BOOK IV

OBLIGATIONS AND CONTRACTS

TITLE 1. OBLIGATIONS
Chapter 1
GENERAL PROVISIONS
 ARTICLE 1156
AN OBLIGATION IS A JURIDICAL NECESSITY TO
GIVE, TO DO, OR NOT TO DO

v Latin Word “Obligare” which means to bind

v Manresa (Spanish Commentator in civil law) – legal

relation, established between one person and another
whereby the latter is bound to fulfillment of prestation which
the former may demand from the former.
ARTICLE 1156
AN OBLIGATION IS A JURIDICAL NECESSITY TO GIVE, TO DO, OR NOT TO DO

v JUSTICE REYES (SC)

• It is a juridical relation

• Whereby a person (creditor) may demand from

another (debtor)

• The observance of a determinative conduct (giving,

doing and not doing) – POSITIVE and NEGATIVE

• And in case of breach, may demand satisfaction

from the asset of another
ARTICLE 1156
AN OBLIGATION IS A JURIDICAL NECESSITY TO GIVE, TO DO, OR NOT TO DO

v ELEMENTS OF OBLIGATION:
1. ACTIVE SUBJECT (OBLIGEE or CREDITOR)
• possessor of right;
• it is in his favor that the obligation is constituted

2. PASSIVE SUBJECT (OBLIGOR or DEBTOR)

• Duty of giving, doing, or not doing;
• Party obligated to deliver a promise or undertake some act of performance

3. OBJECT OR PRESTATION
• Subject matter of the obligation;
• The conduct that needs to be performed by the debtor (To give to do or not
to do)

4. EFFICIENT CAUSE
• VINCULUM JURIS or JURIDICAL TIE
• Binds or connects the parties to obligation (SOURCE OF OBLIGATION)
 ARTICLE 1157
AN OBLIGATION ARISES FROM:
1. LAW (Article 1158)
2. CONTRACTS (Article 1159 and Title II)
3. QUASI – CONTRACT (Article 1160)
4. ACTS OR OMISSIONS PUNISHED BY LAW (Article 1161 and
the Revise Penal Code)
5. QUASI – DELICT (Article 1162)
ARTICLE 1157
1. LAW (Article 1158) - enactment of the legislative body in the exercise of its
original or delegated authority (executive and administrative orders and
regulations)
2. CONTRACTS (Article 1159 and Title II) Art 1305 meeting of the minds
between 2 persons wherein one binds himself with respect to other to give
something or render
3. QUASI – CONTRACT (Article 1160) - juridical relation that the law creates
on the basis of voluntary, unilateral, and lawful acts of a person to avoid unjust
enrichment.
4. ACTS OR OMISSIONS PUNISHED BY LAW (Article 1161 and the
Revise Penal Code)
5. QUASI – DELICT (Article 1162) - by act or omission causes damage to
another there being by fault or negligence is obliged to pay the damaged done
and there is no pre existing contractual obligation
 ARTICLE 1158
(LAW)
q OBLIGATIONS COMING FROM LAW ARE NEVER PRESUMED
q ONLY THOSE EXPRESSLY DETERMINED IN THIS CODE OR IN
SPECIALS LAWS ARE DEMANDABLE
q AND SHALL BE REGULATED BY THE PRECEPTS OF THE LAW
WHICH ESTABLISHED THEM
qAND AS TO WHAT HAS NOT BEEN FORESEEN BY THE
PROVISION OF THIS BOOK

v For it to be demandable, it must be clearly stated in the

law
v Not presumed because it imposes a burden upon the
obligor
 ARTICLE 1159
(CONTRACT)

