Obligation and Contract

2218 Words Nov 26th, 2012 9 Pages
LAW ON OBLIGATIONS AND CONTRACTS*

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
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Negotiorum gestio- unauthorized management; This takes place when a person voluntarily takes charge of another’s abandoned business or property without the owner’s authority

b. Solutio indebiti- undue payment; This takes place when something is received when there is no right to demand it, and it was unduly delivered thru mistake

4. Delicts Governing rules: 1. Pertinent provisions of the Revised Penal Code and other penal laws subject to Art 2177 Civil Code

• Art 100, RPC – Every person criminally liable for a felony is also civilly liable

2. Chapter 2, Preliminary title, on Human Relations (Civil Code)

3. Title 18 of Book IV of the Civil Code - on damages

What civil liability arising from a crime includes: a. restitution b. reparation of damage caused c. indemnity for consequential damages

Effect of acquittal in criminal case: • when acquittal is due to reasonable doubt – no civil liability • when acquittal is due to exempting circumstances – there is civil liability • when there is preponderance of evidence – there is civil liability

5. QUASI-DELICT/ TORTS- it is a fault or act of negligence (or omission of care) which causes damage to another, there being no pre-existing contractual relations between the parties

Elements: a) There must be fault or negligence attributable to the person charged
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