OBLIGATIONS – CHAPTER 1
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GENERAL PROVISIONS
ART. 1156. An obligation is a juridical
necessity to give, to do or not to do.
OBLIGATION
Derivation: obligation (latin)
- tying or binding
- one is bound in favor of another to render
something (to give, to do, not to do)
- a juridical necessity
- in case of noncompliance, the courts of
justice may be called upon by the
aggrieved party to enforce its fulfilment.
- the rights and duties arising from
obligation are legally demandable and
the courts of justice may be called upon
through proper action to order the
performance
*the debtor must comply with his obligations whether
he likes it or not.
FOUR (4) ESSENTIAL REQUISITES
1. Passive subject (debtor/obligor)
- who has the duty to fulfill the obligation
2. Active subject (creditor/obligee)
- who has the right to demand fulfilment
of the obligation
3. Prestation
- conduct required to be observed by the
passive subject
- 3 kinds to give, to do or not to do
4. Juridical tie (vinculum juris/efficient cause)
- binds or connects the parties to the
obligation
Example 1:
Seokjin is obliged to pay his income taxes.
Passive subject – Yoongi / who has a duty
Active subject – Government / who has a right
Prestation – pay his income taxes / conduct to
be observed
Juridical tie – Law (Tax code) / binds & connects
the parties
*Unilateral obligation – only one party has a duty
Example 2:
JK sold an artwork to Hobi worth 10K.
Obligation 1 Obligation 2
Passive Subject JK Hobi
Active Subject Hobi JK
Prestation to deliver the artwork to pay 10k
Juridical tie Contract of Sale
*Bilateral obligation – two parties have an obligation
TERMS
right – power which a person has under the law,
to demand prestation
*for every obligation there is always a
corresponding right
wrong / injury – an act or omission of one party
in violation of legal rights of another, causes
harm
*act – obliged not to do but you act
*omission – not fulfilling your obligation
*only arises at the moment the right has
been transgressed or violated
damage – the harm that is done to a party
damages – sum of money recoverable by
reason of the damage done
Example 2.5:
JK deliver the artwork but Hobi didn’t pay 10K.
- JK will have a right (right of action) to
demand Hobi to pay for the artwork
since Hobi doesn’t fulfill his obligation to
pay.
- wrong / injury (cause of action) –
omission on the part of Hobi since he
doesn’t pay (not fulfilling his obligation)
- damage – JK incurred loss on the sale
- damages – 10k+ (if there’s something
that happen while delivering / other
incurred value loss)
 OBLIGATIONS – CHAPTER 1
GENERAL PROVISIONS
KINDS OF OBLIGATION ACCORDING TO
SUBJECT MATTER
1, Real obligation (obligation to give)
- subject matter is a thing and must be
delivered or given
Example:
Hopebox (seller) binds himself to deliver the BE
album to Eljeane (buyer)
2. Personal obligation – (obligation to do or
not to do)
- subject matter is an act to be done or
not be done
Example 1: Positive personal obligation (to do)
Yoongi binds himself to repair the sliding door of
Namjoon
Example 2: Negative personal obligation
(not to do)
Jimin obliges himself not to build fence on a
certain part of the lot in favor of Jin who is
entitled and has the right on the said portion.
ART. 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
(1) Law. – when they are imposed by law itself.
Examples:
- Obligation to pay taxes (Tax Code)
- Obligation to support one’s family
(Family Code)
(2) Contracts. – a meeting of the minds
between two persons whereby one binds
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himself, with respect to the other, to give
something or to render some service.
Example:
the obligation to repay a loan or indebtedness by
virtue an agreement.
(3) Quasi – Contracts. – arises from lawful,
voluntary and unilateral act to the end that no
one shall unjustly enrich or benefited himself at
the expense of another.
*Quasi – as if / semi
*lawful – legal
*voluntary – di pwersado / kusang loob
*unilateral act – isa lang gumawa
*will also be defined in art.1160
Example:
The obligation to return money paid by mistake
or which is not due. (solutio indebiti)
(4) Crimes or acts or omissions punished by
law. – when they arise from civil liability which is
the consequence of a criminal offense.
*civil liability – kasuhan sa court against sayo
at bayad ka ng mga damages
Example:
- the obligation of the thief to return the
car stolen by him
- the duty of a killer to indemnify the heirs
of his victim
(5) Quasi – delicts or torts. – arise from any
act or omission which causes damage to
another, there being fault or negligence, and
there being no pre-existing contractual relation
between the parties.
Example:
The obligation of the head, a family that lives in
a building or a part thereof to answer for
damages caused by things thrown or falling from
the same
Sources classified
1. Those emanating (origin / proceeding) from
law; and
2. Those emanating from private acts which
may be subdivided into:
 OBLIGATIONS – CHAPTER 1
GENERAL PROVISIONS
a arising from licit acts, in the case of
contracts and quasi – contracts; (lawful)
b arising from illicit acts, either punishable
in the case of delicts, or not punishable
in case of quasi – delicts or torts.
(unlawful)
But there are only two sources: law and
contracts, since obligations from quasi contracts,
delicts and quasi – delicts are imposed by law.
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)
*presume – suppose a fact/probability is true
*assume – suppose without evidence
*precept – an order issued by legal authority
