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OBLIGATIONS: General Provisions, Nature and Effect

ARTICLE 1156 DEFINITIONS Obligation (n.) -derived from the Latin word obligatio which means tying or binding -a juridical necessity to give, to do or not to do Debtor/Obligor - he who has the duty to fulfill the obligation Creditor/Obligee - person entitled to demand the fulfillment of the obligation; he who has a right Civil Obligations - obligations which give to the creditor or obligee a right under the law to enforce their performance in courts of justice Right the power which a person has under the law, to demand from another person any prestation (i.e. payment of money; a toll or duty; rendering of a service) Wrong - an act or omission of one party in violation of the rights of another. The term injury can also be used. FOUR(4) ESSENTIAL REQUISITES OF AN OBLIGATION 1. A passive subject (debtor or obligor) 2. An active subject (creditor of obligee) 3. Object or Prestation (subject matter) the conduct required to be observed by the debtor 4. A juridical or legal tie (efficient cause) that which binds or connects the parties to the obligation

1. Real Obligation - subject matter is a thing; obligation to give 2. Personal Obligation subject matter is an act to be done or not to be done a. Positive personal obligation - to do or render service b. Negative personal obligation - not to do ARTICLE 1157 Obligations arise from: 1. Law imposed by law itself (e.g. pay taxes; support ones family) 2. Contracts arise from stipulation of the parties; there is agreement and consent (e.g. repay a loan or debt by virtue of an agreement) 3. Quasi Contracts arise from unlawful, voluntary and unilateral acts; no one can be unjustly enriched at the expense of another; no consent Kinds of quasi-contracts (ARTICLE 1160): a. Negotiorum gestio - voluntary management of the property or affairs of another b. Solution indebiti something is received when there is no right to demand it and it was delivered through mistake 4. Crimes punishable by law; arise from civil liabilities (e.g. obligation of thief to return stolen car) 5. Quasi-delicts an act or omission causing damage to another; obligation to pay for the damage Requisites of quasi-delict (ARTICLE 1162): a. An act or omission b. Fault of negligence c. Damage caused d. Direct relation of act/omission and damage e. No pre-existing contractual relation Crimes VS Quasi-Delict CRIME QUASI-DELICT Criminal intent Negligence Punishment Indemnification Affects public Concerns private interest interest Has criminal AND ONLY civil liabilities civil liabilities Cannot be settled by can be compromised

KINDS OF OBLIGATION

the parties themselves guilt must be proved beyond reasonable doubt

as any other civil liability Proved by preponderance (i.e. superior or greater weight) of evidence

Actually, there are only two (2) sources: law and contracts, because obligations arising from quasi-contracts, crimes, and quasi-delicts are really imposed by law. ARTICLE 1159 Contract - meeting of minds between two persons whereby one binds himself, with respect to the other, to give something or render service 1. Binding force - Obligations arising from contracts have the force of law between the contracting parties; contract cannot be valid if it is against the law. 2. Requirement of a valid contract - not contrary to law, morals, good customs, public order, and public policy. Compliance in good faith - performance in accordance with the terms of the contract or agreement. Sincerity and honesty must be observed to prevent one party from taking unfair advantage over the other.