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week 4 lecture the law obligation, Lab Reports of Law

Centro Escolar University (CEU)Law

week 4 lecture the law obligation

Typology: Lab Reports

2023/2024

Uploaded on 09/13/2023

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SESSION 3 - LATH 311
THE LAWS ON OBLIGATIONS AND CONTRACTS
Note to student: There are some scenarios and cases included in this lesson, kindly
note down your answers for the discussion during Zoom or Hangout meeting.
ā€¢ Obligations and contracts are among the subjects of the Civil Code of
the Philippines. In this lesson, we will study some civil obligations
which, when violated, have legal effects or consequences.
ā€¢ In tourism and hospitality establishments, entering into different
contracts are part of the operation of the business. Once the contract
is executed, the parties must abide with the terms and conditions
stated therein and consider it as if it is the law that governs them.
ā€¢ A breached or violation of the terms and conditions may give rise for
damages.
ā€¢ This lesson aims to explain the basic principles of the law on
obligations and contracts and to understand how this law creates a
relationship between the parties.
Applicable Provisions of the Law on Obligations and Contracts
Article 1156: Obligation is a juridical necessity, to give, to do or not
to do.
ā€¢ The obligation referred to in the above article is a civil obligation,
meaning, only those obligations which is not performed by one party,
the other party may go to court to enforce the obligation or simply to
hold such person to pay for damages. ā€˜
ā€¢ Not all obligations are enforceable before the courts.
What are considered as civil obligations?
The following are sources of civil obligations:
1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omissions punishable by law (delicts)
5. Quasi-delicts
Elements of Obligation
1. Passive Subject ā€“ known also as obligor or debtor; the person who has
the duty to fulfill the obligation or the prestation.
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THE LAWS ON OBLIGATIONS AND CONTRACTS

Note to student: There are some scenarios and cases included in this lesson, kindly note down your answers for the discussion during Zoom or Hangout meeting.

  • Obligations and contracts are among the subjects of the Civil Code of the Philippines. In this lesson, we will study some civil obligations which, when violated, have legal effects or consequences.
  • In tourism and hospitality establishments, entering into different contracts are part of the operation of the business. Once the contract is executed, the parties must abide with the terms and conditions stated therein and consider it as if it is the law that governs them.
  • A breached or violation of the terms and conditions may give rise for damages.
  • This lesson aims to explain the basic principles of the law on obligations and contracts and to understand how this law creates a relationship between the parties. Applicable Provisions of the Law on Obligations and Contracts Article 1156: Obligation is a juridical necessity, to give, to do or not to do.
  • The obligation referred to in the above article is a civil obligation, meaning, only those obligations which is not performed by one party, the other party may go to court to enforce the obligation or simply to hold such person to pay for damages. ā€˜
  • Not all obligations are enforceable before the courts. What are considered as civil obligations? The following are sources of civil obligations:
  1. Law
  2. Contracts
  3. Quasi-contracts
  4. Acts or omissions punishable by law (delicts)
  5. Quasi-delicts Elements of Obligation
  6. Passive Subject ā€“ known also as obligor or debtor; the person who has the duty to fulfill the obligation or the prestation.

Case: ā€œMabuhay Travel and Toursā€ is earning a lot of income; the trouble is that it does not pay its taxes. Can the business be sued? Answer: Yes, Mabuhay Travel and Tours can be sued because it is the obligation of every tax payer to pay taxes. The obligation is imposed by the National Internal Revenue Code of the Philippines which is a law. In short, this obligation is one that arises from law. o Mr. Cruz obliged himself to deliver 500 sets of tour kit to AAA Tours and Travel. o Who is the obligor? Mr. Cruz because he is the one who has the obligation

  1. Active Subject ā€“ the person who has the power to demand the fulfillment of the obligation; also called the creditor or obligee o Mr. Cruz obliged himself to deliver 500 sets of tour kit to AAA Tours and Travel owned by Ms. Calle o Who is the obligee? Ms. Calle is the obligee / creditor. In case of the failure of Mr. Cruz to perform his obligation, Ms. Calle may demand the fulfillment of the obligation of Mr. Cruz.
  2. Prestation ā€“ the object of the obligation to give, to do or not to do.
  3. Juridical Tie ā€“ the vinculum or that which binds the debtor and creditor Sources of Obligation
  4. Law ā€“ obligations arising from law are not presumed only; those obligations expressly determined by law are demandable. Scenario 1: Obligation to pay tax. Obligation to secure a business permit. Obligation to support a child.
  5. Contracts ā€“ Under Article 1305, Contract is a meeting of the minds whereby one binds himself with respect to other to give something or render some services. If a person entered into a contract, an obligation

