CHAPTER 1: GENERAL PROVISIONS

**ARTICLE 1156**
*Juridical necessity- in case of noncompliance, the courts of justice may be called
upon by the aggrieved party to enforce its fulfillment
Essential requisites of an obligation:
1.
2.
3.
4.

Passive subject- debtor; he who has duty
Active subject- creditor; he who has a right
Object- subject matter of the obligation
Juridical/Legal tie- binds or connects the parties to the obligation

Obligation, right and wrong distinguished
 Obligation- the act/ performance which the law will enforce; what we
should do
 Right- the power which a person has under the law; what we gain
 Wrong (Cause of action)- is an act of one party in violation of the legal
right/s of another
The essential elements of a legal wrong/ injury are:
(a) a legal right in favor of a person (CREDITOR)
(b) a correlative legal obligation on the part of another (DEBTOR);
to respect or not to violate the said right
(c) an act of one party in violation of the right with resulting
damage to another
**ART 1157**
Obligations arise from:
(SOURCES OF OBLIGATIONS)
1. Law
2. Contracts
3. Quasi- contracts- arise from lawful, voluntary acts; no one shall be unjustly
enriched at the expense of another; is a legal substitute for a contract. A
quasi-contract is a contract that should have been formed, even though in
actuality it was not
4. Criminal Offenses
5. Quasi-delicts- arise from damage caused to another , there being fault or
negligence; there is an obligation to pay for the damage done
Requisites/ There must be:
a) An act
b) Fault/Negligence
c) Damage caused
d) Connection of cause and effect between the act and damage
e) No pre-existing contractual relations
**ARTICLE 1159**

produced by lands through cultivation/labor e.particularly designated/ physical segregated from others of the same class *Generic/ Indeterminate. refers only to a class Duties of debtor in obligation to deliver a determinate thing: 1. Natural.cannot be pointed out with particularity.there is no right to demand it. 5. vegatables.*Compliance in good faith. Solutio indebiti. Preserve the thing Deliver the fruits of the thing Deliver the accessions or accessories Deliver the thing itself Answer for damages in case of non-fulfillment **ARTICLE 1164** Different kinds of fruits 1.g sugar cane.Revenues derived from a thing by operation of law e.definite active and passive subjects. rice 3. plants 2. interests When obligation to deliver fruits arises The obligation to deliver the thing due and its fruits (if any) arises from the “perfection of the contract”. Industrial.g trees. Negotiorum gestio-voluntary management of the property/affairs of another without the knowledge of the latter 2. 2.products of the soil & the young of other animals e. it was delivered through mistake CHAPTER 2: NATURE AND EFFECT OF OBLIGATIONS **ARTICLE 1163** *Specific/ Determinate. 3.birth of the contract/ meeting of the minds between parties Personal Right & Real Right a) Personal.compliance/performance in accordance with the terms of the contract Kinds of quasi-contracts 1. 4. enforceable only against one person b) Real-without a definite passive (debtor) subject. directed against the whole world **ARTICLE 1165** .g rentals. Civil.

delay on the part of the DEBTOR to fulfill 2. accessory follows the principal a must **ARTICLE 1167** Remedies of creditor in positive personal obligation: 1. 3. 4.Remedies of creditor in real obligation: 1.can be performed by a third person **ARTICLE 1166** *Accessions-fruits of a thing/ additions / improvements. Mora accipendi. Compensatio morae. Specific a) demand specific performance b) demand cancellation c) demand payment of damages 2. 2. If debtor fails.delay on the part of the CREDITOR to accept 3.failure to perform an obligation on time 2. Generic.delay of the obligors in reciprocal obligations. May be ordered by the court that it be undone if still possible **ARTICLE 1169** Meaning of delay 1. no actionable default on both parties *Delay by the debtor begins only from the moment a demand for the fulfillment of the debtor’s obligation is made by the creditor When demand is not necessary to put debtor in delay 1. not necessary *Accessories. creditor has the right: a) Perform the obligation himself b) Recover damages 2. Legal delay-failure constitutes a breach of the obligation Kinds of delay 1. 5.things joined or included for better use or completion. Mora solvendi. Compensatio morae **ARTICLE 1170** Grounds for liability . Ordinary delay. When the obligation so provides When the law so provides When time is of the essence When demand would be useless When there is performance by a party in reciprocal obligations.

