BUSLAW1-prelim (01)
when the buyer already delivered the purchased price.
OBLIGATIONS AND CONTRACTS
Title l-OBLIGATIONS
Chapter 1: GENERAL PROVISIONS
Provision of the Civil Code
Art. 1156. An obligation is a juridical necessity to give, to do or not to do.
You have obligations to give, to do or not to do
Example of obligation to give: if you are enrolled in a college, your obligation
is to pay your tuition fees/matriculation
On the part of college, they have the obligation to provide teach in
consideration with the tuition fees that you pay
Example of obligation not to do: if you are in contract you don’t go against
the contract, you should not be doing acts contrary to the policy of the
school.
Another example: a and b entered in a contract in a lease, a is the lessor,
and b is the lessee, the contract is a lease of a one door apartment. The
lessor has to give/transfer the possession of the object of the contract which
is one door apartment in favor of maria. Maria on the other has to pay the
rental, advance deposit as agreed upon/during the effectivity of lease.
There are obligations to do and not to do in contract, like keeping premises
safe for everything, safe of living should not be destroyed, distracted and be
remained as residential place.
Example: contract of sale, on the part of the seller, has to give/deliver the
object of the contract of sale. On the part of the buyer has to pay the
purchase price.
Juridical necessity (juridical tie between the contracting parties or between
the obligor and the oblige) obligor is the debtor, the oblige is the creditor.
e.g. contract of loan, the money that is extended for loan is delivered to
borrower, the borrower has the obligation to pay amount borrowed. If
there would be nonpayment it could be on the part of the lender, it could
be filing an action for collection.
Every party has the right to bring an action in court if cause of action is not
met.
What does juridical necessity mean in the definition of obligation ?
will you cite examples of obligations to give, to do, or not to do.
Discussion:
Nature of Obligations Under the Civil Code
 Civil Obligations and Natural Obligations
Civil obligations- obligations rising from a law from contracts and the other
source of obligation that they are actionable in court
Natural obligation- voluntary performance that there will be no more write
to file an action in court
Essential Requisites of an Obligation
 A passive subject called the debtor or obligor
 An Active subject called creditor or obligee
 Object or prestation which is the subject matter of the obligation.
 A juridical or legal tie also called the efficient cause that which binds
the parties to the obligation
Debtor or obligor- in a contract of loan the borrower is the debtor oblige to
pay the amount borrowed
Creditor or obligee- in a contract of loan is the one that lend the money, the
one that will ask for the payment, collect
Object or prestation- subject matter of the obligation, in a contract of sale
for example, involves a parcel of land, the object of the contract is the
parcel of land, delivery of possession and ownership on the part of the seller
juridical or legal tie also called the efficient cause that which binds the
parties to the obligation.
Form of Obligations
 Oral or in writing
 Partly oral and partly in writing
Kinds of obligations according to the subject matter
 Real Obligations and Personal Obligations
 Real obligations is that in which the subject matter is a thing
 Personal obligation is that in which the subject matter is an act
to be done or not to be
o Positive personal obligations and negative personal
obligations
o Illustrative example: right of way
In a contract of sale, the subject matter there is a thing that is why it’s a real
obligation
Personal obligation, example to sing to perform to dance
Provision of the Civil code
Art. 1157. Obligations arise from:
1. Law (these are provisions of law, these obligations are expressed
provisions of law as obligation, like the constitution mandates the obligation
to be a law abiding citizen to each and every citizen of the Philippines, even
non Philippine nationals should abide by the law here in the Philippines
when they are in jurisdiction of the Philippine.
Another example husband and wife, there is what we call family code of the
Philippines, the relationship between husband and wife are govern by the
provisions of law, that law lay down the obligation of the husband and wife
to one another to observe fidelity faithfulness love respect and support to
one another, that if there will be violations by one of the contracting parties
in a contract of marriage, the law provided for available remedies to the
agreed party.
Obligation to pay taxes, is also an obligation provided by law under the
national internal revenue code,
Obligation to pay the right wages, under the rules and regulations
promulgated by the department of labor per se to a law, the labor code of
the Philippines is an obligation on the part of employer
2. Contracts;
Obligations that are agreed upon by the parties, consent, consideration of
both parties, contract is perfected both Parties are duty bound.
e.g., contract of sale, agreements, stipulations, as to the obligations of each
contracting parties in contract, obligation of the lessor and the lessee in a
contract of lease, the obligation of buyer and the seller, in a contract of
employment the obligation of the employer and employee. (contract of
enrollment)
3. Quasi-contracts;
There is a voluntary management of the property of another person, and
that voluntary management of the property of another person brought
benefits in favor of the other party
You received something or an amount that was delivered to you by mistake
you have the obligation to return under the principles of quasi-contracts
Solutio indedbiti
4. Acts or omissions punishable by law; and (there’s an INTENT)
Refers to the commission of crimes, example juan killed pedro, he has
committed a crime of murder or homicide, the agreed party there is the
people of the Philippines, pedro there has the obligation not only to pay for
the civil aspect of killing but has to be convicted so that he will be in prison.
Crime of rape, parasite, physical injuries

Those are crimes punishable by law, revised penal code and other penal
laws or special penal laws
Contractual Obligations

