OBLIGATIONS and CONTRACTS

By: GHENALYNNE D.J. SANTOS-

FACULTY CCJE 2019
LAW THAT GOVERNS OBLIGATIONS AND CONTRACTS

CIVIL CODE OF THE PHILIPPINES

Republic Act. No. 386

The Civil Code of the Philippines is

the product of the codification of private laws in
the Philippines.
It is the general law that governs
family and property relations in the Philippines.
It was enacted in 1950, and remains in force to date
with some significant amendments.
PRIVATE LAW V. PUBLIC LAW
 Private law is that part of a civil law legal system
which is part of the jus commune that involves
relationships between individuals, such as the law
of contracts or torts and the law on obligations.
 It is to be distinguished from public law, which
deals with relationships between both natural and
artificial/juridical persons (i.e., organizations) and
the state, including regulatory statutes, penal
laws, and other law that affects the public order.
 In general terms, private law involves interactions
between private individuals, whereas public law
involves interrelations between the state and the
general population.
 JUS COMMUNE
Jus commune or ius
commune is Latin for "common
law" in certain jurisdictions. It is
often used by civil law jurists to
refer to those aspects of the civil law
system's invariant legal principles,
sometimes called "the law of the
land" in English law.
Natural Person v. Juridical Person
In jurisprudence, a natural person is a person (in
legal meaning, i.e., one who has its own legal
personality) that is an individual human being.

Juridical/Legal persons may pertain to private

(i.e., business entity or non-governmental organization)
or public (i.e., government) organization. Any
organization that is not a single natural person but is
authorized by law with duties and rights and is
recognized as a legal person and as having a distinct
identity.
This includes any incorporated organizations including
corporations, government agencies, and NGOs.
 Also known as artificial
person, juridical entity, juristic
person, or legal person.

The rights and responsibilities of a

juridical person are distinct from
those of the natural persons
constituting it.
 COMPONENTS OF THE CIVIL
CODE OF THE PHILIPPINES
The Civil Code is divided into four “books”,
with each specific book namely:
 Persons and Family relations.
 Property, Ownership and its Modifications.
 Modes of Acquiring Ownership.
 Obligations and Contracts.
 Torts and Damages.
OBLIGATIONS & CONTRACTS
PART I.
DEFINITION OF OBLIGATIONS & CONTRACTS

PART II.
ELEMENTS OF AN OBLIGATION

PART III.
DIFFERENT KINDS OF PRESTATIONS

PART IV.
CLASSIFICATION OF OBLIGATIONS
 PART V.
SOURCES OF OBLIGATIONS

PART VI.
NATURE & EFFECTS OF OBLIGATIONS

PART VII.
KINDS OF OBLIGATIONS

PART VIII.
JOINT & SOLIDARY OBLIGATIONS

PART IX.
EXTINGUISHMENT OF OBLIGATIONS
DEFINITION OF OBLIGATION:

Article 1156 of the NCC:

AN OBLIGATION IS A
JURIDICAL
NECESSITY TO GIVE,
TO DO OR NOT TO DO.
ELEMENTS OF AN OBLIGATION
1. ACTIVE SUBJECT
/OBLIGEE/CREDITOR
2. PASSIVE
SUBJECT/OBLIGOR/DEBTOR
3. PRESTATION
4. VINCULUM JURIS
 ACTIVE SUBJECT
Obligee or Creditor

Refers to the person who

has the right or power to
demand the prestation.
 Passive Subject
Obligor/Debtor

Refers to the person

bound to the
performance of the
prestation.
 PRESTATION

Refers to the OBJECT.

The conduct required to be observed

by the debtor /obligor

To give, to do or not to do
 VINCULUM JURIS
It means juridical or legal tie;

Efficient Cause

That which BINDS or CONNECTS

the PARTIES to the OBLIGATION.
 DIFFERENT KINDS
OF PRESTATIONS:

A.TO GIVE
B.TO DO
C.NOT TO DO
Meaning of “TO GIVE:”
It refers to the REAL OBLIGATION;

FOR WHAT?

