ARTICLE 1156 – 1160 DISCUSSION

Title I - OBLIGATION
CHAPTER 1

General Provisions

Art. 1156. An obligation is a juridical necessity to give, to do or not to do.

Obligation – The requirement to do what is imposed by law, promise, or contract. Obligation is

synonymous with duty. It’s a tie which binds us to pay or to do something agreeably to the laws and
customs of the country. According to Arias Ramos, obligation is nothing more than the duty of a person
(debtor or obligor) to satisfy a specific and demandable claim of another person (creditor or obligee)
which if breached is enforced in court.

Elements of Obligation

Active subject (creditor or obligee). – the person who has the right to demand the fulfillment of the
obligation.

Passive subject (debtor or obligor).- the one who is bound to the fulfillment of the obligation.

Prestation or object – It may consist in giving, doing, or not doing. Without prestation, there is nothing to
perform. Object refers to the property or the things. Prestation is the subject matter of the obligation.

Efficient cause (juridical or legal tie) – that which binds or connects the parties to the obligation. The tie
is an obligation can easily determined by knowing the source of the obligation.

Right and obligation, Correlated – When there is right there is a corresponding obligation. Right is the
active aspect (credit) and obligation is the passive aspect (debt).

Prestation – Particular conduct of the debtor. It may consist in giving, doing or not doing something.

Obligation to give – consist in the delivery of a movable or immovable thing to the creditor. Example:
Obligation to deliver the thing in sale, deposit, pledge, donation, anti-chresis.

Obligation to do – covers all kinds of works or services whether physical or mental. Example: Contract for
professional services like painting, modelling, singing.

Obligation not to do – consist in refraining from doing some acts like producing aggravating noise,
offensive odor, smoke, heat.
Nature of obligations in Art. 1156; Civil and Natural Obligations Distinguished. –

The definition of obligation in Article 1156 refers to civil obligations which are enforceable in court when
breached. It does not cover natural obligations.

Kinds of Obligations

(a) As to judicial enforceability

Civil obligation – It is an when the debtor or obligor did not fulfilled its obligation to the creditor or
obligee that can be enforced through a civil suit or action in a court.

Natural obligation – It is a special kind of obligation which cannot be enforced in court but which
authorizes the retention of the voluntary payment or performance made by the debtor.

Moral obligation – It is a duty which one owes, and which he ought to perform, but not legally bound to
fulfill. This is an obligation from moral law developed by the church the church and not enforced on
court. It deals with the spiritual obligation of a person in relation to his God or Church.

(b) As to the subject matter

Real obligation – obligation to give

Personal obligation – obligation to do or not to do.

(c) As to the number of persons bound to perform

Unilateral obligation – It is when only one of the parties are bound to fulfill a prestation.

Bilateral obligation – It is when both parties are bound to perform.

Reciprocal obligation are which arise from the same cause, wherein each party is a debtor and a creditor
of the other. (ASJ Corporation vs. Evangelista, 545 SCRA 300)

(d) As to the capacity of fulfillment

Possible obligation – It is when an obligation that can be fulfilled in nature or in law.

Impossible obligation – It is when an obligation that cannot be fulfilled in nature or in law.

(e) As to susceptibility of partial fulfillment

Divisible obligation – Requires the giving of definite things and the same can be partially performed.

Indivisible obligation – Requires the giving of definite things and the same cannot be partially performed.

(f) as to their dependance upon one another

Principal obligation – Main obligation created by the parties.

Accessory obligation – Secondary obligation created to guarantee the fulfillment of the principal
obligation.

(g) As to the existence of a burden or condition

Pure obligation – Not subject to any conditions and no specific date is mentioned for its fulfillment but
immediately demanded.

Condition obligation – Subject to conditions, it can be suspensive and performance of which depends on
an uncertainty.

Obligation with a term – Subject to the happening of an event which will surely happen, but the date is
uncertain. The obligation becomes demandable only when the term expired.

(h) As to the nature of performance

Positive obligation – When the debtor is oblige to give or to do something in favor of the creditor.

Negative obligation – When the debtor is not oblige to give or to do anything. That is, he must refrain
from doing something.

(i) As to the nature of creation of the obligation

Legal obligation – Obligation imposed by law.

Conventional obligation – Obligation established by the agreement of the parties like contracts.
(j) As to the character of responsibility or liability

Joint obligation – Obligation where creditor has the right to demand full and complete compliance of an
obligation against both of the debtors.

Solidary obligation – Obligation that are bound together, each liable for the whole performance, or
obligees to be bound together, all owed just a single performance and each entitled to the entirety of it.

(k) As to the grant of right to choose one prestation out of several, or to substitute the first one.

Alternative obligation – Obligation where the obligor may choose one out of several prestation.

Facultative obligation – Obligation where there are only one prestation. But the obligor may render one
in substitution of the first one.

(l) As to the imposition of penalty

Simple obligation – Obligation where there is no penalty imposed for violation of terms thereof.

Obligation with penalty – Obligation where there is a penalty imposed for violation of terms thereof.

