GENERAL PROVISIONS (1156 – 1162)

Article 1156
– an obligation (Civil Obligation) is a “juridical necessity” to give, to do, or not to do.

o Juridical Necessity – means that incase of noncompliance by the obligor, the COURT OF
JUSTICE may be called upon to enforce it fulfillment or the economic value it represents.
(this does not apply to other obligations other than civil (e.g. Moral, Natural, etc.)

ESSENTIAL REQUISITES

Passive Subject (Obligor) – the person who needs to fulfill the obligation.

Active Subject (Obligee) – the person who is entitled to demand the fulfillment of the
obligation.

Prestation / Object / Subject Matter – the conduct required to be observed by the obligor.
(may be giving, doing, or not doing)

Juridical tie / Vinculum / Vinculum Juris – binds or connects the parties to the obligation.
(Why does the passive subject have an obligation to the active subject?)

Unilateral Obligation – only one party has an obligation.

Bilateral Obligation – both parties are passive and active subjects of the contract.

Obligation – (refer to Art. 1156 / Civil Obligation)

Right – the power which a person has under the Law, to demand any prestation from
another.

Cause of Action – Act or omission that violates a right.

Injury – act or omission which causes harm.

Damage – the harm done to a party.

Damages – sum of money recoverable by reason of damage done.

Right of Action – the right of an oblige to take actions for their right to resolve uncompiled
obligation.

Real Obligation – to give

Personal Obligation
➢ Positive personal – to do
➢ Negative personal – not to do
Article 1157

SOURCES OF OBLIGATIONS

Law – when imposed by law itself. (e.g. Pay Taxes (Tax Code, Obligations of Parents to family
(Family Code.))

Contracts – meeting of minds between 2 persons whereby one binds himself, with respect to
the other, to give something to render some services.
• may be oral or written.

Quasi-contracts – a juridical relation resulting from certain LAWFUL, VOLUNTARY, and

UNILATERAL ACTS that results the parties to be bound to each so that no one will be unjustly
enriched in the expense of others.

Acts or omissions punished by law (Delicts) – aka Crime or Felony.

• May produce both Criminal (Penal Code) and Civil Liabilities (Civil Code).

Quasi-delicts – aka Tort or Culpa.

• Negligence of the obligor that causes damage to the other party that creates an
obligation despite not having a contract.

SCOPE OF CIVIL LIABILITIES

Restitution – restitution/ replacement / return of the actual object of the obligation or the fair
value of the object, with allowance for any deterioration, or diminution of value as determined
by the court.

Reparation for the damage caused – the cost to return the object to its original state. The court
shall determine the amount of damage (price of the thing + special sentimental value to the
injured party) for basis of the reparation.

Indemnification for consequential damages – includes; damages that caused the injured party +
effects to third persons or the consequences caused by the crime/ breach.

Article 1158
Obligations derived from Law are not presumed.

Never assumed that there is such an obligation unless EXPRESSLY DETERMINED in the Code (e.g
Civil Code) or in Special Law (e.g. Law on Corporations) are demandable.
Article 1159
Obligations arising from Contracts (legal and valid contracts) have the FORCE OF LAW between
the contracting parties.

These obligations should be COMPLIED WITHIN GOOD FAITH.

Article 1160
Obligations arising from LAWFUL, VOLUNTARY, and UNILATERAL acts are Quasi-Contracts.

No one shall be unjustly enriched or benefited at the expense of another.

KINDS OF QUASI-CONTRACTS

➢ Negotiorum Gestio – the voluntary administration of the property without the consent
of the owner.
➢ Solutio Indebiti – created when something is received when there is no right to demand
it and it was unduly delivered through mistake.
➢ Other Quasi – Contracts – when for some reason cannot be had on a true contract,
recovery may be allowed on the basis of a Quasi-Contract.
o E.g. If a stranger voluntarily gives something to someone, without the knowledge
of that someone, the stranger has the right to claim the same from that
someone (unless he has no intention of being repaid)
o A doctor voluntarily aiding a critical patient has the right for reimbursement.

