OBLIGATIONS

General Provisions
Art 1156. An Obligation is a juridical necessity to give, to do or not to do.
++ obligatio tying or binding
++ Juridical necessity in case on noncompliance, the courts of justice may be
called upon by the aggrieved party to enforce its fulfillment or in default thereof, the
economic value it represents.
++ May also be liable for damages for compensation for injury or harm
++ Civil Obligations give the creditor or oblige a right under the law to
enforce their performance in courts of justice. Based on positive law.
++ Natural obligations based on equity and natural law; do not grant a right of
action to enforce their performance; in case of voluntary fulfillment by the debtor,
the latter may not recover what has been delivered or rendered.
Essential Requisites of an Obligation
1. Passive subject debtor, obligor; bound to the fulfillment of an obligation; has
the duty
2. Active Subject creditor, obligee; entitled to demand the fulfillment; has the
right
3. Object or prestation subject matter of the obligation; conduct required to be
observed by the debtor; GIVING, DOING, NOT DOING
4. Juridical or legal tie efficient cause; binds or connects the parties to the
obligation; easily determined by knowing the source.
++ Forms of Obligation manner in which the obligation is manifested or
incurred, ORAL, WRITING, PARTLY ORAL AND IN WRITING
General Rule: The law does not require any form in obligation arising from
contracts for their validity or binding force.
Obligation, Right, Wrong Distinguished
++ Obligation act or performance which the law will enforce
++ Right power to demand from another any prestation
++ Wrong act or omission of one party in violation of legal rights of another
Essential Elements of legal wrong
a. legal right in favor of a person (creditor/ obligee/ plaintiff)
b. correlative legal obligation on the part of another (debtor/ obligor/
defendant); to respect or or not to violate the said right.
c. act or omission by the latter in violation of the said right with resulting
injury or damage to the former.
++ A wrong or cause of action only arises at the moment a right has been
transgressed or violated
Kinds of Obligation according to Subject Matter
1. Real Obligation (obligation to give) subject matter is a thing which the
obligor must deliver
2. Personal Obligation (to do or not to do) act to be done or not to be done
2 kinds:
a. Positive Personal Obligation- to do or to render service
b. Negative personal Obligation not to do (naturally includes obligation
NOT TO GIVE)

Art. 1157 Obligation arise from:

1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omission punished by law
5. Quasi-delicts
Source of Obligations
1. Law imposed by law itself
2. Contracts stipulation of the parties
3. Quasi-contracts arise from lawful, voluntary and unilateral acts which are
enforceable to the end that no one shall be unjustly enriched at the expense of
another. May be considered arising from law.
4. Crimes/ acts/ omissions punished by law arise from civil liability,
consequence of a criminal offense
5. Quasi-delicts/ torts arise from damage caused to another thru an act or
omission, there being fault or negligence, but NO CONTRACTUAL relation exist
between the parties.
Classification of Sources
1. Emanating from LAW
2. Emanating from PRIVATE ACTS
a. LICIT ACTS contracts and quasi-contracts
b. ILLICIT ACTS punishable in case on delicts or crime, or not punishable in
case of quasi-delicts or torts
++Actually, there are only 2 sources, law and contracts, because obligations
arising from quasi-contracts, delicts and quasi-delicts are really imposed by LAW.
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 provision of this book.
++Not presumed because they are considered a burden upon the obligor.
++ Special laws refer to all other laws not contained in the Civil Code
Art 1159. Obligations arising from contracts have the force of law between
the contracting parties and should be complied with in good faith.
++ Contractual Obligations, obligations arising from contracts or voluntary
agreements
++ Contract meeting of minds between 2 persons whereby one binds himself,
with respect to the other to give something or to render some service.
++ Binding force, have the force of law between the contracting parties; same
binding effect of obligations imposed by law. Contract must be valid.
++ Requirement of a valid contract. A contract is valid if it is not contrary to
law, morals, good customs, public order, and public policy.
++ In the eyes of the law, a void contract does not exist. No obligations will arise.
++ Breach of Contract, may be violated in whole or in part. Party fails or refuses
to comply, without legal reason or justification.
++ Compliance in good faith, compliance or performance in accordance with the
stipulation or terms of the contract or agreement. Sincerity, honesty;
Noncompliance constitute unjust enrichment on the violator.