Legal obligations
- to be demandable, they must be clearly set
forth in the law (Civil Code or special law: all
other laws not contained in Civil Code such as
Revised Penal Code, Labor Code etc.)
Examples:
An employer has no obligation to his employee
for free legal assistance on hiring a lawyer to
recover damages caused to him by a stranger
while performing his duties since there is no law
requires this.
A private school has no legal obligations to
provide clothing allowances to its teachers since
there is no law regarding this
ART. 1159. Obligations arising from
contracts have the force of law between
the contracting parties and should be
complied with in good faith.
Contractual obligations
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- obligations arising from contracts or
voluntary agreements
- presupposes that the contracts are valid
and enforceable
Contracts – meeting of two minds binding
one’s self on the other in exchange of
something.
(1) Binding force – (valid) contract: superior to
the law as a source of enforceable obligation.
(2) Requirement of a valid contract – a contract
is valid if it is not contrary to the law, morals,
good customs, public order, and public policy. It
is invalid or void if it is contrary to the said basis.
*In the eyes of the law, a void contract does
not exist thus no obligation will rise
*a contract may be valid but cannot be
enforced – unenforceable contract
(3) Breach of contract – when a party fails or
refuses to comply, without legal reason or
justification, with his obligation under the
contract as promised. (in a whole or in part)
Compliance in good faith
- compliance or performance in accordance with
the stipulations or terms of the contract or
agreement
*stipulation – condition, demand , or promise
in a contract.
- sincerity and honesty must be observed to
prevent unjust enrichment over the other
- non-compliance by a party with his legal
obligations after receiving the benefits of a
contract = unjust enrichment on his part
Example:
NamJin sells the house to YoonMin, YoonMIn
agrees voluntarily and willingly to buy the house
of NamJin. They are bound to the terms of their
contract and neither party may, upon his own
will, and without justifiable reason, withdraw from
the contract or escape from the liabilities
thereunder
*agreed upon in the contract is the law
between NamJin and YoonMin and must be
complied in good faith.
 OBLIGATIONS – CHAPTER 1
GENERAL PROVISIONS
- if the contract is contrary to the law = null/void,
he has no obligation to comply with his
agreements
ART. 1160. Obligations derived from
quasi – contract shall be subject to the
provisions of Chapter 1, Title XVII of this
Book. (n)
- not properly a contract at all
- the law considers the parties having entered to
a contract, although they have not actually done
so, and irrespective of their intention, to prevent
injustice and unjust enrichment of a person at
the expense of another.
There are two common forms of
quasi – contract
1. negotiorum gestio – voluntary management
of the property / affairs of another without the
knowledge or consent of the latter.
Example 1:
Taehyungie left his dog since he has a world
tour concert and his neighbour Eljeane took care
of it while his away.
- Taehyungie has an obligation to
reimburse Eljeane for the expenses she
incurred even if he did not actually give
Eljeane his consent to take care of his
dog.
- Reimburse mo kasi ikaw rin naman
nagbenefit sa ginawa niya
2. solutio indebiti – someone is paid or given
something by mistake and gives rise to the
obligation to return.
Example:
Jeongguk received an excessive change after
buying banana milk.
- It’s his obligation to return the excessive
change he received since it was given
through a mistake and he has no right
to receive the excessive change
ART. 1161. Civil obligations arising from
criminal offenses shall be governed by
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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)
- Obligations arising from crimes produce
both criminal (imprisonment / penal
code) and civil liability (case sa court
and payment on the damages caused)
(1) Commission of a crime causes not only
moral evil but also material damage thus every
person criminally liable for an act or omission is
also civilly liable for damages.
(2) In crimes which cause no material damage
(insults to person in authority, violations of traffic
rules, etc.) there is no civil liability to be
enforced. But a person not criminally responsible
may still be liable civilly such as causing damage
to another’s party due to negligence.
Scope of civil liability
- Governed by the Revised Penal Code
and the Civil Code.
(1) Restitution – to return the thing or to pay its
value (monetary) if it was lost or destroyed
(2) Reparation – pay the damage caused to the
thing
(3) Indemnification – to pay such other damages
suffered as a consequence of the crime /
consequential damage.
Example:
Gun Woo stole the car of Yoongi; he was caught
on action and was car chased by the police. The
car has some scratches during the car chase.
Unfortunately, Yoongi will bring it on a car show
to earn money. (criminal liability)
(1) return the car of Yoongi; if the car was fully
destroyed, he must pay the monetary value of it.
(2) repair for the damage caused; pay for the
sentimental value of the car (fully destroyed / not
recoverable)
(3) pay for Yoongi’s loss since may kita dapat
siya from the car show if the car was not stolen.
 OBLIGATIONS – CHAPTER 1
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GENERAL PROVISIONS

