Chapter 1 – General Provisions

I. Definitions

1. Obligation – derived from the Latin word obligaito which means tying or binding. It is a tie or bond
recognized by law by virtue of which one is bound in favor of another to render something – and
this may consist in giving a thing, doing a certain act, or not doing a certain act.
2. Quasi-Contract – when they arise from lawful, voluntary and unilateral acts which are enforceable
to the end that no one shall be unjustly enriched or benefited at the expense of another.
3. Compliance in good faith – compliance or performance in accordance with the stipulations or terms
of the contract or agreement.
4. Wrong – (cause of action), according to its legal meaning, is an act or omission of one party in
violation of legal right or rights (i.e., recognized by law) of another.
5. Solutio indebiti – is the juridical relation which is created when something is received when there is
no right to demand it and it was unduly delivered through mistake.

II. Discussions

1. What are the essential requisites of an obligation?

a. Passive subject (called debtor or obligor) – the person who is bound to the fulfillment of the
obligation; he was a duty.
b. Active subject (called creditor or oblige) – the person who is entitled to demand the fulfillment
of the obligation; he who has a right.
c. Object or prestation (subject matter of the obligation) – the conduct required to be observed by
the debtor. It may consist in giving, doing, or not doing. Without the prestation, there is nothing
to perform. In bilateral obligations, the parties are reciprocally debtors and creditors.
d. Juridical or legal tie (also called efficient cause) – that which binds or connects the parties to
the obligation. The tie in an obligation can easily be determined by knowing the source of the
obligation.
2. Why are obligations under the Civil Code a juridical necessity? Explain.
Because it is based on law and subject to court`s action. Obligations under civil code are a judicial
necessity in order to enforce local laws that involve civil matters. Civil matters include matters that
are brought on by another party that causes injury or financial discord among people of a local
jurisdiction.
3. What are the elements or requisites in order that a person may acquire a right of action in court
against another to enforce the performance of the latter’s obligation?
Right is the power a person has under the law to demand from another any prestation. A person
may acquire a right of action in court to enforce the performance of another’s obligation if the
obligation is a civil obligation, that is, it is based on positive law.
4. May a person incur obligations even without entering into any contract or voluntary agreement?
Explain.
Yes, because obligations do not only arise from contracts. They can be imposed by law, arise from
quasi-contracts, from crimes or acts or omissions punished by law and from quasi-delicts or torts.
You can have an obligation so that no one will be unjustly benefited or enriched at the expense of
someone else, or if you commit a crime, or if you cause damage due to fault or negligence.

III. Problems
1. X saw at about one (1:00 pm) in the afternoon a child alone in a shopping mall. The child who
strayed from Y, his mother, was in tears and appeared very hungry. Out of pity, X took him to a
restaurant to eat for which he spent P150. Y did not give her consent to the good deed of X.
 Furthermore, they were on their way home before the child got lost. Is X entitled to be reimbursed
by Y for the amount of P150?
Yes, because on the principle of quasi-contract, Y is liable to X even if she did not give her
consent. X fed Y’s child and incurred expenses and this should be reimbursed by X to prevent
anyone being unjustly enriched or benefited at the other’s expense.
2. While the car of X was parked by the roadside, it was bumped at the rear by a jeep belonging to Y.
only the car of X suffered damage. Under the circumstances, does it follow that Y is liable to X for
the damage?
Yes, because even if there is no pre-existing contractual relation between them, X’s car was
damaged due to the negligence of Y. If Y did not bump X’s car, X’s car would not have been
damaged. Thus, Y is liable to X for the damages
3. In the same problem, has X the right to ask indemnity from R, employer of X, on the ground that
the accident occurred when X was on his way to transact business with a client of R?
X doesn’t have a right to ask for indemnity from R because there is no law that requires this.
4. D (debtor) borrowed P10,000 from C (creditor). On the due date of the loan, D could not pay C
because he lost to a robber the P10,000 intended for C. in addition, he suffered financial reverses,
and he was short of cash even for his current family’s needs. Is D legally justified to refuse to pay
C?
No, because when D loaned from C, he entered a voluntary agreement and he was willing and the
contract is valid. Thus, D should comply with their agreement in good faith and does not have a
legal justification to refuse payment to C

Chapter 2 – Nature and Effect of Obligations

I. Definitions

1. Generic or indeterminate thing – when it refers only to a class or genus to which it pertains and
cannot be pointed out with particularity.
2. Personal right – is the right or power of a person (creditor) to demand from another (debtor), as a
definite passive subject, the fulfillment of the latter’s obligation to give, to do, or not to do.
3. Legal delay or default – or mora is the failure to perform an obligation on time which failure
constitutes a breach of the obligations.
4. Fortuitous event – is any event which cannot be foreseen, or which, though foreseen, is inevitable.
Stated otherwise it is an event which is either impossible to foresee or impossible to avoid.
5. Diligence of a good father of a family - ordinary care or diligence which an average person
exercises over his own property.

