O B L I G AT I O N S

GENERAL PROVISIONS
Article 1 1 5 6 - 1 1 6 2
 An obligation is a
A R TIC L E juridical necessity to
1156 give, to do or not
to do.
 O B L I G AT I O N

• The terms is derived from the Latin word

o b l i g a t i o which means tying or binding.
• It is a tie or bond recognized by law by virtue of
which one is bound in favor of another to
render something – and this m a y consist in
giving a thing, doing a certain act, or not doing
a certain act.
 O B L I G AT I O N S
CIVIL O B L I G AT I O N S
• It give a right of action to
compel their performance.
(Article 1423)
• The oblige or creditor has a
right to enforce the obligation
against the obligor or debtor
in a court of justice.
NATURAL O B L I G AT I O N S
• This is based on equity and
natural law, not on
positive law.
• It does not grant a right of
action to enforce their
performance, but after the
voluntary fulfillment by the
obligor, they authorize the
retention of what has been
delivered or rendered by
reason thereof. (Article 1423)
 A RTIC L E 1156.AN O B L IG ATIO N IS A
JU R I D I C A L N E C E S S I T Y TO
G I V E , TO DO OR N O T TO DO.

• JURIDICAL NECESSITY • CIVIL OBLIGATIONS

• Obligation is a juridical
necessity because in case of
non-compliance, the courts of
justice m a y be called upon
by the aggrieved party to
enforce its fulfillment or, in
default thereof, the economic
value that it represents
• To give (Obligation to pay
your tuition fees)
• To do (Obligation of a parent
to take care of their children)
• Not to do (Obligation not to
steal that which is not yours)
 K IN D S O F
O B L IG ATIO N S
(SUBJECT
M AT T E R )
1. REAL OBLIGATION (TO GIVE)
2. PERSONAL OBLIGATION (TO D O O R NOT
TO DO)
1. Positive Personal Obligations
2. Negative Personal Obligations
 E S S E N TIA L R E Q U IS ITE S O F
A N O B L I G AT I O N

Active Su b je ct (called creditor or obligee) - The person

who is entitled to demand the fulfillment of the
obligation; he who has the right.
Pa s s i v e Su b je ct (called the debtor or the obligor) - The
person who is bound to the fulfillment of the obligation;
he who has the duty.
Object or p r e s t a t i o n (subject matter of the obligation) -
The conduct required to be observed by the debtor – to
give, to do, or not to do.
4. Juridical or l e g a l tie (also called a s the efficient
cause or vinculum juris) - That which binds or connects
the parties to the obligation. The consideration that the
obligation exists.
 UND ER A B U IL D IN G C O N TR A C T, A L E X
BOUND HIMSELF TO B U I L D A HOUSE
FOR BOBBY AN AM O UN T OF PH P
1, 000, 000. 00.

• ACTIVE SUBJECT • ACTIVE SUBJECT

• BOBBY • ALEX
• PASSIVE SUBJECT • PASSIVE SUBJECT
• ALEX • BOBBY
• OBJECT O R PRESTATION • OBJECT O R PRESTATION
• BUILD A H O U S E • PAYMENT
• JURIDICAL TIE • JURIDICAL TIE
• BUILDING CONTRACT • PHP 1,000,000.00
 U N D E R A N A G R E E M E N T, J E N N I E O B L I G E S
H E R S E LF TO R E N D E R TU TO R IA L S E R V IC E S
TO J ISOO.

• ACTIVE SUBJECT • Jisoo

• PASSIVE SUBJECT • Jennie
• OBJECT O R PRESTATION • Render tutorial services
• JURIDICAL TIE • Agreement between
Jennie and Jisoo
 Obligations arise from:
(1) Law;
(2) Contracts;
A RTIC LE 1157 (3) Quasi-contracts;
(4)Acts or omissions
punished by law; and
(5) Quasi-delicts.
(1089a)
 • Imposed by the law itself.

