OBLIGATION ( ART 1156- 1304 civil code)
 is derived from the Latin Word
“Obligatio”
OBLIGATIO – means tying or binding.
Obligation- means it is a tie or bond
recognized by law by virtue of which one is
bound in favor of another to render
something- and this may consist in giving a
thing, doing a certain act, or not doing a
certain act.
ART. 1156
– An obligation is a juridical
necessity to give to do or not to do.
JURIDICAL NECESSITY
 Means that the court may be asked to
order the performance of an obligation if
the debtor refuses to perform it. If an
obligation cannot be enforced through
the courts, it may be disregarded with
impunity.
Ex: Under a building contract, PRINCESS
bound herself to build a house for WILFA
for
₱ 1,000,000
Debtor: (Princess) when the construction of
the building is not finished.
Debtor: (Wilfa) after the construction of the
build. Wilfa is the debtor to princess to pay
after the construction is finished.
NOTE: DEDTOR can be a CREDITOR when
the obligation (object or prestation) is done.
CIVIL OBLIGATION and NATURAL
OBLIGATION DISTINGUISHED
Civil Obligation (ART. 1156)
 is based on positive law; hence, it is
enforceable by court action.
 It give the Creditor or Obligee a right
under the law to enforce performance in
the courts of justice.
 It stresses the duty of Debtor or obligor
(he who has the duty of giving, or not
doing) when it speaks of obligation as a
juridical necessity.
Natural Obligation
 is based on natural law; hence, it is not
enforceable by court action.
 The obligation, however, exist in equity
and moral justice, such that if the debtor
voluntarily performs, the latter may not
recover what he has given, delivered or
rendered by the reason there of (ART
1423).
Ex: M (Dr. Payor) is a maker of promissory
note with P (Cr.) as a payee for ₱20,000.
If M does not pay on due date:
Civil Obligation: P can enforce payment by
filing a court of action.
If P does not file a court on action against M
within 10 yrs. from the due date witch is the
PRESCRIPTIVE PERIOD (10yrs.) for a
written contract. P loses the right to enforce
payment by the court of action.
Natural Obligation: If M voluntarily makes the
payment to P although the obligation has
prescribe, M will no longer be allowed to
recover the payment because in equity and
moral justice M still owed P the amount of
₱20,000.
FORMS OF OBLIGATION
 Refers to the manner in which an OBLIGATION, RIGHT, AND WRONG
obligation is manifested or incurred. DISTINGUISHED.
IN THE FORM OF: OBLIGATION
 Oral  Is the act or performance which the law
 Writing will enforce.
 Partly Oral
RIGHT
 Partly writing
1. GENERAL RULE!  On the other hand, is the power which a
- The law does not require any form in person has under the law, to demand
obligation arising from the contracts for from another any prestation.
their validity or binding force (ART.
1356) WRONG
2. Obligation arising from other sources  (cause of action), accordance to its legal
(ART. 1157) do not have any form at all. meaning, is an act or omission of one
party in violation of the legal right or
ART.1157 rights (i.e recognize by law ) of another.
 In law, the term injury is also used to
Obligation arise from: Law, refer to the wrongful violation of the
Contracts, Quasi- contracts, Acts or legal right.
omissions punished by law and Quasi
delicts.
ESSENTIAL ELEMENTS OF LEGAL WRONG
OR INJURY ARE:
 LEGAL RIGHT
- in favor of a person that demand the
performance.
- ( Creditor/ Plaintiff)

 CORRELATIVE LEGAL OBLIGATION

- on the part of a person to respect or
not to violate said right.
- ( Debtor/ Defendant)

 An act or omission by the latter in

violation of said right with resulting
injury or damage to the former.
NOTE: A WRONG OR CAUSE OF ACTION
ONLY ARISES AT THE MOMENT A RIGHT
HAS BEEN TRANSGRESSED OR
VIOLATED.
 Ex: Under a building contract, X bound
himself to build a house for Y for
₱1,000,000
LEGAL RIGHT
: Y has a legal right to have his house
constructed by X
: X has a legal right to be paid the
agreed compensation provided the house built
according to the terms and condition of the
contract.
CORRELATIVE LEGAL OBLIGATION
: X has the correlative legal obligation to
build the house of Y.
: Y has the correlative legal obligation to
paid X the agreed compensation based on the
contract agreed.
NOTE:
-THE FAILURE OF EITHER PARTY TO
COMPLY WITH SUCH TERMS AND
CONDITIONS GIVES THE OTHER A CAUSE
OF ACTION FOR THE ENFORCEMENT OF
HIS RIGHT AND OR RECOVERY OF
INDEMNITY FOR THE LOSS OR DAMAGE
CAUSED TO HIM FOR THE VIOLATION OF
HIS RIGHT.
REQUISITES OF OBLIGATION
 ACTIVE SUBJECT (Creditor or obligee )
 PASSIVE SUBJECT (Debtor or obligor )
 PRESTATION (Object)
 EFFICIENT CAUSE (juridical or legal
tie)
ACTIVE SUBJECT (Creditor or obligee)
 The party who has the right to demand
obligation.
PASSIVE SUBJECT (Debtor or obligor)
 The party who is obliged to perform the
obligation.
PRESTATION (Object)
 The object or subject matter of the
obligation. It may consist of giving, doing
or not doing something.
EFFICIENT CAUSE (Juridical tie or Legal
tie)
 The vinculum or the legal or juridical tie
which binds the parties to an obligation.
The efficient cause of an obligation may
be any of five sources of obligation.
Ex: Under a building contract, X bound
himself to build a house for Y for ₱
1,000,000.
Active Subject: y
Passive Subject: x
Prestation: Building of the house
Efficient Cause: the agreement of the contract,
is the source of the juridical tie.

