ce laws chapter 1 - 3

8/9/2019 CE Laws Chapter 1 - 3

1/96

ENGINEERING CONTRACTS,SPECIFICATIONS AND ETHICS

CHAPTER 1:

INTRODUCTION TO CONTRACTS


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INTRODUCTION TOCONTRACTS

GENERAL CONSIDERATION

Without being aware of it, each oneof us enters into a contract as oftenas the nee arises!


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OBLIGATION DEFINED

•

An ob"igation is a #uriica" necessit$to gi%e, to o or not to o!

• It co&es fro& the 'atin worobligare which &eans to binthrough gi%ing, oing or not oingso&ething!


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MEANING OF OBLIGATION “TOGIVE, TO DO OR NOT TO DO”

The ob"igation to gi%e is in essence area" ob"igation because a (h$sica"thing is in%o"%e an e"i%er$ of thesa&e e)tinguishes the ob"igation!


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REQUISITES OF AN OBLIGATION

*our essentia" re+uisites

• Juridical ti !r "i#culu$ - the "in.that bin the (arties

• Pr%tati!# - the gi%ing, oing ornot oing of so&ething



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REQUISITES OF AN OBLIGATION

*our essentia" re+uisites

• Acti" %u&'ct - the (erson whoho"s the right to e&an the(restation

• Pa%%i" %u&'ct - the (erson

against who& the (restation &a$ be



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SOURCES OF OBLIGATION

Artic"e //01 of the Ci%i" Coe enu&eratesthe sources of ob"igations, na&e"$

• 'aw

• Contracts• 2uasi3contracts• Acts or o&issions (unishab"e b$ "aw• 2uasi3e"icts



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OBLIGATIONS ARISING FROM LA(

• 'aw is a ru"e of conuct, #ust, ob"igator$,"ai own b$ the "egiti&ate authorit$ forco&&on obser%ance an bene4t!

• Without it, there wi"" be no orer in asociet$ which wi"" be ru"e b$ the &a)i&of what is &ight is right



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OBLIGATIONS ARISING FROMCONTRACTS

• A contract is the &eeting of &insbetween two (ersons whereb$ onebins hi&se"f with res(ect to theother to gi%e so&ething or renerso&e ser%ices!



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OBLIGATIONS ARISING FROMQUASI)CONTRACTS

A +uasi3contract is a #uriica" re"ationarising fro& "awfu", %o"untar$ anuni"atera" acts b$ %irtue of which the(arties beco&e boun to each otherto the en that no one sha"" beun#ust"$ enriche or bene4te at the

e)(ense of another!



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• Negotoriu& 5estio• So"utio Inebiti



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Negotoriu& 5estio - is the %o"untar$a&inistration or &anage&ent of an

abanon business or (ro(ert$be"onging to another without hisconsent!

• the &anage&ent &ust refer tos(eci4c a6airs

• the business or (ro(ert$ is neg"ecte

or abanone



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• there is no e)(ress or i&("ieauthorit$ fro& the owner

•

there is no (rohibition fro& theowner• the &anage&ent &ust be for an

intention to (rotect the interest ofthe owner



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So"utio inebiti - the #uriica" re"ationwhich is create b$ %irtue of a

(a$&ent b$ &ista.e, conse+uent"$,ob"iging the (a$ee to return to (a$erwhat he has recei%e



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OBLIGATIONS ARISING FROMCRIMES

Acts or o&issions (unishab"e b$ "aware better .nown as cri&es or e"icts,"i.e ho&icie or a&age to (ro(ert$through rec."ess i&(ruence!



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OBLIGATIONS ARISING FROMQUASI)DELICT

A +uasi3e"ict is a "ega" wrong co&&ittethrough fau"t or neg"igence causinga&age to a (erson or (ro(ert$ thereb$

ob"iging the wrong to (a$ for thea&age one, (ro%ie that there e)istsno contractua" re"ation between the&



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DILIGENCE REQUIRED IN THEPERFORMANCE OF AN OBLIGATION

E%er$ (erson ob"ige to gi%e so&ething isa"so to ta.e care of it with the i"igence ofa goo father of the fa&i"$, un"ess the "aw

or sti(u"ation of the (arties re+uiresanother stanar of care 7Artic"e //89:



