ASSIGNMENT FOR FEBRUARY 8, 2020

General provisions on Obligations

1. Definition of Obligation (Art. 1156, NCC)

2. Essential Requisites of Obligation
3. Natural Obligations (Arts. 1423-1430, NCC)

4. Concepts and Sources of Obligations (Arts. 1157-1162, NCC)

4.1 Law (Art. 1158)

4.2 Contracts (Art. 1159)
4.3. Quasi-contracts (Art. 1160, NCC) Definition; kinds
4.4. Crimes or delict (Art.1161, NCC) Scope of liability
4.5. Quasi-delict (Art. 1162, NCC)Definition; Crimes vs. Quasi delict

CASES:

1. Ansay vs. NDC, G.R. No. 13667, April 29, 1960.

2. Luis Pichel vs. Prudencio Alonzo G.R.No. L- 36902 January 30, 1982

3. Benigno del Rio vs. Carlo Palanca. G.R. No. L-2450. May 31, 1949

4. Sagrado Orden v. Nacoco 91 Phil 503

5. PEOPLES CAR INC., vs Commando Security, L-36840 May 22, 1973

6. Agcaoili vs. GSIS, G.R. No. L-30056 August 30, 1988

7. Federation of Free Farmers v. Court of Appeals, 107 SCRA 352 [1981]

8. Philippine National Bank vs. Court of Appeals and B.P. Mata and Co., G.R. No. 97995, January 21, 1993.

9. Andamo vs IAC, 191 SCRA 204

10. People vs. Abungan, 341 SCRA 258 (2000)

11. Metro Manila Transport Corporation and Apolinario Ajoc vs. C.A. and Col. Sabalburo et al, G.R.No. 141089, August 1, 2002.

12. LRTA vs. Navidad, GR 145804, 6 February 2003

13. Metropolitan Bank and Trust Company vs. Ana Grace Rosales, G.R. No. 183204, January 13, 2014

14. Saludaga vs. FEU, G.R. No. 179337, April 30, 2008

15. Andres vs. Manufacturers Hanover and Trust Corporation, G.R. No. 82670, September 15, 1989
1. DEFINITION OF OBLIGATION (ART. 1156, NCC)
 Art. 1156. An obligation is a juridical necessity to give, to do or not to do. (n)

2. ESSENTIAL REQUISITES OF OBLIGATION

a) An active subject, who has the power to demand the prestation, known as the creditor or oblige;

b) A passive subject, who is bound to perform the prestation, known as debtor or obligor.

c) An object or the prestation which may consist in the act of giving, doing or not doing something.

d) The vinculum juris or the juridical tie between the two subjects by reason of which the debtor is bound in favor of
the creditor to perform the prestation. It is the legal tie which constitutes the source of obligation—the coercive force
which makes the obligation demandable. It is the legal tie which constitutes the devise of obligation… the coercive
force which makes the obligation demandable.

3. NATURAL OBLIGATIONS (ARTS. 1423-1430, NCC)

 Art. 1423. Obligations are civil or natural. Civil obligations give a right of action to compel their performance. Natural
obligations, not being based on positive law but on equity and natural law, do not grant a right of action to enforce their
performance, but after voluntary fulfillment by the obligor, they authorize the retention of what has been delivered or
rendered by reason thereof. Some natural obligations are set forth in the following articles.

 Art. 1424. When a right to sue upon a civil obligation has lapsed by extinctive prescription, the obligor who voluntarily
performs the contract cannot recover what he has delivered or the value of the service he has rendered.

 Art. 1425. When without the knowledge or against the will of the debtor, a third person pays a debt which the obligor is
not legally bound to pay because the action thereon has prescribed, but the debtor later voluntarily reimburses the third
person, the obligor cannot recover what he has paid.

 Art. 1426. When a minor between eighteen and twenty-one years of age who has entered into a contract without the
consent of the parent or guardian, after the annulment of the contract voluntarily returns the whole thing or price
received, notwithstanding the fact the he has not been benefited thereby, there is no right to demand the thing or price
thus returned.

 Art. 1427. When a minor between eighteen and twenty-one years of age, who has entered into a contract without the
consent of the parent or guardian, voluntarily pays a sum of money or delivers a fungible thing in fulfillment of the
obligation, there shall be no right to recover the same from the obligee who has spent or consumed it in good faith.
(1160A)

 Art. 1428. When, after an action to enforce a civil obligation has failed the defendant voluntarily performs the obligation,
he cannot demand the return of what he has delivered or the payment of the value of the service he has rendered.

