Art 1156

An obligation is a juridical necessity to give, to do Contracts

or not to do. Arise from the stipulation of the parties

Obligation Quasi Contract

a juridical necessity to give, to do or not to do. Voluntary and unilateral acts

Damages Crimes
The sum of money given as compensation for the When they arise from a civil liability which is the
injury or harm suffered by the creditor. consequence of a criminal offense.

Civil obligations Quasi delicts

Obligations which give to the creditor or obligee a When they arise from damage caused
right under the law to enforce their performance in to another through an act or omission, there being
courts of justice. fault or negligence,
but no contractual relation exists between the
Natural obligation parties.
Not being based on positive law but on equity and
natural law. Art 1158
Article where the obligations derived from law are
Right not presumed
A power which a person has under the law
Art 1159
Wrong Article where obligations arising from contracts
(Cause of action) is an act or omission of one
party in violation of the legal right of another Contracts
Meeting of minds between 2 person whereby one
Injury binds himself with respect to the other.
Wrongful violation of the legal right of another
binding force
Passive Obligations arising from contracts have the force
Person who is bound to the fulfillment of law between the contracting parties; contract
cannot be valid if it is against the law.
Active
Person who is entitled to demand the fulfilment breach of contract
An unexcused failure to perform according to the
prestation terms of a contract.
Subject matter of the obligation
Art. 1160
Legal tie Obligations derived from quasi-contracts shall be
Also known as efficient cause; that which binds subject to the provisions of Chapter
the parties or connects the parties to the 1, Title XVII, of this Book.
obligation
quasi contract
Real obligation A juridical relation resulting from lawful, voluntary,
Obligation to give; which the obligor must deliver and unilateral acts by virtue.
to the oblige
negotorium gestio
Personal Obligation The voluntary management of the property or
obligation to do or not to do; an act tot be done or affairs of another without the knowledge or
not to be done consent of the latter

Positive personal obligation Solutio indebiti

To do or to render service Juridical relation which is created when
something is received when there is no right to
Negative personal obligation demand it and it was unduly delivered through
obligation not to do mistake

Law
Imposed by the law itself
Art 1161
Article where civil obligations arising from criminal
offenses shall be governed by the penal laws.
civil liability
Restitution
Reparation for the damages
Indemnification for consequential damages
Art. 1162
Article where obligation derived from quasi-delicts
Quasi delicts
When they arise from damage caused
to another through an act or omission, there being
fault or negligence,
but no contractual relation exists between the
parties.
Art 1163
Article where 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.
Specific
Particularly designated or physically segregated
others of the same class
generic
When it refers only to a class or genus to which it
pertains and cannot be pointed out with
particularity.
Art 1164
Article where 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.
Natural Fruits
The spontaneous products of the soil and the
young and other products of animals
Industrial fruits
produced by lands of any kind through cultivation
or labor
Civil fruits
are those derived by virtue of a juridical relation.
perfection
Birth of the contract
personal rights
Right or power of a person to demand from
another
Real Right
Right or interest of a person over a specific thing
Art 1165
Article where 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.
Art 1166
Article where The obligation to give a determinate
thing includes that of delivering all its accessions
and accessories, even though they may not have
been mentioned.
accession
Are the fruits of the thing or additions to or
improvement upon a thing
accessories
Things joined to or included with the principal
thing for the latter's embellishment better use or
completion
Art 1167
If a person obliged to do something fails to do it,
the same shall be executed at his cost.
Art 1168
When the obligation consists in not doing
Art 1169
Those obliged to deliver or to do something incur
in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment
of their obligation.
delay
Failure to perform an obligation on time
Ordinary delay
Merely failure to perform an obligation on time
Legal delay or default or mora
The failure to perform an obligation on time which
failure constitutes a breach of the obligation.
Mora solvendi
Delay on the part of the debtor to fulfill his
obligation
Mora accipiendi
Delay on the part of the creditor
Compensatio morae
Delay of obligors in reciprocal obligations
Fortuitous Event
Any event which could not be foreseen, or which
though foreseen are inevitable
 Industrial Fruits
Acts of man Produced by lands of any kind through cultivation
Actions done without knowledge or will (e.g., war, or labor
fire, murder, and robbery)
Civil Fruits
Acts of God Those derived by the virtue of a juridical relation.
They refer to what is called majeure or those
events which are totally independent will of every Real Right
human being. Enforceable against the whole world.

