Elements of Obligation

An obligation has the following essential elements:

Parties - the actors involved in an obligation:

active subject (creditor/obligee) - one who demands the fulfillment of an
obligation.
passive subject (debtor/obligor) - one who has the duty to fulfill an
obligation.
Prestation - the conduct to be performed by the passive subject for the active
subject.
Juridical Tie (efficient cause) - the relation that binds the parties to an obligation.
Example: Under a contract of sale, D agreed to deliver a book to C for Php1000.

C is the active subject

D is the passive subject
the delivery of the book is the prestation
the contract of sale is the juridical tie that binds X and Y.
Suppose X had already delivered the book but Y has not yet paid for it.In this case, X
becomes the active subject and Y is the passive subject.

The active subject has the right to go to court in case of non-performance by the
passive subject. The passive subject should hence comply with the obligation to avoid
civil action against him.

Sources of Obligation
An obligation can arise from:

Law - when there is an enforcement of law itself; the obligation cannot be

presumed, and should be expressly or clearly provided for in the law in order to
demandable;[2] such as the obligation of income earning persons to pay taxes
according to the National Internal Revenue Code.
Contract - when there is a meeting of the minds between the parties; the
obligation have the force of law and should be complied with in good faith; [3] such
as the contract of sale of a book for Php1000.
 Quasi-contract - when there is no meeting of the minds between parties, but one
party benefited at the expense of the other party; there is an obligation to pay for
compensation so that no one shall be unjustly enriched or benefited at the
expense of another.[4]
Negotiorum gestio - if one (the officious manager) voluntarily takes charge
of the agency or management of another person's property on his behalf
without his consent or authority;[5] such as the obligation to reimburse the
expenses incurred by someone who voluntarily saved your abandoned
house from fire.
Solutio indebiti - if one received something that does not rightfully and
legally belong to him;[6] such as the obligation to return a money received by
mistake.
Delict - when there is a civil liability resulting from criminal offense; should be
governed by the penal laws;[7]such as the obligation of a thief to return the money
he had stolen.
Quasi-delict - when there is fault or negligence that causes damage on another,
there being no prior meeting of the minds between the parties; there is an
obligation to pay for the damage done;[8] such as the obligation of a driver to pay
for the damages he caused to another due to negligence.
Effects of Obligation
The duties of the debtor
in the delivery of a determinate thing, which is identified by its individuality:

deliver the thing itself.

preserve or take care of the thing due 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.[9]
deliver the fruits of the thing from the time the obligation to deliver it arises.[10]
deliver the accessions and accessories of the thing, even though they may not
have been mentioned.[11]
in the delivery of a generic thing, which is identified by its class/type:

deliver the thing which is neither superior nor inferior quality.[12]

The debtor is also liable for damages in case of non-performance or breach of
obligation by reason of delay, fraud, negligence or contravention of the tenor.[13]

The remedies of the creditor

in case of breach of obligation in the delivery of a determinate thing:

demand specific performance or fulfillment of the obligation by the debt (if it is still
possible).[14]
demand rescission or cancellation of the obligation (in certain cases).[15]
in case of breach of obligation in the delivery of a generic thing:

demand the delivery of the thing which is neither superior nor inferior quality [12] at
the expense of the debtor.[16] This can be performed by a third party.
In either case, the creditor has a right to recover damages.[13] The other remedies can
be demanded in addition to this right.
Kinds of Obligation
The primary classification of obligations
according to the peculiarities of the prestation:

Pure obligation - performance is not subject to any condition, and can be

immediately demandable.[17]
Conditional obligation - performance is subject to a condition, and can only be
demandable upon the happening of an event.[18]
Obligation with a period - performance is subject to a period, and can on;y be
demandable when that period expires.[19]
according to the number prestations:

Simple obligation - there is only one prestation.

Compound obligation - there are two or more prestations.
Conjunctive obligation - there are several prestations and all of them can
be performed separately.
Disjunctive obligation - only one of the several prestations can be
performed. It may be alternativeor facultative.
according to the number of parties:

Individual obligation - there is one debtor and one creditor.

 Collective obligation - there are two or more debtors and two or more creditors.
Joint obligation - the prestation is divided among each debtor and/or the
demand for it is divided among each creditor.[20]
Solidary obligation - the prestation may be performed by any one of the
debtors, and/or its entire compliance may be demanded by any one of the
creditors.[21]
according to divisibility/indivisibility of the prestation:

Divisible obligation - the prestation can be partially performed.

