Joshua 1:8

8 Keep this Book of the Law always on your lips;
meditate on it day and night, so that you may be
careful to do everything written in it. Then you will
be prosperous and successful.
* this is just an example but it doesn’t really need to be
in a contract , in can be in oral or written agreement
unless in my personal opinion there’s a REAL
PROPERTY INVOLVED, it must be in written. (not so
sure sorry)

OBLIGATIONS AND CONTRACTS REVIEWER

Chapter 1
Art. 1156. An obligation is a juridical necessity
to give, to do or not to do. (n)
FORM of OBLIGATIONS
1. General Rule: Does not require any form for their
(obligations) validity or binding force.
2. Obligation arising from other sources, do not have any
form at all. (1157)

Obligation OBLIGATION
(Latin; Obligatio means tying/binding) - Act/performance which law will ENFORCE
RIGHT
Tie or bond recognize by law which one (obligor) is -Power person has under law
bound in favor of another (obligee) to render something WRONG
-- and this may consist in GIVING A THING (TO - Act or omission of one party in violation of the legal
GIVE) , DOING CERTAIN ACT (TO DO) , OR NOT right/s of another.
DOING A CERTAIN ACT (NOT TO DO) Elements:
A. Obligee’s legal right
B. Correlative legal obligation to respect or not to violate
Obligation is a "JURIDICAL NECESSITY" because
said right
courts of justice may be called to enforce.
C. Act violating obligation that cause injury/ damage to
the Obligee.
In this scenario, Obligor is treated as Debtor (enforce to
*A WRONG or cause of action only arises at the
do his obligation) and Obligee as Creditor ( has the right
moment RIGHT has been VIOLATED.
to the performance of obligation /receiver of obligation )

*The debtor may also be liable to damages , which KINDS OF OBLIGATION

represents sum of money given as COMPENSATION to a. REAL OBLIGATION (to give)
injury or harm suffered by creditor (sana ol binabayaran - which subject matter is a thing that Obligor must
pag sinaktan hmp) deliver.
b. PERSONAL OBLIGATION
- Which subject matter is an ACT (Services)
In other words, debtor must comply with his obligation
1. POSITIVE - to do
whether he likes it or not ; otherwise he will be visited
2. NEGATIVE - Not to do
with harmful/undesirable consequences.
Art. 1157. Obligations arise from:
BUT Remember , "Not all" OBLIGATIONS are
(1) Law;
ENFORCEABLE because not all are Recognize by law .
(2) Contracts;
(3) Quasi-contracts;
* 4 ESSENTIAL REQUISITES / ELEMENTS OF AN (4) Acts or omissions punished by law; and
OBLIGATION (5) Quasi-delicts. (1089a)
Those are called SOURCES of Obligations
1. PASSIVE SUBJECT - Debtor / Obligor
2. ACTIVE SUBJECT – Creditor / Obligee A. Emanating from LAW
3. OBJECT / PRESTATION
Is the Obligation itself - to give to do or not by debtor 1. Law – imposed by law itself
(without this ; tapos Ang usapan HAHAHA kasi walang
e.g. paying taxes
ipeperform o need gawin si debtor ; walang obligation)
4. JURIDICAL / LEGAL TIE also called “efficient
cause”
Contract (e.g. marriage contract)