 Art. 1429. When a testate or intestate heir voluntarily pays a debt of the decedent exceeding the value of the property
which he received by will or by the law of intestacy from the estate of the deceased, the payment is valid and cannot be
rescinded by the payer.

 Art. 1430. When a will is declared void because it has not been executed in accordance with the formalities required by
law, but one of the intestate heirs, after the settlement of the debts of the deceased, pays a legacy in compliance with a
clause in the defective will, the payment is effective and irrevocable.

4. CONCEPTS AND SOURCES OF OBLIGATIONS (ARTS. 1157-1162, NCC)

 Art. 1157. Obligations arise from:
(1) Law; (2) Contracts; (3) Quasi-contracts;

(4) Acts or omissions punished by law; and (5) Quasi-delicts. (1089a)

4.1 LAW (ART. 1158)

 Art. 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 foreseen, by the provisions of this Book. (1090)

4.2 CONTRACTS (ART. 1159)

 Art. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be
complied with in good faith. (1091a)
 4.3. QUASI-CONTRACTS (ART. 1160, NCC) DEFINITION; KINDS
 This are judicial relation arising from certain lawful,voluntary and unilateral acts by virtue of which the parties
become bound to each other based on the principle that no one shall be unjustly enriched or benefited at the expenses
of another.

TWO KINDS OF QUASI-CONTRACTS

The obligation to return money paid by mistake or which is not due.

1. SOLUTIO INDEBITI, exist when;

Example;
a) Something is recieved;
Mr. A the assistant of Mr.B,in the absence of Mr.B, Mr.A received
b) When there is no right to demand it; the amount of 5000 for the payment of B’s labor. Mr.A has the
obligation to give the amount to Mr.B.
c) It was unduly delivered through mistake.
2. NEGOTIORUM GESTIO, Which exist when one:

a) Voluntary takes charge of the agency or management of the business or property of another.
b) Without any power from the latter.
Example;
Mr. Juan the caretaker of house for rent recieved the amount of more than the boarders due. Mr. Juan without the
power of the owner of the house increase the payment which is not due to the boarders. Mr.Juan has the obligation to
return the money paid which is not due to the boarders.

4.4. Crimes or delict (Art.1161, NCC) Scope of liability

 Art. 1161. Civil obligations arising from criminal 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 XVIII of this Book, regulating damages. (1092a)

4.5. QUASI-DELICT (ART. 1162, NCC)DEFINITION; CRIMES VS. QUASI DELICT

DELICTS or acts or omissions punished by law as a source of obligations

Acts or omission punished by law is known as Delict or Felony or Crime.

 While an act or omission is felonious because it is punished by law, the criminal act gives rise to civil liability as it caused
damage to another. Civil liability arising from delicts:

 Restitution – which is the restoration of or returning the object of the crime to the injured party.
 Reparation – which is the payment by the offender of the value of the object of the crime, when such object cannot
be returned to the injured party.
 Indemnification – the consequential damages which includes the payment of other damages that may have been
caused to the injures party.

Illustration:

Mario was convicted and sentenced to imprisonment by the Court for the crime of theft, the gold wrist watch, of Rito.
In addition to whatever penalty that the Court may impose, Mario may also be ordered to return (restitution) the gold
wrist watch to Rito. If restitution is no longer possible, for Mario to pay the value (reparation) of the gold wrist watch.
In addition to either restitution or reparation, Mario shall also pay for damages (indemnification) suffered by Rito.

QUASI-DELICTS as a source of obligations

 Quasi-delict is one where whoever by act or omission causes damage to another, there being fault of negligence, is
obliged to pay for the damage done. Such fault of negligence, if there is no pre-existing contractual relation between
the parties. (Art. 2176)
Example- If Pedro drives his car negligently and because of his negligence hits Jose, who is walking on the sidewalk of the
street, inflicting upon him physical injuries. Then Pedro becomes liable for damages based on quasi-delict.

REQUISITES OF QUASI-DELICTS
 There must be fault of negligence attributable to the offended;
 There must be damage or injury caused to another;
 There is no pre-existing contract.