LAW ON OBLIGATIONS
Article 1156. An obligation is a juridical necessity to give, to
do, or not to do.
• Juridical Necessity: it means that the rights and duties
arising from the obligation are legally demandable and the
courts of justice may be called upon through proper action to
order the performance.
A. Essential Elements of an Obligation
1. Obligee or Creditor or Active Subject
2. Obligor or Debtor or Passive Subject
3. Object or Prestation
a. Must be possible, physical, and juridical
b. Be determinate, or at least be determinable
c. Have a possible equivalent in money
4. Vinculum, Juridical Tie, or Efficient Cause - this binds
the parties
B. Sources of Obligations
1. Law - Only those expressly determined by the law.
Obligations arising from law are not presumed,
2. Contract
a. Obligations arising from contracts have the
force of law and should be complied in good
faith. This is the law between the contracting
parties
b. Can be consensual or real
c. Cause, Object, and Consideration
3. Quasi-Contracts- Certain, lawful, and unilateral acts
gives rise to the juridical relations of quasi-contract
that no one should unjust benefited or enriched
through the expense of another
a. Solutio Indebiti: Something is received
even if there is no right to demand it, and
that it was mistakenly delivered, hence, the
obligation to return it arises.
Requisites:
1. Payment is made when there is no
binding relation between the payor
and the person who received the
payment
2. Payment is made by mistake
b. Negotiorum Gestio: Whoever voluntarily
takes charge of the agency or management
of the business or property, without the
authorization of the owner must continue in
doing so until the termination of the affairs
and its incident or to require the person
concerned to substitute him if the owner is in
the position to do so.
Requisites:
1. Officious manager voluntarily assumes the
management or agency
2. The property is abandoned
3. The officious has no authorization from the
owner
4. The assumption must be done in good
faith
Obligation of the OM
1. Shall perform his duties with the diligence
of a good father of a family
2. Pay the damages in which through his
negligence or fault has caused damaged
to the owner or the property
3. If OM delegates his duties, the OM is
liable for the acts of the delegate
4. The obligation of two or more OM is
SOLIDARY.
Extinguishment of OM
1. The owner repudiates it
2. The OM withdraws from the voluntarily
management
3. Death, Insanity or Insolvency, and Civil
interdiction of the owner or the officious
manager
c. Other Quasi-Contract
1. Third person pays the debt of the debtor
without the knowledge of the latter
2. Any person constrained to pay the taxes of
another must be reimbursed
3. The rights and obligations of the finder of a
personal property lost
C. Difference between Implied and Quasi-Contract
1. Implied – Consent is needed and it is based on
the will of the parties
2. Quasi-Contract- Consent is not present here as
it is voluntarily and unilaterally made by one
party. Based on the law the requires no unjust
benefit or enrichment
D. Delict or Crime: Every person criminally liable is also
CIVILLY LIABLE, hence, every criminal liability that will cause
damage or harm to another through act or omission will give
rise to civil liability.
If acquitted:
a. Not at fault: BOTH criminal and civil liability
is extinguished
b. At fault: Criminal liability is extinguished but
civil liability remains.
E. Quasi-Delict or Torts or Aquilina: Whoever by act or
omission causes damage to another due to negligence or fault
is obliged to pay damages.
Requisites:
1. Damages to the plaintiffs
2. There is negligence or fault by defendant
3. There is no pre-existing contractual obligation
 4. Connection of cause and effect between the 5. Teachers or Heads
negligence and damages 6. State
Persons who are subsidiary liable for the acts
quasi-delict of another F. Doctrine of Last Clear Chance: The person who has the
1. Parents last clear opportunity of avoiding the accident, not withstanding
2. Guardians the negligent act of the other party, is considered to be the
3. Owners, Managers, and Employers sole responsible for the consequences of the accident
4. State
 NATURE AND EFFECTS OF OBLIGATIONS

A. Two Kinds of Things

1. Determinate or Specific or Delimited
➢ Particularly designated or physically E. Grounds for Damages in the breach of
segregated from all other of the same performance of Obligation
class.
1. Delay or Default or Mora
➢ Loss of a specific thing through a
2. Fraud or DOLO
fortuitous event extinguishes the
3. Negligence or Culpa or Fault
obligation.