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RIGHTS TO THE FRUITS OF THETHING TO BE DELI*ERED

The creitor has the right to the fruitsof the thing fro& the ti&e theob"igation to e"i%er arises



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RULE (HEN OBLIGOR INCURSDELA+

Those ob"ige to e"i%er or to oso&ething incur in e"a$ fro& the ti&ethe ob"igee #uicia""$ or e)tra #uicia""$e&ans fro& the& the fu"4""&ent oftheir ob"igation! The e&an b$ thecreitor sha"" not be necessar$ in

orer that e"a$ &a$ e)ist



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• when the ob"igation or the "awe)(ress"$ so ec"ares

• when fro& the nature ancircu&stances of the ob"igation ita((ears that the esignation of theti&e when the thing is to bee"i%ere or the ser%ice is to berenere was the contro""ing &oti%e

for the estab"ish&ent of the contract



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• when e&an wou" be use"ess, aswhen the ob"igor has renere it

be$on his (ower to (erfor&



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LIABILIT+ OF OBLIGOR FOR FRAUD, NEGLIGENCE, DELA+, ETC

Those who in the (erfor&ance of theirob"igation are gui"t$ of frau,neg"igence, or e"a$, an those who in

an$ &anner contra%ene the tenorthereof are "iab"e for a&ages 7Artic"e//1;:



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LIABILIT+ ARISNG FROM THEFORTUITOUS E*ENTE)ce(t in the cases e)(ress"$ s(eci4eb$ "aw, or when it is otherwiseec"are b$ sti(u"ation, or when thenature of the ob"igation re+uires the

assu&(tion of ris., no (erson sha"" beres(onsib"e for those e%ents whichcou" not be foreseen, or which,

though foreseen, were ine%itab"e



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-INDS OF OBLIGATION

The Ci%i" Coe c"assi4es ob"igation into

A! Pure an Conitiona"=! Ob"igations with a (erio

C! A"ternati%e an *acu"tati%eD! >oint an So"iar$E! Di%isib"e an Ini%isib"e*! Ob"igation with a Pena" Cause



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PURE OBLIGATION - A (ureob"igation is one which is not sub#ect

to an$ conition or buren an whosefu"4""&ent is neither e(enent u(on afuture or uncertain or e%en a (aste%ent un.nown to the (arties, hence,i&&eiate"$ e&anab"e!



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CONDITIONAL OBLIGATION - Aconitona" ob"igation is one whose

(erfor&ance is sub#ect to a conitionwhich &a$ either be sus(ensi%e orreso"utor$ in e6ect!

OBLIGATION (ITH A PERIOD - Anob"igation with a (erio is one in whicha a$ certain has been 4)e for its

fu"4""&ent!



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JOINT OBLIGATION - A #ointob"igation is one where the entire

ob"igation is to be fu"4""e(ro(ortionate"$ b$ the %arious ob"igorsor ebtors, an each one of theob"igees or creitors is entit"e ancan e&an a (ro(ortionate (art ofthe creit ue fro& each of the&!



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SOLIDAR+ OBLIGATION - A so"iar$ob"igation is e)act"$ the o((osite of a

#oint ob"igation in the sense that eachof the so"iar$ ebtors is "iab"e for theentire ob"igation as "ong as the sa&ehas not been (erfor&e, an each ofthe creitors an e&an co&("iance!



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DI*ISIBLE OBLIGATIONS - Ai%isib"e ob"igation is one ca(ab"e of

being (erfor&e (artia""$

INDI*ISIBLE OBLIGATION - This isthe e)act o((osite of i%isib"eob"igation as no (artia" (erfor&ance is(er&itte!



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OBLIGATION (ITH A PENAL CAUSE- An ob"igation which contains an

accessor$ unerta.ing to assu&e agreater "iabi"it$ in case of breach is anob"igation with a (ena" cause



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CHAPTER 2:

CONTRACTS


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DEFINITION OF A CONTRACT

The "aw e4nes a contract as a&eeting of the &ins between two(ersons whereb$ one bins hi&se"f,with res(ect to the other, to gi%eso&ething or rener so&e ser%ices!

CONTRACTS


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CONTRACT DIFFERENTIATED FROMAGREEMENT

Contract is often ti&es useinterchangeab"$ with the ter&agree&ent! A contract for&s asubi%ision of the @genus agree&entfro& which fo""ows that, whi"e e%er$contract is base on agree&ent, not

e%er$ agree&ent is a contract!

