Obligations and Contracts

Cavite State University – Naic

Arjane C. Aram-Samaniego

DISCUSSION POINTS
4 April 2019

I. Obligations

An obligation is a juridical necessity (1) to give (2) to do (3) or not to do

The term obligation is derived from the Latin word “obligatio” which means a “tying” or
“binding”

It is a tie of law or juridical bond by virtue of which one is bound in favor of another to
render something – and this may consist in giving a thing, doing a certain act, or not doing a
certain act.

A legal relation established between one party and another, whereby the latter is bound to
the fulfillment of a prestation which the former may demand of him.

Juridical Necessity

Obligation is a juridical necessity because in case of non-compliance, the courts of justice

may be called upon to enforce its fulfillment or, in default thereof, the economic value that
it represents. In a proper case, the debtor may also be made liable for damages, which
represent the sum of money given as a compensation for he injury or harm suffered by the
creditor or obligee (he who has the right to the performance of the obligation) for the
violation of his rights.