4. Contravention of the tenor of Obligation
2. Indeterminate or General
➢ Generic things, this does not perish
(money is considered to be generic unless further
specifications or description makes it a determinate thing)
F. Delay or Default or Mora:
➢ NO demand, NO delay
B. Obligations of debtor to give a determinate thing: ➢ There is a demand for an obligation that is
1. Deliver the thing with DILIGENCE OF A demandable and already liquidated done by
GOOD FATHER OF A FAMILY, unless either judicially or extra-judicially and the debtor
otherwise provided by the law or stipulated by failed to comply even with the creditor’s demand
the parties Kinds of Mora:
2. Deliver the thing or place it in the possession of 1. Mora Solvendi: default of the debtor
the creditor either actually or constructively 2. Mora Accipiendi: default of the credito
3. Deliver the fruits to the creditor from the time 3. Compensatio Morae: both the debtor
of the obligation to deliver arises and creditor faulted
4. The debtor is obligated to deliver the Instances where demand is not necessary to
determinate things including its accessions and incur delay:
accessories. 1. When the obligation expressly provides
otherwise
C. Different Kinds of Fruits 2. The law expressly so declares
1. Natural Fruits: naturally produced by the soil or 3. When time is a controlling motive
young or produce of the animals 4. When demand is useless
2. Civil Fruits: results of civilization 5. Performance of reciprocal obligation
3. Industrial Fruits: produced by labor a. As soon as the other party
performed his obligation, the
other party is already considered
D. Remedies of Creditor to be at default except those
1. If the obligation is to deliver an indeterminate reciprocal obligations that have
thing: different period of performance.
a. COMPEL the performance of the
obligation G. Fraud or DOLO
b. Ask a 3rd person to comply in the 1. Dolo Causante or Casual Fraud
expense of the debtor ➢ Fraud is done in the beginning to
c. Ask for damages get the consent of the other party.
This is VOIDABLE and can be
2. If the obligation is to deliver a determinate annulled. Debtor is also liable for
thing: damages
a. ASK the performance of the obligation 2. Dolo Incidente or Incidental Fraud
b. Ask for damages ➢ Fraud is done after the creation of
the obligation. This is VALID and
3. If the obligation is to do: the credito may ask for damages.
a. ASK for the performance of the obligation
b. Let a 3rd person do it (if the obligation can H. Negligence or Culpa
be done by a third person) 1. Culpa Aquiliana (QUASI-DELICT)
c. Ask for damages 2. Culpa Contractual
4. If the debtor poorly done the obligation to do or ➢ Negligence is done under a
if the debtor has done that is forbidden under a contractual obligation
not to do obligation: ➢ Negligence made by an employee is
a. Ask to undo the thing poorly done also the responsibility of the
b. Ask for damages, if physically and legally employer, hence, making the
impossible to undo
 employer principally liable under
culpa contractual
3. Culpa Criminal
I. Contravention of the Tenor of the Obligation:
Remedies:
1. Action for specific performance
2. Rescission of contract
J. Type of Civil Damages (MENTAL)
1. Moral – reason of physical sufferings,
metal shock…
2. Exemplary – as corrective example
3. Nominal – damages awarded for the
rights violated
4. Temperate – Exact amount is uncertain
5. Actual - Duly prove pecuniary loss
6. Liquidated- agreed upon amount
K. Waiver of Future or Past Fraud and Negligence
1. Fraud
a. Future: Waiver of future fraud is VOID
b. Past: Considered valid unless the past
fraud involved public crime
2. Negligence
a. Waiver of past and future negligence is
allowed
L. Fortuitous Event: “ACT OF GOD”
➢ An event that could not be foreseen or if foreseen is
inevitable.
Elements of Fortuitous Events
1. Breach of contract must be independent from the
will of the debtor
2. Event is unavoidable or unforeseeable
3. Event made it impossible for the debtor to
perform the obligation
4. The debtor is free from any participation in or
aggravation of the injury to the credit
As a general rule, no one is liable for the loss due to
fortuitous events, unless:
1. The law has provided otherwise
a. The debtor has promised to deliver the
same thing to two or more DIFFERENT
parties
b. The loss occurs after the debtor incurred
delay
c. When the obligation to give or to deliver
arise from a criminal act
2. Expressed by stipulation that the debtor would
be liable in the loss due to a fortuitous events.
3. When the nature of the obligation REQUIRES
assumption of risk
4. There is negligence or fault that concurs with
the FE
KINDS OF OBLIGATIONS
A. Civil Obligation
➢ Based on a positive law
➢ Becomes a natural obligation when period
has prescribed
PRESCRIPTIONS:
6 years – Quasi- contracts
6 years – ORAL contracts
10 years – WRITTEN contracts
10 years – Court judgement
4 years – Quasi-delict
4 years – Injury to the right of the plaintiff
B. Natural Obligation: based on equity and natural
law.
➢ When a debtor with a natural obligation
voluntarily fulfilled the obligation, the creditor
has the right to retain the payment. However, if
fulfilled or delivered through mistake, the
creditor must return the thing that is delivered
or the value thereof.
