General Principles of Obligation – Elements / Requisites of Obligation

General Provisions - Obligations

What is Law on Obligations and Contracts?

● The law on obligations and contracts is the body of rules which deals with the nature and
sources of obligations and rights and duties arising from agreements and contracts.

Source of "Law on Obligations and Contracts"

● The source of the Law on Obligations and Contracts is the Civil Code of the Philippines
(Republic Act No. 386).

● Civil Code of the Philippines

○ approved on June 18, 1949
○ took effect on August 30, 1950
○ is based on the Civil Code of Spain, which took effect in the Philippines on December
7, 1889

Definition of Obligation
Art. 1156. An obligation is a juridical necessity to give, to do or not to do.

juridical necessity - means that the court may be asked to order the performance of an
obligation if the debtor refuses to perform it.

3 Elements
1. to give (a thing)
2. to do (a service)
3. not to do something

2 parties in an obligation:
1. debtor / obligee — the party who is obliged to perform the obligation
2. creditor / obligor — the party who has the right to demand performance of the obligation

● Real Obligation - obligation to give

● Personal Obligation - obligation to do and not to do
○ 2 types of Personal Obligation;
1. Positive Personal Obligation - obligation to do
2. Negative Personal Obligation - obligation not to do

Requisites of Obligation / Essential Elements of an Obligation

1. Active subject (creditor or obligee)

○ the party who has the right to demand performance of the obligation.
2. Passive subject (debtor or obligor)
○ the party who is obliged to perform the obligation -
3. Prestation
○ the object or subject matter of the obligation. It may consist of giving, doing or not
doing something.
4. Efficient cause
○ the vinculum or the legal or juridical tie which binds the parties to an obligation. The
efficient cause of an obligation may be any of the five sources of obligation.
Five sources of obligation:
1. Law ( ex. paying taxes )
2. Contracts ( ex. copyrights, trademarks) (COC - consent, object, cost)
3. Quasi-contracts
4. Acts or omissions punishable by law
5. Quasi-delicts

Civil Obligation and Natural Obligation

● Civil Obligation
○ based on positive law (enforceable by a court action)

● Natural Obligation
○ based on natural law (not enforceable by a court action)

The obligation in Art. 1156 is a civil obligation

SOURCES OF OBLIGATION
● Article 1157 of the Civil Code of the Philippines provides the sources of an obligation, to wit:

Art. 1157. Obligations arise from:

1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts. (1089a)

● Law
○ Obligations arise when imposed by the law itself and cannot be presumed.
■ For example, an obligation arising from law is the payment of taxes.
● Copying someone else's work without providing appropriate credit,
and attempting to pass it off as one's own, such as trying to make
money from it or publish it.

● Contracts
○ Obligations arise from the stipulation of the parties; it has the force of law and should
be complied with in good faith.
■ For example, a contract of sale between a buyer and a seller in which the
obligation arises.
● As a student of Pamantasan ng Lungsod ng Valenzuela, it is my
responsibility to uphold the standards and values of the school by
avoiding any form of cheating and conduct that would reflect
negatively on the school. I must also respect the contracts and
agreements I have made with the school.

● Quasi-Contracts
○ Certain lawful, voluntary and unilateral acts give rise to the juridical relation of quasi-
contract to the end that no one shall be unjustly enriched or benefited at the expense
of another.
 ■ For example, X owed Y Php1,000. By mistake, X paid Y Php2,000. Y now
has the obligation to return the excess payment because there was a mistake
in the payment. This is called solutio indebiti.
● When a person pays for a service that was never agreed upon, but
the provider accepts the payment in good faith. In this case, the
person providing the service could be seen as having entered into a
quasi-contract with the person paying for the service, even though
there was no formal agreement.

● Acts or Omissions Punishable by Law

○ Responsibility for fault or negligence under a quasi- delict (Art. 2176, CC) is entirely
separate and distinct from the civil liability arising from negligence under the penal
code. But the plaintiff cannot recover damages twice for the same act or omission of
the defendant.
■ For example, under the Revised Penal Code murder and theft are prohibited.
If you commit any of them, you will have the obligation to pay damages and
fines or be put in jail.
● Driving under the influence of alcohol is an act punishable by law.