CONTRACTS


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STAGES OF A CONTRACT

•

Pre(aration or Conce(tion• Perfection or =irth• Consu&(tion or ter&ination

CONTRACTS


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CLASSIFICATION OF CONTRACTS

•

E)(ress an i&("ie contracts• Uni"atera" an bi"atera" contracts• Consensua" an rea" contracts• E)ecute an e)ecutor$ contracts• No&inate an inno&inate

contracts

CONTRACTS


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FREEDOM IN CONTRACTS

The freeo& to contracts asguarantee b$ the constitution isarticu"ate b$ Artic"e/9;8 of the coewhich (ro%ies that @the contracting(arties &a$ estab"ish suchsti(u"ations, c"auses, ter&s anconitions thereof &ust not be against

the "aw, goo custo&s, &ora"s , (ub"ic

CONTRACTS


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CONTRACTS AGAINST PUBLICORDER ANDPUBLIC POLIC+

Pub"ic (o"ic$ is &uch broaer than(ub"ic orer!

EQUALIT+ OF PARTIESUNDER THE CONTRACT

The "aw gi%es e+ua" staning or

treat&ent u(on the (arties, such that

CONTRACTS


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PARTIES BOUND UNDER THECONTRACT, E.CEPTION

The ru"e is that on"$ the (arties to thecontract an their assigns an heirsare boun thereto un"ess the rights

an ob"igations arising thereforecannot be transferre to the heirs anassigns of the (arties (ro%isions of

"aw!

CONTRACTS


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E)a&("es of intrans&issib"e rightsan ob"igations are

• =$ 'aw• =$ nature• =$ sti(u"ation

CONTRACTS


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STIPULATIONS IN FA*OR OF NON)PARTIES TO THE CONTRACTIf a contract shou" contain

sti(u"ations granting a fa%or to a(erson not a (art$ to the contract, the"atter &a$ e&an its fu"4""&ent

(ro%ie he co&&unicate hisacce(tance to the ob"igor beforere%ocation! This sti(u"ation, better

.nown as (our autri, &ust be c"ear"$

CONTRACTS


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CONSENSUAL CONTRACTS

Contracts are (erfecte b$ &ere

consent, an for& that &o&ent, the(arties are boun not on"$ to thefu"4""&ent of what has been e)(ress"$

sti(u"ate but a"so for theconse+uences which, accoring totheir nature, &a$ be in .ee(ing with

goo faith, usage an "aw!

CONTRACTS


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CONTRACTS CREATING REALRIGHTS

Rea" rights are those rights re"ating toi&&o%ab"e (ro(erties, "an anbui"ings, "i.e the right be"onging to a

&ortgagee or "essee of a (iece of"an!

CONTRACTS


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CONTRACTS CREATING REALRIGHTS

'aw (ro%ies that in contractscreating rea" rights, thir (erson whoco&e into (ossession of the ob#ect of

the contracts are boun thereb$sub#ect to the (ro%isions of theBortgage 'aw an 'an Registration

'aw!

CONTRACTS


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PROTECTION TO CREDITORS

• Creitors are (rotecte in cases of

contracts intene to efrau the&!

• A 4ctitious contract a"ienating the

ebtors on"$ (ro(ert$ in orer toesca(e (a$ing his creitor orcreitors &a$ be rescine at the

instance of the "atter for being

CONTRACTS


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THIRD PARTIES INTERFERINGIN THE CONTRACT

An$ thir (ersons who inucesanother to his contract sha"" be "iab"efor a&ages to the other (art$, an

instance where a stranger to acontract beco&es "iab"e for a&ages!

CONTRACTS


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CONTRACTS ENTEREDIN THE NAME OF ANOTHER

A contract entere into in the na&e ofanother without his authorit$, orwithout a "ega" right to re(resent hi&

or in e)cess of the authorit$ gi%en isunenforceab"e b$ action un"ess thecontact is rati4e e)(ress"$ or

i&("ie"$ b$ hi& before the other

CONTRACTS


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CONTRACTS ENTEREDIN THE NAME OF ANOTHER

A contract entere into in the na&e ofanother without his authorit$, orwithout a "ega" right to re(resent hi&

or in e)cess of the authorit$ gi%en isunenforceab"e b$ action un"ess thecontact is rati4e e)(ress"$ or

i&("ie"$ b$ hi& before the other

CONTRACTS


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CHAPTER 3:

E2UISITES O* CONTRACT


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ELEMENTS OF A CONTRACT

There is no contract un"ess the

fo""owing e"e&ents are (resent

• Consent of the contracting (arties

• Ob#ect certain which is the sub#ect&atter of the contract

• Cause of the ob"igation which is

estab"ishe!

