OBLIGATIONS AND CONTRACTS
Obligation
- is a juridical necessity to give, to do or
not to do
Requisites of an Obligation
1. Juridical/legal tie- binds the parties to
the obligation, and which may arise from
either bilateral or unilateral acts of persons
2. Active Subject(in the obligation) -
oblige or creditor, who can demand the
fulfillment of the obligation
3. Passive subject (in the obligation) –
obligor or debtor, against whom the
obligation is juridically demandable and
4. Prestation – service or the object which
may constitute giving, doing, or not doing.
Sources of Obligation
1. Law
- it is not presumed
- civil law vs. special law
- no agreement is necessary.
EX. Parent and Child. A child can demand
to the parent to give them primary needs
according to Family Code.
2. Contracts
- law between contracting parties
- be compiled in good faith
- not contrary to law, morals, good
custom, public order, or public policy.
3. Quasi-contract
- lawful, unilateral, voluntary
(LUV) act
- no unjust enrichment
- no pre-existing of the minds
Kinds of quasi contract:
- negotiorum gestio (unauthorized
management) *duty to reimburse
- solution indebiti (undue payment)
*duty to return
5. Delicts
- every person who is criminally
liable is also civilly liable.
6. Quasi-delicts
- there must be a negligence
- there must be injury or damage to
another; and
- the cause of the damage is
negligence
Duties of Obligor and Obligee:
1. Object of the Obligation
Determinate thing:
A thing is determinate when it is
particularly designated or physical
segregated from all others of the same
class
Indeterminate/Generic thing:
When the object is designated merely by
its class or genus without any particular
designation or physical segregation from
 OBLIGATIONS AND CONTRACTS
all other of the same class. Indeterminate/Generic Things
Duties of a Debtor – Determinate Thing - ask that the obligation be compiled with
at the expense of the debtor
1. To deliver the thing itself
- if not delivered, the remedy is recission
2. To take care of the thing with the proper
- recover damages for the breach.
diligence of a good father of a family.
3. To deliver all accessions and accessories
of the thing.

4. To be liable for damages in case of

Rights of a Creditor in an Obligation
breach.
TO DO
Duties of a Debtor for Indeterminate a. oblige is entitled to have the thing done
thing in a proper manner by himself or by a third
1. To deliver the thing which is neither of person, at the expense of the obligor.
superior nor inferior quality. b. to demand what has been poorly done
2. To be liable for be undone
3. To be liable to reimburse all expenses c. to recover damages because of breach of
incurred by the creditor in case the latter the obligation. (can charge the debtor for
avails himself of the right to ask a third the damages)
person to deliver the generic thing at the Rights of a Creditor in an Obligation
expenses of the debtor. NOT TO DO
a. to have the thing undone at the expense
Rights of creditor in an Obligation TO
of the obligor
GIVE
b. to ask for damages
Determinate Things
- compel delivery of the things and all its
Contracts
accessions and accessories. Elements of a Contract:
- if not delivered, the remedy is rescission. 1. Consent
* Recission means you can cancel the 2. Subject Matter
contract. 3. Consideration
- recover damages for the breach can be: monetary or just kindness
- if lost or destroyed without the fault of
Stages of a Contract
the debtor before he has incurred delay,
1. Preparation / Negotiation
obligation is extinguished.
 OBLIGATIONS AND CONTRACTS
2. Perfection
3. Consummation

Principal Characteristics of a Contract

1. Autonomy of contracts
2. Mutuality of contracts
3. Obligatory force
4. Relativity of Contracts (would involve
several parties)

Classification of Contracts:
As to perfection or formation:
1. Consensual – perfected by agreement of
parties
2. Real – perfected by delivery
3. Formal – perfected by conformity to
essential formalities.
As to cause:
1. Onerous
2. Gratitous
As to importance or dependence of one
upon another:
1. Principal – contract may stand alone
(EX. Mortgage. A security for the
performance of a loan)
2. Accessory – depends on another
contract for its existence

As to obliged:
1. Unilateral – Only one party has an
obligation
2. Bilateral – Both parties are required to
render an obligation.