CONCEPT

AND
SOURCES OF
OBLIGATION
 Obligation

is a judicial necessity to give, to

do or not to do (1156)

2
ART. 1157.
Obligations arise
from:
✘ Law;
✘ Contracts;
✘ Quasi –
contract ;
✘ Acts or
omissions
punished by
Sources of obligations (Art. 1157)

1. Law
 A rule of conduct, just and obligatory, laid
down by legitimate authority for common
observance and benefit.

 Obligations imposed by the law itself

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Sources of obligations (Art. 1157)

Examples:
1. The National Internal Revenue Code (NIRC)
- provides for the payment of taxes
2. The Family Code of the Philippines (see Art.
195, Family Code.)
- provides for the obligation to support one’s
family

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 Sources of obligations (Art. 1157)

2. Contracts
obligation arising from the stipulation of the
parties (Art. 1306).

Example:
✘ The obligation of the client to pay the professional
fee of his/her accountant by virtue of a service
agreement.

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Sources of obligations (Art. 1157)

Examples:
1. Contract of lease
- provides for the payment of rental by the
lessee
- the 2 parties are lessor and lessee
2. Contract of sale
- requires the seller to deliver the thing sold
and the buyer to pay the price
- the 2 parties are seller and buyer

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 Sources of obligations (Art. 1157)

3. Quasi-contracts
QUASI – Latin term which means “as if”

- obligation arising from lawful, voluntary, and

unilateral acts that are enforceable so that no person
shall be unjustly enriched or benefited at the expense of
another (Art. 21 42)

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Sources of obligations (Art. 1157)

Examples:
1. The obligation to return the goods mistakenly
delivered.

2. the obligation to return money paid by mistake

or which is not due. (Art. 2154.)

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 Sources of obligations (Art. 1157)
4. Crimes or Acts or omissions punished by law
✘ obligations arising from civil liability as a
consequence of a criminal offence (Art. 1161)

✘ also known as delicts

Examples:

The obligation of a thief to return the car stolen by him.

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Sources of obligations (Art. 1157)

5. Quasi-delicts
- Also known as “Quasi Ex – delicto”
- Equivalent of the term “tort” in Anglo – American
law
- Obligation arising from damage caused to another
through an act or omission, there being fault or
negligence, but no contractual relation exists between
the parties (Art. 2176).

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 Sources of obligations (Art. 1157)

Examples

- The proprietor of a building or structure is responsible for

the damages resulting from its total or partial collapse, if
it should be due to the lack of necessary repairs (Art.
2190)

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 ART. 1158

ART. 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 fore-seen, by the
provisions of this Book. (1090)

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Art. 1158 – Obligations derived from law

Legal Obligation
Obligations derived from law are not presumed. Only those
expressly determined in the Civil Code or in special laws are
demandable.

Specials laws are those not contained in the Civil Code.

Examples: Revised Penal Code, National Internal Revenue

Code, Securities Regulation Code, Revised Corporation
Code, Negotiable Instruments Law, Insurance Code, Labor
Code.

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 Article 1159
Art.1159. Obligations
arising from contracts
have the force of law
between the contracting
parties and should be
complied with in good
faith.

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 Art. 1159 – Obligation arising from
contracts
Contractual Obligations
Contract

A meeting of minds between two persons whereby one binds

himself, with respect to the other, to give something or to
render some service. ( Art. 1305).

Binding of a contract
Obligations arising from contracts have the force of law
between the contracting parties and should be complied with
in good faith.

Example: marriage contract

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 ART. 1160.
Obligations derived
from quasi-
contracts shall be
subject to the
provisions of
Chapter 1, Title
XVII, of this Book.
(n)
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 DEFINITION Quasi-Contract

A quasi contract is a contract that exists by

order of a court, not by agreement of the
parties. Courts create quasi-contracts to
avoid the unjust enrichment of a party in a
dispute over payment for a good or
service.

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Kinds of Quasi-
contract
• Negotiorum gestio
• Solutio indebiti

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 Negotiorum gestio

Is the voluntary management of the

property or affairs of another without
the knowledge or consent of the latter.
(Art. 2144.)

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 Negotiorum gestio
Example:

if through the efforts of X, a neighbor, the house of

Y was saved from being burned, Y has the
obligation to reimburse X for the expenses X
incurred although Y did not actually give his
consent to the act of X in saving his house on the
principle of quasi-contract

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 Negotiorum gestio
Examples:
D and C are the owners of adjacent vegetable farms. One day,
D was not around to tend to his farm. When C noticed that D
had not been around for almost a week, he himself cultivated
the soil and place fertilizer on it, watered the plants, removed
the weeds and wilted leaves. C incurred necessary and useful
expenses in the process.
D must reimburse C for such expenses. Otherwise, he will be
unjustly enriching himself at C’s expense.

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 . Solutio indebiti

- Refers to payment by mistake of an obligation which

was not due when paid .
Examples:
- D, the payee of check for P5,000, cashes it with the
drawee bank, but the teller gives him P6,000 by
mistake.

