1. Define Obligation.

 ART.1156. an obligation is an juridical necessity to giv,to do or not to do.

 it is a tie of law or a juridical bond by virtue of which one is a bound in favor of another
to render something – and this may consist in giving a thing. Doing a certain act, or not
doing certain act.

2. What are the essential elements of an obligation?

1. Passive Subject (obligor/debtor): the person who has the duty of giving, doing or not
doing; person bound to the fulfillment
2. Active Subject (obligee/creditor): the person in whose favor the obligation is constituted;
person entitled to make a demand
3. Vinculum Juris/ Legal Tie: the efficient cause or the juridical tie between two subjects by
4. reason of which the debtor is bound in favor of the creditor to perform the obligation. It
can
5. be established by various sources of obligations (law, contract, quasi-contracts, delicts,
and quasi-delicts) and may arise either from bilateral or unilateral acts of persons.
6. Object/ Subject Matter: the prestation or conduct which has to be observed by the
debtor/obligor; to be valid, it must be:
(LiPoDeM):
a. Licit
b. Real or Possible
c. Determinate/ Determinable
d. Must be within the commerce of men (i.e. susceptible of appropriation and
transmissible from one person to another)

3. Give the various sources of obligations.

 ART. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts.(1089a)
1. Law; - The law cannot exist as a source of obligations, unless the acts to which its principles
may be applied exist.
- when they are imposed by the law itself, e.g., obligation to pay taxes; obligation
to support one’s family
- It must be expressly or impliedly set forth and cannot be presumed.
2. Contracts;
- when they arise from the stipulation of the parties, e.g., obligation to repay a loan
by virtue of an agreement.
- The terms of the contracts determine the respective obligations of the parties. If
the terms of the contract are clear and leave no doubt upon the
contracting parties’ intention, such terms should be applied in their literal
meaning.
- Neither party may unilaterally evade his obligation in the contract, unless the
contract authorizes it or the other party assents.
3. Quasi-contracts;
- when they arise from lawful, voluntary and unilateral acts wand which are
enforceable to the end that no one shall be unjustly enriched or
benefited at the expense of another.
Ex. The obligation to return money paid by mistake or which is not due.
In a sense, these obligations may be considered as arising from law.
-Juridical relations resulting from lawful, voluntary and unilateral acts, which has
for its purpose, the payment of indemnity to the end that no one shall be unjustly
enriched or benefited at the expense of another.
4. Acts or omissions punished by law.
- when they arise from civil liability which is the consequence of a criminal
offense.
Ex. — like the duty to return a stolen carabao.
5. 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.
- ex. like the duty to repair damage due to negligence.

4. In January 2018, Mrs. A, a married woman on her sixth (6th) month of pregnancy, was
crossing a street when she was suddenly hit by a car being recklessly driven by Mr. X. As a
result, Mrs. A sustained serious injuries and further, suffered an unintentional abortion.
Mrs. A was hospitalized for two (2) months, during which she incurred ₱400,000.00 in
medical fees. Her expenses were all duly substantiated by official receipts. During the two
(2)-month period of her confinement, she was unable to report for work and earn any
salary, which was established at the rate of ₱50,000.00 per month. Mrs. A then filed a civil
case for damages against Mr. X. Based on the case filed by Mrs. A, what is the source of Mr.
X's obligation to her as a result of his acts?
Explain.
 The source of Mr. X obligation is Quasi-delicts. Mr. X was driving a car recklessly which
resulted to hitting Mrs. A, The act of driving his car recklessly resulted to Mrs. A
sustaining serious injuries and suffered unintentional abortion making Mr. X civilly
liable.

5. Can Mrs. A pursue a criminal case instead, and still recover damages?
 yes, as Every person criminally liable for a felon is also civilly liable.

6. If Mrs. A decided to pursue the criminal case, but during the pendency of the trial Mr. X
dies, what will happen to the criminal case?
 The criminal case will be dismissed and all the penalties that could have been imposed
against the accused will be totally extinguished.
7. What will happen to Mrs. A’s prayer for recovery of damages, or the civil aspect of the
case in the event of Mr. X’s death during pendency of the case?
 “A deceased defendant in an independent civil action, or those civil actions
instituted to enforce liability arising from other sources of obligation such as
the law, contracts, quasi-contracts, or quasi-delicts may be continued against
the estate or legal representative of the deceased after proper substitution is
complied with, as the case may be”

8. Suppose Mr. X is a driver-employee of Mr. O. Can Mrs. A pursue a case for damages
directly against Mr. O?
 an employer may be subsidiary liable for the employee's civil liability in a criminal action
when: (1) the employer is engaged in any kind of industry; (2) the employee committed
the offense in the discharge of his duties; and (3) he is insolvent and has not satisfied his
civil liability.