Ordinary fortuitous events To give specific thing;

Events which are common and which the To give generic thing
contracting parties could reasonably foresee. Real Right

Extra ordinary fortuitious events Personal Right

Uncommon and which the contracting parties Enforceable only against a definite passive
could not have reasonably foreseen subject.

Art 1157 Positive (To do);

Obligations arise from: Negative (Not to do)
Personal Right
(1) Law;

(2) Contracts; Article 1165

(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts. (1089a)
Article 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.
Diligence of a good father of a family
Ordinary care that an average person exercises
in taking care of his property
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.
Specific thing
Determinate; particularly designated or physically
segregated from all other of the same class;
identified by individuality.

Another standard of care Generic thing

Slight or extraordinary diligence Indeterminate; class or genus to which it pertains
cannot be pointed out with particularity
Article 1164
The creditor has a right to the fruits of the thing Limited Generic Thing
from the time the obligation to deliver it arises. When the generic objects are confined to a
However, he shall acquire no real right over it particular class.
until the same has been delivered to him.
Article 1166
Natural Fruits; The obligation to give a determinate thing
Industrial Fruits; includes that of delivering all its accessions and
Civil Fruits accessories, even though they may not have
Kinds of Fruits been mentioned.

Natural Fruits Accessions

Are the spontaneous products of the soil, and Additions to or improvement upon a thing, either
other products of animals. naturally or artificially
Accessories
Things joined to or included with the principal
thing for the latter's embellishment better use or
completion.
Article 1167
If a person obliged to do something fails to do it,
the same shall be executed at his cost.
This same rule shall be observed if he does it in
contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has
been poorly done be undone.
Positive Personal Obligation
Obligation to do or to render service
Article 1168
When the obligation consists in not doing, and the
obligor does what has been forbidden him, it shall
also be undone at his expense.
Negative Personal Obligation
Obligation not to do
Specific Performance
The performance of the obligation itself; applies
only in obligation to give.
Equivalent Performance
Right to claim damages (in either performance or
rescission); applies to obligations to give, to do, or
not to do.
Substitute Performance
Someone/something else performs at the
expense of the debtor; applies to the obligation to
give a generic thing, to do not very personal, and
not to do.
Article 1169
Those obliged to deliver or to do something incur
in delay from the time the obligee judicially or
extrajudicially demands from them the fulfillment
of their obligation.
However, the demand by the creditor shall not be
necessary in order that delay may exist:
(1) When the obligation or the law expressly so
declare; or
(2) When from the nature and the circumstances
of the obligation it appears that the designation of
the time when the thing is to be delivered or the
service is to be rendered was a controlling motive
for the establishment of the contract; or
(3) When demand would be useless, as when the
obligor has rendered it beyond his power to
perform.
In reciprocal obligations, neither party incurs in
delay if the other does not comply or is not ready
to comply in a proper manner with what is
incumbent upon him. From the moment one of
the parties fulfills his obligation, delay by the other
begins.
Mora
Delay
Delay
Failure to perform or deliver on time.
Mora Accipiendi;
Mora Solvendi;
Compensatio Morae
Kinds of Delay
Mora Accipiendi
Delay on the part of the creditor to accept the
performance of the obligation.
Mora Solvendi
delay on the part of the
debtor to fulfill his obligation either to give (Ex re),
or to do (Ex persona).
Compensatio Morae
Delay of the parties in reciprocal obligations;
effect: as if there is no default.
Ejectment;
Consignment
2 Cases where Extrajudicial Demand is
necessary before filing a civil suit
Obligation is demandable and liquidated;
Delay in the performance by the debtor;
Creditor makes an extrajudicial or judicial demand
requiring payment or performance of the
obligation;
Debtor fails to comply such demand
Requisites for Default
Obligation is demandable and liquidated;
Delay in the performance by the debtor;
Creditor makes an extrajudicial or judicial demand
requiring payment or performance of the
obligation;
Debtor fails to comply such demand
Effects of Mora Accipiendi
Creditor shall bear the risk of loss;
Expenses incurred by debtor for the preservation
of the thing after the delay shall be charged to the
