Course Work No.

2a
CHAPTER 2:
Nature and Effect of Obligations
The Law on Obligations and Contracts 2014
by Hector S. De Leon, Hector M. De Leon, Jr.

Abot, Sheryll Diane T.

School of Electrical, Electronics and Computer
Engineering
Mapa Institute of Technology
Muralla St., Intramuros, Manila Philippines

Medina, John Melliton

School of Electrical, Electronics and Computer
Engineering
Mapa Institute of Technology
Muralla St., Intramuros, Manila Philippines

sdtabot@gmail.com

Email

David, Mervin C.
School of Electrical, Electronics and Computer
Engineering
Mapa Institute of Technology
Muralla St., Intramuros, Manila Philippines

Suas, Mary Grace J.

School of Electrical, Electronics and Computer
Engineering
Mapa Institute of Technology
Muralla St., Intramuros, Manila Philippines

mervin.david51@yahoo.com

marygracesunas@yahoo.com

Abstract- This paper is all about the

summary of Chapter 2 which is about the
nature and effect of obligations. Problems 1
and 4 of the said section were also analyzed
and answered by the group.
Keywords- nature, effect, obligations
I.

INTRODUCTION

An obligation is a course of action that

someone is required to take, whether legal or
moral. There are also obligations in other
normative contexts, such as obligation of
etiquette, social obligations and possibly in
terms of politics, where obligations are
requirements which must be fulfilled.

An obligation is a legal bond (vinculum

juris) by which one or more parties (obligants)
are bound to act or refrain from acting. An
obligation thus imposes on the obligor a duty to
perform, and simultaneously creates a
corresponding right to demand performance by
the obligee to whom performance is to be
tendered. Obligations may be civil, which are
enforceable by action in a court of law, or
natural, which imply moral duties but are
unenforceable unless the obligor consents.
II.

DEFINITION OF TERMS

A. VINCULUM JURIS
A bond of law, whereby one party
becomes or is bound to another to do
something according to law.

B. OBLIGATION
An act or course of action to which a person
is morally or legally bound; a duty or
commitment.
C. LIABILITY
The state of being responsible
something, especially by law.

for

money paid regularly at a particular rate for

the use of money lent, or for delaying the
repayment of a debt.
L. USURIOUS TRANSACTIONS
The practice of making unethical or immoral
monetary loans that unfairly enrich the
lender.

D. NEGLIGENCE
III.
Failure to take proper care in doing
something
E. FRAUD
Wrongful or criminal deception intended to
result in financial or personal gain.
F. CONTRAVENE
violate the prohibition or order of (a law,
treaty, or code of conduct).
G. OBLIGANT

RELATED ARTICLES

ART. 1164. The creditor has a right to the

fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no
right over it until the same has been delivered to
him.
ART. 1175. Usurious transactions shall be
governed by special laws.
ART. 1170. Those who in the performance of
their obligations are guilty of fraud, negligence,
or delay and those who in any manner
contravene the tenor thereof, are liable for
damages. (Related Article)

A person bound by themself to a duty or

payment.
H. OBLIGEE
A person to whom another is bound by
contract or other legal procedure.
I. STIPULATED
Demand or specify (a requirement),
typically as part of a bargain or agreement.
J. CREDITOR
A person, bank, or other enterprise that has
lent money or extended credit to another
party.
K. INTEREST

IV.

ANSWER TO PROBLEMS

Problem 1
S (seller) sold to B (buyer) on July 5, a
horse named Silver to be delivered on July 20.
However, on July 15, S sold again and delivered
the horse to T. Who has a better right to Silver?
Solution: T acquires ownership over the

horse as S delivered on July 15. (ART.

1164). S shall be liable to B for Damages.
(ART. 1170)
Problem 4

D (debtor) borrowed P20,000 from C

(creditor) payable after one (1) year. Is D liable
to pay interest?
Solution:
D is liable to pay interest to C if ( ART.
1175):
(1) they have expressly stipulated that a certain
amount of interest may be recovered by C,
and

(2) there is a written agreement between D and

C about the interest
The payment of the interest is invalid if
there is no agreement on the interest per se.
V.

REFERENCES

[1] H. S. De Leon, The Law on Obligations and

Contracts, Quezon City, REX Printing
Company, 2014, pp. 34 80