Mr. A was employed as a flight attendant in ZZZ Airways. One day, Mr. A had a heated argument with Mr. B, who is also one of the flight attendants of the company. Thereafter, Mr. A fired his gun towards Mr. B causing his death. Is Mr. A liable criminally, civilly or both? Explain your answer. In this case, Mr. A is liable criminally. However, aside from imprisonment (the criminal liability) he is also liable civilly, meaning Mr. A has the obligation to pay for damages suffered by the family such as, funeral expenses, medical expenses, moral damages, among others.

  1. Acts or Omissions Punishable by Law (Delict) ā€“ Under the Revise Penal Code of the Philippines, any person criminally liable is also civilly liable. The civil liability pertains to the damages that must be oaid arising from the offense committed. Scenario 3:
  2. Quasi-Delicts (Culpa Aquiliana) ā€“ Under the Civil Code, whoever will cause damage or injury to another due to fault or negligence, there being no pre-existing contractual obligation, shall be held liable for damages. Requisites of Quasi-Delicts a. There is negligence on the part of the defendant (the person who committed such) b. That the negligence causes damage or injury to another c. There must be no pre-existing contractual obligation between the parties If the above requisites are present, the person who suffered injury or damage may go to court to file a case for damages based on quasi- delicts or culpa aquiliana.

Juan dela Cruz is one of the drivers of ABC Tours and Transport. One of his functions is to fetch a guest from the airport back to the hotel. One day, Juan dela Cruz was tasked to fetch Anna Santos from the airport. On their way to the hotel, Juan dela Cruz accidentally bumps Jane Doe, a pedestrian that caused her instant death. Can the family of Jane Doe sue the employer of Juan dela Cruz for damages based on quasi-delicts? Answer: YES , because in case of quasi-delicts, the owners or managers of an establishment are responsible for the damage cause by their employees. However, if the owner or manager had shown evidence that it exercises the diligence of a good father of the family in the selection and supervision of its employee, they will not be held liable for damages. Owners and Managers of an Establishment are Liable for the Negligent Act of their Employees based on Quasi-Delicts Article 2180 The owners and managers of an establishment or enterprises are responsible for damages caused by their employees in the service of the branches in which the employee is employed or on occasion of their functions. o Before an employer may be held liable for the negligence of his employee, the act of omission which caused damage must have occurred while an employee was in the actual performance of his assigned tasks or duties. Scenario 4: When is Employer or Manager not liable for the Negligence of its Employees? The liability of the owner or manager is relieved if he shows that he exercised the diligence of a good father of the family in the selection and supervision of his employees. Once evidence is introduced showing that the employer exercised the required amount of care in selecting his employees, half of the employerā€™s burden will be overcome. The

Ms. Ana flew to Palawan for a business meeting. He checked in 2 traveling bags in Air XXX and boarded the plane. When she reached Palawan, her traveling bags are missing. Is Air XXX liable for damages? YES, Air XXX in negligent. As a common carrier, it has the obligation to observe utmost diligent in transporting goods. Since it failed to observe that obligation, Air XXX was held liable for damages for the loss of the traveling bags.

