BOOK

IV, TITLE I: OBLIGATIONS Natural : cannot be enforced in court – no

Chapter 1 : General Provisions juridical tie
Three types of Obligations
INTRODUCTION 1. Civil
• Obligation – basic and alphabet of law 2. Natural – voluntary fulfillment converts the
• Only the law that governs you from the natural obligation to a natural one.
moment you’re conceived until your death 3. Moral – cannot be enforced against a debtor
• Etymology: oble (around) + gale (tie) = to tie it for non-fulfillment (alms for the poor
around Voluntary fulfillment – if natural, there is VF that
• Bind one for the performance of a thing – tells you that you have the right to retain what is
legal fiction of atie received. The voluntary fulfillment creates a new
ARTICLE 1156 civil obligation—negative CO that a debtor MAY
NOT recover what he has voluntarily fulfilled.

Ø If moral obligation with a voluntary
• Obligation – leads you to a conclusion that
fulfillment, debtor will have a prestation
covers the concepts of obligation defined and
NOT TO GET BACK
covered in the CC
Art. 1106 – Prescription
• Does it cover ALL types of obligations? NO. Ø Mode to acquire and lose
There should be a juridical necessity – it only Ø Mode of acquiring and/or losing
refers to civil obligations ownership and right of action through the
Art. 1423 – Natural Obligations lapse of time
• The Civil code defines and govern 2 types of Acquisitive – Acquiring
obligation: civil and natural Extinctive – Losing thru lapse of time
• Moral obligations are implied in our system Ø Article 1144 : 10 years
Distinctions of Civil & Natural Obligations o Written contract
1. SOURCE o Obli created by law
Civil: positive law – to be valid, it should be o Judgment
proven that it is based on natural law/moral Ø Article 1145: 6 years
law. o Oral contract
Ø Natural law becomes positive when o Quasi-contract
legislated – becomes a formal law Ø Article 1146: 4 years
Ø Must be rooted on natural law o Injury to the rights of the plaintiff
Ø May be from the Constitution, Congress o Quasi-delict
enactments, Exec Branch, ordinances of Ø Article 1147: 1 year
LGU, jurisprudence o Forcible entry and detainer
Ø Once they are echoing natural law and o Defamation
part of the book – it is not positive law Ø If the creditor acquires a right, ascertain
Natural: Equity and natural law – we all have the period if not used, extinctive
this. prescription, it converts a civil obligation
Ø the law of conscience to a NATURAL OBLIGATION. – if there is a
Ø basic principles of what is fair and just voluntary fulfillment of a debtor of natural
Ø the golden rule (UN in NY) obligation, it is now a civil obligation on
2. ENFORCEMENT IN COURTS OF LAW the part of the debtor – to not get back.
Civil: There is a juridical tie and enforceable in
Art. 1425 – pag may utang ka, kahit sino pwede
court – positive law bayaran. Pag nabayaran, extinguished na. Consent of
Cause of Action – can bring an issue to court, debtor not needed. Required: creditor agrees debt
is there a basis in positive law? If none and extinguished. New civil obligation to the 3rd party to
just moral, cannot go to court. PAY BACK – or else there is unjust enrichment.
JTVS | Obligations & Contracts | 1M | Dean Ulpiano Sarmiento 1
 *THESE SOURCES ARE EXCLUSIVE
FOUR ESSENTIAL REQUISITES OF AN OBLIGATION: • This gives the tie – the cause of action
1. Passive subject – debtor- obligor – may be • Sagrado Orden de Predicadores vs. Nacoco
compelled to perform the prestation establishes that the sources are exclsuive
• Capacity to act
• Minors not allowed unless assisted by ARTICLE 1158 : LAW
guardians or parents • An obligation that arises from law is NEVER
• Purchase of necessities PRESUMED
• If no capacity, voidable contract • Expressly provided in the Code or Special Laws
• Persons without capacity to act is not a • If the Law is ambiguous – susceptible to two
debtor unless represented by the or more interpretations
guardian • Law appears to create an obligation but not so
2. Active subject- creditor- obligee – party who – CONSTRUE AGAINS THE OBLIGATION -
has right to compel NEVER EVER PRESUME!!!!
• Legal capacity/ juridical capacity • If unclear, NONE!
• Natural-born or naturalized, juridical or • Only those expressly provided
artificial • EG: Legistlation passed expanding the support
• Even an unborn child can be a done to a of elder brother to younger brother, may
contract of donation younger sister demand support? NO! Not
Corporations : juridical entity is established – presumed ; strict construction.
now capable of entering a contract upon the • Governed by the precepts of Law
birth of corporation • If you establish the existence of law, that law
3. Prestation – object of obligation – to give to provides the how, if none, the laws on
do or not to do Obligations and Contract will govern –
• Requirements: supplemental to any field of law
o Determined or at least
determinable ARTICLE 1159 : CONTRACTS
o Possible to perform
• Stipulations agreed by the parties
o Not contrary to law, GC,M,PP,PO
• Good faith – essential to a valid contract
o Suscpetible of Money value
• This is the actual source of the tie
Pecuniary value : death – damages , need to
establish this – may be of sentimental value • If one fails to comply or declines to pursue, it
4. Juridical tie – vinculum can be a cause of action for liability for
damages
• if there is inequity, there is a cause of
Art. 1305: meeting of mind between to persons
action.
where one binds himself with respect to the other to
• Juridical tie is the most important because
give, to do, or not to do.
it distinguishes a civil obligation from that
Ø not all contracts are agreements and vice
of a natural or moral
versa
• Legal tie that binds
Ø the agreements may bring the tie – if
• If not in any of Art. 1157, NO JURIDICAL TIE
none, no cause of action
• What to look to know that there is an Ø not always expressed
obligation • Obligations from contracts MAY BE IMPLIED

