juridical

necessity,
for
noncompliance can result in juridical or
legal sanction.

OBLIGATIONS
I

WHAT IS AN OBLIGATION?

Art. 1156 - Obligation is a juridical

necessity to give, to do or not to do.

TO GIVE - consists in the delivery of a

movable or an immovable thing, in
order to create a real right or for the
use of the recipient or for its simple
possession or in order to return to its
owner.

AN

TO DO - all kinds of work or services,

whether mental or physical.

Elements of an Obligation (derived

from the Latin obligare to bind)

NOT TO DO - consists in abstaining

from some act, includes not to give,
both being negative obligations.

II

ELEMENTS
OBLIGATION

ON

(a) an active subject (called the

obligee or creditor) the possessor of
a right; he in whose favor the
obligation is constituted.

There are various basis

classification of obligations.

(b) a passive subject (called the

obligor or debtor) he who has the
duty of giving, doing, or not doing.

(A)
From
the
sanction

(c) the object or prestation (the

subject matter of the obligation).

for

the

Given hereunder are few of them:

viewpoint

1) Civil obligation
obligation)

(or

of

perfect

2) Natural obligation

(d) the efficient cause (the vinculum

or juridical tie) the reason why the
obligation exists.

3) Moral obligation (or imperfect

obligation)

(NOTE: In a few cases, FORM or the

manner in which the obligation is
manifested is also important.)

Accessories: those joined to or

included with the principal for the
latters
completion,
better
use,
perfection or enjoyment

III

KINDS OF PRESTATION
(Bar Question)

A prestation is an obligation; more

specifically, it is the subject matter of
an obligation and may consist of
giving a thing, doing or not doing a
certain act. The law speaks of an
obligation as a juridical necessity to
comply with a prestation. There is a

Accessions:
additions
to
or
improvement upon a thing, either
naturally or artificially
Definitions
a

Civil obligation that defined

in Art. 1156. The sanction is
judicial process. Example: A
promises to pay B his (As) debt
of P1 million.
Natural obligation the duty
not to recover what has

voluntarily been paid although

payment
was
no
longer
required. Example: A owes B P1
million. But the debt has
already
prescribed.
If
A,
knowing that it has prescribed,
nevertheless still pays B, he (A)
cannot later on get back what
he
voluntarily
paid.
The
sanction is the law of course,
but only because conscience
had originally motivated the
payment.
Moral obligation the duty
of a Catholic to hear mass on
Sundays and holy days of
obligation. The sanction here is
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 P1million this
obligation becomes a civil one.]
(B) From the viewpoint of subject
matter
1

real
obligation

the
obligation to give;
a to give a specific thing (set
apart from a class);
b to
give
a
generic
or
indeterminate thing (one of
a class).
personal obligation the
obligation to do or not to do

(Example: the duty to paint a house,

or to refrain from committing a
nuisance)
(c) From the affirmativeness and
negativeness of the obligation
1

positive
or
affirmative
obligation the obligation to
give or to do

negative obligation the

obligation not to do (which
naturally includes not to give)

(d) From the viewpoint of persons

obliged
1

unilateral where only one of

the parties is bound

(NOTE: Every obligation has 2 parties;

If only one of them is bound, we have
a unilateral obligation. Example: A
owes B P1 million. A must pay B.)
2

bilateral where both parties

are bound

(Example: In a contract of sale, the

buyer is obliged to pay, while the
seller is obliged to deliver.)

[NOTE: Bilateral obligations may be:

a
b

IV

Reciprocal
Non-reciprocal
(where
performance by one is nondependent upon performance
by the other).]

CLASSIFICATION
OBLIGATIONS

OF

PRIMARY CLASSIFICATION OF
OLBIGATIONS under the CIVIL
CODE
DEMANDABILITY
1

When: Pure and Conditional

(Art. 1179 1192) time of
enforceability
PURE demandable at once
CONDITIONAL fulfillment or
extinguishment
depends
upon a future and uncertain
event

When: with a Period or Term

(Art. 1193 1198) time of
demandability
PERIOD its fulfillment or
extinguishment
depends
upon a future and certain
event

PLURALITY OF OBJECT
3

What:
Alternative
and
Facultative (Art. 1199 1206)
multiple objects
ALTERNATIVE

multiple
prestations but debtor will
perform one or some but not
all, depending on whose
choice is it
FACULTATIVE

multiple
prestations with a principal
obligation and substitute
prestations,
choice
is
generally given to the debtor

SECONDARY CLASSIFICATION
OBLIGATIONS
1

2
3
4
5

PLURALITY OF SUBJECT
4

Who: Joint and Solidarily (Art.

