TITLE I: OBLIGATIONS

CHAPTER I: GENERAL PRIVISIONS

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

 Elements of an Obligation (obligare – to bind) [APOE]

 Active subject (oblige/creditor) – possessor of a right; he in whose favor the obligation is
constituted
 Passive subject (obligor/creditor) – he who has the duty of giving, doing, or not doing
 Object/prestation (subject matter of the obligation)
 Efficient cause (vinculum/juridical tie) – reason why the obligation exists

*FORM (or manner in which the obligation is manifested) is important.

 Concept of prestation
 Prestation – an obligation; subject matter of an obligation (giving a thing, doing or not
doing a certain act)

 Kinds of Obligations
 Sanction: [CNM]
 Civil/Perfect obligation – ART 1156
 Natural obligation – is based on equity, natural justice and conscience; duty not
to cover what has voluntarily been paid although payment was no longer
required
 Moral/Imperfect obligation – sanction is conscience/morality, or the law of the
church

*If Catholic church promises to hear mass for 10 consecutive Sundays in order to receive 1M, this
obligation becomes a civil one.

 Subject matter: [RP]

 Real obligation – obligation to give
 Personal obligation – obligation to do or not to do

 Affirmativeness/Negativeness of the obligation [PN]

 Positive/affirmative obligation – obligation to give/to do
 Negative obligation – obligation not to do/not to give

 Persons obliged [UB]

 Unilateral – one of the parties is bound
 Bilateral – both parties are bound
 Reciprocal
 Non-reciprocal – performance of one is non-dependent upon
performance by the other
  “An obligation is a juridical relation whereby a person (creditor) may demand from another
(debtor) the observance of a determinative conduct, and in case of breach, may demand
satisfaction from the assets of the latter.”

Art. 1157 – Obligations arise from: [LCQAQ]

 Law – duty to pay taxes and to support one’s family

 Contacts – duty to repay a loan by virtue of an agreement
 Quasi-contracts – duty to refund an “over-change” of money because of the quasi-contract of
solution indebiti or undue payment
 Acts/omissions punished by law (obligations ex maleficio or ex delicto) – duty to return a stolen
carabao
 Quasi-delicts/Torts (obligation ex quasi-delicto or ex quasi-maleficio) – duty to repair damage
due to negligence

Art. 1158 – Obligations derived 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.

 Meaning - obligations derived from law are not presumed; must be expressly/impliedly set forth
in the law

 Obligations Ex Lege
 Duty to support
 Duty to pay taxes
 No agreement is necessary before obligation ex lege can arise, but of course the law
steps in only because of human accusations.
 Winner in gambling compelled by the loser to return the winnings (loser’s action
– indebitatus assumpsit)
 Conflict between Civil Code and Special Law:
 Latter prevails unless the contrary has been expressly stipulated in the New Civil
Code

Art. 1159 – Obligations arising from contracts have the force of law between the contracting parties
and should be complied with in good faith.

 Meaning – neither party may unilaterally and upon his own exclusive volition, escape his
obligation under the contract, unless the other party assented thereto, or unless for causes
sufficient in law and pronounced adequate by a competent tribunal.

 Obligations Ex-contractu
 Law is not inferior to contracts
 A contract cannot be valid and enforced if it is against the law
 Art. 1306 – “The contracting parties may establish such stipulations, clauses, terms and
conditions as they may deem convenient, provided they are not contrary to law, morals,
good customs, public order, or public policy.”
  The right to enter into lawful contracts constitutes one of the liberties of the people of
the State. If that right be struck down/arbitrarily interfered with, a substantial
impairment of constitutional rights would result.
 In contracts where public interest in involved, the government has a right to intervene
for the protection of the whole.

 Difference
 Obligation
 result of a contract
 not all obligations come from contracts
 not always a meeting of the minds
 Contract
 always results in obligations (if valid)
 always presupposes a meeting of the minds

 Innominate Contracts (Contratos innominados)

 Do ut des – I give that you may give.
 Do ut facias – I give that you may do.
 Facio ut des – I do that you may give.
 Facio ut facias – I do that you may do.

