Step 1: Before You Start

WHAT ARE QUASI-CONTRACTS?

It is considered as one of the sources of obligations.

It is not an implied contract.
There is no meeting of the minds between the parties here, so it may not qualify as a
contract.
A juridical relation is created by a quasi-contract so that nobody shall enrich himself at
the expense of another.
 Step 2: The Basics
Definition
The Civil Code of the
Philippines makes reference to
two specific types of quasi-
contract: Negotiorum Gestio
Solutio Indebiti.
There are also other types of
quasi-contracts which are
discussed from articles 2164
to 2175.
Negotiorum Gestio
This principle pertains to the
unauthorized management of a
neglected or abandoned property or
business of another person who is not
the owner thereof.
It is a quasi-contract which should not
be performed for profit.
The intention of that unauthorized
manager must be to preserve and/or
protect the abandoned or neglected
property, for the owner's sake.
Solutio Indebiti
This can be traced back to the ancient
principle that no one shall enrich himself
unjustly at the expense of another.
This principle applies where:A payment is
made when there exists no binding relation
between the payor, who has no duty to pay,
and the person who received the payment;
and the payment is made through mistake,
and not through liberality or some other
cause.
It applies in case of erroneous payment of
undue interest.
 Step 3: Time to Quahoot!

Please open up the Kahoot app or enter the link:

https://create.kahoot.it/share/quahoot/4587ee4d-5d58-46de-b935-
d74f998c216d

The questions will be flashed here on the screen then please answer
through the Kahoot app!
SOLUTIO
INDEBITI
 Question 1
Squidward owed Mr. Krabs P2,000. By
mistake, Squidward paid P3,500. Mr.
Krabs, being greedy and a complete
cheapskate, told Squidward that the
excess payment of P1,500 was his
rightfully his now since Squidward handed
it over to him and that he had no
obligation to return the extra money to
Squidward.

Is Mr. Krabs correct?

 Answer

No. Mr. Krabs has the obligation to return

the P1, 500 excess because there was
payment by mistake.

Art. 2154 provides that when a person

receives something and the delivery of that
thing was by reason of a mistake, the
person who received the thing has the
obligation to return it.
 Question 2
Nonick had the iPhone 12 delivered to his friend Ed’s
house by mistake as he input the wrong address on the
Angkas app. Instead of the right address, it was
delivered to Ed’s house. When Ed received it from Kuya
Angkas, he checked inside the bag to see what it was
and it was an iPhone 12, but it was not placed inside a
box, only in a plastic bag.

Curious as to why Nonick would send him an iPhone,

he opened it up and found out that it was stolen from
Rose. Ed felt morally obligated to return the iPhone to
the right person, but he was unsure if he should return
it to Nonick or to Rose. Who should Ed return it to?
 Answer
Ed should return it to Rose since Rose is the
rightful owner of the stolen iPhone. Art. 2158
provides that the payee who discovers that he
received from the payor a stolen property, must
inform the true owner, if he knows the identity
of the true owner.

The true owner has one month within which to

reclaim the thing from the payee. If he fails to
reclaim, the payee is fully justified to return the
thing to the payor (who does not own the
thing).
 Question 3
A new high-end clarinet from Baermann was erroneously delivered to
Squidward’s house. Squidward, knowing full well that he did not order a clarinet
received it anyway, thinking that it was his lucky day that someone made a
mistake in deliveries.

Being a frustrated clarinet player, Squidward tried it out immediately.

Unfortunately, Squidward is not the best clarinet player and somehow ended up
choking on the clarinet.

In an attempt to get it out, Squidward broke the clarinet in half so that he could
dislodge it from his throat.Later on, Baermann tracked down Squidward’s house
and ask that Squidward return the clarinet that was erroneously delivered to his
house.

Squidward refused since he had already broken it and argued that since it was
delivered to him, he was now the rightful owner and had no obligation to give it
back due to Baermann’s carelessness with his deliveries. Baermann asserts that
he should give it back and Squidward must pay for the loss and damage on the
high-end clarinet. Who is correct?
 Answer

Baermann is correct.

Squidward acted in bad faith by receiving the

clarinet since he was fully aware that he was not
entitled to the clarinet delivered.

Additionally, since he now broke it, he is

obligated to pay for the loss of the clarinet and
pay damages to Baermann.
 Question 4
Saitama bought groceries for the weekend, totalling
Php.5,000. He approached the counter to get his
things checked out but turned around to get more
vegetables.

When he returned to pay for the groceries, Saitama

ended up paying for someone else’s groceries by
accident for Php.6,000.

The grocery store must:

A. Return the money that Saitama paid to him
B. Allow Saitama to keep the groceries he paid for
C. Do nothing
 Answer

Answer: A.