1207 1222) multiple subjects,
focuses on the tie that bonds
parties
JOINT each can be made to
pay only his share in the
obligation
SOLIDARILY one can be
made to pay for the whole
obligation
subject
to
reimbursement

6
7

PERFORMANCE
5

How: Divisible and Indivisible

(Art. 1223 1225) performance
of the prestation, not to the
thing which is the object
thereof, whether it can be
fulfilled in parts or not

SANCTIONS FOR BREACH

With a penal clause (Art. 1226

1230) accessory undertaking to
assume greater liability in case
of breach

OF

Legal (Art 1158) from law

Conventional (Art 1159) from
contracts
Penal (Art 1161) from the
commission of a crime
As to subject matter, Real (to
give) and Personal (to do or not
to do)
At
to
subject
matter
of
obligation, Determinate and
Generic
Positive (to give, to do) and
Negative (not to give, not to do)
Unilateral only one party is
bound to perform the obligation,
one debtor and one creditor
(e.g., simple and remuneratory
donation, to give support)
Bilateral

synallagmatic
contracs, emptio vendito; two
parties are reciprocally bound
thus debtor and creditor of each
other (e.g., purchase and sales,
ease)
Individual only one subject
Collective several subjects
Accessory depends on the
principal obligation e.g., pledge,
mortgage
Principal main obligation
As to object or prestation:
a Simple

only
one
prestation
b Multiple two or more
prestations
I
Conjunctive
all must be
performed
II
Distributive
one or some

must
be
performed.
Possible capable of being
performed, either physically or
legally.
Impossible
physically or
legally incapable of being done.

SOURCES
OBLIGATIONS

OF

Art. 1157. Obligations arise from:

(1) Law (obligations ex lege) like
the duty to pay taxes and to support
ones family.
(2)
Contracts
(obligations
ex
contractu) like the duty to repay a
loan by virtue of an agreement
(3) Quasi-contracts (obligations ex
quasi-contractu) like the duty to
refund an over change of money
because of the quasi-contract of
solutio indebiti or undue payment.
(4) Acts or omissions punished by
law (obligations ex maleficio or ex
delicto) like the duty to return a
stolen carabao.
(5) Quasi-delicts or Torts (obligation
ex quasi-delicto or ex quasi-maleficio)
like the duty to repair damage due
to negligence.
Obligations without an Agreement
(BAR 2007)
VI

What are obligations without

an agreement"? Give five
examples of situations giving
rise
to
this
type
of
obligations? (10%)

SUGGESTED ANSWER:

"Obligations without an agreement"

are obligations that do not arise from
contract such as those arising from: 1.
delicts; 2. quasi-delicts; 3. solutio
indebiti; 4. negotiorum gestio; and
5.all other obligations arising from law.
ALTERNATIVE ANSWER:
"Obligations without an agreement"
refer to the juridical relation of quasicontract which arise from certain
lawful, voluntary and unilateral acts to
the end that no one shall be unjustly
enriched or benefited at the expense
of another. (Art. 2142, NCC)
First Example of an obligation without
an agreement is a case of negotiorum
gestio, whereby one who voluntarily
takes charge of the agency or
management of the business or
property of another without any power
from the latter, is obliged to continue
the same until the termination of the
affair and its incidents, or to require
the person concerned to substitute
him, if the owner is in a position to do
so (Art. 2144, NCC).
Second example, a case of solutio
indebiti may also give rise to an
obligation without an agreement. This
refers to the obligation to return which
arises when something is received
when there is no right to demand it,
and it was unduly delivered through
mistake (Art. 2154, NCC).
Third example, is when without the
knowledge of the person obliged to
give support, it is given by a stranger,
the latter shall have a right to claim
the same from the former, unless it
appears that he gave it out of piety
and without intention of being repaid
(Art. 2164, NCC).
Fourth example, is when through
accident or other causes a person is

injured or becomes seriously ill, and

he is treated or helped while he is not
in a condition to give consent to a
contract, he shall be liable to pay for
the services of the physician or other
person aiding him, unless the service
has been rendered out of pure
generosity (Art. 2167, NCC).
Fifth instance of an obligation without
an agreement is when the person
obliged to support an orphan or an
insane or other indigent person
unjustly refuses to give support to the
latter, any third person may furnish
support to the needy individual, with
right of reimbursement from the
person obliged to give support. The
provisions of this article apply when
the father or mother of a child under
eighteen years of age unjustly refuses
to support him (Art. 2166, NCC)

VI.