- D is duty bound to return the excess of P1,000 to the

bank. Otherwise, he will be unjustly enriching
himself at the bank’s expense.

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 QUASI-
CONTRACTS
(art 1160, NCC )
 Sources of obligations (Art. 1157)

Examples:
If D steals the carabao of C, ‘s civil liability consists of:
1. Returning the carabao
2. Paying for its value if he cannot return it
3. 3. indemnifying the consequential damages suffered not only by C but also those
of his family or by a third person by reason of the crime.

This will be in addition to any prison term or other penalty that may be imposed upon
him by the court.

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 Sources of obligations (Art. 1157)

Elements of Negligence
1. The fault or negligence of the defendant;
2. The damage suffered or incurred by the plaintiff; and
3. The relation of cause and effect between the fault or
negligence of the defendant and the damage incurred
by the plaintiff.
Defendant – is the person sued in a civil proceeding
Plaintiff – is the party who brings a civil suit in a court of law

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 Sources of obligations (Art. 1157)

1. Restitution
The thing itself shall be restored, even though it be found in the possession of a third
person who has acquire it by lawful means, saving to the latter his action against the
proper person, who may be liable to him.
2. Reparation of the damage caused
The court shall determine the amount of damage, taking into consideration the price of
the thing, whenever possible, and its special sentimental value to the injured party, and
reparation shall be made accordingly.
3. Indemnification for consequential damages
Indemnification for consequential damages shall include not only those caused the
injured party, but also those suffered by his family or by a third person by reason of
the crime.

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OTHERS ( ART.
2164 to 2175)
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Want big impact? Use big image.

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Want big impact? Use big image.

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Want big impact? Use big image.

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CRIMES OR DELICT
(ART. 1161)
 Art. 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. (1092a)

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 Scope of civil liability

✘ The extent of the civil liability arising from

crimes is governed by the Revised Penal Code
and the Civil Code.

This civil liability includes:

✘ (1) Restitution;
✘ (2) Reparation for the damage caused; and
✘ (3) Indemnification for consequential damages.
(Art. 104, Revised Penal Code.)

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 EXAMPLE:
X stole the car of Y. If X is convicted, the
court will order X: (1) to return the car (or
to pay its value if it was lost or destroyed);
(2) to pay for any damage caused to the
car; and (3) to pay such other damages
suffered by Y as a consequence of the
crime.

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 EXPLANATION

Where the trial court convicts an accused of a

crime, without, however, ordering payment of any
indemnity, it has been held that the Supreme Court,
on appeal, may modify the decision by ordering
indemnification of the offended party pursuant to
Articles 100, 104(3),and 107 of the Revised Penal
Code.

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Quasi-delict
(Art.1162)
ART. 1162. Obligations derived from
quasi-delicts shall be governed by the
provisions of Chapter 2, Title XVII of
this Book, and by special laws.
(1093a)

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 Obligations arising from quasi-
delicts.

A quasi-delict is an act or omission by a person

(tort feasor) which causes damage to another in
his person, property, or rights giving rise to an
obligation to pay for the damage done, there
being fault or negligence but there is no pre-
existing contractual relation between the parties.
(Art. 2176.)

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 Requisites of quasi-delict.
Before a person can be held liable for quasi-delict, the
following requisites must be present:

(1) There must be an act or omission by the defendant

(2) There must be fault or negligence of the defendant

(3) There must be damage caused to the plaintiff

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 Requisites of quasi-delict.

(4) There must be a direct relation or connection

of cause and effect between the act or omission
and the damage; and

(5) There is no pre-existing contractual relation

between the parties

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 Crime distinguished from quasi-
delict
✘ (1) In crime or delict, there is criminal or malicious intent or
criminal negligence, while in quasi-delict, there is only
negligence;

✘ (2) Crime affects public interest, while quasi-delict concerns

private interest;

✘ (3) In crime, there are generally two liabilities: criminal and

civil, while in quasi-delict, there is only civil liability;
✘ (4) In crime or delict, the purpose is punishment, while in
quasi-delict, indemnification of the offended party;

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 Crime distinguished from quasi-
delict
✘ (5) Criminal liability can not be compromised or settled by
the parties themselves, while the liability for quasi-delict
can be compromised as any other civil liability;
✘ (6) In crime, the guilt of the accused must be proved
beyond rea-sonable doubt, while in quasi-delict, the fault
or negligence of the defendant need only be proved by
preponderance of evidence; and
✘ (7) In crime, the liability of the person responsible for the
author of the negligent act or omission is subsidiary, while
in quasi-delict, it is direct and primary.

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Obligation to give
( Art. 1163-
1166, )
 ART. 1163

Every person obliged to give

something is also obliged to take care
of it with the proper diligence of a
godfather of a family, unless the law or
the stipulation of the parties requires
another standard of care. (1094a

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Meaning of specific or determinate
thing

A thing is said to be Specific or determinate

when it is particularly designated or
physically segregated from all others of the
same class.(Art. 1459.

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 EXAMPLES:

✘ (1) The watch I am wearing.

