...nominate contract whereby one of the contracting parties obligates himself to transfer the ownership of and to deliver a determinate thing and the other to pay therefor a price certain in money or its equivalent. Delivery and payment in a contract of sale are so interrelated and intertwined with each other that without delivery of the goods there is no corresponding obligation to pay. The two complement each other. It is clear that the two elements cannot be dissociated, for the contract of purchase and sale is essentially a bilateral contract, as it gives rise to reciprocal obligations. (Pio Barretto Sons, Inc. vs. Compania Maritima, 62 SCRA 167). Neither is the delivery of the thing bought nor the payment of the price necessary for the perfection of the contract of sale. Being consensual, it is perfected by mere consent. Contract to sell exclusive right and privilege to purchase an object. a bilateral contract whereby the prospective seller, while expressly reserving the ownership of the subject property despite delivery thereof to the prospective buyer binds himself to sell the said property exclusively to the prospective buyer upon fulfilment of the condition agreed upon, that is, full payment of the purchase price. Absent a proviso in the contract that the title to the property is reserved in the vendor until full payment of the purchase price or a stipulation giving the vendor the right to unilaterally rescind the contract the moment...
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...OBLIGATIONS AND CONTRACTS REVIEWER TITLE I – OBLIGATIONS CHAPTER 1 GENERAL PROVISIONS 1156. An obligation is a juridical necessity to give, to do, or not to do. JURIDICAL NECESSITY – juridical tie; connotes that in case of noncompliance, there will be legal sanctions. • • An obligation is nothing more than the duty of a person (obligor) to satisfy a specific demandable claim of another person (obligee) which, if breached, is enforceable in court. A contract necessarily gives rise to an obligation but an obligation does not always need to have a contract. KINDS OF OBLIGATION A. From the viewpoint of “sanction” - (a) CIVIL OBLIGATION – that defined in Article 1156; an obligation, if not fulfilled when it becomes due and demandable, may be enforced in court through action; based on law; the sanction is judicial due process (b) NATURAL OBLIGATION – defined in Article 1423; a special kind of obligation which cannot be enforced in court but which authorizes the retention of the voluntary payment or performance made by the debtor; based on equity and natural law. (i.e. when there is prescription of duty to pay, still, the obligor paid his dues to the obligee – the obligor cannot recover his payment even there is prescription) the sanction is the law, but only conscience had originally motivated the payment. (c) MORAL OBLIGATION – the sanction is conscience or morality, or the law of the church. (Note: If a Catholic promises to hear mass for 10 consecutive...
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... | |II. |Course Title |: |OBLIGATION AND CONTRACTS | |III. |Course Credit |: |3 units | |IV. |Course Description |: |This course deals with the basic principles of law in relation to contracts and obligations. It involves discussion of the nature, sources, kinds and extinguishments of contracts and | | | | |other miscellaneous topics relevant to the course. Topics include general legal concepts of enforceable rights of obligation: types of laws and national legal systems: nature, purpose,| | | | |scope and key principles of national legislation; sources of obligations; kinds of obligations under the Civil Code; specific circumstances affecting obligations in general (fortuitous| | | | |events, frauds, negligence, delay and breach of contract); duties of obligor to do or not to do; extinguishment of obligation; general principles of the law of contracts, elements and | | |...
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...OBLIGATIONS AND CONTRACTS OBLIGATION- Art. 1156. An obligation is a juridical necessity to give, to do or not to do. CHAPTER 1. – GENERAL PROVISIONS Arts. 1156 –1162: ELEMENTS OF AN OBLIGATION: 1. Active subject (obligee/creditor)- one in whose favor the obligation is constituted; one who has the right to demand fulfillment of the obligation 2. Passive subject (obligor/debtor)-one who has the duty of giving, doing or not doing 3.Object or prestation-subject matter of the obligation; the obligation to give, to do, or not to do 4. Vinculum- juridical/legal tie; binds the parties to the obligation; reason why the obligation exists. REQUISITES 1. It must be licit (otherwise it is void) 2. It must be possible, physically and juridically (otherwise it is void) 3. It must be determinate or determinable(otherwise it is void) 4. It must have pecuniary value SOURCES OF OBLIGATION Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. LAW (OBLIGATION EX-LEGE) •Must be expressly or impliedly set forth and cannot be presumed CONTRACT (OBLIGATION EX CONTRACTU) •Must be complied with in good faith •It is the “law” between parties; •Parties may freely enter into any stipulation provided they are not contrary to law, morals, good customs, public order or public policy QUASI-CONTRACT (OBLIGATION EX QUASI-CONTRACTU) •Juridical...