CONTRACTS


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ELEMENTS OF A CONTRACT

If the contract "ac.s an$ of the sai

e"e&ents, the contract is nu"" an %oias if it ha not e)iste at a""!

CONTRACTS


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CONSENT, MEANING OF

• Is the confor&it$ of wi""s of the

contracting (arties u(on the ob#ectsan cause as we"" as the other ter&san conitions of the contract!

• It is &anifeste through the &eetingof the o6er which &ust be certainan the acce(tance which &ust be

abso"ute!

CONTRACTS


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RULE ON OFFER AND ACCEPTANCE

• 5enera" ru"e is that the (erson

&a.ing the o6er has inherent rightto 4) the ti&e, ("ace an &anner ofacce(tance!

• Once 4)e, the acce(tance &ust be&ae strict"$ in such &anner to gi%ebirth to the consent!

•

If this 4)ation is not fo""owe consent

CONTRACTS


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(HEN OFFER BECOMESINEFFECTI*E

• An o6er beco&e ine6ecti%e if beforeits acce(tance b$ the o6eree, theo6erors wi"" ie or su6er ci%i"

interiction or beco&es insane orinso"%ent!

CONTRACTS


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(HEN OFFER BECOMESINEFFECTI*E

• If an$ of these circu&stances wi""su(er%ene after the acce(tance hasbean &ae, the contract wi""

continue to ha%e force an e6ort butthe rights an ob"igations arisingtherefro& wi"" ecen to the heirs

an assigns of the (arties e(ening

CONTRACTS


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PUBLISHED AD*ERTISEMENTNOT AN OFFER

• =usiness a%ertise&ent of thingwhich are for sa"e in news(a(er asor &eia are not e4nite"$ o6ers but

&ere in%itations to &a.e o6er, anthe sa&e true as regarsa%ertise&ent ca""ing for biers to

&a.e (ro(osa"s!

CONTRACTS


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• In either case, the a%ertiser is notboun e%en if a (erson res(onsco&("ete"$ to the ter&s (ub"ishe

un"ess inication show otherwise!

CONTRACTS


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• An e)ce(tion to the ru"e howe%ercou" ta.e the for& of rewar for anact s(eci4e in the a%ertise&ent

CONTRACTS


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PERSON (HO CANNOT GI*ECONSENT

• Consent can on"$ be gi%en b$ (ersonwho ha%e ca(acit$ to act!

• If gi%en b$ (erson without ca(acit$to act or with is+ua"i4cation, theirconsent &a$ not gi%e birth to the

contract!

CONTRACTS


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*ICES ON CONSENT

The "aw enu&erates 4%e causes b$

which consent &a$ be %itiate orrenere efecti%e!

• Bista.e• io"ence• Inti&iation•

Unue Inuence•

CONTRACTS


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*ICES ON CONSENT

If the consent of the (art$ to the

contract is gi%en or secure throughthe state of run.enness or uringh$(notic s(e"" is %oiab"e!

CONTRACTS


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MISTA-ES RENDERINGCONTRACT DEFECTI*E

• In orer that &ista.es &a$in%a"iate consent, it shou" refer tothe substance of the thing which is

the ob#ect of the contract, or tothose conitions which ha%e(rinci(a""$ &o%e one or both

(arties to enter into the contract!

CONTRACTS


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MISTA-ES RENDERINGCONTRACT DEFECTI*E

• Bista.es as to the ientif$ or+ua"i4cation of one of the (arties wi""%itiate consent on"$ when such

ientit$ or +ua"i4cation ha%e beenthe (ri&ar$ cause of the contract!

CONTRACTS


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MISTA-E IN SUBSTANCE

Ta.es ("ace when both (arties thought

that the sub#ect &atter the$ areea"ing into oes not turn out to bewhat it e)act"$ is!

CONTRACTS


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O&'ct crtai#

• An ob#ect which &ust be certain isthe secon e"e&ent of a contract!

