Laurence I.

Villanueva
ACC2A

Definition
1. Obligations a juridical necessity to give, to do, or not to do.
2. Quasi-contracts when they arise from lawful, voluntary, and unilateral acts and which are enforceable
to the end no one will be unjustly enriched or benefited at the expense of another.
3. Compliance in good faith means compliance according to the stipulation or terms of the contract of
agreement. Sincerity and honesty must be observed to prevent one party from taking unfair advantage of
the other.
4. Wrong means a tort, breach of contract, or breach of trust, whether the act is committed by the person
to whom the wrong is attributed or by one for whose acts he is responsible, and whether or not the act is
also a crime, and whether or not the wrong is intentional
5. Solution Indebiti when something is received when there is no right to demand it and it was unduly
delivered through mistake.

6. Legal delay or default failure to perform an obligation on time which failure constitutes a breach of the
obligations

7. Fortuitous event is an event which cannot be foreseen, or which, although foreseeable, cannot be
avoided
8. Period is a certain length of time that determines the effectivity or the extinguishment of obligations.
9. Penal clause is an accessory undertaking attached to an obligation to assume greater liability on the part
of the obligor in case of breach of the obligation
10. Obligation with a penal clause the penalty shall substitute the indemnity for damages and the payment
of interest in case of non-compliance, if there is no stipulation to the contrary
Discussions:
1. What are the essential requisites of an obligation? Give an example to illustrate them
 A passive subject (called debtor or obligor). --- the person who has bound to the
fulfilment of the obligation; he who has a duty;
 An active subject (called creditor or obligee). --- the person who is entitled to demand the
fulfillment of the obligation; he who has a right;
 Object or prestation (subject matter of the obligation). --- the conduct required to be
observed by the debtor. It may consist in giving, doing, or not doing. Without the
prestation, there is nothing to perform. In bilateral obligations (see Art. 1191), the parties
are reciprocally debtors and creditors;
 A juridical or legal tie (also called efficient cause). --- that which binds or connects the
parties to the obligation. The tie in an obligation can easily be determined by knowing the
source of the obligation. (Art. 1157)
EXAMPLE: Under a building contract, X bound himself to build a house for Y for
P1,000,000.00. Here, X is the passive subject, Y is the active subject, the building of the house is
 the object or prestation, and the agreement or contract, which is the source of the obligation, is
the juridical tie. Suppose X had already constructed the house and it was the agreement that Y
would pay X after the construction is finished, X then becomes the active subject and Y, the
passive subject.
2. Why are obligations under the Civil Code a juridical necessity? Explain.
Obligations under the Civil Code are considered a juridical necessity because
they create a binding duty that can be enforced by the courts of justice. In case of non-
compliance, the aggrieved party may call upon the courts to enforce its fulfillment. If the
obligation is not fulfilled, the courts may also enforce the economic value it represents.
This means that obligations under the Civil Code are not just moral or ethical duties, but
legal duties that have consequences if not fulfilled. Therefore, they are considered a
“juridical necessity”.

3. May a person incur obligations even without entering into a contract or voluntary agreement?
Explain.
 Yes, a person can incur obligations even without entering into a contract or voluntary
agreement. Obligations can arise from various sources, not just contracts. They can be
imposed by law, arise from quasi-contracts, from crimes or acts or omissions punished by
law, and from quasi-delicts or torts
4. May an action arising from fraud be waived?
 No, an action arising from fraud cannot be waived. Responsibility arising from a
fraudulent act is demandable in all obligations and cannot be excluded or limited because
the same is contrary to public policy despite the presence of contractual limitations.
Under the Civil Code of the Philippines, any waiver of an action for future fraud is void
5. May an action arising from negligence be waived? Explained
Yes, an action arising from negligence can be waived, but it's not as straightforward as it
seems. Under the law on obligations, responsibility arising from negligence is demandable in all
obligations. However, such liability may be regulated by the courts, according to the
circumstances. This means that while a person can waive their right to sue for negligence, the
validity of such a waiver is subject to certain conditions.

