Discuss the concepts of obligation

Obligation A juridical necessity to give, to do, or not to do (CIVIL CODE, Art. 1156). A legal relation
established between one party and another whereby the latter is bound to the fulfillment of a
prestation which the former may demand of him (8 MANRESA, 5th Ed., Bk. 1, p.21).

Is the definition in Art. 1156 complete

Elements of an obligation

Elements of Obligation: (PATO)

1. Passive Subject – one bound to perform the prestation. He is called the obligor/debtor. Note:
Subjects pertain to both natural and juridical persons. They need not be determined in the act
constituting the obligation, but they must be determinable in some manner. When either
subject cannot be determined, the obligatory tie can have no effect (4 TOLENTINO, supra at 57).
2. Active Subject – one who can demand the fulfillment of the prestation; he who in his favor, the
obligation is constituted or created. He is called the obligee/creditor (supra). Note: The active
subject may be temporarily indefinite, as in the case of a negotiable instrument payable to
bearer.
3. Juridical Tie or Vinculum Juris – the efficient cause which creates the relation between the
obligor/debtor and obligee/creditor and is established by: a. Law; b. Bilateral Acts (Contracts
giving rise to the obligations stipulated therein); and c. Unilateral Acts (Crimes & Quasi-Delicts).
4. Prestation/Object – the particular conduct of the debtor which may consist in giving, doing, or
not doing something which constitutes the object of the obligation (JURADO, Comments and
Jurisprudence on Obligations & Contracts (2010), p.2) [hereinafter JURADO, Obligations and
Contracts].

Requisites of valid object

Requisites of Prestation (PD-CoLE):

a. Physically and juridically Possible;

b. Determinate or at least determinable according to pre-established elements or criteria;
c. Must be within the Commerce of man;
d. Must be Licit; and e. Possible Equivalent in money (Id. at 58)

I give you 5 pesos to do something is it valid

Depends on something

Law as a source of obligation

Obligations derived from law are not presumed. Only those expressly determined in the New Civil Code
or in Special Laws are demandable, and shall be regulated by the precepts of the law which establishes
them (CIVIL CODE, Art. 1158). In case of conflict between the Civil Code and a special law, the latter
prevails unless the contrary has been stipulated.

When do we say that the law itself is the source of obligation

To say that the law is an independent source of obligation, it does not mean that law and human acts
exclude each other completely. Once such human acts exist, the obligations arising therefrom by virtue
of the express provisions of the law are entirely independent of the will of the parties

Other obligations created by law

How about contracts? As a source of obligation?

Obligations arising from contracts have the force of law between the contracting parties and should be
complied with in good faith (CIVIL CODE, Art. 1159). Generally, contracts are perfected by mere consent,
and from that moment, the parties are bound not only to the fulfillment of what has been expressly
stipulated but also to all of the consequences which according to their nature may be in keeping with
good faith, usage, and law. Whether the contract is consensual or real, the rule is that from the moment
it is perfected, obligations, which may either be reciprocal or unilateral, arise (JURADO, Obligations and
Contracts, supra at 8-9).

What is a contract

Contract is the meeting of the minds between two persons whereby one binds himself, with respect to
the other, to give something or to render some service (CIVIL CODE, Art. 1305).

Limitations in contracts

Compliance in good faith is performance in accordance with the stipulation, clauses, terms and
conditions of the contract.

What is a concept of quasi contract

Juridical relations arising from lawful, voluntary, and unilateral acts by virtue of which the parties
become bound to each other, based on the principle that no one shall be unjustly enriched or benefited
at the expense of another (CIVIL CODE, Art. 2142).

Gave consent to the contract is there quasi contract?

No? Quasi-contracts are based on the principles that: a. No one must unjustly enrich himself at
another’s expense; b. If one benefits, he must reimburse; and c. Justice and equity (PARAS, Civil Code,
supra at 1154).

Delict?

Civil obligations arising from criminal offence shall be governed by the penal laws (CIVIL CODE, Art.
1161).

If accused was acquitted of a crime. Can an accused be still liable for damages/ civil liability

Yes. Rule 111 of the Criminal Procedure provides that: “When a criminal action is instituted, the civil
action for the recovery of civil liability arising from the offense charged shall be deemed instituted with
the criminal action unless the offended party waives the civil action, reserves the right to institute it
separately or institutes the civil action prior the criminal action”.