Under Art 2154, the grocery store has an

obligation to return the money they were not
bound to receive while Saitama has an
obligation to return the groceries he did not
intend to buy.
 Question 5

A payee in bad faith who accepts an undue payment

must pay the following:
I. Legal interest
II. Expenses in the delivery of the payment
III. Taxes associated with the payment
IV. Costs for the loss or impairment of the undue
payment for any cause

A. I only
B. I, II and IV only
C. I, II, III, and, IV
D. I and IV only
 Answer

Answer D: I and IV only.

Under Art 2159, a payee in bad faith accepting

an undue payment must pay legal interest if a
sum of money is involved and for the fruits
received if any. The payee in bad faith is also
answerable for any loss or impairment of the
thing from any cause and for damages to the
person who delivered the thing until it was
recovered.
NEGOTIORUM
GESTIO
 Question 1

True or False:

The law requires all obligations

to arise from a contract for it to
be valid.
 Answer

Answer: False

Case in point: Negotiorum gestio, whereby one

who voluntarily takes charge of the agency or
management of the business or property of
another, without any power from the latter, is
obliged to continue the same until the
termination of the affair and its incidents, or to
require the person concerned to substitute him,
if the owner is in a position to do so.
 Question 2

True or False:

The officious manager shall always be liable for

fortuitous events:
1. If he is manifestly unfit to carry on the
management.
2. If by his intervention, he prevented a more
competent person from taking up the management.
 Answer

Answer: False

Art. 2148 states that the exception to this rule

is when the management was assumed to save
property or businesses from imminent danger.
 Question 3
Juan owns a chicken farm in Samar. His best friend, Pedro, a reseller of CCTVs happens to
live in a land situated next to the said farm in a neighborhood known for poultry thieves.

Anticipating that he might get called as a contestant of a reality show hosted by Sarah G,
Juan asked Pedro to take care of the farm while he was away in Manila. To which Pedro
answered, “Okay, Chicken lang yan, pare.”

A month later, Juan’s lifelong dream of meeting Sarah G finally came true. He was summoned
by the TV network and he finally got to meet his idol, Sarah G. He was chosen as a
contestant of the famous reality show hosted by Sarah which ran for a month.

While he was away, Pedro took care of Juan’s farm. He immediately noticed that some good-
for-nothing neighbors, the infamous poultry thieves would often circle around at night,
waiting for an opportunity to get some free chicken.

Thus, Pedro incurred expenses by installing CCTV cameras and bolstered the barricades of
the chicken farm. Upon return, Pedro was advised by his friend, Mateo, a second year law
student to demand payment. He says that this is just right under the concept of Negotiorum
Gestio under the Civil Law; that Pedro in this case acted as the officious manager.

Question: Is Mateo correct in saying that this would fall under the concept of Negotiorum
Gestio?
 Answer
Answer: No

The following are the requisites of Negotiorum Gestio:

1. The intervention of the officious manager relates to a definite and existing
thing or business which is neglected or abandoned
2. That there is no administrator or representative of the owner who is
charged with management
3. That the owner of the business has not expressly prohibited the
management of the same.
4. The officious manager has not been authorized by the owner to intervene
in the management expressly or impliedly.
5. The officious manager does not intend to profit from his intervention. His
intention is intended to avert loss or damage to the owner.
6. The officious manager is not acting on the basis of an error that the
property or the business belongs to him.

Since Juan asked Pedro to take care of the farm while he was away in Manila,
requirement number 4 is wanting. Thus, the relationship of Agency actually
exists in this case, not Negotiorum Gestio.
 Question 4
Ross is the owner of Central Perk car wash located beside Sherwood place, Taft
Avenue, Manila, a property which Ted, the owner of a nearby restaurant had to
oversee in Ross’ absence, who had no administrator or representative when he
had to abandon his carwash business for two months, during his bout with a
mental health condition.

Fortunately for him, this coincides with the nearby University’s semestral break
and thus, was during a relatively less busy season. After consultation with their
lawyer friends, it was established that the situation would fall under the
concept of Negotiorium Gestio and Ted’s management was ratified.

However, Ross would insist that upon examination of the books, since he barely
gained any profit from the business during the span that he was absent, Ross
refused to reimburse Ted for the lawful obligations, including necessary and
useful expenses of Central Perk carwash.

Is Ted entitled to reimbursement?

Would the answer change if Ted’s management was not ratified by Ross?
 Answer

First question: Yes.

Article 2149 provides that the ratification of the management by the owner of
the business produces the effects of an express agency, even if the business
may not have been successful.

Second question: No. it would not.

