CbllgaLlons and ConLracLs

ChapLer 1 Ceneral rovlslons

ArL 1136 An obllgaLlon ls a [urldlcal necesslLy Lo glve Lo do or noL Lo do
CbllgaLory 8elaLlon ln lLs 1oLallLy 1he [urldlcal relaLlon creaLed by vlrLue of cerLaln facLs beLween Lwo
or more persons whereby Lhe credlLor or obllgee may demand of Lhe debLor or obllgor a deflnlLe
presLaLlon
a An obllgaLlon ls a [urldlcal necesslLy because lf an obllgor falls Lo perform hls obllgaLlon he may
afLer due process be made Lo suffer some ln[ury by way of loss of some rlghL money or
properLy
LlemenLs of CbllgaLlons
1 AcLlve Sub[ecL (obllgee / credlLor) Lhe possessor of Lhe rlghL he on hls favor Lhe obllgaLlon ls
consLlLuLed
2 asslve Sub[ecL (obllgor / debLor) he who has Lhe duLy of glvlng dolng or noL dolng
3 1he ob[ecL or presLaLlon ( Lhe sub[ecL maLLer of Lhe obllgaLlon) requlred Lo be observed by Lhe
debLor
4 1he efflclenL cause [urldlcal Lle vlnculum [urls esLabllshed by Lhe varlous sources of
obllgaLlons (law conLracLs quaslconLracLs dellcLs and quasldellcLs) Lhe reason why Lhe
obllgaLlons exlsL
3 lC8M ln few cases Lhe manner ln whlch Lhe obllgaLlons ls manlfesLed buL cannoL be
consldered essenLlal

klnds of resLaLlon
1 1o glve ls a presLaLlon whlch conslsLs ln Lhe dellvery of a movable or lmmovable Lhlng ln order
Lo creaLe a real rlghL or for Lhe use of Lhe reclplenL or for Lhe slmple possesslon or ln order Lo
reLurn Lo lLs owner
2 1o do lncludes all klnds of work or servlces wheLher menLal or physlcal
3 noL Lo do conslsL ln absLalnlng from some acL lncludes noL Lo glve" boLh belng negaLlve
obllgaLlons
klnds of CbllgaLlons
a lrom Lhe vlewpolnL of sancLlon
1 Clvll CbllgaLlon ( or perfecL obllgaLlon) sancLlon ls a [udlclal process
2 naLural CbllgaLlon sancLlon ls Lhe law of course buL only because consclence had
orlglnally moLlvaLed Lhe paymenL
3 Moral CbllgaLlon sancLlon here ls consclence or morallLy or Lhe law of Lhe Church

b lrom Lhe vlewpolnL of sub[ecL maLLer
1 8eal CbllgaLlon obllgaLlon Lo glve
2 ersonal CbllgaLlon Lhe obllgaLlon Lo do or noL Lo do
c lrom Lhe afflrmaLlveness and negaLlveness of Lhe obllgaLlon
1 oslLlveness or afflrmaLlve obllgaLlon obllgaLlon Lo glve or Lo do
2 negaLlve obllgaLlon Lhe obllgaLlon noL Lo do ( whlch naLurally lncludes noL Lo glve )
d lrom Lhe vlewpolnL of Lhe person obllged
1 unllaLeral where only one parLy ls obllged
2 8llaLeral boLh parLles are bound
8llaLeral obllgaLlon maybe a reclprocal b nonreclprocal (where performance by one ls
nondependenL upon performance by Lhe oLher)

ulsLlncLlon beLween naLural and Clvll CbllgaLlon
naLural Clvll
As Lo LnforceablllLy noL by courL acLlon buL by good
consclence of Lhe debLor
CourL acLlon or Lhe coerclve
power of publlc auLhorlLy
As Lo 8asls LqulLy and naLural [usLlce oslLlve Law