ANSWER:
TO DELIVER EITHER:
1. A specific or determinate thing;
2. A generic or indeterminate thing.
 TO DO:

POSITIVE PERSONAL
OBLIGATION

It. Includes all kinds of work or

services.
 OBLIGATION NOT TO DO:
NEGATIVE PERSONAL
OBLIGATIONS

To abstain from doing an act;

It includes an obligation not to give.

 Classification of Obligations
as to juridical quality, as to object, as to parties, as to perfection and extinguishment

As to JURIDICAL QUALITY:
a. natural- when the obligation is in
accordance with natural law.
b. Civil- when obligation is in accordance
with positive law.
c. Mixed- when obligation is in
accordance with both natural and
positive law.
 Art. 1423. 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.
As to PARTIES:
a. Unilateral and Bilateral
 Unilateral – when only one party is bound;

 Bilateral –when both parties are mutually or

reciprocally bound.
b. Individual and collective
 Individual- when there is only one obligor;
 Collective- when there are several obligors; it
can also be JOINT when each obligor may be held
liable for the entire obligation.
As to OBJECT:
A. Determinate & Generic
Determinate – when the object is specific;
Generic- when the object is designated by its class
or genus/ class/kind;
B. Simple & Multiple
Simple- is when there is only one undertaking
Multiple- when there are several undertakings;
Multiple Obligations can either be:
a. Conjunctive
b. distributive
 Conjunctive v. Distributive
Conjunctive multiple obligation- when all the
undertakings are demandable at the same time;

Distributive Multiple Obligations- when only one

undertaking out of several is demandable;

Distributive Multiple Obligations can either be:

a. Alternative
b. Facultative
 Alternative v. Facultative
Alternative
- when the obligor is allowed to choose one out
of several obligations, which may be due and
demandable;

Facultative
-when the obligor is allowed to substitute
another obligation for one which is DUE and
DEMANDABLE.
 c. Positive & Negative
Positive- when the obligor is obliged to give or to
do something;

Negative- when the obligor must refrain from

giving or doing something.
d. Real and Personal
Real- when the obligation consists in giving
something;
Personal-when the obligation consist in doing or
not doing something;
 e. Possible & Impossible
Possible- when the obligation is capable of
fulfillment in nature as well as in law;
Impossible-when the obligation is NOT capable
of fulfillment either in nature or in law;
e. Divisible & Indivisible
Divisible- when the obligation is susceptible of
partial performance;
Indivisible- when the obligation is not
susceptible of partial performance;
 g. Principal & Accessory
Principal
- when it is the main undertaking;

Accessory
- when it is merely an undertaking to
guarantee the fulfillment of the principal
obligation.
As to PERFECTION &
EXTINGUISHMENT:

A.PURE
B.CONDITIONAL
C.WITH A TERM OR
PERIOD
Pure Obligations:
1. Pure Obligation- when it is not subject to any
term or condition and is immediately demandable;

2. Conditional Obligation- when it is subject to a

condition which can either be:
a. Suspensive condition- in which case the
happening or fulfillment of the condition
results in the birth of the obligation;
b. Resolutory condition- in which case the
happening or fulfillment of the condition results
in the extinguishment of the obligation;
3. With a term or period

a. Suspensive or FROM a day certain- in which

case the obligation is demandable ONLY
upon the EXPIRATION of a term or;

b. Resolutory or TO a day certain- in which

case the obligation terminates upon the
expiration of the term;
Natural Obligations
articles 1423- 1430 NCC
Performance of a natural obligation is merely
voluntary on the part of the obligor;

Failure to comply with such obligation does not give

a Right of Action to COMPEL its performance;

It cannot be enforced by human institutions like the

courts and the obligor therefore does NOT , as a
RULE, ‘enjoy the protection of the courts.”