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...not be able to comply with my obligation to the University and the College of Commerce with this absence. The question is why do I have the obligation to the school to teach Law1, anyway? What is my relationship to the school such that it can impose consequences on my non-compliance? In other words, what is the source of my obligation to teach? In exchange, is the school obligated to do something for me in return or exchange for my duty? Your employment is an agreement that you and the University and the College of Commerce have; it imposed on you a positive personal obligation. You are an obligor, indebted to teach Law 1 to classes that the College, your obligee, assigns to you. Such obligations are sourced from your contract with the employer and the state laws on employment. In exchange for your duty, the University is obliged to pay you a salary considered fair by both you and the law. 2. “Family first,” we hear every now and then. In the case of one famous politician and cabinet member, it’s “famiLATE first,” because he has once said he does not take the train or the public commute even if the traffic will cause him to be late because he is the one bringing his kids to school every morning. Anyway, how about these familial obligations, the fact for example that I am driving my visiting eldest brother and his family today? The duty seems to come naturally, hence, a natural obligation. What is that? Is that even a legal obligation? Can you give other examples?...
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...insolvency of the debtor; acceptance by the creditor of the cession and plurality of debts b. initiative for substitution must emanate from the old debtor; consent of the new debtor; acceptance by the creditor and old debtor must be released from his obligation c. must be intelligent, free, spontaneous and real; must be manifested by the concurrence of the offer and acceptance and parties must possess the necessary legal capacity d. creditor’s satisfaction; alienation of the debtor’s property to the creditor and pre-existing debt of money between the parties 2. It is a remedy where through written instrument, the parties can conform their real intention as when some error has been committed. a. prescription of instruments b. ratification of instruments c. reformation of instruments d. novation of instruments 3. These are contracts where in all the necessary elements for its legitimacy are present but the consent is rejected due to lack of legal capacity by one of the parties, violence, fraud, mistake or intimidation even though there may have been no damage to the contracting parties. a. Rescissible contracts b. Fraudulent contracts c. Voidable contracts d. Pending contracts 4. Which of the following scenarios exhibits Dolo Causante? a. A certain petroleum company allegedly mixed one quart of diesel for every four quarts of unleaded gasoline prior to deliver to its branches in Metro Manila. Thus their price of unleaded...
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...Bloggs 2 1.1 Corporate Structure 2 1.2 Formation of a proposed company 2 1.3 Registration 2-3 Section 2 Memorandum of Association 3 2.1 Article of Association 4 2.3 Directors of Company 4-5 2.4 Secretary 5 2.5 Share Capital 5 2.6 Charges 5-6 2.7 Auditors 6 2.8 AGM or EGM 6 Section 3 Any Protection under Irish Company Law 6-7 Section 4 Conclusion` 7 Reference 8 Appendix Appendix A Company limited by share 9 Appendix B Duties of Shareholders 9 Appendix C Directors/Secretary/ Companies 9-10 Appendix D Directors Responsibilities 10-11 Appendix E Secretary Responsibilities 11 Appendix F Ten points to contracts 11 Appendix G Standard form contract 12 Appendix H General Principles 13-20 Section 1 Memo to Joe Bloggs Relating to going in to business with the Corcorcan brothers in the manufacture of hurleys and protection of supply of Ash in Poland. 1.1 Corporate Structure. Recommend a private company limited by shares. Consisting of 4 members, 3 Corcorcan brothers and Joe Bloggs. Corcoran brothers well supply facilities, contacts, accountancy knowledge and marketing. You will supply web based sales knowledge. Each member must contribute a nominal sum of money and be issued with shares. The right of members to transfer their shares is restricted, under Article of Association. You must request 26% or more...
