An obligation is a course of action that someone is required to take, whether legal or moral.

There
are also obligations in other normative contexts, such as obligations
of etiquette, social obligations, religious and possibly in terms of politics, where obligations are
requirements which must be fulfilled. These are generally legal obligations, which can incur a penalty
for non-fulfilment, although certain people are obliged to carry out certain actions for other reasons
as well, whether as a tradition or for social reasons.
Obligations vary from person to person: for example, a person holding a political office will generally
have far more obligations than an average adult citizen, who themselves will have more obligations
than a child.[1] Obligations are generally granted in return for an increase in an individual's rights or
power. For example, obligations for health and safety in a workplace from employer to employee
maybe to ensure the fire exit is not blocked or ensure that the plugs are put in firmly.
The word "obligation" can also designate a written obligation, or such things as bank notes, coins,
checks, bonds, stamps, or securities.

Elements of Obligation
An obligation has the following essential elements:
▪ Parties - the actors involved in an obligation:
▪ active subject (creditor/obligee) - one who demands the fulfillment of an obligation.
▪ passive subject (debtor/obligor) - one who has the duty to fulfill an obligation.
▪ Prestation - the conduct to be performed by the passive subject for the active subject.
▪ Juridical Tie (efficient cause) - the relation that binds the parties to an obligation.
Example: Under a contract of sale, D agreed to deliver a book to C for Php1000.
▪ C is the active subject
▪ D is the passive subject
▪ the delivery of the book is the prestation
▪ the contract of sale is the juridical tie that binds X and Y.
Suppose X had already delivered the book but Y has not yet paid for it.In this case, X becomes the
active subject and Y is the passive subject.

The active subject has the right to go to court in case of non-performance by the passive subject.
The passive subject should hence comply with the obligation to avoid civil action against him.

Sources of Obligation
An obligation can arise from:[2]
▪ Law - when there is an enforcement of law itself; the obligation cannot be presumed, and
should be expressly or clearly provided for in the law in order to demandable;[3] such as the
obligation of income earning persons to pay taxes according to the National Internal Revenue
Code.
▪ Contract - when there is a meeting of the minds between the parties; the obligation have the
force of law and should be complied with in good faith;[4] such as the contract of sale of a
book for Php1000.
▪ Quasi-contract - when there is no meeting of the minds between parties, but one party
benefited at the expense of the other party; there is an obligation to pay for compensation so
that no one shall be unjustly enriched or benefited at the expense of another.[5]
▪ Negotiorum gestio - if one (the officious manager) voluntarily takes charge of the
agency or management of another person's property on his behalf without his consent
or authority;[6] such as the obligation to reimburse the expenses incurred by someone
who voluntarily saved your abandoned house from fire.
 ▪ Solutio indebiti - if one received something that does not rightfully and legally belong
to him;[7] such as the obligation to return a money received by mistake.
▪ Delict - when there is a civil liability resulting from criminal offense; should be governed by the
penal laws;[8]such as the obligation of a thief to return the money he had stolen.
▪ Quasi-delict - when there is fault or negligence that causes damage on another, there being
no prior meeting of the minds between the parties; there is an obligation to pay for the
damage done;[9] such as the obligation of a driver to pay for the damages he caused to
another due to negligence.
Effects of Obligation
The duties of the debtor
in the delivery of a determinate thing, which is identified by its individuality:
▪ deliver the thing itself.
▪ preserve or take care of the thing due with the proper diligence of a good father of a family,
unless the law or the stipulation of the parties requires another standard of care.[10]
▪ deliver the fruits of the thing from the time the obligation to deliver it arises.[11]
▪ deliver the accessions and accessories of the thing, even though they may not have been
mentioned.[12]
in the delivery of a generic thing, which is identified by its class/type:
▪ deliver the thing which is neither superior nor inferior quality.[13]
The debtor is also liable for damages in case of non-performance or breach of obligation by reason
of delay, fraud, negligence or contravention of the tenor.[14]

