CHAPTER 1 - General Provisions

Article 1156. An obligation is a juridical necessity to give, to do or not to do. Concept of Obligations - Obligations may either be civil or natural. - Civil obligation - one which has a binding force in law, and gives the obligee or creditor the right of enforcing it against the obligor or debtor in a court of justice. (Article 1156) - Natural obligation - one which cannot be enforced by action, but which is binding on the party who makes it conscience and according to the natural law. * When an action has prescribed in accordance with the statute of limitations, a natural obligation still subsists, although the civil obligation is extinguished.
Ex: A has a right of action, evidenced by a promissory note, to collect one thousand pesos from B, and such promissory note prescribes after the expiration of ten years from the time it accrues, although the latter is no longer bound to pay the obligation in accordance with the statute of limitations, he is still bound to pay in accordance with equity and natural law.

4. Fact, prestation or service - which constitutes the object of the obligation * prestation - to give, to do or not to do Requisites of Prestation: a. Legal b. Possible to accomplish c. Determinate or at least determinable d. Monetary equivalent 5. Form in which the obligation is manifested (not an essential requisite) obligations arising from law, quasi-contracts, acts or omissions punished by law and quasidelicts do not require any form. Classification of Obligations Primary Classification of Obligations - Pure and conditional (Arts. 1179-1192) - With a period (Arts. 1193-1198) - Alternative and facultative (Arts. 11991206) - Joint and solidary (Arts. 1223-1225) - Divisible and indivisible (Arts. 1223-1225) - With a penal cause (Arts. 1226-1230) Classifications of a secondary character - Legal, conventional and penal - Real and personal - Determinate and generic - Positive and negative - Unilateral and bilateral - Individual and collective - Accessory and principal Classification of obligations according to Sanchez Roman A. As to juridical quality i. Natural - when the obligation is in accordance with natural law ii. Civil - when the obligation is in accordance with positive law iii. Mixed - when the obligation is in accordance with both natural and positive law. B. As to parties i. Unilateral and bilateral - unilateral, where only one party is bound, and

Civil obligation is based on positive law, while a natural obligation is based on equity and natural law. The former is enforceable in courts of justice, while the latter is not. Requisites of Obligations: 1. Juridical or legal tie - which binds the parties to the obligation, and which may arise from either bilateral or unilateral acts of persons 2. Active subject - known as the obligee or creditor, who can demand the fulfillment of the obligation 3. Passive subject - known as the obligor or debtor, against whom the obligation is juridically demandable

bilateral, where both parties are mutually or reciprocally bound. ii. Individual or collective individual, where there is only one obligor, and collective, where there are several obligors. The latter may be joint, when each obligor is liable only for his proportionate share of the obligation, or solidary, when each obligor may be held liable for the entire obligation. C. As to object i. Determinate and generic determinate, when the object is specific; generic, when the object is designated by its class or genus. ii. Simple and multiple - simple when there is only one undertaking; multiple, when there are several undertakings. iii. Positive and negative - positive, when the obligor is obliged to give or do something; negative, when the obligor must refrain from giving or doing something. iv. Real and personal - real, when the obligation consists of giving something; personal, when the obligation consists in doing or not doing something. v. Possible and impossible possible, when the obligation is capable of fulfillment in nature as well as in law; impossible, when the obligation is not capable of fulfillment either in nature or in law. vi. Divisible and indivisible divisible, when the obligation is susceptible of partial performance; indivisible, when the obligation is not susceptible or partial performance. vii. Principal and accessory principal, when it is the main undertaking; accessory, when it is merely an undertaking to guarantee

the fulfillment of the principal obligation.