AND PRESUMED
ARTICLE 1157
• The basis of an actionable wrong
5 source of obligation : law, contracts ,quasi • Agreement à Contract? Look at requisites
contracts, acts and omissions punishable by law, Requisites of a Contract:
quasi-delicts 1. Consent – meeting of minds
JTVS | Obligations & Contracts | 1M | Dean Ulpiano Sarmiento 2
 • Creates the tie A. Negotorium Gestio – Article 2144
• Makes the tie binding • Taking charge of management and
• When the meeting of minds perfected, administration of a property or
bilateral business that is abandoned or
TWO ELEMENTS OF CONSENT: neglected
a. OFFER • Not the owner, he does not have
Ø definite – determined – prestation will authority ( tactily or expressly) –
concur ; the object of the prestation walang pahintulot
Ø Complete – ofer must have brought out • Pakialamero
ALL aspects that will for the offeree ; just • Creates a tie ; prestation
accept or offer • There is an Owner/Beneficiary and
b. ACCEPTANCE gestor/officious manager
Ø UNCONDITIONAL – if there is at least a • Officious – excessively forward
slight deviation to an offer, it is not Terminated:
acceptance but creates a new tie -- a 1. Return of the owner
COUNTER OFFER – counter proposal – no 2. Authorized expressly – there is an obligation
juridical tie of contract or agency
Ø This would result to the consent Requisites :
• Need not be in writing – need not be 1. there is a property or business
expressed 2. abandoned and/or neglected
• Juridical exists upon the offer & acceptance 3. taking over of the management or
• Art. III, Sec. 10 – protects the non-impairment administration without the knowledge of the
of contracts – bawal pakialaman ng 3rd party— owner
inviolable 4. not have been tacitly or expressly authorized
Article 1306 – not contrary to law , good customs, 5. voluntarily does it
morals, public policy, or public order – sets the a. Own volition – own free will
limitations otherwise VOID b. Knowledge - that he will care fot he
2. Object property for the benefit of the owner
3. Cause • RECIPROCAL CONTRACT
• One tie, several prestations
ARTICLE 1160 : QUASI –CONTRACTS Prestations:
• The provision tells you nothing 1. TO DO – officious manager is passive ;
• Leads you to Art. 2142-2175 beneficiary is active
• Def’n: certain lawful, voluntary, and unilateral 2. TO GIVE – beneficiary is passive; officious
acts manager is active
• Objective: integrating the natural law to • Officious manager may initiate a cause of
positive law action for reasonable compensation.
• If QC is not in NCC – there will be no cause of
action B. SOLUTIO INDEBITI –Art. 2154
• Why QC? B/c it is semi, it is like but not Requisites:
entirely – it is like a contract but not the same 1. Something is delivered
CONTRACTS QUASI-CONTRACTS 2. No right to receive it
Lawful Lawful 3. There is a mistake
Voluntary voluntary • Spouses Javier v. CA : look for this case L
Bilateral – offer and Unilateral –one only
accept C. INNOMINATE CONTRACTS- Articles2164-2175
• Do ut des

JTVS | Obligations & Contracts | 1M | Dean Ulpiano Sarmiento 3

 • Do ut facias • culpa aquiliana- quasi delict
• Facio ut facias
• Facio ut des
Examples :
Ø 2164 – support given by a stranger
Ø 2165 – funeral expenses borne by a third
person without knowledge of relatives
Ø 2166 – support orphan, insane, indigent
Ø 2167 – accident, injured, ill, treatment –
victim not in a position to give his consent
Ø 2168 – fire flood storm or other calamity –
property destructed but saved by another
Ø 2169 – government, upon failure of person
to comply with health and afety
regulations , undertakes necessary work
Ø 2170- accident or fortituous event –
movable separately – co-owners
Ø 2173 – a third person, without knowledge
of debtor, pays debt

ARTICLE 1161 : ACTS/OMISSIONS
• those that are punishable by law
• established that the crime is what is described
• know the elements of the crimes
• Art. 100 – crim liable is civ liable
• Crim – penalty & fine
• Civ – Art. 104-106 RPC- Restitution,
Reparation, Indemnification
• Can commit a crime but only civilly liable :
Exempting circum – JEMA

ARTICLE 1162: QUASI-DELICT
Requisites:
1. there is an act or omission
2. thru fault or negligence
3. causing damage or injury to another
4. there is a causal connection between fault or
negligence and damage or injury done
DELICT QUASI-DELICT
Unlawful Unlawful
Act or omission Act or omission
Voluntary involuntary
intentional No intention
• there is a need of a certain level of prudence
to avoid fault or negligence
• culpa criminal – criminal negligence – act
causing damage
JTVS | Obligations & Contracts | 1M | Dean Ulpiano Sarmiento 4