The remedies of the creditor

in case of breach of obligation in the delivery of a determinate thing:
▪ demand specific performance or fulfillment of the obligation by the debt (if it is still
possible).[15]
▪ demand rescission or cancellation of the obligation (in certain cases).[16]
in case of breach of obligation in the delivery of a generic thing:
▪ demand the delivery of the thing which is neither superior nor inferior quality[13] at the expense
of the debtor.[17] This can be performed by a third party.
In either case, the creditor has a right to recover damages.[14] The other remedies can be demanded
in addition to this right.
Kinds/classification of Obligation
The primary classification of obligations
according to the peculiarities of the prestation:
▪ Pure obligation - performance is not subject to any condition, and can be immediately
demandable.[18]
▪ Conditional obligation - performance is subject to a condition, and can only be demandable
upon the happening of an event.[19]
▪ Obligation with a period - performance is subject to a period, and can on;y be demandable
when that period expires.[20]
according to the number prestations:
▪ Simple obligation - there is only one prestation.
▪ Compound obligation - there are two or more prestations.
 ▪ Conjunctive obligation - there are several prestations and all of them can be
performed separately.
▪ Disjunctive obligation - only one of the several prestations can be performed. It may
be alternativeor facultative.
according to the number of parties:
▪ Individual obligation - there is one debtor and one creditor.
▪ Collective obligation - there are two or more debtors and two or more creditors.
▪ Joint obligation - the prestation is divided among each debtor and/or the demand for it
is divided among each creditor.[21]
▪ Solidary obligation - the prestation may be performed by any one of the debtors,
and/or its entire compliance may be demanded by any one of the creditors.[22]
according to divisibility/indivisibility of the prestation:
▪ Divisible obligation - the prestation can be partially performed.
▪ Indivisible obligation - the prestation cannot be partially performed.[23]
according to the value of the prestation:
▪ Principal obligation - the main/principal prestation that is essential and from which the
accessory obligation/s arise.
▪ Accessory obligation - the secondary/accessory prestation that should be performed in
connection with the primary obligation.
▪ Obligation with a penal clause - the accessory prestation imposes a penalty that shall
substitute the indemnity for damages and the payment of interests in case of
noncompliance to the principal prestation.[24]

The secondary classification of obligations

according to the involvement of the parties:
▪ Unilateral obligation - only one party is bound to perform a prestation.
▪ Bilateral obligation - both parties are bound to each other in performing their respective
prestations.
▪ Reciprocal obligation - one party is bound to perform a prestation in exchange for the
other party's performance.[16]
according to the nature of the obligation
▪ Civil obligation - has legal basis; give a right of action to compel its performance.[25]
▪ Legal obligation - arises from laws.[3]
▪ Conventional obligation - arises from contracts with the force of the law.[4]
▪ Penal obligation - arises from delicts and criminal offences.[8] (not to be confused with the
'obligation with a penal clause' which is an accessory obligation)
▪ Natural obligation - has no legal basis; does not give a right of action to enforce its
performance but is based on equity and natural law, and should be voluntary.[25]
according to the nature of the prestation:
▪ Personal obligation - the prestation is to do or not to do an act:
▪ Positive obligation - to do an act
▪ Negative obligation - not to do an act
▪ Real obligation - the prestations is to give or deliver a thing:
▪ Determinate obligation - to deliver a determinate thing.
▪ Generic obligation - to deliver a generic thing.
▪ Limited generic obligation - to deliver a thing confined to a particular class/kind.
Obligations may have multiple classifications, but not with contradictory characteristics.
Extinguishment of Obligation
main article: Extinguishment of Obligation
An obligation can be extinguished by:[26]
▪ payment or performance - the delivery of a thing, or the doing of an act or not doing of an
act for the fulfillment of an obligation.[27]
▪ the loss of the thing due - the determinate thing is lost or destroyed without the fault of the
debtor, and before he has incurred in delay.[28]
▪ the condonation or remission of the debt - the gratuitous renunciation by the creditor of his
right against the debtor with the latter's acceptance.[29]
▪ the confusion or merger of the rights of creditor and debtor - the characters of creditor
and debtor are merged in the same person.[30]
▪ compensation - the simultaneous balancing of two obligations wherein two persons are
reciprocally debtors and creditors of each other.[31][32][33]
▪ novation - the creation of a new and different obligation through the total or partial
modification of an old obligation that it substituted.[34][35]
▪ annulment - the invalidation of a voidable contract by a court action on the grounds of
incapacity to give consent, mistake, violence, intimidation, undue influence, and fraud.[36]
▪ rescission - the revocation, cancellation, or repeal of a contract and the return of the parties
to the positions they would have had if the contract had not been made.[16]
▪ fulfillment of resolutory condition.[37]
▪ prescription - the loss of certain rights upon the lapse of time.[38]
In addition, other causes are:
▪ happening of a fortuitous event.[39]
▪ arrival of resolutory period.[40]
▪ impossibility of fulfillment of the obligation.[41]
▪ death of a party in case the obligation is purely personal.[42]
▪ compromise, by making reciprocal concessions.[43]
▪ mutual desistance or withdrawal (mutuo disenso).[44]