OBLIGATIONS

Chapter 1 - General Provisions ( Art. 1156-1162)

Article 1156. Obligation is a juridical necessity to give, to do or not to do.
1157. Sources of Obligations:
1158. Law (Ex lege)
1159. Contracts (Ex Contractu)
1160. Quasi-Contracts (Quasi- Contractu)
Negotiorum gestio – (unauthorized management) art. 2144
Solutio indebiti – (undue payment) art. 2154
1161. Act or Omissions Punished by law. (Ex Maleficio or Ex Delicto)
1162. Quasi- Delicts or Torts or culpa aquilana (Ex Quasi-Delicto or Ex Quasi-Maleficio)
An act of negligence which causes damage to another without pre-existing
contractual relations.
Requirements: there must be fault or negligence attributable to the person charged
There must be damage or injury.
There must be proximate cause
Damnum absque injuria - damage without legal injury

Chapter 2 - Nature and Effects of Obligations

Article 1163. Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good family, unless the law or the stipulation of the parties requires another
standard of care.
1164.Creditor has a right to the fruits from the time the obligation to deliver arises.
1165. (1) Delivery of Determinate thing, may compel the debtor to make delivery
(2) Generic obligation be complied at the expense of the debtor (3) Obligor Delays, promise
to deliver to two or more person, he shall be responsible for fortuitous events.
1166. Obligation to give Determinate thing- includes delivering all its accessions and
accessories.
1167. If a person obliged to do something Fails to do it, shall be executed at his cost.
1168. Not doing shall also undone at his expense.
1169. Incur Delay from the time obligee judicially or extra judicially demands.
Demand is not necessary
1) When obligation or law provides
2) When time is of the essence of the contract.
3) When obligor has rendered it beyond his power
Mora solvendi-(debtor) ex re (real obli.) ex persona (personal obli)
Mora accipiendi (creditor)
Compensatio morae (both parties)
1170. Guilty of Fraud, Negligence, Delay or contravene of tenor are liable for damages.
1171. Fraud or Dolo is demandable in all obligations.
1172. Negligence or Culpa- liability regulated by courts.
Dolo distinguished by culpa, distinction 3 kinds of culpa
 1173. If contract does not state diligence needed, Diligence of a good father of a family
shall be required.
1174. Fortuitous Events - no liability, except expressly declared by law or stipulations,
assumption of risk.
1175. Usurious governed by special laws.
1176. (1) Receipt of principal no reservation of interest presumes interest is paid (2) Later
installment no reservation of prior installment presumes such installment is paid.
1177. Right of creditors
1178. Transmissibility of Rights
Section 1- Pure and Conditional Obligations
1179. Every obligation whose performance does not depend upon a future or uncertain
event, or a past event unknown to the parties, is demandable at once.
Every obligation whose performance does not depend upon a future or uncertain event, or
upon a past event unknown to the parties, is demandable at once.
1180. Debtor to pay when his means permit. Subject to Art. 1197
1181. Suspensive-acquisition of right; resolutory- extinguishment
1182. Potestative - sole will of debtor if suspensive void if resolutory valid ; Casual-
chance/will of 3rd person
1183. Impossible/illegal; Divisible-not affected by impossible is valid.
1184. Positive- extinguish as the time expires or indubitable.
1185. Negative- event will not happen at a determinate time arrive.
No time fixed- deemed fulfilled.
1186. If Obligor voluntarily prevents fulfilment, condition deemed fulfilled.
1187. Effects of fulfillment of suspensive. GR: Retroact to the day was constituted; Exp:
fruits or interests & prescription- from day it was fulfilled.
1188. (1) Creditor may bring actions for preservation of his right.
(2) Debtor may recover- paid by mistake in case of suspensive.
1189. When the conditions have been imposed with the intention of suspending the efficacy of an obligation to give, the
following rules shall be observed in case of the improvement, loss or deterioration of the thing during the
pendency of the condition:
(1) If the thing is lost without the fault of the debtor, the obligation shall be extinguished;
(2) If the thing is lost through the fault of the debtor, he shall be obliged to pay damages; it is understood that
the thing is lost when it perishes, or goes out of commerce, or disappears in such a way that its existence is
unknown or it cannot be recovered;
(3) When the thing deteriorates without the fault of the debtor, the impairment is to be borne by the creditor;
(4) If it deteriorates through the fault of the debtor, the creditor may choose between the rescission of the
obligation and its fulfillment, with indemnity for damages in either case;
(5) If the thing is improved by its nature, or by time, the improvement shall inure to the benefit of the creditor;
(6) If it is improved at the expense of the debtor, he shall have no other right than that granted to the
usufructuary.

