Saturday, October 29, 2016

Distinction between Civil Obligation and Natural Obligation

      A civil obligation(as defined in Art. 1156) is based on positive law; hence, it is enforceable by court action.

      A natural obligation  on the other hand, is based on natural law; hence, it is not enforceable by court action. The obligation, however, exists in equity and moral justice, such that if the debtor voluntarily performs it, he can no longer recover what he has given.

      Illustration:

      Molly is the maker of a promissory note with Polly as the payee for Php200,000.00. If Molly does not pay on due date, Polly can enforce payment by filing a court action. If Polly does not file a court action against Molly within 10 years from due date which is the prescriptive period for actions upon a written contract, Polly losses the right to enforce payment by court action. However, if Molly voluntarily makes the payment to Polly although the obligation has prescribed, Molly will no longer be allowed to recover the payment because in equity and moral justice, she still owed Polly the amount of Php200,000.00.

Friday, October 28, 2016

OBLIGATIONS

Concept of an Obligation

      An obligation is a juridical necessity to give, to do or not do. (Art. 1156, Civil Code of the Philippines). Juridical necessity means that the court may be ask to order the performance of an obligation if the debtor does not fulfill it. If an obligation cannot be enforced through the courts, it may be disregarded with impunity.

      (Note: Unless otherwise indicated, articles of law refer to the provisions of the Civil Code of the Philippines.)

Requisites of obligation

      1. Active subject (creditor or obligee) - The party who has the right to demand performance of the obligation.

      2. Passive subject (debtor or obligor) - The party who is obliged to perform the obligation.

      3. Prestation - The object or the subject matter of the obligation. It may consist of giving, doing or not doing something.

      4. Efficient cause - The vinculum or the legal or juridical tie which binds the parties to an obligation. The efficient cause of an obligation may be any of the five sources of obligation.

Examples:

1. Daniel is obliged to give Catherine Php500,000.00 with interest at 12% per annum on December 31, 2015 pursuant to a contract of loan. Daniel is the passive subject; Catherine is the active subject; the giving of Php500,000.00 with 12% interest is the prestation; and the contract of loan is the efficient cause. The obligation here is unilateral, that is, only one party is required to perform a particular conduct. 

2. Fred is obliged to transport the goods of Eve from Manila to Cebu, and Eve is obliged to pay Fred Php10,000.00 as transport costs, under a contract of carriage. As regards the transport of the goods which is the prestation, Eve is the active subject and Fred is the passive subject. As regards the payment of transport costs which is the prestation, Eve is the passive subject and Fred is the active subject. The contract of carriage is the efficient cause for the obligations of both Fred and Eve. The obligations here are bilateral, that is, each party is required to perform a particular conduct.