The three essential elements of a valid waiver are:

1. Existence of a right
2. The knowledge of the existence thereof
3. An intention to relinquish such right
A valid waiver requires that it not only must be voluntary, but must be knowing,
intelligent, and done with sufficient awareness of the relevant circumstances and likely
consequences. However, it's important to note that even if a waiver meets these criteria, it does
not eliminate the right to legal recourse. There may still be options available.

6. Illustrate an obligation subject to:

a. Suspensive Condition: A suspensive condition is a future and uncertain event upon the happening of
which the obligation (or a right) becomes effective.
b. Resolutory condition: A resolutory condition is a future and uncertain event upon the happening of
which an existing obligation is extinguished.
What is the effect of the fulfillment of the condition in a conditional obligation?
The effect of the fulfillment of the condition in a conditional obligation depends on whether it is a
suspensive or resolutory condition.

 In a suspensive condition, there is an agreement between the parties that the obligation to
perform is postponed until a determined or determinable date due to a pending event. The
obligation will only arise when the condition is fulfilled.
 In a resolutory condition, there is an agreement by both parties that the obligations will be
terminated upon a determined future time1. This exact time is certain to happen yet the
exact date is still unknown
6. Has the debtor the right to recover what he has paid to the creditor before the arrival of the period
agreed upon? Explain.
Yes, a debtor has the right to recover what he has paid to the creditor before the arrival of
the period agreed upon, but with certain conditions. According to Article 1195, if the debtor is
unaware of the period or believes that the obligation has become due and demandable, he may
recover what he has paid, along with any fruits and interests¹².
However, if the debtor voluntarily paid his debt with knowledge of the period, it's as if he
tacitly waived the term of payment. As a result, the obligation is already matured and the payment
cannot be recovered.
For instance, if the debtor paid an excess amount by mistake before the arrival of the
period, he has a right to recover that excess amount. This is because the creditor cannot unjustly
enrich himself by retaining the money before the arrival of the period. However, upon paying an
excess amount beyond the period, the debtor will no longer be able to recover it as he has no right
after the arrival of the period.
8. The divisibility of an obligation is different from the divisibility of the thing which is the object
Thereof.
The divisibility of an obligation refers to the performance of the obligation, which means whether
the obligation can be fulfilled in part. For example, if you owe someone $1000, this obligation is divisible
because you can pay it back in installments, like $500 now and $500 later.
On the other hand, the divisibility of the thing which is the object of the obligation refers to
whether the thing itself can be divided. For instance, if you owe someone a car, this obligation is
indivisible because you cannot deliver half a car now and half a car later. The car must be delivered as a
whole to fulfill its purpose.
9. What obligations are deemed indivisible?
Obligations are deemed indivisible when:

 Obligations to give definite things

 Obligations that are not susceptible to partial performance
 Obligations provided by law to be indivisible even if the thing or service is physically4
 The object of the performance, because of its nature or because of the intent of the parties, is not
susceptible to division
10. What obligations are deemed divisible?
 Obligations are deemed divisible when:

 The object of which, in its delivery or performance, is capable of partial fulfillment