Quasi-delict
Whoever by act or omission causes damage to another, there being fault or negligence, is obliged to pay
for the damage done. Such fault or negligence, if there is no pre-existing contractual relation between
the parties, is called a quasi-delict (CIVIL CODE, Art. 2176).

Any other source?

Sources of Obligations: (LCQ-DQ) 1. Law; 2. Contracts; 3. Quasi-contracts; 4. Delicts; and 5. Quasi-delicts

(CIVIL CODE, Art. 1157).

Classifications of obligation

a. As to efficacy
i. What is a natural obligation
Natural Obligations Those based on equity and natural law, which do not grant a right of
action to enforce their performance, but after voluntary fulfillment by the obligor,
authorize the retention of what has been delivered or rendered by reason thereof (CIVIL
CODE, Art. 1423).
ii. Distinguish a natural and civil obligation
Viewpoint of Sanction a. Civil Obligations – an obligation, which if not fulfilled when it
becomes due and demandable, may be enforced in court through an action (4
TOLENTINO, supra at 59); b. Natural Obligations – not based on positive law but on
equity and natural law; do not grant a right of action to enforce their performance, but
after voluntary fulfillment by the obligor, they authorize retention of what has been
delivered or rendered by reason thereof (CIVIL CODE, Art. 1423); and

iii. What is a moral obligation

Moral Obligations – those that cannot be enforced by action but which are binding on
the party who makes it in conscience and natural law.

Moral obligations can be enforced in court?

No.

a. Example of moral obligation

As to the relations created?

a. Difference between unilateral and bilateral obligation?

a. Unilateral – only one party is bound; and b. Bilateral – both parties are bound.
 b. Reciprocal and mutual?
Reciprocal Obligations Those which are created or established at the same time, out of the same
cause, and which result in mutual relationships of creditor and debtor between the parties.

i. What kind of contract is donation?

Unilateral. The one party referred to as the donor is under no obligation to act, but does
so out of pure liberality and benevolence by promising to give to the other party, called
the donee, something without expecting to receive anything in return.

As to the number of parties involved

a. How do you differentiate joint from solidary

Joint and Solidary a. Joint – each can be made to pay only his share in the obligation. b. Solidary
– one can be made to pay for the whole obligation subject to reimbursement (CIVIL CODE, Arts.
1207-1222).
b. As to number of prestations
Individual & collective a. Individual – involves only one subject; and b. Collective – involves
several subjects (CIVIL CODE, Art. 1207, 1223).
c. What is conjunctive obligation? Alternative??
Alternative and Facultative a. Alternative – involves multiple prestations but debtor will only
perform one or some but not all, depending whose choice it is (CIVIL CODE, Art. 1199). b.
Facultative – multiple prestations with a principal obligation and substitute prestations, choice is
generally given to the obligor (CIVIL CODE, Art. 1206).

What is a positive and negative obligation

a. Positive Obligation – when the obligor is obliged to give or to do something; and

b. Negative Obligation – when the obligor must refrain from giving or doing something (JURADO,
Obligations and Contracts, supra at 5)

Real and personal

a. Personal Obligation (obligation to do or not to do) – that in which the subject matter is an act to
be done or not to be done;
b. Real Obligation (obligation to give) – that in which the subject matter is a thing which the obligor
must deliver to the obligee

Specific v. Generic

i. Determinate or specific – one that is individualized and can be identified or distinguished

from others of its kind; its loss extinguishes the obligation;
ii. Indeterminate or Generic – indicated merely by its class or genus without being designated
or distinguished from others of the same kind; its loss does not extinguish the obligation for
genus never perishes (genus nunquam perit); and
iii. Limited generic thing – when the generic objects are confined to a particular class, e.g., an
obligation to deliver one of my horses (

Principal and accessory obligation

 a. Accessory – existence depends upon a principal obligation (e.g., pledge, mortgage).
b. Principal – exists without depending upon another obligation (CIVIL CODE, Arts. 1166, 1226)

Instantaneous obligation

Basic rules that govern the manner of performing an obligation

Identity of obligation

In the performance of obligation he must do what he was supposed to do and not do otherwise.

