ARTICLE 1156- An obligation is a juridical necessity to

give, to do or not to do.

PRESTATION- is an obligation; more specifically, it is the
subject matter of an obligation consist of to give, not to
do or to do.
Doctrine:
MATAAS NA LUPA TENANTS ASSOCIATION v. CARLOS
DIMAYUGA AND JULIANA DIEGO Vda. De GABRIEL,
L-32049, JUNE 5, 1984
Under PD 1517, tenants- lessees are given
emptive or preferential rights( right of first refusal) if
they have occupied the land or lot for over ten years.
The owner has this obligationto grant the said
preference. Thus, he cannot sell to the third person
without first offering the same to the lessee. If the
latter renounces said right, the waiver must be in a
public instrument.
LEONIDES PENGSON v. COURT OF APPEALS
GR L- 65622, JUNE 9, 1984

-ACT OMISSION PUNISHABLE BY LAW

-QUASI-DELICT
- DELICT

1158(OBLIGATION)- OBLIGATION DERIVED FROM LAW

ARE NOT PRESUMED. ONLYTHOSE EXPRESSLY
DETERMINED IN THIS CODE OR IN SPECIAL LAWS ARE
DEMANDABLE, AND SHALL BE REGULATED BY THE
PRECEPTS OF THE LAW WHICH ESTABLISHES THEM;
AND AS TO WHAT HAS NOT BEEN FORESEEN, BY THE
PROVISIONS OF THIS BOOK.
OBLIGATION EX-LEGE
The duty to support-(ARTICLE 291, CIVIL CODE).
NO agreement is necessary before obligation ex-lege
can arise, but the law steps only because of human
actuations.
The action by the loser is called (indebitatus
assumpsit.= Leung Ben v. Obrien, 38 Phil. 182
Vda. De RECINTO v. INCIONG, 77 SCRA 196

If the owner of certain shares should pledge the

same to his creditor, and later said owner sells his
shares to a third person, the creditor cannot be
compelled to surrender the share certificates to the
buyer, and this refusal will not invalidate the sale.

A person who buys anothers property unaware

of the right thereto of some other party is to be
considered a buyer in a good faith. While he is liable, his
liability of a person in good faith.

PHIL. NATIONAL BANK v. COURT OF APPEALS

74 SCAD 786 (1996)

Meaning of the ARTICLE (BAR)

A local bank, while acting as local

correspondent bank, does not have the right to
intercept funds being coursed thru it by its foreign
counterpart for transmittal and deposit to the account
of an individual with another local bank, and thereafter
apply the said funds to certain obligations owed to it by
the said individual.

ARTICLE 1157- OBLIGATION ARISES FROM

-CONTRACT
- LAW
- QUASI-CONTRACT

Law says obligation derived from law are not

presumed the merely means that the obligation must
be clearly EXPRESS OR IMPLIEDLY set forth the law (THE
CIVIL CODE OR SPECIAL LAWS)
Doctrine:
HILARIO JARAVATA v. SANIGAN BAYAN, L-56170,
JAN.31, 1984
A high school principal has no legal obligation to
facilitate the release of the salary differentials of the
teachers under him. So if he receive reimbursement for
his expenses or as gifts he cannot be adjudged guilty

under the anti-graft law, for after all, he had no duty to

do facilication.
DE LA CRUZ v. NORTHERN THEATRICAL ENTERPRISES,
50 O.G. 4225, SEPT. 1954= movie house guard
acquitted. In this an employer is ordinarily not required
to furnish his employees with legal assistance, fo NO
law requires this.
CIVIL CODE AND SPECIAL LAWS CONFLICT
-when there is a stipulation in the new civil code.

Where the parties to a compromise agreement

signed and executed the same WILLINGLY AND
VOLUNTARILY, they are BOUND by its terms, even if the
COURT before which it was made had NO jurisdiction
over the case. In a regime of law and order, the
repudiation of an agreement validly entered into cannot
be made without any justifiable reason.NOTE:l THE
APPROVAL OF THE COURT HER IS IMMATERIAL; HAT IS
IMPORTANT IS THE MUTUAL CONSENT TO THE
COMPROMISE.
RIGHT TO ENTER IN A CONTRACT

ARTICLE 1159 (CONTRACT)- Obligation arising from

contract have the force of law between the contracting
parties and should be complied with in good faith.
OBLIGATION arising from the contract have the force of
LAW between parties, this does not means that the
LAW is inferior to contract.
CONTRACT must be enforced first be valid and it is not
contrary to the LAW. The right to stipulate is limited.
Hence, ARTICLE 1306 OF THE CIVIL CODE SAYS The
contracting parties may establish such stipulations,
clause, terms and conditions as they may deem
convenient, provided, they are not contrary to law,
morals, good customs, public order, or public policy.

