UNIT 1: INTRODUCTION TO LAW
as a basis for lower courts.
Law
 No disagreement as to the necessity of this
passage.
 Regulates the actions of everyone in order to
bring about harmony.
 Rule of action/conduct that should be just
and enforced.
 Has an obligatory character
 In promulgation of which, it must be done
with obligant authority and for common
observance and benefit.
Characteristics of Law
1. Rule of Conduct – serves as a guide that must
be followed accordingly.
2. Just and Obligatory – when a law is passed,
then it must be enforced/obligatory (rule of
action) and must follow precepts in order to
avoid sanctions. Must be fair that the framers
of law must impose penalties that are
appropriate for the action done.
3. Promulgated by legitimate authority – only
limited to those who were clothed with
authority (Congress, a legislative branch).
4. It is of Common Observance and benefit –
when a law is passed, it must be enjoyed by
everyone, but not all benefits since the law
intends some benefits to a given sector.
Branches/Domains of our Government
 Legislative-branch where laws are made
generally; lawmakers
*the next 2 branch also has a limited rule-
making power to legislate; delegated power*
 Executive
 Judicial/Judiciary- composed of Supreme
Court (highest), (lower courts) Court of
Appeals, regional and municipal trial courts
Sources of Law
1. Constitution – most fundamental law of the
land.
* 1987 Philippine Constitution– prevailing
constitution that we are following*
2. Legislation- legal rules laid down by
competent authorities.
3. Administrative or executive orders,
regulations, and rulings- must be broken
down into the rules that pertains to the
implementation of the law.
4. Juridical Decisions or Jurisprudence- they
decide what must be followed and if some
cases are of the same character, it may serve
5. Customs/Traditions- must be proved as a
fact.
6. Other Sources (principles of justice and
equity, decisions of foreign tribunals,
opinions of text writers, and religion)
Classifications of Law
According to purpose
 Substantive Law- can create, define, and
regulate right and duties. Can be applied in
private and public.
 Adjective Law- procedures that must be
followed/undertake which rights be enforced
or violations redressed. Also called remedial
law or procedural law.
According to subject matter or nature
 Public Law – legal rules which regulates the
rights and duties arising from the relationship
of the state to the people.
Ex. Criminal law, a law which defines crimes
and provides for their punishment.
International law, a law which governs
the relations among nations or states.
Constitutional law, govern relations
between the state and its citizens; establishes
fundamental power of government; due
process
Administrative law, governs methods by
which the functions of administrative
authorities are to be performed;
Criminal Procedures, branch of private
law that governs the methods of trial and
punishment in criminal cases.
 Private Law –body of rules which regulates
the relations of individuals with one another
for purely private ends.
*includes civil law, commercial or mercantile
law, and civil procedure*
*Civil Procedure, branch of private law
which provides for the means by which
private rights may be enforced.*
*Obligations & contracts is a private law
that falls under the Civil Law.*
*Article 2 of our Civil Code mentioned that
“Publication of a law is an indispensable
necessity” which gives rise that everyone is
conclusively presumed to know the law,
meaning we cannot use ignorance from being
sanctioned from the coverage of law.*
 “Ignorance of the law excuses no one from
compliance therewith.” (Article 3 of the
Civil Code)
UNIT 2: GENERAL PROVISIONS
Obligation (civil)
 A juridical necessity (civil) to give, to do,
and to not do. (Civil Code definition from
Article 1156)
 Derived from the Latin word obligation,
meaning “tying or binding”.
 Establishes a duty (bound to comply) and a
right (bound to enforce).
Juridical necessity
 In case of noncompliance, the courts of justice
may be called upon by the aggrieved party to
enforce fulfilment or, in default thereof, the
economic value it represents.
 The person who has a right can compel for
the fulfilment of the obligation by filing an
action or seeking aid from the courts of
justice.
Civil Obligation
 Allows the creditor to enforce the
performance under the courts of justice.
 Based on positive law.
Natural Obligation
 Voluntary performance
 Based on equity and natural law; conscience
and morals.
 No action can be taken in a court of law to
compel you, only if you do the act voluntarily.
