OBLICON c. Object or prestation (subject matter).
CHAPTER I: General Provisions
(Arts. 1156-1162)
ARTICLE 1156. An obligation is a juridical necessity to
give, to do or not to do.
I. Obligation. is derived from the Latin word
“obligatio” which means a “tying” or
binding.”
a. It is a tie of law or a juridical bond by
virtue.
b. “a legal relation established between
one party and another, whereby the
latter is bound to the fulfillment of a
prestation which the former may
demand of him.” (Manresa)
c. Article 1156 speaks of obligation in its
passive aspect. (Obligor giving, doing, or
not doing as a juridical necessity)
II. Juridical necessity
a. In case of non-compliance, the courts of
justice may be called upon to enforce its
fulfillment or, in default thereof, the
economic value that it represents.
b. The debtor or obligor must comply with
his obligation. otherwise, he/she will be
subject to legal consequences.
III. Nature of obligations
a. Civil obligations.
i. arise from law, contracts, quasi-
contracts, delicts, and quasi-
delicts (Art. 1157)
ii. give right of action in courts of
justice to enforce (compel) their
performance.
b. Natural obligations.
i. not based on positive law but
on equity and natural law
ii. do not grant a right of action to
enforce their performance
(cannot be legally enforced).
iii. Are not cognizable by the courts
unless there has been voluntary
fulfillment by the obligor, they
authorize (order) the retention
of what has been delivered or
rendered by reason thereof.
IV. Requisites of an obligation
a. Passive subject (debtor or obligor). He
who has a duty.
b. Active subject (creditor or obligee). He
who has a right.
The conduct required. Giving, doing, or
not doing.
d. Juridical or legal tie (efficient cause).
That which binds or connects the
parties to the obligation (determined by
which source).
V. Form of obligation
a. The law does not require any form in
obligations arising from contracts.
b. Obligations arising from other sources
do not have any form at all.
Obligation. is the performance which the law will
enforce.
Right. is the power which a person has under the law, to
demand from another any prestation.
A wrong (cause of action). Is an act of one party in
violation of legal rights of another, cause injury to the
latter.
VI. Essential elements of cause of action
a. Elements
i. a legal right in favor of the
creditor
ii. a correlative legal obligation on
the debtor to respect or not to
violate said right.
iii. an act in violation of the said
right by the debtor with
consequential injury or damage
to the creditor.
b. If one element is absent, the complaint
becomes vulnerable to a motion to
dismiss on the ground of failure to state
a cause of action.
i. Because a cause of actions
relies on the sufficiency, not on
the veracity, of the allegations
of the creditor, which will have
to be examined during trial.
c. A cause of action only arises when the
last element (an act in violation of a
right) occurs.
i. Cause of action is governed by
the procedural law, while right
of action depends on
substantive law. Only then will
the right of action accrue when
all the facts which constitute
the cause of action have
occurred.
 ii. An obligation on the part of a
person cannot exist without a
corresponding right existing in
favor of another, and vice-versa.
Injury
a. is the illegal invasion of a legal right.
b. it is the wrongful act or omission which causes
loss or harm to another.
c. it is the legal wrong to be redressed.
Damage
a. is the loss, hurt, or harm which results from the
injury.
Damages
a. denote the sum of money recoverable as
amends for the wrongful act or omission.
b. are the compensation recoverable for the
damage or loss suffered.
Qui jure suo utitur mullum damnum facit- One who
makes use of his legal rights does no injury.
damnum absque injuria- damage without injury.
VII. Kinds of obligation according to subject
matter.
a. Real obligation. obligation to give.
b. Personal obligation. obligation to do or
not to do.
i. Positive personal obligation.
obligation to do or to render
service.
ii. Negative personal obligation.
obligation not to do (includes
“not to give”).
ARTICLE 1157. Obligations arise from: law, contracts,
quasi-contracts, delicts, and quasi-delicts.
I. Sources of obligations
a. Law
i. imposed by the law itself.
b. Contracts
i. Arise from stipulation of parties.
c. Quasi-contracts
i. Arise from lawful, voluntary,
and unilateral acts.
ii. Enforceable to the end that no
one shall be unjustly enriched
or benefited at the expense of
another.
d. Crimes or acts or omissions punished
by law (delicts)
i. Arise from civil liability--which is
the consequence of a criminal
offense.
e. Quasi-delicts or torts
i. Arise from damage caused to
another through fault or
negligence.
ii. no contractual relation exists
between parties.