Indivisible obligation - the prestation cannot be partially performed.[22]
according to the value of the prestation:

Principal obligation - the main/principal prestation that is essential and from

which the accessory obligation/s arise.
Accessory obligation - the secondary/accessory prestation that should be
performed in connection with the primary obligation.
Obligation with a penal clause - the accessory prestation imposes a
penalty that shall substitute the indemnity for damages and the payment of
interests in case of noncompliance to the principal prestation.[23]

The secondary classification of obligations

according to the involvement of the parties:

Unilateral obligation - only one party is bound to perform a prestation.

Bilateral obligation - both parties are bound to each other in performing their
respective prestations.
Reciprocal obligation - one party is bound to perform a prestation in
exchange for the other party's performance.[15]
according to the nature of the obligation

Civil obligation - has legal basis; give a right of action to compel its
performance.[24]
Legal obligation - arises from laws.[2]
Conventional obligation - arises from contracts with the force of the law.[3]
Penal obligation - arises from delicts and criminal offences.[7] (not to be
confused with the 'obligation with a penal clause' which is an accessory obligation)
 Natural obligation - has no legal basis; does not give a right of action to enforce
its performance but is based on equity and natural law, and should be
voluntary.[24]
according to the nature of the prestation:

Personal obligation - the prestation is to do or not to do an act:

Positive obligation - to do an act
Negative obligation - not to do an act
Real obligation - the prestations is to give or deliver a thing:
Determinate obligation - to deliver a determinate thing.
Generic obligation - to deliver a generic thing.
Limited generic obligation - to deliver a thing confined to a particular
class/kind.
Obligations may have multiple classifications, but not with contradictory characteristics.

Extinguishment of Obligation
main article: Extinguishment of Obligation
An obligation can be extinguished by:[25]
payment or performance - the delivery of a thing, or the doing of an act or not
doing of an act for the fulfillment of an obligation.[26]
the loss of the thing due - the determinate thing is lost or destroyed without the
fault of the debtor, and before he has incurred in delay.[27]
the condonation or remission of the debt - the gratuitous renunciation by the
creditor of his right against the debtor with the latter's acceptance. [28]
the confusion or merger of the rights of creditor and debtor - the characters
of creditor and debtor are merged in the same person.[29]
compensation - the simultaneous balancing of two obligations wherein two
persons are reciprocally debtors and creditors of each other.[30][31][32]
novation - the creation of a new and different obligation through the total or
partial modification of an old obligation that it substituted. [33][34]
annulment - the invalidation of a voidable contract by a court action on the
grounds of incapacity to give consent, mistake, violence, intimidation, undue
influence, and fraud.[35]
 rescission - the revocation, cancellation, or repeal of a contract and the return of
the parties to the positions they would have had if the contract had not been
made.[15]
fulfillment of resolutory condition.[36]
prescription - the loss of certain rights upon the lapse of time.[37]
In addition, other causes are:

happening of a fortuitous event.[38]

arrival of resolutory period.[39]
impossibility of fulfillment of the obligation.[40]
death of a party in case the obligation is purely personal.[41]
compromise, by making reciprocal concessions.[42]
mutual desistance or withdrawal (mutuo disenso).[43]
Resources
General References:
Websites:
Citations:
1. Civil Code, Article 1156
2. 2.0 2.1 Civil Code, Article 1158
3. 3.0 3.1 Civil Code, Article 1159
4. Civil Code, Article 2142
5. Civil Code, Article 2144
6. Civil Code, Article 2154
7. 7.0 7.1 Civil Code, Article 1161
8. Civil Code, Article 2176
9. Civil Code, Article 1163
10. Civil Code, Article 1164
11. Civil Code, Article 1166
12. 12.0 12.1 Civil Code, Article 1246
13. 13.0 13.1 Civil Code, Article 1170
14. Civil Code, Article 1165, par. 1
15. 15.0 15.1 15.2 Civil Code, Article 1380
16. Civil Code, Article 1165, par. 2
17. Civil Code, Article 1179
18. Civil Code, Article 1181
19. Civil Code, Article 1193
20. Civil Code, Article 1208
21. Civil Code, Article 1207
22. Civil Code, Article 1125
23. Civil Code, Article 1226
24. 24.0 24.1 Civil Code, Article 1423
25. Civil Code, Article 1231
26. Civil Code, Article 1232
27. Civil Code, Article 1262
28. Civil Code, Article 1270
29. Civil Code, Article 1275
30. Civil Code, Article 1278
31. Civil Code, Article 1279
32. Civil Code, Article 1290
33. Civil Code, Article 1291
34. Civil Code, Article 1292
35. Civil Code, Article 1390
36. Civil Code, Article 1271
37. Civil Code, Article 1106 par.2
38. Civil Code, Article 1174
39. Civil Code, Article 1193, par.2
40. Civil Code, Article 1266
41. Civil Code, Article 1311, par.1
42. Civil Code, Article 2028
43. Saura Import and Export Co., Inc v. DBP; G.R. No. L-24968 (1972)