Art 1160. Obligations derived from quasi-contracts shall be subject to the

provisions of Chapter 1, Title XVII of this book.
++ Quasi-contracts contracts implied in law.
++ Quasi-contract 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 shall be unjustly enriched at the expense of another. No consent;
supplied by the fiction of law, the law considers the parties as having entered into a
contract; to prevent injustice.
++ Kind of quasi-contracts
a. Negotiorum Gestio voluntary management of property or affairs of
another without the knowledge or consent of the latter.
b. Solutio Indebiti something is received when there is no right to
demand it and it was unduly delivered through mistake.
Requisites
1. No right to receive the thing delivered
2. The thing was delivered through mistake
Art 1161. Civil obligations arising from criminal offenses shall be governed
by the penal laws, subject to the provisions of Art 2177, and of the
pertinent provisions of Chapter 2, Preliminary Title, on Human Relations,
and of Title XVIII of this Book, regulating damages.
++ Every person criminally liable is civilly liable.
++ A person not criminally responsible may still be liable civilly.
Scope of Civil Liability
1. Restitution return or pay its value
2. Reparation for the damage caused pay for any damage caused to the
3. Indemnification for consequential damages pay for such other damages
suffered as a consequence of the crime
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.
++ Quasi-delicts or torts acts or omission by a person which cause 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.
++ Requisites of Quasi-delicts
1. Act or omission
2. Fault or negligence
3. Damage caused
4. Direct relation or connection of cause and effect between the act or
omission and the damage
5. No pre-existing contractual relation between the parties
CRIME
Criminal or malicious intent or criminal
negligence
The purpose is punishment

QUASI-DELICT
Only negligence
Indemnification of the offended party

Affects public interest

Concerns private interest
Criminal and Civil Liabilities
Civil Liability
Criminal liability cannot be
Can be compromised
compromised
The guilt of the accused must be
Fault or negligence need only be proved
proved beyond reasonable doubt.
by preponderance of Evidence.
Nature and Effect of Obligations
Art 1163. Every person obliged to give something is also obliged to take
care of it with the proper diligence of a good father of a family, unless the
law or the stipulation of the parties requires another standard of care.
++ The above provision refers to an obligation specific or determinate thing
++ Specific thing particularly designated or physically segregated others of the
same class
++ Generic or indeterminate thing refers only to a class or genus to which it
pertains and cannot be pointed out with particularity
Specific thing and Generic thing distinguished
++ The debtor cannot substitute a determinate thing with another although the
latter is of the same kind and quality without the consent of the creditor.
++ Generic thing. The debtor can give anything of the same class as long as it is of
the same kind.
Duties in Obligation to Give (Real) a determinate thing
1. Preserve the thing the obligor has an incidental duty to take care of the thing
due with the diligence of a good father of a family pending the delivery, even if it is
not stipulated.
a. Diligence of a good father of a family ordinary care
b. Another standard care law or stipulation
e.g. common carrier utmost/ extraordinary diligence
++ The parties may agree upon diligence which is more or less than that of a good
father of a family but it is contrary to public policy to stipulate for absolute
exemption from liability of the obligor for any fault or negligence on his part.
c. Factors to be considered The diligence required necessarily depends upon
the nature of the obligation and corresponds with the circumstances of the
person, of the time, and of the place.
General Rule: The debtor is not liable if his failure to preserve the thing is
not due to his fault or negligence but to fortuitous events or force majeure
2. Deliver the fruits of the thing Art 1164
3. Deliver the accessions and accessories Art 1166
4. Deliver the thing itself
5. Answer for damages in case of non-fulfillment or breach.
Duties in Obligation to Deliver a Generic Thing
1. To deliver the thing which is of the quality intended by the parties taking into
consideration the purpose of the obligation and other circumstances.
2. To be liable for damages in case of fraud, negligence, or delay, in the
performance of his obligation, or the contravention of the tenor thereof.

