OBLICON Notes | Enerlas, Jonah Marie S. | Atty.

Maricris Bathan-Lasco, CPA

I. OBLIGATIONS D is obliged to give to C to P50,000.00 with interest at 12% per

annum on December 31, 2025 pursuant to a contract of loan.

A. GENERAL PROVISIONS o Passive Subject - D

o Active Subject – C
o Prestation – Giving of P50,000 with 12% interest
1. Obligation, concept (Art. 1156) o Efficient Cause – Contract of Loan

• Obligation – a juridical necessity to give, to do or not to do.
• Juridical Necessity – means that the court may be asked to
order the performance of an obligation if the debtor refuses to
perform it.
• If an obligation cannot be enforced through courts, it may be
disregarded with impunity.
o Bilateral Obligation – each party is required to perform a
particular conduct
D is obliged to transport the goods of C from Manila to Cebu, and
C is obliged to pay P1,000 as transport costs, under a contract of
carriage.

Prestation = transport of goods:

2. Civil Obligation vs Natural Obligation o Passive Subject – D
o Active Subject – C

Prestation = payment of transport costs:

Civil Obligation Natural Obligation
o Passive Subject –C
(As defined in Art. • Is based on natural law and
o Active Subject – D
1156) is based on hence, NOT enforceable by court
positive law and action
Efficient Cause – contract of carriage
hence, enforceable • The obligation exists in equity and
by court action. moral justice.
• When the debtor voluntarily 4. General Classifications
performs an obligation, he can no
longer recover what he has given. a. As to Sanction
• Example: Payment of an
obligation which has already o Civil Obligation (or perfect obligation)
prescribed and is no longer ▪ the sanction is judicial process
enforceable by court action (e.g., ▪ gives a right of action to compel their
beyond the 10-year prescriptive performance
period from due date for written ▪ defined in Art. 1156
contracts)
o Natural Obligation
▪ the duty not to recover what has voluntarily
Prescription been paid although payment was no longer
o is generally used with reference to the acquisition (or required
loss) of a right by the lapse of time ▪ the sanction is law, but only because
o refers to the time within which an action must be brought; conscience had originally motivated the
otherwise, such right to file the action is lost. payment
▪ not based on positive law but on equity and
natural law.
3. Requisites or Elements of Obligation ▪ It does not grant a right of action to enforce their
performance, but after voluntary fulfillment by
a. Active Subject (creditor or obligee) – party who has the the obligor, they authorize the retention of what
right to demand performance of an obligation has been delivered or rendered by reason
thereof.
b. Passive Subject (debtor or obligor) – party who is obliged
to perform the obligation. o Moral Obligation (or imperfect obligation)
▪ the sanction is conscience or morality, or the
c. Prestation – the object or subject matter of the obligation. It law of the church
may consist of giving, doing or not doing something. ▪ those that cannot be enforced by action but
which is binding on the party who makes it in
d. Efficient Cause – the vinculum or the legal or juridical tie conscience and natural law.
which binds the parties to an obligation. It may be any of the ▪ Under our law, moral obligations are now
5 sources of obligation. merged with natural obligations.
▪ Example: The duty of a Catholic to hear mass
Examples: on Sundays and Holy Days of Obligation

► Unilateral Obligation – only one party is required to perform b. As to Subject Matter

a particular conduct.
o Real Obligation
▪ the obligation to give
References: Soriano, Paras, De Leon, Suarez, PRTC CPA Reviewer by Atty. Ong/Lopez
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OBLICON Notes | Enerlas, Jonah Marie S. | Atty. Maricris Bathan-Lasco, CPA
o Personal Obligation for which he may maintain an action for the recovery of
▪ the obligation to do or not to do damages or other appropriate relief

c. As to Affirmativeness or Negativeness of the Obligation • A cause of action only arises when the last element occurs
(i.e., at the moment a right has been transgressed)
o Positive Obligation
▪ the obligation to give or to do • Cause of Action – governed by procedural law

