OBLIGATIONS AND

CONTRACTS
BY: ATTY. CHRISTINE DENISE A. ABUEL
 ASPECTS OF LEARNING IN OBLICON:
CORRELATION BETWEEN OBLICON AND
BUSINESS
IMPORTANCE OF OBLICON IN THE
BUSINESS WORLD
APPLICATION OF LEGAL KNOWLEDGE IN
BUSINESSES.
 CRITERIA FOR
GRADING:
Term exam 30%
Quizzes 20%
Project/Activities 20%
Participation /Recitation 20%
Attendance10%
Total: 100%
What do we need to know about OBLICON?

-found in R.A. No. 386 a.k.a. the "Civil Code of the Philippines"
-Our Civil Code is primarily based on the Civil Code of Spain which took effect
on December 7, 1889. It was approved as R.A> No. 386 on June 18, 1949, and
took effect on August 30, 1950.
-It is divided into 4 books.
-Book IV of the CC deals with OBLICON.

Title 1-Obligations: Articles 1156-1304

Title 2-Contracts: Articles 1305-1422
(Natural obligations: Articles 1423-1430
"Ignorance of the law excuses no one"
Article 3, of the Civil Code

Ignorantia Legis Non Excusat

 Title 1
Obligations

Chapter 1
General Provisions
Article 1156. An obligation is a juridical necessity to give,
to do, or not to do.

-came from the Latin word, "Obligatio" which means

tying or binding.
-this definition of obligation is in its passive aspect. Why?
What is "juridical necessity?"

-because in case of non-compliance, the courts of justice may be called upon

by the aggrieved party to enforce its fulfillment or, in default thereof, the
economic value that it represents.
-Debtor may also be made liable for damages, which represnts the sum of
money given as a compensation for the inujury or harm suffered by the
creditor or obligee
ESSENTIAL ELEMENTS OF AN OBLIGATION:

PASSIVE SUBJECT (debtor/obligor)- Person who is bound to the fulfillment

of the obligation;
ACTIVE SUBJECT (creditor/obligee)- Person who is entitled to demand
fulfillment of the obligation.
OBJECT/PRESTATION (subject matter of the obligation)- conduct requyired
to be observed by the debtor. It may consists of giving, doing, or not doing.
JURIDICAL OR LEGAL TIE (efficient cause)- which binds or connects the
parties to the obligation. (Sources of obligation)
 KINDS OF OBLIGATIONS (according to subject
matter)

REAL OBLIGATION- obligation to give is that in

which the subject matter is a THING that must
deliver to the obligee.

PERSONAL OBLIGATION- (obligation to do or not

to do) is that in which the subject matter is an act
to be done (Positive Personal Obligation) or not to
be done (Negative Personal Obligation).
 SOURCES OF OBLIGATIONS (LCQ-AQ)
ARTICLE 1157. OBLIGATIONS ARISE FROM:

1. LAW
2. CONTRACTS
3. QUASI-CONTRACTS
4. ACTS OR OMISSIONS PUNISHABLE BY LAW (DELICTS)
5. QUASI-DELICTS
Article 1158 Obligations arising from law are NOT PRESUMED. Only those
expressly determined in this Code or in special laws are demandable, and shall be
regulated by the precepts of the law which establishes them; and as to what has
not been foreseen, by the provisions of this Book.

1. An employer is not obliged to furnish free legal assistance to its employees

because no law provides for that. (De la Cruz vs. Northern Theatrical
Enterprises)
2. Workers are obliged to pay income taxes because the NIRC as amended by the
TRAIN Law, say so.
Article 1158. Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith.

What does compliance in good faith mean?

It means compliance in accordance with the stipulations or terms of the contract or
agreement.
Article 1160. Obligations derived from quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII of this Book.

What is Chapter 1, Title XVII of the Book IV of the CC? Extra-contractual obligations.
 What are the kinds of quasi-contracts?

1. Negotiorum Gestio- voluntary management of the property

or affairs of the another without the knowledge or consent
of the latter. (Article 2144)

e.g. B went to Cebu City for vacation without anyone left to look
for his house. Suddenly, an explosion took over his place. So, A
helped in saving B's belongings.
Here, although B did not instruct A to save his belongings, the
former has the obligation to reimburse the latter on the principle
of Quasi-Contract.
2. Solutio indebiti- it is a juridical relation which is created when
something is received when there is no right to demand it and it was
unduly delivered through mistake. (Article 2154)

e.g. A is indebted to B in the amount of P6000. If A mistakenly paid C on

the belief that the latter has been authorized to receive the same for B,
then C has the obligation to return the said amount.
Article 1161. Civil obligations arising from criminal offenses shall be
governed by the penal laws, subject to the provisions of Article 2177,
and the pertinent provisions of Chapter 2, Preliminary Title, on Human
Relations, and of Title XVII of this Book, regulating damages.

What is the scope of civil liability?

1. Restitution
2. Reparation for the damages caused; and
3. Indemnification for the consequential damages. (Article 104, RPC)
Article 1162. Obligations arising from quasi-delicts shall be
governed by the provisions of Chapter 2, Title XVII of this
Book, and by special laws.

Essential requisites for quasi-delcits:

1. There must be an act or omission;
2. There must be fault or negligence'
3. There must be damage caused;
4. There must be a direct relation or connection of cause
and effect between the act or omission and the damage;
and
5. There is no pre-existing contractual relation between
the parties.
 Eg., A is playing pingpong when suddenly the ball hit B who
was just passing by. A is liable for damages since B was
injured, no contractual relationship, and no criminal intent on
A's part.
 NEXT TOPIC: Articles 1163-1178
NATURE AND EFFECT OF OBLIGATIONS