TITLE 1: OBLIGATIONS
Positive Law
Article 1156
“an obligation is a juridical necessity to give, to do or
not to do”
Obligation
- derived from Latin word obligatio (tying of
binding)
- tie or bond recognized by the law by virtue
- one is bound in favor of the another to render
something
- act or performance which the law will enforce
Civil Code definition of Obligation
- stresses the duty under the law of the debtor or
obligor (owes money)
- juridical necessity
Juridical Necessity
- in case of noncompliance, the courts of justice
may be called upon by the aggrieved party to
enforce its fulfillment
- debtor or obligor may also be made liable for
damage (sum of money given as a
compensation for the injury suffered by
creditor) for the violation of his rights
- debtor must comply with his obligation whether
he likes it or not
- his failure will be visited with some harmful or
undesirable consequences
obligations are not made enforceable
 people can disregard them with
impunity
obligations cannot be enforced
 they are not recognized by law as
binding
Nature of Obligations under Civil Code
 Civil Obligations
- obligations which give to the creditor or
oblige a right under the law to enforce
their performance in courts of justice
- based on positive law and gives rights of
action to compel their performance
- something that gives the nagpa-utang ug
right na mag-file ug case if dle sila
mabayaran
- can be enforced sa court bc nay right
ang oblige to take action to compel
performance
 Natural Obligations
- Not approved by positive law but
according sa equity and natural law, dle
na maka give ug right para ipatupad ang
pagsasagawa, but after volunteering na
mag pay, okay lang
- Conscience – based
- Ex: After 4 years, madisregard na ang
case, the debtor has a choice to either
continue paying, because of the natural
law
- Equity, morality and natural justice
Essential Requisites of an Obligation
 Passive Subject (debtor or obligor)
- Person who is bound to the fulfillment of
the obligation
- Has duty and owes money
 Active Subject (creditor or obligee)
- Person who is entitled to demand the
fulfillment of the obligation
- Has a right bc giutangan sya
 Object or Prestation (subject matter of
obligation)
- Conduct required to be observed by the
debtor
- Consists of giving, doing, or not doing
- w/o prestation, there is nothing to perform
 Juridical or Legal Tie (efficient cause)
- Binds or connects the parties to the
obligation
- Can easily be determined by knowing the
source of the obligation
O . B /P . S
P . S → A . S=
L. T
Form of Obligation
- Manner in which an obligation is manifested or
incurred
- May be oral, writing, mix or both
- Law does not require any form of obligations
arising from contracts for their validity/binding
force (Art. 1356)
- Obligations arising from other sources, do not
have any effect at all (Art. 1157)
Right and Wrong Distinguished
 Right
- The power which a person has under the
law, to demand from another any
prestation
 Wrong (cause of action)
- Legal: Is an act or omission of one party
in violation of the legal right or rights of
another
- Law: Injury is also used to refer to the
wrongful violation of the legal right or
another
- Obligation on the part of a person cannot
exist without a corresponding right in
favor of another
- Only arises at the moment a right has been
transgressed or violated
- Essential elements of a legal wrong or
injury:
a) A legal right in favor of a person
(creditor / oblige / plaintiff)
b) Correlative legal obligation on the
part of another (debtor / obligor /
1
 defendant); to respect or not to
violate said right
c) An act of omission by the latter in
violation of said right with
resulting injury or damage
Kinds of Obligation according to the Subject Matter
 Real Obligation (obligation to give)
- Subject matter is a thing which the obligor
must deliver to the oblige
- Ex. X (seller) binds himself to deliver a
piano to Y (buyer)
 Personal Obligation (obligation to do or not to
do)
- Subject matter is an act to be done or not
to be done
a) Positive Personal Obligations
- Obligation to do or render
service (Art. 1167)
- Ex. X binds himself to repair
the piano of Y
b) Negative Personal Obligations
- Obligation not to do (Art.
1168)
- Ex. X obliges himself not to
build a fence on a certain
portion of his Y’s lot bc he
has no right
Article 1157
“Obligations arise from:
1. Law;
2. Contracts;
3. Quasi – contracts;
4. Acts or omissions punished by law; and
5. Quasi – delicts”
Sources of Obligations
1) Law (Art. 1158)
- Imposed by law itself
- Ex. Obligation to pay taxes
2) Contracts (Art. 1306)
- Arise from the stipulation of the parties
- Arises from licit acts
- Ex. The obligation to repay a loan or
indebtness by virtue of an agreement
3) Quasi Contracts (Art. 2142)
- 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
the other
- Arises from licit acts
- Ex. Duty to refund an “overcharge of
money in solution to indebti (undue
payment)
4) Acts or omissions punished by law (Art. 1161)
- Arise from civil liablity which is the
consequence of a criminal offense
- Punishable or not (depende if muamin)
- Ex. Duty to return stolen phone
5) Quasi – delicts (Art. 2176)
- Arise from damage caused to another
through an act or omission
- There is fault or negligence
- No contractual relation exists between
the parties
- Not punishable (bc of the stuff agreed
nila sa contract)
- Ex. Duty to repair damage due to
negligence
Real sources of Obligation: law and contracts
