OBLIGATIONS AND CONTRACTS

Jojo L. Dela Cruz

BOOK IV
TITLE I – OBLIGATIONS

Obligation defined.

Obligation is defined by the following:

a.) As to origin, the term obligation is derived from the Latin word “obligatio” which means a “tying” or “binding.”
b.) As to law, an obligation is a juridical necessity to give, to do or not to do. (Article 1156, Civil Code)

 The rationale why the word “not to give” is not stated in the definition of obligation, because it naturally includes in the
obligations “not to do”

Juridical necessity defined.

Obligation is a juridical necessity because in case of non-compliance can result in juridical or legal sanction. In this case, the
creditor can go to court to ask for a specific performance, the debtor may also be made liable for damages.

Differentiate Civil, Natural, and Moral Obligation

Civil Obligation. It is enforceable in courts of justice. It is based on Positive law. This is the obligation which is defined in Article
1156 of the Civil Code.

Natural Law. It cannot be enforced by court action, but which is binding on the party who makes it according to the natural law.
Thus, when an action has prescribed in accordance with the statute of limitations, a natural obligation still subsists, although the civil
obligation is extinguished. In case of voluntary fulfillment by the debtor, he may not recover what has been delivered or rendered by
reason thereof.

Moral Obligation. It is merely demandable in conscience, conscience or morality, or the law of the church.

[NOTE: If a Catholic promises to hear mass for 10 consecutive Sundays in order to receive P1 million this obligation becomes a civil
one.]

 In the definition of what an obligation is, the word juridical is very important because it distinguishes a civil obligation from a
natural obligation, and from a moral obligation.

Elements of Obligations
1. Efficient cause (the vinculum or juridical tie) — binds the parties to the obligation, and which may arise from either bilateral
or unilateral acts of persons. The reason why the obligation exists. The tie in an obligation can easily be determined by
knowing the source of the obligation.

2. Active subject (called creditor or obligee) or the person who is entitled to demand the fulfillment of the obligation; he who
has a right.

3. Passive subject (called debtor or obligor) or the person who is compelled to comply; he who has a duty; bound to perform.
4. The fact, prestation or service which constitutes the object of the obligation. The conduct required to be observed by the
debtor. It may consist of giving, doing, or not doing.

Why form is not added as an element of obligation?

As a general rule, it cannot be considered as essential. Obligations arising from other sources (law, quasi-contracts, acts or
omissions punished by law, and quasi-delicts) do not require any form at all.

Exception: It is only in obligations arising from certain contracts that it becomes essential.

Form: In writing, public document, or public instrument

E.g. A contract of simple loan or mutuum, the law requires that any agreement with respect to interest shall be expressly stipulated
in writing.
Non-compliance with such formalities would have the effect of rendering the contract or agreement void or inexistent.

Prestation to give: (Contract of sale, Contract of loan)

 Magbibigay, to pay or deliver
Prestation to do: (Contract of labor or service)
 Gagawa, NO concealment. This is an obligation to do (to relay all pertinent information
 Prestation not to do: (Not to perform the conduct prohibited: Teacher NOT to have illicit relationship with his students)
 Dismissing an employee without previous investigation and without justifiable cause.