OBLIGATIONS ARISING FROM CONTRACTS

HAVE FORCE OF LAW BETWEEN THE
CONTRACTING PARTIES AND SHOULD BE
COMPLIED WITH IN GOOD FAITH

v
ARTICLE 1159 (CONTRACT)

v Article 1305 defines CONTRACT as: Meeting of the minds

between 2 persons whereby one binds himself with respect to
the other to give something or to render some service (not doing
something)

v OBLIGATORY FORCE OF CONTRACT – Laws between parties

and needs to be complied with in good faith

v FREEDOM TO CONTRACT – “Autonomy of Contract”

v LIMITATION – Should not be contrary to law morals good custom

and public order
 ARTICLE 1160
(QUASI – CONTRACT)
OBLIGATIONS DERIVED FROM QUASI-CONTRACTS
SHALL BE SUBJECT TO THE PROVISION OF
CHAPTER 1, TITLE XVII OF THIS BOOK
v QUASI – CONTRACT DEFINED: Juridical relation that arises
from certain lawful voluntary and unilateral act that no one
shall be unjustly enriched or benefited at the expense of
another.
v Usually enforced upon by the court
v NO meeting of the minds
ARTICLE 1160 (QUASI - CONTRACT)

2 PRINCIPAL KINDS OF QUASI – CONTRACT:

1. NEGOTIORUM GESTIO – Voluntary management of the

property or affairs of another without the knowledge or
consent of the latter (see Module example)

2. SOLUTIO INDEBITI – Juridical relation created when

something is received there is no right to demand it and it
was unduly delivered through mistake
 ARTICLE 1161
(DELICT)
CIVIL OBLIGATION ARISING FROM CRIMINAL
OFFENSES SHALL BE GOVERNED BY THE PENAL
LAWS SUBJECT TO THE PROVISIONS OF CHAPTER
2, PRELIMINARY TITLE, ON HUMAN RIGHTS, AND
OF TITLE XVII OF THIS BOOK, REGULATING
DAMAGES
v
ARTICLE 1161 (DELICTS)

v FELONY – an act or omission punishable by law;

Committed either by DOLO or DECEIT (Deliberate) or
by CULPA or FAULT (Negligence, Imprudence, Lack
of foresight or skill)

v FELONY OF A VIOLATION OF THE REVISED PENAL

CODE and CRIME if violation of other laws (Used
Interchangeably)
ARTICLE 1161 (DELICTS)

vAs a rule: A PERSON CRIMINALLY LIABLE IS CIVILLY LIABLE

ü A crime cause moral and material damage (Civil) but not all
( CRIME AGAINST PERSON, PROPERTY or CHASTITY)

ü Purpose in criminal liability is to punish the offender while the civil

aspect is to repair damages

ü Criminal Case and Civil Case may be filed simultaneously or

separate (independent action)

ü Quantum of Proof: Criminal (PROOF BEYOND REASONABLE DOUBT)

and Civil (PREPONDERANCE OF EVIDENCE)

ü EFFECT OF ACQUITTAL IN CRIMINAL CASE (No crime/Exempting-

Guardian)/Failed to prove guilt beyond reasonable doubt)
ARTICLE 1161 (DELICTS)

CIVIL LIABILITY ARISING FROM CRIME INCLUDES:

1. RESTITUTION – to restore the thing damaged (even if with

3rd person)
2. REPARATION – court determine the amount of damage
and value to the injured party; to make amend for wrong
done
3. INDEMNIFICTION FOR CONSEQUENTIAL DAMAGES – Those
suffered by the family or third person by reason of the
crime
 ARTICLE 1162
(QUASI - DELICT)
OBLIGATIONS DERIVED FROM QUASI-DELICT
SHALL BE GOVERNED BY THE PROVISION OF
CHAPTER 2, TITLE XVII OF THIS BOOK AND BY
SPECIAL LAW
ARTICLE 1162 (QUASI - DELICTS)

v QUASI – DELICT – FAULT or NEGLIGENCE where a person

causes damage to another in the absence of
CONTRACTUAL RELATION between parties. Person at fault is
obliged to pay for the damage done. (TORT or CULPA
AQUILIANA) (vs CRIME)

v NEGLIGENCE – omission of that diligence which is required

by the nature of the obligation and corresponds with the
circumstance of the PERSONS, TIME, and PLACE. (Art 1173.
In the absence of Diligence: DILIGENCE OF A GOOD
FATHER OF A FAMILY)
ARTICLE 1162 (QUASI - DELICTS)