Preciseness of performance

Integrity of obligation

Completeness of performance

Standard performance of obligation

Example of obligation to deliver a specific obligation

obligation to deliver a movable or an immovable thing in order to create a real right, or for the use of
the recipient or for its simple possession, or in order to return to its owner (e.g. sale, deposit, pledge,
donation);

In obligation to deliver a determinate car with plate number ganyan are there accessory obligation

Yes. General Rule: Obligation to give a determinate thing includes that of delivering all its accession and
accessories, even though they may not have been mentioned (CIVIL CODE, Art. 1166). Exceptions: By
contrary intention of the parties

What is the rule on delivery of the fruits

General Rule: The creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. However, there is no real right until the same has been delivered to him (CIVIL CODE, Art. 1164,
Par. 1). Exception: Obligations arising from contracts, a stipulation as regards the fruits shall govern
(CIVIL CODE, Art. 1306).

What do you mean by personal right

enforceable only against his creditor

Ano ang treatment natin sa fruits of the thing, say car? Meron bang fruits ang car? What is your
understanding of fruits?

Kinds of Fruits: a. Natural – spontaneous products of the soil, the young and other products of animals
produced without intervention of human labor; b. Industrial – those produced by lands of any kind
through cultivation brought by intervention of human labor; and c. Civil – those derived by virtue of
juridical relation (e.g. rents of building) (CIVIL CODE, Art. 442).

What is the treatment of fruits if the obligation is reciprocal?

In Reciprocal Obligations: no retroactivity – mutually compensated (fruits may be natural, industrial or
civil) (CIVIL CODE, Arts. 441-442).

But if its unilateral?

In Unilateral Obligations: no retroactivity - debtor appropriates the fruits and interests received unless
intention was otherwise, as inferred from nature and circumstances (JURADO,

Paano naman pag generic thing?

If contract does not specify the quality and circumstances: 1. Creditor cannot demand a thing of superior
quality (but he may demand and accept one of inferior quality) 2. Debtor cannot deliver a thing of
inferior quality, but if he so desires, he may deliver one of superior quality (provided it is not of a
different kind) (CIVIL CODE, Art. 1246).

Illustration of an obligation to deliver a generic thing?

Are there accessory obligations?

Obligation to do? How will you perform that?

General Rule: In obligations to do or not to do, an act or forbearance cannot be substituted by another
act or forbearance against the obligee’s will (CIVIL CODE, Art. 1244, Par. 2). Exception: In facultative
obligations, where the debtor reserves the right to substitute another prestation (CIVIL CODE, Art.
1206).

Example of obligation to do?

Failure of obligation to do: can you compel him to do?

Yes. It’s a duty.

Duties of the Obligor: 1. To do it (CIVIL CODE, Art. 1167); 2. To shoulder the cost if someone else does it
(CIVIL CODE, Art. 1167); 242 SAN BEDA COLLEGE OF LAW 2016 CENTRALIZED BAR OPERATIONS 3. To
undo what has been poorly done (CIVIL CODE, Art. 1167); and 4. To pay damages (CIVIL CODE, Arts.
1170- 1172, 2201-2202).

How about an obligation not to do, how will you perform that

In obligations to do or not to do, an act or forbearance cannot be substituted by another act or

forbearance against the obligee’s will (CIVIL CODE, Art. 1244, Par. 2). Note: Performance cannot be
delegated or be performed by an agent. No legal accessory obligations arise as compared to obligation
to give. When the obligation consists in not doing, and the obligor does what has been forbidden him, it
shall also be undone at his expense (CIVIL CODE, Art. 1268)

Can the obligation be delegated to another person?

No. Performance cannot be delegated or be performed by an agent.

Failure of obligation not to do

Duties of the Obligor: 1. Not to do what should not be done (CIVIL CODE, Art. 1168); 2. To shoulder the
cost to undo what should not have been done (CIVIL CODE, Art. 1168); and 3. To pay damages (CIVIL
CODE, Art. 1170).

Can there be accessory obligations

What are the different modes of breach of obligation

Fraud, Negligence, Delay

What is fraud

Fraud (Dolo) – is the voluntary execution of a wrongful act, or a willful omission which prevents the
normal realization of the prestation, knowing, and intending the effects which naturally and necessarily
arise from such act or omission.

