ARTICLE 1156. The obligation is a juridical necessity to give, to do, or not to do.

Civil Obligations
- (to give) to pay your tuition
- (to do) to take care of your children
- (not to do) not to steal
Not Civil Obligations
- (moral obligation) attend mass
- (natural obligation) to pay back your debt of gratitude (utang na loob)
Juridical Necessity- if one party failed to do the obligation, court will sanction the party
Essential Requisites- is there is an absence in one of the requisites, it is not considered as civil obligation
1. Passive Subject (debtor or obligor)- person who is bound to the fulfilment of the obligation, he
who has a duty
2. Active Subject (creditor or obligee)- person who is entitled to demand of the obligation, he who
has a right
3. Object or Prestation- conduct required to be observed by the debtor (it may consist in giving,
doing, or not doing)
4. Juridical/ Legal Tie/ Vinculum- binds or connects the parties to the obligation; contract
Example 1: Althea is obliged to pay her income taxes.
Passive Subject: Althea
Active Subject: Philippine Government (BIR)
Prestation: to give money (pay income tax)
Juridical Tie: Law (tax code)
(Unilateral Obligation: only 1 party is a passive subject.)
Example 2: Shervy sold a bottle of wine to Meg for $10,000.
Obligation 1 Obligation 2
Passive Subject: Shervy Meg
Active Subject: Meg Shervy
Prestation: Deliver bottle of wine To pay $10,000
Juridical Tie: Contract
(Bilateral Obligation: both parties have obligations.)
Obligations, Right, Cause of Action (Wrong)
Obligation- a juridical necessity to give, to do, or not to do
Right- power at which a person has under the law, to demand from another any prestation
Cause of Action- act (act that opposed the obligation) or omission (did not fulfil the obligation)
which violates a right
Example 3: Shervy sold a bottle of wine to Meg for $10,000.
Obligations Rights
Shervy Deliver the bottle of wine Demand collection of $10,000,000
Meg Pay $10,000 Demand delivery of bottle of wine
If Shervy delivered the bottle of wine and Meg does not pay Shervy $10,000,
Shervy will have a right of action.

Injury, Damage, ad Damages

Injury- act or omission which causes harm
Damage- the harm done to party
Damages- sum of money recoverable by reason of damage done
Example 3.3:
Cause of Action- omission on part of Meg (not paying)
Shervy- plaintiff
Damage- Shervy incurred loss on the sale
Meg- defendant
Damages- sum of money recoverable ($10,000)

Types of Obligations according to prestation:

1. Real Obligation- to give
2. Personal Obligation
a. Positive Personal- to do
b. Negative Personal- not to do

ARTICLE 1157. Obligations arise from:

1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omission punished by law
 5. Quasi-delicts
Obligations arising from LAW- when imposed by the law itself
Example 1:
1. Pay taxes (tax code)
2. Obligations of parents to the family (family code)
Obligations arising from CONTRACTS
Contract- is a meeting of minds between 2 people whereby binds himself, with respect to the
other, to give something or to render some service.
Obligations arising from QUASI-CONTRACTS
Quasi-contract- is that juridical relation resulting from certain lawful, voluntary and unilateral
acts by virtue of which the parties become bound to each other to the end that no one will be
unjustly enriched or benefited at the expense of another.
Quasi = “as if”
Example 2:
1. You received excessive change after buying from a store; it is your obligation to return the
excessive change. (solutio indebiti) I benefited from the excessive change at the expense of
the store.
2. Another person took care of your dog while you’re away, it is your obligation to reimburse
him the necessary expenses he incurred. (negotiorum gestio) I benefited because my dog is
still alive at my neighbor’s expense (food for the dog).
Obligations arising from ACTS OR OMISSION PUNISHED BY LAW/DELICTS
Delicts is also known as crime or felony. Unlike other sources of obligations, delicts produce
both criminal (imprisonment) and civil liabilities (payment for the damages).
Example 3:
1. Estafa, murder, rape (note that doing these crimes could get you imprisoned)
Obligations arising from QUASI-DELICTS
Also known as tort or culpa. Negligence. This is an act or omission by one party which causes
damage to another party wherein there is no pre-existing contract.
Example 4:
1. Because of the organizers’ negligence, audience were hurt during an event
2. Because you are not careful while running in a busy sidewalk, you bumped into a child and the
child suffered injuries.
 In both cases the tortfeasors (1. Organizers, 2. You) will answer for the medical expenses of the
audience (1) and the child (2).

ARTICLE 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.

This article refers to legal obligations or obligations rising from law. They are not presumed because they
are considered a burden upon the obligor. They are the exception, not the rule. To be demandable, they
must be clearly set forth in the law, i.e, Civil Code or special laws.

Special laws refer to all other laws not contained in the Civil Code. Such as Corporation Code, Negotiable
Instruments Law, Insurance Code, National Internal Revenue Code, Revised Penal Code, Labor Code, etc.
Example 1:
1. An employer has no obligation to furnish free legal assistance to his employees.
2. A private school has no legal obligation to provide clothing allowance to its teachers.

ARTICLE 1159. Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.

The above article speaks of contractual obligations or obligations arising from contracts or voluntary
agreements. It presupposes that the contracts entered into are valid and enforceable.

