TITLE I: OBLIGATIONS

(Arts. 1156-1304, Civil Code)

CHAPTER 1: General Provisions

Art. 1156. An obligation is a juridical necessity to give, to do, or not to do. (n)

1) Juridical necessity – enforceable in court in case of non-compliance

(enforceability); if not enforceable, only a natural obligation
2) Essential requisites of a civil obligation:
a. Passive subject – debtor or obligor
b. Active subject – creditor or obligee
c. Object or prestation – subject matter
d. Juridical or legal tie – that which binds the parties or efficient cause
3) Forms – oral, in writing, partly oral or in writing
 General rule – no form is required for validity except for specific contracts i.e. sale of real
property
4) Kinds according to Subject Matter:
a. Real obligation - obligation to give
b. Personal obligation- obligation to do or not to do
b.1. Positive personal obligation – to do/ to render service.
b.2. Negative personal obligation – not to do/ not to give.

Art. 1157. Obligations arise from

a) Law
b) Contracts
c) Quasi-contracts
d) Crimes/delicts
e) Quasi-delicts
5) Sources of Obligations
a. Law – are not presumed; only those expressly determined in this code or in
special laws are demandable (Art. 1158). eg. Payment of taxes
b. Contracts – stipulation of parties; law between the parties; characteristic of
compellability (Art. 1159)
c. Quasi-contracts – lawful, voluntary and unilateral acts which are enforceable to
the end that “no one shall be unjustly enriched at the expense of another”. 1.
Solutio indebiti and 2. negotiorum gestio
d. Crimes/Delicts – “every person criminally liable is also civilly liable”
e. Quasi Delicts – damages cause by act or omission (fault or negligence); no
contractual relationship between the parties
 Art. 1158. Obligations derive 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)

 An employer has no obligation to furnish free legal assistance to his employees.

 A private school has no legal obligation to provide clothing allowance to its teachers.
 A person who wins money in gabling has the duty to return his winnings to the loser (Art.
2014).

Art. 1159. Obligations arising from contracts have the force of law between the contracting parties
and should be complied with in good faith.

 Contractual obligations- meeting of minds between 2 or more persons.

 (1) Binding force – the same binding effect of obligations imposed by laws.
 (2) Requirement of a valid contract- not contrary to law, morals, good customs, public
order, and public policy.
 In the eyes of law, a void contract does not exist.
 (3) Breach of contract- a party fails or refuses to comply, w/o legal reason or justification.
 Compliance in good faith- performance in accordance w/ terms of contract w/ sincerity
and honesty.
Art. 1160. Obligations derived from quasi- contracts shall be subject to the provisions of Chapter I,
Title XVII of this Book. (n)

 Quasi-contract – lawful, voluntary and unilateral acts by virtue

 (1) Negotiorum gestio – voluntary management of the property or affairs of another w/o the
knowledge of the latter (Art. 2144).
 (2) Solution indebiti – something is received when there is no right to demand it and was
duly delivered through mistake (Art. 2154).
Art. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provisions of Art. 2177, and of the pertinent provisions of Chapter 2, Preliminary
Title, on Human Relations, and of Title XVII of this book, regulation damages. (1092a)

 Civil liability arising from crimes:

(1) Civil liability in addition to criminal liability
(2) Criminal liability w/o civil liability
(3) Civil liability w/o criminal liability
 Scope of civil liability:
(1) Restitution
(2) Reparation for the damage caused
(3) Indemnification for consequential damages (Art. 104, Revised Penal Code)
Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2,
Title XVII of this Book, and by special laws. (1093a)

 Quasi-delict – act/omission by a person (tortfeasor) which caused damage to

another in his person, property, or rights
CHAPTER 2: Nature and Effect of Obligations

Art. 1163. Every person obliged to give something is also obliged to take care of it with the proper
diligence of a good father of a family, unless the law or the stipulation of the parties requires
another standard of care. (1094a)

6) 2 Kinds of Object in an obligation to give

a. Specific or determinate - particularly designated or physically segregated from
others of the same class
b. Generic or indeterminate - cannot be pointed out with particularity

7) Duties of debtor in obligation to give determinate things

(1) Preserve the thing – only ordinary care or diligence of a good father of a family
unless another standard of care is stipulated.
a. Diligence of a good father of a family – ordinary care of ordinary person
b. Another standard of care – law/ stipulation provides another, it must prevail.
c. Factors to be considered – diligence required depends on nature of obligation
 General rule – debtor is not liable if his failure to preserve the thing is due to force
majeure (fortuitous event)
 Fortuitous event – an event which cannot be foreseen, or though foreseen is
inevitable i.e. Acts of man like robbery and Acts of God like earthquake
d. Reason for debtor’s obligation – debtor must exercise diligence to insure that
the thing to be delivered would subsist the same condition.