II. Discussions

1. Give the rules as to the liability of a person for loss or damage resulting from a fortuitous event.
A person is not responsible for loss or damage resulting from a fortuitous event. Thus, his
obligation will be extinguished. (Except when expressly specified by law, declared by stipulation, or
when nature of obligation requires assumption of risk.).
2. What rights are given by law to the creditor in case the debtor fails to comply with his obligation to
deliver a specific thing?
The creditor can demand specific performance or fulfillment of the obligation with indemnity for
damages, OR demand rescission or cancellation of the obligation with a right to indemnity for
damages, OR demand payment for damages only when it is the only feasible remedy.
3. What are included to be delivered in an obligation to give a definite thing? Explain them.
 The obligation includes the delivery of all its accessions and accessories. Accessions are the fruits
of a thing or additions to or improvements upon a thing. Accessories are things joined to or
included with the principal thing for the latter’s embellishment, better use, or completion.
4. Suppose the obligation of the debtor is to do something and he fails to do it or performs it in
contravention of the agreement, what are the remedies available to the creditor?
If the debtor fails to comply, the creditor has the right to have the obligation performed by himself,
or by another, (unless personal considerations are involved) at the debtor’s expense and to recover
damages. If the debtor performs contrary to terms, it may be ordered by court that it be undone (if
still possible to undo what was done).
5. Can a debtor be put in delay and consequently, incur liability even without demand from creditor?
Explain.
No. If the creditor does not demand, then it is presumed that he is giving the debtor an extension of
time and the latter in not liable for damages.
6. May an action arising from fraud be waived? Explain.
Yes. If the creditor, with full knowledge of the fraud committed by the debtor, decides to waive his
right to indemnity, then it is considered as an act of forgiveness by the former to the latter. Waiver
is void only when it is a waiver of an action for future fraud.
7. May an action arising from negligence be waived? Explain.
Yes. An action for future negligence may be renounced except where the nature of the obligation
requires the exercise of extra ordinary diligence as in the case of common carriers and when the
negligence shows bad faith.

III. Problems

1. S (seller) sold to B (buyer) on July 5, a horse named Silver to be delivered on July 20. However, on
July 15, S sold again and delivered the horse to T. Who has a better right to Silver?
B has a better right to Silver because he had a right to Silver the moment his contract with S was
perfected, which was on July 5. This is before T’s contract with S was perfected. Thus, B has a
better right.
2. S sold to B a specific refrigerator which S agreed to deliver not later than July 31, S did not deliver
the refrigerator on said date. Is S guilty of legal delay?
3. S promised to deliver to B a female named Suize on July 10. Suzie gave birth to a colt on July 5.
a. What are the obligations of S?
b. Who has the right to the colt?
c. Who is the lawful owner of Suzie in case it was sold and delivered by S to T on July
8?
4. D (debtor) borrowed P20,000 from C (creditor) payable after one (1) year? Is D liable to pay
interest?
5. R (lessor) issued a receipt that E (lessee) has paid the rent for the months of March, 2008. Can R
still collect from E the rents for January and February, 2008?

Chapter 3 – Different Kinds of Obligations

I. Definitions

1. Condition
2. Civil loss
3. Reciprocal obligations
4. Pure obligations
5. Potestative condition
II. Discussions

1. Illustrate an obligation subject to:

a. Suspensive condition
b. Resolutory condition
What is the effect of the fulfillment of the condition in a conditional obligation?
2. Give two (2) cases when the conditional obligation is valid although the condition depends entirely
upon the will of the debtor. Explain.
3. May an obligor be liable under an obligation subject to a suspensive condition although the
condition has not yet been fulfilled? Explain.
4. In an obligation to give a parcel of land subject