them because he is guilty of fault or

negligence.
ART. 1162. Obligations derived from
quasi-delicts shall be governed by the
provisions of Chapter 2, Title XVII of this Crime distinguished from quasi – delicts
Book, and by special laws. (1093a)
CRIME QUASI-DELICT
Quasi – delicts or torts. – arise from any act or
omission by a person (tortfeasor – negligent What is
Criminal or
citizen) which causes damage to another, due to malicious intent, or Only negligence
done
criminal negligence
negligence, but there is no pre-existing
contractual relation between the parties. Indemnification of
purpose Punishment
(Art.2176) the offended party
Quasi – delict
Art. 2176. demandable not only for one’s own Affects? Public Interest
interest
acts or omissions, but also for those of persons
for whom one is responsible. Liabilities Criminal and civil Only civil

Can’t be
Example:
compromised or Can be
Settle?
Jin as Jeonggukie’s guardian is liable for all the settled by the compromised
parties themselves
damages Jeonggukie may cause since he is a
minor and under Jin’s authority and lives with Proven Beyond reasonable Preponderance of
with? doubt evidence
him.

Requisites of quasi – delicts

(1) There must be an act or omission by the

defendant;

(2) There must be fault or negligence of the

defendant;

(3) There must be damage caused to the

plaintiff;

(4) There must be a direct relation or connection

of cause and effect between the act or omission
and the damage; and

(5) There is no pre-existing contractual relation

between the parties.

Example:

Hobi jogs every morning but this morning he was

preoccupied and didn’t notice that there was
man with a handful of glassware crossing the
street and got bumped to him. The glassware
shattered into pieces. The accident wouldn’t
happen if he Hobi was mindful with his
surrounding while he jogs.

- In this case Hobi is under obligation to

pay the damage he caused to the man
by his act although there is no pre-
existing contractual relation between