LAWFUL CONTRACT= LIBERTIES OF THE PEOPLE OF THE

STATE
When contract is a public interest involved like in the
case of (labor of agreement), the government has the
right to intervene for the protection of the whole.
(LEYTE LAND TRANS. V. LEYTE FARMERS UNION, GR L
1977, MAY 12, 1948).
OBLIGATION AND COTRACTS DIFFERENCES
OBLIGATION is a result of the contract likewise the
CONTRACT results to an OBLIGATION.
QUASI- CONTRACT= NO MEETING OF MIND

If art. 1306 is complied with the contract should be

given effect even if at time it was entered into , no legal
provision existed governing it.
(QUIZANA V. REDUGERIO, 50 O.G 2444, JUN. 1954).

Doctrine:
GANZON v. JUDGE SANCHO, GR 56450, JULY 23, 1983

MEANING OF THE ARTICLE

If the mortgage is substituted by a guaranty or

surety bond without the consent of all the required
parties, the contract may be said to be impaired.

CAN ESCAPE FROM THE OBLIGATION WHEN ASSENTED

THERETO BY THE OTHER PARTY.
Compliance in good faith means that we must
interpret not by the letter that killeth but by the spirit
that giveth life
(WILLIAM GOLANGCO CONSTRUCTION CORP. V. PCIB,
485 SCRA 203 (2006)
Doctrine:
MARTIN v. MARTIN, et al, L- 12439, MAY 23 1959

HERMINA GODUCO v. CA, et al., L- 17647, FEB. 28

1964
If upon promise of the son-in law of a seller, an
agent sells on commission a parcel of land to a buyer,
said buyer, not having the promised to give the said
commission, is NOT liable therefor. Payment of the
commission must sought from whoever made the
promise to pay such amount, namely the son-in-law of
the seller.

MOLAVE MOTOR SALES, INC. v. LARON AND

GEMINIANO= GOVERNED BY CIVIL CODE NOT LABOR
CODE.
ARTICLE 1163- Every person obliged to give something
is also obliged to take care of it with the proper
diligence of a good father of the family, unless the law
or the stipulation of the parties requires another
standard of care.
Nature of the obligation = person , time, and place.

ARTICLE 1165- When what is to be delivered is a

determinate thing the creditor, in addition to the right
granted him by ARTICLE 1170, may compel the debtor
to make the delivery.
If the thing is indeterminate thing or generic, he may
ask that the obligation be complied with at the
expense of the debtor.
If the obligor delays, or has promised to deliver the
same thing to or more persons who do not have the
same interest, he shall be responsible for fortuitous
event until he has effected the delivery.

BERNABE AFRICA et al., v. CALTEX et al. L- 1986,

MARCH 31 1966= BOTO!!! RES IPSA LOQUITUR

OBLIGATION IN A SUBJECT MATTER VIEWPOINT

ARTICLE 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 real right over it
until it has been delivered to him.

Real obligation(to give)

- Generic
- Specific
Personal obligation (to do or not to do)

Personal right= real right

REMEDIES OF THE CREDITOR WHEN DEBTOR FAILS TO

COMPLY THE OBLIGATION

Kinds of Delivery

-actual
-constructive
Traditio longa manu- tudlo
Traditio brevi manu- already exist
Traditio constitutum possessorium- opposite to
brevi manu
Execution legal forms

IDEAL SHARE:
Doctrine:
GATCHALIAN v. ARLEGUI, 75 SCRA 234
When by virtue of the court judgement, a
person is ordered to deliver to another the possession
of a pro indiviso or ideal share of property, owned in
common, it is understood that what is contemplated is
symbolical or constructive delivery, not material or
actual delivery.
OBLIGATION ARISES= PERFECTION OF CONTRACT

Demand specific performance

Demand rescission or cancellation
Demand for damages

Doctrine:
UY v. PUZON, 79 SCRA 598
If the partner in a construction enterprise fails to fulfill
his commitments to the partnership, he is required to
indemnify his co- partner for the latter losses, such as
the money invested or spent by the latter.
EFFECTS OF FORTUITOUS EVENT to thing to be
delivered
- extinguish the obligation if determinate; generic does
not extinguish the obligation
INSTANCES THAT THE FORTUITOUS EVENT DOES
EXEMPT!!!!
-if the obligor delays
-if the obligor is guilty of BAD FAITH

ORDINARY DELAY DISTINGUISH FROM DEFAULT

ORDINARY- mere non-performance at the stipulated
time.
DEFAULT- delay amount to virtual non-fulfillment of
the obligation.
NO DEMAND NO DELAY!!!!
CASE:
YU TEK v. GONZALES, 29 PHIL 384
- Genus never perishes
- Seller liabilities since not yet perfected SALE
- Not the specific thing to deliver
GUITIERREZ REPIDE v. ALZELIUS,39 PHIL 190
- Pecuniary inability to pay does not
discharge an obligation to pay.
- Nor does it constitute to a decree for
specific performance.
- the stability of the commercial
transactions requires that the right of the
seller be protected just as effectively as the
right of the buyer.
ARTICLE 1166: The obligation to give a determinate
thing includes that of delivering all its accession and
accessories. Even though may not have been
mentioned.
Accessories- included with the principal for the latters
better use, perfection, or enjoyment.
Accessions addition to or improvements upon a thing.
EFFECT OF STIPULATION
A & A do not have to be included.
ARTICLE 1167- if a person obliged to do something fails
to do it, the same shall be executed at his cost.
This same rule shall be observed if he does it in
contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been
poorly done be undone.
POSITIVE PERSONAL OBLIGATION(first sentence)

