CHAPTER 1

GENERAL PROVISIONS
(Civil Code Article 1156-1162)
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 LEARNING OBJECTIVES:
1. To understand what is civil obligation and why is it a juridical necessity
2. To know and understand the four (4) essential requisites of a civil obligation
3. To understand the meaning of right, cause of action, injury, damage, and
damages
4. To understand the different sources of obligations and be able to cite examples
from each sources
5. To understand what is restitution, reparation, and indemnification
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 CONTENTS
1. What is Obligation?

2. Essential Requisites of Obligations

3. Sources of Obligations

4. Scope of Civil Liability

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 What is Obligation?

Philippine Civil Code Article 1156 defines obligation as a

juridical necessity to give, to do, or not to do.

CIVIL OBLIGATION
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 Examples of Civil Obligations
1. Obligation to pay your tuition fee at school (to give)
2. Obligation of a parent to take care of their children (to do)
3. Obligation of anyone not to steal (not to do)
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 Why civil obligation is a
juridical necessity?

In case of non-compliance, the courts of justice may be called

upon to enforce its fulfillment or, in default thereof, the economic
value that it represents.
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 NOT a juridical necessity
(therefore NOT civil obligations)

1. Your obligation to attend masses (moral obligation)

2. To pay back your debt of gratitude (natural obligation)
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 CONTENTS
1. What is Obligation?

2. Essential Requisites of Obligations

3. Sources of Obligations

4. Scope of Civil Liability

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 Essential Requisites
1. Passive subject (Obligor)
- person who is bound to the fulfillment of the obligation

2. Active subject (Obligee)

- person who is entitled to demand the fulfillment of the obligation

3. Prestation/Object/Subject Matter
- conduct required to be observed by the debtor (It may consist in giving, doing, or not doing)

4. Juridical tie/Vinculum/Vinculum juris

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- binds or connects the parties to the obligation

 Example
Noel is obliged to pay his income taxes.

• Passive subject – Noel

• Active subject - Philippine Government
• Prestation - to give money (pay income tax)
• Juridical tie - Law
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 Another Example
Contract of Sale
Mike sold a bottle of wine to Joshuafor P1,000

OBLIGATION 1 OBLIGATION 2
Passive Mike Joshua
Active Joshua Mike
Prestation Deliver bottle of wine Pay P1,000
Juridical Tie Contract
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 Obligations, Right, Cause of
Action (Wrong)
✓Obligation
- juridical necessity to give, to do, or not to do

✓Right
- power which a person has under the law, to demand from
another any prestation

✓Cause of Action
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- act or omission which violates a right

 Injury, Damage, and Damages
✓Injury
- act or omission which causes harm

✓Damage
- The harm done to a party

✓Damages
- sum of money recoverable by reason of damage done
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 Example
Mike sold a bottle of wine to Joshua for P1,000.

OBLIGATIONS RIGHTS

Mike ✓Deliver the bottle of wine Demand collection of P1,000

Demand delivery of bottle of

Joshua X Pay P1,000
wine

If Mike delivered the bottle of wine and Joshua does not pay Mike P1,000, Mike
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will have a right of action.

 Example
Mike- plaintiff
Joshua- defendant

✓Cause of action
- omission on part of Joshua (not paying)
✓Damage
- Mike incurred loss on the sale
✓Damages
-sum of money recoverable (P1,000+)
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 Types Of Obligations
According To Prestation

1. Real obligation
- to give

2. Personal Obligation
I. Positive personal - to do
II. Negative personal - not to do
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 CONTENTS
1. What is Obligation?

2. Essential Requisites of Obligations

3. Sources of Obligations

4. Scope of Civil Liability

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 Sources of Obligations

Article 1157 Obligations arise from:

1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omissions punished by law
5. Quasi-delicts
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 Obligations arising from law
-When imposed by the law itself

Examples:
✓Pay taxes (Tax Code)
✓Obligations of parents to the family (Family Code)
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 Obligations arising from contracts

A contract is a meeting of minds between two persons whereby

one binds himself, with respect to the other, to give something
or to render some service.
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 Obligations arising from
quasi-contracts

A quasi-contract is that juridical relation resulting from

certain lawful, voluntary and unilateral acts by virtue of which
the parties become bound to each other to the end that no one
will be unjustly enriched or Benefited at the expense of
another.
 
