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Summary Notes for Business Financial Management

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In-depth and easy-to-digest notes for Business related classes. A detailed summary review that can help for major exams

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ARTICLE 1160. Obligations derived from quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII, of this Book. (n)

What is quasi-contract?
 A quasi-contract is that juridical relation resulting from certain lawful,
voluntary and unilateral acts by virtue of which the parties become bound to
each other to the end that no one will be unjustly enriched or benefited at the
expense of another. (Art. 2142.)
 A quasi-contract is a contract that exists by order of a court, not by agreement
of the parties.
 Courts create quasi-contracts to avoid the unjust enrichment of a party in a
dispute over payment for a good or service.
 Quasi-contracts are governed by the Civil Code, more particularly, by Articles
2142-2175, Chapter 1, Title XVII.


In a contract
 Meeting of the minds or consent; the parties must have deliberately entered in
to a formal agreement.


In a quasi-contract
 There is no consent but the same is supplied by fiction of law.
 The law considers the parties as having entered into a contract, irrespective of
their intention, to prevent injustice.


Characteristics of a quasi-contract
1. Lawful – the act are unlawful
2. Voluntary – the act involved constitute a fault, negligence or lack of foresight.
3. Unilateral – where there is a meeting of the minds of the two parties.

,Kinds of quasi-contracts
1. Negotiorum gestio (management of business)
 The voluntary management of the property or affairs of another without
the knowledge or consent of the latter. (Art. 2144)
2. Solutio indebiti (the payment to one of what is not due to him)
 The juridical relation which is created when something is received when
there is no right to demand it and it was unduly delivered through
mistake. (Art. 2154)

,ARTICLE 1162. Obligations derived from quasi-delicts shall be governed by the
provisions of Chapter 2, Title XVII of this Book, and by special laws. (1093a)

What is quasi-delicts?
 A quasi-delicts is an act or omission by a person (tort feasor) which causes
damage to another in his person, property, or rights giving rise to an obligation to
pay for the damage done, there being fault or negligence but there is no pre-
existing contractual relation between the parties. (Art. 2176)


Requisites of quasi-delicts
Before a person can be held liable for quasi-delict, the following must be present:
1. Act or omission by the defendant
2. Fault or negligence of the defendant
3. Damage caused to the plaintiff
4. Direct relation or connection of cause and effect between the act or omission
and the damage
5. No pre-existing contractual relation between the parties.

, Crime distinguished from quasi-delict

Crime Quasi-delict
There is criminal or malicious intent or There is only negligence.
criminal negligence.
Affects public interest. Concerns private interest.
There are generally 2 liabilities – criminal There is only civil liability.
&
civil.
Purpose is punishment. Indemnification of the offended party.
Criminal liability cannot be compromised Can be compromised as any other civil
or
liability.
settled by the parties themselves.
The guilt of the accused must be proved The fault or negligence of the defendant
beyond reasonable doubt. need only be proved
by preponderance of
evidence.
The liability of the person responsible for Direct and primary.
the author of the negligent act or omission
is
subsidiary.

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