9. Suppose, instead of being a pedestrian crossing the street, Mrs. A was a passenger of the
common carrier being driven by Mr. X and owned by Mr. O. The car met an accident, and
as a result Mrs. A suffered injury. What options are available to Mrs. A for recovery 2 of
damages, if any?
 the owner of the common carrier are liable for the death of or injuries to passengers
through the negligence or willful acts of the former's employees.
 Mrs. A may file a civil case for recover to damages,

10. What is a real obligation?

 the obligation to give or that in which the subject matter is a thing which the obligor must
deliver to the oblige.

11. What is a personal obligation?

 the obligation to do or not to do (Example: the duty to paint a house, or to refrain from
committing a nuisance).

12. Distinguish a generic thing from a determinate thing. Give

two examples.
 A determinate thing - is a concrete particularized object indicated by its own
individuality.
 identified by its individuality. The debtor cannot substitute it with another although the
latter is of the same kind and quality without the consent of the creditor.
 generic thing - is one whose determination is confined to that of its nature, to the genus
(genero) to which it pertains, such as a horse, a chair.
 identified only by its specie. The debtor can give anything of the same class as long as it
is of the same kind.

(1) If D’s obligation is to deliver to C a Bulova calendar watch, D can deliver any watch as long
as it is Bulova with calendar.
But if D’s obligation is to deliver to C a particular watch, the one D is wearing,
D cannot substitute it with another watch without C’s consent nor can C require D to deliver
another watch without D’s consent although it may be of the same kind and value. (see Arts.
1244, 1246.)
(2) If D’s obligation is to deliver to C one of his cars, the object refers to a class which in itself is
determinate.
Here, the particular thing to be delivered is determinable without the need of a
new contract between the parties (see Art. 1349.); it becomes determinate upon its delivery.

13. What are the obligations of a debtor in an obligation to

deliver a determinate thing?
(1) To preserve or take care of the thing due;
(2) To deliver the fruits of the thing (see Art. 1164.);
(3) To deliver its accessions and accessories (see Art. 1166.);
(4) To deliver the thing itself (see Arts. 1163, 1233, 1244; as to kinds
of delivery, Arts. 1497 to 1501.); and
(5) To answer for damages in case of non-fulfi llment or breach.
(see Art. 1170.)

14. What are the remedies of the creditor in case of breach of an

obligation to deliver a determinate thing?
(a) demand specific performance (or compliance) of the obligation. (This is true whether the
obligation be generic or
specific.)
(b) demand rescission or cancellation (in some cases).
(c) demand damages either with or without either of the first
two, (a) or (b).
(NOTE: If I am entitled to 10 kilos of sugar from A, I can demand that A obtain the sugar and
give me 10 kilos thereof. This is true even if the obligation here be generic. A cannot insist on
just paying me damages or the monetary value of the sugar. Upon the other hand, if I desire to, I
can just buy 10 kilos of sugar anywhere and charge the expense to A.).

15. What are the obligations of a debtor in an obligation to

deliver a generic thing?
(1) To deliver a thing which is of the quality intended by the
parties taking into consideration the purpose of the obligation and
other circumstances (see Art. 1246.); and
(2) To be liable for damages in case of fraud, negligence, or delay,
in the performance of his obligation, or contravention of the tenor
thereof. (see Art. 1170.)
16. What are the remedies of a creditor in case of breach of an
obligation to deliver a generic thing?
(a) demand specific performance (or compliance) of the obligation. (This is true whether the
obligation be generic or
specific.)
(b) demand rescission or cancellation (in some cases).
(c) demand damages either with or without either of the first
two, (a) or (b).
(NOTE: If I am entitled to 10 kilos of sugar from A, I can demand that A obtain the sugar and
give me 10 kilos thereof. This is true even if the obligation here be generic. A cannot insist on
just paying me damages or the monetary value of the sugar. Upon the other hand, if I desire to, I
can just buy 10 kilos of sugar anywhere and charge the expense to A.).