Classic illustration of fraud

Kinds of Fraud: a. Fraud in the performance of the obligation (CIVIL CODE, Art.1171); and b. Fraud in the
execution/ creation/ birth of contract: i. Dolo Causante (CIVIL CODE, Art. 1344); and ii. Dolo Incidente
(CIVIL CODE, Art. 1338).

Extent of liability for malice

Test: The element of intent and not the harm done. Effect of Fraud: Liability for damages (CIVIL CODE,
Art. 1170).

Malice in execution of contracts, in performance of obligation?

Fraud in the execution/ creation/ birth of contract: i. Dolo Causante (CIVIL CODE, Art. 1344); and ii. Dolo
Incidente (CIVIL CODE, Art. 1338).

Art. 1344. In order that fraud may make a contract voidable, it should be serious and should not have
been employed by both contracting parties.

Art. 1338. There is fraud when, through insidious words or machinations of one of the contracting
parties, the other is induced to enter into a contract which, without them, he would not have agreed to.

Incidental fraud only obliges the person employing it to pay damages

What kind of damages?

Can there be exemplary damages?

Can you renounce your cause of action based on future fraud?

No. Waiver of Fraud Responsibility arising from fraud is demandable in all obligations. Any waiver of
action for future fraud is void (CIVIL CODE, Art. 1171)

How about fraud which has been committed already, can right of action be waived?

Yes. : The law prohibits the renunciation of action for damages on the ground of future fraud but it does
not prohibit fraud already committed.
Extent of liability?

Will it cover only what was the mind of the debtor at the time of the fraud or includes unimaginable
consequences of the fraudulent act

Distinction between fraud in the constitution and performance of an obligation

Negligence

The fault or negligence of the obligor consists in the omission of the diligence which is required by the
nature of the obligation and corresponds with the circumstances of the persons, of the time and place
(CIVIL CODE, Art. 1173, par. 1);

What is the degree of diligence required in an obligation

a. Civil Negligence
i. Culpa contractual – fault or negligence of obligor by virtue of which he is unable to
perform his obligation arising from a pre-existing contract; and
ii. Culpa aquiliana/quasi-delict – fault or negligence of a person, whose failure to observe
the required diligence to the obligation causes damage to another. Note: The negligence
of the defendant in both cases is characterized by the omission of that diligence which is
required by the nature of the obligation and corresponds with the circumstances of the
persons, of the time and of the place
b. Culpa Criminal – fault or negligence which results in the commission of a crim
Culpa Contractual vs. Culpa Acquillana

Culpa contractual, there is a need to prove negligence or is it presumed

Requires proof by preponderanc e of evidence

How about in aquilliana

Requires proof by preponderanc e of evidence

Can you ask for moral damages?

 a. Acquillana
b. Contractual

How about defense of diligence

If law or contract does not state the diligence which is to be observed in the performance, that which is
expected of a good father of a family is required.

If the obligor acted in good faith, he shall be liable only for natural and probable consequences of the
breach of obligation and which the parties have foreseen or could have reasonably foreseen at the time
the obligation was constituted

In case of vehicular accidents. Yung isa may passenger, tas may nadamay na pedestrian. Can there be
several causes of action? You can file culpa contractual and culpa aquilliana? Against the driver?

Culpa criminal ng driver, is the liability of the company is the same had the action be culpa aquiliana?
In what respect is it different?

What is delay?

It refers to the non-fulfillment of obligation with respect to time. Those obliged to deliver or to do
something incur delay from the time the obligee judicially or extra-judicially demands from them the
fulfillment of their obligation (CIVIL CODE, Art. 1169).

Requisites for delay to set in?

a. Obligation is Demandable and already liquidated;

b. The obligor/debtor Delays performance; and
c. The creditor requires Performance judicially or extra-judicially

a. With respect to delay on the part of the debtor

Mora Solvendi – delay on the part of the debtor by not performing his obligation after a
demand/specified time and may either be: i. Ex Re – obligations to give; and ii. Ex Persona –
obligations to do.

Requisites (D2 P): 1. Prestation is Demandable and already liquidated; Note: There is no delay in
natural obligations for the performance of such is optional and voluntary 2. The debtor is in
Delay of the performance due to causes imputable to him and not by acts such as fortuitous
events; and 3. The creditor requires or demands the Performance judicially or extrajudicially

Can there be delay in all obligations

a. The obligation must be positive?

Can there be delay in alternative obligations?

