OBLIGATION AND CONTRACTS
which one party prosecutes another for the
GENERAL PROVISIONS
Article 1156 -
An obligation is a judicial necessity
to do or not to do.
Definition of obligation establishes the
unilateral act of debtor to give, to do or not
to do as a patrimonial obligation.
The debtor has the obligation while the
creditor has its rights.
KINDS OF LAW
Physical law
deals with Science.
Moral law
Right or wrong.
Natural law
injustice, equity and fairness.
Divine law
religion and faith.
State law
body of rules promulgated by law
makers for the common good.
Patrimonial Obligation
Those obligation with pecuniary
value in terms of money.
Accessible in terms of money with
financial equivalent.
Characteristic of Patrimonial obligation:
1. Represent and inclusively private
interest ( transaction between parties
involve only)
2. Create ties that are nature transitory
(temporary in nature, not forever
bound ) ( you are free once obligation is
full filled. )
3. Exist to make a power in case of non
fulfillment, the economic equivalent
obtain at the patrimony of the debtor ( if
debtor don’t fulfill, you can run after
financial equivalent )
Juridical necessity
Rights and duties arising from
obligation are legally demandable.
Required to do or perform under the
law.
Action - Ordinary suit in court of justice by
enforcement of protection for right of
prevention of a wrong.
Essential requisites of Obligation
Active subject - who has the power to
demand prestation known as ( credior or
obligee)
Passive Subject - Bound to perform the
prestation knows as the (debtor or obligor)
Object or Prestation - Consist in the act of
giving, doing or not doing something.
Vinculum Juris or Juridical Tie between two
subjects. It is legal to tie which constitute the
the source of obligation. (binds the debtor in
favor of the creditor until obligation is
fulfilled.)
Contract vs. Obligation
 Contract is only one of the sources of
obligation while obligation has other
sources like law, quasi contract, delicts
of quasi delicts
 Contract is bilateral obligation whole
obligation is a unilateral obligation
 All contracts are obligation while not all
obligation are contracts
LAW of Obligations arises from
1. Law. Obligations arise when imposed by
the law itself and cannot be presumed.
[1] For example, an obligation arising
from law is the payment of taxes.
2. Contracts. Obligations arise from the
stipulation of the parties; it has the force
of law and should be complied with in
good faith.[2] For example, a contract of
sale between a buyer and a seller in
which the obligation arises.
3. Quasi-Contracts. Certain lawful,
voluntary and unilateral acts give rise to
the juridical relation of quasi-contract to
the end that no one shall be unjustly
enriched or benefited at the expense of
another.[3] For example, X owed Y
Php1,000. By mistake, X paid Y
Php2,000. Y now has the obligation to
return the excess payment because
 there was a mistake in the payment. This
is called solutio indebiti.
4. Acts or Omissions Punishable by Law.
Responsibility for fault or negligence
under a quasi-delict (Art. 2176, CC) is
entirely separate and distinct from the
civil liability arising from negligence
under the penal code. But the plaintiff
cannot recover damages twice for the
same act or omission of the defendant.
[4] For example, under the Revised Penal
Code murder and theft are prohibited. If
you commit any of them, you will have
the obligation to pay damages and fines
or be put in jail.
5. Quasi-Delicts. Obligations arise from
damages caused to another through an
act or omission, there being fault or
negligence but no contractual relations
exist between the parties.[5] For
example, X broke the car window of Y
while playing basketball. In this case, X
now has the obligation to pay the
damage caused to Y due to X's act

Article 1158 refers to legal obligations or

obligations arising from law. They are not
presumed because 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, i.e., the Civil Code or special laws.