Sources of CbllgaLlons
ArL 1137 CbllgaLlons arlses from
1 Law
2 ConLracLs
3 CuaslConLracLs
4 AcLs or omlsslons punlshed by law and
3 Cuasl dellcLs

a Law ( obllgaLlons ex lege ) llke Lhe duLy Lo pay Laxes and supporL one's famlly ( husband
and wlfe)
b ConLracLs ( obllgaLlons ex conLracLu Culpa ConLracLual ) llke Lhe duLy Lo repay a loan by
vlrLue of agreemenL
c Cuasl conLracLs (obllgaLlons ex quaslconLracLu) llke Lhe duLy Lo refund an over change"
of money because of Lhe quaslconLracL of soluLlon lndeblLl or undue paymenL
d Crlmes or AcLs or Cmlsslon unlshed by Law ( obllgaLlons ex maleflclo or exdellcLo) llke
Lhe duLy Lo reLurn a sLolen carabao
e CuasldellcLs or 1orLs (obllgaLlon ex quasldellcLo or ex quasl maleflclo ) llke Lhe duLy Lo
repalr damage due Lo negllgence

ArL 1138 CbllgaLlons derlved from law are Not ltesomeJ Cnly tbose exptessly JetetmloeJ ln Lhls Code
or ln speclal law are demandable and shall be regulaLed by Lhe precepLs of Lhe law whlch esLabllshes
Lhem and as Lo whaL has noL been foreseen by Lhe provlslon of Lhls book
CbllgaLlons Lx Lege
Coverned by Lhe law lLself
Lx 1he duLy Lo supporL ( ArL 291 Clvll Code )
1he duLy Lo pay Laxes ( naLlonal 8evenue Code )
no AgreemenL ls necessary before obllgaLlon ex lege can arlse eg Lax collecLlon ArL 448
Meanlng of Lhe ArLlcle
1he law says obllgaLlons derlved from law are noL presumed 1hls merely means LhaL Lhe
obllgaLlon musL be clearly (expressly or lmplledly) seL forLh ln Lhe law (Clvll Code or Speclal
Laws)

ArL 1139 CbllgaLlons arlslng from conLracLs have Lhe force of law beLween Lhe conLracLlng parLles and
should be complled wlLh ln good falLh
CbllgaLlons Lx ConLracLu
Whlle obllgaLlons arlslng from a conLracL have Lhe force of law beLween Lhe parLles Lhls does
noL mean LhaL Lhe law ls lnferlor Lo conLracLs 1hls ls because before a conLracL can be enforced
lL musL be flrsL be valld and lL cannoL be valld lf lL ls agalnsL Lhe law Moreover Lhe rlghL of Lhe
parLles Lo sLlpulaLe ls llmlLed Pence ArL 1306 of Lhe Clvll Code says 1he conLracLlng parLles
may esLabllshed such sLlpulaLlons clauses Lerms and condlLlons as Lhey may deem convenlenL
provlded Lhey are noL conLrary Lo law morals good cusLoms publlc order or publlc pollcy"

Meanlng of Lhe ArLlcle
1he ArLlcle means LhaL nelLher parLy may unllaLerally and upon hls own excluslve vlolaLlon
escape Lhe conLracL unless Lhe oLher parLy assenLed LhereLo or unless for causes sufflclenL ln
law and pronounced adequaLe by a compeLenL Lrlbunal
Compllance ln good falLh conslsLs of honesL lnLenLlon Lo absLaln from Laklng unconsclonable and
unscrupulous advanLage of anoLher
1he 8lghL Lo enLer lnLo ConLracL
1he rlghL Lo enLer lnLo lawful conLracLs consLlLuLe one of Lhe llberLles of Lhe people of Lhe SLaLe
lf LhaL rlghL be sLruck down or arblLrarlly lnLerfered wlLh a subsLanLlal lmpalrmenL of
consLlLuLlonal rlghLs would resulL
lf Lhe publlc lnLeresL ls lnvolved ( as ln Lhe case of labor agreemenLs) Lhe governmenL has a rlghL
Lo lnLervene for Lhe proLecLlon of Lhe whole
ulfferences beLween CbllgaLlon and ConLracL
CbllgaLlon ls Lhe resulL of a conLracL ( or some oLher source) Pence whlle a conLracL lf valld
always resulL obllgaLlon

lnnomlnaLe ConLracLs
Cne LhaL does noL sLrlcLly conform Lo Lhe sLandard conLracLs buL ls recognlzed by law ( SanLos
v Acuna 100 hll 238)
a uo uL des l glve LhaL you may glve
b uo uL faclas l glve LhaL you may do
c laclo uL des l do LhaL you may glve
d laclo uL fclas l do LhaL you may do
eg A worked for 8 as lnLerpreLer even wlLhouL an express agreemenL as Lo compensaLlon
A ls enLlLled Lo compensaLlon because of faclo uL des l do Lhe lnLerpreLlng LhaL you may
glve Lhe money ( erez vs omar 2 hll 682)

