Right is the power which a person has under the law, to demand from another any prestation.

Wrong (cause of action) is an act or omission of one party in violation of the legal right (s) of another. Also called as INJURY.

Kinds of Obligations (as to subject matter)

Real Obligation- is that in which the subject matter is

a thing which the obligor must deliver to the obligee. - obligation to give. Example: Jiji promised to bake (and give) a bread for Mon. Personal Obligation- is that in which the subject matter is an act to be done or not to be done > Positive personal obligation- obligation to do or to render service. example: Vicky agreed to assist Mon in the latters domestic travel.

> Negative Personal Obligation- obligation not to do (includes obligations not to give.
Example: Mon agreed not to stalk anymore Vicky in consideration of 1 peso as settlement amount.

Art. 1157
Obligations arise from Law, Contracts, Quasi- contracts, Acts or omissions punished by law, and Quasi- delicts.
Sources of Obligations: 1. Law- when they are imposed by law itself. ex.: obligation to pay taxes 2. Contracts- when they arise from the stipulation of the parties. ex.: the obligation to render service by reason of an agreement.

 3. Quasi- contracts- when they 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 another. ex.: the obligation to return money paid by mistake or which is not due. duty to refund an over change of money... 4. Crime or acts or omissions punished by law.- when they arise from civil liability which is the consequence of a criminal offense. ex.: the duty of the convicted rapist to indemnify the victim.

5. Quasi- delicts or torts- when they arise from damage caused to another through an act or omission, there being fault or negligence, but no contractual relation exists between the parties.

ex.: -the obligation of the owner of the car to pay for the damages it has caused.... -the obligation of the restaurant owner to pay for damages caused by the food poisoning of its customers. -the obligation of the travel ageny to pay for damages the injured tourists who were injured in its tourist bus.

 As to sources of obligations: technically there are only

two sources; law and contacts, because obligations arising from quasi-contracts, delicts, and quasi-delicts are really imposed by law.

Art. 1158
Legal obligations / obligations arising from law.

must be clearly set forth in law to be demandable...

Art. 1159
Obligations arising from contracts have the force of the law between the contacting parties and should be complied with in good faith.
Contractual Obligations or Obligations arising from contracts or voluntary agreements presupposes that the contracts entered into are valid and enforceable.

 Contract= is a meeting of minds between two persons

whereby one binds himself, with respect to the other, to give something or to render some service (Art. 1305).

Binding Force- obligations arising from contracts have the force of law between the contracting parties, that is they have same binding effect of obligations imposed by laws.
Requirements of a valid contract- is valid if it is not contrary to law, morals, good customs, public order, and public policy.( ART. 1306) see also Art. 1318.

Requirements of a valid contract:

Contract must not be contrary to law.

- law is superior to a contract. ex.: an employment contract which states that an employer will not pay for the SSS share of the employee.
Contract must not be contrary to morals.

ex.: A contract where Ms. T will be hired as worker by Mr. R only after she has run naked inside the latters office.

 Contract must not be contrary to good customs

- customs have the force of law when recognized and enforced by law. ex.: - A entered into a contract whereby B binds herself to slap her mother......
Contract must not be contrary to public order

(public safety). ex.: Included in the contract between the owner of a tourist bus and its passengers that failure to pay the agreed fare would result to the passenger having to ride only at the top of the bus....

 Contract must not be contrary to public policy

- in consideration of the common good. - a contract which has a tendency to be injurious to the public or is against the public good is contrary to public policy. ex.: Phil raped Angel. They later agreed in consideration of 1,ooo,000 pesos that Angel will not file a case anymore against Phil. * If allowed would result to a manifest perversion of justice.

Compliance in Good Faith -means compliance or performance in accordance with the stipulations or terms of the contract or agreement. Sincerity and honesty must be observed to prevent one party from taking unfair advantage over the other. - That which is agreed upon in the contract is the law between the contracting parties and must be complied with in good faith. - means we must interpret not by the letter that killeth but by the spirit that giveth life.

Art. 1160
Obligations arising from quasi- contracts or contracts

implied in law. Quasi- contract= that juridical relation resulting from lawful, voluntary, and unilateral acts by virtue of which the parties become bound to each other to the end that no one will be unjustly enriched or benefited at the expense of another. - not properly a contract at all...supplied(consent) by fiction of law...

 the law considers the parties as having entered into a

contract, although they have not actually did so, and irrespective of their intention, to prevent injustice. Kinds of Quasi- contracts: 1. Negotiorum gestio (unauthorized management) - the voluntary management of the property or affairs of another without the knowledge or consent of the latter.
ex.: Gloria and her family went on a cruise, leaving behind their pet CAT. While enjoying the vacation their Cat got ill. Penoy, their neighbor, got pity of the Cat and brought it to a veterenarian encurring expenses in return. In this case Gloria has the obligation to reimburse Penoy for his expenses, although Gloria did not actually gave her consent to Penoys acts...following the principle of quasi- contract.

 This takes place when a person voluntarily takes

charge of anothers abandoned business or property without the owners authority.(Art. 2144, NCC) Reimbursement must be made to the gestor for necessary and useful expenses, as a rule.(See Art. 2150, NCC).

2. Solutio Indebiti - the juridical relation which is created when something is received when there is no right to demand it and it was unduly delivered through mistake. requisites: 1. there is no right to receive the thing delivered. 2. the thing was delivered through mistake. Ex.:- Inday , a housemaid was asked by her Boss to deliver a Bibingka to their neighbor, Ondoy, but Inday did not exactly hear what her Boss said as a result she gave the Bibingka to Onday, their other neighbor. In this case Onday has the obligation to return the Bibingka.

 This takes place when something is received when

there is no right to demand it, and it was unduly delivered thru mistake. The recepient has the duty to return it. (See Art. 2154, NCC), (See also, UST Cooperative Store v. City of Manila, et.al. Dec. 31, 1965)

Art. 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 Title, on Human Relations, and of Title XVIII of this Book, regulating damages

Civil Liability arising from crimes or delicts

- times when the commission of a crime causes not only moral evil but also material damage. - every person criminally liable for an act of omission is also civilly liable( Revised Penal Code) Scope: (civil liability includes) 1. Restitution 2. Reparation for the damage caused 3. Indemnification for consequential damages.

 An accused in a criminal case may be sued CIVILLY

whether or not he is found guilty or is acquitted. But the victim cannot recover damages in both cases (only in one) . Elcano v. Hill 77 SCRA 98.

Art. 1162
Obligations arising from quasi- delicts ( torts or culpa aquiliana)
quasi- delict is 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 the parties.
Requisites: 1. there must be an act or omission (failure to act) 2. there must be fault or negligence 3. there must be damage caused 4. there must be a direct relation of cause and effect between the act or omission and the damage. 5. there is no pre- existing contractual relation between parties.

Negligence (CULPA) - is the failure to observe, for the protection of the interests of another person, that degree of care, precaution, and vigilance which the circumstances justly demand, whereby such other person suffers injury. (see Art. 1173, NCC) On test for Determination of Negligence read Picart v. Smith, 37 Phil. 809)

Requirements before a person can be held liable for Quasi- Delict):

There must be fault or negligence attributable to the person charged; 2. There must be damage or injury; 3. There must be a direct relation of cause and effect between the fault or negligence on the one hand and the damage or injury on the other hand (proximate cause). *proximate cause is that adequate and efficient cause, which in tha natural order of events, necessarily produces the damages or injury complained of.
1.

Crime distinguished from quasidelict.???