Article 1161
Obligations arising from criminal offenses (Delicts) shall be governed by the PENAL LAWS.

Criminal Liability = Imprisonment

Civil Liabilities = Restitution, Reparation, Indemnification (Art. 1157)

Article 1162
Obligations arising from fault or negligence w/o pre-existing contractual relation is called Quasi-
Delict.

(Art. 2176) Whoever by act or omission causes damage to another, there being fault or
negligence, is obliged to pay for the damage done.
NATURE AND EFFECT OF OBLIGATIONS (1163 – 1178)
Real Obligation – to give, object may be;

o Specific Thing (determinate) – particularly designated OR physically segregated

from others of the same class.
o Generic Thing (indeterminate) – refers to a class or genus and cannot be pointed
out with particularity.

Personal Obligation
o Positive personal – to do
o Negative personal – not to do

Personal Right – Rights from the fruit (existence cause by the object) of the thing from the
time the obligation arises.

Real Right – Acquired upon delivery of the object.

Article 1163 – Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father, unless the law or the stipulation of the parties requires
another standard of care

Article 1164 – The creditor has the rights to the fruit (natural, industrial, civil) of the thing from
the time the obligation to deliver arises.

Article 1165 – When the obligation is to be delivered is a Determinate thing, the creditor may
compel the debtor to make the delivery.

If the thing is indeterminate, he may ask that the obligation be complied with (by a third party)
at the expense of the debtor.
Article 1166 – The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they might not have been mentioned.

Article 1167 – If a person obliged to do something fails to do it (or asks a third party to comply
with it), the same shall be executed at his cost. What has been poorly done be undone.

Article 1168 – (obligation not to do) When an obligor does what is forbidden, he shall undo it
at his expense.

Article 1170 – Those who in the performance of their obligation are guilty of fraud, negligence,
or delay and those who contravene the tenor thereof, are liable for damages

• Fraud
➢ Casual Fraud (dolo causante) – Fraud in obtaining consent. (usually for contracts)
➢ Incidental Fraud (dolo incidente) – Fraud in the performance of the obligation.
• Negligence
➢ Culpa aquiliana (quasi-delict) – minor damage, no contract but there is an
expense on the obligor. Preponderance of Evidence
➢ Culpa contractual (contract) – a contract exists, damage made because of breach
of contract but not intentional. Preponderance of Evidence
 ➢ Culpa criminal (delict) – serious damages (e.g. the death of a person). Proof
Beyond Reasonable Doubt.

➢ Negligence can be equivalent to fraud if there us GROSS NEGLIGENCE

(carelessness which is in reckless disregard for the safety of lives of
others). Almost to diligence, diff from lack of diligence.
• Delay
o Mora Solvendi – delay of debtor
o Mora Accipendi - delay of creditor
o Compensatio Morea – delay of both creditor and debtor (e.i. no delay).
➢ Article 1169 – (Delay)
 • Contravene the Tenor – In contrast with the terms and conditions stated in the
obligation without justice excuse or reason.

Fortuitous Event – an event uncontrollable by a person. May cause the obligation to deliver a
thing (specific) be extinguished.

Presumptions – a rule of law which permits a court to assume a fact is true until such time as
there is a preponderance (greater weight) of evidence which disproves or outweighs (rebuts)
the presumption.

• Conclusive Presumptions - cannot be rebutted by additional evidence or argument.

• Disputable Presumptions – can be rebutted by additional evidence or argument.

Transmissibility of Rights – a right to be transferred to another person.

KINDS OF OBLIGATIONS (1179 – 1230)
1. PURE AND CONDITIONAL (1179 – 1192)

ARTICLE 1179

Pure – Every obligation whose performance does not depend upon a future or uncertain event,
or upon a past event unknown to the parties, is demandable at once. (1179)

• An obligation whose performance is NOT DEPENDENT upon a condition, or a

period is DEMANDABLE AT ONCE.