Imposed by the law: Quasi – contracts, delicts and
quasi – delicts
Article 1158
“Obligations derived from the 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”
Act is the Source of the Obligation and not the Law
 The law acknowledges the existence of an
obligation generated by an act
 Constitutes a contract, quasi – contract, delict or
quasi – delict
 Only purpose is to regulate the obligation which
did not arise from the law
 Ex. Obligation of parents to support their minor
Obligation to pay taxes
Source of the Obligation is the Law itself
 Law creates the obligation
Special Laws refers to all other laws not contained in
the Civil Code.
Article 1159
“Obligations arising from contracts have the force of
law between the contracting parties and should be
complied with in good faith”
Contractual Obligations
- Obligations arising from contracts or voluntary
agreements
- Presumes that the contracts entered into are
valid and enforceable
Contract (Art. 1305)
- Meeting of minds between two persons whereby
one binds himself, with respect to the other, to
give something or to render some service
1) Binding Force
- Obligations arising from contracts
- Contracts is not superior to the law
- As a source of enforceable
obligation, contract must be valid
2
 and it cannot be valid if it is against
the law
2) Requirement of a Valid Contract (Art.
1306)
- Contract is valid if it does not
oppose the law, morals, good
customs, public order and public
policy
- Unenforceable Contract (Art.
1317-1403)
 No obligations will arise
 Contract is valid but cannot
be enforced
3) Breach of Contract
- Contract is breached or violated by
a party in whole or in part
- Takes place when a party fails or
refuses to comply
Compliance in Good Faith
- Compliance or performance in accordance with
the stipulations or terms of the contract or
agreement
- Sincerity and honestly must be observed to
prevent one party from taking unfair advantage
of the other
Noncompliance by a Party
- Would constitute unjust enrichment on his part
Article 1160
“Obligations derived from quasi – contracts shall be
subject to the provisions of Chapter 1, Title XVII of this
Book”
Quasi – Contract
- Arising from contracts implied in law
- Juridical relation resulting from lawful,
voluntary and unilateral acts by virtue of which
the parties become bound to each other
- Not properly a contract
- There is no consent but the same is supplied by
fiction of law
- The law considers the parties as having entered
into a contract, and to prevent injustice or unjust
enrichment of a person at the expense of the
other
Kinds of Quasi – Contract
1) Negotiorum Gestio (Art. 2144)
- Unauthorized management
- Arises whenever a person voluntary takes
charge of the agency or management of
another’s abandoned business or property
without the latter’s authority
2) Solutio Indebiti (Art. 2154)
- Payment to one of what is not due to him
- Arises when a person unduly delivers a
thing through mistake to another who has
no right to demand it
- Requisites:
1) There is no right to receive the
thing delivered
2) Thing was delivered through
mistake
Article 1661
“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 Title, on Human Relations, and
of Title XVIII of this Book, regulating damages.”
Civil Liability Arising from Crimes or Delicts (Art.
1157)
- Deals with civil liability for damages arising
from crimes or delicts
- Commission of a crime causes not only moral
evil but also material damage
- Rule has been established that every person
criminally liable for an act or omission is also
civilly liable for damages
- In crimes, causes no material damage but may
still be liable civilly
Scope of Civil Liability
- Refers to civil obligations arising from crimes
- Under the law “every person is criminally liable
for a felony is also civilly liable”
- Civil Liability arising out of the commission of
crime:
1) Restitution
2) Reparation for the damage caused
3) Indemnification for consequential
damages
- Ex. Burke is found guilty by the court of theft
of colored television belonging to Yang. Aside
from sentencing him to imprisonment, the court
also orders Burke to return the colored television
(restitution), or if he has disposed of the same, to
pay its value (reparation) and other damages
(indemnification) suffering by Yang.
Article 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 – Delicts
- Act of omission by a person which causes
damage to another in his person, property or
rights giving rise to an obligation to pay for the
damage done
- No pre-existing contractual relation between the
parties
Requisites of Quasi – Delict
1) Must be an act of omission
2) Must be fault or negligence
3) Must be damage caused
3
 4) Must be a direct relation or connection of cause
and effect between the act or omission and the
damage
5) No pre-existing contractual relation between
parties

Crime Distinguished from Quasi – Delict

 Crime
 There is criminal or malicious intent or
criminal negligence
 Purpose is punishment
 Affects public interest
 Two liabilities: criminal and civil
 Criminal liability cannot be compromised
or settled by the parties themselves
 Guilt of the accused must be proven
beyond reasonable doubt

 Quasi – Delict
 Negligence is only present
 Indemnification of the offended party
 Concerns private interest
 There is only civil liability
 Quasi – Delict liability can be
compromised as any other civil liability
 Fault or negligence of the defendant need
only be proved by preponderance
(superior or greater weight) of evidence