o Negative Obligation • Right of Action – governed by substantive law

▪ the obligation not to do o Springs from the cause of action, but does not accrue
until all the facts which constitute the cause of action
d. As to Persons Obliged have occurred.
o Unilateral Obligation
▪ where only one of the parties is bound • An obligation on the part of a person cannot exist without a
corresponding right existing in favor of another, and vice-
o Negative Obligation versa, for every right enjoyed by a person, there is a
▪ where both parties are bound corresponding obligation on the part of another to respect
✓ Reciprocal such right.
- performance of one obligation is
conditioned on the simultaneous
fulfillment of the other obligation B. SOURCES OF OBLIGATION (Art. 1157 – Art. 1162)
- Example: Option to Buy
Payment of purchase price by
creditor is contingent upon the 1. Law (Art. 1157-1158)
execution and delivery of a deed
of sale by the debtor • A rule of conduct, just, and obligatory, laid down by legitimate
✓ Non-Reciprocal authority for common observance and benefit.
- performance by one is non- • Obligations derived from law are not presumed. Only those
dependent upon performance by expressly determined in the Civil Code or in special laws are
another demandable, and shall be regulated by the precepts of the
law which establishes them; and as to what has not been
foreseen, by the provisions on Obligations. (Art. 1158)
5. Obligation distinguished from cause of action; Subject • Obligations Ex Lege
Matter distinguished from Cause of Action
• Examples:
o NIRC – payment of taxes
Obligation Right o Anti-Mendicancy Law – prohibits the giving of alms to
The act or performance The power which a person has beggars
which the law will enforce. under the law, to demand from o Duty to support (Art. 291,NCC)
another any prestation.