• Example:
LAW
• Obligation to pay taxes;
obligation to support one’s
family (Art. 291, Civil Code)
 • Arise from the stipulations
of the parties. (Article
1306, Civil Code)

C O N TR A C TS
• Example:
• The obligation to repay a
loan or indebtedness by
virtue of an agreement.
 • Arise from lawful, voluntary
and unilateral acts which are
enforceable to the end that
no one shall be unjustly
enriched or benefited at the
expense of another. (Article
QUASI-CONTRACTS 2142, Civil Code)

• Example:
• Obligation to return
money paid by mistake or
which is not due.
 • It arises from civil
liability which is a
consequence of a
criminal offense. (Article
C R IM E S OR 1161)
A C TS O R
OMISSIONS • Ex. Obligation of a thief
P U N IS H E D B Y
LAW to return the car
stolen by him; duty of
the killer to indemnify
the heirs of his victim.
 • Arise from d a m a g e caused to
another through an act or
omission, there being fault or
negligence, but no contractual
relation exists between the
parties. (Article 2 1 7 6 )
Q U A S I-D E L IC T S • Example:
O R TO RT S • The obligation of the head of a family
that lives in the building or a part
thereof to answer for damages caused
by things thrown or falling from the
s a me (Article 2193);
• The obligation of the possessor of an
animal to pay for the damage which it
m a y have caused. (Article 2183).
 Obligations derived from law
are not presumed. Only those
expressly determined in
this Code or in special laws
are demandable, and shall
A RT I C L E 1 1 5 8 be regulated by the
precepts of the law which
establishes them; and a s to
what ha s not been foreseen,
by the provisions of this
Book.
 Legal obligations are not
presumed because they are
considered a burden upon the
obligor. They are the exception,
not the rule. LEGAL
O B L I G AT I O N S
Hence, to be demandable, they
must be clearly set forth in
the law.
 Obligations arising from
contracts have the
force of law between
A RT I C L E 1 1 5 9
the contracting parties
and should be
complied with in good
faith.
These are obligations which
arises from contracts or
voluntary agreements. It
C O N TR A C TU A L
presupposes that the O B L I G AT I O N S
contracts entered into are
valid and enforceable.
 CONTRACT

a. Binding force – Obligations arising

A contract is a meeting
of the minds between
two persons whereby one
binds himself. with
respect to the other, to
b. Requirement of a valid contract – A
give something, or to
render some service (Art.
1305)
from contracts have the force of law
between the contracting parties. This
does not m e a n that the contract is
superior to the law. A s a source of
enforceable obligation, contract must
be valid and it cannot be valid if it is
against the law.
contract is valid if it is not contrary to
law, morals, good customs, public
order, and public policy. Otherwise, the
contract is invalid. (Art. 1306)
 PROBLEM

Keysie, the borrower, agrees to pay her debt to Jessa.

In their agreement, they state that in case of non-

payment by Keysie, Keysie shall render “free” service
to be Jessa’s servant.

Is the obligation of Keysie to pay Jessa valid?

How about the obligation in case of non-payment?
 C O M P L I A N C E IN
It means Non-compliance by a G O O D FA I T H
compliance or party with his
legitimate obligations
performance in after receiving the
accordance with benefits of a contract
the stipulations or would constitute
terms of the unjust enrichment on
his part.
contract or
agreement.
 Obligations derived from
quasi-contracts shall be
A RT I C L E 1 1 6 0 subject to the
provisions of Chapter 1,
Title XVII, of this Book.
(n)
A quasi-contract is that juridical
relation resulting from lawful,
voluntary, and unilateral acts by
virtue of which the parties become QUASI-
bound to each other to the end that C O N TR A C TU A L
no one will be unjustly enriched or O B L I G AT I O N S
benefited at the expense of
another. (Art. 2142)
 K I N D S OF QUASI-CONTRACT
NEGOTIORUM GESTIO
It is the voluntary management of
the property or affairs of another
without the knowledge oir consent
of the latter. (Art. 2144)
SOLUTIO INDEBITI
It is the juridical relation which is
created when something is received
when there is no right to demand
it and it was unduly delivered
through mistake (Art. 2154).
The requisites are:
a. There is no right to receive the
thing delivered; and
b. The thing was delivered through
mistake.
 Janice went to Baguio with her
family without leaving
s o mebo dy to look after her
house in Manila. While in
Baguio, a big fire broke out near
the house of Janice. Through
the effort of Chandler, a
neighbor, the house of Janice
EXAMPLE: w a s saved from being burned.
NEGOTIORUM GESTIO Chandler, however, incurred
expenses.