TEST TO DETERMINE NEGLIGENCE (Picart vs Smith 37 Phil 809)

”Would a prudent man (in his position) foresee harm to the

person inure as a reasonable consequence of the course
about to be pursued? If so, the law imposes a duty on the
actor to refrain from that course, or to take precaution against
its mischievous results, and the failure to do so constitute
negligence. Reasonable foresight of harm, followed by the
ignoring of the admonition born of this provision, is the
constitute fact of negligence.”
ARTICLE 1162 (QUASI - DELICTS)

KINDS OF NEGLIGENCE:

1. CULPA AQUILIANA or QUASI – DELICT – source of

obligations is negligence with NO CRIMINAL INTENT. NO
Existing contract

2. CULPA CONTRACTUAL - Source of obligation is the

contract. Negligence in carrying out the terms and
conditions of the contract
ARTICLE 1162 (QUASI - DELICTS)

BASIS OF THE ACTION

v BREACH OF CONTRACT (culpa contractual)
• Prosecuted by presenting the existence of the contract and the fact that debtor
failed to comply therein

v QUASI – DELICT (culpa aquiliana)

• Negligence or fault needs to be established because it is the basis of the action
• Negligence or Fault should be the PROXIMATE CAUSE of the injury suffered by the
plaintiff
• PROXIMATE CAUSE
• THAT which in a natural and continuous sequence unbroken by any efficient and
intervening cause produce the injury without which the result would not have
occurred.
• “if the event did not happen, would the injury still have resulted?”
• IF NO. event is proximate cause
• With res ipsa loquitur, the jury can infer that the proximate cause of the accident was
due to the negligent act of the defendant
ARTICLE 1162 (QUASI - DELICTS)

vDOCTRINE OF RES IPSA LOQUITUR

• The term “res ipsa loquitur” is Latin for “the thing speaks for itself." It was a legal
doctrine created to bridge the gap in situations where someone was likely
responsible for an accident but the injury victim cannot prove the necessary
elements of negligence.

• Example: Stuart is walking down the street in downtown Los Angeles. Suddenly, Stuart
is hit on the head by a piano falling from the sky and suffers a head injury. Stuart
contacts a lawyer who investigates the accident.
• Stuart's attorney finds out Mason was moving a piano into a high-rise apartment that
day when the piano suddenly fell. Mason says he does not know what happened or
how the piano fell.
• Stuart may not be able to show Mason's negligence because no one knows how
Mason breached his duty of care. However, one could infer that Mason did
something that caused the piano to fall because he was the one who was handling
the piano at the time. The accident speaks for itself. Unless Mason can show some
other cause of the piano falling, Mason may be liable for Stuart's injuries.
ARTICLE 1162 (QUASI - DELICT)

REQUISITES OF QUASI - DELICT:

1. There must be an act or omission

2. There must be fault or negligence
3. There must be damaged caused
4. There must be direct relation or connection of cause and
effect between the act or omission and the damage
(Proximate cause)
5. There is no Pre –Existing contractual relation between the
parties
 CLARIFICATION:
v DELICT vs Quasi – Delict:
a) DELICT – Intent to Cause Harm (criminal which can lead to
civil damAges.
b) QUASI DELICT – No intent to cause harm (Damages -Civil)
v FELONY – an act or omission punishable by law; Committed
either by DOLO or DECEIT (Deliberate) or by CULPA or
FAULT (Negligence, Imprudence, Lack of foresight or skill)
vKINDS OF NEGLIGENCE:
1. CIVIL (UNDER THE NEW CIVIL CODE)
a. Culpa Contractual
b. Culpa Aquiliana (Quasi – Delict)
2. CRIMINAL (UNDER THE REVISED PENAL CODE) - FAULT
MISSION ACCOMPLISHED. NEXT STAGE PLEASE