Article 2150 provides that although the officious management may not have
been ratified, the owner of the property or business who enjoys the
advantages of the same shall be liable for obligations incurred in his interest,
and shall reimburse the necessary and useful expenses and for the damages
which the manager may have suffered in the performance of his duties.
 Question 5

Sarah G had a meet and greet in Matnog, Sorsogon.

Thus, she had to leave her hacienda despite not having
hired caretakers yet. Her neighbor JJ, an avid plantito
and certified Popster noticed that her crops were
dying.

Out of his love and admiration for his idol, JJ decided

to cultivate the land, water the plants, bought fertilizer
and plant supplements and placed them on the plants,
and removed the weeds. He also installed a simple
irrigation system for her crops.
 Question 5
Once Sarah G returned from her Matnog trip, she noticed that
her crops were well-maintained. She thanked JJ for his hard
work.

Despite his undying love for his idol, JJ asked Sarah G to

reimburse him for the expenses he incurred in maintaining her
hacienda. He even showed her a detailed accounting of his
spendings including receipts and other proofs of payment.

After seeking advice from Mommy D, Sarah G refused to

reimburse JJ because she did not instruct him to take care of
her hacienda in the first place.

Instead, she offered a free, on-the-spot performance of her hit

song Tala. JJ sought the advice of his lawyer friend Lloydie, who
advised him that Sarah G. should reimburse him as his case falls
under negotiorum gestio. Should Sarah G reimburse JJ?
 Answer

Yes.

Article 2150 of the Civil Code stipulates that the owner is

obliged to pay the officious manager for necessary and
useful expenses even though the owner has not yet ratified
his actions.

In this case, the fertilizer and supplements were necessary

and useful expenses since they were vital to the crops’
survival. The irrigation system is a lawful expense since
Sarah G won’t have to manually water her crops anymore
hence making it beneficial to her. Hence, JJ should be
reimbursed.
OTHER QUASI
CONTRACTS
 Question 1

If you see a car rolling towards your friend’s

car during an earthquake, and you stop it with
your hands and break them in the process
because you’re not a vampire, does your
friend have to pay your medical bill?
 Answer

Answer: Yes.

Article 2168 of the Civil Code envisions this

scenario as a calamity, in which if property is saved
from destruction by another person (without their
knowledge), the person is bound to pay the former
just compensation for saving the property.
 Question 2

If you accidentally swallow your Juul through an

accident and Dr. Mayor saves your life by giving
medical assistance, are you liable to pay for her
services as a medical professional?

Bonus: If she explicitly says she did it for free,

would you still have to pay?
 Answer

Yes. This is the exact scenario contemplated in

Article 2167 of the Civil Code, but requires that the
person who is treated is unable to give consent at
the time.

Bonus answer: No. If the service was rendered out

of pure generosity, you will not be liable to pay.
 Question 3

Which one of following are not required to give

support?

A. A mudblood married to a pure blood

B. A muggle married to a pure blood
C. A half blood who has a muggle child
D. Illegitimate siblings where one is a pure blood and
the other a half-blood
E. A pure blood who has an illegitimate half blood child
F. A pureblood who stumbled upon a half blood child
 Answer

Letter F.

In accordance to Article 2164, there is no

obligation for a person to render support upon a
stranger.
 Question 4
D & T is a large supermarket chain. During a pandemic, and
under strict protocols and guidelines not to do so, KK Pentel
visited one of D & T’s outlets to shop.

He later was diagnosed with the respiratory disease that

caused the pandemic. The government resolved to shut D & T
down, but D & T refused to comply because as it turns out, KK
Pentel is one of the owners.

Nevertheless, the government, in exercise of its police powers,

shut down the supermarket chain. In doing so, the government
spent millions of pesos to cordon off the supermarket in yellow
tape.

Can KK Pentel be compelled to pay for the expense of yellow

tape?
 Answer

Yes.

As summated by Article 2169 of the Civil Code,

when the government, upon the failure of any
person to comply with health or safety regulations
concerning property, undertakes the necessary
work, even over his objection, he shall be liable to
pay for expenses.
 Question 5

One day Martha and Thomas Wayne had an agreement

with Arthur Fleck that should either of the spouses die
he shall pay for their funeral.

On the eve of the premier of Pakboy Takusa, Janno

Gibbs shot Thomas and Martha in front of Bruce.
Arthur buried the two and demanded payment from
Alfred, Bruce’s guardian.

Can Arthur legally demand?

 Answer

No he cannot demand.

Article 2165 provides only for a situation in which

funeral expenses were paid without the relatives
knowledge or consent.In this case, it would depend
upon the agreement between Thomas, Martha and
Arthur.
THANK YOU!
We hope you learned something new!