In this case, Janice h a s the

obligation to reimburse Chandler
for said expenses, although she
did not actually give her
consent to the act of Chandler
in saving her house, on the
principle of quasi-contract.
 Rachel owes Monica Php
1,000.00. If Rachel paid Ross
believing that Ross was
E X A M PLE : authorized to receive
payment for Monica, the
SOLUTIO obligation to return on the
INDEBITI part of Ross arises. If
Rachel paid Ross Php
2,000.00 by mistake, Ross
must return the excess of
Php 1,000.00.
 Civil obligations arising from
criminal offenses shall be
governed by the penal laws,
subject to the provisions of
article 2177, and of the
A RT I C L E 1 1 6 1 pertinent provisions of Chapter
2, Preliminary Title, on Human
Relations, and of Title XVIII of
this Book, regulating
damages.
It is an act or omission punishable
by law. Felonies are committed
not only by means of deceit (dolo)
but also by means of fault (culpa).
FELONY OR
Violation of the Revised Penal Code is CRIME
called a felony.
Violation of any other penal stature is
called a crime.
 C IV IL L IA B IL ITYA R IS IN G
FR O M C R I M E S OR
DELICTS
1. The commission of a crime causes not only moral evil
but also material damages. From this principle, the
rule has been established that every person criminally
liable for an act or omission is also civilly liable for
damages. (Art. 100, Revised Penal Code)
2. In crimes, which causes no material damage, there is
no civil liability to be enforced. But a person not
criminally responsible m a y still be liable civilly, e.g.
failure to pay a contractual debt causing damage to
another’s property without malicious or criminal
intent or negligence.
 S C O P E OF CIVIL LIABILITY

R E PA R AT I O N O F I N D E M I N I F I C AT I O N F O R
RESTITUTION THE D A M A G E D CONSEQUENTIAL DAMAGES
CAUSED
The restitution of the It shall include not only
thing itself must be The court shall those caused the
made whenever determine the amount injured party, but also
possible, with of damage, taking those suffered by his
allowance for any into consideration the family, or by a third
deterioration or price of the thing, person by reason of a
diminution of value a s whenever possible, crime.
determined by the and its special
court. sentimental value to
the injured party, and
 Obligations derived from
quasi-delicts shall be
governed by the
A RT I C L E 1 1 6 2
provisions of Chapter 2,
Title XVII of this Book,
and by special laws.
It is that fault or negligence
where a person caused damage
to another in the absence of a
contractual relation between the
parties. In such case, the person at
fault is obliged to pay for QUASI-DELICT
damage done.
This is also known a s tort or culpa
aquiliana.
 1. There must be an act or
omission;
2. There must be fault or
negligence;
3. There must be
R E Q U IS IT E S O F d a m a g e caused;
A QUASI- 4. There must be a direct relation
DELICT 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.
 While playing softball with his
friends, Jack broke the
window glass of Renz, his
neighbor.
The accident would not have
happened had they played a little
farther from the house of Renz.
EXAMPLE In this case, Jack is under
obligation to pay the d a m a g e
caused to Renz by his act
although there is no pre-existing
contractual relation between them
because he is guilty of fault or
negligence.
 PROBLEM

Nikko was driving his car in a highway at a speed above that

required frequently beating the red light. His car however
collided with another car owned by Carl. Nikko was badly injured.

Can Nikko recover d a m a ge s from Carl being the owner of vehicle

which Nikko collided into?
 C R IM E
D IS TIN G U IS H E D
FROM QUASI-
DELICT
CRIME QUASI-DELICT
• Criminal or malicious intent • Negligence only.
• Purpose is punishment
• Purpose is indemnification of the
• It affects public interest offended party.
• There are two liabilities: criminal and civil.
• It concerns private interest.
• It cannot be compromised or settled by
the parties themselves. • There is only civil liability.
• Guilt of the accused must be proven
• It can be compromised a s any
beyond reasonable doubt.
other civil liability.
• Fault or negligence of the
defendant need only be proved
by preponderance of evidence.
REVIEW
WH AT A R E TH E E S S E N T I A L
REQUISITES OF AN
O B L I G AT I O N ?

GIVE A N EXAMPLE.
WH AT A R E TH E S O U R C E S
O F O B L I G AT I O N S ?
WHAT I S A JURIDICAL
NECESSITY?