PRELIM EXAMS ART 1156 – 1178

ART 1156 OBLIGATION - An obligation is a juridical necessity to give, to do or not to do.

ELEMENTS OF AN OBLIGATION —
1. ACTIVE SUBJECT (Obligee/Creditor): the person who has the right or power to
demand the prestation. ONE WHO IS DEMANDING THE PERFORMANCE OF THE
OBLIGATION.
2. PASSIVE SUBJECT (Obligor/Debtor): the person bound to the perform the
prestation. ONE BOUND TO PERFORM THE PRESTATION TO GIVE, TO DO, OR NOT TO DO.
3. PRESTATION (Object): the conduct required to be observed by the debtor/obligor (to
give, to do or not to do). KINDS: TO GIVE, TO DO, NOT TO DO.
Requisites of Object: a. licit - if illicit, it is void b. possible - if impossible, it is void c.
determinate
or determinable - or else, void d. pecuniary value
4. VINCULUM JURIS (Juridical or Legal Tie; Efficient Cause): that which binds or
connects the parties to the obligation. THRU: LAW (Husband and wife), BILATERAL
ACTS (contracts), UNILATER ACTS (Delicts, quasi delicts)

CIVIL OBLIGATION NATURAL OBLIGATION

AS TO EFFECT Gives to the obligee or Cannot be enforced by court action.

creditor the right of
enforcing it against the
obligor or debtor in a court
of justice.
AS TO SOURCE Positive law Equity and natural law.
AS TO Prescription in A natural obligation still subsists even if the
PRESCRIPTION accordance with the civil obligation is extinguished.
statute of limitations, the
civil obligation is
extinguished.

The form in which the obligation is manifested is sometimes added as a fifth

requisite. As a general rule, however, it cannot be considered as essential
(Obligations arising from law, quasi-contracts, acts or omissions punished by law,
and quasi-delicts). It is only in obligations arising from certain contracts that it
becomes essential (donation of personal property exceeding 5000 in writing,
contract of sale for a piece of land, loan with interest shall be in writing,

CLASSIFICATIONS OF OBLIGATIONS SECONDARY

1. Pure and conditional (Arts. 1179-1192). 1. Legal, conventional and penal;
2. With a period (Arts. 1193-1198). 2. Real and personal;
3. Alternative and facultative (Arts. 1199-1206). 3. Determinate and generic;
4. Joint and solidary (Arts. 1207-1222). 4. Positive and negative;
5. Divisible and indivisible (Arts. 1223-1225). 5. Unilateral and bilateral;
6. With a penal clause (Arts. 1226-1230). 6. Unilateral and bilateral;
7. Reciprocal Obligation 7. Accessory and principal.
ART 1157 SOURCES OF OBLIGATION
1. LAW – Art. 1158, Civil Code. 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.
2. CONTRACTS - Art. 1159. Has the Force of Law Between Parties. Obligations arising from
contracts have the force of law between the contracting parties and should be complied with in
good faith.
Elements of Contract
Consent - a meeting of the minds between parties with respect to the object and
cause; there is a certain offer by one party and there is an absolute acceptance by
another party.
Object - the thing, right, or service to be provided or performed under the contract.
Cause (causa) - the essential purpose or reason for the contract.
Q: What are the requisites for a contract to give rise to obligations ex contractu?
A: 1. It must contain all the essential requisites of a contract
2. It must not be contrary to law, morals, good customs, public order, and public policy

3. QUASI-CONTRACTS - It is a juridical relation arising from lawful, voluntary and unilateral

acts based on the principle that no one should unjustly enrich himself at the expense of
another. Q: What is presumptive consent? A: Since a quasi‐contract is a unilateral contract
created by the sole act or acts of the gestor, there is no express consent given by the other
party. The consent needed in a contract is provided by law through presumption.
Q: What are the principal forms of quasi‐ contracts?
a) NEGOTIORIUM GESTIO (inofficious manager) – arises when a person voluntarily takes
charge of the management of the business or property of another without any power
from the latter.
b) SOLUTIO INDEBITI (unjust enrichment)– takes place when a person receives something
from another without any right to demand for it, and the thing was unduly delivered to
him through mistake.
4. ACTS OR OMISSIONS PUNISHED BY LAW (DELICTS) Art. 1159. Has the Force of Law
Between Parties. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith
5. QUASI-DELICTS –

Q: What is quasi‐delict or tort?

