TITLE 1 OBLIGATIONS (Arts.
1156-1304, Civil Code) Form of obligation
Chapter 1: GENERAL PROVISIONS
ARTICLE 1156. An obligation is a juridical necessity to
give, to do or not to do.
Meaning of obligation
- Latin word obligatio means tying or binding
- One is bound in favor of another
Civil code definition
- Passive aspect
- Merely stresses the duty under the law of
the debtor when it speaks of obligation as a
juridical necessity
Meaning of juridical necessity
- Court may be asked to order the
performance of an obligation if the debtor
refuses to perform it
- If the obligation cannot be enforced through
the courts, it may be disregarded with
impunity (exemption from punishment)
Nature of obligations under the Civil Code
- Obligations which give to the creditor or
oblige a right under the law to enforce their
performance in courts of justice are known
as civil obligations.
- Natural obligation is based on natural law;
not enforceable by court action; exists in
equity and moral justice
Requisites of obligation
1. Active subject (creditor/oblige) – party who has
the right to demand performance of the
obligation
2. Passive subject (debtor/obligor) – party who is
obliged to perform the obligation
3. Prestation/Object – the object or subject matter
of the obligation (giving, doing or not doing
something)
4. Efficient cause/juridical or legal tie – binds or
connects parties to the obligation (may be any of
the five sources of obligation)
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- Manner in which an obligation is manifested
or incurred
- May be oral, writing, partly oral, partly
writing
1. As a gen. rule, the law does not require
any form for obligations arising from
contracts for their validity or binding
force
2. Obligations arising from other sources
do not have any form at all
Obligation, right, and wrong distinguished
1. Obligation – act or performance which the law
will enforce
2. Right – power which a person has under the law,
to demand from another any prestation
3. Wrong – act or omission of one party in violation
of the legal right or rights of another.
Essential elements of a legal wrong or injury:
a. A legal right in favor of a person
b. A correlative legal obligation on the part of
another
c. An act or omission by the latter in violation
of said right with resulting injury or damage
to the former
Kinds of obligation according to the subject matter
1. Real obligation (to give) – subject matter is a
thing which the obligor must deliver to the oblige
2. Personal obligation (to do or not to do) – subject
matter is an act to be done or not to be done
a. Positive personal obligation – to do or to
render service
b. Negative personal obligation – obligation
not to do or not to give
Sources of obligations (Art. 1157)
1. Law – a rule of conduct, just and obligatory, laid
down by legitimate authority for common
observance and benefit. Obligations derived
from law are not presumed; imposed by law
itself (National Internal Revenue Code)
2. Contracts – meeting of minds between two
people whereby one binds himself with respect
to the other, to give something or to render
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 some service (Art. 1305); arise from the
stipulation of the parties (Art. 1306)
3. Quasi-contracts – arise from lawful, voluntary
and unilateral acts giving rise to a juridical
relation to the end that no one shall be unjustly
enriched at the expense of another (Art. 2142)
a. Negotiorum gestio – voluntary management
of the property or affairs of another without
the knowledge or consent of the latter;
creates the obligation to reimburse the
gestor (Art. 2144)
b. Solutio indebiti – payment by mistake of an
obligation which was not due when paid;
creates the obligation to return the payment
(Art. 2154)
c. Other quasi-contracts – infinite variety;
when for some reason recovery cannot be
had on a true contract, recovery may be
allowed on the basis of a quasi-contract
(Pages 5-6 YB)
4. Acts or omissions punishable by law – arise from
civil liability which is the consequence of a
criminal offense (Art. 1161); civil liability includes
restitution, reparation for the damage caused,
and indemnification for consequential damages
5. Quasi-delicts or torts – acts or omission that
cause damage to another, there being fault or
negligence but without any pre-existing
contractual relation between the parties
Requisites of quasi-delict:
a. There must be an act or omission
b. There must be fault or negligence
c. There must be damage caused
d. There must be direct relation or connection
of cause and effect between the act or
omission and the damage
e. There is no pre-existing contractual relation
between the parties
Sources classified
1. Those emanating from law
2. Those emanating from private acts
a. From licit acts (contracts and quasi-
contracts)
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b. From illicit acts, either punishable (delicts or
crimes) or not punishable (quasi-delicts or
torts)
2 sources: law and contracts
Legal obligations – arising from law; not presumed
because they are considered a burden upon the obligor;
they are exception, not the rule; must be clearly set forth
by the law (Special laws: all other laws not contained in
the CC)
Contractual obligations – obligations arising from
contracts or voluntary agreements. It presupposes that
contracts are valid and enforceable.
1. Binding force – have the force of law between
contracting parties; have the same binding effect
of obligations imposed by laws.
2. Requirement of a valid contract – if it is not
contrary to law, morals, good customs, public
order, and public policy
3. Breach of contract – in whole or in part; a party
fails to comply, without legal reason or
justification, with his obligation under the
contract as promised
Compliance in good faith – compliance in accordance
with the stipulations or terms of the contract or
agreement
Civil liability arising from crimes or delicts
1. Civil liability in addition to criminal liability –
person criminally liable for an act or omission is
also civilly liable for damages
2. Criminal liability without civil liability – crimes
which cause no material damage (contempt,
insults to persons in authority, gambling,
violations of traffic regulations)
3. Civil liability without criminal liability – person
not criminally responsible may still be liable
civilly (failure to pay contractual debt, obligation
arises from quasi-delict)
Crime distinguished from quasi-delict
1. Crime has criminal or malicious intent or criminal
negligence; quasi-delict has only negligence
2. Crime has the purpose of punishment; quasi-
delict is indemnification of the offended party
AEC 55 Laws on Obligations and Contracts
 3. Crime affects public interest; quasi-delict
concerns private interest
4. Crime has criminal and civil liability; quasi-delict
only has civil liability
5. Criminal liability cannot be compromised by the
parties themselves; quasi-delict liability can be
compromised as any other civil liability
6. In crime, the guilt of the accused must be proved
beyond reasonable doubt; in quasi-delict, the
fault or negligence need only be proved by
preponderance of evidence.

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