Obligation and Contracts

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OBLIGATIONS AND CONTRACTS
OBLIGATIONArt. 1156. An obligation is a juridical necessity to give, to do or not to do.
CHAPTER 1. GENERAL PROVISIONS
Arts. 1156 1162:
ELEMENTS OF AN OBLIGATION:
1. Active subject (obligee/creditor)- one in whose favor the obligation is constituted; one who
has the right to demand fulfillment of the obligation
2. Passive subject (obligor/debtor)-one who has the duty of giving, doing or not doing
3.Object or prestation-subject matter of the obligation; the obligation to give, to do, or not to do
4. Vinculum- juridical/legal tie; binds the parties to the obligation; reason why the obligation
exists.
REQUISITES
1. It must be licit (otherwise it is void)
2. It must be possible, physically and juridically (otherwise it is void)
3. It must be determinate or determinable(otherwise it is void)
4. It must have pecuniary value
SOURCES OF OBLIGATION
Art. 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi-contracts;
(4) Acts or omissions punished by law; and

(5) Quasi-delicts.
LAW (OBLIGATION EX-LEGE)
Must be expressly or impliedly set forth and cannot be presumed
CONTRACT (OBLIGATION EX CONTRACTU)
Must be complied with in good faith
It is the law between parties;
Parties may freely enter into any stipulation provided they are not contrary to law, morals, good
customs, public order or public policy
QUASI-CONTRACT (OBLIGATION EX QUASI-CONTRACTU)
Juridical relation resulting from lawful, voluntary and unilateral acts, which has for its purpose,
the payment of indemnity to the end that no one shall be unjustly enriched or benefited at the
expense of another.
Distinguished from other Sources
1. act giving rise to a quasi contract must be LAWFUL distinguishing it from delict;
2. act must be VOLUNTARY distinguishing it from quasi-delict...