OBLIGATIONS

By Atty. Abrahm A. Apepe, CPA

Outline

Lesson 1. Lesson 2. Lesson 3.

Definition of an Obligation Elements of an Obligation Classification of Obligations

Lesson 4.
Sources of Obligations
Definition of an
Obligation
• An obligation is a juridical necessity to
give, to do, or not to do. (Art. 1156, New
Civil Code)

• It is a juridical relation or a juridical

necessity whereby a person may demand
from another the observance of a
determinative conduct, and in case of
breach, may demand satisfaction from the
assets of the latter.
Natural
Obligations
• Article 1156 refers only to civil
obligations which are
enforceable in court when
breached.
• It does not cover natural
obligations (Articles 1423-
1430) because the latter
cannot be enforced in court
being based merely on equity
and natural law and not on
positive law.
Course Progress

Lesson 1 Lesson 2 Lesson 3 Lesson 4

Definition of an Elements of an Classification of Sources of
Obligation Obligation Obligations Obligations
Elements of an Obligation
Active Subject

Passive Subject

Object / Prestation

Juridical Tie / Vinculum Juris /

Efficient Cause
Elements of an Obligation
Juridical Tie / Vinculum
Active Subject Passive Subject Object / Prestation
Juris / Efficient Cause
• The person demanding • The one bound to • The subject matter • The efficient cause by
the performance of the perform the prestation which has a virtue of which the
obligation. to give, to do, or not to corresponding debtor becomes bound
do. economic value or to perform the
• It is in his favor the susceptible of prestation
obligation is pecuniary substitution
constituted, established in case of
or created. noncompliance.

• It is a conduct that may

consist of giving, doing
or not doing something.
Course Progress

Lesson 1 Lesson 2 Lesson 3 Lesson 4

Definition of an Elements of an Classification of Sources of
Obligation Obligation Obligations Obligations
Classification of Obligations

As to Creation As to Nature As to Object

Determinate / Specific – Particularly
designated or physically segregated
Personal – Obligation to do or not to from all others of the same class
Legal – Imposed by law
do

Generic – Designated merely by its

class or genus

Conventional – Established by the

Real – Obligation to give Limited Generic – Generic objects
agreement of the parties
confined to a particular class or
source
Classification of Obligations
As to Existence of As to Character of
As to Performance
Burden or Condition Responsibility or Liability

Joint – Each debtor is liable only

Pure – Not burdened with any
Unilateral – Only one party is for a part of the whole liability
condition or term. It is
bound and to each creditor shall belong
immediately demandable
only a part of the collective rights

Solidary – A debtor is answerable

Conditional – Subject to a for the whole obligation without
Bilateral – Both parties are bound condition which may be prejudice to his right to collect
suspensive or resolutory from his co-debtors the latter’s
shares in the obligation
Classification of Obligations
As to Susceptibility of
Partial Fulfillment
Divisible – Obligation is
susceptible of partial
performance
Indivisible – Obligation is not
susceptible of partial
performance
As to a Right to As to Imposition of
Choose and Substitute Penalty
Alternative – Obligor may
Simple – There is no penalty
choose to completely perform
imposed for the violation of
one out of the several
the terms thereof
prestations
Facultative – Only one
Obligation with a penalty –
prestation has been agreed
Obligation which imposes a
upon but the obligor may
penalty for violation of the
render another in substitution
terms thereof
of the first one
Course Progress

Lesson 1 Lesson 2 Lesson 3 Lesson 4

Definition of an Elements of an Classification of Sources of
Obligation Obligation Obligations Obligations
Sources of
Obligations
• Law
• Contracts
• Quasi-contracts
• Delict
• Quasi-delict
Obligations Arising from Law
Obligations derived from law are not presumed.

Only those expressed in the New Civil Code (NCC) 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 the NCC.

If there is a conflict between the NCC and a Special Law, the latter prevails
unless the contrary has been expressly stipulated in the NCC.
Obligations Arising from Law

Characteristics of a Legal Obligation

• Does not need the consent of the obligor
• Must be expressly set forth in the law creating it not
merely presumed
• In order that the law may be a source of obligation,
it should be the creator of the obligation itself
Obligations Arising from Contracts
If the law governs the obligations arising from law, it is the stipulations,
clauses, terms and conditions of the parties that govern the obligations
arising from contracts.
These terms and conditions must, however, not be unconscionable or
unreasonable.

Obligations arising from contracts have the force of law between the
parties and should be complied with in good faith (Art. 1159, NCC). This
is known as the “principle of obligatory force of contracts”.
Obligations Arising from Contracts

Requisites of a Contractual Obligation

• It must contain all the essential requisites of a
contract (Art. 1318, NCC)
• It must not be contrary to law, morals, good
customs, public order, and public policy (Art.
1306, NCC)
Obligations Arising from Quasi-Contracts

A quasi-contract is a juridical relation

arising from lawful, voluntary and unilateral
acts based on the principle that no one shall
be unjustly enriched or benefited at the
expense of another (Art. 2142, NCC).
Obligations Arising from Quasi-Contracts

Characteristics
•Lawful
of a Quasi- •Unilateral
Contract
•Voluntary
Obligations Arising from Quasi-Contracts

Principal Forms of Quasi-contracts

Negotiorum Gestio
• Arises when a person voluntarily takes charge of the management of the business or property of
another without any power from the latter (Art. 2144, NCC)

Solutio Indebiti
• Takes place when a person received something from another without any right to demand for it,
and the thing was unduly delivered to him through mistake (Art. 1254, NCC)
• The delivery must not be through liberality or some other cause
Obligations Arising from Delict/Crime
Delict is an act or omission punishable under the law.

Article 100 of the Revised Penal code (RPC) provides that “Every person
criminally liable for a felony is also civilly liable.”

This will not apply when no civil liability arises on the part of the
offender whether because there are no damages to be compensated or
there is no private person injured by the crime
Obligations Arising from Delict/Crime
As a general rule, when a criminal action is instituted, the civil
action for the recovery of the civil liability arising from the
offense charged shall be deemed instituted with the criminal
action (Sec. 1 Rule 111, Rules of Court).
The exceptions are when the offended party:
1. Waives the civil action
2. Reserves the right to institute it separately
3. Institute the civil action prior to the criminal action
Obligations Arising from Delict/Crime
As a general rule, the acquittal of the accused in criminal cases on the ground
of reasonable doubt does not preclude the filing of a subsequent civil action
and only preponderance of evidence is required to prove the latter.
However, acquittal based on the grounds below, the accused is also free from
civil liability:
1. The accused did not commit the crime charged; or
2. There is a declaration in the decision of acquittal that no negligence can be
attributed to the accused and that the fact from which the civil action might
arise did not exist.
Obligations Arising from Quasi-delict

A tort (quasi-delict) is an act or omission arising

from fault or negligence which causes damage to
another, there being no pre-existing contractual
relations between the parties (Art. 2176, NCC)
Obligations Arising from Quasi-delict

Elements of Quasi-delict

• Negligent or wrongful act or omission

• Damage or injury caused to another
• Casual relation between such negligence or fault and
damage
• No pre-existing contractual relation between the parties
THANK YOU!