● Quasi-Delicts
○ Obligations arise from damages caused to another through an act or omission, there
being fault or negligence but no contractual relations exist between the parties.
■ For example, X broke the car window of Y while playing basketball. In this
case, X now has the obligation to pay the damage caused to Y due to X's act.
● If a person leaves their car unlocked and it is stolen, they could be
held liable for a quasi-delict. Another example would be if a person
spills hot coffee on another person in a restaurant and causes them
to be injured.

1. Article 1158 refers to legal obligations or obligations arising from law. They are not
presumed because they are considered a burden upon the obligor. They are the exception,
not the rule. To be demandable, they must be clearly set forth in the law, i.e., the Civil Code or
special laws.
2. According to the Philippines Civil Code, Article 1159, "Obligations arising from contracts
have the force of law between the contractual parties and shall be followed with in
good faith," provides that "Obligations emerging from contracts have the force of law
between the contracting parties."
3. Article 2142 of the New Civil Code states that: Article 2142. Certain lawful, voluntary and
unilateral acts give rise to the juridical relation of quasi-contract to the end that no one
shall be unjustly enriched or benefited at the expense of another.
4. “ART. 2177. Responsibility for fault or negligence under the preceding article is entirely
separate and distinct from the civil liability arising from negligence under the Penal
Code. But the plaintiff cannot recover damages twice for the same act or omission of the
defendant.”
5. "Article 2176. Whoever by act or omission causes damage to another, there being fault
or negligence, is obliged to pay for the damage done. Such fault or negligence, if there is
no pre-existing contractual relation between the parties, is called a quasi-delict and is
governed by the provisions of this chapter."
liability o pananagutan (thesaurus)
- a feature of someone or something that creates difficulty for achieving success
fortuitous event
- an event of natural or human origin that could not have been reasonably foreseen or
expected and is out of the control of the persons concerned (as parties to a contract)
force majeure
- force majeure called also cas fortuit see also frustration compare inevitable accident.
-
contributory fortuitous event???
delay // in delay

Due Diligence vs. Extraordinary Diligence

due diligence
● the care that a reasonable person exercises to avoid harm to other persons or their property
● nararapat na gawin
extraordinary diligence
●

** What does the phrase “good father of a family” mean in the law on obligations?
Definition of delivery [ref: Art. 1164]
Actual vs. Constructive delivery
Determinate thing vs. Indeterminate thing [ref: Art. 1165, NCC];
Accession vs. Accessory [ref: Art. 1166, NCC];
Consequences of failure to do what one is obliged to do [ref: Art. 1167, NCC];
Consequences of doing what one is obliged not to do [ref: Art. 1168, NCC];
Definition of “in delay” [ref: Art. 1169, NCC];
Definition of “demand” [ref: Art. 1169];
● an act of demanding or asking especially with authority
Definition of “damages” [ref: Art. 1170, NCC];
● kinds of damages: actual damages, moral damages (there's no morality value/involved),
excempt/ exemptary damages???,
● loss or harm resulting from injury to person, property, or reputation

Grounds for liability for damages [ref: Art. 1170, NCC];

** Fraud [ref: Art. 1171, NCC];
● specifically : intentional perversion of truth in order to induce another to part with something of
value or to surrender a legal right
** Negligence or Fault [ref: Arts. 1172-1174, NCC];
● failure to exercise the care that a reasonably prudent person would exercise in like
circumstances
** Delay [ref: Art. 1169, NCC];
● the act of postponing, hindering, or causing something to occur more slowly than normal
**Contravention of the tenor of the obligation [ref: Art. 1168, NCC];
● the act of contravening : VIOLATION

Definition of “in default” [ref: any legal thesaurus or dictionary];

● failure to do something required by duty or law

Definition of “Indemnity” [ref: Art. 1204, NCC]

● security against hurt, loss, or damage
● exemption from incurred penalties or liabilities
Transmissibility and assignment of obligations [ref: Art. 1178, NCC];

Expected Preparations by Students

*Read Articles 1156 to 1178, 1204 of NCC plus whatever explanations, annotations or descriptions
you can find on the subject.

Assignment: kinds of obligations