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Provisions
ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do.
`obligation (obligatio in Latin) tying / binding. a tie of law or a juridical bond by virtue of which one is bound in favor of another to render something
and this may consist in giving a thing, doing a certain act, or not doing a certain act.
`Obligation is a juridical necessity because 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.
2 nature of obligations under Civil Code
a. Civil Obligations - give to the creditor or obligee a right of action in courts of justice to enforce their performance
b. 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
although in case of voluntary fulfillment by the debtor, the latter may not recover what has been delivered or rendered by reason thereof
Essential requisites / elements of an obligation
1. Passive subject(debtor or obligor) - the person who is bound to the fulfillment of the obligation; he who has a duty
2. Active subject(creditor or obligee) - person who is entitled to demand the fulfillment of the obligation; he who has a right
3. Object or prestation (subject matter of the obligation) - the conduct required to be observed by the debtor. It may consist in giving, doing, or not
doing. Without the prestation, there is nothing to perform.
4. juridical or legal tie (efficient cause)- that which binds or connects the parties to the obligation.
Form of obligation.
1. general rule, the law does not require any form in obligations arising from contracts for their validity or binding force.
2. Obligations arising from other sources do not have any form at all.
`Obligation - the act or performance which the law will enforce
`Right - the power which a person has under the law, to demand from another any prestation
`Wrong (cause of action) an act or omission of one party in violation of the legal right or rights of another, causing injury
Essential elements of cause of action.
1. legal right in favor of a person
2. correlative legal obligation on the part of another (debtor/defendant) to respect or not to violate said right
3. act or omission in breach or violation of said right by the defendant with consequential injury or damage to the plaintiff for which he may maintain an
action for the recovery of damages
Kinds of obligation according to subject matter.
1. Real obligation (obligation to give) - the subject matter is a thing which the obligor must deliver to the obligee
2. Personal obligation (obligation to do or not to do)- the subject matter is an act to be done or not to be done.
There are two (2) kinds of personal obligation:
(a) Positive personal obligation or obligation to do or to render service
(b) Negative personal obligation or obligation not to do (which naturally includes obligations not to give)
ART. 1157. Obligations arise from: (1) Law; (2) Contracts; (3) Quasi-contracts; (4) Acts or omissions punished by law; and (5) Quasi-
delicts.
Sources classified.
1. Those emanating from law
2. Those emanating from private acts which may be further subdivided into:
(a) those arising from licit acts, in the case of contracts and quasi-contracts; and
(b) those arising from illicit acts, which may be either punishable by law in the case of delicts, or not punishable in the case of quasi-delicts.
! Actually, there are only two (2) sources: law and contracts
ART. 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.
! They are not presumed because they are considered a burden upon the obligor. They are the exception, not the rule. To be demandable, they must be
clearly set forth in the law
! Special laws refer to all other laws not contained in the Civil Code.
ART. 1159. Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith.
`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.
! contract is the law between the contracting parties, the provisions of positive law which regulate such contracts are deemed included and shall limit
and govern the relations between the parties.
! A compromise agreement is immediately executory and not appealable, except for vices of consent or forgery.
! A contract is valid (with cause, consent, object) if it is not contrary to law, morals, good customs, public order, and public policy.
`Compliance in good faith compliance or performance in accordance with the stipulations or terms of the contract or agreement
ART. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of Chapter 1, Title XVII, of this Book.
`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.
! the law considers the parties as having entered into a contract, irrespective of their intention, to prevent injustice.
Kinds of quasi-contracts. (principal kinds)
1. Negotiorum gestio - the voluntary management of the property or affairs of another without the knowledge or consent of the latter.
! This juridical relation does not arise in either of these instances:
(a) When the property or business is not neglected or abandoned, in which case the provisions of the Civil Code regarding unauthorized contracts shall
govern;
(b) If, in fact, the manager has been tacitly authorized by the owner, in which case the rules on agency shall govern
2. Solutio indebiti - 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. REQUISITES:
(a) payment is made when there exists no binding relation between the payor, who has no duty to pay, and the person who received the payment;
(b) the payment is made through mistake11 and not through liberality or some other cause.
ART. 1161. Civil obligations arising from criminal offenses shall be governed by the penal laws,14 subject to the provisions of Article 2177,15 and of the
pertinent provisions of Chapter 2, Preliminary Title on Human Relations,16 and of Title XVIII of this Book, regulating damages.
! the rule has been established that every person criminally liable for a felony is also civilly liable. In crimes, however, which cause no material
damage there is no civil liability to be enforced. But a person not criminally responsible may still be liable civilly.
Scope of civil liability.
(1) Restitution
(2) Reparation for the damage caused
(3) Indemnification for consequential damages.
ART. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of Chapter 2, Title XVII of this Book, and by special laws.
`quasi-delict (culpa aquiliana)- an act or omission by a person (tort feasor) which causes damage to another in his person, property, or rights giving
rise to an obligation to pay for the damage done, there being fault or negligence but there is no pre-existing contractual relation between the parties
! includes not only injuries to persons but also damage to property.
! A contractual obligation can be breached by tort, and when the same act or omission causes the injury, one resulting in culpa contractual and the
other in culpa aquiliana, Article 2194 which imposes solidary responsibility on two or more persons who are liable for a quasi-delict, can well apply.
Requisites of quasi-delict.
(1) There must be an act or omission by the defendant;
(2) There must be fault or negligence of the defendant;
(3) There must be damage caused to the plaintiff;
(4) There must be a direct relation or connection of cause and effect between the act or omission and the damage;
(5) There is no pre-existing contractual relation between the parties.
Crime distinguished from quasi-delict.
(1) In crime or delict, there is criminal or malicious intent or criminal
negligence, while in quasi-delict, there is only negligence
(2) Crime affects public interest, while quasi-delict concerns private interest
(3) In crime, there are generally two liabilities: criminal and civil, while in quasi-delict, there is only civil liability;
(4) In crime or delict, the purpose is punishment, while in quasidelict, indemnification of the offended party;
(5) Criminal liability cannot be compromised or settled by the parties themselves, while the liability for quasi-delict can be compromised as any
other civil liability;
(6) In crime, the guilt of the accused must be proved beyond reasonable doubt, while in quasi-delict, the fault or negligence of the defendant need
only be proved by preponderance of evidence; and
(7) In crime, the liability of the person responsible for the author of the negligent act or omission is subsidiary, while in quasi-delict, it is direct and
primary.
! These two causes of action (ex delicto or ex quasi delicto) may be availed of subject to the caveat that the offended party cannot recover damages
twice for the same act or omission or under both causes.