B. Emanating from PRIVATE ACTS
a. LICIT (LEGAL/LAWFUL)
2. Contracts – arise from stipulation of
the parties
e.g. obligation to pay creditors by
virtue of agreement
3. Quasi- contracts – ( quasi kasi
means “ something like but not” )
- when they arise from LAWFUL ,
VOLUNTARY AND UNILATERAL ACTS
which are enforceable to the end
that no one must be benefited in
the expense of another.
In a sense, may be considered
arising from LAW.
e.g. obligation to return money paid
by mistake or which is not due.
(INVOLVE CONTRACTING PARTIES
BUT AT THE SAME TIME LAWFUL)
b. ILLICIT (ILLEGAL/UNAWFUL)
4. Acts or omissions punished by Law
(CRIMES) – when arise from civil
liability which is CONSEQUENCE of
criminal offense.
5. Quasi- delicts or torts – arise from
damage caused to another through
an act or omission , there’s
negligence but no contractual
relation between the parties.
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)
Presumed= assumed, ibig sabihin lang po , wag
magdemand ng hindi naman talaga obligation ng ibang
tao sayo. Isa pa, legal obligations is a burden to obligor,
ieenforced lang ni court of justice ang demand mo if its
“clearly set forth in the law” un lang huehue.
Art. 1159. Obligations arising from contracts
have the force of law between the contracting
parties and should be complied with in good
faith. (1091a)
Contract – meeting of minds
1. Binding Force – contract have the force of
law between contracting parties. As a
source of enforceable obligation, contract
must be valid.
2. Requirement of valid contract
- should be not contrary to Law, Morals,
Good Customs, Public order and/or Policy.
3. Breach of Contract
- violation of contract (can be in whole or
in part)
Compliance in Good Faith
- Whats been agreed is what must be done.
Sincerity and honesty must be observed to
prevent unfair advantage over the other.
Art. 1160. Obligations derived from quasi-
contracts shall be subject to the provisions of
Chapter 1,
Title XVII, of this Book. (n)
Quasi- contract like I said earlier is not totally a
Contract because in contract , there’s a meeting
of mind or consent; parties entered into a formal
agreement. In Quasi- contract , there’s no consent
but same is supplied by fiction of law; law
consider parties entering into a contract (not
actually done so) .
 Kinds
1. Negotiorum Gestio- voluntary
management of property.
- nagkusa kang alagaan/asikasuhin
yung pag mamay ari ng iba at kapag nag
incurred ka ng expenses, the true
owner of property must reimburse the
same as if u two were having a
contract.
2. Solutio Indebiti – when you receive
something that is not really for you;
RECEIVING BENEFITS(THING/MONEY)
THROUGH MISTAKE.
3. OTHER EXAMPLE - Provided in Art.
2164 – Art. 2175 of Civil Code.
SECTION 3. - Other Quasi-Contracts
Art. 2164. When, without the knowledge of the
person obliged to give support, it is given by a
stranger, the latter shall have a right to claim the
same from the former, unless it appears that he
gave it out of piety and without intention of being
repaid. (1894a)
Art. 2165. When funeral expenses are borne by a
third person, without the knowledge of those
relatives who were obliged to give support to the
deceased, said relatives shall reimburse the third
person, should the latter claim reimbursement.
(1894a)
Art. 2166. When the person obliged to support an
orphan, or an insane or other indigent person
unjustly refuses to give support to the latter, any
third person may furnish support to the needy
individual, with right of reimbursement from the
person obliged to give support. The provisions of
this article apply when the father or mother of a
child under eighteen years of age unjustly refuses
to support him.
Art. 2167. When through an accident or other
cause a person is injured or becomes seriously ill,
and he is treated or helped while he is not in a
condition to give consent to a contract, he shall
be liable to pay for the services of the physician or
other person aiding him, unless the service has
been rendered out of pure generosity.
Art. 2168. When during a fire, flood, storm, or
other calamity, property is saved from destruction
by another person without the knowledge of the
owner, the latter is bound to pay the former just
compensation.
Art. 2169. When the government, upon the failure
of any person to comply with health or safety
regulations concerning property, undertakes to do
the necessary work, even over his objection, he
shall be liable to pay the expenses.
Art. 2170. When by accident or other fortuitous
event, movables separately pertaining to two or
more persons are commingled or confused, the
rules on co-ownership shall be applicable.
Art. 2171. The rights and obligations of the finder
of lost personal property shall be governed by
Articles 719 and 720.
Art. 2172. The right of every possessor in good
faith to reimbursement for necessary and useful
expenses is governed by Article 546.
Art. 2173. When a third person, without the
knowledge of the debtor, pays the debt, the rights
of the former are governed by Articles 1236 and
1237.
Art. 2174. When in a small community a
nationality of the inhabitants of age decide upon a
measure for protection against lawlessness, fire,
flood, storm or other calamity, any one who
objects to the plan and refuses to contribute to
the expenses but is benefited by the project as
executed shall be liable to pay his share of said
expenses.
Art. 2175. Any person who is constrained to pay
the taxes of another shall be entitled to
reimbursement from the latter.
 
Art. 1161. Civil obligations arising from criminal
offenses shall be governed by the penal laws,
subject to the provisions of Article 2177, and of
the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and of
Title XVIII of this Book, regulating damages.
(1092a)
1. Every person criminally liable for an act or
omission is also civilly liable for DAMAGES.
2. In crimes which cause NO MATERIAL
DAMAGE, there is no civil liability to be
enforced. (pag wala namang damage , ndi
na liable for it ) BUT a person NOT
CRIMINALLY RESPONSIBLE may STILL be
LIABLE CIVILLY. (pero kapag walang crime
pero merong damage, magbabayad parin
for it)
 Scope of civil liability
a. Restitution (pagbabalik ng bagay na
ninakaw mo lang)
b. Reparation for the damage
(pagbabayad sa nasira mo sa ninakaw
mo)
c. Indemnification for consequential
damages (pagbabayad sa naging
consequence dun sa inagawan mo)
Art. 1162. Obligations derived from quasi-delicts
shall be governed by the provisions of Chapter 2,
Title XVII of this Book, and by special laws.
(1093a)
 Requisites
1. There must be act/omission
2. There must be fault/ negligence
3. There must be damage caused
 4. There must be a direct
relation/connection of cause and effect
between act/omission and the damage
5. There is NO PRE-EXISTING
CONTRACTUAL RELATION between
parties.
Quasi delict is somehow like a crime but not
intended (accident that cause DAMAGES) and
obligation arise . The one who is guilty is obliged
to pay the damages to the other affected party.

CRIME DISTINGUISHED FROM QUASI DELICTS

1. CRIME IS INTENDED; QD , THERES ONLY

NEGLIGENCE (PAGPAPABAYA)
2. C, PURPOSE IS PUNISHMENT; QD,
INDEMNIFICATION OF THE OFFENDED PARTY
3. C, AFFECTS PUBLIC INTEREST; QD, PRIVATE
INTEREST
4. C, TWO LIAB, CRIMINAL & CIVIL ; QD, CIVIL
ONLY
5. C, CANNOT BE SETTLED BY THE PARTIES
THEMSELVES; QD, CAN BE COMPROMISED AS
ANY OTHER CIVIL LIAB