OBLIGATIONS

AND
CONTRACTS
OBLIGATIONS

I. GENERAL PRINCIPLES
A. Meaning of Obligation
B. Classification of Obligations
1. Civil Obligations (Article 1156 NCC)
2. Natural Obligations (Article 1423)
3. Moral Obligations
Aricle1423

Obligations are Civil or Natural. Civil obligations give a

right of action to compel their performance. Natural
obligations, not being based on positive law but on equity
and natural law, do not grant a right of action to enforce
their performance, but after voluntary fulfillment by the
obligor, they authorize the retention of what has been
delivered or rendered by reason thereof. Some natural
obligations are set forth in the following articles.
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CIVIL OBLIGATION
Article 1156 of the New Civil Code:

An obligation is a juridical necessity

to give, to do or not to do.
I. GENERAL PRINCIPLES
C . Elements of Obligations

1. Active Subject – creditor/obligee

2. Passive Subject – debtor/obligor
3. Prestation – subject matter of the obligation
4. Vinculum Juris/Legal Tie/Efficient cause –
juridical tie or source of obligation

Payment of debt
Obligor?
Obligee?
Prestation?
Vinculum Juris?
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II. SOURCES OF OBLIGATION

Article 1157. Obligations arise from:

1. Law;
2. Contracts;
3. Quasi-Contracts;
4. Acts or omissions punished by law; and
5. Quasi-delicts.
II. SOURCES OF OBLIGATION
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1. LAW
Article 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 forseen, by the
provisions of this book.
II. SOURCES OF OBLIGATION
8

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

Article 1305
A contract is a meeting of minds between two
persons whereby one binds himself, with respect
to the other, to give something or render some
service.
II. SOURCES OF OBLIGATION
9

3. QUASI-CONTRACTS
Article 1160
Obligations derived from quasi-contracts shall be
subject to the provisions of Chapter 1, Title XVII,
of this Book.

Article 2142
Certain lawful, voluntary and unilateral acts give
rise to the juridical relation of quasi-contract to
the end that no one shall be unjustly enriched or
benefited at the expense of another.
II. SOURCES OF OBLIGATION
10

3. QUASI-CONTRACTS
Article 2165

When funeral expenses are borne by a third

person, without the knowledge of those
relatives who were obliged to give support
to the deceased, said relatives shall
reimburse the third person, should the latter
claim reimbursement.
 II. SOURCES OF OBLIGATION
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3. QUASI-CONTRACTS
Negotiorum Gestio
Article 2144. Whoever voluntarily takes charge of the agency
or management of the business or property of another, without
any power from the latter, is obliged to continue the same
until the termination of the affair and its incidents, or to
require the person concerned to substitute him, if the owner is
in a position to do so. This juridical relation does not arise in
either these instances:
 II. SOURCES OF OBLIGATION
12

3. QUASI-CONTRACTS
Negotiorum Gestio
1. When the property or business is not neglected or
abandoned;
2. If the fact the manager has been tacitly authorized by the
owner.
In the first case, the provisions of Articles 1317, 1403 No.1 and
1404 regarding unauthorized contracts shall govern.
In the second case, the rules of agency in Title X of this Book
shall be applicable
II. SOURCES OF OBLIGATION
13

3. QUASI-CONTRACTS
Solutio Indebiti
Article 2154

If something is received when there is no

right to demand it, and it was unduly
delivered through mistake, the obligation to
return it arises.
II. SOURCES OF OBLIGATION
14

4. DELICTS
Article 1161

Civil obligations arising from criminal

offenses shall be governed by the penal laws,
subject to the provisions of article 2177, and
of the pertinent provisions of Chapter 2,
Preliminary Title, on Human Relations, and
of Title XVIII of this Book, regulating
damages.
II. SOURCES OF OBLIGATION
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4. DELICTS
REVISED PENAL CODE

Article 100. Civil liability of a person guilty

of felony – Every person criminally liable for
a felony is also civilly liable
II. SOURCES OF OBLIGATION
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4. DELICTS
REVISED PENAL CODE

Article 104. What is included in civil liability –

The civil liability established in Articles 100, 101,
102, and 103 of this code includes:

1. Restitution
2. Reparation of the damage caused;
3. Indemnification for consequential damages
II. SOURCES OF OBLIGATION
17

5. QUASI-DELICTS

Article 1162
Obligations derived from quasi-delicts shall be
governed by the provisions of Chapter 2, Title
XVII of this Book, and by special laws
II. SOURCES OF OBLIGATION
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2. QUASI-DELICTS

Article 2176

Whoever by act or omission causes damage to

another, there being fault or negligence, is obliged
to pay for the damage done. Such fault or
negligence, if there is no pre-existing contractual
relation between the parties, is called a quasi-delict
and is governed by the provisions of this Chapter
II. SOURCES OF OBLIGATION
19

2. QUASI-DELICTS

Article 2177

Responsibility for fault or negligence under the

preceding article is entirely separate and distinct
from the civil liability arising from negligence
under the Penal Code. But the plaintiff cannot
recover damages twice for the same act or
omission of the defendant.
2. QUASI-DELICTS
Requisites of quasi-delict

1. There must be a n 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
DIFFERENCE
BETWEEN CRIME
AND QUASI-DELICT
CRIME
- There is malicious intent
- purpose: punishment
- Affects public interest
- Generally 2 liabilities: criminal
and civil
- Cannot be compromised or
settled by party themselves
- Guilt must be prove beyond
reasonable doubt
QUASI DELICT
- There is only negligence
- purpose: indemnification
- Concerns private interest
- liability: only civil liability
- Can be compromised as any
other civil liability
- Proved by preponderance of
evidence
Presentation title 22

SUMMARY
I. General Principles

II. Sources of Obligations

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