A: It is an act or omission arising from fault or negligence which causes damage to another,
there being no pre‐existing contractual relations between the parties.
Q: What are the elements of a quasi‐delict?
A:   1. Act or omission;
2. Fault or negligence attributable to the person charged;
3. Damage or injury;
4. Direct relation of cause and effect between the act arising from fault/negligence and the
damage or injury (proximate cause); and
5. No pre‐existing contractual relation between the parties.
DIFFERENCE BETWEEN QUASI DELICT AND ACTS OR OMISSIONS PUNISHED BY LAW
IS THAT QUASI DELICT SIMPLY MEANS NEGLIGENCE (NO VIOLATION OF ANY LAW
AND NO CONTRACT art2176) WHILE ACTS OR OMISSION IS PUNISHED WHERE
CRIMINAL OFFENSE IS COMMITTED.

Q: What is “compliance in good faith”?

A: It is performance in accordance with the stipulation, clauses, terms and conditions of the contract.
Q: Is there a limitation on the right of the parties to freely enter into stipulations?
A: Yes. Parties may freely enter into any stipulations provided such are not contrary to law, morals, good
customs, public order or public policy.

3 kinds of Performance:
1. SPECIFIC PERFORMANCE - performance of the prestation itself
2. SUBSTITUTE PERFORMANCE - someone else performs or something else is performed
at the expense of debtor
3. EQUIVALENT PERFORMANCE – damages

Q: In an obligation to deliver a thing, what are the obligations of the debtor?  

A: It depends upon the kind of obligation.

Q: What are NATURAL OBLIGATIONS?

A: They are real obligations to which the law denies an action, but which the debtor may
perform voluntarily.

Q: May natural obligations be converted into civil obligations? A: Yes, by way of

NOVATION.

Novation is defined in the said case “as the extinguishment of an obligation by the

substitution or change of the obligation by a subsequent one which terminates the first.
ART. 1163-1166

SPECIFIC (DETERMINATE) REAL OBLIGATION - delivery of a determinate thing when it

is particularly designated or physically separated from all others of the same class.
GENERIC (INDETERMINATE) REAL OBLIGATION - delivery of a generic thing. It is based
on the principle that a generic thing never perishes (GENUS NUNQUAM PERIT.) 

Q: WHAT ARE THE FORMS OF BREACH OF OBLIGATIONS?  

A: 1. Voluntary –debtor is liable for damages if he is guilty of: a. default (mora) b. fraud
(dolo) c. negligence (culpa) d. breach through contravention of the tenor thereof
2. Involuntary – debtor is unable to perform the obligation due to fortuitous event thus not
liable for damages.

Q: WHAT IS THE CONCEPT OF A GOOD FATHER OF THE FAMILY?

A: One who takes precautions against any harm when there is something before him to
suggest or warn him of the danger or to foresee it. CONTRACTS INVOLVING CARRIAGE OF
PEOPLE THE DILIGENCE REQUIRED IS EXTRA ORDINARY DILIGENCE.
Diligence Required a. By stipulation: that agreed upon by the parties. b. By law: in the absence of
stipulation, that required by law in the particular case. c. Diligence of a good father of a family: if both
the contract and law are silent. ***Diligence of good father of a family (pater familias) is the standard
diligence required if the contract does not state the diligence which is to be observed in the
performance of the obligation.

ART. 1170, CIVIL CODE. Those who in the performance of their obligations are guilty of fraud,
negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages.

