TITLE I OBLIGATIONS

Chapter 1: General Provisions

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ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do. (n)
Meaning of Obligation. • Obligation is derived from the Latin word obligatio which means tying or
binding.
Meaning of Juridical Necessity.
• Obligation is referred to as a juridical necessity because non-fulfillment of which will give rise to a
right of action.
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Nature of Obligations Under
the Civil Code.
• Civil obligations Obligations which give to the creditor or obligee a right under the law to enforce their
performance in courts of justice. • Natural obligations Obligations that do not grant a right of action to
enforce their performance although in case of voluntary fulfillment by the debtor, the latter may not
recover what has been delivered or rendered by reason thereof.
Essential Requisites of an Obligation.
• Passive subject (called debtor or obligor) • Active subject (called creditor or obligee) • Object or
prestation (subject matter of the obligation) • Juridical or legal tie (also called efficient cause)
EXAMPLE:
Under a building contract, X bound himself to build a house for Y for 1,000,000.00.
X is the passive subject. Y is the active The building of the house is the obiect or The agreement or
contract which is the source of the obligation, is the iuridical tie.
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Obligation, Right, and Wrong Distinguished.
• Obligation is the act or performance which the law will enforce.
• Right is the power which a person has under the law, to demand from another any prestation.
• Wrong (cause of action) is an act or omission in violation of the legal right or rights of another.

Kinds of Obligations According to Subject Matter. _ .

Kinds of Obligations According to Subject Matter.

• Real obligation (obligation to give) is that in which the subject matter is a thing which the obligor must
deliver to the obligee.
• Personal obligation (obligation to do or not to do) is that in which the subject matter is an act to be
done or not to be done.
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Two Kinds of Personal Obligation.
•Positive personal obligation is the obligation to do or to render service.
•Negative personal obligation is the obligation not to do (which naturally includes obligations not to
give').
I Sources of Obligations Article 1157: I. Law — when they are imposed by law itself. EXAMPLES:

Sources of Obligations 10 of zo Article 1157: 1. Law — when they are imposed by law itself. EXAMPLES:
Obligation to pay Obligation to pay taxes. 2. Contracts — when they arise from the stipulation of the
parties. (Art. 1306.) EXAMPLE: The obligation to repay a loan or indebtedness by virtue of an agreement.
The obligation to return money paid by mistake or which is not due. 3. Quasi-contracts —when they
arise from lawful,voluntary, and unilateral acts which are enforceable to the end that no one shall be
unjustly enriched or benefited at the expense of another. (Art. 2142.) EXAMPLE:
4. Crimes or acts or omissions punished by law — when they arise from civil liability which is the
consequence of a criminal offense. (Art. 1161.) FYAMPI F•
4. Crimes or acts or omissions punished by law — when they arise from civil liability which is the
consequence of a criminal offense. (Art. 1161.) EXAMPLE: The obligation of a thief to return the car
stolen by him; the duty of a killer to indemnify the heirs of his victim.
5. Quasi-delicts or torts - when they arise from damage caused to another through an act or omission,
there being fault or negligence, but no contractual relation exists between the parties. (Art. 2176.)
EXAMPLE: The obligation of the head of a family that lives in a building or a part thereof to answer for
damages caused by things thrown or falling from the same (Art. 2193.)
ART. 1158
• Special laws refer to all other laws not contained in the Civil Code.
ART. 1158
• Special laws refer to all other laws not contained in the Civil Code.
EXAMPLES: • Corporation Code • Negotiable Instruments Law • Insurance Code • National Internal
Revenue Code • Revised Penal Code • Labor Code
ART. 1159 Contractual Obligations
Contract is a meeting of minds between two persons whereby one binds himself with respect to the
other to give something or to render some service (Art. 1305.)
Binding force of a contract. Obligations arising from contracts have the force of law between the
contracting parties. As a source of enforceable obligation, contract must be valid and it cannot be valid if
it is against the law.
• A contract is valid (assuming all the essential ninrnonfe aria nrnennf Art 'I ql A 1 if if ie nnf nnnfroni
Requirement of a Valid Contract.

Requirement of a Valic,16 of Contract.

• A contract is valid (assuming all the essential elements are present; Art. 1318.) if it is not contrary to
law, morals, good customs, public order, and public policy.
• It is invalid or void if it is contrary to law, morals, good customs, public order, or public policy. (Art.
1306.)
-4 Compliance in Good Faith.
• Compliance or performance of an obligation strictly in accordance with the stipulations or terms or
conditions as laid in the contract or agreement. EXAMPLE: If S agrees to sell his house to B and B agrees
to buy the house of S, voluntarily and willingly, then they are bound by the terms of their contract and
neither party may, upon his own will, and without any justifiable reason, withdraw from the contract or
escape from his obligations thereunder. That which is agreed upon in the contract is the law between S
and B and must be complied with in good faith.

ART. 1160 18 of Kinds of Quasi-contracts

. 1. Negotiorum gestio is the voluntary management of the property or affairs of another without the
knowledge or consent of the latter.
2. Solutio in debiti 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.)
The requisites are: a. There is no right to receive the thing delivered; and b. The thing was delivered
through mistake.
4'4
ART. 1161 Scope of Civil Liability. 1. Restitution 2. Reparation for damage caused &Indemnification for
the consequential damages EXAMPLE: X stole the car of Y. If Xis convicted, the court will order X to: 1.
Return the car or to pay its value if it was lost or destroyed; 2. Pay for any damage caused to the car; and
a Pay such other damages suffered by Y as a consequence of the crime.
ART. 1162 Requisites of Quasi-delict. 1.There must be an act or omission

1. Return the car or to pay its value if it was lost or destroyed; 2. Pay for any damage caused to the car;
and of 3. Pay such other damages suffered by Y as a consequence of the crime.
ART. 1162
Requisites of Quasi-delict.
1.There must be an act or omission 2.There must be fault or negligence 3.There must be damage caused
4.There must be a direct relation or connection of cause and effect between the act or omission and the
damage 5.There is no pre-existing contractual relation between the parties
MI*
Crime Distinguished from Quasi-delict. CRIME QUASI-DELICT
here is cnml cnm nal n
he purpose is punishment.
There is only negligence.
The purpose is indemnification of the offended party. 1=121=21 Concerns private interest. There is only
dvil liability.
here are generally two liabilities,
mina! and dull.
riminal liability cannot be mpromised or settled by the Hies themselves.
The guilt of the accused must be proved beyond reasonable doubt.
Liability for quasi-delict can be compromised as any other civil liability. The fault or negligence of the
defendant need only be proved by preponderance of evidence