2. Contracts (Art. 1157; Art. 1159)

Cause of Action (Wrong) Subject Matter
An act or omission of one The item with respect to which • Meeting of minds between two persons whereby one binds
party in violation of the legal the controversy has arisen or himself, with respect to the other, to give something or to
right or rights of another, concerning which the wrong render some service. (Art. 1305)
causing injury to the latter has been done, and is • Obligations arising from contracts have the force of law
ordinarily the thing or the between the contracting parties and should be complied
contract under dispute. with in good faith. (Art. 1159)
o NOTE: This does not mean that the law is inferior to
Example: Breach of Contract contracts. This is because before a contract can be
enforced, it must first be valid, and it cannot be valid if it
Subject Matter – contract violated is against the law. (Art. 1306 – The contracting parties
Cause of Action – the breach by the obligor may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they
Essential Elements of Cause of Action: are not contrary to law, morals, good customs, public
order and public policy.)
a. A legal right in favor of a person (creditor/plaintiff) by • GR: Neither party may unilaterally and upon his own
whatever means and under whatever law it arises or is exclusive volition, escape his obligations under the contract.
created EXC:
(1) The other party assented thereto
b. A correlative legal obligation on the part of another (2) for causes sufficient in law and pronounced adequate by
(debtor/defendant) to respect or not to violate said right a competent tribunal.
• Compliance in Good Faith – means compliance or
c. An act or omission in breach or violation of said right by the performance in accordance with the stipulations or terms of
defendant with consequential injury or damage to the plaintiff the contract or agreement.
References: Soriano, Paras, De Leon, Suarez, PRTC CPA Reviewer by Atty. Ong/Lopez
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OBLICON Notes | Enerlas, Jonah Marie S. | Atty. Maricris Bathan-Lasco, CPA
▪ The manager has been tacitly authorized by the
Obligation Contract owner – rules on agency shall govern
► Result of the contract ► A contract always
► Not all obligations presupposes a meeting b. Solutio Indebiti (undue payment)
result from contracts of the minds, which is not o Is the juridical relation which is created when something
necessarily true for all is received when there is no right to demand it and it was
kinds of obligations. unduly delivered through mistake. (Art. 1254)
o Refers to payment by mistake of an obligation which was
• Obligations Ex-Contractu not due when paid.
• Examples: o Creates the obligation to return the payment.
o contract of lease – payment of rental o Applies where:
o contract of sale – requires the seller to deliver the ▪ payment is made when there exists no binding
thing sold and the buyer to pay the price relation between the payor, who has no duty to pay,
and the person who received the payment; and
• Innominate Contracts ▪ the payment is made through mistake and not
through liberality or some other cause.
a. Do ut des – I give that you may give.
b. Do ut facias – I give that you may do. Innominate Quasi contracts (Art. 2164-2175)
c. Facio ut des – I do that you may give.
d. Facio ut facias – I do that you may do. a. When, without the knowledge of the person obliged to
give support, it is given by a stranger, the latter shall
have the right to claim the same from the former,
3. Quasi contracts (Art. 1157; Art. 1160) UNLESS it appears that he gave it out of piety and
without intention of being paid. (Art. 2164)
a. Definition
b. When funeral expenses are borne by a third person,
• Refer to a certain lawful, voluntary, and unilateral acts giving without knowledge of those relatives who were obliged
rise to a juridical relation to the end that no one shall be to give support to the deceased, said relatives shall
unjustly enriched at the expense of another. (Art. 2142) reimburse the third person, should the latter claim
reimbursement. (Art. 2165)
• There is unjust enrichment :
o when a person unjustly retains a benefit to the loss of
c. When the person obliged to support an orphan, or an
another, or
insane or other indigent person unjustly refuses to
o when a person retains money or property of another
give support to the latter, any third person may furnish
against the fundamental principles of justice, equity and
support to the needy individual, with right of
good conscience.
reimbursement from the person obliged to give support.
• There is no consent / meeting of minds but the same is
This provision applies when a father or mother of a child
supplied by fiction of law.
under 18 years of age unjustly refuses to support him.
(Art. 2166)
b. Types
d. When through an accident or other cause a person is
Principal Kinds / Nominate Quasi contracts:
injured or becomes seriously ill, and he is treated or
helped while he is not in a condition to give consent to a
a. Negotiorum gestio (unauthorized management)
contract, he shall be liable for the services of the
o Refers to the voluntary administration of the property,
physician or other person aiding him, UNLESS the
business or affairs of another without his consent or
service has been rendered out of pure generosity. (Art.
authority.
2167)
o Creates the obligation to reimburse the gestor for
necessary and useful expenses. (Art. 2150)
e. When during a fire, flood, storm or other calamity
property is saved from destruction by another person
o Requisites:
without the knowledge of the owner, the latter is bound
▪ Property or business is abandoned or
to pay the former just compensation. (Art. 2168)
neglected
▪ The manager is unauthorized (express or
f. When the government, upon failure of any person to
implied)
comply with health or safety regulations concerning
▪ The unauthorized manager voluntarily take
property, undertakes to do necessary work, even over
charge the abandoned property
his objection, he shall be liable to pay the expenses. (Art.
2169)