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Art. 1157. Obligation arise from:

(1) Law;

(2) Contracts;

(3) Quasi-contracts;

(4) Acts or omissions punished by law; and

(5) Quasi-delicts. (1089a)

Source of Obligation; Criticism in the inclusion of law as another source. – In Roman Law, the sources of
obligation are (1) ex-contractu, (2) quasi-contractu, (3) ex-malficio and (4) quali-malficio. The fifth one
was added namely; ex-lege (law), but was not entirely accepted. (Leung Ben vs. O’Brien, 38 Phil. 182)

Enumerated Source of Obligation, Exclusive – The enumeration of the sources of obligations are
exclusive. No obligation exist it its source is not one of those enumerated in Art. 1157 (Navales vs. Rias, 8
Phil. 508)
Illustrative of the Sources of Obligation. –

Obligation arising from law – Like the duty of the spouses to provide mutual support and respect to one
another. Duty of tax payer to pay their taxes to the government (BIR)

Obligation arising from contract – Like the duty of a contracting to fulfill his undertaking in the contract.

Obligation arising from a quasi-contract – like the duty of the recipient to return what was delivered to
him by mistake.

Obligation arising from delict or crime – such as duty of the culprit to pay actual damages for causing the
death of a person.

Obligation arising from quasi-delict or tort – like the duty of the tortfeasor to pay damages for injuries of
damages to his fault, omission or negligence.

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Art. 1158. Obligations derived from law are not presumed. Only those 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. (1090)

Obligation Derived from Law, Never Presumed. – There are obligations in law such as obligation from
parents to support minor children, the obligation of lower estates to allow or receive the waters
naturally descending from the higher estates, obligation to pay taxes, the obligation of warranty of a co-
owner after partition, and obligation to deliver the presumptive legitimates of children.

Unless such obligations are expressly provided by law, they are not demandable and enforced.

Regulation of Obligations Arising from Law. – These obligation shall be regulated by the provisions of the
law, which establishes them. The civil code is applicable suppletorily.

Factor to Determine whether an Obligation Arises from Law or from other sources. – This is when an
obligation generated from a contract, its only purpose was to perform on what is stated which did not
arise from it, the act itself is the source of the obligation and not the law. And, when the law obliges to
act upon which it is based in nothing more than a mere factor of determining the moment when it
comes demandable, then this source of obligation is the law itself.

When the loser has a chance to recover his lost with interest in illegal gambling indebitatus assumpit
(Leung Ben vs. O’Brien, 38 Phil. 182)

When the a bank is not liable to pay the depositor made in an insolvent bank because there is no law
authorizing it. (Serrano vs. Central Bank 96 SCRA 96)

When a lessor has no obligation to allow the lessee to exercise any right of preemption or redemption of
the house and lot of the lessor, which was not built by the lessee. There is no law directing to do so.
(Santos vs. Court of Appeals 128 SCRA 428)

When an employee has no right to held the employer liable to the pay the attorney’s fee. Because there
is no law requiring it.(Dela Cruz vs. Northern Theatrical Enterprises 95 Phil. 739)

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Art. 1159 Obligation arising from contracts have the force of law between the contracting parties and
should be compiled with in good faith.

Distinction Between an Obligation and a Contract. – An obligation is a juridical necessity to give, to do or

not to do. A contract is an agreement between parties with respect to the other, to give something or
render some service.

Freedom to Contract – The contracting parties may establish may establish such stipulations, clauses,
terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good
customs, public order, or public policy.

Perfection of Contract – Contracts are perfected when consented, and from that moment the parties are
bound to the fulfillment of what was expressed in the contract even the consequences.

Force of Law – When the contract has been enforce to the law between the parties, both of them are
bound to the obligation expressed therein (Baron Marketing Corp. vs. CA, 286 SCRA 96 [1998])
Obligation Arising from Contract – Obligations that arises from contracts entered into by the contracting
parties are primarily govern by stipulations, clauses, terms and conditions of there agreements. If they
do not violate any law, morals, good customs, public order, or public policy and shall have the force of
law and should be compiled with in good faith.

Exceptions to the Rule – Some contracts are valid and do not violate Art. 1306 and yet, they may not be
enforced totally, if their prestation are unconscionable and unreasonable. The contract which provides
for unconscionable attorney’s fees may be disregarded by the court. (Bachrach vs. Golingco, 39 Phil. 138;
Borcena vs. IAC 147 SCRA 111)

Falsification of a Valid Contract – Some provisions thereof has been added without knowledge of the
contracting parties. Only the unauthorized insertion will be disregarded.

Interpretation of a Contract involves a Question of Law – A contract is in the nature of law between
parties and their succession interest, its interpretation involves a question of law (Melliza vs. Iloilo, 131
Phil. 1006; Republic vs. Lichauco, 46 SCRA 305; Weldon Construction Corp. vs. CA, 154 SCRA 618)

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Art. 1160. Obligation derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title
XVII, of this book.

Quasi-Contract, Concept. – Quasi-Contract is a legal remedy that is imposed by the court. It does not
require assent of the parties and its creation is entirely dictated by the law for the benefit of another and
for which the former must compensate to the end.

Characteristic of a Quasi-Contract

Act(s) executed must be lawful to distinguish it from a violation or crime.

Act(s) executed must be voluntary distinguish it from quasi-delict.

Act(s) executed must be independent to distinguish it from an ordinary contract.

Principal Kinds of Quasi-Contract.

(a) Negotiorum Gestio – A juridical relation when somebody takes charge of the agency or management
of the business or property of another without consent.
(b) Solutio Indebiti – Where one had paid a debt, or done an act or remitted a claim because he thought
that he was bound in law to do so, when he was not. He can recover the mistake there is an implied
obligation to pay back the money.

Presumptive Consent – Since a quasi-contract is a independent contract created by a sole act(s) of the
gestor, which means there was no consent to the latter. (Perez vs. Pomar, 2 Phil. 682).