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...The Law of Contract confines itself to the enforcement of voluntarily created civil obligations Abstract This assignment focuses to determine the relationship between the Law of Contract and voluntarily created civil obligations. It is intended to find out how contract law defines its scope within the enforcement of civil obligations. Civil obligations are raised from contracts, among several other sources of obligations. If the contracts are created voluntarily, the relevant obligations are thus voluntary. Since the contract law presumes that to create a contract there must be a common intention of the parties to enter into legal obligations, it is also assumed that the parties will enter into a contract voluntarily. When it comes to the discussion about civil obligations, contract law defines its boundary within the enforcement of civil obligations. This research paper was created with the motive to finding out how the contract law confines itself to the enforcement of civil obligations. Introduction We enter into contracts in our everyday general activities. Paying fare to the taxi driver amounts to entering into a contract. When you recharge your prepaid cell phone account, you have entered into a contract. You go to a restaurant and take snacks; you have entered into a contract. In such cases, we do not even realize that we are making a contract. In the case of people engaged in trade, commerce and industry, they carry on business by entering into contracts. But who ensures...
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...‘The Law of Contract confines itself to the enforcement of voluntarily created civil obligations’-illustrate and explain. Rifatul Ahsan Yasdany ID: 102 0273 030 Law 200 Section-09 Date: 22-02-2013 Declaration i. The topic referred to in this assignment has not been submitted for another degree or qualification of this or any other University or other Educational Institution. And ii. The ownership of any Intellectual property rights, which may be described in this paper, is vested in the North South University, subject to any prior agreement to the contrary, and may not be made available for use by third parties without the written permissions of the University, which will prescribe the terms and conditions of any such agreement. Title: ‘The Law of Contract confines itself to the enforcement of voluntarily created civil obligations’-illustrate and explain. ABSTRACT This essay attempts to focus on the scope of the law of contract in relation to its enforcement capability of voluntarily created civil obligation. In an attempt to do so, the basic elements of the law of contract were discussed. Then attention was directed to civil obligation. Various interpretation of the civil law or obligation revealed its voluntary nature. Then in an attempt to create a link between the law of contract and civil obligation, both the concepts were related and it was found out that contract law did indeed enforce voluntary civil obligations. Finally, this view was countered...
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...LAW REVIEWER TABLE of CONTENTS OBLIGATIONS Table of Contents Chapter II. Nature and Effect of Obligations93 I. Kinds of Prestations ............................93 II. Breach of Obligation............................94 III. Fortuitous Event (Force Majeure) .......96 IV. Remedies to Creditors ........................96 V. Usurious Transactions and Rules on Interest .........................................................97 Chapter III. Different Kinds of Obligations ..98 I. Pure and Conditional Obligations .......98 II. Reciprocal Obligations ......................100 III. Obligations with a Period ..................100 IV. Alternative and Facultative Obligations 101 V. Joint and Solidary Obligations ..........103 Effects of Prejudicial and Beneficial Acts (Art.1212) ...................................................105 VI. Divisible and Indivisible Obligations..106 VII. Oblligations with a Penal Clause ..106 Chapter IV. Extinguishment of Obligations .......................................................................107 I. Payment or Performance ..................107 II. Loss or Impossibility..........................109 III. Condonation or Remission of the Debt 109 IV. Confusion or Merger of Rights ..........110 V. Compensation ...................................110 VI. Novation ............................................111 Charts: Payment & Performance ................114 90 OBLIGATIONS Chapter I. General Provisions......
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...| SUMMARY OF MAJOR CHANGES TO | |DFAS-IN REGULATION 37-1, CHAPTER 8 | |“OBLIGATION MANAGEMENT” | | | |All changes are denoted by blue font | | | |Substantive revisions are denoted by a ( preceding the section, | |paragraph, table or figure that includes the revision | | | |Hyperlinks are denoted by underlined, bold, italic, blue font | |PARA |EXPLANATION OF CHANGE/REVISION...
