OBLIGATIONS AND CONTRACTS

I. Obligations
A. General Provisions
1. Concept and Birth of Obligation (1156)
Art. 1156. An obligation is a juridical necessity to give, to do or not
to do. (n)
2. Elements of Obligation
a. Active subject
b. Passive subject
c. Object or prestation
d. Efficient cause
3. Kinds of Obligations according to subject
a. Real
Performance)

Obligation-obligation

to

five/deliver

(Remedy:

Specific

b. Personal Obligation- obligation to do or

not to do -> Involuntary Servitude (Sec. 10, Article
3, 1987 Constitution)
4. Sources of Obligation
Art. 1157. Obligations arise from:
(1) Law- obligations ex lege
(2) Contracts- obligations ex contractu
(3) Quasi-contracts- obligations ex quasi-contractu
(4) Acts or omissions punished by law- obligations ex maleficio or
ex delicto
(5) Quasi-delicts. (1089a)- obligations ex quasi-delicto or ex quasimaleficio

i. Law (1158)- Obligation Ex Lege

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
foreseen, by the provisions of this Book. (1090)
Ex. Duty to support (Art. 291, Civil Code)

Duty to pay taxes (NIRC)

Cases:
Bautista v F. O. Borromeo, Inc. (30 SCRA 119)

Worksmen Compensation Act, Section 2 (Law)

Section 6- Virtue of Subrogation- if compensation is claimed and

awarded, and the employer pays it, the employer becomes
subrogated to and acquires, by operation of law, the workers
rights against the tortfeasor.

2. Pelayo v Lauron

Law: Obligation to support

Article 1089, Civil Code- obligations are created by law, by

contracts, by quasi-contracts, and by illicit acts and omissions or
by those in which any kind of fault or negligence occurs

Article 1090 & 1091

Art. 142 & 143

Art. 1088

3. Martinez v Martinez
Facts: Father and son

Art. 609, Civil Code- various ways in which the title of the
property may be acquired

Art. 1090, CC- obligations derived from the law are not to be
presumed, only those expressly provided for in this code or in
special laws are enforceable

Art. 161

No law governs, must be expressly stated

ii. Contracts (1159; 1305)- Obligations Ex Contractu

Art. 1159. Obligations arising from contracts have the force of
law between the contracting parties and should be complied
with in good faith. (1091a)
compliance in good faith- we must interpret not by the letter that
killeth but by the spirit that giveth life
Art. 1305. A contract is a meeting of minds between two
persons whereby one binds himself, with respect to the other,
to give something or to render some service. (1254a)

Art. 1306. The contracting parties may establish such

stipulations, clauses, terms and conditions as they may deem
convenient, provided they are not contrary to law, morals,
good customs, public order, or public policy. (1255a)
Obligations v Contracts
Hence, while a contract, if valid, always results in obligations, not all
obligations come from contracts. A contract always presupposes a
meeting of the mind; this is not necessarily true for all kinds of
obligations.
Innominate Contracts Contratos Innominados
a. Do ut des- I give that you may give
b. Do ut Facias- I give that you may do
c. Facio ut des- I do what you may give
d. Facio ut Facias- I do that you may do
Cases:
4. Perez v Pomar
Facts: Interpreter

Contracts resulting from an implied consent of the parties are

valid and enforceable.

Where one has rendered services to another, and these services

are accepted by the latter, in the absence of proof that the
services was rendered gratuitously, an obligation results to pay
the reasonable worth of the services rendered upon the implied
contract of hiring.

Facio ut des.

5. Maritime Company of the

Commission/ Reparations Mission

Philippines

Reparations

Parties can stipulate terms not contrary to law

Reparations Law(RA 1789), Section 11 as amended, The

insurance, ocean freight and other expenses incident to
importation should be paid by the end-user in accordance with
the usual business practices

The law is deemed written in every contract.

Regardless of the voluntariness from which it was executed

6. National Housing Authority v Court of Appeals

Facts: Lot, non-perfection of contract

The offer of the NHA to sell the subject property, as embodies in

Resolution No. 2126, was similarly not accepted by the
Respondent. Thus, the alleged contract involved in this case
should be more accurately denominated as inexistent. There
being no concurrence of the offer and acceptance, it did not
pass the stage of generation to the point of perfection. As such,
it is without force and effect from the very beginning or from its
very incipiency, as if it had never been entered into, and hence,
cannot be validated either by lapse of time or ratification. Equity
cannot give validity to avoid contract and this rule should apply
with equal force to inexistent contracts.