Article 1156.

An obligation is a juridical necessity to

give, to do or not to do
(4) A juridical or legal tie (also called efficient cause) or
Obligation- Latin:“obligatio”= tying or binding that which binds or connects the parties to the obligation.
The tie in an obligation can easily be determined by
-Passive Aspect knowing the source of the obligation. (Art. 1157.)

-bound or in favor of another to render something Form of Obligation

-Manresa: “a legal relation established between one party
and another, whereby the latter is bound to the fulfillment 1. General Rule: the law does not require any form in
of a prestation which the former may demand of him.” obligations rising from contracts for their validity and
binding force
Juridical Necessity (obligation)
2. obligation arising from other sources (Art. 1157) do not
-in case of non-compliance, the courts of justice may be have any form at all
called upon to enforce its fulfillment or, in default thereof,
the economic value that it represents
Obligation, right, and wrong (cause of action)
distinguished.
- the debtor may also be made liable for damages
Obligation Right Wrong(cause of
- the debtor must comply with his obligation whether he action)
likes it or not; otherwise, his failure will be visited with Act or Power which a An act or
some harmful or undesirable legal consequences. If performance person has under omission of one
obligations were not made enforceable, then people can which the law the law, to party in violation
disregard them with impunity. If an obligation cannot be will enforce demand from of the legal right
enforced, it may be only a natural obligation. another any or rights of
prestation another, causing
Nature of Obligations under the Civil Code injury to the
latter
Civil Obligations-give to the creditor or obligee a right of
action in courts of justice to enforce their performance
Essential elements of cause of action.
Natural Obligations-not being based on positive law but
(a) a legal right in favor of a person (creditor/plaintiff) by
on equity and natural law
whatever means and under whatever law it arises or is
created;
-do not grant a right of action to enforce their performance
although in case of voluntary fulfillment by the debtor,
(b) a correlative legal obligation on the part of another
the latter may not recover what has been delivered or (debtor/defendant) to respect or not to violate said right;
rendered by reason thereof. and
Requisites: (c) an act or omission in breach or violation of said right by
the defendant with consequential injury or damage to the
(1) A passive subject (called debtor or obligor) or the plaintiff for which he may maintain an action for the
person who is bound to the fulfillment of the obligation; he
recovery of damages or other appropriate relief.
who has a duty;

(2) An active subject (called creditor or obligee) or the - If any of these elements is absent, the complaint becomes
person who is entitled to demand the fulfillment of the vulnerable to a motion to dismiss on the ground of failure
obligation; he who has a right; to state a cause of action.

(3) Object or prestation (subject matter of the obligation) or - A cause of action only arises when the last element
the con- duct required to be observed by the debtor occurs, i.e., at the moment a right has been transgressed.

-It may consist in giving, doing, or not doing. Without the
prestation, there is nothing to perform. In bilateral
obligations (see Art. 1191.), the parties are reciprocally
debtors and creditors; and
An obligation on the part of a person cannot exist without a
corresponding right existing in favor of another, and vice-
versa, for every right enjoyed by a person, there is a
corresponding obligation on the part of another to respect
such right.
Cause of action based upon a written contract. There are thus two kinds of personal obligation:

-be brought within 10 years from the time the right of 1. Positive personal obligation or obligation to do
action accrues or to render service (see Art. 1167.); and

-period of prescription commences from the occurrence of 2. Negative personal obligation or obligation not
the breach. to do (which naturally includes obligations “not to
give”). (see Art. 1168.)
Injury, damage, and damages distinguished.
ART. 1157. Obligations arise from:
Injury Damage Damages
Illegal invasion Wrongful act or denote the sum (1) Law;
of a right omission which of money
causes loss or recoverable as (2) Contracts;
harm to another amends for the
which results wrongful act or (3) Quasi-contracts;
from injury omission;
(4) Acts or omissions punished by law; and

legal wrong to recompense or (5) Quasi-delicts.(1089a)

