RFBT – OBLIGATIONS
GENERAL PROVISIONS 13. Civil Obligation
Article 1156
3. Obligation
a. It is a juridical necessity to give, to do or
not to do.
b. It is a tie of law or a juridical bond by
virtue of which one is bound in favor of
another to render something — and this
may consist in giving a thing, doing a
certain act, or not doing a certain act.
4. Juridical Necessity
It asserts that the court may be asked to
order the performance of an obligation if the debtor
refuses to perform it.
Requisites of an Obligation
5. Creditor, Obligee or Active Subject
He or she is the party who has the right to
demand performance of the obligation.
6. Debtor, Obligor or Passive Subject
He or she is the party who is obliged to
perform the obligation.
7. Prestation or Object
It is the subject matter of the obligation.
8. Efficient Cause / Vinculum Juris / Legal or
Juridical Tie
It is the legal factor which bind the parties
to an obligation. It also refers to any of the five
sources of obligation.
Kinds of Prestation of an Obligation
10. Prestation to Give (Real Obligation)
Example: Obligation to give a car.
11. To Do (Positive Personal Obligation)
Example: Obligation to repair a car.
12. Not to Do (Negative Personal Obligation)
Example: Obligation not to use one’s car
during Mondays in compliance with city traffic
congestion scheme.
***
It is based on positive law; hence it is
enforceable by court action.
14. Natural Obligation
It is based on natural law; hence it is not
enforceable by court action.
15. Rule If the Debtor Voluntarily Performs a
Natural Obligation
Natural obligations do not grant a right of
action to enforce their performance although in
case of voluntary fulfillment by the debtor, the latter
may not recover what has been delivered or
rendered by reason thereof
16. Obligation, Right, and Wrong (Cause of Action)
Distinguished
a. Obligation is the act or performance
which the law will enforce.
b. Right is the power which a person has
under the law, to demand from another
any prestation.
c. A wrong (cause of action) is an act or
omission of one party in violation of the
legal right(s) of another, causing injury
to the latter.
Example: S rejected or cancelled a contract to sell
his property even before the arrival of the period in
the exercise of the option to buy by the purchaser
who has already made a downpayment.
a. S had the obligation to sell the property
exclusively to B upon full payment of the
purchase price.
b. B had the right to complete the payment
of the purchase price.
c. The (premature) rejection or
cancellation of the contract to sell even
before B could exercise his option to buy
notwithstanding that he had already
made a downpayment was a wrong
(cause of action) on the part of S.
17. Prescription Period as to Cause of Action
Based Upon a Written Contract
Actions based upon a written contract
should be brought within 10 years from the time the
right of action accrues. The period of prescription
 RFBT – OBLIGATIONS
commences not from the date of the execution of
the contract but from the occurrence of the breach.
18. Injury
It is the legal invasion of a legal right; it is the
wrongful act or omission which causes loss or
harm to another.
19. Damage
It is the loss, hurt, or harm which results
from the injury.
20. Damages
These are the recompense or compensation
awarded or recoverable for the damage or loss
suffered.
Article 1157
22. Sources of Obligations
a. Law (obligation ex lege) – when they are
imposed by the law itself (e.g.,
obligation to pay taxes; obligation to
support one’s family).
b. Contracts (obligation ex contractu) –
when they arise from the stipulation of
the parties (e.g., obligation to repay a
loan by virtue of an agreement).
c. Quasi-contracts (obligation ex
quasi-contractu) – when they arise from
lawful, voluntary and unilateral acts and
which are enforceable to the end that no
one shall be unjustly enriched or
benefited at the expense of another
(e.g., obligation to return money paid by
mistake or which is not due).
d. Crimes or acts or omissions punishable
by law (obligation ex delicto) – when
they arise from civil liability which is the
consequence of a criminal offense (e.g.,
the obligation of a thief to return the car
stolen by him; the duty of a killer to
indemnify the heirs of his victim).
e. Quasi-delicts or torts (obligation ex
quasi-delicto) – 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 (e.g.,
obligation of the head of a family that
lives in a building or a part thereof to
answer for damages caused by things
thrown or falling from the same;