• A"" things which are within theco&&erce of &an inc"uing futurethings ha%ing (otentia" e)istence!

• Rights which are not intrans&issib"e!• Ser%ices which are not contrar$ to

"aw, &ora"s, goo custo&s, (ub"icorer an

&' i


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O&'ct crtai#

(ub"ic (o"ic$, an not i&(ossib"e ofco&("iance &a$ be the ob#ect of acontract!

• No contract &a$ be entere intou(on future inheritance e)ce(t incases e)(ress"$ authoriFe b$ "aw!

• Things or ser%ices, as ob#ect of thecontract &ust not be (h$sica""$ ori""ega""$ i&(ossib"e!

• As to ser%ice, i&(ossibi"it$ &a$ be

Out%id t/ c!$$rc


71/96

Out%id t/ c!$$rc!0 $a#

• It has been he" that a &unici(a"counci" cannot se"" or "ease (ub"ic(ro(ert$, such as ("aFas, streets,co&&on "ans, ri%ers, briges, etc!because the$ are outsie theco&&erce of &anG If it has been

one so b$ "easing (art of the ("aFathe "ease is nu"" an %oi, for it iscontrar$ to "aw, an the thing "ease

cannot be the ob#ect of the contract!


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T/i#1% /a"i#1 2!t#tial


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T/i#1% /a"i#1 2!t#tial3i%t#c

• Things ha%ing (otentia" e)istence arethose which are sure to co&e barringon"$ unforeseen e%ents a"though not $et

(ossesse!E)a&("e Bangoes fro& e)isting &angotrees for the co&ing seasonG grains that

&a$ be har%este fro& a e4nite area ofrice "anG &i". that a cow wi"" $ie" in theco&ing $ear or $oung ani&a"s fro& ae4nite &other cow!

I#tra#%$i%%i&l ri1/t% a#d


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I#tra#%$i%%i&l ri1/t% a#d%r"ic%

• Rights which are intrans&issib"ecannot be the ob#ect of a contractbecause the$ are either too (ersona"to the (arties or are not (er&itte b$"aw to be the ob#ect of contract!

E)a&("e Right to %ote an be %oteu(onG those e&anating fro&&arriage an (ersona" re"ationshi(!


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c $u% d t i t


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dtr$i#at,

3c2ti!#%• The ob#ect of a contract &ust beeter&inate as to "ea%e no oubt asto which is intene fro& the .inwhere it be"ongs, or &ust ha%ee4nite "i&its!

• The fact that the +uantit$ is not

eter&inate is not an obstac"e to thee)istence of the contract, (ro%ie it(ossib"e to eter&ine what the

ob#ect is without the nee of a new

c $u% d t i t


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dtr$i#at,

3c2ti!#%E)a&("e A contract whose ob#ect isescribe as the 4rst batch of"anFones fro& a 4%e3hectare "an inPaete, 'aguna, in which the +uantit$is not ca(ab"e of the eter&inationat the ti&e of the contract is a

eter&inate ob#ect!


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ENGINEERING CONTRACTS,

SPECIFICATIONS AND ETHICS

CAUSE OF CONTRACTS

C i 0


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Cau%, $a#i#1 !0

• A cause which &ust be in e)istence atthe ti&e of the contract is the "aste"e&ent of a %a"i contract!

• Cause or consieration is the i&&eiate,irect an (ro)i&ate reason wh$ a (art$enters into the contract an without

which the contract beco&es nu""it$!• Cause &a$ either be onerous,re&unerator$ or gratuitous!


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R t C t t


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R$u#at!r4 C!#tract%

• In this contract, the cause orconsieration is then ser%ice orbene4t which is re&unerate or(ai!E)a&("e The (rofessiona" fee of anengineer who (ursuant to a contract

with a c"ient (re(ares the ("an oresign of the "atters resientia"house!

G t it C t t


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Gratuit!u% C!#tract%

• In this contract, or one of thebene4cence, the cause orconsieration is (ure "ibera"it$ on the(art of the benefactor! The ob"igoroes not recei%e an$ %a"uab"e or&ateria" consieration! The "ibera"it$

or cause of in this case is the innersatisfaction of the gi%er of ha%ingone or gi%en a %a"uab"e fa%or or

he"( to the recei%ing (art$!