Art 1164. The creditor has a right to the fruits of the thing from the time
of the obligation to deliver arises. However, he shall acquire no real right
over it until the same has been delivered to him.
Different kinds of Fruits
1. Natural Fruits spontaneous product of soil, and the young and other products
of animal; without intervention of human labor
2. Industrial Fruits produced by land of any kind thru cultivation or labor.
3. Civil fruits derived by virtue of a juridical relation.
Right of Creditor to the Fruits
++ The creditor is entitled to the fruits of the thing to be delivered from the time
the obligation to make delivery arises.
When the obligation to deliver arises
1. The perfection of the contract. Meeting of minds between the parties.
2. If subject to suspensive condition or period, it arises upon the fulfillment
of the condition or arrival of the term.
3. In contract of sale, arises from the perfection of the contract even if the
obligation is subject to a suspensive condition or period where the price
has been paid.
4. In obligation to give arising from law, quasi-contract, delicts, quasi-delicts, the
time of performance is determined by the specific provisions of the law applicable.
Personal Right and Real Right
1. Personal Right right or power of a person to demand from another, as a
definite passive subject, the fulfillment of the latters obligation to give, to do, or not
to do.
2. Real Right right or interest of a person over a specific thing, without a definite
passive subject against whom the right may be personally enforced.
Personal Right and Real Right Distinguished
1. Personal Right- with definite active subject and passive subject
Real Right Definite active subject only
2. Personal binding or enforceable only against a particular person
Real Against the whole world.
Ownership Acquired by delivery
++ Mere agreement of the terms thereof does not effect transfer of ownership of
the thing sold in the absence of delivery, actual or constructive, of the thing.
++ He shall acquire no real right over it until the same has been delivered to
him.
Art 1165. When what is to be delivered is a determinate thing, the
creditor, in addition to the right granted him by Art 1170, 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 same thing to two or
more persons who do not have the same interest, he shall be responsible
for fortuitous event until he has effected the delivery.
Remedies of creditor in real obligation

1. Specific real obligation

a. demand specific performance or fulfillment (if still possible) of the
obligation with a right to indemnity for damages.
b. demand rescission or cancellation (in certain cases) of the obligation
also with a right to recover damages
c. demand payment of damages only, where it is the only feasible remedy.
2. Generic real obligation can be performed by a third person; right to recover
damages
2 Instances when a fortuitous events does not exempt the debtor from
responsibility (par 3)
1. Debtor delays
2. Has promised delivery to separate creditors
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.
Accessions and Accessories
1. Accessions fruits of a thing, additions to or improvements upon a thing
2. Accessories joined to or included with the principal thing for the latters
embellishment, better use of completion
Right of creditor to accessions and accessories
GR: All accessions and accessories are considered included in the obligation to
deliver a determinate thing although they may not have been mentioned.
In order to be excluded, there must be a stipulation to that effect.
++ An obligation to deliver the accessions or accessories of a thing does not include
the latter.
Art 1167. If a person obliged to do something fails to do it, the same shall
be executed at his cost.
This same rule shall be observed if he does it in contravention of the tenor
of the obligation. Furthermore, it may be decreed that what has been
poorly done be undone.
Situation in Art 1167, Obligation to do, perform an act, render service.
(Positive personal obligation)
1. Debtor fails to perform an obligation to do.
2. Debtor performs an obligation to do but contrary to the terms.
3. Debtor performs an obligation to do but in a poor manner.
Remedies of creditor in Positive personal obligation
1. Fails to comply
a. have the obligation performed by himself, or by another, unless personal
considerations are involved, at the debtors expense.
b. to recover damages
2. Contravention of terms or poorly done
a. be undone if it is still possible to undo. (ordered by the court upon
complaint)
Performance by a third person

Personal obligation to do (generic) can be performed by a third person (GR:

No claim for damage)
Real obligation to deliver a generic thing can be performed by a third person
Specific performance cannot be compelled; involuntary servitude (Claim for
damage)
Delivery of specific thing debtor can be compelled
Art 1168. When the obligation consists in not doing, and the obligor does
what has been forbidden him, it shall also be undone at his expense.
++ Obligation not to do, duty of the obligor is to abstain from the act. Debtor
cannot be guilty of delay.
++ Remedy
a. Undoing of the forbidden thing (if feasible)
b. Damages