No. General Rule: Without demand, judicial or extra-judicial, the effect of default will not arise (4
TOLENTINO, supra at 102).
Exceptions: a. When the obligation or law expressly so declares. b. When from the nature and
circumstances of the obligation it appears that the designation of the time when the thing to be
delivered or the service is to be rendered was a controlling motive for the establishment of the
contract. c. When demand would be useless: i. Caused by some act or fault of the debtor ii.
Impossibility caused by fortuitous event (CIVIL CODE, Art.1169)

In what instances when demand is not necessary for delay to set in? – Another instance is reciprocal
obligations pag ready na yung one party dapat ready na din yung isang party

Contravention?

Fortuitous events

Fortuitous Event (Force Majeure/Caso Fortuito): 1. By Nature or Acts of God (e.g., earthquakes,
storms, floods etc.) – absolutely independent of human intervention. 2. By the Act of Man or Force
Majeure (e.g., armed invasion, attack by bandits, robbery etc.) – an event which arises from
legitimate or illegitimate acts of persons other than the obligor (JURADO, Obligations and Contracts,
supra at 75).

Elements to invoke fortuitous events

Requisites (I3 F): a. Must be Independent of the human will; b. It must be either unforeseeable or
Inevitable; c. Must be of such a character as to render it Impossible for the obligor to fulfill his
obligation in a normal manner; and d. Obligor must be Free from any participation in the
aggravation of the injury resulting to the obligee

In relation to non-performance of obligations, how did the SC differentiate those which are
fortuitous events and those not fortuitous events?

The mere difficulty to foresee the happening is not impossibility to foresee the same (Republic v.
Luzon Stevedoring, G.R. No. L-21749, September 29, 1967).

Nadukot yung pera nya can he invoke fortuitous events?

What are the remedies available to the creditor in case there is a breach of contract

Remedies of Creditor in case of Breach: I. Primary Remedies: 1. Action for Performance (Specific
Performance or Substituted Performance); 2. Action for Damages (exclusively or in addition to
action for performance); and 3. Action for Rescission. II. Subsidiary Remedies: 1. Accion
Subrogatoria; 2. Accion Pauliana; and 3. Other specific remedies.

In an obligation to give, what are remedies?

Action for Performance (Specific Performance or Substituted Performance); 2. Action for Damages
(exclusively or in addition to action for performance); and 3. Action for Rescission.

a. Determinate thing, can you have action for specific performance?

Yes.
b. Generic thing, can there be action for specific performance?
No. Substituted performance only.
i. Can you demand performance to the debtor himself? Yes.

Can you discuss that remedy under Article 1191

Art. 1191. The power to rescind obligations is implied in reciprocal ones, in case one of the
obligors should not comply with what is incumbent upon him.

The injured party may choose between the fulfillment and the rescission of the obligation, with
the payment of damages in either case. He may also seek rescission, even after he has chosen
fulfillment, if the latter should become impossible.

The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of
a period.

This is understood to be without prejudice to the rights of third persons who have acquired the
thing, in accordance with Articles 1385 and 1388 and the Mortgage Law

Action for recission under Art. 1380

Art. 1380. Contracts validly agreed upon may be rescinded in the cases established by law.
(1290)

Art. 1381. The following contracts are rescissible:

(1) Those which are entered into by guardians whenever the wards whom they represent suffer
lesion by more than one-fourth of the value of the things which are the object thereof;

(2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the
preceding number;

(3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect
the claims due them;

(4) Those which refer to things under litigation if they have been entered into by the defendant
without the knowledge and approval of the litigants or of competent judicial authority;
(5) All other contracts specially declared by law to be subject to rescission. (1291a)

a. What is the usual reason for rescission here?

Requisites of Rescission: 1. One of the parties failed to comply with what is incumbent upon
him; 2. The injured party chose rescission over fulfillment or performance is no longer
possible; and 3. The breach is substantial so as to defeat the object of the parties in making
the agreement.
b. How about in Art. 1191? What is the justification?
The remedy under Art. 1191 of the Civil Code is alternative. Party seeking rescission can only
elect one between fulfillment and rescission. There can be no partial performance and
partial rescissio

In 1191, can there be extrajudicial rescission?

Can the court demand resolution under Art. 1191

May be denied by court when there is sufficient reason to justify the extension of time 1191

How about in 1380 is there an option for the court to modify the agreement