violation in the terms of the terms and conditions stipulated in the obligation FRAUD vs NEGLIGENCE There is an intention to cause damage Waiver for future fraud is invalid Must be clearly proved Liability cannot be reduced No such intention Waiver may be allowed Presumed from violation of contractual obligation Liability may be reduced **ARTICLE 1171** Responsibility arising from fraud is demandable. it can be considered as an act of generosity **ARTICLE 1172** *Responsibility arising from negligence is demandable. Contravention of the terms of the obligation. -A waiver for future fraud is void.voluntary act. the debtor is liable for damages.resulting in breach. Criminal negligence (culpa criminal). Remedy: pay damages b) Causal fraud (dolo causante). Civil negligence (culpa aquiliana). Negligence (fault or culpa). negligence in the performance of a contract 2. not serious. the courts however are given wide discretion in fixing the measure of damages because negligence is not as serious as fraud -A waiver for future negligence may be renounced except for common carriers (which require extra diligence) -Negligence shows bad faith = FRAUD therefore waiver is void Kinds of Negligence according to source of obligation 1. Contractual negligence (culpa contractual). Delay (mora) 4. contract is voidable.delict. no bad faith or malice 3.1. consent is defective.employed in the execution of a contract which vitiates consent. Remedy: annulment 2.also called torts or quasi. Fraud in obtaining consent. this is so because fraud is deemed serious and evil.results in the commission of a crime **ARTICLE 1173** . Fraud (deceit or dolo).intentional evasion of the normal fulfillment of the obligation. criminal deception to result in financial or personal gain a) Incidental fraud(dolo incidente).committed in the performance of obligation because of contract. as being against the law and public policy -A waiver for past fraud is valid. negligence as a source of obligation 3.

there is human intervention (riot. Required by law in particular cases 3. There is no negligence on the part of the obligor . 2.*Negligence is the failure to observe for the protection of the interests of another person.forces without any human interference (typhoon. war) 2. Extra-ordinary. Acts of man. Agreed upon by parties 2.common events. If both contract and law is silent. It is impossible for the obligor to comply with his obligation in a normal manner 4. impossible to avoid . Acts of God(majeure). parties could not reasonably foresee. strikes. inevitable. that degree of care and precaution whereby such other person suffers injury *Negligence is dependent upon the circumstances of each case Factors to be considered 1. parties can reasonably foresee 2. 3.uncommon events. Event must be independent of human will 2. Diligence of a good father of a family is expected **ARTICLE 1174** Meaning of fortuitous event A fortuitous event is an unforeseen event or. Ordinary. Nature of the obligation Circumstances of the person Circumstances of time Circumstances of the place *Damages signify the money compensation given to a party for loss or injury Purpose: To place the innocent party in the same position he/she would have been if the contract/obligation has been performed according to terms Kinds of diligence required 1. earthquake) Kinds of fortuitous events 1. if foreseen.An unforeseen event that occurs by chance or accident from natural or manmade forces over which an affected person has no control Fortuitous vs force majeure 1. 4. Unavoidable 3. unexpected Requisites of a fortuitous event 1.

Must be lawful **ARTICLE 1176** Presumption -A legal presumption is a conclusion based upon a particular set of facts. involves the return of the equivalent only Usury -the illegal action or practice of lending money at unreasonably high rates of interest.one of the parties delivers to another money or another consumable thing with the understanding that the same amount of the same kind and quality shall be paid. When declared by stipulation. Requisites for recovery of interest: 1. It is a rule of law which allowing a court to assume a fact is true until it is rebutted by the greater weight (preponderance) of the evidence against it Two kinds of presumption: 1. When specified by law a) The debtor is guilty of fraud.can be contradicted by presenting a proof Example: . combined with established laws.to protect the interest of the creditor and obtain greater diligence on the part of the debtor in the fulfillment of his obligation 3.cannot be contradicted 2. Payment must be clearly specified 2. When the nature of the obligation requires assumption of risk **ARTICLE 1175** *Simple loan or mutuum. Conclusive. negligence or delay b) Debtor promised to deliver a specific thing to two different persons with different interests c) Obligation arises from a crime d) Thing to be delivered is generic 2. logic or reasoning. Must be in writing 3.Rules as to liability in case of fortuitous event -a person is not responsible for damage due to fortuitous events therefore: OBLIGATION IS EXTINGUISHED Exceptions: 1. Disputable/ Rebuttable.

1. 2. SECONDARY a) Unilateral and bilateral b) Real and personal c) Determinate and generic d) Civil and natural e) Legal. A child born of a husband and wife living together is presumed to be the natural child of the husband. **ARTICLE 1177** Remedies available for creditors for the satisfaction of their claims: 1. 3. conventional an penal Section 1. PRIMARY a) Pure and conditional b) With a period c) Alternative and Facultative d) Joint and Solidary e) Divisible and Indivisible f) With a penal cause 2. a verdict based upon the evidence at trial convicts the defendant. An accused person is presumed innocent until proven guilty. These presumptions may be rebutted by proof such as: 1. *Conditional obligation. a DNA test conclusively proving the husband is not the father.immediately demandable by the creditors and the debtor cannot be excused from not complying with his prestation. Right to damages Collect the property of the debtor Exercise all the rights Ask the court to cancel acts or contracts **ARTICLE 1178** Transmissibility of rights 1. Prohibited by the stipulation of the parties CHAPTER 3: DIFFERENT KINDS OF OBLIGATIONS 1. 4. 3. the missing person is found alive. Prohibited by law 2. and 3.Pure and Conditional Obligations **ARTICLE 1179** *Pure obligation.the acquisition of rights. A person who has disappeared and not been heard from for seven years is presumed to be dead. as well as the extinguishment or loss of those already acquired. 2. shall depend upon the happening of the event which constitutes the condition *A condition has been defined as every future and uncertain even . 2.

