LAW ON OBLIGATIONS AND CONTRACTS
Determinate Thing
ARTICLE 1156
Obligation
– Latin word “obligatio” meaning tying or
binding
- it is a tie or bond recognized by law
Juridical Necessity – in case of non-
compliance, the court may be called upon by
the creditor to enforce its fulfillment
Damages – the sum of money given as a
compensation
Essential Requisites of an Obligation
Passive Subject – the person who is bound
to the fulfillment of the obligation
Active Subject – the person who is entitled
to the right to demand the fulfillment
Object or Prestation – the conduct required
to be observed by the debtor
Legal Tie – which binds or connect the
parties to the obligation
Form of an Obligation
- refers to the manner in which an obligation
is manifested or incurred
Obligation – is the act or performance which
the law will enforce
Right – it is the power in which the person
has under the law
Wrong – is an act or omission in violation of
the legal right
Injury – is a wrongful violation of the legal
right
KINDS OF OBLIGATION
Real Obligation – obligation to give
Personal Obligation – obligation to do
(positive personal obligation) and not to do
(negative personal obligation)
ARTICLE 1157
Sources of Obligations
Law
- when they are imposed by law itself
Contracts
- they arise from the stipulations of parties
Quasi-Contracts
- they arise from lawful, voluntary, and
unilateral acts
Acts or Omissions punished by Law
- they arise from civil liability which is the
consequence of criminal offense
Quasi-Delicts
- arise from damage caused to another
through an act or omission, fault or
negligence
ARTICLE 1158
Legal Obligation – not presumed because
they are considered a burden upon the
debtor
ARTICLE 1159
Contract – is a meeting of two minds
between 2 persons
(1) Binding Force
(2) Requirement of a Valid Contract
(3) Breach of Contract
Compliance in Good Faith
- means compliance or performance in
accordance with the stipulations
ARTICLE 1160
Quasi-Contract – is a juridical relation
resulting from lawful, voluntary, and
unilateral acts
Kinds of Quasi-Contracts
Negotiorum Gestio – is the voluntary
management of properties
Solutio Indebiti – something is received
when you have no right to demand it
ARTICLE 1161
Scope of Civil Liability
- Restitution
- Reparation for the damage caused
- Indemnification for Consequential Damages
ARTICLE 1162
Quasi-Delict – is an act or omission by a
person which causes damage to another in
his person, fault or negligence
Requisites of Quasi-Delict
- There must be an act or omission
- There must a fault or negligence
- There must be a damage caused
- There must be a direct relation or
connection of cause and effect between the
act or omission and the damage
- There is no pre-existing contractual relation
between the parties
ARTICLE 1163
Specific or Determinate – particularly
designated or physically segregated
Generic or Indeterminate – refers only to a
class or genus to which it pertains and
cannot be pointed out with particularity
Duties of Debtor in Obligation to Give
Preserve the Thing – the debtor has the
incidental duty to take care of the thing
- Diligence of a Good Father of Family
- Another Standard of Care
- Factors to be Considered
- Reason for Debtor’s Obligation
Deliver the Fruits of the Thing
Deliver the Accessions and Accessories
Deliver the Thing Itself
Answer in Case of Non-Fulfillment or Breach
Duties of Debtor in Obligation to give
indeterminate Thing
- To deliver a thing which is of the quality
intended by the parties
- To be liable for damages in case of fraud,
negligence, or delay
ARTICLE 1164
Different kinds of Fruits
Natural Fruits – are the spontaneous
products of the soil, and other products of
animals
Industrial Fruits – are those produced by
lands through cultivation or human labor
Civil Fruits – those derived by virtue of a
juridical relation
Personal Right – is the right or power of the
person to demand from another the
fulfillment of an obligation
Real Right – is the right or interest of a
person over a specific thing
ARTICLE 1165
Remedies of Creditor in Real Obligation
Specific Real Obligation
- Demand Specific Performance
- Demand Rescission or Cancellation
- Demand Payment of Damages Only
Generic Real Obligation
- can be performed by a third person
ARTICLE 1166
Accessions – are the fruits of a thing or
additions to or improvement upon a thing
Accessories – are things joined to or included
with the principal thing
CHAPTER 1167
Situations Contemplated
- The debtor fails to perform the obligation
- The debtor performs an obligation but
contrary to the terms thereof
- The debtor performs obligation in poor
manner
Remedies of Creditor in a Positive Personal
Obligation
- To perform the obligation by himself or by
another person except of personal
considerations are involved
- To recover damages
- In case the obligation was poorly done, the
court may order that it be undone if it is
possible to undo what is done
Both of the remedies may give the creditor
the choice to have the obligation performed
by the third person at the expense of the
debtor
CHAPTER 1168
Remedies of Creditor in a Negative Personal
Obligation
- The creditor’s remedies is to undo what has
been done plus the damages. If the thing is
impossible to be undone, then the debtor
will be liable to his obligation not to do.