II. Classifications of the sources of obligations
a. Law
b. Private acts
i. Licit acts- contracts, quasi-
contracts
ii. Illicit acts- delicts, quasi-delicts
ARTICLE 1158. Obligations derived 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.
I. Legal obligations
a. Are not presumed because they are
considered a burden upon the obligor.
b. Exception, not rule.
c. To be demandable, they must clearly be
set forth in the law (Civil Code or special
laws)
i. Special laws. refer to all other
laws not contained in the Civil
Code.
ARTICLE 1159. Obligations arising from contracts have
the force of law between the contracting parties and
should be complied with in good faith.
Contract. is a meeting of minds between two persons
whereby one binds himself, with respects to the other,
to give something or to render some service (Art. 1305).
 in all contracts, there are obligations.
 but not all obligations have contracts.
Why are contracts a source of obligation?
 because it has a binding force of law.
I. Binding force (of law). In characterizing
contracts as having the force of law
between the parties, the law stresses the
obligatory nature of a binding and valid
agreement, absent any allegation that is
 contrary to law, morals, goods customs,
public order, or public policy.
Prima Facie- upon initial examination, a legal claim
has sufficient evidence to proceed to trial or
judgement.
Res judicata- the principle that a cause of action
may not be relitigated once it has been judged on
the merits. (Finality of judging)
II. Requirements of a valid contract
a. Essential elements of a contract
i. Consent of the contracting
parties
ii. Object or subject matter
iii. Cause of the obligation
b. Article 1306. If it is not contrary to law,
morals, good customs, public order,
and public policy.
III. Where contract requires approval by the
government. such contract becomes the
law between the contracting parties only
when approved, and where there is nothing
in it which is contrary to law, etc., its validity
must be sustained.
IV. Compliance in good faith. performance in
accordance with the terms of the contract.
V. Liability for breach of contract. a party
cannot breach a contract with impunity. Our
law on contracts recognizes the principle
that actionable injury inheres in every
contractual breach, possibly even interest if
the court discrete.
VI. Preservation of interest of promisee. The
remedy serves to preserve the interest of
the promisee of having the benefit of his
bargain, or in being reimbursed for loss
caused by reliance on the contract, or in
having restored to him any benefit that he
has conferred on the other party.
ARTICLE 1160. Obligations derived from quasi-
contracts shall be subject to the provisions of Chapter
1, Title XVII, of this Book.
Quasi-contract. is that juridical relation resulting from
certain lawful, voluntary and unilateral acts by virtue of
which the parties become bound to each other to the
end that no one will be unjustly enriched or benefited at
the expense of another.
 “As if” a contract
 no consent, but still supplied by fiction of law.
 it is to prevent injustice.
I. Kinds of quasi-contracts
a. Negotiorum qestio. is the voluntary
management of the property or affairs
of another without the knowledge or
consent of the latter. Except when:
i. the property or business is not
neglected or abandoned by the
owner; and
ii. the manager has been
authorized by the owner.
b. Solutio indebiti. is the juridical relation
which is created when something is
received when there is no right to
demand it and it was unduly delivered
through mistake. It applied where:
i. Payment is made when there
exists no binding relation
between the payor, who has no
duty to pay, and the person who
received the payment; and
ii. The payment is made through
mistake and not through
liberality or some other cause.
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 XVIII of this Book, regulating
damages.
Fencer. one who acquire or purchase goods that are
stolen.
I.
 Every person criminally liable for a felony is also
civilly liable. (A felony is an act or omission
punishable by law. It is committed with criminal
intent or by means of negligence).
 In every crime, there is civil liability (with
exceptions e.g., drug cases)
 Ignorance of the law excuses no one from
compliance therewith (Article 3 of the Civil
Code).
II. Scope of civil liability
a. Restitution
b. Reparation for the damage caused
c. Indemnification for consequential
damages
ARTICLE 1162. Obligations derived from quasi-delicts
shall be governed by the provisions of Chapter 2, Title
XVII of this Book, and by special laws.