Sources of Obligation

           1. LAW – Imposed by law

-         -  A wife was about to deliver a child. Her neighbor brought her to hospital. Who should pay the hospital bill – Husband or Neighbor? 

-         -P.D. 1517 grants the right of first refusal to person who has leased for more than 10 years an urban land and who construct his house thereon. Lessee of a Condo in Manila now claims his right of first refusal because he has been living in the unit for almost 15 years. Decide. 

-         - Obligations derived from law are not presumed.

-         - In a newspaper ad, there was an offer to replace 30 sachets of Tide for one Venetian cut Glass until the end of the year. At the end of the year, you present your tide sachets, but Tide refused to honor it anymore since the ad was posted more than half a year ago. Decide. 657 

a. Quasi-contracts – Juridical relations based on the principle that no one shall be unjustlyenriched or benefited at the expense of another. 

-         i.i. Negotiorum  Gestio – When a person voluntarily takes charge of the      

                   management of a business or property of another that has  

                    been neglected or abandoned, without any power from the

                    latter, as a consequence of  which, he is obliged to continue

                   the same until the termination of the affair or to require the   

                    owner to substitute him. Ex. NPA infested area Fishpond

      -  ii.ii.  Solutio indebiti - When a person unduly delivers

                 a thing through mistake  to another who has no right to

                  demand it.(melon bank v. Javier)

  b. Crimes  (acts or omission punished by law) 

If you commit a crime, you are liable bothcriminally and civilly for the consequence of  your acts or omissions such as restitution,reparation for damages caused and indemnification for consequential damages.

Ex. Support for impregnated rape victim; loss of earning capacity of murder victim

 c.  Quasi delict or Torts – The fault or negligence of a person

 who, by his act or omission, independent from any contractual

 relation, causes damage to another person 

·        A 3-year-old child was bitten by a dog of her neighbor. As a result, she got infected by rabies and died. Can the neighbor be held liable for the acts of the dog? 

·        A signboard of hanging out of a building dropped on a car resulting in total wreck of the car. The car owner sues the building owner and demand to replace the car. Building owner cites the strong wind as force majeure condition indicating no fault on his part. Decide.

         2.2. Contracts 

·        Have the force of law between the contracting parties and should be complied with in good faith.

·        Sincerity and Honesty