 What is given or done voluntarily, cannot be
recovered.
*can only be recovered if one is in good faith
and has no knowledge towards the action
done.*
Essential Requisites in Establishing an Obligation
(Under Art. 1156)
*as to subject matter, active and passive*
1. Passive subject (debtor/obligor) –the party or
person who has to fulfill the
duties/responsibilities arising from the
obligation.
2. Active subject (creditor/obligee) –person or
party that is entitled to demand the fulfilment of
the obligation.
3. Object/Prestation –conduct that needs to be
observed in the obligation; to give (real
obligation) or not to give and to do (personal
obligation) or not to do.
4. Juridical Tie/Vinculum Juris/Efficient Cause –
talks about Art. 1157. In reference to where an
obligation arises or what is the source of
obligation.
5. Form of Obligation –in what form of obligation
will be manifested. Formality which the law
inquires to enforce the obligation (this must be
followed if the law requires formality in order
for it to be enforced.) *an added element if law
requires*
Sources of Obligations arises from (Art. 1157)
1. Law (Art. 1158);
2. Contracts (Art. 1159);
3. Quasi-contracts (Art. 1160);
4. Acts or Omissions punished by law
(delicts/criminal offenses, Art. 1161); and
5. Quasi-delicts (Art. 1162)
Kinds of Obligation
*depending on subject matter/object/prestation
1. Real Obligation
2. Personal Obligation (positive of negative)
*according to sanction
1. Civil Obligation
2. Natural Obligation
*according to the persons obliged
1. Unilateral –only one party obliged to do the
obligation.
2. Bilateral –both parties are mutually obliged
to be debtors and creditors of each other.
a. Bilateral Reciprocal – cause of
obligation arise from the same
act/cause; as a rule, it is done
simultaneously. (e.g. sale and
delivery)
b. Bilateral Non-Reciprocal –still
mutually obligor and oblige of each
other, but did not arise from the same
source/cause of obligation, thus,
performance of the obligation is also
not the same.
*Mutuum vs Commodatum –are both simple loans
but has differnet concepts.
Mutuum
 What was lent, although being paid, will not
be the same as to what has been given, but
merely an equivalent.
Commodatum
 What is lent, is also the same object to be
returned or paid.
*The pertinent provision of the Civil Code which is
indicative of the sources of obligation: Art. 1157*
Article 1158:
 Law as the source of our obligation.
 We cannot presume.
 When an obligation arises from law, it must
be clearly set forth.
 We must see to it that it the laws allows a civil
obligation to be demanded.
Article 1159:
 Obligation that arises from a contract or
voluntary agreements.
 The foundation of a contract is the meeting of
minds between 2 persons.
Requisites/rules that arises from contractual
obligation:
1. It has the force of law between contracting
parties; must be valid and cannot be against
the law.
2. Requirement or limitations of valid contracts:
 It must not be contrary to law, morals,
good customs, public order, or public
policy (Art. 1306).
3. Breach of contract due to failure/refusing of
the party to comply without legal reason of
his obligation under the contract.
4. Parties of contract must follow the Principle
of Compliance in Good Faith (compliance
with stipulations or contracts of agreement).
Sincerity and honesty must be observed.
*Non-compliance after receiving the benefits of
contract constitutes an unjust enrichment of
that party.*
Article 1160:
 Obligations arising from Quasi-contracts.
 Quasi-contracts –a juridical relation
resulting from lawful, voluntary and
unilateral acts by which parties become
bound to each other to the end that no one
will be unjustly enriched or benefited at
the expense of another (Art. 2142).
*Following Art. 22 of Civil Code, 2 conditions must
agree to declare that a person has unjustly enriched
himself:
1. A person is unjustly benefited;
2. Such benefit is derived at the expense of or the
damage of the other.
Kinds of Quasi-contracts
1. Negotiorum gestio –voluntary management
of property or affairs of another without the
knowledge or consent of the latter.
2. Solutio indebiti –juridical relation which is
created when something is received when
there is no right to demand it and was unduly
delivered as a mistake (Art. 2154).