be redressed compensation
awarded or
recoverable for
the damage or
loss suffered.
Existence of one without the other.
There may be injury without damage and damage without
injury.
1 Proof of loss for injury. — A wrongful violation of his
legal right is not sufficient to entitle a person to sue another
in a court of justice for the enforcement or protection of
said right.
2. Liability for damages of a person for exercising his
legal rights. — A person has the right to take all legal steps
to enforce his legal and/ or equitable rights. One who
makes use of his legal right does no injury. If damage
results from a person’s exercising his legal rights
The plaintiff must establish that the damage to him resulted
from a breach or violation of legal duty which the
defendant owned to him; otherwise, the consequences must
be borne by the plaintiff alone.
Kinds of obligation according to subject matter.
1. Real obligation (obligation to give)
-in which the subject matter is a thing which the obligor
must deliver to the obligee; or
2. Personal obligation (obligation to do or not to do) - the
subject matter is an act to be done or not to be done.
Sources:
1. Law
-where they are imposed in the law themselves
2. Contracts (private acts)
- when they arise from the stipulation of the parties
3. Quasi Contracts
-arise from lawful, voluntary and unilateral acts and which
are enforceable to the end that no one shall be unjustly
enriched or benefited at the expense of another
4.Acts or omissions punished by law; and
-when they arise from civil liability which is the
consequence of a criminal offense
5. Quasi-delicts.(1089a)
-when they arise from damage caused to another through
an act or omission, there being fault or negligence, but no
contractual relation exists between the parties (Art. 2176.)
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 which establishes
them; and as to what has not been fore- seen, by the
provisions of this Book. (1090)
Legal Obligations
-obligations arising from law. They are not presumed
because they are considered a burden upon the obligor.
They are the exception, not the rule. To be demandable,
they must be clearly set forth in the law
-Under Article 1158, special laws refer to all other laws not
contained in the Civil Code.
Ex:
A private school has no legal obligation to provide clothing
allowance to its teachers because there is no law which
imposes this obligation upon schools. But a person who
wins money in gambling has the duty to return his winnings
to the loser. This obligation is provided by law. (Art. 2014.)
ART. 1159. Obligations arising from contracts have the
force of law between the contracting parties and should
be complied with in good faith. (1091a)
Contractual obligations
A contract is a meeting of minds between two persons
whereby one binds himself, with respect to the other, to
give something or to render some service.
(1) Binding force. — Obligations arising from contracts
are governed primarily by the agreement of the contracting
parties. Once perfected, valid contracts have the force of
law between the parties who are bound to comply therewith
in good faith, and neither one may without the consent of
the other, renege therefrom.
(2) Requirements of a valid contract. — As a source of
obligation, a contract must be valid and enforceable. A
contract is valid if it is not contrary to law, morals, good
customs, public order, and public policy. It is invalid or
void if it is contrary to law, morals, good customs, public
order, or public policy.
(3) Where contract requires approval by the
government. — Where a contract is required to be verified
and approved by the government before it can take effect
such contract becomes the law between the contracting
parties only when approved, and where there is nothing in
it which is contrary to law, etc., its validity must be
sustained.
(4) Compliance in good faith. — It means compliance or
performance in accordance with the stipulations or terms of
the contract or agreement.9 Good faith and fair dealing
must be observed to prevent one party from taking unfair
advantage over the other
(5) Liability for breach of contract. — Although the
contract imposes no penalty for its violation, a party cannot
breach it with impunity. Our law on contracts recognizes
the principle that actionable injury inheres in every
contractual breach. Interest may, in the discretion of the
court, on equitable grounds, be allowed upon damages
awarded for breach of contract.
(6) Preservation of interest of promisee. — A breach
upon the contract confers upon the injured party a valid
cause for recovering that which may have been lost or
suffered. The remedy serves to preserve the interest of the
promisee of having the benefit of his bargain, or in being
reimbursed for loss caused by reliance on the contract, or in
having restored to him any benefit that he has conferred on
the other party.
ART. 1160. Obligations derived from quasi-contracts
shall be subject to the provisions of Chapter 1, Title
XVII, of this Book. (n)
Quasi-contractual obligations.
A quasi-contract is that juridical relation resulting from
certain lawful, voluntary and unilateral acts by virtue of
which the 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.)
-not properly a contract at all
-no consent
Ex.
When a party benefited at the expense of another not liable
to the latter.
Facts: By virtue of an agreement between X and Y, X
assisted Y in improving a large tract of land which was
later declared by the court as belonging to C.
Issue: Has X the right to be reimbursed by Z for X’s
services and expenses on the ground that the improvements
are being used and enjoyed by Z?
Held: No. From the language of Article 2142, it is obvious
that a presumed quasi-contract cannot emerge as against
one party when the subject matter thereof is already
covered by an existing contract with another party. X’s
cause of action should be against Y who, in turn, may seek
relief against Z. (Cruz vs. J.M. Tuazon Co., Inc., supra.)
Kinds of Quasi Contracts
(1) Negotiorum gestio is the voluntary management of the
property or affairs of another without the knowledge or
consent of the latter.
(2) Solutio indebiti is the juridical relation which is created
when something is received when there is no right to
demand it and it was unduly delivered through mistake.
Applicable when:
(a) payment is made when there exists no binding relation ART. 1162. Obligations derived from quasi-delicts shall
between the payor, who has no duty to pay, and the person be governed by the provisions of Chapter 2, Title XVII
who received the payment; and of this Book, and by special laws. (1093a)