ARTICLE 1169
DELAY (DEFAULT OR MORA)
Ordinary Delay – simply failure to perform
the obligation on time
Legal Delay – failure to perform the
obligation on time which constitutes a
breach of contract
KINDS OF DELAY
Mora Solvendi – the delay of the debtor to
fulfill his obligation
Mora Accipiendi – the delay of the creditor
to accept the performance of the obligation
Compensatio Morae – the delay of the
debtors in reciprocal obligations
Requisites of Delay or Default
- Didn’t fulfill on particular date
- Demand
- Didn’t comply with such demand
When Demand is not necessary
- When the obligation so provides
- When the law so provides
- When time is of the essence
- When demand is useless
- When there is performance in reciprocal “
ARTICLE 1170 EFFECT OF THE NEGLIGENCE ON THE
INJURED PARTY
GROUNDS FOR LIABILITY
Fraud (Deceit or Dolo) When the creditor has his own fault to his
- the deliberate or intentional evasion of the own injury, he cannot recover damages. If
obligation he’s negligence was only contributory or lack
Negligence (Culpa) of due care, then the court may only mitigate
- the act or omission of the fulfillment of the the damages that the creditor may recover.
obligation
Delay (Mora) ARTICLE 1173
- failure to fulfill obligation on time FAULT OR NEGLIGENCE
Contravention of the terms of the - consists of the omission of that diligence
Obligation which is required by the nature of the
- the violation of the terms and conditions in obligation
the obligation
FACTORS TO BE CONSIDERED
ARTICLE 1171 - Nature of the obligation
- Circumstances of the Person
RESPONSIBILITY ARISING FROM FRAUD
- Responsibility arising from fraud can be - Circumstances of time
- Circumstances of the place
demanded with respect to all kinds of
obligations, unlike the negligence, and this is ARTICLE 1174
because fraud is considered serious and evil
in evading the fulfillment of obligation FORTUITOUS EVENT
- It is any event which cannot be foreseen, or
WAIVER OF ACTION FOR FUTURE FRAUD which through foreseen, is inevitable.
VOID
- The waiver for a future fraud is void FORTUITOUS EVENT DISTINCTIONS
because fraud is still considered as against
the law, unlike the negligence that the court Acts of Man
may mitigate the damage - Strictly speaking, fortuitous event is an
event independent of the will of the obligor
WAIVER OF ACTION FOR PAST FRAUD VALID but not of other human wills
- The waiver for a past fraud is valid because
it is considered an act of generosity and Acts of God
magnanimity of the injured party which - They refer to what is called majeure or
exempt him from the liabilities. those events which are totally independent
will of every human being
ARTICLE 1172
RULES AS TO LIABILITY IN CASE OF
RESPONSIBILITY ARISING FROM FORTUITOUS EVENT
NEGLIGENCE DEMANDABLE
- Negligence depends on each circumstances When expressly specified by law
of the case. The court may fix on increasing
or decreasing the damages recoverable. If
both parties are negligent to each other, the
fault of the one may cancel the negligence of
another.
VALIDITY OF WAIVER OF ACTION ARISING
FROM NEGLIGENCE
- Actions for future negligence may be
renounced but except from the obligations
that requires extraordinary diligence or if
negligence is deliberate or intentional which
is considered as fraud
KINDS OF NEGLIGENCE
Contractual Negligence – it makes the
debtor liable through his negligence on
fulfilling the contract
Civil Negligence – this is by somehow the
source of the obligation
Criminal Negligence – negligence resulting in
commission or crime