ArL 1160 CbllgaLlons derlved from quasl conLracLs shall be sub[ecL Lo Lhe provlslons of ChapLer 1 1lLle
xvll of Lhls 8ook
Cuasl ConLracLs or uellcLs (Cuasl Lx ConLracLu)
A quasl conLracL ls a [urldlcal relaLlon beLween Lwo persons creaLed ouL of cerLaln lawful
volunLary and unllaLeral acLs glvlng rlse Lo cerLaln obllgaLlons on Lhe parL of one wlLh respecL Lo
Lhe oLher Lo Lhe end LhaL no one shall un[usLly enrlched or beneflLed aL Lhe expense of anoLher
1he 2 rlnclpal klnds or lorms of Cuasl ConLracLs
1 negoLorlum gesLlo (unauLhorlzed ManagemenL) 1hls Lakes place when one volunLarlly Lakes
charge of Lhe agency or managemenL of a neglecLed or abandoned buslness or properLy of
anoLher wlLhouL any power from Lhe laLLer
2 SoluLlo lndeblLl (undue paymenL ) Lakes place when one recelves someLhlng from anoLher
when Lhere ls no rlghL Lo demand for lL and lL was unduly dellvered Lhrough mlsLake
2 LlemenLs of SoluLlo lndeblLl
1 Pe who has pald was noL under obllgaLlon Lo do so
2 1he paymenL was made by reason of an essenLlal mlsLake of facL
ArL 1161 Clvll CbllgaLlons arlslng from crlmlnal offense shall be governed by Lhe penal laws sub[ecL Lo
Lhe provlslon of ArL 2177and of Lhe perLlnenL provlslons of ChapLer 2 rellmlnary 1lLle on Puman
8elaLlons and of 1lLle xvll of Lhls 8ook regulaLlng damages
CbllgaLlons Lx uellcLo Lx Maleflclo Culpa Crlmlnal
Covernlng 8ules
a erLlnenL provlslons of Lhe 8evlsed enal Code and oLher penal laws sub[ecL Lo provlslons of
ArL 2177 Clvll Code
b ChapLer 2 rellmlnary 1lLle on Puman 8elaLlons of Lhe Clvll Code
c 1lLle 18 of 8ook lv of Lhe Clvll Code on damages

erLlnenL rovlslon of 8C
ArL 100 Lvery person crlmlnally llable for a felony ls also clvllly llable 1he reason lles ln Lhe
facL LhaL ofLenLlmes Lhe commlsslon of a crlme causes noL only moral evll buL also maLerlal
damage lf no maLerlal damage ls done clvll llablllLy cannoL be enforced
ArL 12 8C LxempLlng clrcumsLances do noL lncur llablllLy buL are noL LxempL from clvll llablllLy
1 lmbeclle or lnsane person unless acLlng ln lucld lnLerval
2 erson under 9 years of age
3 erson over 9 years of age and under 13 unless acLlng wlLh dlscernmenL
4 AcLlng under compulslon of an lrreslsLlble force
3 AcLlng under lmpulse of unconLrollable fear of an equal or greaLer ln[ury
LxcepLlon (crlmes wlLhouL clvll llablllLy)
1 Crlmlnal conLempL
2 Cambllng
3 1rafflc vlolaLlons
WhaL Clvll LlablllLy Arlslng from a Crlme lnclude
a 8esLlLuLlon resLoraLlon of properLy sLolen from lLs rlghLful owner Lo hlm even Lhough found ln
Lhe possesslon of bona flde purchaser ( uS vs Peery 23 hll 609)
b 8eparaLlon of damage caused Lhe paymenL of Lhe offender of Lhe value of Lhe Lhlng
c lndemnlflcaLlon for consequenLlal damages (ArL 104 8C) for acLual damages Lhe Lerm
comprehends noL only Lhe value of Lhe loss suffered buL also LhaL of Lhe proflL whlch Lhe
credlLor falled Lo obLaln