Contract- is a meeting of minds between 2 people whereby binds himself, with respect to the other, to
give something or to render some service.
1. Binding force- obligations arising from contracts have the force of law between the contracting
parties, i.e, they have the same binding effects of obligations imposed by laws. Contract must be
valid and it cannot be valid if it is against the law.
2. Requirement of a valid contract- a contract is valid (assuming all the essential elements are
present; Art. 1318) it is not contrary to law, morals, good customs, public order, and public
policy. It is invalid or void if it is contrary.
 In the eyes of the law, a void contract does not exist. (Art. 1409) Consequently, no obligations
will arise.
3. Breach of contract- a contract may be breached or violated by a party in whole or in part. A
breach contract takes place when a party fails or refuses to comply, without legal reason or
justification, with his obligation under the contract as promised.
Compliance in good faith means compliance or performance accordance with the stipulations or terms
of the contract or agreement. Sincerity and honesty must be observed to prevent one party from taking
unfair advantage over the other. (Examples page 24)

ARTICLE 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1,
Title XVII of this Book.

This article treats of obligations arising from quasi-contracts or contracts implied in law.
Quasi-contract- is that juridical relation resulting from certain lawful, voluntary and unilateral acts by
virtue of which the parties become bound to each other to the end that no one will be unjustly enriched
or benefited at the expense of another. (Art. 2142)

Kinds of Quasi-contracts
1. Negotiorum gestio- is the voluntary management of the property or affairs of another without
the knowledge or consent of the latter. (Art. 2144-2153)
It is NOT a negotiorum gestio in either of these instances:
a. When the property or business is not neglected or abandoned. (Unauthorized contract)
b. If in fact the manger has been tacitly authorized by the owner. (Contract of agency)
Example 1:
Liam went to New Zealand without leaving somebody to look after his house in UK.
While in NZ, a big fire broke out near the house of Liam. Through the effort of Zayn, a neighbour,
the house of Liam was saved from being burned. Y, however, incurred expenses.
Liam has the obligation to reimburse Zayn for the said expenses, although he did not
actually give his consent to the act of Zayn in saving his house, on the principle of quasi-
contract.
 2. Solutio indebiti- is the juridical relation which is created when something is received when there
is no right to demand it and it was unduly delivered through mistake. (Art. 2154-2163.) It is
based on the principle that no one shall enrich himself unjustly at the expense of another.
The requisites are:
 There is no right to receive the thing delivered; and
 The thing was delivered by mistake.
Example 2:
Niall owes Hailee 1,000. If Niall paid Taylor believing that Taylor was authorizes to
receive payment for Hailee, the obligation to return on thr part of Taylor arises.
If Naill paid Hailee 2,000 by mistake, Hailee must return the excess of 1,000.
The presumption (Art. 1176.) however, is that “money paid by one to another was due
to the latter.,” unless the payor proves otherwise.
3. Other examples of quasi-contracts- they are provided in Articles 2164 to 2175 of the Civil Code.
The cases that have been classified as quasi-contracts are of infinite variety, and when for some
reason recovery cannot be had on a true contract, recovery may be allowed on the basis of a
quasi-contract.
Example 3:
Lisa, a seller of goat’s milk, leaves milk at the house of Jennie each morning. Jennie uses
the milk and places the empty bottles on the porch. After 1 week, Lisa asks payment for the milk
delivered.
An implied contracts is understood to have been entered into by the very acts of Lisa
and Jennie, creating an obligation on the part of Jennie to pay the reasonable value of the milk,
otherwise, Lisa would be unjustly benefited at the expense of Jennie.

ARTICLE 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 XVII of this Book, regulating damages.

Civil liabilities arising from crimes or delicts

- This article deals with civil liability for damages arising from crimes or delicts. (Art. 1157[4].
 1. Civil liability in addition to criminal liability- From this principle, the rule has been established
that every person criminally liable for an act or omission is also liable for damages suffered by
the aggrieved party. (Art. 100, Revised Penal Code).
2. Criminal liability without the civil liability- in crimes, however, which cause no material damage
(like contempt, insults to persons in authority, gambling, violations of traffic regulations, etc.)
there is no civil liability to be enforced.
3. Civil liability without the criminal liability- a person not criminally responsible may still be liable
civilly, such as failure to pay a contractual debt; causing damage to another’s property without
malicious or criminal intent or negligence, etc., or when the obligations arises from quasi-delicts.
Scope of Civil Liabilities
1. Restitution the restitution of the thing itself must be made whenever possible, which allowance
for any deterioration, or diminution of value as determined by the court.
2. Reparation for the damage caused- court shall determine the amount of damage, taking into
consideration the price o the thing, whenever possible, and its special sentimental value to the
injured party, and reparation shall be make accordingly. (return the vehicle to the state before
stolen) (it is not possible if the thing cannot be recovered)
3. Indemnification for the 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.
Example 5:
Louis stole the vehicle of Harry. Louis was sighted by the authority and was engaged in a
car chase. After a while, Louis was apprehended by the authority but the vehicle he stole from
Harry got damaged. Furthermore, Harry should have presented the vehicle in a car show the
same day Louis stole the said vehicle. As a result, Harry loss potential income from the car show.

Restitution- return of the vehicle (if the vehicle cannot be return, Louis have to pay the
monetary value of the vehicle)
Reparation- answer for the damage caused to the vehicle (it has sentimental value, the court
will determine its value)
Indemnification- since Louis’ act resulted to Harry’s loss in the car show, Louis will also answer
for the said loss.
ARTICLE 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2,
Title XVII of this Book, and by special laws.

Obligations arising from quasi-delicts.

- The above provision treats of obligations arising from quasi-delicts or torts. (see Art. 2176-2194)
- A quasi-delict is an act or omission by a person (tortfeasor) which causes damages to another in
his person, property, or rights, giving rise to an obligation to pay for the damage done, there
being fault or negligence but there is no pre-existing contractual relation between the parties,
(Art. 2176.)
Requisites of quasi-delict
Before a person can be held liable for quasi-delict, the following requisites must be present:
1. There must be an act or omission;
2. There must be fault or negligence;
3. There must be damage caused;
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.

Crime distinguished from quasi-delict