Suspensive. obligation arises // Resolutorycondition fulfilled. The debtor promises to pay when his means permit him.happening of condition gives rise to obligation 2. Suspensive.happening of condition extinguishes obligation Distinction between Suspensive and Resolutory 1. Subject to a resolutory condition 3. “as soon as possible” . Suspensive. Suspensive.“from time to time” **ARTICLE 1181** Restates the distinction between suspensive and resolutory condition 1.condition does not take place. An obligation is demandable at once: 1.Characteristics: a) Future and uncertain b) Past but unknown Two principal kinds: 1. Other cases –“little by little”. Resolutory. Loss of rights already acquired **ARTICLE 1182** Conditions may be classified as follows: 1) As to effect: a) Suspensive – rise of obligation b) Resolutory – extinguishment of obligation 2) As to form: a) Express – clearly stated b) Implied – merely inferenced 3) As to possibility: a) Possible – condition is capable of b) Impossible – not capable of fulfillment .existence of obligation is mere hope // Resolutory-effects flow but wit the possibility of termination 4. When it is pure 2.duration of the period 2. Subject to a resolutory period **ARTICLE 1180** Where duration of period depends upon the debtor A period is a future and certain event upon which the obligation subject to it arises or is extinguished 1. tie of the law does not appear // Resolutory-condition does not take place. Acquisition of rights 2. tie of the law appears 3. obligation is extinguished 2.condition is fulfilled.

g I will sell you my land if you do not carry 20 cavans of palay on your shoulder) . public policy or good customs Two kinds of impossible conditions 1.If the condition is NEGATIVE (e.depends on chance or the will of a third person (ex. Mixed condition..suspensive in nature.000 if I won the lottery) 3. Legally impossible (e.g I will pay you P10. no juridical tie b) Only the condition void.depends partly upon chance and partly upon the will of 3rd person **ARTICLE 1183** *POSSIBLE CONDITION – if it is capable of realization or actualization according to nature.fulfullment.000 if you will kill) Effect of impossible conditions 1.condition is imposed on the fulfillment of obligation Where suspensive condition depends upon the will of the creditor If the condition depends upon the will of the creditor. Conditional obligation valid.000 if it will not rain for one year in the PH) 2.g I will give you P10. all must be fulfilled b) Disjunctive – several conditions. law. the debtor will not just fulfill the condition in order to be not liable. Physically impossible (e. only some or one must be fulfilled 7) As to divisibility: a) Divisible – susceptible of partial performance b) Indivisible – not susceptible of partial perfornmance 1. Potestative condition. depends upon the will of ONE of the parties Where suspensive condition depends upon the will of the debtor a) Conditional obligation void. legally and physically 4) As to cause or origin: a) Potestative – depends upon will of one of the contracting parties b) Casual – depends upon chance or will of a third person 5) As to mode: a) Positive – consists in performance of act c) Mixed – depends partly upon chance and partly (a) and (b) b) Negative – consists in omission of an act 6) As to numbers: a) Conjunctive – several conditions. Conditional obligation void 2. I will give you 10. Causal condition.cannot be easily demanded. obligation is valid 2.

Only the condition void.g I will give you 10.3.if the obligation is DIVISIBLE (e.000 is VALID 4. When it has become evident that the event cannot occur **ARTICLE 1186** Requisites 1.000 if you sell my land.only the obligation to give 10. The obligation is extinguished: 1. Only the affected obligation void. The time indicated has passed without the event taking place 2.( D borrowed 10. If C later agreed to kill X before D pays him. The condition is suspensive 2. and a car.000 from C.an event will not happen at a determinate time. The obligation shall become effective: 1. Obligor prevents fulfillment of obligation 3. Voluntarily acts . The time expires without the event taking place 2.and if you kill Pedro) . As soon as it become definite that the event will not take place **ARTICLE 1185** This provision speaks of a NEGATIVE condition. the condition to kill X is invalid but not the obligation of D to pay C **ARTICLE 1184** Positive Condition This article refers to a SUSPENSIVE condition the happening of an event at a determinate time.