creditor;
If the obligation has interest, debtor shall not have
obligation to pay the same from the time of the
delay;
Creditor becomes liable of damages
Moral Damages
Includes physical suffering, mental anguish, fright,
serious anxiety, besmirched reputation, wounded
feelings, moral shock, social humiliation, and
similar injury.
Exemplary/Corrective Damages
Damages imposed to set good example for the
public
Nominal Damages
A small amount of money awarded to a plaintiff in
a lawsuit to show he/she was right, but suffered
no substantial harm.
Temperate/Moderate Damages
Are more than nominal but less than
compensatory damages, may be recovered when
the court finds that some pecuniary loss has been
suffered but its amount cannot, from the nature of
the case, be proved with certainty.
Actual/Compensatory Damages
Damages that repay the wronged party for the
actual loss and expected gains
Liquidated Damages
An amount, stipulated in the contract, that the
parties to a contract believe to be a reasonable
estimation of the damages that will occur in the
event of a breach.
Article 1171
Responsibility arising from fraud is demandable in
all obligations. Any waiver of an action for future
fraud is void.
Kinds of Fraud
Dolo
Fraud
Dolo Causante;
Dolo Incidente;
Fraud in Performance;
Future Fraud;
Past Fraud
Dolo Causante
(Casual fraud) Fraud used by one of the parties to
a contract in securing the consent of the other
party
Dolo Incidente
(Incidental Fraud) Fraud during the
implementation of a contract.
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.
Culpa
Negligence
Negligence
Omission of diligence
Bad Faith
A state of mind affirmatively operating with furtive
design or with some motive of ill-will.
Types of Negligence
Culpa Contractual;
Culpa Aquiliana;
Culpa Criminal
Culpa Contractual (Contractual Negligence )
Negligence in the performance of the contract.
Culpa Aquiliana (Civil Negligence)
Negligence becomes a source of obligation in
itself without a pre existing contract.
Culpa Criminal (Criminal Negligence)
Negligence in a commission of a crime.
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.
Gross negligence
No negligence
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.
Act of God
An accident or event resulting from natural
causes, without human intervention or agency,
and one that could not have been prevented by
reasonable foresight or care—for example,
floods, lightning, earthquake, or storms.
Act of Man
Force majeure is a superior or irresistible force,
which is essentially an ______; Includes
unavoidable accidents, even if there has been an
intervention of human element, provided that no
fault or negligence can be imputed to the debtor.
caso fortuito
force majeure
Fortuitous Event
Any event which could not be foreseen, or which
though foreseen are inevitable.
Elements for an Event to be Fortuitous
The cause of the breach of the obligation must be
independent of the will of the debtor;
The event must either be unforeseeable or
unavoidable;
The event must be such as to render it impossible
for the debtor to fulfill his obligation in a normal
manner;
The debtor must be free from any participation in,
or aggravation of the injury.
Obligor promises the same thing to 2 or more
persons of different interest;
Article 1170;
Object of prestation is generic even if the object is
wiped out by a fortuitous event;
Obligation to deliver arises from crime;
Bailee in commodatum
Obligor cannot be liable for fortuitous event
except:
Article 1175
Usurious transactions shall be governed by
special laws.
Special Law
Prohibits usurious interest, allow it, or merely put
a ceiling as to what can be the highest interest
that can be legally imposed.
Article 1176 (Presumption of Payment)
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.
Article 1176
Presumption of payment must always arise from
a set of facts
Conclusive Presumption
A legal presumption in favour of one party that is
final and cannot be rebutted by the other party
Disputable Presumption
Presumption that can be changed, rebutted or
contributed
Kinds of Presumption
Conclusive presumption;
Disputable presumption
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.
Exhaust the properties of the debtor;
Exercise all the rights and actions of the debtor;
Seek rescission
Remedies of creditors to satisfy their claims (in
order)
Accion Subrogatoria
Right of creditor to exercise all of the rights and
bring all of the actions which his debtor may have
against third persons
Accion Pauliana
Rescission, which involves the right of the creditor
to attack or impugn by means of a rescissory
action any
act of the debtor which is in fraud and to the
prejudice of his rights as creditor.
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.
Exempted by law;
Exempted by stipulation;
Not transmissible by nature
Exemptions of transmissibility: