1157.

Obligation arises from – (1) law; (2) contracts; (3) quasi-contracts; (4) acts or
omissions punished by law; (5) quasi-delicts.

(1) LAW (Obligation ex lege) – imposed by law itself; must be expressly or impliedly set
forth and cannot be presumed
- [See Article 1158]

(2) CONTRACTS (Obligation ex contractu) – arise from stipulations of the parties: meeting
of the minds / formal agreement
- must be complied with in good faith because it is the “law” between parties; neither party
may unilaterally evade his obligation in the contract, unless:
a) contract authorizes it
b) other party assents

Note:
Parties may freely enter into any stipulations, provided they are not contrary to law, morals,
good customs, public order or public policy
- [See Article 1159]

(3) QUASI-CONTRACTS (Obligation ex quasi-contractu) – arise from lawful, voluntary and

unilateral acts and which are enforceable to the end that no one shall be unjustly enriched
or benefited at the expense of another
- 2 kinds:
a. Negotiorum gestio - unauthorized management; This takes place when a person
voluntarily takes charge of another’s abandoned business or property without the
owner’s authority
b. Solutio indebiti - undue payment; This takes place when something is received
when there is no right to demand it, and it was unduly delivered thru mistake
- [See Article 1160]

(4) DELICTS (Obligation ex maleficio or ex delicto) – arise from civil liability which is the
consequence of a criminal offense
- Governing rules:
1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code
[Art 100, RPC – Every person criminally liable for a felony is also civilly liable]
2. Chapter 2, Preliminary title, on Human Relations ( Civil Code )
3. Title 18 of Book IV of the Civil Code – on damages
- [See Article 1161]

(5) QUASI-DELICTS / TORTS (Obligation ex quasi-delicto or ex quasi-maleficio) – arise from

damage caused to another through an act or omission, there being no fault or negligence,
but no contractual relation exists between the parties
- [See Article 1162]

1158. Obligations from law are not presumed. Only those (1) expressly determined in this
code or (2) 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
code.

 Unless such obligations are EXPRESSLY provided by law, they are not demandable
and enforceable, and cannot be presumed to exist.
 The Civil Code can be applicable suppletorily to obligations arising from laws other
than the Civil Code itself.
  Special laws – refer to all other laws not contained in the Civil Code.

1159. Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.

CONTRACT – meeting of minds between two persons whereby one binds himself, with
respect to the other, to give, to do something or to render some service; governed primarily
by the agreement of the contracting parties.

VALID CONTRACT – it should not be against the law, contrary to morals, good customs,
public order, and public policy.

 In the eyes of law, a void contract does not exist and no obligation will arise from it.

OBLIGATIONS ARISING FROM CONTRACTS – primarily governed by the stipulations,

clauses, terms and conditions of their agreements.

 If a contract’s prestation is unconscionable (unfair) or unreasonable, even if it does

not violate morals, law, etc., it may not be enforced totally.

 Interpretation of contract involves a question of law.

COMPLIANCE IN GOOD FAITH – compliance or performance in accordance with the

stipulations or terms of the contract or agreement.

FALSIFICATION OF A VALID CONTRACT – only the unauthorized insertions will be

disregarded; the original terms and stipulations should be considered valid and subsisting
for the partied to fulfill.

1160. Obligations derived from quasi-contracts shall be subject to the provisions of chapter
1, title 17 of this book.

QUASI-CONTRACT – juridical relation resulting from lawful, voluntary and unilateral acts by
virtue of which, both parties become bound to each other, to the end that no one will be
unjustly enriched or benefited at the expense of the other. (See Article 2142)

(1) NEGOTIORUM GESTIO – juridical relation which takes place when somebody
voluntarily manages the property affairs of another without the knowledge or
consent of the latter; owner shall reimburse the gestor for necessary and
useful expenses incurred by the latter for the performance of his function as
gestor.
(2) SOLUTIO INDEBITI – something is received when there is no right to demand
it and it was unduly delivered through mistake; obligation to return the thing
arises on the part of the recipient. (e.g. If I let a storekeeper change my P500
bill and by error he gives me P560, I have the duty to return the extra P60)

1161. Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provisions of Article 2177, and of the pertinent provisions of Chapter 2,
Preliminary in Human Relations, and of Title 18 of this book, regulating damages.