 An obligation to do something within a period of days6
 The obligation to accomplish something measurable by metrical units
 The obligation to a certain amount in installments6
 The obligation to do something which can be done partially
Problem
Explain or state briefly the rule or reason for your answer.
1. While the car of X was parked by the roadside, it was bumped at the rear by a jeep belonging to Y
Only the car of x suffered damage. Under the circumstances, does it follow that y is liable to x for
the damages?
Yes, Y is likely liable for the damages caused to X’s car. The damage to X’s car was a
direct result of Y’s jeep bumping into it1. This is what we call civil liability for his acts
and omissions causing damage to another through his fault or negligence1. It was clearly
stated in both Art 1161 and 1162 which covers both for crime and quasi-delicts2. Whether
the jeep driver did that intentionally or unintentionally, Y who is the owner of the said
jeep is still liable for the damages that were caused by the accident2.
2. In the same problem? has x the right to ask indemnity from r, employer of x, on the ground that
when the accident occurred x was then on his way to transact business with a client of r?
In this case, X does not have the right to claim indemnification against R. When an
employee is injured while traveling to perform services for his/her employer, he/she
cannot file a lawsuit against his/her employer. The reason behind this rule is that the
employee had agreed to work without compensation during travel time. Therefore, X
should seek compensation through other means (e.g., workers’ compensation)
3. S promised to deliver to B a female horse named Suzie in July10. Suzie gave birth to a colt on
July 5.
a. What are the obligations of S?
 Deliver the horse named Suzie to B1
 Take care of Suzie with the proper diligence of a good father of a family
 Answer for damages in case of non-fulfillment or breach of the obligation1
b. Who has a right to the colt?
 If B already paid for everything before the horse gave birth, then B has the right to
the colt. However, if no payment has been made and the birth happened before the
obligation to deliver arises, S has the right to the colt.
c. Who is the lawful owner of Suzie in case it was sold and delivered by S to T on July 8?
 T is the lawful owner of Suzie if it was sold and delivered by S to T on July 82. T has
a real right to Suzie.
4. In an obligation to give a parcel of land subject to a suspensive condition, who is entitled to the
fruits that accrued during the pendency of the condition once said condition is fulfilled?
Upon the fulfillment of the obligation, the seller has the right to keep to himself all the
fruits and interests he may have received during the pendency of the condition, unless a contrary
intention by the seller that he shall render an accounting of fruits received during its pendency.
5. D (debtor) binds himself to pay C (creditor) a sum of money. Give the three (3) cases when the
obligation and D are demandable at once by C.
 The obligation of a debtor is demandable at once by the creditor in the following three cases:
 Pure Obligation: 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
once1.
 Resolutory Condition: Every obligation which contains a resolutory condition shall
also be demandable, without prejudice to the effects of the happening of the event1.
 Resolutory Period: Obligations with a resolutory period take effect at once, but
terminate upon arrival of the day certain
6. D (debtor) borrowed 10,000 from C (creditor) at 15% interest per annum payable on December
31. Can D require C to accept payment before December 31?
Yes, a debtor can require a creditor to accept payment before the due date ⁴. However, the
creditor is not obligated to accept early payment⁴. If the debtor pays before the due date and the
creditor accepts the payment, then the obligation is considered fulfilled. However, if the creditor
refuses to accept early payment, the debtor cannot insist on making the payment before the due
date.
7. X promises to deliver to Y a specific horse. Their contract contains a penal clause that in case of
non-fulfillment, X shall pay a penalty of 10,000.00. X wants to just pay the penalty instead of
delivering the horse. Has Y the right to refuse to accept the penalty in lieu of the horse?
According to Article 1227, the debtor cannot exempt himself from the performance of the
obligation by just paying the penalty1. This means that X cannot simply choose to pay the penalty
and ignore the principal obligation, which is to deliver the horse. The penalty is considered an
accessory obligation, and it cannot replace the principal obligation unless this right has been
expressly reserved for him. Therefore, Y has the right to refuse to accept the penalty in lieu of the
horse. Y can demand that X fulfill his original obligation, which is to deliver the horse
8. In the same problem, X was able to show that Y did not suffer any damage by X's violation of his
obligation. Can Y still enforce the penalty?
Yes, Y can still enforce the penalty. According to the provisions under Article 1228, proof
of actual damages suffered by the creditor is not necessary in order for the penalty to be
demanded1. All the creditors must prove that the debtor violated his obligations. Therefore, Y has
the right to enforce the penalty since X violated his obligation even though he did not suffer any
damages.
9. In the same problem, suppose X was guilty of negligence in the fulfillment of his obligation. Is X
liable for damages in addition to the penalty?
Yes, X is liable for damages in addition to the penalty if X is guilty of negligence in the
fulfillment of his obligation1. According to the provisions under Article 1172, responsibility
arising from negligence is demandable in all obligations1. This means that aside from the penalty
caused by non-compliance of the obligation, there will be liability due to the debtor’s negligence
10. A and B bind themselves to pay C their loan of 10,000.00 on a certain date. Is the obligation
divisible or indivisible?
The obligation of A and B to pay C their loan of 10,000.00 on a certain date is considered
indivisible. This is because the obligation involves a single performance (the payment of
10,000.00), which cannot be partially performed. The obligation is due in full on a certain date,
and it cannot be divided into smaller parts or installments. Therefore, both A and B are jointly
responsible for the full amount of the loan.