g. When by accident or other fortuitous event, movables

separately pertaining to two or more persons are
o Does not arise in either of the following cases:
commingled or confused, the rules on co-ownership are
▪ The property or business is not neglected or
applicable. (Art. 2170)
abandoned – provisions on unauthorized
contracts shall govern
h. When in a small community, a majority of the
inhabitants of age decide upon a measure of
References: Soriano, Paras, De Leon, Suarez, PRTC CPA Reviewer by Atty. Ong/Lopez
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OBLICON Notes | Enerlas, Jonah Marie S. | Atty. Maricris Bathan-Lasco, CPA
protection against lawlessness, fire, flood, storm or
other calamity, any one who objects to the plan and
refuses to contribute to the expenses but is benefited by
the project as executed shall be liable to pay his share of
said expenses. (Art. 2174)
i. Any person who is constrained to pay the taxes of
another shall be entitled to reimbursement from the
latter. (Art. 2175)
4. Delict (Acts or omissions punished by law) (Art. 1161; Art.
100 of RPC)
• Crimes or felonies
• Obligations Ex Delicto or Ex Maleficio
• Governing Rules:
o Pertinent provisions of the RPC and other penal
laws subject to Art. 2177 of NCC
▪ Art. 100, RPC – Every person criminally
liable for a felony is also civilly liable.
o Chapter 2, Preliminary title, on Human Relations
o Title 18 of Book IV of the Civil Code – on damages
• Civil liability arising from crime:
o Restitution – The thing itself must be returned or
restored.
o Reparation – The court shall determine the amount
of damage, taking into consideration the price of the
thing, whenever possible, and its special
sentimental value to the injured party.
o Indemnification – Indemnification for
consequential damages shall include not only those
caused the injured party, but also those suffered by
his family or by a third person by reason of the crime.
• Effect of acquittal in criminal case:
o When acquittal is due to reasonable doubt (not
guilty) – no civil liability
o When acquittal is due to exempting circumstances –
there is civil liability
o When there is preponderance of evidence – there is
civil liability
o When there is an independent civil action allowed by
the law – civil liability may still arise (e.g., in cases of
defamation, fraud, and physical injuries)
5. Quasi delict (Tort / Culpa Aquiliana) (Art. 1157; Art. 1162)
a. Definition of Quasi-Delict
o Act or omission that causes damage to another,
there being no contractual relation between the
parties. (Art. 2176)
o There being fault or negligence, one is obliged to
pay for the damage done. (Art. 2176)
o Example: Causing damage due to violation of traffic
rules (e.g., excessive speed)
Obligation expressly arising from Quasi delict:
(Art. 2180)
o The father and, in case of his death or incapacity,
the mother, are responsible for the damages caused
by the minor children who live in their company.
o Guardians are liable for damages caused by the
minors or incapacitated persons who are under their
authority and live in their company.
References: Soriano, Paras, De Leon, Suarez, PRTC CPA Reviewer by Atty. Ong/Lopez
o The owners and managers of an establishment or
enterprise are likewise responsible for damages
caused by their employees in the service of the
branches in which the latter are employed or on the
occasion of their functions.
o Employers shall be liable for the 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.
o The State is responsible when it acts through a
special agent; but not when the damage has been
caused by the official to whom the task done
properly pertains.
o Teachers or heads of establishments of arts and
trades shall be liable for damages caused by their
pupils and students or apprentices, so long as they
remain in their custody.
(Art. 2183)
o The possessor of an animal or whoever may make
use of the same is responsible for the damage which
it may cause, although it may escape or be lost. This
responsibility shall cease only in case the damage
should come from force majeure or from the fault of
the person who has suffered damage.
b. Definition of Negligence (Culpa)
o It is the omission of that diligence which is required
by the nature of the obligation and corresponds with
the circumstances of the person, of the time, and of
the place. (Art. 1173)
o It is the failure to observe, for the protection of the
interest of another person, that degree of care,
precaution and vigilance which the circumstances
justly demand, whereby such other person suffers
injury. (NPC vs Heirs of Casionan; Guilllang vs
Bedania)
c. Determination of Negligence
o The test of negligence is whether the defendant in
doing the alleged negligent act used that reasonable
care and caution which an ordinary person would
have used in the same situation. (Guillang vs
Bedania)
o Would a prudent man (in his position) foresee harm
to the person injured as a reasonable consequence
of the course about to be pursued?
o If the law or contract does not state the diligence
which is to be observed in the performance of the
obligation, the debtor must observe the diligence of
a good father of a family.
d. Requisites
o There must be fault or negligence attributable to the
person charged.
o There must be damage or injury.
o There must be a direct relation of cause and effect
between the fault or negligence on the one hand and
the damage or injury on the other hand (proximate
cause – that adequate or efficient cause, which is
the natural order of events, necessarily produces
the damages or injury complained of.).
6. Enumeration by law is EXCLUSIVE
No obligation exists if its source is not one of those
enumerated.
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