Governing rules:
1. Pertinent provisions of the RPC and other penal laws subject to Art 2177 Civil Code
[Art 100, RPC – Every person criminally liable for a felony is also civilly liable]
 2. Chapter 2, Preliminary title, on Human Relations ( Civil Code )
3. Title 18 of Book IV of the Civil Code – on damages

 Every person criminally liable for a felony is also criminally liable (art. 100, RPC)

CRIMINAL LIABILITY INCLUDES:

(a) RESTITUTION – restoration of property previously taken away; the thing itself
shall be restored, even though it be found in the possession of a third person
who has acquired it by lawful means, saving to the latter his action against
the proper person who may be liable to him.
(b) REPARATION OF THE DAMAGE CAUSED – court determines the amount of
damage: price of a thing, sentimental value, etc.
(c) INDEMNIFICATION FOR CONSEQUENTIAL DAMAGES – includes damages
suffered by the family of the injured party or by a third person by reason of
the crime.

Effect of acquittal in criminal case:

a. when acquittal is due to reasonable doubt – no civil liability
b. when acquittal is due to exempting circumstances – there is civil liability
c. when there is preponderance of evidence – there is civil liability

1162. Obligations derived from quasi-delicts shall be governed by the provisions of chapter
2, title 17 of this book, and by special laws.

QUASI-DELICT (culpa aquiliana) – an act or omission by a person which causes damage to

another 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 parties. (See Article
2176)

REQUISITES:
a. omission
b. negligence
c. damage caused to the plaintiff
d. direct relation of omission, being the cause, and the damage, being the effect
e. no pre-existing contractual relations between parties

Fault or Negligence – consists in the omission of that diligence which is required by the
nature of the obligation and corresponds with the circumstances of the person, time, and of
the place.

BASIS DELICTS QUASI-DELICTS

1. INTENT Criminal / malicious Negligence
2. INTEREST Affects PUBLIC interest Affects PRIVATE interest
3. LIABILITY Criminal and civil liabilities Civil liability
4. PURPOSE Purpose – punishment Indemnification
5.COMPROMISE Cannot be compromised Can be compromised
6. GUILT Proved beyond reasonable doubt Preponderance of
evidence

CHAPTER 2
NATURE AND EFFECT OF OBLIGATIONS

1163. Every person obliged to give something is also obliged to take care of it with the
proper diligence of a good father of a family, unless the law or the stipulation of the parties
requires another standard of care.

 Speaks of an obligation to care of a DETERMINATE thing (that is one which is

specific; a thing identified by its individuality) which an obligor is supposed to deliver
to another.
 Reason: the obligor cannot take care of the whole class/genus

DUTIES OF DEBTOR:

 Preserve or take care of the things due.

 DILIGENCE OF A GOOD FATHER – a good father does not abandon his family, he
is always ready to provide and protect his family; ordinary care which an average
and reasonably prudent man would do.
- Defined in the negative in Article 1173
 ANOTHER STANDARD OF CARE – extraordinary diligence provided in the
stipulation of parties.
 FACTORS TO BE CONSIDERED – diligence depends on the nature of obligation
and corresponds with the circumstances of the person, time, and place.

** Debtor is not liable if his failure to deliver the thing is due to fortuitous events or force
majeure… without negligence or fault in his part.

 Deliver the fruits of a thing

 Deliver the accessions/accessories
 Deliver the thing itself
 Answer for damages in case of non-fulfillment or breach

1164. The creditor has a right to the fruits of the thing from the time the obligation to
deliver it arises. However, he shall acquire no real right over it until the same has been
delivered to him.

REAL RIGHT (jus in re) – right pertaining to person over a specific thing, without a passive
subject individually determined against whom such right may be personally enforced.
 a right enforceable against the whole world

PERSONAL RIGHT (jus ad rem) – a right pertaining to a person to demand from another, as
a definite passive subject, the fulfillment of a prestation to give, to do or not to do.
 a right enforceable only against a definite person or group of persons.

 Before the delivery, the creditor, in obligations to give, has merely a personal right
against the debtor – a right to ask for delivery of the thing and the fruits thereof.
 Once the thing and the fruits are delivered, then he acquires a real right over them.
 Ownership is transferred by delivery which could be either actual or constructive.
(Art. 1477)
 The remedy of the buyer when there is no delivery despite demand is to file a
complaint for “SPECIFIC PERFORMANCE AND DELIVERY” because he is not yet the
owner of the property before the delivery.
� ACTUAL DELIVERY – actual delivery of a thing from the hand of the grantor to the hand
of the grantee (presonally), or manifested by certain possessory acts executed by the
grantee with the consent of the grantor (realty).

FRUITS:
1. NATURAL – spontaneous products of the soil, the young and other products of
animals;
INDUSTRIAL – produced by lands o