General Principles of Obligations

Regulatory Framework for Business Transactions (RFBT)

ONLINE CLASS | ATTY. PAOLO MIGUEL JAVIER
Definition
Obligation – a juridical necessity to give, to do or not to do. (Art. 1156, CC)
Obligatio – Latin word meaning “to tie” or “bind”
Juridical Necessity explained
Juridical necessity means that in case of non-compliance, the courts may be
called upon for the enforcement or fulfillment of the obligation, and in the fault
thereof, for the economic value of the obligation. In proper cases or when warranted,
damages may be awarded to the injured party.
Damages vs. Damage
Damage - is the actual physical injury or harm which is suffered
Damages - is the monetary or pecuniary compensation which is paid
for suffering the injury or harm (damage)
Types of Obligations. Obligations may be civil or natural.
Civil Obligations versus Natural Obligations
Civil obligations are those which give rise to a right to its enforcement.
Natural obligations arise from equity and natural law, cannot be
enforced unlike civil obligations
Note: When someone receives a something by virtue of a natural law, the law
authorizes him to retain the thing received in case it was voluntarily performed or
fulfilled by the debtor.

Essential Requisites
Active Subject or Creditor:

Law on Obligations | Atty. Javier

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