(b) However, if the law or

contract provides for a different
standard of care, said law or
stipulation must prevail. (Art.1163,
Civil Code).
Personal Right
Vested
before
delivery
A
right
enforceable only
against
the
debtor
Right
of
the
creditor
to
demand from the
debtor,
the
fulfillment of a
prestation to give,
to do or not to do

NATURE AND EFFECT OF

OBLIGATIONS

Art. 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.
Duty to Exercise Diligence
-

person, time, and place. (Art. 1173,

Civil Code). This is really diligence of
a good father of a family.

Unless diligence is exercised,

there is a danger that the
property would be lost or
destroyed,
thus
rendering
illusory the obligation. (See 8
Manresa 35-36).

Diligence Needed
(a) That which is required by the
nature
of
the
obligation
and
corresponds with the circumstances of

Real Right
Vested
after
delivery
A
right
enforceable
against
the
world
Right pertaining
to a
person over a
specific
thing,
without
a
passive
subject
individually
determined
against
whom such right
may
be
personally
enforced

KINDS OF DELIVERY
(a) Actual delivery (or tradition)
where
physically,
the
property
changes hands. Example: If A sells B a
fountain pen, the giving by A to B of
the fountain pen is actual tradition.
(b) Constructive delivery that
where the physical transfer is implied.

Obligation to deliver arises when:

a

If there is no term or condition,

then from the perfection of the
contract.

If there is a term or a condition,

then from the moment the term
arrives
or
the
condition
happens. (See 8 Manresa44-45).

SPECIFIC THING
-

A thing is said to be specific or

determinate when it is capable
of particular designation.
Ex. This car, a car with the plate
number WWW 201.

Accion Subrogatoria (Art.

1177) to be subrogated all
the rights and actions of the
debtor save those which are
inherent in his person (NOTE:
this is not a remedy referred to
in the chapter on Novation)
Accion Pauliana (Arts. 1380 1389) action to ask the court
to rescind or impugn all the acts
which the debtor may have
done to defraud the creditors
Accion Directa (Art. 1652 &
1729)

GENERIC THING
-

A
thing
is
generic
or
indeterminate when it refers
only to a class, to a genus, and
cannot be pointed out with
particularity. Ex. A car, a 2012
Honda Civic.

EFFECT OF A FORTUITOUS EVENT

-

The obligation to deliver a

generic
thing
is
NEVER
extinguished by a fortuitous
event.

However it must be:

REMEDIES OF A CREDITOR WHEN
DEBTOR FAILS TO COMPLY WITH
HIS OBLIGATION
Primary Remedies:
a

b
c

Demand
specific
performance (Art. 1165 however specific performance is
not a remedy in personal
obligations; otherwise, this may
amount
to
involuntary
servitude, which as a rule is
prohibited
under
our
Constitution.)
Demand
rescission
or
cancellation (Art. 1191 - but
only in reciprocal obligations)
Demand damages (Art. 1170
- with or without either or (A) or
(B).

Subsidiary Remedies:

1
2
3
4

the breach of obligation must

be independent of the will of the
debtor
event must be unforeseeable or
unavoidable
the event must be so as to
render the obligation impossible
debtor must be free from
participation

*General Rule (specific thing):

-

The obligation to deliver a

specific thing is extinguished
by a fortuitous event.

