CHAPTER 1 – GENERAL PROVISIONS

Article 1156. An obligation is a juridical necessity to give, to do or not do.

Obligatio – latin word meaning tying or binding

Juridical Necessity – in case noncompliance, the courts of justice may be called upon.

Nature of Obligation (viewpoint of sanction

1. Civil Obligations – based on positive law. Gives the obligee a right under the law to

enforce their performance in courts of justice.

2. Natural Obligations – based on equity and natural law. Do not grant a right of action

to enforce their performance.

3. Moral Obligations

Essential Requisites/Elements of an Obligation

1. Passive Subject – obligor. He who has duty

2. Active Subject – Obligee. He who has right.

3. Object or Prestation – Subject matter. Conduct required to be observed by

the debtor. Types of prestation: To do, to not to do, to give

4. Juridical or legal tie. Efficient Cause/Vinculum Duties. Source of

obligation.

Form of Obligation

- may be oral, in writing or in partly oral/writing

(1) does not require any form of obligations for their validity or binding force.
(2) arising from other do not have any form at all.

Obligation – act or performance which the law will enforce.

Right – power which a person has under the law to demand from another any

prestation.

Wrong – act or omission of one party in violation of the legal rights.

Kinds of Obligation according to the subject matter.

1. Real Obligation – subject matter is a thing

a. Specific Real Obligation – particularly designated/ Physically segregated

Ex. Toyota 123XD

b. Generic Real Obligation – belong to a generic thing/same class.

Ex. Car

2. Personal Obligaiton – subject matter is an act to be done or not to be done.

a. Positive Personal Obligation – to do

b. Negative Personal Obligation – not to do

Article 1557. Obligations arise from:

1. Law – when they are impose by law itself.

Ex. Obligation to pay taxes

2. Contracts – arise from stipulation of the parties.

 Ex. Obligation to pay loan

3. Quasi-Contracts – arise from lawful , voluntary and unilateral acts which are

enforcable to the end that no one shall be unjustly enriched or benefited at the

expense of another.

Ex. Obligation to return the money paid by mistake oor which is not due.

4. Crimes punished by law – arise from civil liability which is the consequence of a

criminal offense.

Ex. Obligation of thief to return the stolen car

5. Quasi-Delicts or torts – arise from damage caused to another through an act or

omission, there being fault or negligence, but no contractual relation exist

between the parties

Ex. Obligaiton of the possesor of an animal to pay for the damage which it may

have caused.

Arcticle 1558. Obligation derived from law are not presumed.

Legal Obligation – imposed by law.

* to be demandable they must be clearly set forth in the law.

Ex. A private school has no legal obligation to provide clothing allowance to its teachers

because there is no law which imposes this obligation.

Article 1559. Obligation arising from contracts have the force of law between the

contracting parties and should be complied with in good faith.

Contractual Obligations - contract is a meeting of minds between 2 or more persons

whereby one binds himself or voluntary agreements.

*If it’s against the law the contract is not valid. (law , morals, good customs, public order

or public policy.

Freedom Contracts – has constitutional and statutory limitation

Requirements of a Valid Contract

- Consent - object - cause of consideration

Compliance in Good Faith

- Should compliance or perform in 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.

Breach of Contract

When a party fails or refuses to comply, without legal reason or justification, with his

oblligaiton under the contracts as promised. Accept a justifiable reason why didn’t

comply.

Article 1160. Obligations derived from quasi-contracts shall be subject to the

provisions of Chapter 1, Title XV11 of his book.

Quasi-Contruactal Obligations

- no consent from parties

- consent is supplied by law of fiction law

- to prevent unjust enrichment (Principle)

*Quasi – Semi-contract, having entered into a contract although they have not actually

done so. (No contract)

Kinds of Quasi-Contracts

1. Negotiorum Gestio – voluntary management of the property or affairs of another

without the knowledge or consent of the latter.

Ex. X went to Baguio without leaving somebody to look after his house. While in Baguio,

a big fire broke out near the house of X. Through the effort of Y, the house of X was

save. Y incurred expenses. X has obligation to reimburse Y for said expenses.

2. Solutio Indebiti – something is received when there is no right to demand it and was

unduly delivered through mistake.

Article 1161. Civil Obligations arising from criminal offenses shall be governed by

the penal laws.

Civil Liabillity arising from crimes or delicts

General Rule: Civil Liability in addition to criminal liability

- every person criminally liable for an act or omission is also civilly liable for damages

suffered by the aggrieved party.

Exception:

Criminal Liability without civil liability – crimes which cause no material damage.

Civil Liability without criminal liability – a person not criminally responsible may still be

civilly liable
Scope of Liability

- the extent of the civil liability for damages arising from crimes is governed by revised

penal code and the civil code.

1. Restitition (Return)

2. Preparation for damages caused (oblige to pay)

3. Indemnification for consequential damages (Compensation)

Article 1162. Obligations derived from quasi-delicts or torts

- an act or omission by a person (tortfeaser) which causes damage 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.

- crimes or felony

Ex. X broke the window glass of Y.