Conditional – Every obligation which contains a resolutory condition shall also be demandable,
without prejudice to the effects of the happening of the event. (1179)

• “Demandable IF…” Obligations whose performance depends upon (conditions);

o Future and Uncertain Events
o Past event known to the parties

ARTICLE 1180 – when the debtor BINDS HIMSELF TO PAY WHEN HIS MEANS PERMIT HIM TO
DO SO, the obligation shall be deemed to be one with a period.

ARTICLE 1181 (classification of conditions – 1)- In conditional obligations, the ACQUISITION OF

RIGHTS, as well as the EXTINGUISHMENT or LOSS OF THOSE ALREADY ACQUIRED, shall depend
upon the happening of the event which constitutes the condition.

Types of Conditions: According to EFFECT ON OBLIGATION (Dependent on one of the parties)

1. Suspensive – conditions that causes the BIRTH of obligation.

2. Resolutory – conditions that cause the EXTINGUISHMENT of the obligation.

ARTICLE 1182 (classification of conditions – 2)– when the fulfillment of the condition depends
upon the sole will of the debtor, the conditional obligation shall be void. If it depends upon
chance or upon will of a third person, the obligation shall take effect in conformity with the
provisions of this Code.

Types of Conditions: According to WHOSE WILL IT DEPENDS

1. Potestative Condition – fulfillment depends upon the will of one of the parties (maybe
potestative on the part of creditor or debtor)

On the part of the Debtor:

 ➢ Potestative – Suspensive Condition – “Kaneki obliged himself to give touka a specific car
if he (Kaneki) will go to the mall tomorrow.” (VOID)
➢ Potestative – Resolutory Condition – “Kaneki obliged himself to shoulder Touka’s living
expenses until he wants.”
➢ Obligation with a Period (1180) – “Kaneki Obliged himself to pay his debt to Touka when
his means permit him to do so.” (NOT A CONDITIONAL OBLIGATION)

On the part of the Creditor:

➢ Postestative – Suspensive Condition – “Kaneki obliged himself to give Touka a golden

bracelet if Touka will go to the mall tomorrow.”
➢ Potestative – Resolutory Condition – “Kaneki lets Touka live under his house until Touka
wants to go home.”

2. Casual Condition – Fulfillment depends upon chance and/ or will of a third person.
3. Mixed Condition – Fulfillment depends partly upon the will of one of the parties and
partly upon chance and/ or will of a third person.

ARTICLE 1183 – IMPOSSIBLE CONDITIONS, those contrary to good customs or public policy and
those prohibited by law shall annul the obligation which depends upon them.
• If the obligation is divisible, that part thereof which is not affected by the
impossible or unlawful condition shall be valid.
• The condition not to do an impossible thing shall be considered as not having
been agreed upon.

TYPES OF IMPOSSIBLE CONDITIONS

• Physically Impossible Conditions – conditions that is naturally impossible to

happen/fulfill.
• Legally Impossible Conditions – conditions that is naturally possible to happen/fulfill but
is contrary to law, morals, good customs, public order, or public policy.
ARTICLE 1184 – (POSITIVE CONDITIONS) the condition that some events happen at a
determinate time shall extinguish the obligation as soon as the time expires or if it has become
indubitable that the evet will not take place.

ARTICLE 1185 – (NEGATIVE CONDITION) the condition that some event will not happen at a
determinate time shall render the obligation effective from the moment the time indicated has
elapsed, or if it has become evident that event cannot occur. (pr. 1)

• Positive Condition

“Berta bound himself to give Elizabeth a land if Elizabeth will marry Meliodas within the year.”

• Negative Condition

“Berta bound himself to give Elizabeth a land if Elizabeth will not marry Meliodas within the
year.”

WHEN CONDITIONS ARE DEEMED FULFILLED

– if no time has been fixed, the condition shall be deemed fulfilled at such time as may have
been probably been contemplated, bearing in mind the nature of the obligation. (1185, pr. 2)

ARTICLE 1186 – the condition is deemed fulfilled if the obligor voluntarily prevents it’s
fulfillment.