17. What are the remedies of a creditor in case of breach of an

obligation to do?
ART. 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.
(1) If the debtor fails to comply with his obligation to do, the creditor has the right:
(a) to have the obligation performed by himself, or by another unless personal considerations are
involved, at the debtor’s expense; and
(b) to recover damages. (Art. 1170.)
(2) In case the obligation is done in contravention of the terms of the same or is poorly done, it
may be ordered (by the court) that it be undone if it is still possible to undo what was done.

18. Can the creditor demand for specific performance in an

obligation to do? Explain.
 A specific performance cannot be ordered in a personal obligation to do because this may
amount to involuntary servitude which, as a rule, is prohibited under our Constitution.
(Art. III, Sec. 18[2] thereof.)
 where the obligation can still be performed at the expense of the debtor notwithstanding
his failure or refusal to do so, the court is not authorized to merely grant damages to the
creditor.

19. What are the remedies of a creditor in case of breach of an

obligation not to do?
 ART. 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. (1099a)
 the remedy of the obligee is the undoing of the forbidden thing plus damages. (Art.
1170.) However, if it is not possible to undo what was done, either physically or legally,
or because of the rights acquired by third persons who acted in good faith, or for some
other reason, his remedy is an action for damages caused by the debtor’s violation of his
obligation. (see 8 Manresa 58.)
20. What is mora?
 the failure to perform an obligation on time which failure, constitutes a breach of the
obligation.
 Delay which amounts to a virtual nonfulfillment of the obligation. (As a rule, to put a
debtor in default, there must be a demand for fulfillment, the demand being either judicial
or extrajudicial.)

21. What are the three kinds of mora?

(1) Mora solvendi or the delay on the part of the debtor to fulfill his obligation (to give or to do)
by reason of a cause imputable to him;
- (1) failure of the debtor to perform his (positive) obligation on the date agreed upon;
(2) demand (not mere reminder or notice) made by the creditor upon the debtor to fulfill,
perform, or comply with his obligation which demand, may be either judicial (when a complaint
is filed in court) or extra-judicial (when made outside of court, orally or in writing); and
(3) failure of the debtor to comply with such demand.

(2) Mora accipiendi or the delay on the part of the creditor without justifiable reason to accept
the performance of the obligation; and
(3) Compensatio morae or the delay of the obligors in reciprocal obligations (like in sale), i.e.,
the delay of the obligor cancels the delay of the obligee, and vice versa.

22. X, a dressmaker, was contracted by Karla to make a gown to be delivered on February

14, 2020. On the day X was supposed to deliver Karla's dress, X called up Karla to inform
her that she had an urgent matter to attend to and will deliver them the next day. That
night, however, a fire broke out from a nearby gas station and reached her shop.
Everything was destroyed including Karla's dress. X claims she is not liable to deliver
Karla's dress considering she herself was a victim of a fortuitous event and over which she
had no control. Do you agree? Why?

 NO, I do not agree. One, the clothing materials are indeterminate things, absent any
stipulation that the dresses would be made only using the materials Karla provided.
Article 1263 applies (ART. 1263. In an obligation to deliver a generic thing, the loss or
destruction of anything of the same kind does not extinguish the obligation. (n).)
 Two, X is already in delay. “On the day X was supposed to deliver Karla’s dresses, X
called up Karla to say that she had an urgent matter to attend to and will deliver them the
next day.” Assuming there is a demand, Article 1165, paragraph 3 applies “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.”
23. When does an obligor, who is bound to deliver or do
something, incur in delay?
ART. 1169. Those obliged to deliver or to do something incur in delay from the time the obligee
judicially or extra-judicially 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 declares;
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. (1100a)

24. Moonwalk obtained a loan from SSS. In the loan agreement, Moonwalk obliged itself to
pay the monthly installments on the loan every 5th day of the month. There is likewise a
penalty clause, where SSS is allowed to impose interest of 1% on the amount due per
month of delay. Moonwalk failed to pay every 5th of the month for the past 5 years. SSS
then demanded payment of the accrued unpaid installments plus interest of 1% per month
for 5 years. Moonwalk refused to pay the interest, arguing that it is not guilty of delay. SSS
countered that the contract provided for a specific date when monthly payments must be
made, hence, non-payment on the agreed date automatically constitutes delay. If you were
the judge, how will you rule?

If I were the judge, I would rule in favor of Moonwalk as there is no delay because pursuant to
the new civil code, there are 3 requisites that must be present before mora solvendi can exist:
(1) failure of the debtor to perform his (positive) obligation on the date agreed upon;
(2) demand (not mere reminder or notice) made by the creditor upon the debtor to fulfill,
perform, or comply with his obligation which demand, may be either judicial (when a complaint
is filed in court) or extra-judicial (when made outside of court, orally or in writing); and
(3) failure of the debtor to comply with such demand.