 Basis of good faith

 Faith implies a lack of any intentions to commit a wrongdoing
 A condition of the mind which can be judged by actual or fancied token or signs.

Art. 1160 – Obligation derived from quasi-contracts shall be subject to the provisions of Chapter I,
Title XVII, of this Book.

 Quasi-contract – juridical relation resulting from a lawful, voluntary, and unilateral act, and
which has for its purpose the payment of indemnity to the end that no one shall be unjustly
enriched/benefited at the expense of another.

 2 principal kinds
 Negotiorum gestio (unauthorized mgt)
 When a person voluntarily takes charge of another’s abandoned
business/property without the owner’s authority. (Art. 2144)
 Reimbursement must be made to the gestor for necessary and useful expenses,
as a rule. (Art. 2150)
 Solution indebiti (undue payment)
 When something is received when there is no right to demand it, and it was
unduly delivered through mistake.
 Quasi-contract is not an implied contract since there is no meeting of the minds.
 No unjust enrichment
Art. 1161 – Civil obligations arising from criminal offenses shall be governed by the penal laws, subject
to the provisions of Art. 2177, and of the pertinent provisions of Chapter 2, Preliminary Title, on
Human Relations, and of Title XVIII of this Book, regulating damages.

 Art. 100 RPC – Every person criminally liable for a felony is also civilly liable.
- Commission of a crime causes not only moral evil but also material damage
 Insane man – his guardian can be held civilly liable unless the latter was diligent in his task of
taking care of the insane
- If no guardian/insolvent – property of the insane man
 Civil liability arising from crime:
 Restitution – payment to another for a loss/injury
 Reparation of the damaged caused – repair
 Indemnification for consequential damages – compensation
 AC and MC effects
 Increased/lessened (Art. 2204)
 Damages (death)
 At least 50K (formerly 3k) must be given to the heirs. (Art. 2206)
 Civil liability is impliedly instituted together with the criminal action. (Sec. 1, Rule 3, RROC)
 Effect of death of the offender pending trial
 Civil liability not extinguished (physical injuries)
 Action directed to admin of estate; obligation of the heirs; do not exceed the
value of inheritance
 Kind of proof
 Civil – mere preponderance of evidence
 Criminal – proof of guilt beyond reasonable doubt
 Effect of acquittal in criminal case
 Accused could not have committed the act
 Exempting circumstance – still be civilly liable
 Independent civil action
 Independent civil action
 Article 33 - In cases of defamation (liber, slander), fraud (estafa, deceit) and
physical injuries (attempted/frustrated/consummated homicide, murder,
parricides/infanticide), a civil action for damages, entirely separate and distinct
from the criminal action, may be brought by the injured 3 rd party. Such civil
action shall be proceeded independently of the criminal prosecution, and shall
require only a preponderance of evidence.
 Recovery of damages despite acquittal
 If acquitted based on reasonable doubt, he can still be held liable for damages, if
this is warranted by the evidence that had been adduced.
 If a person is not criminally liable, it does not necessarily follow that he is not
civilly liable.
 Affidavit of desistance does not justify the dismissal of a criminal complaint.
 Effect of non-delegation of damages
 Crim. Cases – civil liability may be claimed even if there is no specific allegation
of damages in the information or complaint that has been filed.

Art. 1162 – Obligations derived from quasi-delicts shall be governed by the provisions of Chap. 2, Title
XVII of this Book, or by special laws.
  Quasi-delict (tort/culpa aquiliana)
 A fault/negligence (or omission of care) which causes damages to another, there
being no pre-existing contractual relations between parties.
 Culpa aquiliana – acts which are criminal in character, whether the same be
voluntary/negligent
 Negligence – failure to observe, for the protection of the interests of the person,
that degree of care, precaution, and vigilance which the circumstances justly
demand, whereby such other person suffers injury.
 Is the omission of the diligence which is required by the
circumstances of person, time and place. It is a question of fact.
 Contributory negligence – conduct on the part of the injured party, contributing
as a legal cause to the harm he has suffered, which falls below the standard to
which he is required to conform for his own protection.
 Requisites
 Faut/negligence attributable to the person charged;
 Damage/injury
 Direct relation of the cause and effect between the
fault/negligence and the damage/injury
 Proximate cause – adequate and efficient cause, which in the natural
order of events, necessarily produces the damages/injuries complained
of.