obligation of the possessor of an animal
to pay for the damage which it may have
caused).
23. Classification of Sources of Obligations
Detailed:
a. Those emanating from law; and
b. Those emanating from private acts:
● Licit acts – contracts and
quasi-contracts
● Illicit acts – delicts and quasi-delicts
Simple:
a. Those emanating from law – because
obligations arising from quasi-contracts,
crimes and quasi-delicts are really
imposed by law.
b. Those arising from contracts
Article 1158
25. Law
It is a rule of conduct, just and obligatory,
laid down by legitimate authority for common
observance and benefit.
26. Obligations Derived from Law Are Not
Presumed
These obligations, to be demandable, must
be clearly set forth in the law (i.e. the Civil Code or
special laws [other laws not contained in the Civil
Code]). Examples:
a. Because it is not imposed by law, a
private school has no legal obligation to provide
clothing allowance to its teachers.
b. Because it is mandated by law, a person
who wins money in gambling has the duty to return
his winnings to the loser.
Article 1159
28. Contract
It is a meeting of minds between two
persons whereby one bonds himself, with respect
to the other, to give something or to render some
service (e.g., sale, loan, lease, employment, etc.)
29. Binding Force of Contracts
 RFBT – OBLIGATIONS
Valid contracts have the force of law (as if
the stipulations of the contract have the same
effect as law) between the parties who are bound
to comply therewith in good faith (the exercise of
integrity in the compliance of one’s obligation), and
neither one may without the consent of the other,
renege (go back on a promise, undertaking, or
contract) therefrom.
Article 1160
31. Quasi-Contract
It 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.
32. Quasi-Contract and Contract Distinguished
a. Quasi-contract – there is no consent but
the same is supplied by fiction of law.
b. Contract – there is a meeting of the
minds or consent; the parties must have
deliberately entered into a formal
agreement.
Kinds of Quasi-Contracts
34. Negotiorum Gestio
It refers to the voluntary administration of
the property, business or affairs of another without
his consent or authority.
Example: If through the efforts of X, a
neighbor, the house of Y was saved from being
burned, Y has the obligation to reimburse X for the
expenses X incurred although Y did not actually
give his consent to the act of X in saving his house
on the principle of quasi-contract.
35. Solutio Indebiti
It 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.
Example: The obligation to pay money
mistakenly paid arises from the moment said
payment was made, and not from the time the
payee admits the obligation to reimburse.
Other Examples of Quasi-Contracts
36. Support Given by a Stranger
When, without the knowledge of the person
obliged to give support, it is given by a stranger, the
latter shall have a right to claim the same from the
former.
Exceptions: If it appears that he gave it:
a. Out of piety, and
b. Without intention of being repaid.
37. Funeral Expenses Borne by a Third Person
When funeral expenses are borne by a third
person, without the knowledge of those relatives
who were obliged to give support to the deceased,
said relatives shall reimburse the third person, -
should the latter claim reimbursement.
38. Support Furnished by a Third Person to Needy
Individual After Refusal of Person Obliged to Give
Support
When the person obliged to support an
orphan, or an insane or other indigent person
unjustly refuses to give support to the latter, any
third person may furnish support to the needy
individual, - with right of reimbursement from the
person obliged to give support. The provisions of
this article apply when the father or mother of a
child under eighteen years of age - unjustly refuses
to support him.
39. Injury or Illness Treated or Helped with without
Consent
When through an accident or other cause a
person is injured or becomes seriously ill, and he is
treated or helped while he is not in a condition to
give consent to a contract, he shall be liable - to pay
for the services of the physician or other person
aiding him.
Exception: If the service has been rendered
out of pure generosity.
40. Property Saved by Another Person
When during a fire, flood, storm, or other
calamity, property is saved from destruction by
another person without the knowledge of the
owner, - the latter is bound to pay the former just
compensation.
41. Government Intervention in Taking Actions to
Implement Health or Safety Regulations
