Agency Notes 1 JRRB: Essential Requisites

Agency Notes 1 JRRB
Obligation – a juridical necessity to give, to do or liable for the loss or deterioration of the
not to do. (Art. 1156) thing intended as a substitute even if the
latter was the result of his negligence.
Essential requisites: However, the debtor is liable thereof once
 Passive subject (debtor / obligor) the substitution has been made and he is
 Active subject (creditor / oblige) guilty of delay, negligence or fraud.
 Object or prestation (subject matter)
 Juridical or legal tie (efficient cause) d. Joint and Solidary (Arts 1207-1222)
d.1 Joint obligation - the prestation is
divided among each debtor and/or the
demand for it is divided among each
CLASSIFICATIONS OF OBLIGATIONS.
creditor.
(1) Primary classifications
d.2 Solidary obligation - the prestation may
a. Pure and Conditional (Arts 1179-1192) be performed by any one of the debtors,
a.1 Pure obligations – one where its and/or its entire compliance may be
performance of does not depend upon a demanded by any one of the creditors
future or uncertain event, or upon a past
event unknown to the parties, resulting in e. Divisible and Indivisible (Arts 1223-1225)
such obligation being immediately due and e.1 Divisible obligation - the prestation can
demandable. be partially performed.
a.2 Conditional obligations - one which e.2 Indivisible obligation - the prestation
requires the happening of an event for a cannot be partially performed
right to be acquired (suspensive condition)
for a right to be extinguished (resolutory f. Obligations with a penal clause (Arts 1226-
condition). Consequently, a conditional 1230) - the accessory prestation imposes a
obligation is one the performance of which penalty that shall substitute the indemnity
depends on an uncertainty (whether the day for damages and the payment of interests in
will come or not). case of noncompliance to the principal
prestation.
b. Obligations with a period (Arts 1193-1198) -
performance is subject to a period, and can (2) Secondary classifications
only be demandable when that period
expires.  “This is codal!” a. Unilateral and Bilateral (Arts 1169-1191)
a.1 Unilateral obligation - only one party is
c. Alternative and Facultative (Arts 1199- bound to perform a prestation.
1206)
c.1 Alternative obligations - one wherein the a.2 Bilateral obligation - both parties are
debtor is permitted to complete his bound to each other in performing their
obligation by performing either one of the respective prestations.
different prestations which he is
alternatively bound. The debtor’s choice b. Real and Personal (Arts 1163 -1168)
produces legal effect reckoned from when b.1 Real obligation - the prestations is to
the choice has been communicated to the give or deliver a thing.
creditor.
b.2 Personal obligation - the prestation is to
c.2 Facultative obligations – one wherein the do or not to do an act.
debtor is permitted to render a prestation in
substitution of the only obligation agreed c. Determinate and generic (Art 1165)
upon with the creditor.The debtor is not
Agency Notes 1 JRRB
c.1 Determinate obligation - to deliver a Real - those in which it is necessary that

determinate thing. there should be something more than mere
c.2 Generic obligation - to deliver a generic consent, such as a loan of money, deposit or
thing. pledge, which, from their nature, require a
delivery of the thing, (res.)
d. Legal, Conventional and Penal (Arts. 1157,
1159, 1161) Formal - contract made legally enforceable
d.1 Legal obligation - arises from laws. by following a prescribed format, and by
incorporating standardized conditions and
d.2 Conventional obligation - arises from provisions in its body.
contracts with the force of the law.
 Onerous or Gratuitous
d.3 Penal obligation - arises from delicts and Onerous – those in which something is
criminal offences. (not to be confused with given or promised as a consideration for the
the 'obligation with a penal clause' which is engagement or gift, or some service,
an accessory obligation) interest, or condition is imposed on what is
given or promised, although unequal to it in
STAGES IN THE LIFE OF A CONTRACT
value.
1) Preparation or conception – this includes all
the steps taken by the parties leading to the Gratuitous - those of which the object is the
perfection of the contract. At this stage, the benefit of the person with whom it is made,
parties have not yet arrived at any definite without any profit or advantage received or
agreement. promised as a consideration for it.
2) Perfection or birth - this is when the parties
have come to a definite agreement or  Unilateral, Bilateral or Reciprocal
meeting of minds regarding the subject Unilateral contract - one in which one party
matter and cause of contract makes an express engagement or undertakes
3) Consummation or termination – this is when a performance, without receiving in return
the parties had performed their respective any express engagement or promise of
obligation and the contract may be said to performance from the other.
have been fully accomplished or executed.
Bilateral (or reciprocal) contracts are those
TYPES OF CONTRACTS by which the parties expressly enter into
mutual engagements, such as sale or hire.
 Principal or Accessory
Principal - one which stands by itself,
justifies its own existence, and is not
subordinate or auxiliary to any other.
 Valid, Voidable, Rescissible,
Unenforceable or Void
Accessory – those made for assuring the
Valid contract – that which is enforceable at
performance of a prior contract, either by the
law. It creates legal obligations between the
same parties or by others, such as
parties. It enables one party to compel
suretyship, mortgage, and pledges.
another party to do something or not to do
something.
 Consensual, Real or Formal
Consensual - are founded upon and
Voidable contract – one where consent was
completed by the mere agreement of the
given through mistake, violence,
contracting parties, without any external
intimidation, undue influence, or fraud.
formality or symbolic act to fix the
Similar to a rescissible contract, a voidable
obligation.
contract remains valid and binding. Unlike a
Agency Notes 1 JRRB
rescissible contract, a voidable contract may

only be annulled by a proper action in court.
Rescissible Contract - one wherein a party is

allowed to rescind or terminate the contract
due to the other party’s failure to comply
with the obligations set forth in their
agreement.
Unenforceable contract – one where there is

an absence of authority on the part of one or
both of the contracting parties, including
those falling in the Statute of Frauds.
Void contract - one where an essential

requisite to constitute an agreement is
lacking. It produces no rights and
obligations, it cannot be enforced.
CONTRACT PRINCIPLES OR DOCTRINES
 Autonomy - The contracting parties are free

to establish such stipulations, clauses, terms
and conditions as they may deem
convenient, provided they are not contrary
to law, morals, good customs, public order,
or public policy.
 Consensuality - founded upon and

completed by the mere consent of the
contracting parties.
 Mutuality or Obligatory Force - Both

contracting parties must be bound by the
contract. Hence, the contract’s validity or
compliance cannot be left to the sole will of
either party.
 Relativity - generally only the parties and

their successors in interest are bound by the
contract. The exception is when the rights
and obligations arising from the contract are
not transmissible by their nature, by
stipulation, or by provision of law.
 Doctrine of Incorporation - Section 2.

Article II of the Constitution adopts the
generally accepted principles of
international law as part of the law of the
land. (?)

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Agency Notes 1 JRRB

c.1 Determinate obligation - to deliver a Real - those in which it is necessary that

rescissible contract, a voidable contract may

Rescissible Contract - one wherein a party is

Unenforceable contract – one where there is

Void contract - one where an essential

CONTRACT PRINCIPLES OR DOCTRINES

 Autonomy - The contracting parties are free

 Consensuality - founded upon and

 Mutuality or Obligatory Force - Both

 Relativity - generally only the parties and

 Doctrine of Incorporation - Section 2.

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