MODULE 2: INTRODUCTION TO OBLIGATIONS
1. Positive Personal Obligation Art. 1157. Sources of obligation:
CIVIL OBLIGATION
Art. 1156. Obligation is a juridical necessity
to give, to do, or not to do.
Debtor; passive subject; obligor
- Doing or not doing something.
- Required to perform something.
Creditor; active subject; oblige
- Requires the doing or not doing
- Demands to perform something.
Object; prestation; subject matter
- The kind of obligation
▪ Obligation to give – Real
obligation
o Established the rights to
possess/deliver.
o why a complainant goes to court.
1. Specific Real Obligation – Essential elements of course of action:
determinate; definite
Designated; only one thing is being
recorded.
Particularly designated and
segregated, by the description, you will
be able to identify the object.
2. Generic – indeterminate;
indefinite
Replaceable; it can be performed by
anyone, required to deliver one same
thing of the same class.
Many things of a same class.
▪ Obligation to do – Personal
obligation
o Performs all kinds of works
To do something.
2. Negative Personal Obligation
Prohibited to do obligations that are
negative in nature.
Ex. You are prohibited to practice
jaywalking as it is against the law.
Judicial or Legal Tie; efficient cause;
vinculum juris
- Connects the parties to the obligation.
SOURCES OF OBLIGATION
Significance of knowing the source of
obligation
Cause of action – An act by which a
party violates a right of another. The reason
1. The legal right of plaintiff.
Plaintiff – Creditor; has the right
to an obligation; the person who
brings a legal action.
2. The correlative obligation of the
defendant.
Defendant – a person who is
accused of not having been
able to fulfill the obligation.
3. Act of Omission.
Right - is a claim or title to an interest in
anything enforceable by law.
*For every right enjoyed by any person, there
is a corresponding obligation in the part of
another person to respect such right.
1. Law; ex lege.
2. Contracts; ex contractu.
3. Quasi-contracts; quasi ex
contractu.
4. Acts or omissions punished by
law; crimes; delicts; ex delicto.
5. Quasi-delicts; quasi ex delicto.
Quasi – No label; appears to be a contract but
not because of the absence of elements.
Quasi-contracts - manifested as contracts
but are not contracts.
Quasi-delicts – looks like crimes but are not
crimes.
Main sources of obligation
Law - law presumes that a person originally
possesses good faith.
- presumed innocent until proven guilty,
always start with the perception that
when something is that there must be
a reason to it.
Contract – meeting of the minds between
two persons whereby one binds
himself, with respect to the other to
give something or to render some
service (Article 1305).
A written or spoken agreement
between two parties; formal
expression by the parties agreed
upon with respect.
Exercise of Rights
Good Faith – a general presumption that
the parties to a contract will deal with
each other honestly, fairly, and in good
faith, to not destroy the right of the other
party or parties to receive the benefits of
the contract.
The beauty of law is that good faith is
presumed; everything is presumed good.
One act always acts with the best
interest of people.
LEGAL OBLIGATIONS
Art. 1158.
STATUTES OF FRAUD
- Contracts that should be put to writing.
- List of contracts that need to be written.
- It applies to rentals, when a contract
includes a 1-year rental, then the
person should not fear getting kicked
out every month.
Compliance in Good Faith
- Performance in accordance with the
stipulations or terms of the contract or
agreement.
Validity and Enforceability of Contracts
- Where the meeting of the minds
begins to arrive at a definite
agreement as to the essential
elements such as subject matter,
cause, terms and conditions of
contract.
3. Consumption – consummation; death
- When the parties “fulfill or perform the
terms agreed upon in the contract”.
▪ Offer - to the counteroffer
▪ Counteroffer - to the counteroffer
▪ Counteroffer - to the counteroffer - to the
counteroffer

- Obligations in law are not presumed
unless there’s a basis for it.
- Crimes should have a basis or source.
- If there is no law, there is no right.
Art. 1159. Obligations arising from contracts have
the force of law between the contracting parties
and should be complied with in good faith.
- When you invoke a right, make sure there
is a legal basis.
- there should be a basis, or else will not be
invoked.
There’s no contract unless the ff occurs: *CONTRACTS makes a reciprocal obligation –
where events happen vice versa.
1. Consent – the agreement of two
parties.
2. Object – the subject matter of the
contract.
3. Cause – the reason of the obligation.
In addition to the mentioned, it should not
be in contrary to law, morals, good customs,
public order and public policy.
3 STAGES OF CONTRACTS

CONTRACTUAL OBLIGATIONS 1. Preparation – negotiation; conception;

Art. 1305.
- A contract is an agreement between two
parties.
- Give arise to obligations but obligations do
not arise in contract.
- Becomes the law between two parties.
- Compliance in good faith is required.
*For documentation purposes, written contract is
the best document proof in the court.
generation
- When the contracting parties manifest
their interest in the contract where it
ends at the moment of agreement.
- Process of formation such as
bargaining, negotiation to arrive at a
definite contract.
2. Perfection – birth of contract
- When both parties agree upon the
essential elements thereof.