ARTICLE 1187 –
RETROACTIVE EFFECTS IN SUSPENSIVE CONDITIONS

• To Give – an obligation to give subject to a suspensive condition becomes demandable

only upon the fulfillment of the obligation. However, once the obligation is fulfilled, its
effects shall retroact to the day when the obligation was constituted.
• To Do, Not to Do – No. fixed rule is provided. The court shall determine the retroactive
effect.

Unilateral Obligations
• Fruits and interest received shall belong to the debtor unless there is an
agreement between the parties that says otherwise.

Reciprocal Obligations
• Fruits and interest are deemed mutually compensated; fruits of the parties will
remain as their own.
ARTICLE 1188 – The creditor may, before the fulfillment of the condition, bring the appropriate
actions for the preservation of his right.
o “Ohma promised Karla a specific dog for her birthday. In case that the Dog is dying, Karla
may take action in saving the dog.”

- The debtor may recover what during the same time he has paid by mistake in case of a
suspensive condition.
o “Karla has a P10,000 debt to Ohma payable after 3 years. 1 year before maturity, having
thought that 3 years already elapsed, paid Ohma the P10,000 debt.”

ARTICLE 1189 – when the conditions have been imposed with the intention of suspending the
efficacy of an obligation to give, the following rules shall be observed in case of the
improvement, loss or deterioration of the thing during pendency of the obligation:

o If the thing is lost WITHOUT the fault of the Debtor, the obligation shall be
EXTINGUISHED.
o If the thing is lost THROUGH the fault of the debtor, he shall be obliged to pay damages;
it is understood that the thing is lost when it perishes, or goes out of commerce or
disappears in such a way that its existence is unknown or it cannot be recovered.
o When the thing deteriorates WITHOUT the faut of the debtor, the impairment is to be
borne by the creditor.
o If the thing deteriorates THROUGH the fault of the debtor, the creditor may choose
between the recission of the obligation and its fulfillment, with indemnity for damages in
either case.
o If the thing is IMPROVED BY ITS NATURE, or by time, the improvement shall inure to the
benefit of the creditor.
o If the thing is IMPROVED AT THE EXPENSE OF THE CREDITOR, he shall have no other
right than that granted to the usufructuary.
ARTICLE 1190 – (RESOLUTORY CONDITION)
EFFECTS OF FULFILLMENT OF RESOLUTORY CONDITION

• To Give – when the resolutory condition in an obligation to give is fulfilled, the

obligation is extinguished, and the parties are obliged to return to each other what they
have received.
• In case of loss, deterioration, or improvement of the thing, the provision which,
with respect to the debtor, are laid down in the PRECEDING ARTICLE (1189) shall
be applied to the party who is bound to return.
• To Do, Not to Do – No fixed rule is provided. The court shall determine the retroactive
effect. (1187)

ARTICLE 1191 – (RECIPROCAL OBLIGATION: “From the time the other party fulfills their
obligation, the other party will be held liable.”)

• In case the other party will not comply with their obligation, the other party can have
the power to rescind (cancel) the obligation.
• The injured party may choose between FULFILLMENT or RESCISSION of the obligation
(with payment of damages in either case).
• If fulfillment is impossible, he (injured party) may choose recission.
• The court shall decree the rescission claimed, unless there be just cause authorizing the
fixing of a period.
• Understood to be without prejudice to the rights of third persons who have acquired the
thing.

ARTICLE 1192 – Incase both parties have committed a breach of the obligation, the liability of
the FIRST INFRACTOR shall be equitably tempered by the courts

- If it cannot be determined which of the parties first violated the contract, the same
shall be deemed EXTINGUISHED, and each shall bear his own damages.
 2. OBLIGATION WITH A PERIOD (1193-1198)

ARTICLE 1193 – Obligations for whose fulfillment a day certain has been fixed, shall be
demandable only when that day comes.
- Obligations with a resolutory period take effect at once but terminate upon arrival of
the day certain.
- A “day certain” is understood to be that which must necessarily come, although it may
be not known when.
- If the uncertainty consists in whether the day will come or not, the obligation is
conditional and shall be regulated with the preceding section (PURE AND CONDITIONAL
(1179 – 1192))

Suspensive Period (Ex Die) – period that makes the obligation DEMANDABLE.
Resolutory Period (In Diem) – period that TERMINATES an obligation

ARTICLE 1194 – In case of loss, deterioration or improvement of the thing before the arrival og
the day certain, the rules in ARTICLE 1189 shall be observed.

