OBLIGATIONS

General Provisions
OBLIGATION

■ An Obligation is a juridical necessity to give, to do or not to do. (Art. 1156 of the New Civil Code)

■ One is bound in favor of another to render something:

– Giving (to give)
– Doing a certain act (to do)
– Not doing a certain act (not to do)
WHAT IS JURIDICAL NECESSITY

■ In case of noncompliance, the courts of justice may be called upon by the aggrieved
party to enforce its fulfillment or, in default thereof, the economic value that it
represents.
– This is the effect for failure to comply with the obligation.
ESSENTIAL REQUISITES OF AN
OBLIGATION (P.A.O.L)
■ 1. PASSIVE SUBJECT
■ 2. ACTIVE SUBJECT
■ 3. OBJECT OR PRESTATION
■ 4. JURIDICAL OR LEGAL TIE
ESSENTIAL REQUISITES OF AN
OBLIGATION (P.A.O.L)
■ 1. PASSIVE SUBJECT
– The person who is bound to fulfill the obligation.
– He/she is the person has the duty to give, to do, or not to do.

■ 2. ACTIVE SUBJECT
– The person who has the right to demand the fulfillment of the obligation.
– He/she is the person who can ask for the fulfillment of the duty to give, to do, or not to
do.
ESSENTIAL REQUISITES OF AN
OBLIGATION (P.A.O.L)
■ 3. OBJECT OR PRESTATION
– The conduct required to be observed.
– It may consist in giving, doing, or not doing.

■ 4. JURIDICAL OR LEGAL TIE

– It is which that binds or connects the parties to the obligation.
– In other words, it is the source.
EXAMPLE

■ X and Y entered into a contract wherein X binds himself to pay Y Php 1,000.00 for the
services the latter rendered to the former.

■ 1. PASSIVE SUBJECT – X
■ 2. ACTIVE SUBJECT – Y
■ 3. OBJECT OR PRESTATION – SERVICES RENDERED by Y to X
■ 4. JURIDICAL OR LEGAL TIE – CONTRACT OF SERVICE
QUESTION
■ KIA and RENZO went to Center Mall to eat tempura. However, after eating, when they
were about to pay for the tempura they ate, they realized that their pockets are empty.
They searched all their belongings to look for cash. However, even with their earnest
effort to look for cash, it proved futile. Lo and behold, their classmate, Yari was passed
by. They immediately went near her and asked her if they could borrow Php 100.00
pesos, which Yari immediately agreed to do. What is the PASSIVE SUBJECT, ACTIVE
SUBJECT, OBJECT OR PRESTATION, and THE JURIDICAL TIE in this case?

■ Passive Subject – Kia and Renzo

■ Active Subject – Yari
■ Object or Prestation – payment of Php 100.00
■ Juridical Tie - Contract of Loan
FORMS OF OBLIGATION

■ ORAL
■ WRITING
■ PARTLY ORAL
■ PARTLY WRITING
OBLIGATION RIGHT WRONG
Act or performance which the Power of a person to enforce the An act or omission of one party
law will enforce act or performance in violation of a legal
right/rights of another.
KINDS OF OBLIGATION
ACCORDING TO THE SUBJECT
MATTER
■ 1. REAL OBLIGATION
– Obligor must deliver to the obligee.
– Ex. X(Obligor) binds himself to deliver a piano to Y (Obligee)

■ 2. PERSONAL OBLIGATION
– The subject matter is an act to be done or not to be done.
– Ex:
■ Positive Obligation - X(Obligor) binds himself to repair the piano of Y (Obligee)
■ Negative Obligation – X (Obligor) binds himself not to build a fence on a certain
portion of his lot in favor of Y who is entitled to a right of way over said portion.
ARTICLE 1157

■ Obligations arise from:

– Law
– Contracts
– Quasi-contracts
– Acts or omissions punished by law; and
– Quasi-delicts
ARTICLE 1157
■ Law – when they are imposed by law itself.
– Pay taxes
– Support your children
– Shall not sell what you do not own

■ Contracts – when they arise from the stipulation of the parties.

– Contract of Loan
– Contract of Service
■ Quasi-contracts – when they arise from lawful, voluntary, and unilateral acts which are
enforceable to the end that no one shall be unjustly enriched or benefited at the expense of
another.
- The obligation to return money paid by mistake or which is not due. (Solutio Indebiti)
ARTICLE 1157
■ Crime or acts or omissions punished by law – when they arise from civil liability which is the
consequence of a criminal offense.
– EVERY MAN CRIMINALLY LIABLE IS ALSO CIVILLY LIABLE (Art. 100, RPC)

■ Quasi-delicts or torts – 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

- The obligation of the head of a family that lives in a building or a part thereof to answer for
damages caused by things thrown or falling from the same.
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.
■ These talks about the obligations arising from law.
■ It cannot be presumed.
■ To be demandable, they must be clearly set forth in the law.
ARTICLE 1159
■ OBLIGATIONS ARISING FROM CONTRACTS HAVE THE FORCE OF LAW
BETWEEN THE CONTRACTING PARTIES AND SHOULD BE COMPLIED WITH
IN GOOD FAITH.
■ This article talks about obligation arising from contracts.
■ Both parties must comply the provisions or agreements made in the contract.
■ These agreements must be complied in good faith.
■ If it is a void contract, then there is no contract to talk at all that should be complied in
good faith.
ARTICLE 1160
■ OBLIGATIONS DERIVED FROM QUASI-CONTRACTS SHALL BE SUBJECT TO
THE PROVISIONS OF CHAPTER 1, TITLE XVII OF THIS BOOK.

■ This articles talks about quasi-contracts.

■ Quasi contract is that juridical relation resulting from 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.
■ Examples:
– Negotiorum gestio – voluntary management of the property or affairs of another
without the knowledge or consent of the latter.
– Solutio indebiti - juridical relation which is created when something is received
when there is no right to demand it and it was unduly delivered through mistake.
ARTICLE 1161
■ This article talks about civil liabilities arising from criminal liability.
– Every person criminally liable is also civilly liable for damages suffered by the
complainant.

■ However, not all criminal actions has a corresponding civil liability.

– Ex. Illegal gambling, violation of traffic rules.

■ Scope of Civil Liability

– 1. Restitution – the act of giving back to a person something that was lost or
stolen, or of paying them money for the loss.
– 2. Reparation – the making of amends for a wrong one has done, by paying money
to or otherwise helping those who have been wronged.
– 3. Indemnification – compensating a person for damages or losses they have
incurred or will incur related to a specific accident, incident or event.
ARTICLE 1162
■ This article talks about obligations arising from Quasi-Delicts
– Quasi-delict is an act or omission by a person 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 contract relation
between the parties.

■ Requisites of quasi-delict
– There must be an act or omission
– There must be fault or negligence
– There must be damage caused
– There must be a direct relation or connection of cause and effect between the act
or omission and the damage; and
– There is no pre-existing contractual relation between the parties