*Exception to the General Rule

(specific thing):
a

if the obligor delays (This is

really default or mora.)
NOTE: There is no delay if
there is no demand. (Art.
1169)

if the obligor is guilty of BAD

FAITH (for having promised to
deliver the same thing to two or
more persons who do not have
the same interest as when
one is not the agent merely of
the other) Art. 1165 par.3
If there is stipulation that the
party will still be liable even for
a fortuitous event

DELAY IN THE FULFILLMENT OF AN

OBLIGATION (ART. 1169)
VOLUNTARY
Default (Mora),
deceit/fraud
(Dolo),
negligence
(Culpa), or in any
manner that
contravenes the
tenor of the
obligation

INVOLUNTARY
Inability to
comply because
of an unforeseen
event, or if
though foreseen,
is inevitable or
unavoidable

Has liability for

damages

No liability
damages

DIFFERENT
MORA(DELAY)

KINDS

for

OF

1. Mora Solvendi default by the

debtor
2. Mora Accipiendi default by the
creditor
3. Compensatio Morae both
parties are in default; here it is
as if neither is in default
REQUISITES OF DELAY:
1
2
3

Obligation
must
be
due,
demandable and liquidated
Debtor fails to perform his
positive obligation on the date
agreed upon
There must be DEMAND

Demand must be
obligation that is due

for

the

CESSATION OF THE EFFECTS OF

MORA(DELAY)
1. by prescription of the principal
obligation
2. by prescription of the damages
or interest
3. if condoned or renounced

INSTANCES WHEN A THING MAY

BE ORDERED UNDONE:
a

if made poorly (Art. 1167 Here performance by another

and
damages
may
be
demanded)

if the obligation is a negative

one (Art. 1168 - provided the
undoing
is
possible.
Performance plus damages may
be demanded).

USURIOUS TRANSACTIONS
Article 1175: Usurious transactions
shall be governed by special laws
This article has been declared
legally ineffective by Resolution no.
224 (Dec. 3, 1982) of the Monetary
Board of the Central Bank and later by
the Central Bank Circular No. 905
which took effect on January 1, 1983
and removed the ceiling on interest
rates for secured and unsecured loans
regardless of maturity. Interest can
now be charged as lender and
borrower may agree upon

FULFILLMENT OF OBLIGATIONS

Art. 1176
*General Rule if the debts produces
interest, receipt of the principal by the
creditor, without reservation to the
interest, shall have the presumption
that said interest has been paid. The
same logic applies to installments.
*Exception
rebuttable
1
2
3

presumptions

It is an
uncertain event
which wields an
influence on a
legal
relationship.
Manresa.

That which
necessarily must
come regardless
of the knowledge
of the parties
when it will
happen (like
death, since this
is sure).

Determines
existence of an
obligation
No
retroactive
effect

Determines
demandability of
an obligation
Retroactive

are

if the law provides otherwise;

if the contract provides
otherwise;
if the obligation is purely
personal.

KINDS OF CONDITIONS
A)
CIVIL

1) suspensive (ex die) the

happening of the condition gives rise
to the obligation.

A PURE
OBLIGATIONS
(Art.
1179)
- one without a condition or a
term (hence, demandable at
once, provided there will be no
absurdity).
Ex. I promise to pay you P1
million. [This is demandable at
once, unless a period was really
intended, as when a loan has
just been contracted]

2) resolutory (in diem) the

happening
of
the
condition
extinguishes the obligation.

B CONDITIONAL OBLIGATIONS
(Art. 1181)
- one where there is a condition
Ex. Ill buy your land for P10
million if you pass the last bar
examinations.
(This
is
a
suspensive condition.)

3) mixed depends partly on the will

of one of the parties and partly on
chance or the will of a third person (if I
pass the bar).

VII.

KINDS
OF
OBLIGATIONS

CONDITION

PERIOD/TERM

B)
1) potestative depends upon the
will of the debtor (Example: Ill sell you
my car if I like.)
2) casual depends on chance or
hazard or the will of a third person (if I
win in the lotto).

C)
1) divisible
performance).

(capable

of

partial

2) indivisible (not capable of partial

performance because of the nature of

the thing, or because of the intention

of the parties).

1) conjunctive if all the conditions

must be performed.

D)

2) alternative if only a few of the

conditions have to be performed.
(Arts. 1199 1206)

1) positive
performed.

an

act

is

2) negative
omitted.

something

to

be

will

be

E)
1) express the condition is stated.
2) implied the condition merely
inferred.
F)
1) possible capable of fulfillment in
nature and in law.
2) impossible not capable of
fulfillment due to nature or due to the
operation of the law or morals or
public policy; or due to a contradiction
in its terms.
G)

C RECIPROCAL
OBLIGATIONS
(Art. 1191)
- depend upon each other for
performance.
Ex. In a sale the buyer must
PAY, and the
seller must DELIVER.