Jonathan Caurel Balansag BSMA III

Define or give the meaning of the following.

1. Obligation - The term obligation is derived from the Latin word “obligatio” which means a “tying” or
“binding.” It is a tie of law or a juridical bond by virtue of which one is bound in favor of another to
render something — and this may consist in giving a thing, doing a certain act, or not doing a certain act.

2. Quasi- contract - is that juridical relation resulting from certain lawful, voluntary and unilateral acts
by virtue of which the parties become bound to each other to the end that no one will be unjustly
enriched or benefited at the expense of another. (Art. 2142.)

3. Compliance in good faith - Honest intent to act without taking an unfair advantage over another
person or to fulfill a promise to act, even when some legal technicality is not fulfilled. The term is applied
to all kinds of transactions.

4. Negotiorum gestio - is the voluntary management of the property or affairs of another without the
knowledge or consent of the latter. (Art. 2144.)

5. Solutio Indebiti- is the juridical relation which is created when something is received when there is no
right to demand it and it was unduly delivered through mistake. (Art. 2154.)

DISCUSS:

1. What are the essential requisites of an obligation? Give an example to illustrate them.

 Active subject - It is the party (creditor or obligee) who has the right to demand the
performance of an obligation.
 Passive subject - It is the one (debtor or obligor) who is obliged to perform the obligation.
 Object or Prestation - It is the object of the obligation. It is what the obligation is all about either
to give, to do, not to do, or a combination.
 A juridical or legal tie - The juridical tie that binds the parties to an obligation. It is what binds
the parties (e.g. contracts, quasi contracts).

Example:

Gaya enters into a contract of sale with Tito who paid the purchase of a GE refrigerator. Gaya
did not deliver the refrigerator. Gaya is the passive subject or debtor and Tito is the active subject or
creditor. The object or prestation is the GE refrigerator and the obligation to deliver is the legal tie or the
vinculum juris which binds Gaya and Tito.

On the other hand, if Gaya, delivered the refrigerator and Tito did not pay, then Tito becomes
the debtor who is bound to pay while Gaya is the creditor who has the right to demand the prestation.
2. Why are obligations under the civil code a juridical necessity?

Obligation is a juridical necessity because in case of non-compliance, the courts of justice may be called
upon to enforce its fulfillment or, in default thereof, the economic value that it represents.

3. What are the elements or requisites in order that a person may acquire a right of action in court
against another to enforce the performance of the latter obligations.

Its essential elements are a legal right in favor of a person (creditor/plaintiff) by whatever means and
under whatever law it arises or is created a correlative legal obligation on the part of another
(debtor/defendant) to respect or not to violate said right; and an act or omission in breach or violation
of said right by the defendant with consequential injury or damage to the plaintiff for which he may
maintain an action for the recovery of damages or other appropriate relief.

4. May a person incur obligations even without entering into a contract or voluntary agreement?
Explain.

Yes, because obligations do not only arise from contracts. They can be imposed by law, arise from quasi-
contracts, from crimes or acts or omissions punished by law and from quasi-delicts or torts.

PROBLEMS:

1. X saw at about 1:00 pm a child alone at the shopping mall. The child who strayed from Y, his mother
was in tears and appeared very hungry. Out of pity, X took him to the restaurant to eat for which he
spent Php 150.00. Y did not give her consent to the good deed of X. Furthermore, they were on their
way home before the child got lost. Is X entitled to be reimbursed by Y for the amount of Php 150.00?

ANSWER: No, because Y did not give her permission and X was not force on his decision that he will pay
for the food to give it to the child to a restaurant where he spent Php 150.00 of his own money. (see Art.
1356.)

2. While the car of X was parked by the roadside, it was bumped at the rear by a jeep belonging to Y.
Only the car of X suffered damage. Under the circumstances, does it follow that Y is liable for the
damage?

ANSWER: Yes, because the X car is parked in the roadside. So Y is the one liable and should pay for all
the damages of X car. (Custodio vs. Court of Appeals, 253 SCRA 483 [1996].)