1. CONTRACTS & OBLIGATIONS

2. Contracts & Obligations
meeting of minds of 2 or more contracting parties
Essential Elements of Contract
1. Consent
2. Subject Matter or object
3. Cause

3. Contracts & Obligations
Consent – conformity of wills (offer and acceptance) with respect to contracts
Offer – proposal made by one party to another to enter into a contract. It is a promise to act or refrain from acting on conditions that terms provided are accepted by the person to whom the offer is made.
- definite
- complete
- intentional

4. Contracts & Obligations
Object of contracts – is the thing , right or service which is the subject matter of the obligation arising from the contract. The object of obligation and the object of contract are identical.
Requisites of object
- must be within commerce of man
- must be licit, or not contrary to law, morals, good customs, public policy or public order.
- must be possible
- must be determinate

5. Contracts & Obligations
Cause of contracts – is the “why” of the contract , the immediate and most proximate purpose of the contract, the essential reason which impels the contracting parties to enter into it and which explains and justifies the creation of obligation through such contract

6. Contracts & Obligations
Stages of Contract
1. Preparation or conception
2. Perfection or birth
3. Consummation or death

7. Contracts & Obligations
Natural Elements – those which exist as part of the contract even if the parties do not provide for them.
Accidental Elements – those which are agreed upon by the parties and which cannot exist without being stipulated.

8. Contracts & Obligations
a juridical necessity to give,
to do or not to do.
Elements of Obligations
1. Active Subject – obligee/creditor
2. Passive Subject- obligor/debtor
3. Prestation / Object – required conduct
of debtor by the creditor
4. Efficient Cause- juridical tie/
the vinculum which may be
established by law, bilateral acts,
unilateral acts

9. Contracts & Obligations
Requisites of Prestation
1. It must be possible, physically
and juridically.
2. It must be determinate.
3. It must have possible equivalent
in money.

10. Contracts & Obligations
Civil Obligation-
that which gives a right of action
to compel its performance.
Natural Obligation
that which cannot be enforced by the court action but which are binding on the party who makes them, in conscience and according to equity and natural justice.

11. Contracts & Obligations
Kinds of Obligations according to subject matter:
1. Real Obligation – to give a thing
2. Personal Obligation – to do or
not to do
2.1 Positive personal obligation
2.2 Negative personal obligation

12. Contracts & Obligations
Sources of Obligations:
1. Law
2. Contracts
3. Quasi-contracts
4. Acts of omissions punished by law
5. Quasi-delicts

13. Contracts & Obligations
Law - when they are imposed by the law itself.
Contracts - when they arise from the stipulation of the parties.
Quasi-contracts- when they arise from lawful, voluntary and unilateral acts w/c are enforceable to the end that no one shall be unjustly enriched or benefited at the expense of another.

14. Contracts & Obligations
Crimes or acts of omissions punished by law - when they arise from civil liability w/c is a consequence of a criminal offense.
Quasi-delicts or torts - when they arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between parties.