TITLE I – OBLIGATIONS

CHAPTER 1 – GENERAL PROVISIONS

Article 1156 – 1162

Article 1156

 Meaning of obligation
 Meaning of juridical necessity
 Nature of obligation under the Civil Code
o Civil obligations
o Natural obligations
 Essential requisites of an obligation
o A passive subject
o An active subject
o Object or prestation
o A juridical or legal tie
 Forms of obligations
 Obligation, right, and wrong distinguished
 Kinds of obligation according to the subject matter
o Real obligation
o Personal obligation
 Positive personal obligation
 Negative personal obligation

Article 1157

 Sources of obligation
o Law
o Contracts
o Quasi-contracts
o Crimes or acts or omissions punished by law
o Quasi-delicts or torts
 Sources classified
o Those emanating from law
o Those emanating from private acts

Article 1158

 Legal obligations

Article 1159

 Contractual obligations
 Compliance in good faith

Article 1160
  Quasi-contractual obligations
 Kinds of quasi-contracts
o Negotiorum gestio
o Solutio indebiti
o Other examples of quasi-contracts

Article 1161

 Civil liability arising from crimes or delicts

 Scope of civil liability

Article 1162

 Obligations arising from quasi-delicts

 Requisites of quasi-delict
 Crime distinguished from quasi-delict

CHAPTER 2 – NATURE AND EFFECT OF OBLIGATIONS

Article 1163-1178

Article 1163

 Meaning of specific or determinate thing

 Meaning of generic or indeterminate thing
 Specific thing and generic thing distinguished
 Duties of debtor in obligation to give a determinate thing
o Preserve the thing
 Diligence of a good father of a family
 Another standard of care
 Factors to be considered
 Reason for debtor’s obligation
o Deliver the fruits of the thing
o Deliver the accessions and accessories
o Deliver the thing itself
o Answer for damages in case of non-fulfillment or breach
 Duties of debtor in obligation to deliver a generic thing

Article 1164

 Different kinds of fruits

o Natural fruits
o Industrial fruits
o Civil fruits
 Right of creditor to the fruits
 When obligation to deliver the fruit arises
 Meaning of personal right and real right
 Personal right and real right distinguished
  Ownership acquired by delivery

Article 1165

 Remedies of creditor in real obligation

o Specific real obligation
o Generic real obligation
 Where debtor delays or has promised delivery to separate creditors

Article 1166

 Meaning of accessions and accessories

 Right of creditor to accessions and accessories

Article 1167

 Situations contemplated in Article 1167

 Remedies of creditor in positive personal obligation
 Performance by a third person

Article 1168

 Remedies of creditor in negative personal obligation

Article 1169

 Meaning of delay
 Kinds of delay or default
o Mora solvendi
o Mora accipiendi
o Compensatio morae
 No delay in negative personal obligation
 Requisites of delay or default by the debtor
 Effects of delay
o Mora solvendi
o Mora accipiendi
o Compensatio morae
 When demand is not necessary to put debtor in delay
o When the obligation so provides
o When the law so provides
o When time is of the essence
o When demand would be useless
o When there is performance by a party in reciprocal obligation

Article 1170

 Grounds for liability

o Fraud
o Negligence
 o Delay (mora)
o Contravention of the terms of the obligation
 Fraud and negligence distinguished

Article 1171

 Responsibility arising from fraud demandable

 Waiver of action for future fraud void
 Waiver for past fraud valid

Article 1172

 Responsibility arising from negligence demandable

 Validity of waiver of action arising from negligence
 Kinds of negligence according to source of obligation
o Contractual negligence (culpa contractual)
o Civil negligence (culpa aquiliana)
o Criminal negligence (culpa criminal)
 Effect of negligence on the part of the injured party

Article 1173

 Meaning of fault or negligence

 Factors to be considered
o Nature of the obligation
o Circumstances of the person
o Circumstances of time
o Circumstances of the place
 Measure of liability for damages
 Kinds of diligence required

Article 1174

 Meaning of fortuitous event

 Fortuitous event distinguished from force majeure
o Acts of man
o Acts of God
 Kinds of fortuitous events
o Ordinary fortuitous events
o Extra-ordinary fortuitous events
 Requisites of a fortuitous event
 Rules as to liability in case of fortuitous event
o When expressly specified by law
o When declared by stipulation
o When the nature of the obligation requires assumption of risk

Article 1175
  Meaning of simple loan or mutuum
 Meaning of usury
 Requisites for recovery of interest

Article 1176

 Meaning of presumption
 Two kinds of presumption
o Conclusive presumption
o Disputable (or rebuttable) presumption
 When presumption in Article 1176 do not apply
o With reservation as the interest
o Receipt without indication of particular installment paid
o Receipt for a part of the principal
o Payment of taxes
o Non-payment proven

Article 1177

 Remedies available to creditors for the satisfaction of their claims

Article 1178

 Transmissibility of rights
o Prohibited by law
o Prohibited by stipulation of the parties

