Introduction to OBLICON

What is an Obligation?

An obligation is a juridical necessity to give, to do or not to do. (Article 1156 of the New Civil Code)

Elements

1. Active subject (obligee/creditor) – the one whose favor the obligation is constituted.
- kaninong pabor, kanino ka magbabayad, para kanino ang nasabing obligation
2. Passive subject (obligor/debtor) – the one who has the duty of giving, doing or not doing.
- sino and may utang, sino ang may kailanga gawin, sino ang kailangan magbayad
3. Object – prestation; the conduct which has to be observed by the debtor/obligor.
- the subject matter of the obligation of the contract.
- Object may mean the payment, the giving, the delivering of the subject matter.
- So payment of money, delivery of goods, giving of a certain check could be the proper object
of the obligation.
- Object may also refer to different types as to the perspective of the debtor and the creditor
when we are referring to reciprocal obligations.
- Reciprocal obligations is a give and take situation wherein one party after performing his
end, the other obligation will initially begin.
4. Vinculum Juris – juridical/legal tie
- The bond that puts together the active and passive subject.
5. Causa (causa debendi/causa obligationes) – why obligation exists.
- Why there is a particular debt, why there is a particular undertaking or obligation.

Illustration

A needs money for his tuition fees

B has the money to lend.

A entered into a Loan contract with B for money to be lend at the rate of the P10,000 payable in a
month.

1. Who is the passive subject (may utang)?

- A is considered the debtor. (obligor)

2. Who is the Active Subject (nagpapautang)?

- B is considered the Creditor. (obligee)

3. What is the object of the Contract?

- Payment of MONEY

4. What is the Vinculum Juris?

- LOAN Contract is the Legal Tie between them

 A is need of supplies for his grocery.

B is a supplier of canned goods.

A entered into a Supply contract with B for the delivery of canned goods at the rate of the P10,000 per
week.

1. Who is the passive subject?

- A is considered the debtor.

2. Who is the Active Subject

- B is considered the Creditor.

3. What is the object of the Contract?

- Payment for the Delivery of Canned Goods

4. What is the Vinculum Juris?

- Supply Contract is the Legal Tie between them

Kinds of Obligation

As to subject matter - REAL v PERSONAL

As to affirmativeness - POSITIVE v NEGATIVE

As to number of parties involved - UNILATERAL v BILATERAL

As to Sanctions - CIVIL, MORAL and NATURAL

Sources of Obligation

1. LAW (OBLIGATION EX LEGE) - Must be expressly or impliedly set forth and cannot be presumed.
2. CONTRACT (OBLIGATION EX CONTRACTU) - Must be complied with in good faith because it is
the “law” between parties; neither party may unilaterally evade his obligation in the contract,
unless:
a) contract authorizes it
b) other party assents
Parties may freely enter into any stipulations, provided they are not contrary to law, morals,
good customs, public order or public policy.
3. QUASI-CONTRACT (OBLIGATION EX QUASI-CONTRACTU) - That juridical relation resulting from a
lawful, voluntary and unilateral act, and which has for its purpose, the payment of indemnity to
the end that no one shall be unjustly enriched or benefited at the expense of another.
Two (2) kinds:
a. Negotiorum gestio - unauthorized management; This takes place when a person
voluntarily takes charge of anothers abandoned business or property without the
owner’s authority.
b. Solutio indebiti - undue payment; This takes place when something is received when
there is no right to demand it, and it was unduly delivered thru mistake.
 4. DELICTS (OBLIGATION EX MALEFICIO OR EX DELICTO)
Governing rules:
1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code
Art 100, RPC – “Every person criminally liable for a felony is also civilly liable.”
2. New Civil Code Chapter 2, Preliminary title on Human Relations
3. Title 18 of Book IV of the Civil Code – on damages

Convictions for CRIMES must be by “PROOF BEYOND REASONABLE DOUBT”

What civil liability arising from a crime includes:

a. restitution
b. reparation of damage caused
c. indemnity for consequential damages

Effect of acquittal in criminal case:

 when acquittal is due to reasonable doubt – no civil liability.

 when acquittal is due to exempting circumstances – there is civil liability.
 when there is preponderance of evidence – there is civil liability.