When the government, upon the failure of
any person to comply with health or safety
 RFBT – OBLIGATIONS
regulations concerning property, undertakes to do
the necessary work, even over his objection, - he
shall be liable to pay the expenses.
42. Measures for Protection of Community
When in a small community a nationality of
the inhabitants of age decide upon a measure for
protection against lawlessness, fire, flood, storm or
other calamity, anyone who objects to the plan and
refuses to contribute to the expenses but is
benefited by the project as executed - shall be liable
to pay his share of said expenses.
43. Payment of One’s Taxes by Another
Any person who is constrained to pay the
taxes of another shall be entitled to reimbursement
from the latter.
***
45. Gestor
He or she is the officious manager of
another's affairs in negotiorum gestio.
46. Nature of Responsibility of Multiple Gestors
The nature of responsibility of two or more
officious managers in negotiorum gestio shall
generally be solidary unless the management was
assumed to save the thing or business from
imminent danger which will make their liability joint
only.
47. Liability of Gestor for Fortuitous Events
The following instances where the officious
manager shall be held liable for any fortuitous
event:
a. If he undertakes risky operations which
the owner was not accustomed to
embark upon;
b. If he preferred his own interest to that of
the owner;
c. If he fails to return the property or
business after demand by the owner;
and
d. If he assumed the management in bad
faith.
48. Instances Where Negotiorum Gestio Will Not
Arise
a. When the property or business is not
neglected or abandoned; and
b. If in fact the manager has been tacitly
authorized by the owner.
49. Nature of Responsibility of Multiple Payees
Under Solutio Indebiti
The nature of responsibility or liability of
two or more payees when there has been payment
of what is not due shall be solidary.
50. Liability of Payee for Interest Under Solutio
Indebiti
A person who accepts an undue payment of
a sum of money will be liable for interest when he
or she receives the undue payment in bad faith.
51. Liability of Payee in Good Faith Under Solutio
Indebity
A person in good faith accepting an undue
payment of a thing certain or determinate will be
responsible for the loss of the same or its
accessories and accessions in so far as he has
been benefited.
Article 1161
53. Delict, Crime or Felony
It is a source of obligation that refers to any
act or omission punishable by law.
54. Civil Liability Arising from Delicts
Article 100 of the Revised Penal Code
provides that: “Every person criminally liable for a
felony is also civilly liable.”
Scope of Civil Liability of an Offender Upon
Commission of a Crime
56. Restitution
It is the restoration of something lost or
stolen to its proper owner (e.g., return of the stolen
car).
57. Reparation
It is the replenishment of a previously
inflicted loss by the offender to the victim taking
into consideration the price of the thing, whenever
possible, and its sentimental value to the injured
party (e.g., payment of damages for the act of
stealing the car).
58. Indemnification
It is the compensation for consequential
damages which shall include not only those caused
to the injured party, but also those suffered by his
family or by a third person by reason of crime (e.g.,
 RFBT – OBLIGATIONS
payment of damages for the lost income during the
time the car was stolen).
***
59. Persons Who Will Not Be Imprisoned but Will
Be Liable for Civil Damages for Their Act
a. An imbecile or insane person;
b. A person under 18 of age;
c. Any person who acts under the
compulsion of an irresistible force; and
d. Any person who acts under the impulse
of an uncontrollable fear of an equal or
greater injury.
60. Immunity from Civil or Criminal Liability
Any person who acts under self-defense, in
the performance of his official duty, or suffering
from battered woman syndrome who killed or
injured his batterer will not be liable either
criminally or civilly for his or her acts.
61. Proof Beyond Reasonable Doubt
It is the degree of evidence that must be
proved by the prosecution for the accused to be
criminally liable.
62. Preponderance of Evidence
It is the degree of evidence that must be
proved by the plaintiff in order to recover civil
damages based on contract or quasi-delict.
Article 1162
64. Quasi-Delicts, Torts, or Culpa Aquiliana
These are acts or omissions that cause
damage to another, there being fault or negligence
but without any pre-existing contractual relation
between the parties.