Clvll AcLlon lmpllclLly lnsLlLuLed ln Crlmlnal Case
As a general rule whenever a crlmlnal acLlon ls lnsLlLuLed Lhe clvll acLlon for clvll llablllLy ls also
lmplledly lnsLlLuLed LogeLher wlLh Lhe crlmlnal acLlon (8ule 3 Sec 1 8evlsed 8ules of CourL)
ArL 1162 CbllgaLlons derlved from quasl dellcLs shall be governed by Lhe provlslons of ChapLer 2 1lLLle
xvll of Lhls 8ook and by speclal laws

CbllgaLlons Lx CuasluellcLs (1orL or Culpa Aqulllana) or Lx Cuasl Maleflclo
Cuasl uellcLs ls a faulL Lo anoLher or acL of negllgence (or omlsslon of care) whlch causes damages Lo
anoLher Lhere belng no preexlsLlng conLracLual relaLlonshlp beLween Lhe parLles
Culpa Aqulllana can refer Lo acL whlch are crlmlnal ln characLer wheLher Lhe same be volunLary or
negllgenL
Covernlng laws
a ChapLer 2 1lLle 17 8ook lv Clvll Code
b Speclal Laws


ChapLer ll naLure and LffecL of CbllgaLlons
klnds of resLaLlon
a CbllgaLlon Lo Clve
Speclflc 1hlng ( ueLermlnaLe) Cenerlc 1hlng ( lndeLermlnaLe)
Cne LhaL ls lndlvlduallzed and can be
ldenLlfled or dlsLlngulshed from oLhers of lLs
klnd


eg Lhls car
Lhls car wlLh plaLe number 1814
lndlcaLed only by lLs klnd wlLhouL belng
deslgnaLed and dlsLlngulshed from oLhers of
Lhe same klnd
Cb[ecLs due becomes deLermlnable from
momenL of dellvery
eg a car
a 8MW auLomoblle

uu1lLS Cl 1PL Cbllgor
1 1o dellver Lhe Lhlng lLself ArL 1244 ar 1
2 1o preserve Lhe Lhlng wlLh due care ArL 1163
3 1o dellver Lhe accesslons and accessorles ArL 1166
4 1o dellver Lhe lrulLs ArL 1164

ArL 1163 Lvery person obllged Lo glve someLhlng ls also obllged Lo Lake care of lL wlLh proper dlllgence
of a good faLher of a famlly unless Lhe law or Lhe sLlpulaLlon of Lhe parLles requlres anoLher sLandard of
care
ulllgence of a Cood laLher means ordlnary dlllgence LhaL degree or quallLy of care LhaL an ordlnary
prudenL man normally glves or observes ln Lhe exerclse of hls rlghLs and ln Lhe performance of hls
obllgaLlons Laklng lnLo conslderaLlon Lhe naLure of obllgaLlon and Lhe clrcumsLances of persons Llme
and place
LxLraordlnary ulllgence An obllgor ls requlred Lo exerclse exLraordlnary dlllgence only lf Lhe law or
conLracL provldes An example of a provlslon of law whlch requlres exLraordlnary dlllgence on Lhe parL
of Lhe obllgor ls ArL 1733 of Lhe Clvll Code
lallure Lo preserve Lhe Lhlng LlablllLy for damages
8uL lf due Lo lC81ul1CuS LvenLs or lorce Ma[eure LxempLed from responslblllLy

uuLy Lo Lxerclse ulllgence
1he ArLlcle deals wlLh Lhe flrsL effecL of an obllgaLlon Lo dellver a deLermlnaLe Lhlng (as a
dlsLlngulshed from a generlc Lhlng or one of a class) namely Lhe duLy Lo exerclse proper
dlllgence unless dlllgence ls exerclsed Lhere ls a danger LhaL Lhe properLy wlll be losL or
desLroyed Lhus renderlng lllusory Lhe obllgaLlon