Only one requisite may be seen in the case and it is the “(1) failure of the debtor to perform his
(positive) obligation on the date agreed upon;”

25. When does delay start in reciprocal obligations?

 ART. 1169. 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. (1100a)
26. Boby and Red entered into a contract of sale, where Boby as seller will deliver his
iphone 5 to buyer Red, who in turn must pay the purchase price. When will either party
incur in delay if they agreed to consummate the sale on January 1, 2022, but to date, no one
has performed their respective obligations?
 There will be no delay as according to ART. 1169. Neither party incurs in delay if the
other does not comply or is not ready to comply in a proper manner with that is
incumbent from him and only when one of the parties fulfills his obligation, delay by the
other begins.

27. Is there a need for Red to make a demand to Boby for the delivery of iphone5, in case he
is now ready to pay the purchase price, or would mere communication to Boby about his
readiness to comply with obligation be sufficient?
 mere communication with his readiness to comply with his obligation will be sufficient as
long as neither one of the parties fulfilled their obligations either parties need not demand
the other.

28. Boby and Red entered into a contract of sale, where Boby as seller will deliver his
iphone 5 to buyer Red, who in turn must pay the purchase price fifteen (15) days from
receipt of the iphone5. Suppose Boby delivered the iphone5 to Red last January 1, 2022.
To date, however, Red has not yet delivered the purchase price to Boby. Is Red guilty of
delay?
 As a general rule delay begins only from the moment the creditor demands, judicially or
extrajudicially, the fulfillment of the obligation. With the exception that when the
obligations so provides, in this case it is clear that boby and red provided in their contract
of sale that the seller will deliver his item to the buyer and in turn must pay the purchase
price 15 days from the receipt of the Iphone. January 1 2022 is the day when the buyer
received the item and if red has yet to pay for his item then red is guilty of delay.

29. Distinguish mora solvendi ex persona from mora solvendi ex re?

1. Mora solvendi – default on the part of the debtor/obligor
a. Ex re – default in real obligations (to give)
b. Ex personae – default in personal obligations (to do)

30. Zeny contracted the services of Trisha, a couturier, for creation of her bridal gown. The
contract was entered into 6 months before the wedding, with a stipulation of delivery date
at least one week before the wedding. Trisha failed to deliver the bridal gown one week
before the wedding. Zeny tried to contact Trisha, but to no avail. A day before the wedding,
still unsure if Trisha could deliver the gown, Zeny went to Divisoria and bought herself a
cheap ready-to-wear bridal gown. Two days after the wedding, Trisha delivered the bridal
gown. Zeny rejected the delivery, and sued Trisha for damages. Trisha on the other hand
argued that she cannot be considered guilty of delay since there is no demand. If you were
the judge, how will you rule?

 Delay may be seen in the present case as the 3 requisites for delay is present. “(1) failure
of the debtor to perform his (positive) obligation on the date agreed upon;” when Trisha
failed to deliver the said bridal gown on time.
“(2) demand (not mere reminder or notice) made by the creditor upon the debtor to fulfill,
perform, or comply with his obligation which demand, may be either judicial (when a complaint
is filed in court) or extra-judicial (when made outside of court, orally or in writing);” one of the
exceptions to this requisite is when time is of the essence, As the debtor is fully aware that the
performance of the obligation after the designated time would no longer benefit the creditor
hence demand is no longer needed.
(3) failure of the debtor to comply with such demand.

31. Define negligence under Article 1173.

ART. 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)

- negligence is conduct that creates undue risk or harm to another. It is the failure to
observe for the protection of the interests of another person, that degree of care,
precaution and vigilance which the circumstances justly demand, whereby such other
person suffers injury.”
- Any voluntary act or omission, there being no malice which prevents the normal
fulfillment of an obligation.
- 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

32. Explain why negligence is said to be a “relative” term.

 Negligence is a relative term whose application depends upon the situation of the parties
and the degree of case and vigilance which the circumstances reasonably require and so
where the danger is great, a high degree of care is necessary, and the failure to observe it
is a want of ordinary care under the circumstances.