65. Quasi-Delict and Crime Distinguished
a. Quasi-delict – The right violated is a
private right.
Crime – The right violated is a public
right.
b. Quasi-delict – Every instance gives rise
to liability for damages to the injured
party.
Crime – Not all instances give rise to
civil liability.
c. Quasi-delict – Liability can be
compromised.
Crime – Liability cannot be
compromised.
d. Quasi-delict – requires preponderance
of evidence for the same to be proved.
Crime – requires proof beyond
reasonable doubt for the same to be
proved.
66. Responsibility of Parents for Possible
Quasi-Delicts
The father and, in case of his death or
incapacity, the mother, are responsible for the
damages caused by minor children who live in their
company.
67. Responsibility of Guardians for Possible
Quasi-Delicts
Guardians are liable for damages caused by
the minors or incapacitated persons who are under
their authority and live in their company.
68. Responsibility of Owners of Establishments or
Enterprise for Possible Quasi-Delicts
The owner of an establishment or enterprise
are likewise responsible for damages caused by
their employees in the service of the branches in
which the latter are employed or on the occasion of
their functions.
69. Responsibility of Employers for Possible
Quasi-Delicts
Employers shall be liable for the damages
caused by their employees and household helpers
acting within the scope of their assigned tasks,
even though the former are not engaged in any
business or industry.
70. Responsibility of Teachers for Possible
Quasi-Delicts
Teachers or heads of establishments of arts
and trades shall be liable for damages caused by
their pupils and students or apprentices who are
within their custody.
71. Nature of Liability of Multiple Offenders Under
Quasi-Delict
The nature of liability of two or more
persons who are liable for quasi-delict or tort is
solidary.
 RFBT – OBLIGATIONS
Determinate or Specific Thing
It is one that is individualized and can be
identified or distinguished from others of its kind
(e.g., car with plate number AX1234).
Generic or Indeterminate Thing
It is only indicated by its kind, without being
designated and distinguished from others of the
same king (e.g., Mitsubishi Car).
Delimited Generic Thing
Duties of Debtor in Obligation to Deliver a
Determinate Thing
a. To preserve or take care of the thing
due;
b. To deliver the fruits of the thing;
c. To deliver its accessions and
accessories;
d. To deliver the thing itself; and
e. To answer for damages in case of
non-fulfillment or breach.
Duties of Debtor in Obligation to Deliver a Generic
Thing
a. To deliver a thing which is of the quality
intended by the parties taking into
consideration the purpose of the
obligation and other circumstances; and
b. To be liable for damages in case of
fraud, negligence, or delay, in the
performance of his obligation, or
contravention of the tenor thereof.
Types of Diligence
Extraordinary Diligence
It means that extreme care and caution
which very prudent and thoughtful persons use in
securing and preserving their own property.
Ordinary Diligence or Diligence of a Good Father of
a Family
It is that degree of care which is exercised
by ordinarily prudent persons under the same or
similar circumstances.
Slight Diligence
It is that degree of care which every man of
common sense, however inattentive he may be,
exercises under the same or similar circumstances.
***
Diligence Required in the Preservation of the
Determinate Thing
In order of priority:
a. Diligence required by law (e.g., Common
carriers are bound to observe
extraordinary diligence in the vigilance
over the goods and for the safety of the
passengers transported by them.)
b. Diligence agreed upon by the parties
(stipulation)
c. Diligence of a good father of a family
Fruits
It refers to the income or goods derived or
produced from property without a diminution of the
property's inherent value.
Kinds of Fruits
Natural Fruits
These are the spontaneous products of the
sold, and the young and other products of animals
(e.g., trees and plants on lands produced without
the intervention of human labor).
Industrial Fruits
These are those produced by lands of any
kind through cultivation or labor (e.g., sugar cane,
vegetables, rice, etc.).
Civil Fruits
These are those derived by virtue of a
juridical relation (e.g., rents of buildings, price of
leases of land, etc.).
***
Personal Right
It is the power belonging to one person to
demand of another, as a definite passive subject,
the fulfillment of a prestation to give, to do or not to
do.
Real Right
