Law on Obligations and Contracts: A Comprehensive Guide, Study notes of Law of Obligations

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OBLIGATIONS

AND CONTRACTS

LAW I / RFBT 1

GENERAL NATURE OF LAW

• A Law is any rule of action or any system of uniformity. Applicable not only in the activities of men but also through science.
• Divided in two general groups:
  • Law in a legal sense – state law
  • Law in a non legal sense – divine, natural, moral and physical law.

STATE LAW

• Promulgated and enforced by the state
• Mass obligatory rules for governing persons
• Rule of conduct, just obligatory, promulgated by legitimate authority and of common observance and benefit
• A positive Law, Municipal Law, Civil Law
• And Imperative Law
• Enforced by the state

NECESSITY AND FUNCTION OF LAW

• Law secures justice, resolves social conflict, orders society, protects interests, controls social relations.
• Life without laws is destructive
• Life without laws is less orderly, less healthful and less wholesome.

Sources of Law

• Legislation – Declaration of laws enacted by a competent authority.
• Administrative or executive orders, regulations and rulings
  • Issued by administrative officials (executive) under legislative authority. Intended to clarify or explain the law and carry into effect its general provisions.

Sources of Law

• Judicial Decisions or Jurisprudence – The decisions of the Supreme Court, applying or interpreting the laws of the Constitution form part of the legal system of the Philippines. The decision of the Supreme Court on a point of law are binding on all subordinate courts, doctrine of precedent or stare decisis.

Interpretation / Statutory Construction

• “No judge or court shall decline to render judgment by reason of silence, obscurity or insufficiency of laws” (Art. 9, Civil Code).
• “In case of doubt in the interpretation or application of laws, it is presumed that the lawmaking body intended right and justice to prevail” (Art. 10, Civil Code).

ENACTMENT OF LAWS

Classifications of Law

• As to subject matter
  • Public Law – body of legal rules which regulates the rights and duties arising form the relationship of the state to the people. Ex. Constitutional Law, Criminal Law, Taxation Law, Etc.
  • Private Law – body of rules which regulates the relations of individuals with one another for purely private ends. Ex. Civil Law, Commercial Law, Mercantile Law, and Civil Procedure.

Law on Obligations and Contracts definition

• Body of rules which deals with the nature and sources of obligations and the rights and duties arising form agreements and particular contracts. (Art. 1307 Civil Code).
• This is found in RA 386 otherwise known as Civil Code of the Philippines. Which we copied from Spanish Civil Code.
• Article 1156-1304 (Obligations)
• Article 1305-1422 (contracts)

Obligations (Art. 1156 – 1304)

• Art. 1156 – Defines an obligation.
  • A tie or bond recognized by law by virtue of which one is bound in favor of another to render something and this may consist in giving a thing, doing a certain act, or not doing a certain act.
  • Stresses the duty under the law of the debtor or obligor when it speaks of obligation as a juridical necessity.
  • Juridical necessity because in case of non-compliance, the courts of justice may interfere

Article 1156

• Example - Gaya bought a refrigerator from Tito but Gaya did not pay the refrigerator. If after demand, Gaya still did not pay, Tito can sue Gaya in Court either to demand payment or for recovery of the refrigerator.
• Obligations which give to the creditor or obligee a right under the law to enforce their performance in courts of justice are known as Civil Obligations.