33. Distinguish quasi-delict from breach of obligation due to negligence.

 Quasi-Delict (Article 2176 of the Civil Code):
 Quasi-delict, also known as culpa aquiliana, refers to a wrongful act or omission
which causes damage to another, without the presence of any pre-existing
contractual relation between the parties.
 It is based on fault or negligence, but it does not require a pre-existing contractual
obligation between the parties involved.
 The liability arising from quasi-delict is governed by Article 2176 of the Civil
Code of the Philippines, which states that "Whoever by act or omission causes
damage to another, there being fault or negligence, is obliged to pay for the
damage done."
 Quasi-delict encompasses a wide range of situations, such as vehicular accidents,
defamation, and other forms of injury or damage caused by negligence or fault.
  Breach of Obligation Due to Negligence:
 Breach of obligation due to negligence typically refers to a situation where a party
fails to fulfill a duty of care owed to another party as stipulated in a contractual
agreement or as imposed by law.
 Unlike quasi-delict, breach of obligation due to negligence involves a pre-existing
contractual relationship between the parties, where one party fails to exercise the
degree of care and diligence required by the circumstances.
 The liability for breach of obligation due to negligence may arise from various
types of contracts, such as contracts of carriage, lease agreements, employment
contracts, etc., where one party's negligence leads to harm or damage to the other
party.
 The remedies and principles governing breach of obligation due to negligence
may vary depending on the specific contractual terms and the nature of the
negligence involved.
 In summary, while both quasi-delict and breach of obligation due to negligence
involve acts or omissions leading to harm caused by negligence, the key
distinction lies in the presence or absence of a pre-existing contractual
relationship between the parties involved. Quasi-delict applies when there is no
prior contractual obligation, while breach of obligation due to negligence occurs
within the context of a contractual relationship.

34. If the law or contract does not state the degree of diligence, what degree of diligence
should a debtor observe in the performance of obligation?
 ART. 1173. 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.

35. Give one obligation where the law requires the obligor to observe higher degree of
diligence?
 R.A. 386. "Common carriers, from the nature of their business and for reasons of public
policy, are bound to observe extraordinary diligence in the vigilance over the goods and
for the safety of the passengers transported by them, according to all circumstances of
each case."

36. Briefly give the facts, issue and ruling in Legaspi Oil Co., Inc. vs. CA (224 SCRA 213).
37. How did the Supreme Court define fraud in the case of Legaspi Oil Co., Inc. vs. CA?
38. Explain how the Supreme Court distinguished fraud from negligence in the case of
Legaspi Oil Co., Inc. vs. CA.
39. What are the two kinds of fraud?
1. a) dolo causante (causal fraud) - employed to secure the consent of the other party,
which is a ground for the annulment of a contract (par. 1.), although it may also give rise
to an action for damages

- Here, were it not for the fraud, the other party would not have consented. (This is the
fraud referred to in Art. 1338, Civil Code.
 2. b) dolo incidente (incidental fraud) - employed to secure the consent of the other party
but which only renders the party who employs it liable for damages. (par. 2.) This kind of
fraud must not be confused with the fraud in Articles 1170 and 1171 which refers to that
occurring in the performance of a pre-existing obligation under a contract without
affecting the validity of the contract. Both kinds of incidental fraud do not vitiate consent.
- Here, even with- out the fraud the parties would have agreed just the same, hence the
fraud was only incidental in causing consent. Very likely though, different terms would
have been agreed upon. Effect of this kind of fraud: The contract is valid, but there can be
an action for damages.

40. Anita, owner of a sari-sari store, bought from Nilo, a rice trader, 5 sacks of Dinorado
rice. They entered into a written contract, where the buyer expressly waived any action
against the seller for breach of obligation. In order to get more profits, Nilo delivered to
Anita NFA rice, but he packaged them using sacks for Dinorado rice. Anita then sold the
rice to her customers, and she later received several complaints. What remedy or remedies
is/are available to Anita?
Fraud and Deceit (Article 1338):
 If Nilo intentionally deceived Anita by packaging the NFA rice using sacks for Dinorado
rice, Anita may have a legal remedy based on fraud and deceit as provided in Article
1338 of the Civil Code. Fraudulent acts may void or annul contracts, and the injured
party can seek damages.

41. Can Nilo invoke Anita’s waiver in their written contract to avoid liability?
 No, as in the first place the waiver is against Philippine laws and is done to deceit the
buyer which makes it a invalid waiver.
42. Distinguish mora from negligence and fraud.
 mora deals with delay or default in the performance of obligations, negligence involves a
failure to exercise reasonable care leading to harm, and fraud pertains to intentional
deception for unfair gain. While mora is more specific to contract performance issues,
negligence and fraud have broader applications in various legal contexts.