moral or legal duty that requires an individual to perform, as well as the potential penalties for the failure to perform. An obligation is also a duty to do what is imposed by a contract, promise, or law.

one who is demanding the performance of the, obligation. It is he who in his favor the obligation is constituted, established or created. He is called the creditor or oblige.

The one bound to perform the presentation to give, to do or not to do. He is called the debtor or obligor.

It is the subject matter of the obligation either to give, to do, or not to

is the vinculum or unifying bond which binds the debtor and creditor.

This is an obligation, which if not fulfilled when it becomes due and demandable, may be enforced in court through action.

This is 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.

It arises not from the positive law but from the moral law developed by the church and not enforceable the court.

It is a kind of obligation in which only one of the parties is bound to fulfill a prestation.

This is a kind of obligation in which both parties are bound to perform a part in the obligation.

obligations arising from law are not presumed only those obligations expressly determined by law are demandable.

meeting of the minds whereby one binds himself with respect to other to give something or render some services.

certain lawful, voluntary, and unilateral acts, to the end that no one may be unjustly enriched or benefited at the expense of another This is not a contract because of the absence of meeting of the minds between the parties.

Under the Revised Penal Code of the Philippines, any person criminally liable is also civilly liable. The civil liability pertains to the damages that must be paid arising from the offense/ crime committed.

These are acts or omissions that cause damage to another, there being fault or negligence and there is no pre-existing contractual relation between the parties.

This is the kind of diligence that must be observed by the obligor in general.

This is the highest degree of care. This must be observed only when the law so provides or when the parties so agree.

referred to in Article 1170 of the Civil Code of the Philippines is the deliberate and intentional evasion of the normal fulfillment of obligation; it is distinguished from negligence by the presence of deliberate intent, which is lacking in the latter.

This is a fraud committed in the performance of an obligation already existing because of contract. The effect of this kind of fraud will make the debtor liable for damages only. Annulment of contract is not a remedy.

A fraud serious enough to render a contract voidable. The fraud is committed at the very beginning of the transaction in order to induce or convince the other person to enter into a contract. The remedy in this kind of fraud is to annul the contract plus damages.

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.

is the non-fulfillment of the obligation with respect to time. In order for the debtor to be in default, it is necessary that the following requisites must be present:

are awarded to enable the injured part-v to obtain means, diversions or amusements that will serve to alleviate the suffering he has undergone, by reason of the defendant's culpable action. are not meant to be punitive but are designed to compensate and alleviate the physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings, social humiliation, and similar harm unjustly caused to a person.

are also called corrective damages. It is imposed, by way of example or correction for the public good, in addition to moral, temperate, liquidated or compensatory damages. Our jurisprudence sets certain conditions when exemplary damages may be awarded

are awarded in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him.

moderate damages are more than nominal but less than compensatory damages. This will be recovered when the court finds that some pecuniary loss had been suffered but its amount cannot, from the nature of the case be proved with certainty.

are those awarded in satisfaction of, or in recompense for, loss or injury sustained. They simply make good or replace the loss caused by the wrong.

are those agreed upon by the parties to a contract, to be paid in case of breach thereof.

which could not be foreseen, or which, though foreseen, is inevitable. Fortuitous event is sometimes called Caso Fortuito. - extraordinary events not foreseeable or avoidable. It is, therefore, not enough that the event should not have been foreseen or anticipated, as is commonly believed but it must be one impossible to foresee or to avoid. The mere difficulty to foresee the happening is not impossibility to foresee the same.

- a meeting of the minds between two persons, whereby one binds himself, with respect to the other, to give something or render some service." - one of the sources of obligation; hence, if the obligation in the contract was not performed, one of the parties may have the right to sue the other.

essential requisite of a contract; the reason why the parties entered into a contract.

This is the first step. It begins from the time the prospective contracting parties manifest their interest in the contract and ends at the moment of agreement of the parties. In this stage, the parties will bargain or negotiate as to the terms and conditions. No meeting of the minds yet. Hence, there is still no contract at this stage.

After the bargaining or negotiation, the parties shall determine whether to accept, the terms and conditions. Once it is accepted then there is a contract (there is already meeting of the minds). This is the stage where the contract is perfected, and therefore, both parties must comply.

This is the stage where the contract is ended because the parties have fulfilled with their obligations.

The validity or performance or compliance of which cannot be left to the will of only one of the parties. The ultimate purpose to nullify a contract containing a condition which makes its fulfilment or pre-termination dependent exclusively upon the uncontrolled will of one of the contracting parties.

The parties are free to establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order or public policy. The presence of any of the limitations mentioned will render the contract void.

Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfilment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law.

This means that the contract entered into by the parties are binding only between them, their heirs and assigns, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the property he received from the decedent

Contracts which are valid contracts having all the essential requisites of a contract, but by reason of injury or damage caused to either of the parties therein or to third persons are considered defective and, thus, may be rescinded.

- contracts which are valid until annulled. - Article 1390 provides that, "The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties:"

A contract which cannot be enforced unless ratified,

equivalent to nothing and is absolutely wanting in civil effects. It cannot be validated either by ratification or prescription. But, although a void contract has no legal effects even if no action is taken to set it aside, when any of its terms have been performed, an action to declare its inexistence is necessary to allow restitution of what has been given under it.