(b) the payment is made through mistake11 and not through Requisites of quasi-delict.
liberality or some other cause.
(1) There must be an act or omission by the defendant;
ART. 1161. Civil obligations arising from criminal
offenses shall be governed by the penal laws,14 subject (2) There must be fault or negligence of the defendant;
to the provisions of Article 2177,15 and of the pertinent
provisions of Chapter 2, Preliminary Title on Human (3) There must be damage caused to the plaintiff;
Relations,16 and of Title XVIII of this Book, regulating
(4) There must be a direct relation or connection of cause
damages. (1092a)
and effect between the act or omission and the damage; and
Concept: deals with civil liability arising from crimes or
(5) There is no pre-existing contractual relation between the
delicts.
parties.22
(1) The commission of an offense has a two-pronged effect:
one, on the public as it breaches the social order and the Crime Quasi Delict
other, upon the private victim as it causes personal Malicious intent Negligence
sufferings or injury, each of which is addressed, Public interest Private interest
respectively, by the imposition of heavier punishment on Criminal and civil liability Civil liability ONLY
the accused and by an award of additional damages to the Punishment Indemnification
victim. (People vs. Catubig, 363 SCRA 621 [2001].) CANNOT be CAN be compromised
compromised or settled
(2) Oftentimes, the commission of a crime causes not only guilt of the accused must need only be proved by
moral evil but also material damage. From this principle, be proved beyond preponderance of evidence
the rule has been established that every person criminally reasonable doubt
liable for a felony17 is also civilly liable. Liability is subsidiary Liability is direct and
primary
No material damage (ex. contempt, insult to authority,
gambling, traffic violations etc.)= no civil liability Recovery of damages twice for the same act or omission
prohibited.
Reservation of Right to Recover Civil Liability
The same negligent act or omission causing damage may
only the civil liability arising from the offense charged is produce civil liability arising from a crime under Article
deemed instituted with the criminal action unless the 100 of the Revised Penal Code (supra.) or create an action
offended party waives the civil action, reserves his right to for quasi-delict under Article 2176 punishes not only
institute it separately, or institutes the civil action prior to reckless but also simple negligence.
the criminal action. There is no more need for a reservation
of the right to file the independent civil actions under Under Article 1157, quasi-delict and an act or omission
Articles 32, 33, 34 and 2176 of the Civil Code. punish- able by law are two different sources of
obligations. Inasmuch as civil liability co-exists with
The reservation and waiver referred to refer only to the criminal responsibility in negligence cases, the offended
civil action for the recovery of the civil liability arising party has the option between an action for enforcement of
from the offense charged. civil liability based on culpa criminal under Article 100 of
the Revised Penal Code and an action for recovery of
Scope of Civil Liability (RPC) damages based on culpa aquiliana under Article 2177.25
(see Art. 1161.)
This civil liability includes:
(1) Restitution; These two causes of action (ex delicto or ex quasi delicto)
(2) Reparation for the damage caused; and may be availed of subject to the caveat that the offended
party cannot recover damages twice for the same act or
(3) Indemnification for consequential damages. (Art. 104, omission or under both causes. Since these two (2) civil
Revised Penal Code.) liabilities are distinct and independent of each other, the
failure to recover in one will not necessarily preclude
recovery in the other.