RIGHTS OF THE DEBTOR IN AN OBLIGATION WITH A PERIOD

ARTICLE 1195 – Anything paid or delivered before the arrival of the period, the obligor
unaware of the period or believing that he obligation has become due and demandable, may be
recovered, with the fruits and interests.

BENEFIT OF THE PERIOD

ARTICLE 1196 – General rule: Whenever in an obligation a PERIOD IS DESIGNATED, it is
presumed to have been established for the BENEFIT OF BOTH THE CREDITOR AND DEBTOR,
unless from the tenor of the same or other circumstances it should appear that the period has
been established in favor of one or of the other.
WHEN THE COURT MAY FIX THE PERIOD

ARTICLE 1197 – The courd may fix the period when;

• If the obligation does not fix a period, but from its nature and the circumstances it can
be inferred that a period was intended, the courts may fix the duration thereof.
• When it depends upon the will of the creditor
• the period is VOID (by the court), such as when it depends upon the will of the debtor.
(1182 (conditions)
• If the debtor binds himself when his means permit him to do so. (1180)
• As may under the circumstances have probably contemplated by the parties. ONCE
FIXED BY THE COURTS, THE PERIOD CANNOT BE CHANGED BY THEM

WHEN DEBTOR LOSSES BENEFIT OF THE PERIOD

ARTICLE 1198 – The debtor shall lose every right to make use of the period (the obligation will
be demandable at once) when;

1. When after the obligation has been contracted, he becomes insolvent, unless he gives
guarantee or security for the debt.
2. When he does not furnish to the creditor the guaranties or securities which he has
promised.
3. When by his own acts he has impaired said guaranties or securities after their
establishment, and when through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactory. (the equilateral was destroyed either
by a fortuitous event or fault of the debtor, unless another equilateral that is
satisfactorily similar is given)
4. When the debtor violates any undertaking, in consideration of which the creditor agreed
to the period.
5. When the debtor attempts to abscond. (act of running away from obligation)
 3. ALTERNATIVES (1199-1206)

KINDS OF OBLIGATIONS ACCORDING TO NUMBER OF PRESTATION

• Simple Obligation – only one prestation
• Compound Obligation – two or more prestation
o Conjunctive Obligation – all prestation must be fulfilled to extinguish the
obligation.
o Alternative Obligation – only one prestation must be fulfilled to extinguish
the obligation.

RULES REGARDING ALTERNATIVE OBLIGATIONS

ARTICLE 1199 – A person alternatively bound by different prestations shall completely perform
one of them.
- The creditor cannot be compelled to receive part of one and part of other undertaking.
ARTICLE 1200 – The RIGHT OF CHOICE BELONGS TO THE DEBTOR (GENERAL RULE), unless it
has been expressly granted to the creditor.
- The debtor shall have no right to choose those prestations which are impossible,
unlawful or which could not have been the object of the obligation.

ARTICLE 1201 – The choice shall produce no effect except from the time it has been
communicated.
o Unless the choice has been communicated, the obligation remains to be an
alternative.
o When the choice will be communicated (by the debtor), Alternative becomes
Simple.

ARTICLE 1202 – The debtor shall lose the right of choice when among the prestations whereby
he is alternatively bound, only one is practicable.

IF IMPOSSIBLE, UNLAWFUL OR COULD NOT HAVE BEEN THE OBJECT OF THE OBLIGATION
• The remaining prestations (if there are any) will be the only ones available/ practicable
and the obligation remains to be ALTERNATIVE.
• When only one out of all the alternative prestations are possible/legal, the obligation
automatically becomes a SIMPLE one.
• When all alternative prestations are impossible/illegal, the obligation becomes VOID.
LOSS VIA FORTUITOUS EVENT
• The remaining prestations (if there are any) will be the only ones available/
practicable and the obligation remains to be ALTERNATIVE.
• If only one left will be practicable, the obligation becomes a SIMPLE one.
• If all is unpracticable, the obligation is VOID/EXTINGUISHED.

