Obligations and Contracts Article 1156 to 1178 Explanation: A Basic Overview
The Philippine Civil Code is a set of laws that governs various aspects of civil life in the country. In particular, it contains provisions on obligations and contracts that dictate the relationships and responsibilities of parties involved in legal transactions. Articles 1156 to 1178 of the Civil Code are dedicated to the general provisions on obligations and contracts, outlining the fundamental principles that govern these legal agreements.
Article 1156 of the Civil Code states that «an obligation is a juridical necessity to give, to do, or not to do.» This means that an obligation is a legal requirement that a person must fulfill, whether it involves providing goods or services, performing a specific action, or refraining from doing something. Obligations can arise from contracts, torts, and other sources of law.
Article 1157 expands on the concept of obligations by introducing the element of fault. It states that «obligations arise from (1) law, (2) contracts, (3) quasi-contracts, (4) acts or omissions punished by law, and (5) quasi-delicts.» This means that a person can be held liable for an obligation if they have committed a wrongful act or failed to fulfill a legal duty.
Article 1158 lays out the criteria for a valid contract, which must have the following elements: (1) consent of the parties, (2) object certain which is the subject matter of the contract, and (3) cause of the obligation which is established. In addition, contracts must be entered into freely and voluntarily by parties who have the capacity to contract.
Article 1159 discusses the power of parties to stipulate terms and conditions in a contract, provided that they do not violate the law, morals, or public policy. This means that parties have the freedom to negotiate the terms of the contract, but they cannot agree on anything that is illegal, immoral, or against public interest.
Article 1160 establishes the principle of good faith in contractual relationships, stating that «obligations derived from contracts shall be governed by the principle of good faith and fair dealing.» This means that parties must act honestly and with integrity in their dealings with one another, and they cannot take advantage of the other party`s ignorance, weakness, or inexperience.
Article 1161 deals with the effects of an obligation, stating that «every obligation whose performance does not depend upon a future or uncertain event, or upon a past event unknown to the parties, must be complied with in good faith by the obligor.» This means that an obligation must be fulfilled as agreed upon by the parties, unless the contract or the law provides otherwise.
Article 1162 discusses the concept of conventional compensation, which allows parties to agree on the amount of damages to be paid in case of breach of contract. This means that parties can stipulate a specific amount of compensation for damages, instead of relying on the court to determine the amount.
Article 1173 establishes the requirement of diligence in the performance of obligations, stating that «the fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the persons, of the time, and of the place.» This means that parties must exert reasonable effort to fulfill their obligations, taking into account the circumstances of the situation.
Article 1174 discusses the concept of fortuitous events, which are unforeseeable events that prevent the fulfillment of an obligation. This means that a party may be excused from fulfilling their obligation if the event is beyond their control and cannot be foreseen.
Article 1175 deals with the concept of fraud, stating that «any person who willfully causes loss or injury to another in a manner that is contrary to morals, good customs or public policy shall be liable for damages.» This means that parties cannot engage in fraudulent conduct in contractual relationships, and they can be held liable for damages if they do.
Article 1178 establishes the statute of limitations for obligations, stating that «the action for the enforcement of all civil obligations arising from the sources enumerated in Article 1156 shall be demandable only for ten years, counted from the date the right of action accrues.» This means that parties must file a claim to enforce their rights within ten years from the time the right of action arises, or else it may be barred by the statute of limitations.
In conclusion, Articles 1156 to 1178 of the Philippine Civil Code provide a comprehensive framework for understanding the fundamental principles of obligations and contracts. These articles establish the requirements for valid contracts, the obligations of parties in contractual relationships, and the potential consequences of breach or non-performance. By understanding these provisions, parties can enter into legal agreements with greater confidence and clarity.