CHAPTER II: NATURE AND EFFECT OF OBLIGATIONS

Art. 1163. Every person obliged to give something is also obliged to take care of it with the proper
diligence of a good father of a family, unless the law or the stipulation of the parties requires another
standard of care.

 Duty to exercise diligence

 Diligence needed
 Required by the nature of the obligation and corresponds with the
circumstances of person, time, and place
 If the law/contract provides for a different standard of care, said law/stipulation
must prevail

Art. 1164 – The creditor has a right to the fruits of the thing from the time the obligation to deliver it
arises. However, he shall acquire no real right over it until the same has been delivered to him.

 Non nudis pactis, sed traditions dominia rerym transferantur – as a consequence of certain
contracts, it is not agreement but tradition/delivery that transfers ownership.
 Kinds of delivery
 Actual/tradition – physically, the property changes hand
 Constructive – physical transfer is implied
 Tradition symbolica (symbolical tradition)
  Tradition longa manu (delivery by mere consent/pointing out of object)
 Tradition brevi manu (delivery by short hand)
 Tradition constitutum possessorium (opposite of brevi manu)
 Tradition by execution of legal forms and solemnities
 Delivery of ideal share (owned in common) – symbolical/constructive delivery; not
material/actual delivery
 Obligation to deliver arise when
 If no term/condition – perfection of the contract
 If there’s a t&c – moment the term arrives/condition happens

Art. 1165 – When what is to be delivered is a determinate thing, the creditor, in addition to the right
granted him by Art. 1170, may compel the debtor to make the delivery.

If the thing is indeterminate/generic, he may ask that the obligation be complied with at the
expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to 2 or more persons who do
not have the same interest, he shall be responsible for the fortuitous event until he has effected the
delivery.

 Classification of obligation (subject matter)

 Real obligation
 Specific thing (set apart from the class)
 Generic/indeterminate thing (one of a class)
 Personal obligation
 To do/not to do
 Specific/Determinate things
 capable of particular designation
 Generic/Indeterminate things
 Refers only to a class, genus, cannot be pointed out with particularity
 Remedies of creditor when debtor fails to comply w/ his obligations
 Demand specific performance/compliance
 Demand rescission/cancellation
 Demand damages with/without the first 2
 Effect of fortuitous event (acts of God; extraordinary events not foreseeable/avoidable)
 Specific obligation – extinguished
 Generic obligation – never extinguished
 2 instances where a fortuitous event does not exempt
 Obligor delays (default/mora)
 Delay - non-performance at the stipulated time
 Default – delay which amounts to a virtual nonfulfillment of the
obligation
 Obligor is guilty of bad faith

Art. 1166 – The obligation to give a determinate thing includes that of delivering all its accessions and
accessories, even though they may not have been mentioned.

 Accessories – joined to/included with the principal for the latter’s better use, perfection, or
enjoyment
  Accesions - Additions to/improvements upon a thing
 If there is a stipulation – accessions and accessories do not have to be included

Art. 1167 – If a person is obliged to do something fails to do it, the same shall be executed at his cost.

This same rule shall be observed if he does it in contravention of the tenor of the obligation.
Furthermore, it may be decreed that what has been poorly done be undone.

 Remedies of creditor if debtor fails to do

 Have the obligation performed by him/another at the debtor’s expense
 To obtain damages (Art. 1170)
 Damages alone cannot substitute for performance if owners can do it; if purely
personal/special – only damages may be asked, if substitution is permitted
 When a thing may be ordered undone
 If made poorly
 Obligation is a negative one (undoing is possible)