Supposed: the building is constructed.

Active subject: x
Passive Subject: y

KINDS OF OBLIGATION ACCORDING TO

UNILATERAL & BILATERAL THE SUBJECT MATTER.
Unilateral From the viewpoint of the subject matter,
obligation may be
 Only one party is required to perform a
particular conduct.  REAL OBLIGATION
 PERSONAL OBLIGATION
Bilateral o Positive personal obligation
 Each party is required to perform a o Negative personal obligation
particular conduct.
Ex: D is obliged to give ₱50, 000 with REAL OBLIGATION
interest at 12% per annum on Dec. 31,
 Obligation to give
2015 pursuant to a contract of loan.
 Is that in which the subject matter is a
The obligation here is UNILATERAL, thing which the obligor(dr.) must deliver
only one party (D) is required to perform to the obligee(cr.)
a particular conduct.
Ex: X(seller) Binds himself to deliver a
Because only D is the only one to piano to Y(buyer).
give and there is no reciprocal.
D is obliged to transport the goods of
C from Manila to Cebu, and C is obliged PERSONAL OBLIGATION
to pay D ₱1,000,000 as transport costs,  Obligation to do or not to do
under a contract of carriage.  In which the subject matter is an act to
The obligation here is BILATERAL, done or not to be done.
each party is required to perform a
particular conduct.
o POSITIVE PERSONAL OBLIGATION
As regards the with the giving of Obligation to do or to render
₱50,000 with 12% interest service. (ART 1167)
Active Subject (C) and the Ex. X binds himself to repair a piano
Passive Subject (D) of Y.

As regards the Payment of transport

costs witch the Prestation
o NEGATIVE PERSONAL OBLIGATION
Active Subject is (D) Obligation not to do
Passive Subject is (C) (includes obligation “not to give”)
 (ART 1168) The obligation to support one’s
family (Art. 291)
Ex. X obliged not to build a fence on a
certain portion of his lot in favor of Y The national Internal Revenue Code
who is way over said lot. which provides for the payment of
taxes.
The Anti- Mendicancy law which
prohibits the giving of alms to
beggars.
SOURCES OF OBLIGATION (ART 1157)
ART.1157 CONTRACTS
Obligation arise from: Law, ART 1305
Contracts, Quasi- contracts, Acts or
- A contract is a meeting of the minds
omissions punished by law and Quasi
between two persons whereby binds
delicts.
himself with respect to the other, to give
something or to render some service.
 LAW ART 1159
 CONTRACTS
- Obligation arising from contracts have
 QUASI-CONTRACT
the force of law between the contracting
o Negotiorum Gestio
parties and should be complied with a
o Sulotio Indebiti
good faith.
 ACTS OR OMMISSIONS
PUNISHED BY LAW
 When they arise from the stipulation of
 QUASI-DELICTS or (Torts)
the parties (Art. 1306)
ART. 1306
LAW
- The contracting parties may establish
(According to SANCHEZ ROMAN) means a
such stipulation, clauses, terms and
rule of conduct, just and obligatory, laid down
conditions as they may deem
by legitimate authority for a common
convenient, provided they are not
observance and the benefit.
contrary to law, morals, good customs,
 When they imposed by law itself. public order, or public policy.

ART 1158 Ex: The obligation to repay a loan or

Obligations derived from law are not
presumed.
Only those expressly determined in
this code or in special laws are
demandable and shall be regulated by
the precepts of the law has not been
foreseen, by the provision of the book of
obligation.
Ex. The obligation to pay taxes:
indebtedness by virtue of an
agreement.
A contract of lease which provides
for the payment of rental by lessee.
A contract of sale which requires the
seller to deliver the thing sold and
the buyer to pay the price.

