all property of the debtor for the benefit of his creditors in order that the latter may apply the proceeds thereof to the satisfaction of their credits. The Insolvency Law provides for the procedure in settling all the debts of the debtor who cannot settle all his obligations because he is already insolvent.
Tender of payment s the offer made by the debtor to make payment at or after maturity date. The debtor must have at the time of his offer the thing or money to be paid in his possession or at his disposal. Consignation is the delivery or deposit of the thing or the money due with a competent court after complying with certain formalities.
The requisites of a valid consignation are as follows: The requisites of condonation of debt are as follows: But if the personal property exceeds P5, Remission of an obligation involving real property must likewise appear in a public instrument.
Confusion or Merger of Rights It is the meeting in one person the qualities of a creditor and debtor with respect to the same obligation. The requisites of a valid compensation are as follows: There are two persons who are creditors and debtors of each other 2. There are two or more debts of the same kind, nature and quality 3.
The debts to be compensated are due and demandable 4. There is no retention, controversy or adverse claim over anyone of the debts to be compensated. Fixed, savings and current deposits of money in banks and similar institutions shall be governed by the provisions of the Civil Code concerning simple loan mutuum.
Law on Obligations and Contracts in the Philippines An Overview | Poala Madayag - jingle-bells.info
Hence, a debtor-creditor relationship exists between a bank and a depositor. That is why compensation may take place where a bank may validly debit the account of its depositors who are indebted to the bank by way of loan. By changing the object of the principal obligation: 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.
Its validity and performance cannot be left to the will of only one of the parties. Parties are free to stipulate terms and provisions in a contract, as long as these terms and provisions are not contrary to law, morals, good customs, public order and public policy. In a contract of employment between A and B, the latter agreed that for a period of five years after the termination of his employment, he shall neither engage or interest himself in any business enterprise similar to or in competition with those operated by A, nor enter into the employment of any enterprise in the Philippines, except after obtaining the written permission of A.
Is the agreement valid? The agreement is void because it is contrary to public policy. The agreement is clearly one in undie or unreasonable restraint of trade. It is not necessary for the protection of A. Besides, it would practically force B to get our of the country in order to obtain a livelihood in case should declineto give him a written permission to work elsewhere in the country.
Non-solicitation agreements run for an indefinite period. This may also run for an indefinite period. A Yellow Dog Contract is a promise exacted from workers as a condition of employment that they are not to belong to, or attempt to foster, a union during their period of employment. This constitutes Unfair Labor Practice and considered an illegal stipulation. Contracts are binding only upon the parties and their successors-in-interest.
Stipulation pour autrui stipulation in favor of a third person will prosper as long as the following requisites are present: Contracts are perfected by mere consent. By the obligatory force of contracts, it constitutes the law as between the parties who are compelled to perform under the 46 threat of being sued in the courts of law. Can a hotel evade liability for the loss of items left with it for safekeeping by its guests, by having these guests execute written waivers holding the establishment or its employees free from blame for such loss?
Maurice McLoughlin, an Australian businessman-philanthropist sued Tropicana Copacobana Apartment Hotel Tropicana for the loss of his American and Australian dollars deposited in the safety deposit box of Tropicana. It appears that the safety deposit box could only be opened through the use of two keys, one of which is given to the registered guest, and the other remaining in the possession of the management of the hotel.
When a registered guest wishes to open his safety deposit box, he alone could personally request the management who then would assign one of its employees to accompany the guest and assist him in opening the safety deposit box with the two keys.
In its defense, Tropicana denies liability, relying on the conditions for renting the safety deposit box as signed by Mr. To return the key and execute the release in favor of Tropicana Apartment Hotel upon giving up the use of the box.
McLoughlin entitled to his claims despite the written waiver which he signed in favor of Tropicana Apartment Hotel? McLoughlin is entitled to all his claims despite the written waiver which he signed in favor of Tropicana. The evidence reveals that two keys are required to open the safety deposit boxes of Tropicana.
One key is assigned to the guest while the other remains in the possession of the management. If the guest desires to open his safety deposit box, he must request the management for the other key to open the same. In other words, the guest alone cannot open the safety deposit box without the assistance of the management or its employees. With more reason that access to the safety deposit box should be denied if the one requesting for the opening of the safety deposit box is a stranger.
Thus, in case of loss of any item deposited in the safety deposit box, it is inevitable to conclude that the management had at least a hand in the consummation of the taking, unless the reason for the loss is force majeure.
Noteworthy is the fact that the employees of Tropicana had custody of the master key of the management when the loss took place. Yet the management failed to notify Mr. McLoughlin of the incident and waited for him to discover the taking before it disclosed the matter to him. Therefore, Tropicana should be held responsible for the damage suffered by Mr.
McLoughlin by reason of the negligence of its employees. Under Article of the New Civil Code, those who, in the performance of their obligations, are guilty of negligence, are liable for damages. As to who shall bear the burden of paying damages, Articleparagraph 4 of the same Code provides that the owners and managers of an establishment or enterprise are likewise responsible for damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions.
Thus, given the fact that the loss of Mr. McLoughlin is tainted with nullity. Article of the Civil Code is controlling, thus: The hotelkeeper cannot free himself from responsibility by posting notices to the effect that he is not liable for the articles brought by the guest. Any stipulation between the hotelkeeper and the guest whereby the responsibility of the former as set forth in Articles to is suppressed or diminished shall be void. Catering to the public, hotelkeepers are bound to provide not only lodging for hotel guests and security to their persons and belongings.