Other instances where recovery of payment
is not allowed:
1. 3rd person paid the debt of the debtor without
the knowledge or authorization of the latter
2. When a minor who entered a contract without
consent voluntarily returned the whole thing
or price received or voluntarily paid or deliver
a fungible thing
3. Payment made by the heirs that exceeds the
value of their inheritance
A. Real Obligation: an obligation to give or to deliver
B. Personal Obligation: an obligation to do or not to
do
1. Positive: to do
➢ Creditor have the following
remedies (Remedies D3 and D4
p3)
2. Negative: not to do
➢ Creditor have the following
remedies (Remedy no. D4)
C. Pure Obligation: Does not depend on a future
event or upon past event. An obligation that is
demandable at once.
Other obligation that are demandable at once:
1. Obligation with a resolutory period
2. Obligation with a resolutory condition
➢ When a debtor binds himself to pay when
his means “Permits me to do so”, this is
considered to be an obligation with period
and the court may fix the period there of.
F. Conditional Obligation: Acquisition of rights and
extinguishment or loss of those already acquired
shall depend on the happening of the event which
constitutes the conditions
1. Potestative Condition: Fulfillment depends
on the will of one party
Obligation is considered VALID when the
fulfillment is dependent on the will of the
following:
1. Creditor
2. By chance
3. 3rd Party
When a debtor binds himself to pay when
“When I am willing to do so”, this means that
the performance of the obligation depends on the
will of the debtor, hence, void.
Effect of Potestative Condition
a. PC + Suspensive
Upon the will of:
Debtor: VOID
Creditor: VALID
b. PC + Resolutory
Upon the will of:
Debtor: VALID
Creditor: VALID
2. Impossible Condition
a. If the condition is considered to be
contrary to law, moral, public policy, and
good customs this is IMPOSSIBLE
conditions, hence, annullable.
b. If the obligation is divisible, the portion
which does not constitute an impossible
condition must remain VALID
c. If the condition is NOT TO AN
IMPOSSIBLE THING this is considered
to not having been agreed upon and
would not affect the validity of the
obligation
Impossible Condition attached to the
following:
a. Donation: disregarded
b. Inheritance: disregarded
c. Obligation arising from contract:
VOID, unless divisible the portion which
does not constitute an impossible
condition will remain VALID
d. Condition not to an impossible thing:
considered to a PURE OBLIGATION
2. Resolutory Condition: A condition that after
some event happen, the obligation will be
extinguish as soon as time expires or if it has
become indubitable that the event will not take
place.
3. Suspensive Condition: A condition that the
happening of the condition will give rise to the
obligation
G. Alternative Obligation: Multiple prestations and
the debtor must deliver one making the obligation
fulfilled
➢ The debtor must completely deliver or
perform prestation, creditors can decline
to accept a part of one and part of
another prestation
2. The debtor has the choice on what to deliver:
➢ This is the general rule, the debtor has
the right to choose, unless expressly
granted to the debtor.
➢ The debtor must communicate the
chosen prestation for it to take effect
➢ If the debtor, due to the fault of the
creditor, is unable to choose he may
rescind the contract plus damages
➢ If through the fault of the debtor, he has
lost all of the alternatives, the creditor
have the right to indemnification which is
equivalent to value of THE LAST
THING DISAPPEARED or TO THE
SERVICE LAST BECAME
IMPOSSIBLE
➢ If all of the alternative are lost due to FE,
the obligations is extinguished,
however, if one alternative remains it
becomes a simple obligation
➢ As long as there are remaining
alternatives, the obligations still exists
and the debtor may choose from the
remaining alternative
3. The creditor has the right of choice
➢ The chosen alternative must be
communicated to the debtor to take
effect
➢ If all of the alternatives are lost due to
the fault of the debtor, the creditor may
choose FROM ANY OF THE
ALTERNATIVE (PRICE) PLUS
DAMAGES
➢ If all of the alternatives are lost due to
the fault of the creditor, the obligation is
extinguished
➢ If all of the alternatives are lost due to
FE, the obligation is extinguished
➢ As long as there are remaining
alternatives, the obligations still exists
and the creditor may choose from the
remaining alternative
H. Facultative Obligation: When the obligor rendered
another in substation wherein there is only one
prestation agreed upon. The debtor is liable for the
loss of the substitute once the substitution has been
made when there is delay, negligence, or fraud.
However, if the loss is due to FE the debtor is not
liable.
➢ If the substitute is lost BEFORE the
substitution, the debtor would not be liable,
both due to FE or the fault of the debtor.
I. Joint Obligation
J. Solidary Obligation
K. Divisible Obligation: Obligation which can be
done partially
L. Indivisible Obligation: Obligation that is not
suspectible of division
M. Obligation with Penal Cause: