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OBLIGATIONS AND CONTRACTS

REVIEWER

TITLE I OBLIGATIONS
CHAPTER 1
GENERAL PROVISIONS
1156. An obligation is a juridical necessity to give, to do, or not to do.
JURIDICAL NECESSITY juridical tie; connotes that in case of noncompliance, there will be legal sanctions.

An obligation is nothing more than the duty of a person (obligor) to satisfy a specific demandable claim of another person
(obligee) which, if breached, is enforceable in court.
A contract necessarily gives rise to an obligation but an obligation does not always need to have a contract.

KINDS OF OBLIGATION
A. From the viewpoint of sanction -

(a) CIVIL OBLIGATION that defined in Article 1156; an obligation, if not fulfilled when it becomes due and
demandable, may be enforced in court through action; based on law; the sanction is judicial due process

(b) NATURAL OBLIGATION defined in Article 1423; a special kind of obligation which cannot be enforced in court
but which authorizes the retention of the voluntary payment or performance made by the debtor; based on equity
and natural law. (i.e. when there is prescription of duty to pay, still, the obligor paid his dues to the obligee the
obligor cannot recover his payment even there is prescription) the sanction is the law, but only conscience had
originally motivated the payment.
(c) MORAL OBLIGATION the sanction 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 P1,000, this obligation becomes a civil
one.)
B. From the viewpoint of subject matter (a) REAL OBLIGATION the obligation to give
(b) PERSONAL OBLIGATION the obligation to do or not to do (e.g. the duty to paint a house, or to refrain from
committing a nuisance)
C. From the affirmativeness and negativeness of the obligation (a) POSITIVE OR AFFIRMATIVE OBLIGATION the obligation to give or to do
(b) NEGATIVE OBLIGATION the obligation not to do (which naturally inludes not to give)
D. From the viewpoint of persons obliged - sanction (a) UNILATERAL where only one of the parties is bound (e.g. Plato owes Socrates P1,000. Plato must pay
Socrates.)
(b) BILATERAL where both parties are bound (e.g. In a contract of sale, the buyer is obliged to deliver)
- may be:
(b.1) reciprocal
(b.2) non-reciprocal where performance by one is non-dependent upon performance by the other
ELEMENTS OF OBLIGATION
a)
ACTIVE SUBJECT (Creditor / Obligee) the person who is demanding the performance of the obligation;
b)
PASSIVE SUBJECT (Debtor / Obligor) the one bound to perform the prestation or to fulfill the obligation or duty;
c)
PRESTATION (to give, to do, or not to do) object; subject matter of the obligation; conduct required to be observed by the
debtor;
d)
EFFICIENT CAUSE the JURIDICAL TIE which binds the parties to the obligation; source of the obligation.
PRESTATION (Object)
1. TO GIVE delivery of a thing to the creditor (in sale, deposit, pledge, donation);
2. TO DO covers all kinds of works or services (contract for professional services);
3. NOT TO DO consists of refraining from doing some acts (in following rules and regulations).
Requisites of Prestation / Object:
1) licit (if illicit, it is void)
2) possible (if impossible, it is void)

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OBLIGATIONS AND CONTRACTS


REVIEWER

3)
4)

determinate or determinable (or else, void)


pecuniary value

INJURY wrongful act or omission which causes loss or harm to another


DAMAGE result of injury (loss, hurt, harm)

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
anothers abandoned business or property without the owners 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

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