D. As to perfection and extinguishment i. Pure - when the obligation is not subject to any condition or term and is immediately demandable. ii. Conditional - when the obligation is subject to a condition which may be suspensive, in which case the happening or fulfillment of the condition results in the birth of the obligation, or resolutory, in which case the happening or fulfillment of the condition results in the extinguishment of the obligation. iii. With a term or period (a plazo) when the obligation is subject to a term or period which may be suspensive, or from a day certain, in which case the obligation is demandable only upon the expiration of the term, or resolutory or to a day certain, in which case the obligation terminates upon the expiration of the term. Article 1157. Obligations arise from: 1. Law; 2. Contracts; 3. Quasi-contracts; 4. Acts or omissions punished by law; and 5. Quasi-delicts Sources of Obligations In Roman Law, the sources of obligations are: (1) contractu (2) quasi-contractu (3) maleficio (4) quasi-maleficio * The Civil Code added the law or lege Article 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 forseen, by the provisions of this Book. Obligations Arising from Law - Those derived from law can never be presumed. - Only those expressly determined in the Civil Code or in special laws are demandable. How can we determine whether an obligation arises from law or from some other source, such as contract, quasicontract, criminal offense or quasi-delict? Ans.: In the birth or generation of an obligation, there is always a concurrence between the law which establishes or recognizes it and an act or condition upon which the obligation is based or predicated. Article 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith. Obligations Arising from Contracts Contract - it 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. As a rule, contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which according to their nature may be in keeping with good faith, usage and law. These contracts are commonly called consensual contracts. Once contract is perfected, the valid contract has the force of law binding the parties to comply therewith in good faith, whether neither one may renege therefrom without the consent of the other. Real contracts - are contracts which are not perfected until the delivery of the object or obligation, such as deposit, pledge and commodatum.

Article 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book. Obligations arising from quasi-contracts Quasi-contracts - those juridical relations arising from lawful, voluntary and unilateral acts, by virtue of which the parties shall become bound to each other, based on the principle that no one shall be unjustly enriched or benefited at the expense of another.
Perez v. Palomar - no express consent is given by the other party, the consent needed in a contract is provided by law through presumption (presumptive consent)

The most important of these juridical relations which are recognized and regulated by the Civil Code are: Negotiorum gestio - juridical relation which arises whenever a person voluntarily takes charge of the agency or management of the business or property of another without any power or authority from the latter. In this type of quasi-contract, once the gestor or the officious manager has assumed the agency or management of the business or property, he shall be obliged to continue such agency or management until the termination of the affair and its incidents, exercising such rights and complying with such obligations as provided for in the Code. Solutio indebiti - juridical relation which arises whenever a person unduly delivers a thing through mistake to another who has no right to demand it. In this type of quasicontract, once the delivery has been made, the person to whom the delivery is unduly made shall have the obligation to return the property delivered or the money paid. * other instances of quasi-contract provided for in the Civil Code (Articles 2159, 2164, 2175)

Article 1161. Civil obligations arising from offenses shall be governed by the penal laws, subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on Human Relations, and of Title XVII of this Book, regulating damages. Obligations arising from Criminal Offenses As a rule, every person liable for a felony is also civilly liable. Purpose: - Criminal liability to punish or correct the offender - Civil liability to repair the damages suffered by the aggrieved party Examples of crimes without civil liability: treason, rebellion, illegal possession of firearm and gambling Enforcement of civil liability Rules to be observed in the enforcement or prosecution of civil liability arising from criminal offenses: 1. Institution of criminal and civil actions. when a criminal action is instituted, the civil action for recovery of civil liability arising from the offense charged is impliedly instituted with the criminal action, unless the offended party: - expressly waives the criminal action - reserves his right to institute it separately - institutes the civil action prior to the criminal action 2. Independent civil action - may be brought by the injured party during the pendency of the criminal case, provided the right is reserved. The civil action shall proceed independently of the criminal prosecution, and shall require only a preponderance of evidence.

3. Other civil actions arising from offenses In all cases not included in the preceding rules, the following are observed: (a) Criminal and civil actions arising from the same offenses may be instituted separately, but after the criminal action has been commenced, the civil action cannot be instituted until final judgment has been rendered in the criminal action. (b) If the civil action has been filed ahead of the criminal action, and the criminal action is subsequently commenced, the civil action shall be suspended in whatever stage before the final judgment it may be found, until the final judgment in criminal action has been rendered.
* if no final judgment has been rendered by the trial court in the civil action, the same may be consolidated with the criminal action upon application with the court trying the criminal action. * In case of consolidation, both the criminal and the civil action shall be tried and decided jointly. (c) Extinction of penal action does not carry with it extinction of the civil, unless the extinction proceeds from a declaration in a final judgment that the fact from which the civil might arise did not exist.