(2) Deliver the fruits of the thing (Art. 1164)

 Creditor has a personal right to the fruits at the time obligation of debtor arises.
 Creditor acquires real rights only upon delivery; Delivery transfers ownership.

(3) Deliver the accessions and accessories (Art. 1166)

 Accessions are the fruits of a thing or improvements upon a thing i.e. trees on land
 Accessories are things joined to the thing for embellishment, better use or
completion i.e. car sound system

(4) Deliver the thing itself

 Creditor can compel debtor to make delivery or specific performance (Art. 1165)
 Debtor is liable for damages if there is (a) delay and (b) double promise to deliver,
even if a fortuitous event caused the damage.

(5) Answer for damages in case of non-fulfillment/breach (Art. 1170)

8) Duties of debtor in obligation to give a generic things

a. To deliver a thing which is of the quality intended by the parties taking into
consideration the purpose of the obligation and other circumstances (Art. 1246.)
b. To be liable for damages in case of fraud, negligence, or delay, in the performance of
his obligation, or contravention of the tenor thereof. (Art. 1170.)
Art. 1164. The creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. However, he shall acquire no real right over it until the same has been delivered to him.
(1095)

9) 3 Kinds of fruits
a. Natural fruits – spontaneous products of the soil, and products of animals
b. Industrial fruits – produced by lands through labor
c. Civil fruits – derived by virtue of a juridical relation i.e rentals
 Personal right – power to demand from another, as a definite passive subject.
 Real right – interest over a specific thing w/o definite passive subject.

Art. 1165. When what is to be delivered is a determinate thing, the creditor, in addition to the right
granted him by Article 1170, may compel the debtor to make the delivery. If the thing is
indeterminate or generic, he may ask that the obligation be complied with at the expense of the
debtor. If the obligor delays, or has promised to deliver the same thing to two or more persons who
do not have the same interest, he shall be responsible for any fortuitous event until he has effected
the delivery. (1096)

Article 1171. Responsibility

arising from fraud is demandable
in all obligations. Any waiver of
an
action for future fraud is void.
(1102a)
Article 1172. Responsibility
arising from negligence in the
performance of every kind of
obligation is
also demandable, but such liability
may be regulated by the courts,
according to the circumstances.
(1103)
Article 1173. The fault or
negligence of the obligor consists
in the omission of that diligence
which is
required by the nature of the
obligation and corresponds with
the circumstances of the persons,
of
the time and of the place. When
negligence shows bad faith, the
provisions of articles 1171 and
2201, paragraph 2, shall apply.
If the law or contract does not state
the diligence which is to be
observed in the performance, that
which is expected of a good father
of a family shall be required.
(1104a)
Article 1174. Except in cases
expressly specified by the law, or
when it is otherwise declared by
stipulation, or when the nature of
the obligation requires the
assumption of risk, no person shall
be
responsible for those events which
could not be foreseen, or which,
though foreseen, were
inevitable. (1105a)
Article 1175. Usurious
transactions shall be governed by
special laws. (n)
Article 1176. The receipt of the
principal by the creditor without
reservation with respect to the
interest, shall give rise to the
presumption that said interest has
been paid.
The receipt of a later installment
of a debt without reservation as to
prior installments, shall likewise
raise the presumption that such
installments have been paid.
(1110a)
Article 1177. The creditors, after
having pursued the property in
possession of the debtor to satisfy
their claims, may exercise all the
rights and bring all the actions of
the latter for the same purpose,
save those which are inherent in
his person; they may also impugn
the acts which the debtor may
have done to defraud them. (1111)
Article 1178. Subject to the laws,
all rights acquired in virtue of an
obligation are transmissible, if
there has been no stipulation to the
contrary. (1112)
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