SUMMARY:

I. Definition of Law
II. Kinds of Law
III. Definition of Obligation
IV. Requisites of an Obligation
V. Sources of Obligation
LAW:
A rule of conduct, just and obligatory,
promulgated by the legitimate authority for
common observance and benefit
Kinds of Law:
1. Natural Law Those which are based on
morality and equity but not enforceable in
courts.
2. Positive Law- Those which are enforceable
in courts.

Law on Obligations and
Contracts:
It is a kind of positive law which deals
with the nature and sources of
obligations as well as the rights and
duties arising from agreements in
contracts.
Obligation:
A juridical necessity to give, to do, or not to do.
Requisites:
1. Passive Subject (debtor/obligor) one
who is compelled to perform the obligation
2. Active Subject (Creditor/obligee) one
who compels the passive subject to perform
the obligation
3. Prestation an undertaking to give, to do
or not to do
4. Legal tie or vinculum the tie that binds
the contracting parties.
Example:
Legal tie based on the sources of
obligation such as:
1. Law --
2. Contract Meeting of minds between
two persons whereby one binds
himself, with respect to the other, to
give something or render service.
Illustration:





Obligation to give
(Taxes)
B.I.R
Passive Subject
Active Subject
Law
Taxpayer
Seller
Obligation to give
(Avon Products) Buyer
Passive Subject
Active Subject
Obligation arising from LAW:
Obligation arising from CONTRACT:
Contract
Other sources of obligations
arising from Law:
Acts/omissions punishable by law
refers to the civil aspect on any
criminal liability.
Examples:
1. Moral/Exemplary damages
2. Restitution
3. Fine
Other sources of obligations
arising from Law:
Quasi-contract voluntary and unilateral
act based on the principle that no one shall
unjustly enrich himself at the expense of
another.
Examples:
1. Solution indebiti- payment by mistake.
2. Negotiorum gestio when one assumes
the management of an abandoned
business.
Other sources of obligations
arising from Law:
Quasi-delict- it is the fault or
negligence, committed by one person
to another, which renders the former
liable for damages, there being no
pre-existing contractual relation
between them.