It is the power belonging to a person over a
specific thing, without a passive subject individually
determined, against whom such right may be
 RFBT – OBLIGATIONS
personally exercised. It can be exercised against
any person.
Point When the Creditor Obtains Personal Rights
Over the Fruits of the Determinate Thing
From the time the obligation to deliver the
determinate thing arises.
Point When the Creditor Obtains Real Rights Over
the Fruits of the Determinate Thing
General rule: From the time the fruits are
delivered physically or constructively.
Exception: In a contract of sale, from the
time of the perfection of the contract of sale of
determinate thing.
Remedies Available to Creditor When a Debtor
Fails to Comply with His Obligation (General Rule)
a. Action for specific performance,
b. Action to rescind the obligation; or
c. Action for damages exclusively or in
addition to either of the first two actions.
Remedy of the Creditor in Case the Debtor Fails to
Comply with His Obligation to Deliver a
Determinate Thing
Action for specific performance in addition
to damages under Article 1170.
Remedy of the Creditor in Case the Debtor Fails to
Comply with his Obligation to Deliver an
Indeterminate Thing
Either:
a. Filing of an action for specific
performance with damages only; or
b. Ask the obligation to be complied with
at the expense of the debtor with
damages only.
Accessions
These include everything which is produced
by a thing, or which is incorporated or attached
thereto, either naturally or artificially (e.g., house or
tees on a land, rents of a building, etc.).
Accessories
These refer to those which destined for the
embellishment, use or their preservation of another
thing of more importance, have for their object the
completion of the latter for which they are
indispensable or convenient (e.g., key of a house,
frame of a picture, bracelet of a watch, etc.).
Obligation to Deliver Accessions and Accessories
The obligation to give a determinate thing
includes that of delivering all of its accessions and
accessories even if they may not have been
mentioned.
Remedy of the Creditor in Case the Debtor Fails to
Perform His Obligation to Do a Certain Act
The creditor or third person may do the
obligation in a proper manner at the expense of the
debtor with the right to recover damages. In this
case, specific performance is not available because
such remedy would be tantamount to involuntary
servitude which is prohibited by the Constitution.
Involuntary Servitude
It is, at its core, forced labor for the benefit
of another. Such labor may be compelled by
physical force or coerced.
Remedy of the Offended Party in Case a Public
Official Who Has Ministerial Duty to Perform a
Particular Obligation or Public Duty Under the Law
Fails to Do Such Obligation
The creditor may file a specific civil action
for mandamus (which has a similar effect to an
action for specific performance).
Remedy of the Creditor in Case the Obligation Is
Done in Contravention of the Terms of the Same or
Is Poorly Done
It may be ordered by the court that it be
undone if it is still possible to undo what was done.
Remedy of the Creditor in Case the Debtor Fails to
Comply with His Obligation Not to Do a Certain Act
It shall be undone at the expense of the
debtor with indemnification for damages. If the
same cannot be undone, the creditor may still
recover damages.
Grounds for Liability to Pay Damages
a. Fraud
b. Negligence
c. Delay
d. Contravention of the tenor of the
obligation
 RFBT – OBLIGATIONS

Damages
These refer to the harm done and the sum
of money that may be recovered in reparation for
the harm done.

Injury
It refers to the wrongful, unlawful or
tortuous act which causes the loss or harm to
another.

Kinds of Damages

Ordinary Delay
It is merely the failure to perform an
obligation on time.

Legal Delay, Default, or Mora

It is the failure to perform an obligation on
time which constitutes a breach of the obligation.

Point at Which the Debtor Incurs Delay in an

Obligation

a. Obligation to give and to do – from the

time the creditor demands judicially
(with court intervention) or
extrajudicially the fulfillment of
obligation.
b. Obligation not to do – delay is not
applicable.

Instances When Demand by the Creditor Is Not

Necessary in Order for Debtor’s Delay to Exist

a.
Fortuitous Event

Types of Fortuitous Events

Acts of Man

Acts of God

Liability of the Debtor in Case of Loss of the

Determinate Thing Due to Fortuitous Event

Instances When the Debtor Becomes Liable for the

Loss of Determinate Thing Due to Fortuitous Event