QUASI-CONTRACT
ART. 2142
- They refer to a certain lawful,
voluntary administration of property,
business or affairs of another without
the consent or authority.
- It creates the obligation to reimburse
the gestor for necessary and useful
expenses.
 There is no consent but the same
supplied by fiction of law unlike
contract itself that there is a meeting
of the minds or consent or the parties
entered into a formal agreement.
 There are unjust enrichment “when a
person unjustly retains a benefit to
the loss of another, or when a person
retains money or property of another
against the fundamental principles of
justice, equity and against
conscience”
 (ART.1160) treats of obligation
arising from quasi-contract or
contracts implied by law.
o Negotiorum Gestio
- This refers to voluntary
administration of the property,
business or affairs of another
without his consent or
authority.
- It creates the obligation to
reimburse the gestor for
necessary and useful
expense.
Ex: D and C are the owners of adjacent
vegetables farms.
One day D was not around to tend to
his farm. When C notice that D has
not been around for almost a week,
he himself cultivated the soil and
placed fertilizer on it, watered the
plants, removed the weeds and wilted
leaves. C incurred necessary and
useful expenses in the process
D must reimburse C for such expenses.
Otherwise, he will be unjustly enriching
himself at C’s expense
.
o Solutio Indebiti
- Juridical relation which is
created when something is
received when there is no
right to demand it and it was
duly delivered through
mistake.
- This refers to the payment by
mistake of an obligation which
was not due when paid.
- It creates the obligation to
return the payment. (ART.
2154)
Ex: D the payee of the check for
₱5,000,000, cashes it with the drawee
bank, but the teller gives him
₱6,000,000 by mistake.
D duty bound to return the excess
₱1,000,000 to the bank.
Otherwise D will be unjustly enriching
himself at the bank’s expense.
Ex: D owes C ₱1,000; if D paid T
believing that T was authorized to
receive a payment for C.
 The obligation to return on the part of T
arises.
If D paid C ₱2,000 by mistake.
C must return the excess of ₱1,000
COMPLIANCE IN GOOD FAITH
-means compliance or performance in
accordance with the stipulation or terms of the
contract or agreement.
-Sincerity and honesty must be
observed to prevent one party from taking
unfair advantage over the other.
-Non-compliance by a party with his
legitimate obligations after receiving the benefit
of a contract would constitute unjust
enrichment on his part.
Ex:
If S agrees to sell his house to sell his house
ACTS OR OMMISSION PUNISHABLE BY QUASI-DELICTS (TORTS)
LAW
 Also known as
ART. 1161 “torts” or “Culpa Aquiliana”
- When they arise from civil
liability which is the
ART. 2176
consequence of a criminal
offense. - When they arise from
damage caused to another
ART.100, REVISED PENAL CODE
through an act or omission,
- These are crimes or there are being fault or
felonies. The commission negligence, but no
of a crime makes the contractual relation exist
offender civilly reliable. between parties.
ART. 104, R.P.C To a Quasi-Delicts case to prosper, the
compliant must established:
- Such civil liability includes
restitution, reparation of the Damage to compliant
damage caused, and Negligence, by act or omission of the
indemnification of defendant or by some person for whose
consequential damages. act the defendant must, respond, was
guilty:
Ex:
The connection or cause and effect
The obligation of the thief to return the between such negligent and damages.
car stolen by him; The negligent act or omission must be
the proximate cause of injury
The duty of a killer to indemnify the heirs
of his victim. Ex:
-If a person was cleaning his window, causes a
flower pot to fall through his negligence there
by injuring someone passing by, the former is
liable for damages to the latter. (ART. 2193)
-the obligation of the possessor of the animal
to pay for the damage which it may have
caused (ART.2183)
LEGAL OBLIGATION
 (ART.1168)- refers to legal obligation or
obligation arising from law. They are not
presumed because they considered a
burden upon the obligor. They are the
exception, not a rule. To be
demandable, they must be clearly set
forth in the law, (i.e., civil code or special
laws)
ART. 1158
Obligations derived from law are not
presumed.
Only those expressly determined in
this code or in special laws are
demandable and shall be regulated by
the precepts of the law has not been
foreseen, by the provision of the book of
obligation.
Under the Article 1158, special laws refer to
all other laws not contained in the Civil Code.
Example: Corporation Code, Negotiable
Instrument Law, National Internal Revenue
Code, Revised Penal Code, Labor Code & etc.
Contractual Obligation
 Below article speaks of contractual
obligation or obligation arising from
contracts or voluntary agreements. It
presupposes that the contract entered
into are valid and enforceable.
ART. 1159
Obligations arising from contracts
have the force of law between the
contracting parties and should be
complied with in good faith.
CONTRACT
-is a meeting of the 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
-Obligations arising from contracts have
force the law between contracting parties
-They have the binding effect of obligations
imposed by laws.
-However, that contract is superior to the
law. As a source of enforceable obligation,
contract must be valid and it cannot be valid if
it is against the law.
REQUIREMENT OF A VALID
CONTRACT
-A contract is valid if it is not contrary to
law, morals, good customs, public order
and public policy. (ART.1318)
-It is invalid or void if it is contrary to
law, morals, good customs, public
order, or public policy (ART. 1306).
NOTE:
-IN THE EYES OF THE LAW, VOID
CONTRACT DOES NOT EXIST. (ART. 1409)
-NO OBLIGATION WILL ARISE.
-A CONTRACT MAY BE VALID BUT
CANNOT BE ENFORCE. THIS IS TRUE IN
THE CASE OF UNENFORCEIBLE
CONTRACTS (ART 1317, 1403)
 BREACH OF CONTRACT
-A contract may be breach or violated by
partly in whole part or in part.
-A breach of contract takes place when a
partly fails or refuses to comply, without
legal reason or justification, with his
obligation under the contract as promised.