1190. (1) Resolutory- fulfillment, shall return what they received.

(2) incase of loss, deterioration, or improvement, applied to the party who is bound
to return
(3) court shall decide ART. 1187
1191. (1) Power to rescind is Implied in reciprocal if one does not comply (2) fulfillment
and rescission w/damages
1192. Both committed breach: liability of 1 st infractor shall be equitably tempered by
courts. If no 1st infractor liability deemed extinguished each bear his own damages.
Section 2 - Obligations with a Period
1193. Obligations for whose fulfillment a day certain has been fixed, shall be demandable only when that day comes.
Obligations with a resolutory period take effect at once, but terminate upon arrival of the day certain.
A day certain is understood to be that which must necessarily come, although it may not be known when.
If the uncertainty consists in whether the day will come or not, the obligation is conditional, and it shall be
regulated by the rules of the preceding Section.

Req. must refer to future, must be certain, must be physical and legally possible
1194. Loss, Detorioration/Improvement of the thing before arrival of the certain day.
(1189)
1195. Paid before arrival, due and demandable may be recovered w/fruits and interests.
1196. GR: Term/Period is for benefit of both parties(interest); Exp: in favor of one.
1197. (1) No fixperiod but intended to court may fix duration
(2) court fix duration, if depends upon will of debtor
(3) if parties set a period court can fix a period, once fix by court cannot be
changed
1198. debtor lose right to make use of the period;
1. debtor becomes insolvent; unless he gives guaranty or security for the debt.
2. he does not furnish to creditor he’s guaranties and securities promised
3. debtor impaired guaranties and securities, or by fortuitous event they
disappear, unless he immediately new ones equally satisfactory
4. debtor violates any undertaking
5. debtor attempts to abscond
Section 3 – Alternative Obligation
1199. person alternatively bound by different prestations shall completely perform one of
them. Creditor cannot be compelled to received part of one and part of the other.
1200. right of choice of debtor unless given to creditor, debtor have no right to choose
those impossible, unlawful, not object of obligation prestation.
1201. choice no effect, unless communicated (implied, express)
1202. debtor lose right of choice, if only one prestation is practicable.
1203. if by creditors acts, debtor cannot make a choice according to the terms, debtor
may rescind with damages.
1204.if through debtors fault all alternative lost or compliance becomes impossible,
creditor have right to indeminity for damages
(2) indemnity basis value of the last thing disappeared.
(3) damages may also be awarded
1205. when choice expressly given to creditors, obligation cease to be alternative from day
selection communicated to debtor.
Responsibility of debtor:
(1) If one thing is lost by fortuitous event, he delivers what creditor choose from
remaining.
(2) If lost through debtor fault, creditor may claim to subsisting or price of what lost, with
damages
(3) If all lost through his fault, creditor choose price of any of them with damages.
Same with obligation to do or not to do.
1206. one prestation agreed upon but obligor may render substitution, (facultative)
Loss or deterioration through debtor negligence of substitute does not render him liable, but
once substitution has been made obligor is liable.
Distinction alternative and Facultative.
Section 4 joint and solidary obligation
1207. Joint obligation (solidary only when law, stipulation, nature requires)
1208. presumption that obligation is joint.
Debt divided into as many shares as there are creditors or debtors.
Debt will be distinct from one another
1209. indivisible joint obligation.
1210. indivisibility does not give rise to solidarity. Nor does solidarity of itself imply
indivisibility
1211. solidarity may exist despite different terms or conditions
1212. solidary creditors may do whatever may be useful to others, but not anything
prejudicial
1213. solidary creditor cannot assign his rights without consent of others.
1214. debtor may pay any one of solidary creditors, except demand is made by either one
of them judicial or extra judicial, payment should be made to him.
1215. novation, compensation, confusion made by solidary creditors/debtors extinguish
obligation
Creditor who executed this act, as well as he who collects the debts, liable to the others
for the share in the obligation corresponding to them.