 What is a contract? A contract is a meeting of minds between two

5. Quasi-delicts. (1089a) (injury caused, damaged caused by reason of
negligence or lacked of imprudence) intent is absent but caused by
negligence
Example, a bus while negotiating Quirino highway bumped a pedestrian
infront of starmall, while its not intended the operator and driver has the
obligation under quasi delicts
Provision:
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 foreseen, by the provisions of this
Book. (1090)
(2) persons whereby one binds himself, with respect to the others
to give something or to render some service (1305)
 Binding Force
 Valid Contract (Essential Elements)
 Requirement of a valid contract
 Breach of Contract
 Compliance In Good Faith
Service maintenance agreement, mutual obligation both parties shave the
obligation to give up to deliver
Meeting of the minds means there is an offer, unconditionally accepted, it’s
not subject to any conditioned, the acceptance is not subject to any
condition, once its entered into it has a binding force between the
contractive parties.
Essential elements of a valid contract is consent, the contracting parties are
not compelled to give their consent by violence, intimidation, force or by
mistake

There are provisions of law enacted by the legislator that really provided If there will be breach of contract, the other party wasn’t agreed can go to
the obligations. court for a recourse, that’s why the agreement must be complied in good
faith by the contracting parties.
Obligations derived from law cannot be presumed because they are
expressly determined by the provisions of the law or by special laws, and
the provisions of the law regulates them.
Provision:

Art. 1160. Obligations derived from quasi-contracts shall be subject to

Discussion On Obligations Arising from Law
the provisions of Chapter 1, Title XVII, of this Book .(n)
 Do obligations arising from law refer to legal obligations? another title for civil code Philippines

 Will you cite examples of obligations arising from law. (i.e. Labor two well known quasi contracts
Code of the Philippines; National Internal Revenue Code; Family
 Negotiorum gestio is the voluntary management of the property or
Code of the Philippines
affairs of another without the knowledge or consent of the latter
-Yes, affirmative, and those are legal obligations under the
 Solutio indebiti - is the juridical relation which is created when
provisions of the family code of the Philippines
something is received when there is no right to demand it and it was
Labor law- laws that regulates employment, the employer-
unduly delivered through mistake.
employee relationship. You cannot beyond the provisions of the
law, it should be within the dictates of the law.
The same with national internal revenue code, when it comes to
Negotiorum gestio
obligations of each and every person, natural or juridical to pay the
internal revenue taxes is expressly provided by law One of the important element is voluntary management, without
knowledge, and the benefits accruing to the person whose property was
manage
Provision:
Example, the owner of two agricultural land are joining its other neighbors,
Art. 1159. Obligations arising from contracts have the force of law
Neighbor 1 and 2, neighbor 2 is out of the barangay went somewhere, the
between the contracting parties and should be complied with in good palay is due for harvest now on the part of neighbor 1, when he harvested
palay he also harvested the palay of neighbor 2 but there’s a separation of
faith.
harvest of neighbor 2. If not taken care typhoon will submerge it.
Example the agreement/stipulation between the seller and the buyer have
There’s an obligation on the part of neighbor 2 to reimburse the expenses
to be complied with because if it will not be complied with by anyone of the
incurred by neighbor 1. To prevent loss due to typhoon which is anticipated
contracting parties in the contract there could be an action by the agreed
to suffered by neighbor 2.
party, that’s what the force of law mean.

Contract for the supply of goods of the manufacturer to the retailer, it

should be on time for the part of the retailer, should pay the purchased
price on time in accordance for the agreement to supply.
Contract for the maintenance services, like elevator/escalator companies,
the agreement of the parties will govern when it comes to maintenance
services when, how the service fee, whenever there will be breaches of the
staff in the premises. The agreements that will govern the relationship of
the parties.
Example you are enrolled and you are unruly, or either the school does not
provide teachers, did not provide education that you are paying for, this are
example of stipulations agreements from obligations arising from contracts,
what will govern are the stipulations or the agreement
Solutio indebiti
You have a family working abroad, your family member working abroad sent
you dollars, went to a bank remitted in you favor, the bank clerk committed
an error in appreciation amount committed, by the time it will be
discovered that there was an error on the amount given to you, and there is
already a demand of return you have the obligation to return. The delivered
to you were through mistake. The excess amount was received by you when
you have no right to demand it. You have the right to return it, even if its
not demanded you have the right if it came to your knowledge that the
amount given to you has exceeded that is also in accordance with the
principle that no one shall unjustly enriched himself at the expense of other.
Provision: Chapter 2 NATURE AND EFFECT OF OBLIGATIONS
Art. 1161 Civil obligations arising from criminal offenses shall be

governed by the penal laws, subject to the provisions of Article 2177,

and of the pertinent provisions of Chapter 2, Preliminary Title, on

Human Relations, and of Title XVIll of this Book, regulating damages

Every person criminally liable is also civilly liable. The criminal liability will be
imprisonment, there will be also corresponding civil liability.

Raping is criminally liable and also civilly liable for moral damages

Tours and damages, which will give you more detailed understanding of
damages and under provision of law

Every person is bound to observe honesty and good faith in the exercise of
rights

And all crimes are defined, specifically under revised penal code and there
are special laws now penal in nature.

Every person criminally liable is also civilly liable

Art. 1162. Obligations derived from quasi-delicts shall be governed by

the provisions of Chapter 2, Title XVIl of this Book, and by special laws,

example of quasi delict an accident happened in a pedestrian accidentally

hit by bus by negligence driver.

Liability under the driver even if he has no intention

If there is an intent to kill, like if a driver hit a pedestrian, he decided to kill,

it exceeds quasi delict and becomes a crime

 Art. 2176- A quasi-delict is an act or omission by a person

(tortfeasor) which causes damage to another in his person, property

or rights giving rise to an obligation to pay for the damage done,

there being fault or negligence but there is no pre-existing contractual

relation between the parties

 Requisites of quasi-delict
 Crime distinguish from quasi-delict

Example if you are a passenger and a bus cause an accident it breaches pre-
existing contractual relation because the bus should safely bring passengers
to their destinations