CHAPTER 3 – DIFFERENT KINDS OF OBLIGATIONS

SECTION 1 – PURE AND CONDITIONAL OBLIGATIONS

Article 1179

 Meaning of pure obligations

 Meaning of conditional obligation
 Meaning of condition
o Future and uncertain
o Past but unknown
 Two principal kinds of condition
o Suspensive condition (condition precedent or condition antecedent)
o Resolutory condition (condition subsequent)
 Distinctions between suspensive and resolutory conditions
 When obligation is demandable at once
 Past event unknown to the parties

Article 1180

 Where duration of period depends upon the will of debtor

o The debtor promises to pay when his means permit him to do so
 o Other cases

Article 1181

 Effect of happening of rights

o Acquisition of rights
o Loss of rights already acquired

Article 1182

 Classification of condition
o As to effect
 Suspensive
 Resolutory
o As to form
 Express
 Implied
o As to possibility
 Possible
 Impossible
o As to cause or origin
 Potestative
 Casual
 Mixed
o As to made
 Positive
 Negative
o As to numbers
 Conjunctive
 Disjunctive
o As to divisibility
 Divisible
 Indivisible
 Porestative condition
 Where suspensive condition depends upon will of debtor
 Where suspensive condition depends upon will of creditor
 Where resolutory condition depends upon will of debtor
 Casual condition
 Mixed condition
 Where suspensive condition depends party upon will of debtor

Article 1183

 When article 1183 applies

 Two kinds of impossible conditions
o Physically impossible conditions
 o Legally impossible conditions
 Effects of impossible conditions
o Conditional obligation void
o Conditional obligation valid
o Only the affected obligation void
o Only the condition void

Article 1184

 Positive condition

Article 1185

 Negative condition

Article 1186

 Constructive fulfillment of suspensive condition

 Constructive fulfillment of resolutory condition

Article 1187

 Retroactive effects of fulfillment of suspensive condition

o In obligations to give
o In obligations to do or not to do
 Retroactive effects as to fruits and interest in obligation to give
o In reciprocal obligations
o In unilateral obligations

Article 1188

 Rights pending fulfillment of suspensive condition

o Rights of creditor
o Rights of debtor

Article 1189

 Requisites for application of Article 1189

 Kinds of loss
o Physical loss
o Legal loss
o Civil loss
 Rules in case of loss, deterioration or improvement of thing during pendency of suspensive
condition
o Loss of thing without debtor’s fault
o Loss of thing through debtor’s fault
o Deterioration of thing without debtor’s fault
o Deterioration of thing through debtor’s fault
o Improvement of thing by nature or by time
 o Improvement of thing at expense of debtor

Article 1190

 Effects of fulfillment of resolutory condition

 Applicability of Article 1189 to party with obligation to return

Article 1191

 Kinds of obligation according to the person obliged

o Unilateral
o Bilateral
 Remedies in reciprocal obligations
o Choice of remedies
o Remedy of rescission for non-compliance
 Court may grant guilty party term for performance
 Remedies are alternative
 Limitations on right to demand rescission
o Resort to the courts
o Power of court to fix period
o Right of third person
o Substantial violation
o Waiver of rights
 Rescission without previous judicial decree
o Where automatic rescission expressly stipulated
o Where contract still executory

Article 1192

 Where both parties are guilty of breach

o First infractor unknown
o First infractor cannot be determined

SECTION 2 – OBLIGATIONS WITH A PERIOD

Article 1193

 Meaning of obligation with a period

 Meaning of period or term
 Period and condition distinguished
o As to fulfillment
o As to time
o As to influence on the obligation
o As to effect, when left to debtor’s will
o As to retroactivity effects
 Kinds of period or term
o According to effect
  Suspensive period (ex die)
 Resolutory period (in diem)

Article 1194

 Effects of loss, deterioration, or improvement before arrival of period

Article 1195

 Payment before arrival of period

 Debtor presumed aware of period
 No recovery in personal obligations

Article 1196

 Presumption as to benefit of period

 Exceptions to the general rule
o Term is for the benefit of the debtor alone
o Term is for the benefit of the creditor
 Computation of term or period

Article 1197

 Court generally without power to fix a period

 Exception to the general rule
o No period is fixed but a period was intended
o Duration of the period depends upon the will of the debtor
 Legal effect where suspensive period/ condition depends upon will of debtor
 Period fixed cannot be changed by the courts

Article 1198

 When obligation can be demanded before lapse of period

o When debtor become insolvent
o When debtor does not furnish guaranties or securities promised
o When guaranties or securities given have been impaired or have disappeared
o When debtor violates an undertaking
o When debtor attempts to abscond

SECTION 3 – ALTERNATIVE OBLIGATION

Article 1199

 Kinds of obligation according to object

o Simple obligation
o Compound obligation
 Meaning of alternative obligation

Article 1200