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...ATENEO CENTRAL BAR OPERATIONS 2007 Civil Law SUMMER REVIEWER OBLIGATIONS AND CONTRACTS • TITLE 1 - OBLIGATION • Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n) CHAPTER 1. – GENERAL PROVISIONS See Arts. 1156 - 1162 ELEMENTS OF AN OBLIGATION: 1. Active subject (obligee/creditor): one in whose favor the obligation is constituted 2. Passive subject (obligor/debtor): one who has the duty of giving, doing or not doing 3. Object: prestation; the conduct which has to be observed by the debtor/obligor REQUISITES 1. it must be licit (otherwise it is void) 2. it must be possible, physically and juridically (otherwise it is void) 3. it must be determinate or determinable (otherwise it is void) 4. it must have pecuniary value a. Vinculum Juris: juridical/legal tie; binds the parties to the obligation b. Causa (causa debendi/causa obligationes): why obligation exists SOURCES OF OBLIGATION Art. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a) forth CONTRACT (OBLIGATION EX CONTRACTU) • Must be complied with in good faith • it is the “law” between parties; —Adviser: Dean Cynthia del Castillo QUASI-CONTRACT (OBLIGATION EX QUASICONTRACTU) • Juridical relation resulting from lawful, voluntary and unilateral acts, which has for its purpose, the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the expense of another. • Distinguished...
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...Two outstanding issues that could ensue are those of breach and frustration of a contract. A breach is an infraction of either the law or an obligation created through a contract (Bullon, 2003). A breach of contract arises when there is a violation of a contractual obligation through failure by a party to perform their own promise, or by repudiating the agreement, or even an interference with another party’s performance of their obligations (Garner, 2004). Breach of contract arises because Big Bank would be claiming that Systems Inc failed to honour their obligations within the agreed timelines. Frustration of a contract arises when the circumstances in which the contract is to be performed change very drastically out of certain unanticipated factors (Hodgin, 2006). When a contract is frustrated, the party seeking to rely on the frustration gets their duties discharged so that the contract becomes terminated (Jackson, 2006). The contract only becomes frustrated where it is demonstrated that its performance is impossible, as opposed to being onerous in nature as was so asserted in Paradine v Jane (1647) Aleyn 26; Sty 47. Frustration arises as a defense for Systems Inc because the company would be seeking to purge off the blameworthiness for Big Bank’s decision to rescind the contract. To prove this, it is highly probable that Systems Inc would point out the fact that the inability to change the data fields arose from the impossibility to contact Glenda Givealot who was...
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... we apply the core revenue recognition principal: Companies recognize revenue when goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services. 1. Key concept: the seller has one or more performance obligations. a. Performance obligations are promises to transfer goods or services to the customer. b. Revenue recognition is tied to satisfaction of performance obligations. C. Five steps are used to apply the principle: 1. Identify the contract with a customer. 2. Identify the performance obligation(s) in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to each performance obligation. 5. Recognize revenue when (or as) each performance obligation is satisfied. D. Key considerations for each of the five steps that we will learn about: 1. A contract establishes the legal rights and obligations of the seller and the customer. 2. Contracts can indicate that the seller has one or more performance obligations. 3. The transaction price is the amount the seller is entitled to receive from the customer. 4. If there are multiple performance obligations, the contract price must be allocated among them. 5. Recognize...
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...TERM PROJECT Question 4: For a performance obligation that an entity satisfies over time and expects at contract inception to satisfy over a period of time greater than one year, paragraph 86 states that the entity should recognize a liability and a corresponding expense if the performance obligation is onerous. Do you agree with the proposed scope of the onerous test? If not, what alternative scope do you recommend and why? According to paragraph 86 and 87, a performance obligation is onerous if the lowest cost of settling the performance obligation exceeds the amount of the transaction price allocated to that performance obligation. The lowest cost of settling the performance obligation is the lower of a) the costs that relate directly to satisfying the performance obligation by transferring the promised goods and services, and b) the amounts that the entity would be permitted to pay to exit the performance obligation. An entity should initially recognize an onerous performance obligation as a liability and update the measurement of the liability for this onerous performance obligation for changes in circumstances at each reporting date. The onerous test acts as an application of accounting conservatism in revenue recognition, which requires recognizing all probable losses as they are discovered and deferring revenue until it is verified. As providing users with important information by, in effect, remeasuring performance obligations to reflect significant adverse changes in...
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