MEMORY AID FOR OBLIGATIONS AND CONTRACTS

Sources of Obligations (Art.1159)

LCQuaQuaCri

Law, Contracts, Quasi-Delict, Quasi- Contract, Crime

Law (payment of taxes, payment of government contributions)

Contracts is the law governing the parties and has to be valid and enforceable before it becomes a
source. (examples: compromise agreement, except those not subject to compromise)

Contract of Adhesion – a type of contract where the terms and conditions are prepared by one party
and the other has no choice but to accept or refuse. (example: boat ticket, plane ticket)

Jurisprudence: Contracts of Adhesion are valid since the other party may choose to accept or reject it.
He is not forced to accept the terms and conditions, but is invalid when the weaker party has no
opportunity to effectively bargain with the dominant party. (Sweet Lines vs Teves)

Stipulation of venue of suits in a contract are valid. (Spouses Rigor vs Orix Leasing and PILTEL vs Tecson)

Quasi – Delict Elements: NIDA

a. There must be Negligence;

b. There must be Injury;
c. Negligence must be the Direct cause of the injury
d. There must be Absence of contractual relations between the parties.

Diligence Required in normal standards and circumstances: Bonum Pater Familias (Good Father of a
Family)

Crimes:

Death of a convict does not extinguish civil liability. Claims for damages may be enforced against his
estate but should not exceed value of inheritance.

If acquittal is not based beyond reasonable doubt, offender is still civilly liable. Only preponderance of
Evidence is needed.

If acquitted because of justifying and exempting circumstance, offender is still civilly liable.

Criminal actions includes the civil aspect of the complaint, except when a reservation is expressly made.

Article 1163: “No Delivery, No real right”

Article 1165: If debtor does not deliver on the date promised:

a. If thing is determinate, Creditor may ask delivery + damages (DD)

b. If thing is generic, Compliance On Debtor’s Expense.(CODE)
c. If thing is promised to two or more persons with different interests, or if obligor delays, debtor
is liable even in fortuitous events.
Article 1167: On personal obligations:

For failure to do, Done At Debtor’s Expense (DADE)

General Rule: Debtor cannot be asked to do or undo personally, as it may tantamount to violating the
constitutional provision on involuntary servitude. IT’S ALL EXPENSE PAID BY DEBTOR.

Article 1169: Default happens when creditor demands fulfillment.

No demand is needed if LaTE BP.

a. When the Law declares. (ex: period when to pay tax)

b. When Time is an Element.
c. Beyond Performance

20 days delay is not considered substantial that may entitle creditor to claim damages (Song Fo vs
Hawaiian Company)