*For extra-contractual obligation of
solutio indebiti to arise, the following
requisites must be proven:
a. There is no right to receive the thing
delivered or to collect the excess sum;
and
b. The thing was delivered through
mistake.
3. Other examples of quasi-contracts –are
provided in Art. 2164 to 2175 of the Civil
Code. Cases that have been classified as quasi
contracts are of infinite variety, and for some
reason, recovery cannot be had on a true
contract. Recovery may only be allowed on
the basis of a quasi-contract.
Article 1161:
 Obligations arising from criminal offenses or
delicts, acts or omissions that are considered
illegal.
 Justification for civil liability for damages
arising from crimes:
a. Commission of a crime causes not only
moral evil, but also material damage.
A person who is criminally liable can
also be civilly liable.
b. Crimes which causes no material
damage, has no civil liability
(contempt, insult to a person, traffic
violation, etc.).
c. But if a person is not criminally
responsible, may still be civilly liable
(failure to pay contractual debt,
causing damage to property without
malicious/criminal intent/negligence,
etc.).
 Civil Obligations arising from criminal
offense/ extent of civil liability for damages
arising from crimes by the Revised Penal
Code and Civil Code (Civil Liabilities for
delicts):
a. Restitution (to return or restore);
b. Reparation for the damage caused;
and
c. Indemnification for consequential
damages.
 Affects public interest. Concerns private interest.
Article 1162: Has generally 2 liabilities:
Has only civil liabilities.
criminal and civil.
 Obligations arising from Criminal liability cannot
Quasi-delicts/tort/Culpa Aquiliana. Liability for quasi-delicts
be compromised or
 Act or omission of a person that causes can be compromised as
settled by the parties
injury or damage to another in his person, any other civil liability.
themselves.
property, or rights giving rise to an obligation Fault or negligence of the
to pay for damages done. Guilt of the accused must
defendant need only to be
 Caused by fault or negligence but there is no be proved beyond
proved by preponderance
pre-existing contractual relation between the unreasonable doubt.
of evidence.
parties (Art.2176).
*Requisites before a person can be held liable for
quasi-delicts, there must be: UNIT 3: NATURE AND EFFECT OF OBLIGATIONS
a. An act or omission
b. Fault or Negligence Nature refers to the object or prestation of an
c. Damage caused obligation (to give, to do, and not to do, Art. 1156).
d. Direct relation or connection of cause and Real Obligation:
effect between the act or omission and the
damage. Article 1163: Obligation with the Prestation to
e. No pre-existing contractual relation Give
between the parties.
 Compliance by the act of delivery to the thing
*Negligence is the failure to observe for the agreed upon.
protection of the interests of another person that *object is a “thing”*
degree of care, precaution, and vigilance which the  We must consider that the object/thing of an
circumstances justly demand, whereby such person obligation could include either a personal
suffers injury. property or a real property.
1. Personal Property –includes the
Kinds of Negligence things that are susceptible of being
1. Culpa Aquiliana or Quasi-Delict –arises transferred to one place to another
from no pre-existing contractual by actual delivery.
obligation or no provision (ex. Of the 2. Real Property –includes land,
parent over the children) buildings, machinery or equipment
2. Culpa Contractual –arises from contracts that have been attached permanently
3. Culpa Criminal –arises from crimes or for the purposes of industry of work,
criminal offense. etc., and delivery is done
constructively.
*Culpa Aquiliana and Culpa Contractual are civil
negligence. Extent/Duties of Debtor for an Obligation to Give:

Note: Both criminal and civil negligence involve a. To deliver

failure to adhere to an appropriate standard of b. Preserve
care. Civil negligence can occur as the result of a c. The time the obligation arises include the
mistake or oversight, whereas criminal fruits
negligence requires that a person be aware that d. As well as all accessions and accessories
what they are doing poses a risk to other people. e. Warranties (depending on tha nature of
obligation)
Crime/Delicts vs Quasi-Delicts f. Article 1165
There is criminal or
malicious intent, or There is only negligence. Kinds of Delivery
criminal negligence. *Ownership and other real rights over property
Purpose is are acquired and transmitted in consequence of
indemnification certain contracts by “tradition or delivery”.
Purpose is punishment.