A81 1164 1he credlLor has Lhe rlghL Lo Lhe frulLs of Lhe Lhlng from Lhe Llme Lhe obllgaLlon Lo dellver lL
arlses Powever he shall no real rlghL over lL unLll Lhe same has been dellvered Lo hlm
Cwnershlp of Lhlngs ls Lransferred noL only by mere agreemenLs buL by dellvery
LllLC1S Cl uLLlvL8? dellvery confers upon Lhe obllge a real rlghL over Lhe Lhlng
klnds of uellvery
1 AcLual dellvery (or LradlLlon) where physlcally Lhe properLy changes hands
2 ConsLrucLlve uellvery ls a general Lerm comprehendlng all Lhose acLs whlch alLhough noL
conferrlng physlcal possesslon of Lhe Lhlng have been held by consLrucLlon of law
equlvalenL Lo acLs of real dellvery eg Lhe glvlng of a key Lo Lhe house or Lhe execuLlon of a
deed of sale as consLrucLlve dellvery of Lhe house from vendor Lo Lhe vendee
L8SCnAL 8lCP1 ls Lhe power of one person Lo demand of anoLher as deflnlLlve passlve sub[ecL Lhe
fulfllmenL of a presLaLlon Loglve Lo or noL Lo do
8LAL 8lCP1 A real rlghL ([us ln re) ls Lhe rlghL of domlnlon over a Lhlng as Lo enLlLle Lhe rlghLholder Lo
malnLaln acLlon for Lhe recovery of Lhe properLy lf lL ls wrongfully possessed by anoLher lL ls Lhe power
belonglng Lo a person over speclflc Lhlng wlLhouL a passlve sub[ecL lndlvldually deLermlned agalnsL
whom such rlghL may be personally exerclsed
8lCP1 1C 1PL l8ul1S Lhe credlLor ls enLlLled Lo Lhe frulLs of Lhe ob[ecL of Lhe obllgaLlon prlor Lo lLs
dellvery Lo hlm
ArL1163 When whaL ls Lo be dellvered ls a deLermlnaLe Lhlng Lhe credlLor ln addlLlon Lo Lhe rlghL
granLed hlm by arLlcle 1170 may compel Lhe debLor Lo make Lhe dellvery lf Lhe Lhlng ls deLermlnaLe or
generlc he may ask LhaL Lhe obllgaLlon be complled wlLh aL Lhe expense of Lhe debLor lf Lhe obllgor
delay or has promlsed Lo dellver Lhe same Lhlng Lo Lwo or more persons who do noL have Lhe same
lnLeresL he shall be responslble for forLulLous evenL unLll he has affecLed Lhe dellvery
ClasslflcaLlon of CbllgaLlon from Lhe vlewpolnL of Sub[ecL maLLer
lrom Lhe vlewpolnL of Lhe sub[ecL maLLer (or ob[ecL) of Lhe obllgaLlon obllgaLlon are dlvlded lnLo
a 8eal obllgaLlon ( Lo glve)
1 1o glve speclflc Lhlng ( seL aparL from a class)
2 1o glve a generlc or lndeLermlnaLe Lhlng ( one of Lhe class)
b ersonal obllgaLlon (Lo do or noL Lo do)
Speclflc or ueLermlnaLe 1hlngs
A Lhlng ls sald Lo be speclflc or deLermlnaLe when lL ls capable of parLlcular deslgnaLlon
eg 1 1hls Car
2 1he car owned by A on SepL 12 2003
3 1he car plaLe number 1814 (2003)
Cenerlc or lndeLermlnaLe 1hlngs
A generlc Lhlng ls one whlch ls deslgnaLed merely by lLs class or genus wlLhouL any parLlcular
deslgnaLlon or physlcal segregaLlon from all oLhers of Lhe same class
ulsLlncLlon beLween deLermlnaLe and generlc Lhlng
SC lnvoklng Lhe auLhorlLy of Manresa Lhus ln hls commenL on ArL 1096 of Lhe Clvll Code of
Spaln saylng LhaL Lhe flrsL ls a concreLe parLlcularlzed ob[ecL lndlcaLed by lLs own lndlvlduallLy
whlle a generlc Lhlng ls one of whose deLermlnaLlon ls conflned Lo LhaL of lLs naLure Lo Lhe
genus ( genero) Lo whlch lL perLalns such as a horse a chalr
8emedles of Lhe obllge / credlLor when Lhe obllgor / debLor falls Lo comply wlLh hls obllgaLlon
a uemand speclflc performance (or compllance) for Lhe obllgaLlon ( WheLher Lhe obllgaLlon be
generlc or speclflc)
b uemand resclsslon or cancellaLlon (ln some cases)
c uemand damage wlLh or wlLhouL elLher of Lhe flrsL Lwo (a) or (b)
When obllgor llable even lf loss ls caused by lorLulLous evenL / LffecL of lorLulLous evenL
under Lhe lasL paragraph