ARTICLE 1156 – 1160 

active aspect (credit) and obligation is

the passive aspect (debt).

ARTICLE 1156. An obligation is a juridical KINDS OF PRESTATION

necessity to give, to do or not to do.
Obligation – The requirement to do what is
imposed by law, promise, or contract.
Obligation is synonymous with duty. It’s a tie
which binds us to pay or to do something
agreeably to the laws and customs of the
country. According to Arias Ramos,
obligation is nothing more than the duty of a
person (debtor or obligor) to satisfy a
specific and demandable claim of another
person (creditor or obligee) which if
breached is enforced in court.
Elements of Obligation
1. Obligation to give – consist in the
delivery of a movable or immovable
thing to the
creditor. Example: Obligation to deliver
the thing in sale, deposit, pledge,
donation, anti-chresis.
2. Obligation to do – covers all kinds
of works or services whether physical or
mental. Example: Contract for
professional services like painting,
modelling, singing.
3. Obligation not to do – consist in
refraining from doing some acts like
producing aggravating noise, offensive
odor, smoke, heat.

1.  Active subject (creditor or obligee).

– the person who has the right to
demand the fulfillment of the obligation.
2. Passive subject (debtor or obligor).-
the one who is bound to the fulfillment
of the obligation.
3. Prestation or object – It may
consist in giving, doing, or not doing.
Without prestation, there is nothing to
perform. Object refers to the property
or the things. Prestation is the subject
matter of the obligation.
4. Efficient cause (juridical or legal tie) ARTICLE 1157 - Obligations and Contracts
– that which binds or connects the
parties to the obligation which is Obligations arise from:
established :
-by law (e.g relation of husband and 1 Law
wife giving rise to the obligation and 2 Contracts
support) 3 Quasi-contracts
-by bilateral acts (e.g contracts giving 4 Acts of omissions punished by law; and
rights to the obligations stipulated
5 Quasi-delicts
therein)
-by unilateral acts (e.g crimes and
quasi-delicts) 1 Law- wherein they are imposed by law
itself
Right and obligation, Correlated – ex. obligation to pay taxes
When there is right there is a
corresponding obligation. Right is the obligation to support one's family
2 Contracts- when they arise from the
stipulations of the parties
ex. obligation to repay loan by virtue
of an agreement
3 Quasi-contracts- when they arise from
lawful, voluntary and unilateral acts which
are enforceable to the end that no one shall
be unjustly enriched or benefited at the
expense of another
ex. obligation to return money paid
by mistake or which is not due
4 Acts or omissions punished by law-
when they arise from civil liability which is
the consequences of a criminal offense.
ex. obligation of the thief to return
the car stolen by him.
5 Quasi-delicts- when they arise from
damage caused to another through an act
of omission, there being fault or negligence,
but no contractual relation exist between the
parties.
ex. obligation of the professor of an
animal pay for the damages which it may
have caused.
ARTICLE 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 which
establishes them; and as to what has not
been foreseen, by the provisions of this
Book
-Governed by the law itself
-Agreement of the parties is not necessary
e.g tax collection.
-Not presumed, only those expressly
provided are enforceable.
Ex: An employer has no obligation to furnish
free legal assistance to his employees.
A private school has no legal obligation to
provide clothing allowance to its teachers.
ARTICLE 1159. Obligation arising from
contracts have the force of law between the
contracting parties and should be compiled
with in good faith.
Distinction Between an Obligation and a
Contract. – An obligation is a juridical
necessity to give, to do or not to do. A
contract is an agreement between parties
with respect to the other, to give something
or render some service.
Requirement of a valid contract – it is
valid if it is not contrary to law, morals,
goods customs, public order, and public
policy.
In the eyes of law, void contract does not
exist.
Where contract requires approval by the
government – contract becomes a law
between contracting parties only when
approved.
Compliance in good faith – means in
compliance in accordance with the terms of
the contract or agreement.
Good faith and fair dealing must be
observed to avoid one from taking unfair
advantage over the other.
Liability for breach of contract – a party
cannot breach it with impunity. Law on
contracts recognizes the principle that
actionable injury inheres in every
contractual breach
Preservation of interest of promise –
remedy preserve the interest of the
promises of being reimbursed for kiss
caused by the reliance on the contract.
Make recompense to the one who has been
injured by the failure of the other to observe
contractual obligation unless an extenuating
circumstance is shown.
ARTICLE 1160. Obligation derived
from quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII, of this
book.
Quasi-Contract – is a juridical relation which
arises from a lawful, voluntary and unilateral
act or acts executed by somebody from the
benefit of another and for which the former
must be indemnified to the end that no one
shall be enriched or benefited at the
expense of another.
The term “Quasi” means “resemblance to”.
Quasi-Contracts is similar to contracts.
However, it is different from a contract, in
respect that there is no formal agreement
entered into by the parties.
Differences between Contract and Quasi-
Contract:
Contract = Agreement + Legal Obligation
Quasi-Contract = Agreement + Legal
Obligation
Important features of Quasi-Contractual
Rights:
- Quasi-contract is not a real contract.
- It is not based upon the offer and the
acceptance rule.
- It does not arise from any formal
agreement but it is imposed by law.
- It is a right which is available not against
the entire world, but against particular
person(s) only.
Principal Kinds of Quasi-Contract
- Negotiorum Gestio – A juridical relation
which take place when somebody take
charge of the agency or management or
property of another without any power from
the latter.
EXAMPLE: X went to Baguio with his family
without leaving somebody to look after his
house in Manila. While in Baguio, abig fire
broke out near the house of X. Through the
effort of Y, a neighbor, the house of X was
saved from being burned. Y, however,
incurred expenses. In this case, X has the
obligation to reimburse Y for said expenses,
although he did not actually give his consent
to the act of Y in saving his house, on the
principle of quasi-contract.
- Solutio Indebiti – A juridical relation
which take place when somebody received
something from another without any right to
demand for it.
Presumptive Consent
- It gives rise to multiple juridical relations
which result in obligations for the delivery of
the thing or rendition of service.
Quasi-Contractual Obligations:
- Claim for necessity supplied to a person
incapable of contracting or on his account.
- Reimbursement of person paying money
due to another, in payment of which he is
interested.
- Obligation of person enjoying benefit of
non-gratuitous act.
- Responsibility of finder of lost goods.
- Liability of person to whom money is paid
or thing delivered by mistake or under
coercion.
A quasi-contract is not the same as a
contract because in quasi-contract there is
no consent and the same is supplied by
fiction of law, while in case of contract,
consent is essential for its validity.  The
principle involved in quasi-contract is no
person shall be unjustly enriched or
benefited in the expense of another