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 Example

✓You received excessive change after buying from a store, it is

your obligation to return the  excessive change (solutio indebiti)

✓Another person took care of your dog while you’re away, it is

your obligation to reimburse him  the necessary expenses he
incurred (negotiorum gestio)
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 Obligations arising from delicts

Also known as crime or felony. 

Unlike other sources of obligations, delicts produce both criminal

and civil liabilities.

Examples:
estafa, murder, rape (note that doing these crimes could get you
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imprisoned)
 Obligations arising from
quasi-delicts

Also known as tort or culpa

This is an act or omission by one party which causes damage to

another party wherein there is no pre-existing contract.
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 Example

✓Because of the organizers’ negligence, audience were hurt

during an event.

✓Because you are not careful while running in a busy sidewalk,

you bumped into a child and the child suffered injuries.

In both cases the tortfeasors (organizers, you) will answer for the
medical expenses of the audience (first case) and the child (second case)
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 CONTENTS
1. What is Obligation?

2. Essential Requisites of Obligations

3. Sources of Obligations

4. Scope of Civil Liability

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 Scope of Civil Liabilities
1. Restitution
- the restitution of the thing itself must be made whenever possible, with
allowance for any deterioration, or diminution of value as determined by the court

2. Reparation for the damage caused

- court shall determine the amount of damage, taking into consideration the price of
the thing, whenever possible, and its special sentimental value to the injured party,
and reparation shall be made accordingly

3. Indemnification for consequential damages

- Indemnification for consequential damages shall include not only those caused the
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injured party, but also those suffered by his family or by a third person by reason of
the crime
 Example

Niko stole the vehicle of John. Niko was sighted by the authority and
was engaged in a car chase. After a while, Niko was apprehended by
the authority but the vehicle he stole from John got damaged.
Furthermore, John should have presented the vehicle in a car show
the same day Niko stole the said vehicle. As a result, John loss
potential income from the car show.
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 Example
• Restitution
- return the vehicle

• Reparation
- answer for the damage caused to the vehicle

• Indemnification
-since Niko’s act resulted to John’s loss, Niko will also answer
for the said loss
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 Sources of Obligations
1. Law  
2. Contracts  
3. Quasi- contracts 
4. Delicts 
5. Quasi-delicts
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 Main Coverage 

Civil code Article 1156-1304 (Obligations)

Civil code Article 1305-1422 (Contracts)
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 Obligations Arising From 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  foreseen, by the provisions of this
Book.
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 Example

1. An employer has no obligation to furnish free legal assistance to

his employees.

2. A private school has no legal obligation to provide clothing

allowance to its teachers .
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 Obligations Arising
From Contracts 
Article 1159 
Obligations arising from contracts have the force of law
between the contracting parties and should be complied
with in good faith.
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 Obligations Arising From
Quasi-contracts 
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.
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 1. Negotiorum Gestio (Article 2144-2153)
2. Solutio Indebiti (Article 2154-2163)
3. Other Quasi-contracts (Article 2164-2175)
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 Negotiorum Gestio
This juridical relation does not arise in either of these instances 
1. When the property or business is not neglected or abandoned 
2. If in fact the manager has been tacitly authorized by the
owner 

First scenario - Unauthorized contract

Second scenario - Contract of agency
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 Other quasi-contracts 
When without the knowledge of the person obliged to give
support, it is given by a stranger, the latter shall have a right
to claim the same from the former, unless it appears that he
gave it out of pity and without intention of being repaid
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 Other quasi-contracts 
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.
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 Quasi-delicts (Article 2176-2194)

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.
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 Quasi-delicts 

The obligation imposed by article 2176 is demandable

not only for one's own acts or omissions but also for
those of persons for whom one is responsible.
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 Example

1. The father and, in case of his death or incapacity the mother are
responsible for the damages caused by the minor children who live
in their company.

2. The owners and managers of an establishment or enterprise are

likewise responsible for damages caused by their employees in the
service of the branches in which the latter are employed or on the
occasion of their functions
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