Page 5 - Obligations & Contracts Module 1-2

Requisites of Object – Prestation to be valid:

a. licit/legal - if illicit, it is void

b. possible - if impossible, it is void

c. determinate or determinable – if indeterminable, it is void

d. pecuniary or with financial value

Sources Of Obligation:

1. LAW ( OBLIGATION EX LEGE ) - Must be expressly or impliedly set forth

and cannot be presumed or assumed.

2. CONTRACT ( OBLIGATION EX CONTRACTU ) - Must be complied with in

good faith because it is the “law” between parties; neither party may

unilaterally evade his obligation in the contract, unless:

a) contract authorizes it

b) other party approves

“Parties may freely enter into any stipulations, provided they are not

contrary to law, morals, good customs, public order or public policy.”