REMEDIES OF THE CREDITOR IF DEBTORS FAILS TO DO

- HAVE OBLIGATION BE PERFORMED
- OBTAIN DAMAGES
NOTE: specific performance is NOT a REMEDY in
personal obligation= involuntary servitude which the
rule is prohibited under the constitution.
CHAVEZ v. GONZALES
- TYPEWRITER
THING MAY BE ORDERED UNDONE
When it is made poorly
If the obligation is a negative one
ARTICLE 1168- when the obligation consists in not
doing, and the obligor does what has been forbidden
him, it shall also be undone at his expense.
(NEGATIVE PERSONAL OBLIGATION)
ARTICLE 1169- Those obliged to deliver or to do
something incur in delay from the time the oblige
judicially or extra judicially demands from them the
fulfillment of their obligation.
However , the demand by the creditor shall not be
necessary in order that delay may exist:
1.) When the obligation or the law expressly so
declares or
2.) When from the nature and the circumstances
of the obligation it appears that the
designation of the time when the thing is to be
delivered or the service is to be rendered was
a controlling motive for the establishment of
the contract.
3.) When the demand would be useless, as when
the obligor has rendered it beyond his power
to perform.
In reciprocal obligation, neither party incurs in delay if
the other does not comply or is not ready to comply in
a proper manner with what is incumbent upon him.
From the moment one of the parties fulfills his
obligation, delay by the other begins.

IN ORDER TO PUT DEBTOR IN DELAY= SHOULD HAVE

DEMAND

DEMAND IS NOT NEEDED TO PUT DEBTOR IN DELAY

-law provides
- obligation is expressly provides
- when the time is the essence of the contract
( intent is sufficient as long as this is implied)
HANLON v. HAUSSERMAN, SUPRA
-Demand useless
- obligor acknowledge he is in default.
4 GROUNDS; debtor liable for damages
1. Default/mora
2. Fraud/dolo
3. Negligence/culpa
4. Contrary to terms of obligation
1. DEFAULT/MORA delay
3kinds
a. Mora solvendi debtors delay to give (real ob.),
to do (personal ob.)
b. Mora accipiende creditors delay to accept
c. Compensatio Morae delay of both in reciprocal
obligation
CONCEPT OF DELAY
General Rule: No demand, No delay
Exceptions:
1. Law states
2. Obligation states
3. Time is the essence
4. Demand be useless if delay
5. Debtor guilty of delay
EFFECTS OF DELAY
1. Damages
2. When to deliver determinate thing, STILL LIABLE in
fortuitous event.
2. FRAUD/DOLO conscious, deliberate, intentional
evasion of fulfillment
2Kinds
a. Dolo causante/Causal fraud fraud in obtaining
consent; consent is defective, contract is voidable.
Remedy: annulment
b. Dolo incidente/Incidental fraud fraud w/c
vitiates consent. Remedy: damages
3. NEGLIGENCE/CULPA voluntary act/omission; no
bad faith intended

3Kinds
a. Culpa aquiliana/Civil negligence quasidelict/torts
b. Culpa contractual/Contractual negligence
breach
c. Culpa criminal/Criminal negligence crime/delict
4. Contrary to the terms of obligation
2 RULES OF PRINCIPAL & INSTALLMENT
1. Receipt of principal w/o mention of interest,
presumed interest is paid also.
2. Receipt of latter installment w/o mention of prior
installment, presumed prior installment is paid also.
4 SUCCESSIVE RIGHTS OF CREDITOR to satisfy claim
against DEBTOR
1. Exact payment
2. Attach debtors properties
3. Accion subrogatoria exercise rights & actions
except inherent in person
4. Accion pauliana cancel acts/contracts by debtor to
defraud creditor
DOCTRINE:
COMPANIA GENERAL de TABACOS v. ARAZA
If a debt is not paid at the stipulated period, interest (as
damages) should be charged not from the date of
maturity, but from the time the judicial action is filed, in
case no extrajudicial demand was made.
MALAYAN INSURANCE CO., INC. v. CA
GR 59919, NOV. 25, 1986
A debtor who incurs in delay or default is liable for
damages plus interest, generally from extrajudicial or
judicial demand in the form of interest.
ARTICLE 1170- Those who is in the performance of
their obligation are guilty of fraud, negligence, or delay
and those who in any manner contravene the tenor
thereof, are liable for damages.

GATCHALIAN v. ARLEGUI,75 SCRA 234

If a losing party litigants disobeys a writ of possession
addressed by the court not to him but to a sheriff said
disobedient litigants is not , by that fact of
disobedience alone is guilty of contempt of court.