Importance of Adherence

to Contractual Obligations
0o0 …going LEGAL 0o0

by
ATTY. GERAMER V. DURATO
 What is a

• A voluntary, deliberate, and legally binding

AGREEMENT between two or more competent
parties.

Each party to a contract acquires rights and duties relative to the

rights and duties of the other parties.

Read more: http://www.businessdictionary.com/definition/contract.html

 What is a

• 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.
-Art. 1305, CC
 Did you remember that you have
signed a contract?

(1) Memorandum of Agreement for Social Pension for

Indigent Senior Citizens;

(2) …for SLP, Pantawid, KC: NCDDP, etc.

 Soc Pen: Roles and Responsibilities

The DSWD shall:

• Facilitate engagement with LGU on the transfer of fund;
• Review monthly submission of updated/ clean list of
beneficiaries;
• Prepare the payroll and facilitate release of CHECKS;
• Provide technical assistance to the LGUs;
• Ensure presence of FO/ RSPU staff in every pay out;
• Regular (monthly) monitoring and spot check to validate
receipt of payment to the beneficiaries;
 Soc Pen: Roles and Responsibilities

The DSWD shall:

• Conduct orientation, meetings, and advocacy activities;
• Facilitate preparation and approval of payroll and list of
beneficiaries;
• Facilitate completion of liquidation report from the LGUs;
• Coordinate and conduct meetings with FO Budget and
Accounting Unit, SWADT, Municipal Treasurer, disbursing
offices C/MSWDO and OSCA
 Soc Pen: Roles and Responsibilities

The LGU shall (C/MSWDO):

• Coordinate with OSCA members in the conduct of validation
and home visit to identified indigent SCs;
• Submit monthly updated/ clean list of beneficiaries, data on
delisted and waitlisted qualified senior citizens;
• Coordinate with SWADT and Municipal Treasurer on the
release/ delivery of CHECKS;
• Ensure timely delivery of payment to the beneficiaries;
 Soc Pen: Roles and Responsibilities

The LGU shall (C/MSWDO):

• Facilitate creation of a committee composed of OSCA, FSCAP,
SC organizations, and other stakeholders;
• Identify and designate staff/ focal person for the SP
implementation;
• Submit monthly accomplishment report on SP to the LCE and
RSPU;
• Assess client/ SCs and provide intervention or appropriate
assistance to SCs who are not qualified for SP.
 Accountability

• The agreement shall be implemented AS AGREED

upon in accordance with the terms and conditions
stipulated herein. FAILURE on the part of any party
to comply with the provisions of this agreement will
warrant its discontinuance and give rise to filing of
appropriate administrative and/ or criminal
actions against responsible officers and employees
of the erring party.
 ACKNOWLEDGMENT

“All known to me and to me known to be the

same persons who executed the foregoing
instrument and acknowledged to that the same
is their own FREE WILL and VOLUNTARY ACT and
DEED of the principal they represent.”
 To what extent the parties in a
contract may be bound to?

 Contracts are perfected by mere consent, and from

that moment the parties are bound NOT ONLY to
the fulfillment of what has been expressly
stipulated but also to all the consequences which,
according to their nature, may be in keeping with
good faith, usage and law.
-Art. 1315, CC
What is the nature of obligations that
arise from contracts?

 It has the FORCE of LAW!

“Obligations arising from contracts have the

FORCE of LAW between the contracting parties and
SHOULD BE COMPLIED WITH in good faith.”
-Art. 1159, CC
 Are there LIABILITIES
in case of Breach?

 Definitely, YES!

“Those who in the performance of their

obligations are guilty of fraud, negligence, or delay,
and those who in any manner contravene the tenor
thereof, are liable for damages.”
-Art. 1170, CC
 Are liabilities DEMANDABLE?

 YES!

“Responsibility arising from negligence in the

performance of every kind of obligation is also
DEMANDABLE, but such liability may be regulated by
the courts, according to the circumstances.”
-Art. 1172, CC
 What one can do to keep him/her
from legal troubles?

 Observance of Ordinary Diligence

“Diligence of a good father of a family.”

…unless the law or stipulation of the parties requires

another standard of care.

-Art. 1172, CC
 What one can do to keep him/her
from legal troubles?

 Primarily responsible officers (Head of the Agency/

Treasurer of LGU)

“Diligence of a good father of a family.”

…in supervising accountable officers under his/ her control to prevent the
incurrence of loss of government funds or property, otherwise he shall be
jointly and solidarily liable with the person primarily accountable
therefore.

-PD 1445
 “Mantra”
“Every person must, in the exercise of his
rights and in the performance of his duties,
act with justice, give everyone his due, and
observe honesty and good faith.”

[Art. 19 of Civil Code]

• New Living Translation
When you make a promise to God, don't
delay in following through, for God takes no
pleasure in fools. Keep all the promises you
make to him.