✘ (2) The car sold by X.
✘ (3) My dog named “Terror.”
✘ (4) The house at the corner of Rizal and Del
Pilar Streets.
✘ (5) The Toyota car with Plate No. AAV 344. (6)
This cavan of rice.
✘ (7) The money I gave you

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Meaning of generic or indeterminate
thing

A thing is generic or indeterminate when it

refers only to a class or genus to which it
pertains and cannot be pointed out with
particularity.

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 EXAMPLES:

✘ (1) a Bulova calendar watch.

✘ (2) a 2006 model Japanese car.
✘ (3) a police dog.
✘ (4) a cavan of rice.
✘ (5) the sum of P10,000.00.

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 Specific thing and generic thing
distinguished
1) A determinate thing is 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. (Art. 1244.)
2) (2) A generic thing is identified only by its
specie. The debtor can give anything of the
same class as long as it is of the same kind

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 To deliver the
fruits of the thing
(Article 1164)

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 ART. 1164. 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. (1095) 52
 Kinds of fruits
1.Natural fruits – they’re the
spontaneous products of the soil and
the young and other products of
animals (Art. 442)
Examples:
1. The tress that grow naturally on
the soil without the intervention of
human labour
2. The colt delivered by a mare
3. Eggs and chicks of a chicken
2. Industrial fruits – they
refer to those produced by land of
any kind through cultivation or labor
(Art. 442)
Examples:
1.rice, corn and other crops
produced through the intervention of
human labour 2.vegetables produced
by lands through cultivation or
labour
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 Kinds of fruits

3. Civil fruits – refer to fruits which are the

result of a juridical relation (Art. 442)

Example:
rent of a building, price of lease of land and other
property, and the amount of perpetual or life
annuities.

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 Meaning of personal right and real right
1. Personal right ( also
called just in person or jus
ad em)
- this is a right that may be
enforced by one person on
another such as the right of
the creditor to demand the
delivery of the thing and its
fruits from the debtor
2. Real right ( also called jus in re)
-this refers to the right or power
over a specific thing such as
possession or ownership, which is a
right enforceable against the whole
world.
- this is the right acquired by the
creditor over he thing and its fruits
when they have been delivered to
him.
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 EXAMPLE:

X is the owner of a parcel of land under a

Torrens title registered in his name in the
Registry of Property. His ownership is a
real right directed against everybody.
There is no definite passive subject.

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 EXPLANATION
✘ If the land is claimed by Y who takes
possession, X has a personal right to recover
from Y, as a definite passive subject, the
property.
✘ If the same land is mortgaged by X to Z, the
mortgage, if duly registered, is binding against
third persons. A purchaser buys the land subject
to the mortgage which is a real right.

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ARTICLE 1165
ART. 1165. When what is to be delivered is a determinate
thing, the creditor, in addition to the right granted him by
Article1170, 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

something 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. (1096)

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 Remedies of creditor in real obligation

1. In a specific real obligation (obligation to deliver a

determinate thing), the creditor may exercise the following
remedies or rights in case the debtor fails to comply with his
obligation:

(a) demand specific performance or fulfillment (if it is still

possible) of the obligation with a right to indemnity for
damages

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 Remedies of creditor in real obligation

(b) demand rescission or cancellation (in certain

cases) of the obligation also with a right to
recover damages (Art. 1170.); or

(c) demand the payment of damages only (see

Art. 1170.)where it is the only feasible remedy.

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 Remedies of creditor in real obligation

(2) A generic real obligation(obligation to deliver

a generic thing),on the other hand, can be performed by
a third person since the object is expressed only
according to its family or genus. It is thus not necessary
for the creditor to compel the debtor to make the
delivery although he may ask for performance of the
obligation. In any case, the creditor has a right to
recover damages under Article 1170 in case of breach
of the obligation.

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To deliver the
accessions and
accessories
(Art.1166)
 ART. 1166. The obligation to give a
determinate thing includes that of
delivering all its accessions and
accessories, even though they may not
have been mentioned. (1097a

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 Meaning of accessions and
accessories
Examples:
Accessions
1. house or trees on a land

are the fruits of, or additions 2. rents of a building

to, or improvements upon, a
3. profits or dividends
thing (the principal) accruing from shares of
stocks; etc.

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 Meaning of accessions and
accessories

Accessories Examples:

are things joined to, or 1.key of a house

included with, the 2. frame of a picture
principal thing for the 3.bracelet of a watch
latter’s embellishment, 4.machinery in a factory
better use, or completion, 5. bow of a violin.

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To deliver the thing itself (ART. 1244)

ART. 1244. The debtor of a thing cannot compel the

creditor to receive a different one, although the latter
may be of the same value as, or more valuable than that
which is due. In obligations to do or not to do, an act or
forbearance can-not be substituted by another act or
forbearance against the obligee’s will. (1166a)

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THANK YOU
GROUP 2
JULICA TURBANOS
DAISYREE CATUBAY
ZHANNEL LOTERTE
JOMARIE MILLARE

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