Primary Remedies Arts. 1165-1168: PRESS

1. Specific Performance – performance by the debtor of the prestation itself
2. Substituted Performance – someone else performs or something else is performed at the debtor’s
expense
3. Equivalent Performance – right to claim damages (in either performance or rescission)
4. Rescission – right to rescind or cancel the contract
5. Pursue the Leviable – to attach the properties of the debtor, except those exempt by law from
execution.

Q: WHEN DOES DELAY OR DEFAULT ARISE?

A: From the time the obligee judicially or extrajudicially demands from them the fulfillment
of their obligation.  
However, In reciprocal obligations, neither party incurs in delay if the other does not comply in a proper
manner with what is incumbent upon him. From the moment one of the parties fulfills his obligations,
delay by the other begins. (Art. 1169, NCC).

Q: WHAT ARE THE REQUISITES OF DELAY?

A: 1. Obligation must be due, demandable and liquidated;
2. Debtor fails to perform his positive obligation on the date agreed upon;
3. A judicial or extra‐judicial demand made by the creditor upon the debtor to fulfill,
perform or comply with his obligation; and
4. Failure of the debtor to comply with such demand.
Note: In reciprocal obligations, the moment one party is ready to comply with his obligation, delay by
the other begins. There is no need for demand from either party.

Q: WHAT ARE THE KINDS OF DELAY OR DEFAULT?

A: 1. Mora solvendi – delay or default on the part of the debtor/obligor to fulfill his
obligation by reason of a cause imputable to him.
2. Mora accipiendi – delay default on the part of the creditor/oblige without justifiable
reason.
3. Compensatio morae – delay or default on the part of both the debtor and creditor in
reciprocal obligations. The delay of the obligor cancels the delay of the obligee and vice
versa.
Q: WHAT ARE THE REQUISITES OF MORA SOLVENDI?
A:   1. Obligation pertains to the debtor;  
2. Obligation is determinate, due and demandable, and liquidated;  
3. Obligation has not been performed on its maturity date;  
4. There is judicial or extrajudicial demand by the creditor; 5. Failure of the debtor to
comply with such demand.

Q: Does mora solvendi apply in natural obligations?

A: No (Art. 1423, NCC), because performance is optional or voluntary on the debtor’s part.

NEGATIVE OBLIGATION – OBLIGATION NOT TO DO OR TO GIVE.

Q: Does mora solvendi apply in negative obligations? A: No because one can never be late in not giving
or doing something.

Q: WHAT ARE THE REQUISITES OF MORA ACCIPIENDI?

A:    1. Offer of performance by a capacitated debtor;  
2. Offer must be to comply prestation as it should be performed; and
3. Refusal of the creditor without just cause.

Q: What are reciprocal obligations?

A: These are obligations created and established at the same time, out of the same cause
and which results in the mutual relationship between the parties.
Q: In reciprocal obligations, when does a party incur in delay?
A: In reciprocal obligations one party incurs in delay from the moment the other party
fulfills his obligation, while he himself does not comply or is not ready to comply in a
proper manner with what is incumbent upon him.

Q: What may cause the cessation of the effects of mora (DELAY)?

A:   1. Renunciation (express/implied); or
2. Prescription.
ARTICLE 1174 - (caso fortuito)- event which could have not been foreseen, or though foreseen, were
inevitable.

ART. 1174 APPLIES ONLY TO DETERMINATE OBLIGATIONS AND NOT TO GENERIC ONES. (KASI GENUN
NUNQUAM PERUIT)

FORTUITOUS EVENT (FORCE MAJEURE) Any event which could not be foreseen, or which though
foreseen are inevitable A happening independent of the will of the debtor and which makes the normal
fulfillment of the obligation impossible.

