Article 1160

Obligations derived from quasi-contracts shall be subjected to the provisions of

Chapter 1, Title XVII of this Book. (n)
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 (n). Quasi-contract arises because of these acts which might
result to an unjust enrichment. There is unjust enrichment when a person unjustly
retains a benefit at the loss of another that is against the fundamental principles of
justice, equity and good conscience.
Examples of these acts that give rise to quasi-contract are Negotiorum
gestio and Solutio indebiti.
a. Negotiorum gestio
Negotiorum gestio is the voluntary administration of the property, business or affairs of
another, without his consent or authority that creates an obligation for reimbursement
for the necessary expenses the manager had spent.
Example: Juliet left her farm unattended for 1 week because she is having a vacation.
Romeo, a concerned lover in secrecy, noticed that Juliet has not been around and the
plants are slowly dying. Out of affection, Romeo cultivated the land, watered the plants,
buy fertilizers and placed fertilizers to the plants, removed the weeds and do all what a
farmer should do. Romeo spent necessary expenses which needs to be reimbursed in
order for Juliet not to unjustly enrich herself at the expense of Romeo. It is Juliet’s
obligation to reimburse him the necessary expenses he incurred.
b. Solutio indebiti
If something is received when there is no right to demand it, and it was unduly delivered
through mistake, the obligation to return it arises. (1895)
Example: Romeo commutes via jeepney on his way to school. Juliet, a jeepney driver,
receives 10 pesos from Romeo. Because of the handsomeness and cuteness of
Romeo, Juliet thought that Romeo is a student. So, she gave Romeo a change of 4
pesos rather than 2 pesos if no discount given. By solutio indebiti, Romeo has no right
to receive the excess 2 pesos. Therefore, Romeo is bound to return the excess 2 pesos
or else he will be unjustly enriching himself at the expense of Juliet.
It's just the same when you receive excessive change after buying from a store, so it is
your obligation to return the excessive change.
Can a party be held liable under a quasi-contract even if there was no formal
agreement or intention to create a contract?
Yes, a party can be held liable under a quasi-contract even if there was no formal
agreement or intention to create a contract. This is because quasi-contracts are based
on the principle of unjust enrichment, which means that if one party receives a benefit at
the expense of another party without a legal justification, the court may impose an
obligation on the benefiting party to compensate the other party for the value of the
benefit received.

Article 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 XVII of this Book,
regulating damages. (1092a)
This provision refers to civil obligations arising from crimes. Under the law “every person
criminally liable for a felony is also civilly liable”. The civil liability arising out of the
commission of crime includes: (1) restitution (2) reparation of damage caused and (3)
indemnification of consequential damages.