OBLIGATIONS
Article 1156. An obligation is a juridical necessity to give, to do or not
to do.
“Obligatio” – Latin word meaning tying or binding
“Obligation is a LEGAL RELATION established between one party
and another whereby the latter is bound to the fulfillment of a
PRESTATION (the conduct which has to be observed by the
Debtor/Obligor) which the former may demand from him
Juridical Necessity – in case of non-compliance the courts may call
upon to enforce its fulfillment or, the economic value it represents.
Damages – represents the SUM OF MONEY given as a
compensation for the injury or harm suffered by the
creditor/oblige for the violation of his rights.
Creditor or Obligee – he who has the RIGHT TO THE PERFORMANCE
of the Obligation.
Debtor or Obligor – he who has the Obligation to comply otherwise
shall be visited by Harmful/ Undesirable Legal Consequences
NATURE OF OBLIGATIONS (CC):
1. Civil Obligations – obligations which give to the
creditor/obligee a RIGHT OF ACTION in courts of justice to
enforce their performance.
2. Natural Obligations –
NOT based on Positive Law (Law recognized by gov’t
authority); but on EQUITY and NATURAL LAW (derived
from nature and binding upon society);
does NOT grant a Right of Action to enforce their
performance; if voluntary fulfillment by debtor, cannot
recover what has been delivered
ESSENTIAL ELEMENTS/REQUISITES OF OBLIGATIONS:
(1) Active Subject (Creditor/Obligee) – or the person who is
entitled to DEMAND the fulfillment of the obligation; he
who has the RIGHT <power a person has under the law to
demand from another any prestation>
(2) Passive Subject (Debtor/Obligor) – person who is bound to
the fulfillment of the obligation; he who has the
DUTY/OBLIGATION <act or performance which the law will
enforce>
(3) Object/Prestation – SUBJECT MATTER of the obligation or
the CONDUCT required to be observed by the debtor
(giving, doing, or not doing)
(4) Juridical Tie/Legal Tie – EFFICIENT CAUSE or that
which BINDS OR CONNECTS the parties to the obligation.
The tie can be be easily determined by knowing the
source of obligation.
Example:
X bound himself to construct a house for Y for 1M, contract X
– is the debtor/obligor/passive subject
Y – is the creditor/oblige/active subject
House – object/prestation
Contract – juridical tie
Form of Obligation
(1) As a general rule, the law does not require any form in
obligations arising from contracts for their validity or
binding force. (see art 1356)
(2) Obligations arising from other sources (Art. 1157.) do not
have any form at all.
Obligation, right and wrong (cause of action distinguished)
(1) Obligation is the act or performance which the law will
enforce.
(2) Right, on the other hand, is the power which a person has
under the law, to demand from another any prestation.
(3) A wrong (cause of action), according to its legal meaning, is
an act or omission of one party in violation of the legal right
or rights of another, causing injury to the latter.
“In a breach of contract, the contract violated is the subject
matter, while the breach thereof by the obligor is the cause of
action.”
Subject matter – the item with respect to which the controversy
has arisen or concerning which the wrong has been done, and is
ordinarily the right, the thing or the contract under dispute.
ESSENTIAL ELEMENTS OF THE CAUSE OF ACTION:
1. Essential Elements:
a. There is a LEGAL RIGHT in favor of a person
b. There is a LEGAL OBLIGATION on the
part of another
c. There is an ACT or OMISSION in breach
or violation of the said right by the
defendant (one being sued in civil action
or prosecuted in a criminal action) with
consequential injury or damage to the
plaintiff (one who brings an action at
law) for which he may maintain an act
for damages or appropriate relief
(assistance)
2. If any element is absent, complaint becomes
vulnerable to motion to dismiss on the ground of
failure to state a cause of action
3. A cause of action only arises when the last element
occurs the moment a right has been transgressed
(trespassed).
a. Right of action distinguished from maintain
b. Right of action/Right to commence
<procedural law – laws which establish
procedure and rules of court and the
court
system and which matters are conducted>
ii. Right to maintain an action <substantive
law – written law controlling rights and
actions of persons within jurisdiction>
For every Right enjoyed by a person, there is a corresponding
obligation on the part of another to respect such right.
Cause of action based upon a written contract. KINDS OF OBLIGATIONS (SUBJECT MATTER):

- Actions based upon a written contract should be brought

within 10 years from the time the right of action accrues.
(Art. 1144).
o (Contracts) accrues only when an actual
breach or violation occurs
o Period of Prescription – from the occurrence of
breach
o Injury – the ILLEGAL INVASION of a legal
right; wrongful act or omission which
causes loss or harm to another
o Damage – Is the LOSS, HURT, or HARM
which results from the injury
o Damages – denotes the SUM OF MONEY
recoverable as amends <compensation for
loss or injury> for the wrongful act or
omission
o Injury – is the LEGAL WRONG to be
redressed <remedied/compensated>
Injury, damage, and damages extinguished
1. Real Obligations (obligation to give)-The subject matter is a
thing which the obligor must deliver to the oblige;
2. Personal Obligation (obligation to do or not to do)- The
subject matter is an act to be done or not to be done;
a. Positive Personal Obligation – Obligation to do or
to render service.
b. Negative Personal Obligation – Obligation not to
do, includes “not to give”
ART 1157. Obligations arise from:
(1) Law;
(2) Contracts;
(3) Quasi – contracts;
(4) Acts or omissions punished by law; and
(5) Quasi-delicts. (1089a)
Sources of Obligations
1. Law – when they are imposed by the law itself.
2. Contracts – when they arise from stipulation of the parties.
3. Quasi-contracts - when they arise from lawful, voluntary
and unilateral acts and which are enforceable to end that
no one shall be unjustly enriched or benefited at the
expense of another.
4. Crimes or acts or omissions punished by law - when they
arise from civil liability which is the consequence of a
criminal offense (Art. 1161)
5. Quasi-delicts or torts – when they arise from damage
caused to another through an act or omission, there being
fault or negligence, but no contractual relation exists
between the parties.

Injury – is the legal invasion of a legal right; it is the wrongful
act or omission which causes loss or harm to another; while
damage is the loss, hurt, or harm which results from the
injury. On the other hand, damages denote the sum of
money recoverable as amends for wrongful act or omission;
and
Art. 1158. Obligations derived from LAW are not presumed. Only
those expressly determined in the CC or in special laws <other laws
no in CC> are demandable and shall be regulated by the percepts
of the law which establishes them; as to what has not been
foreseen, by the provisions of this book.

Injury – is the legal wrong to be redressed, while damages

are the recompense or compensation awarded or
recoverable for the damage or loss suffered.

Existence of one without the other.

There may be injury without damage and damage without injury.

1. Proof of loss for injury – A wrongful violation of his legal

right is not sufficient to entitle a person to sue another in a
court of justice for the enforcement or protection of said
right. As a rule, there must be, in addition, loss or damage
caused to him by the violation of his right. But except for
actual and compensatory damages. ( Art. 2199), no
pecuniary proof is necessary in order that moral, nominal,
temperate, liquidated, or exemplary damages may be
awarded. ( Art. 2216.)

2. Liability for damages of a person for exercising his legal

rights – A person has the right to take all legal steps to
enforce his legal and/ or equitable rights. One who makes
use of his legal right does no injury. Qui jure suo utitur mullum
damum facit.. If damage results from a person’s exercising his
legal rights, it is damnum absque injuria (damage without injury)

Art.19. Every Person must in the exercise of his rights and in the
performance of his duties, act with justice, give everyone his due
and observe honesty and good faith.

damnum absque injuria – does not apply when there is an

abuse of a person’s right.