A. Act of God: an accident, due directly or exclusively to natural causes without human intervention,
which by no amount of foresight, pains or care, reasonably to have been expected, cold have been
prevented. B. Act of Man: force majeure is a superior or irresistible force, which is essentially an act of
man; Includes unavoidable accidents, even if there has been an intervention of human element,
provided that no fault or negligence can be imputed to the debtor.
Q: WHAT IS FORTUITOUS EVENT?
A: It is an occurrence or happening which could not be foreseen, or even if foreseen, is inevitable (Art.
1174, NCC).
Q: WHAT ARE THE REQUISITES OF A FORTUITOUS EVENT?
A: 1. Cause is independent of the will of the debtor;
2. The event is unforeseeable or unavoidable;
3. Occurrence renders it absolutely impossible for the debtor to fulfill his obligation in a normal manner;
impossibility must be absolute not partial, otherwise not force majeure; and
4. Debtor is free from any participation in the aggravation of the injury to the creditor.  
Note: The fortuitous event must not only be the proximate cause but it must also be the only and sole
cause. Contributory negligence of the debtor renders him liable despite the fortuitous event.

LIABILITY IN CASE OF FORTUITOUS EVENT No person shall be responsible for fortuitous

events, UNLESS:
1. expressly specified by law (Arts. 552(2), 1942, 2147, 2148, 2159)
2. . liability specified by stipulation
3. 3. the nature of the obligations requires assumption of risk (Art. 1174)
4. 4. when debtor is guilty of concurrent or contributory negligence
5. 5. debtor has promised to deliver the same thing to two or more persons who do not
have the same interests (Art. 1165 par. 3)
6. 6. the thing is lost due to the obligor’s fraud, negligence, delay or contravention of the
tenor of the obligation (Art. 1170)
7. . the obligation to deliver a specific thing arises from a crime (Art. 1268) 8. the object is a
generic thing, i.e. the genus never perishes

General rule: If the reason for the non-compliance in the obligation is a fortuitous event, the obligor is
exempted from liability whatsoever. EXCEPT: 1. where such liability is expressly specified by law; 2.
where it is declared by stipulation of the parties; 3. where the nature of the obligation requires the
assumption of risk. -(volenti non fit injuria) no wrong is done to one who consents
ARTICLE 1175 - Usurious transactions shall be governed by special laws.
SIMPLY: taking of more interest for the use of money, goods, or chattels or credits than the law allows.
(5-6 ng mga BOMBAY,HAHAHA)
- *Loan or forebearance of money-12% interest in the default of interest stipulated by law or the
parties, 6% interest for obligation not involving forbearance or loan.
ARTICLE 1176 - The receipt of the principal by the creditor,without reservation with respect to
the interest,shall give rise to the presumption that said interest has been paid.The receipt of a
later installments of a debt without reservation as to prior installments,shall likewise raise the
presumption that such installments have been paid.
ARTICLE 1177 - The creditors, after having pursued the property in possession of the debtor to
satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same
purpose, save those which are inherent in his person; they may also impugn the acts which the
debtor may have done to defraud them.
Accion subrogotoria- the right of the creditor to exercise all of the rights of the debtor to bring all of the
actions against third persons. -the creditor merely acts in the name and for the account of the debtor.
EXCEPTION: Rights which are purely personal in the sense that they are inherent n the person of the
debtor. (i.e. family rights)
Accion pauliana- impugning or attacking fraud directly by means of a rescissory action at the instance of
the creditors who are prejudiced. -subsidiary in character.
ARTICLE 1178 - Subject to the laws, all rights acquired in virtue of an obligation are
transmissible,if there has been no stipulation to the contrary.
General rule: Rights of obligations or those rights which are acquired by virtue of an obligation are
transmissible in character. Exceptions: 1. where they are not transmissible in their very nature (i. e.
purely personal rights); 2. where there are stipulations by the parties that they are not transmissible; 3.
where they are not transmissible by operation of law.

Q: What is FRAUD?
A:    It is an intentional evasion of the faithful performance of the obligation