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M!ti"% i# #tri#1 i#t! a


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1c!#tract

• Particu"ar &oti%es of the (arties inentering into contract are i6erentfro& the cause!

• The &oti%e is the s(ecia" or (ersona"reason of a (art$ wh$ he entereinto the contract, as istinguishe

fro& the cause of the contract!• Boti%e has reference to the (erson

an cause refers to the contract!

M!ti"% i# #tri#1 i#t! a


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1c!#tract

E)a&("e In a sa"e of a new car for/;,;;;!;; Ph(, the &oti%e of the(urchaser &a$ be is to gi%e it to hiswife, whereas, the ea"ers &oti%e is(erha(s to rein%est the &one$strict"$ for business (ro4t which is

a"so (ersona" to hi&!

C!#tract% 5it/!ut cau% !r


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5it/ ill1al cau%

• Contract without a cause or with ani""ega" cause, (rouces no e6ectwhatsoe%er!

• Cause if it is contrar$ to "aw, &ora"s,goo custo&s, (ub"ic orer an(ub"ic (o"ic$!

E)a&("e When a ee of sa"e statesthat the se""er recei%e the (rice of

the thing when the truth of the



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5it/ ill1al cau%

the ob#ect of the contract be$on thereach of the se""ers creitors! In thiscase, e%en if there is a ee of sa"e,the contract is %oi as the "aste"e&ent is "ac.ing!

• If the contract has an un"awfu"

cause, it is as if no contract has beenentere into because the "aw(rohibits or consiers the cause as

i""ega"!



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5it/ ill1al cau%

E)a&("e A contract to istributecontrabansG to ea" in (rohibiterugs where both the &anufactureran ea"er are un"icenseG contractsrestraining the ow of trae as whena (art$ hoars rice or sugar to create

arti4cia" shortageG or a contract torefrain fro& (rosecuting a cri&e fora &onetar$ cause!

Stat$#t !0 a 0al% cau% i#


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c!#tract

• The state&ent of a fa"se cause incontracts sha"" rener the& %oi, if itshou" not be (ro%e that it is truean "awfu"! This &eans that it isincu&bent u(on the (art$ enforcingthe contract to (ro%e that there e)ist

another cause which is "awfu" if theother (art$ c"ai&s the cause to befa"se!

Stat$#t !0 a 0al% cau% i#


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c!#tract

E)a&("e J signs a contract of sa"estating that he so" an e"i%ere a=eta&a) to K for /;,;;;!;; Ph( which

the "atter (ai in cash! The truth of the&atter howe%er is that K i not (a$ an$a&ount to J as the "atters (ur(ose is to("ace the =eta&a) be$on the reach ofan a(("iance 4r& to which he ha not(ai the co&("eteG insta""&ent(a$&ents!


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Pr%u$2ti!# !0


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2c!#%idrati!#

• A"though the cause is not state in thecontract, the sa&e is (resu&e to e)istan is "awfu", un"ess the ebtor (ro%es the

contrar$! This &eans that e%er$ contract is(resu&e to be base on a cause orconsieration which is "awfu" an e)isting,such that the (art$ against who& the

contract is enforce is re+uire to (ro%e"ac. or i""ega" consieration, otherwise thecontract continues to retain its %a"iit$!


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L%i!# !r i#ad6uac4 !0


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cau%

• 'esion or inae+uac$ of cause sha"" notin%a"iate a contract, un"ess there hasbeen frau or unue inuences!

• 'esion is si&("$ the a&age su6ere b$a (art$ because the (rice is un#ust orinae+uate!

• It oes not a%oi or in%a"iate thecontract un"ess the (rice is so gross"$inae+uate as to a&ount to (ractica""$ afrau, o((ression or unue inuence!



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cau%

E)a&("e J, a isa$an resient, isthe owner of a 0;; s+uare &etersresientia" "ot in Taga$ta$ Cit$!Without .nowing that the cost (ers+uare &eter! Uner thecircu&stances, the "esion of ;;!;;

Ph( (er s+uare &eter he su6erewi"" not in%a"iate the contract! =ut if

K or a thir (erson ha e"iberate"$

use frau or unue inuence,



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cau%

or K ha co&&itte a substantia"&ista.e, "esion su6ere &a$ be abasis of an action to in%a"iate thecontract!

ce laws chapter 1 - 3

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