(compensation) of the
offended party.
 1. Actual Delivery (or tradition) –act
by giving real and immediate
possession to the buyer.
2. Constructive Delivery –by execution
of the requisite document (ex. Deed of
sale, used to transfer ownership/title
of property).
*Specific or Determinate thing
 Particularly designated or physically
segregated from others of the same class.
 Identified by its individuality.
 Debtor cannot substitute it with another
although the latter is the same kind and
quality without the consent of the creditor.
 Not susceptible for substitution.
*Generic or Indeterminate thing
 Refers only to a class or genus to which it
pertains and cannot be pointed out with
particularity.
 Identified by its specie.
 Debtor can give anything as long as it is of the
same kind.
 Susceptible of being replaced.
*Exception for a generic thing, if converted
into a generic limited object, it will take on the
property as if it is a limited thing.
Duties of a Debtor in Obligation to Give a
Determinate Thing:
1. Preserve the thing –duty to take care of the
thing due with the diligence of a good father
of a family pending the delivery. Can no
longer be stipulated.
*General Rule:
a. Diligence of a good father of a
family – ordinary care.
*Exception:
b. Another standard of care – extra-
ordinary diligence.
c. Factors to be considered
 Necessarily depends upon
the nature of the obligation
and corresponds with the
circumstances of the
person, time, and place
(Art.1173).
 Standard of care does is not
always necessarily use to
protect one’s property.
 Debtor is not liable if failure
to preserve the thing is not
due to his fault or
negligence but to fortuitous
events or force majeure
(Art. 1174).
Article 1164:
 Concept on/Classification of legal fruits: civil,
natural, and industrial.
 In obligation to give, the thing included an
will be delivered should not only pertain to
the thing itself but also the fruits derived.
Classification of legal Fruits:
a. Natural Fruits –spontaneous product of the
soil without any human intervention and
products from animals.
b. Industrial Fruits –application of human
labor/effort/cultivation.
c. Civil Fruits –arises from a juridical relation.
*One is entitled to the fruits from the time the
obligation to deliver arises.
Distinction of a Real Right from a Personal Right
 Personal Right, addressed to the debtor, a
definite passive subject; acquired before
delivery.
 Real Right, possession or ownership;
acquired when delivered.
Article 1166:
 What is to be included in the delivery are also
all accessions and accessories even if not
mentioned for these 2 simply follow the
principle.
 Whatever is attached must be included as
well.
 Ex. Accression and Abortion
*Accessions –
*Accessories –
2 Kinds of Warranties
1. Against Hidden Defects – wherein if
defects can be identified under a
reasonable period, then it can be
exchanged.
2. Against Eviction –applied to real
properties being sold; can hold the seller
liable if later on can be ejected from the
property.
Article 1165:
  First paragraph, the acts done is in relation For an obligation to do (Art. 1167)
to a specific/determinate; 2 possible
For an obligation not to do and not to give (Art. 1168)
actions that can be done:
a. To help the courts to compel the
debtor to perform obligation/to
deliver Mora or Delay
b. In relation to Art. 1170, liability for
damages of the debtor.
*Damage refers to injury sustained,
Damages, refers to compensatory
award or indemnification for the
damage done.
*Monetary award will be given if
proven the injury sustained by
obligor/debtor.
Classification of damages

Article 1170: Grounds to Hold a Party Liable for
Damages
a. Fraud
b. Negligence
c. Delay
d. Contravention in manner of the tenor of
obligation.
 Second paragraph, generic or indeterminate;
can be complied at the expense of the debtor
and may not wait on the debtor to perform it
for it can be performed by another;
performance can substituted.

 Third paragraph, referred to Article 1174 –

concept of fortuitous events.
*Fortuitous events, an event that is either
impossible to foresee and impossible to avoid
for it is beyond the control of the obligor.
Classifications of Fortuitous Events
a. Acts of God –natural calamities (some of it
can be foreseen, but still cannot be avoided)
b. Acts of Man –riots, civil war, etc.
*Through these reasons which results to incompliance,
provided that they are independent of your will or did
not concur with the fault of man, then you can be
excused from liability for damages.