5. QUASI-DELICT/TORTS (OBLIGATION EX QUASI-DELICTO or EX QUASI MALEFICIO) - It is a fault or

act of negligence (or omission of care) which causes damage to another, there being no pre-
existing contractual relations between the parties.
Elements:
a. There must be fault or negligence attributable to the person charged.
b. There must be damage or injury.
c. There must be a direct relation of cause and effect between the fault or negligence on
the one hand and the damage or injury on the other hand (proximate cause)
d. No pre-existing contractual relations between the parties

Case Problem (Sources of Obligations)

A. A is the driver of the Jeepney owned by B. The jeep is plying the route of QUIAPO – DAPITAN.

C rode the jeep going to Recto. While passing Lacson, A drove negligently, and the jeep figured in an
accident which hit a bystander D causing injury to his left forearm. C also sustained head injuries due to
the collision. Both C and D were brought to the UST Hospital for treatment which amounted to P20,000
respectively.

1. Is there an obligation present from this case?

2. If Yes, How many sources of obligation?

3. From whom can the C, the jeepney passenger, claim for damages?

4. From whom D, the bystander, claim for damages?

5. What is the source of the obligation of C? How about D?

 B. A is the driver of the Jeepney owned by B. The jeep is plying the route of QUIAPO – DAPITAN.

C rode the jeep going to Recto. While passing Lacson, A drove negligently, and the jeep figured in a
collision accident which hit the car DRIVEN by D causing DAMAGES to his vehicle. C also sustained head
injuries due to the accident. C was brought to the UST Hospital for treatment which amounted to
P20,000.

D claimed from his insurance for the damages and the INSURER is now suing the owner of the jeep for
damage sustained by the Car.

1. Is there an obligation present from this case?

2. If Yes, How many sources of obligation?

3. From whom can the C, the jeepney passenger, claim for damages?

4. From whom can the Insurer claim for damages?

5. What is the source of the obligation of C? How about the INSURER?

C. Two friends A and B were exchanging money between themselves.

A has one-HUNDRED-peso BILL (P100)

B has three FIFTY-peso BILLS (50)

A handed over the P100 bill to B and B supposedly gave Two FIFTY BILLS to A.

Upon further checking his wallet, B knew that his other FIFTY Peso BILL was missing.

1. What is the obligation of A to B under this scenario?

2. What is the source of obligation?

D. RAMON ANG is a frequent traveler. He has house located in ILOCOS

RAMON left for the US leaving no one in charge of his house.

Juan Dela Cruz owned the house beside that of Ramon Ang’s property

A fire broke in the nearby area where RAMON and JUAN’s houses are located.

In order to save them from further damage, Juan broke in to RAMON’s house to activate the fire alarm
and save some of his valuables.

1. What is the obligation of Ramon to Juan under this scenario?

2. What is the source of obligation?
 E. Romeo, a horse racing enthusiast, wants to have his own horse.

Juliet owns a stable of horses.

Romeo plots a plan to steal one of the horses of Juliet.

Romeo broke into Juliet’s farm and got one horse.

1. Is there an obligation in the scenario stated?

2. What is the source of the obligation, if any?
3. What is the extent of ROMEO’s liability in this case?

Nature and Effects of Obligations

Nature of Obligations

1. Personal Obligations

Obligation to do/not to do – When the subject matter is an act to be done or not to be done.

a. Positive – To do

b. Negative- Not to do

2. Real Obligations

Obligations to Give- When the subject matter is a thing which the obligor must deliver.

a. Specific or Determinate – Object is particularly designated by or physically segregated from

all other things of the same class.
b. Generic – object is designated by its class or genus.

Effects of Obligations

Duties in Obligations to Give

1. Exercise diligence / Preserve the thing

Standard of care: that of a good father of a family – unless the law or stipulation requires another
standard of care.

2. Delivery of fruits

When does the right begin to exist: from the time to deliver arises

a. When there is no term/condition – from the perfection of the contract.

b. When there is a term/condition – from the moment the term or condition arises.

3. Delivery of accessories & accessions (obligation to deliver determinate thing, even if the
stipulation does not mention delivery of accessories & accessions)
 Accessories - those joined to or included with the principal for the latter’s better use, perfection, or
enjoyment.

Accessions – additions to or improvements upon a thing

When does right to fruits arise? – from the time the obligation to deliver arises.

a. Conditional – from the moment the condition happens.

b. With a term/period – upon the expiration of the term/period

c. Simple – from the perfection of the contract

Other duties

4. To Deliver the Thing itself.

5. To Pay Damages in case of Breach.

Additional Obligation as to the Delivery of a Generic Thing:

a. To deliver a thing of which neither of superior quality or inferior quality.

b. To pay damages in case of breach of the obligation by reason of delay, fraud, negligence, or
contravention of the tenor of the obligation.

Remedies

Two Main Remedies in Breach:

1. SPECIFIC PERFORMANCE- performance of the prestation itself

2. RESCISSION OR CANCELLATION OF THE CONTRACT