The twin duty constitutes the essence of the business. Distinction Between an Obligation and a Contract. A contract is an agreement between parties with respect to the other, to give something or render some service.
If they do not violate any law, morals, good customs, public order, or public policy and shall have the force of law and should be compiled with in good faith. Only the unauthorized insertion will be disregarded. It does not require assent of the parties and its creation is entirely dictated by the law for the benefit of another and for which the former must compensate to the end. Characteristic of a Quasi-Contract Act s executed must be lawful to distinguish it from a violation or crime.
Act s executed must be voluntary distinguish it from quasi-delict. Act s executed must be independent to distinguish it from an ordinary contract. The following must appear in a public document: All other contracts where the amount involved exceeds five hundred pesos must appear in writing, even a private one.
But sales of goods, chattels or things in action are governed by Articles,No.
Article – Obligations Defined by Johannah Abestano on Prezi
When, there having been a meeting of the minds of the parties to a contract, their true intention is not expressed in the instrument purporting to embody the agreement, by reason of mistake, fraud, inequitable conduct or accident, one of the parties may ask for the reformation of the instrument to the end that such true intention may be expressed.
If mistake, fraud, inequitable conduct, or accident has prevented a meeting of the minds of the parties, the proper remedy is not reformation of the instrument but annulment of the contract. The principles of the general law on the reformation of instruments are hereby adopted insofar as they are not in conflict with the provisions of this Code.
When a mutual mistake of the parties causes the failure of the instrument to disclose their real agreement, said instrument may be reformed. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention, the former may ask for the reformation of the instrument.
When one party was mistaken and the other knew or believed that the instrument did not state their real agreement, but concealed that fact from the former, the instrument may be reformed. When through the ignorance, lack of skill, negligence or bad faith on the part of the person drafting the instrument or of the clerk or typist, the instrument does not express the true intention of the parties, the courts may order that the instrument be reformed.
If two parties agree upon the mortgage or pledge of real or personal property, but the instrument states that the property is sold absolutely or with a right of repurchase, reformation of the instrument is proper. There shall be no reformation in the following cases: When one of the parties has brought an action to enforce the instrument, he cannot subsequently ask for its reformation. Reformation may be ordered at the instance of either party or his successors in interest, if the mistake was mutual; otherwise, upon petition of the injured party, or his heirs and assigns.
The procedure for the reformation of instrument shall be governed by rules of court to be promulgated by the Supreme Court. If the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.
If the words appear to be contrary to the evident intention of the parties, the latter shall prevail over the former. In order to judge the intention of the contracting parties, their contemporaneous and subsequent acts shall be principally considered.
However general the terms of a contract may be, they shall not be understood to comprehend things that are distinct and cases that are different from those upon which the parties intended to agree.
If some stipulation of any contract should admit of several meanings, it shall be understood as bearing that import which is most adequate to render it effectual. The various stipulations of a contract shall be interpreted together, attributing to the doubtful ones that sense which may result from all of them taken jointly. Words which may have different significations shall be understood in that which is most in keeping with the nature and object of the contract.
The usage or custom of the place shall be borne in mind in the interpretation of the ambiguities of a contract, and shall fill the omission of stipulations which are ordinarily established. The interpretation of obscure words or stipulations in a contract shall not favor the party who caused the obscurity.
When it is absolutely impossible to settle doubts by the rules established in the preceding articles, and the doubts refer to incidental circumstances of a gratuitous contract, the least transmission of rights and interests shall prevail. If the contract is onerous, the doubt shall be settled in favor of the greatest reciprocity of interests.
If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties, the contract shall be null and void.
The principles of interpretation stated in Rule of the Rules of Court shall likewise be observed in the construction of contracts. Contracts validly agreed upon may be rescinded in the cases established by law. The following contracts are rescissible: Payments made in a state of insolvency for obligations to whose fulfillment the debtor could not be compelled at the time they were effected, are also rescissible.
The action for rescission is subsidiary; it cannot be instituted except when the party suffering damage has no other legal means to obtain reparation for the same. Rescission shall be only to the extent necessary to cover the damages caused. Rescission creates the obligation to return the things which were the object of the contract, together with their fruits, and the price with its interest; consequently, it can be carried out only when he who demands rescission can return whatever he may be obliged to restore.
Neither shall rescission take place when the things which are the object of the contract are legally in the possession of third persons who did not act in bad faith. In this case, indemnity for damages may be demanded from the person causing the loss. Rescission referred to in Nos. All contracts by virtue of which the debtor alienates property by gratuitous title are presumed to have been entered into in fraud of creditors, when the donor did not reserve sufficient property to pay all debts contracted before the donation.
Alienations by onerous title are also presumed fraudulent when made by persons against whom some judgment has been issued. The decision or attachment need not refer to the property alienated, and need not have been obtained by the party seeking the rescission. In addition to these presumptions, the design to defraud creditors may be proved in any other manner recognized by the law of evidence.
Whoever acquires in bad faith the things alienated in fraud of creditors, shall indemnify the latter for damages suffered by them on account of the alienation, whenever, due to any cause, it should be impossible for him to return them. If there are two or more alienations, the first acquirer shall be liable first, and so on successively. The action to claim rescission must be commenced within four years.
For persons under guardianship and for absentees, the period of four years shall not begin until the termination of the former's incapacity, or until the domicile of the latter is known. The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties: These contracts are binding, unless they are annulled by a proper action in court.
They are susceptible of ratification.