ARTICLE 1203 – if through the CREDITOR’s acts the debtor cannot make a choice according to
the terms of the obligation, the latter may rescind the contract with damages.

LOSS VIA DEBTOR’S FAULT

• The remaining prestations (if there are any) will be the only ones available/ practicable
and the obligation remains to be ALTERNATIVE.
• If only one left will be practicable, the obligation becomes a SIMPLE one.
• If all is unpracticable, the Debtor is obliged to pay the value of the last thing lost plus
damages. (1204)

ARTICLE 1204 – The creditor shall have the right to indemnity for damages when, through
the fault of the debtor, all the things which are alternatively the object of obligation have been
lost, or the compliance of the obligation has become impossible.
- The indemnity shall be fixed taking as a basis the value of THE LAST THING which
disappeared, or that of the service which became impossible.
- Damages other than the value of the last thing or service may also be awarded.

ARTICLE 1205 – When the choice has been (RIGHT OF CHOICE) EXPRESSLY GIVEN TO THE
CREDITOR, the obligation shall cease to be alternative from the day when the selection has
been communicated to the debtor.

- Until then, the responsibility of the Debtor shall be governed by the following rules;

IF IMPOSSIBLE, UNLAWFUL OR COULD NOT HAVE BEEN THE OBJECT OF THE OBLIGATION
• The remaining prestations (if there are any) will be the only ones available/ practicable
and the obligation remains to be ALTERNATIVE.
• When only one out of all the alternative prestations are possible/legal, the obligation
automatically becomes a SIMPLE one.
• When all alternative prestations are impossible/illegal, the obligation becomes VOID.
LOSS VIA FORTUITOUS EVENT
• The remaining prestations (if there are any) will be the only ones available/
practicable and the obligation remains to be ALTERNATIVE.
• If only one left will be practicable, the obligation becomes a SIMPLE one.
• If all is unpracticable, the obligation is EXTINGUISHED.

LOSS VIA DEBTOR’S FAULT

• If one/more is lost with some remaining, the number of choices the creditor has
remains the same. Still ALTERNATIVE.
• If one remains, the number of choices the creditor has remains the same. Still
ALTERNATIVE.
• If all are lost, the number of choices the creditor has remains the same. Still
ALTERNATIVE.
▪ Creditor may demand the value of the lost item (if he chooses it) with
damages.
▪ No damages if Creditor demands the item that is not lost.

- Same rule shall be applied to obligations to do or not to do in case one, some, or all the
prestations should become impossible.

RULES FOR FACULTATIVE OBLIGATION

ARTICLE 1206 – When only one prestation has been agreed upon, but the obligor may render
another SUBSTITUTION, the obligation is called FACULTATIVE.

- An obligation with only one prestation but the Debtor may render another in
substitution.
▪ Identify if substitution was already made.
▪ Identify the prestation and the substitute.

LOSS OR DETERIORATION (D) OF PRESTATION & SUBSTITUTE via;

FORTUITOUS EVENT – no liability of the Debtor (General Rule)

o Loss/ D of Principal Prestation, before substitution = Extinguished
o Loss/ D of Principal Prestation, after substitution = Practicable
o Loss/D of Substitute, before substitution = Practicable
o Loss/D of Substitute, after substitution = Extinguished
DEBTOR’S FAULT
o Loss/ D of Principal Prestation, before substitution = Debtor is LIABLE
o Loss/ D of Principal Prestation, after substitution = Debtor is NOT LIABLE
o Loss/D of Substitute, before substitution = Debtor is NOT LIABLE
o Loss/D of Substitute, after substitution = Debtor is LIABLE

4. JOINT AND SOLIDARY OBLIGATIONS (1207-1222)

5. DIVISIBLE AND INDIVISIBLE OBLIGATIONS (1223 – 1225)
6. OBLIGATIONS WITH A PENAL CLAUSE (1226-1230)