  1. Negligence ā€“ the omission of that diligence required by the nature of an obligation and corresponds to the circumstances of person, time and place. One of the obligations of the Obligor is to observe due diligence in the performance of his obligation. Hence, if the diligence required was not observed, there may be liability. Two Kinds of Diligence a. Diligence of a good father of a family or ordinary diligence - a kind of diligence that must be observed by the obligor in general b. Utmost diligence or extraordinary diligence ā€“ this is the highest degree of care. This must be observed only when the law so provides or when the parties so agree. Under the law, a common carrier must observe extraordinary diligence in vigilance over the goods and for the safety of the passenger transported by them. Scenario 7: After a week, Mr. Lee went to a pawnshop to have the diamond ring be checked. The pawnshop declared that it is fake. Why is this considered as casual fraud?
  1. Delay ā€“ the delay referred herein is legal delay. This means that when the maturity date within which to perform the obligation was not performed, the creditor should demand its fulfillment for the debtor to be considered in delay. The general rule is that ā€œNO DEMAND, NO DELAY.ā€ Therefore, if the creditor did not demand for the performance of the obligation, the creditor cannot go to court to sue the debtor. Hence, demand is necessary. Ways to Demand the Fulfillment of the Obligation a. Judicial Demand ā€“ the creditor goes to court to fix the period within which the debtor will perform the obligation b. Extra Judicial Demand ā€“ the creditor writes a demand letter or demand orally Scenario 8: Mr. Bee, who is a resort owner, entered into a contract of loan with Mr. Cee amounting to PHP500,000 to be paid on December 5, 2018. When the said date, came, Mr. Bee failed to pay. Is Mr. Bee already in legal delay? Not yet, because Mr. Cee did not demand the fulfillment of obligation. On December 15, 2018, still no payment was made, is Mr. Bee already in delay? No, net yet because Mr. Cee did not demand yet. Can Mr. Cee go to court to demand the fulfillment of the obligation? No, the case will be dismissed, because no demand has been made. On December 28, 2018, Mr. Cee wrote a letter to Mr. Bee demanding the payment of PHP500,000. He also gave Mr. Bee 10 days to settle his due. However, after 10 days, Mr. Bee did not settle the loan.

Scenario 10: (Illustrative Case): AIR FRANCE versus RAFAEL CARRASCOSO G.R. No. L- 21438 September 28, 1966 Fact: The plaintiff, Rafael Carrascoso, paid for and was issued a ā€œFirst classā€ ticket by Air France from Manila to Rome. During a stopover in Bangkok, the manager of Air France asked the plaintiff to vacate his seat because a white man has a ā€œbetter rightā€ than him. At first, the plaintiff protested, but, as things got heated up, he was asked by the other Filipinos on board to give up his seat and transfer in the tourist class. After the trip, Carrascoso sued Air France for the embarrassment and inconvenience he suffered. Issue: Is Air France liable for contravention of the tenor of obligation? The trail court awarded damages to the plaintiff which was affirmed by the Court of Appeals. Air France assailed the decision. According to them, the issuance of a first class ticket does not guarantee Carrascoso a seat in the first Class. Decision: Yes. Air France is liable based on culpa contractual and culpa aquiliana. Why? Explain your answers. For Culpa Contractual - There exists a contract of carriage between Air France and Carrascoso. There was a contract to furnish Carrascoso a first class passage; Second, That said contract was breached when Air France failed to furnish first class transportation at Bangkok; and Third, that there was bad faith when Air France ā€™ s employee compelled Carrascoso to leave his first class accommodation berth ā€œafter he was already seatedā€ and to take a seat in the tourist class, by reason of which he suffered inconvenience, embarrassments and humiliations, thereby causing him mental anguish, serious anxiety, wounded feelings and social humiliation, resulting in moral damages. The Supreme Court did not give credence to Air Franceā€™s claim that the issuance of a first class ticket to a passenger is not an assurance that he will be given a first class seat. Such claim is simply incredible.

Different Kinds of Damages

  1. Actual or Compensatory Damages
  2. Moral Damages
  3. Nominal Damages
  4. Temperate or Moderate Damages
  5. Liquidated Damages
  6. Exemplary or corrective Damages Different Kinds of Obligation
  7. Pure Obligation - one which is not subject to a period or condition and is demandable at once.
  8. Conditional Obligation - is one where the obligation is subject to a condition. It is demandable upon the happening or non-happening of the condition.
  9. Obligation with a period - an event which will certainly happen; Thus, the happening or the arrival of the period gives rise to an obligation or extinguishment of it.
  10. Joint and Solidary Obligation - there are several debtors and one or more creditors, but each debtor is only liable for his share of the debt and each of the creditors to his share of credit. It is always presumed that the obligation is Joint.
  11. Alternative Obligation
  12. Facultative Obligation For Culpa Aquiliana - Here, the SC ruled, even though there is a contract of carriage between Air France and Carrascoso, there is also a tortuous act based on culpa aquiliana. Passengers do not contract merely for transportation. They have a right to be treated by the carrierā€™s employees with kindness, respect, courtesy and due consideration. They are entitled to be protected against personal misconduct, injurious language, indignities and abuses from such employees. So it is, that any rule or discourteous conduct on the part of employees towards a passenger gives the latter an action for damages against the carrier. Air Franceā€™s contract with Carrascoso is one attended with public duty. The stress of Carrascosoā€™s action is placed upon his wrongful expulsion. This is a violation of public duty by the Air France ā€” a case of quasi-delict. Damages are proper.