4. Judgment in civil action not a bar A final judgment rendered in a civil action absolving the defendant from civil liability is no bar to a criminal action. 5. Suspension by reason of prejudicial question
Elements of a prejudicial question: The previously instituted civil action which involves an issue similar or intimately related to the issue raised in the subsequent criminal action The resolution of such issue determines whether or not the criminal action may proceed.

Effect of Acquittal If the accused in a criminal action is acquitted of the offense charged, can a civil action for damages based on the same act or omission still be instituted?
Ans. (Qualified answer): If the acquittal is based on the ground that his guilt has not been proved beyond reasonable doubt, a civil action to recover damages based on the same act or omission may still be instituted.

Article 2176 and decided cases defined quasi-delicts as the fault of negligence of a person, who, by his act or omission, connected or unconnected with, but independent from, any contractual relation, causes damage to another person. tort in Anglo-American law Persons Liable Obligations arising from quasidelicts are demandable not only from the person directly responsible for the damage incurred, but also against the following: (1) The father and, in case of his death or incapacity, the mother, with respect to the damage caused by the minor children who live in their company. (2) Guardians, with respect to damages caused by minors or incapacitated persons who are under their authority and who live in their company. (3) The owners and managers of an establishment of enterprise, with respect to damages caused by their employees in the service of the branches in which the latter are employed or on the occasion of their functions. (4) Employers with respect to damages caused by their employees and household helpers acting within the scope of their assigned tasks, even though the former are not engaged in any business or industry. (5) The State, when it acts though a special agent, but not when the damage has been caused by the official to whom the task done properly pertains. (6) Teachers or heads of establishments of arts and trades, with respect to

Acquittal: - was not proved beyond reasonable doubt may institute civil action - did not commit offense charged civil action no longer possible (general rule) Effect of Independent Civil Actions As a rule, the civil action to recover damages from the person criminally liable is not independent from the criminal action. Exception: - civil action is based on an obligation not arising from the act or omission complained of as a criminal offense or felony; where the law grants to the injured party the right to institute a civil action which is entirely separate and distinct from the criminal action.

Article 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of the Book, and by special laws. Obligations arising from Quasi-delicts Quasi-delicts refers to all of those obligations which do not arise from law, contracts, quasi-contracts or criminal offenses.

damages caused by their pupils and students or apprentices, so long as they remain in their custody.
*The responsibility of the above persons or entities shall cease if they can prove that they have observed all the diligence of a good father of a family to prevent the damage.

- punished only if there is a law clearly covering them

- include all acts in which any kind of fault or negligence intervenes.

Scope of Quasi-delicts

Elcano vs. Hill: Quasi-delicts include all acts which are criminal in character or in violation of the penal law, whether voluntary or negligent.

Requisites of Liability In actions based on quasidelicts, before the person injured can recover damages from the defendant, it is necessary that he must be able to prove the following: o Fault of negligence of the defendant o Damage suffered or incurred by the plaintiff o The relation of cause and effect between the fault or negligence of the defendant and the damage incurred by the plaintiff o No pre-existing contractual relations between the two parties Quasi-delicts and crimes Quasi-delicts and criminal offenses are sometimes difficult to distinguish from each other in the following ways: Crimes - affect public interest - Penal Code: punishes or corrects the criminal act - two liabilities: criminal and civil Quasi-delicts - are only of private concern - Civil Code: by means of indemnification, merely repairs the damages incurred - only civil liability

Character of Remedy A negligent act gives rise to at least two independent liabilities: - the civil libality arising from crime of culpa criminal - the liability arising from civil negligence or culpa aquiliana
* They can be prosecuted separately and independently of each other, although Article 2177 of the Civil Code precludes recovery of damages twice for the same negligent act or omission, which means that should there be varying amounts awarded in two separate cases, the plaintiff may recover, in effect, only the bigger amount.